Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
CALIFORNIA | 94-2792841 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock | TCBK | NASDAQ Global Select |
☐ | Accelerated filer | |||||
☐ | ||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
☐ | ||||||
Emerging growth company |
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59 | |||||
60 | |||||
Exhibits |
Item 1. | Financial Statements (unaudited) |
At September 30, 2018 | At December 31, 2017 | |||||||
Assets: | ||||||||
Cash and due from banks | $ | 109,363 | $ | 105,968 | ||||
Cash at Federal Reserve and other banks | 117,180 | 99,460 | ||||||
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Cash and cash equivalents | 226,543 | 205,428 | ||||||
Investment securities: | ||||||||
Marketable equity securities | 2,846 | 2,938 | ||||||
Available for sale debt securities | 1,055,960 | 727,945 | ||||||
Held to maturity debt securities | 459,897 | 514,844 | ||||||
Restricted equity securities | 17,250 | 16,956 | ||||||
Loans held for sale | 3,824 | 4,616 | ||||||
Loans | 4,027,436 | 3,015,165 | ||||||
Allowance for loan losses | (31,603 | ) | (30,323 | ) | ||||
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Total loans, net | 3,995,833 | 2,984,842 | ||||||
Foreclosed assets, net | 1,832 | 3,226 | ||||||
Premises and equipment, net | 89,290 | 57,742 | ||||||
Cash value of life insurance | 116,596 | 97,783 | ||||||
Accrued interest receivable | 19,592 | 13,772 | ||||||
Goodwill | 220,972 | 64,311 | ||||||
Other intangible assets, net | 30,711 | 5,174 | ||||||
Mortgage servicing rights | 7,122 | 6,687 | ||||||
Other assets | 70,597 | 55,051 | ||||||
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Total assets | $ | 6,318,865 | $ | 4,761,315 | ||||
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Liabilities and Shareholders’ Equity: | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 1,710,505 | $ | 1,368,218 | ||||
Interest-bearing | 3,382,612 | 2,640,913 | ||||||
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Total deposits | 5,093,117 | 4,009,131 | ||||||
Accrued interest payable | 1,729 | 930 | ||||||
Other liabilities | 82,077 | 66,422 | ||||||
Other borrowings | 282,831 | 122,166 | ||||||
Junior subordinated debt | 56,996 | 56,858 | ||||||
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Total liabilities | 5,516,750 | 4,255,507 | ||||||
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Commitments and contingencies (Note 12) | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, no par value: 1,000,000 shares authorized, zero issued and outstanding at September 30, 2018 and December 31, 2017 | — | — | ||||||
Common stock, no par value: 50,000,000 shares authorized; issued and outstanding: | ||||||||
30,417,818 at September 30, 2018 | ||||||||
22,955,963 at December 31, 2017 | 541,519 | 255,836 | ||||||
Retained earnings | 287,555 | 255,200 | ||||||
Accumulated other comprehensive loss, net of tax | (26,959 | ) | (5,228 | ) | ||||
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Total shareholders’ equity | 802,115 | 505,808 | ||||||
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Total liabilities and shareholders’ equity | $ | 6,318,865 | $ | 4,761,315 | ||||
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At June 30, 2019 | At December 31, 2018 | |||||||
Assets: | ||||||||
Cash and due from banks | $ | 106,939 | $ | 119,781 | ||||
Cash at Federal Reserve and other banks | 68,643 | 107,752 | ||||||
Cash and cash equivalents | 175,582 | 227,533 | ||||||
Investment securities: | ||||||||
Marketable equity securities | 2,952 | 2,874 | ||||||
Available for sale debt securities | 1,133,994 | 1,115,036 | ||||||
Held to maturity debt securities | 412,524 | 444,936 | ||||||
Restricted equity securities | 17,250 | 17,250 | ||||||
Loans held for sale | 5,875 | 3,687 | ||||||
Loans | 4,103,687 | 4,022,014 | ||||||
Allowance for loan losses | (32,868 | ) | (32,582 | ) | ||||
Total loans, net | 4,070,819 | 3,989,432 | ||||||
Premises and equipment, net | 88,534 | 89,347 | ||||||
Cash value of life insurance | 116,606 | 117,318 | ||||||
Accrued interest receivable | 20,990 | 19,412 | ||||||
Goodwill | 220,972 | 220,972 | ||||||
Other intangible assets, net | 26,418 | 29,280 | ||||||
Operating leases, right-of-use | 30,030 | — | ||||||
Other assets | 72,626 | 75,364 | ||||||
Total assets | $ | 6,395,172 | $ | 6,352,441 | ||||
Liabilities and Shareholders’ Equity: | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 1,780,339 | $ | 1,760,580 | ||||
Interest-bearing | 3,561,834 | 3,605,886 | ||||||
Total deposits | 5,342,173 | 5,366,466 | ||||||
Accrued interest payable | 2,665 | 1,997 | ||||||
Operating lease liability | 29,434 | — | ||||||
Other liabilities | 74,590 | 83,724 | ||||||
Other borrowings | 13,292 | 15,839 | ||||||
Junior subordinated debt | 57,132 | 57,042 | ||||||
Total liabilities | 5,519,286 | 5,525,068 | ||||||
Commitments and contingencies (Note 8) | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, no par value: 1,000,000 shares authorized, zero issued and outstanding at June 30, 2019 and December 31, 2018 | — | — | ||||||
Common stock, no par value: 50,000,000 shares authorized; 30,502,757 and 30,417,223 issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 542,939 | 541,762 | ||||||
Retained earnings | 335,145 | 303,490 | ||||||
Accumulated other comprehensive loss, net of tax | (2,198 | ) | (17,879 | ) | ||||
Total shareholders’ equity | 875,886 | 827,373 | ||||||
Total liabilities and shareholders’ equity | $ | 6,395,172 | $ | 6,352,441 | ||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest and dividend income: | ||||||||||||||||
Loans, including fees | $ | 53,102 | $ | 37,268 | $ | 130,455 | $ | 108,600 | ||||||||
Investments: | ||||||||||||||||
Taxable securities | 9,189 | 7,011 | 23,949 | 20,617 | ||||||||||||
Tax exempt securities | 1,189 | 1,041 | 3,272 | 3,124 | ||||||||||||
Dividends | 459 | 301 | 1,093 | 1,020 | ||||||||||||
Interest bearing cash at Federal Reserve and other banks | 615 | 292 | 1,384 | 1,080 | ||||||||||||
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Total interest and dividend income | 64,554 | 45,913 | 160,153 | 134,441 | ||||||||||||
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Interest expense: | ||||||||||||||||
Deposits | 2,072 | 1,028 | 4,402 | 2,896 | ||||||||||||
Other borrowings | 1,178 | 149 | 2,106 | 164 | ||||||||||||
Junior subordinated debt | 815 | 652 | 2,301 | 1,870 | ||||||||||||
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Total interest expense | 4,065 | 1,829 | 8,809 | 4,930 | ||||||||||||
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Net interest income | 60,489 | 44,084 | 151,344 | 129,511 | ||||||||||||
Provision for (benefit from) loan losses | 2,651 | 765 | 1,777 | (1,588 | ) | |||||||||||
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Net interest income after provision for (benefit from) loan losses | 57,838 | 43,319 | 149,567 | 131,099 | ||||||||||||
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Noninterest income: | ||||||||||||||||
Service charges and fees | 9,743 | 9,475 | 28,327 | 27,861 | ||||||||||||
Commissions on sale ofnon-deposit investment products | 728 | 672 | 2,414 | 1,984 | ||||||||||||
Increase in cash value of life insurance | 732 | 732 | 1,996 | 2,043 | ||||||||||||
Gain on sale of loans | 539 | 606 | 1,831 | 2,293 | ||||||||||||
Gain on sale of investment securities | 207 | 961 | 207 | 961 | ||||||||||||
Other | 237 | 484 | 1,875 | 2,401 | ||||||||||||
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Total noninterest income | 12,186 | 12,930 | 36,650 | 37,543 | ||||||||||||
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Noninterest expense: | ||||||||||||||||
Salaries and related benefits | 25,823 | 20,933 | 68,928 | 62,320 | ||||||||||||
Other | 21,555 | 16,289 | 54,482 | 46,628 | ||||||||||||
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Total noninterest expense | 47,378 | 37,222 | 123,410 | 108,948 | ||||||||||||
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Income before income taxes | 22,646 | 19,027 | 62,807 | 59,694 | ||||||||||||
Provision for income taxes | 6,476 | 7,130 | 17,698 | 22,129 | ||||||||||||
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Net income | $ | 16,170 | $ | 11,897 | $ | 45,109 | $ | 37,565 | ||||||||
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Earnings per share: | ||||||||||||||||
Basic | $ | 0.54 | $ | 0.52 | $ | 1.78 | $ | 1.64 | ||||||||
Diluted | $ | 0.53 | $ | 0.51 | $ | 1.76 | $ | 1.62 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest and dividend income: | ||||||||||||||||
Loans, including fees | $ | 55,491 | $ | 39,304 | $ | 109,889 | $ | 77,353 | ||||||||
Investments: | ||||||||||||||||
Taxable securities | 10,457 | 7,438 | 21,012 | 14,760 | ||||||||||||
Tax exempt securities | 1,061 | 1,042 | 2,134 | 2,083 | ||||||||||||
Dividends | 305 | 298 | 665 | 634 | ||||||||||||
Interest bearing cash at Federal Reserve and other banks | 866 | 396 | 1,937 | 769 | ||||||||||||
Total interest and dividend income | 68,180 | 48,478 | 135,637 | 95,599 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 2,999 | 1,234 | 5,718 | 2,330 | ||||||||||||
Other borrowings | 37 | 586 | 50 | 928 | ||||||||||||
Junior subordinated debt | 829 | 789 | 1,684 | 1,486 | ||||||||||||
Total interest expense | 3,865 | 2,609 | 7,452 | 4,744 | ||||||||||||
Net interest income | 64,315 | 45,869 | 128,185 | 90,855 | ||||||||||||
Provision for (reversal of) loan losses | 537 | (638 | ) | (1,063 | ) | (874 | ) | |||||||||
Net interest income after provision for (benefit from reversal of) loan losses | 63,778 | 46,507 | 129,248 | 91,729 | ||||||||||||
Noninterest income: | ||||||||||||||||
Service charges and fees | 10,128 | 9,228 | 19,198 | 18,584 | ||||||||||||
Gain on sale of loans | 575 | 666 | 987 | 1,292 | ||||||||||||
Asset management and commission income | 739 | 810 | 1,381 | 1,686 | ||||||||||||
Increase in cash value of life insurance | 746 | 656 | 1,521 | 1,264 | ||||||||||||
Other | 1,390 | 814 | 2,355 | 1,638 | ||||||||||||
Total noninterest income | 13,578 | 12,174 | 25,442 | 24,464 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and related benefits | 26,719 | 21,453 | 51,847 | 43,105 | ||||||||||||
Other | 20,133 | 16,417 | 40,518 | 32,927 | ||||||||||||
Total noninterest expense | 46,852 | 37,870 | 92,365 | 76,032 | ||||||||||||
Income before provision for income taxes | 30,504 | 20,811 | 62,325 | 40,161 | ||||||||||||
Provision for income taxes | 7,443 | 5,782 | 16,538 | 11,222 | ||||||||||||
Net income | $ | 23,061 | $ | 15,029 | $ | 45,787 | $ | 28,939 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.76 | $ | 0.65 | $ | 1.50 | $ | 1.26 | ||||||||
Diluted | $ | 0.75 | $ | 0.65 | $ | 1.49 | $ | 1.24 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 16,170 | $ | 11,897 | $ | 45,109 | $ | 37,565 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Unrealized gains (losses) on available for sale securities arising during the period, after reclassifications | (5,917 | ) | (166 | ) | (20,941 | ) | 3,137 | |||||||||
Change in minimum pension liability, after reclassifications | 81 | 55 | 241 | 164 | ||||||||||||
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Other comprehensive income (loss) | (5,836 | ) | (111 | ) | (20,700 | ) | 3,301 | |||||||||
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Comprehensive income | $ | 10,334 | $ | 11,786 | $ | 24,409 | $ | 40,866 | ||||||||
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Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | 23,061 | $ | 15,029 | $ | 45,787 | $ | 28,939 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Unrealized gains (losses) on available for sale securities arising during the period | 6,729 | (3,998 | ) | 15,681 | (15,024 | ) | ||||||||||
Change in minimum pension liability | — | 80 | — | 160 | ||||||||||||
Other comprehensive income (loss) | 6,729 | (3,918 | ) | 15,681 | (14,864 | ) | ||||||||||
Comprehensive income | $ | 29,790 | $ | 11,111 | $ | 61,468 | $ | 14,075 |
Accumulated | ||||||||||||||||||||
Shares of | Other | |||||||||||||||||||
Common | Common | Retained | Comprehensive | |||||||||||||||||
Stock | Stock | Earnings | Income (loss) | Total | ||||||||||||||||
Balance at December 31, 2016 | 22,867,802 | $ | 252,820 | $ | 232,440 | $ | (7,913 | ) | $ | 477,347 | ||||||||||
Net income | 37,565 | 37,565 | ||||||||||||||||||
Other comprehensive income | 3,301 | 3,301 | ||||||||||||||||||
Stock option vesting | 211 | 211 | ||||||||||||||||||
Service condition RSU vesting | 657 | 657 | ||||||||||||||||||
Market plus service condition RSU vesting | 316 | 316 | ||||||||||||||||||
Stock options exercised | 133,850 | 2,418 | 2,418 | |||||||||||||||||
Service condition RSUs released | 28,397 | — | ||||||||||||||||||
Market plus service condition RSUs released | 18,805 | — | ||||||||||||||||||
Repurchase of common stock | (107,390 | ) | (1,191 | ) | (2,663 | ) | (3,854 | ) | ||||||||||||
Dividends paid ($ 0.49 per share) | (11,228 | ) | (11,228 | ) | ||||||||||||||||
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Balance at September 30, 2017 | 22,941,464 | $ | 255,231 | $ | 256,114 | $ | (4,612 | ) | $ | 506,733 | ||||||||||
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Balance at December 31, 2017 | 22,955,963 | $ | 255,836 | $ | 255,200 | $ | (5,228 | ) | $ | 505,808 | ||||||||||
Net income | 45,109 | 45,109 | ||||||||||||||||||
Adoption ASU2016-01 | (62 | ) | 62 | — | ||||||||||||||||
Adoption ASU2018-02 | 1,093 | (1,093 | ) | — | ||||||||||||||||
Other comprehensive loss | (20,700 | ) | (20,700 | ) | ||||||||||||||||
Stock option vesting | 75 | 75 | ||||||||||||||||||
Service condition RSU vesting | 745 | 745 | ||||||||||||||||||
Market plus service condition RSU vesting | 274 | 274 | ||||||||||||||||||
Service condition RSUs released | 32,516 | — | ||||||||||||||||||
Market plus service condition RSUs released | 25,512 | — | ||||||||||||||||||
Stock options exercised | 27,400 | 475 | 475 | |||||||||||||||||
Issuance of common stock | 7,405,277 | 284,437 | 284,437 | |||||||||||||||||
Repurchase of common stock | (28,850 | ) | (323 | ) | (801 | ) | (1,124 | ) | ||||||||||||
Dividends paid ($ 0.51 per share) | (12,984 | ) | (12,984 | ) | ||||||||||||||||
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Balance at September 30, 2018 | 30,417,818 | $ | 541,519 | $ | 287,555 | $ | (26,959 | ) | $ | 802,115 | ||||||||||
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Shares of Common Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
Balance at March 31, 2019 | 30,432,419 | $ | 542,340 | $ | 319,865 | $ | (8,927 | ) | $ | 853,278 | ||||||||||
Net income | 23,061 | 23,061 | ||||||||||||||||||
Other comprehensive income | 6,729 | 6,729 | ||||||||||||||||||
Stock option vesting | — | |||||||||||||||||||
Stock options exercised | 116,000 | 1,853 | 1,853 | |||||||||||||||||
RSU vesting | 289 | 289 | ||||||||||||||||||
PSU vesting | 129 | 129 | ||||||||||||||||||
RSUs released | 25,856 | — | ||||||||||||||||||
PSUs released | 22,237 | — | ||||||||||||||||||
Repurchase of common stock | (93,755 | ) | (1,672 | ) | (1,988 | ) | (3,660 | ) | ||||||||||||
Dividends paid ($ 0.19 per share) | (5,793 | ) | (5,793 | ) | ||||||||||||||||
Three months ending June 30, 2019 | 30,502,757 | $ | 542,939 | $ | 335,145 | $ | (2,198 | ) | $ | 875,886 | ||||||||||
Balance at January 1, 2019 | 30,417,223 | $ | 541,762 | $ | 303,490 | $ | (17,879 | ) | $ | 827,373 | ||||||||||
Net income | 45,787 | 45,787 | ||||||||||||||||||
Other comprehensive income | 15,681 | 15,681 | ||||||||||||||||||
Stock option vesting | — | |||||||||||||||||||
Stock options exercised | 157,000 | 2,500 | 2,500 | |||||||||||||||||
RSU vesting | 567 | 567 | ||||||||||||||||||
PSU vesting | 248 | 248 | ||||||||||||||||||
RSUs released | 26,211 | — | ||||||||||||||||||
PSUs released | 22,237 | — | ||||||||||||||||||
Repurchase of common stock | (119,914 | ) | (2,138 | ) | (2,557 | ) | (4,695 | ) | ||||||||||||
Dividends paid ($ 0.38 per share) | (11,575 | ) | (11,575 | ) | ||||||||||||||||
Six months ending June 30, 2019 | 30,502,757 | $ | 542,939 | $ | 335,145 | $ | (2,198 | ) | $ | 875,886 | ||||||||||
CHANGES IN SHAREHOLDERS’ EQUITY
For the nine months ended September 30, | ||||||||
2018 | 2017 | |||||||
Operating activities: | ||||||||
Net income | $ | 45,109 | $ | 37,565 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation of premises and equipment, and amortization | 4,914 | 5,089 | ||||||
Amortization of intangible assets | 2,068 | 1,050 | ||||||
Provision for (benefit from) loan losses | 1,777 | (1,588 | ) | |||||
Amortization of investment securities premium, net | 1,953 | 2,431 | ||||||
Gain on sale of investment securities | (207 | ) | (961 | ) | ||||
Originations of loans for resale | (63,912 | ) | (83,907 | ) | ||||
Proceeds from sale of loans originated for resale | 66,138 | 85,846 | ||||||
Gain on sale of loans | (1,831 | ) | (2,293 | ) | ||||
Change in market value of mortgage servicing rights | (38) | 795 | ||||||
Provision for losses on foreclosed assets | 89 | 162 | ||||||
Gain on sale of foreclosed assets | (390) | (308 | ) | |||||
Loss on disposal of fixed assets | 206 | 61 | ||||||
Gain on sale of premises held for sale | — | (3 | ) | |||||
Increase in cash value of life insurance | (1,996) | (2,043 | ) | |||||
Life insurance proceeds in excess of cash value | — | (108 | ) | |||||
Loss on marketable equity securities | 92 | — | ||||||
Equity compensation vesting expense | 1,094 | 1,184 | ||||||
Change in: | ||||||||
Reserve for unfunded commitments | (864) | 270 | ||||||
Interest receivable | (5,820) | (629 | ) | |||||
Interest payable | 799 | 49 | ||||||
Other assets and liabilities, net | 10,724 | 3,155 | ||||||
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Net cash from operating activities | 59,905 | 45,817 | ||||||
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Investing activities: | ||||||||
Cash acquired in acquisition, net of consideration paid | 30,613 | — | ||||||
Proceeds from maturities of securities available for sale | 54,510 | 20,889 | ||||||
Proceeds from maturities of securities held to maturity | 54,203 | 64,969 | ||||||
Proceeds from sale of available for sale securities | 293,279 | 25,757 | ||||||
Purchases of securities available for sale | (370,843) | (195,465 | ) | |||||
Net redemption of restricted equity securities | 7,429 | — | ||||||
Loan origination and principal collections, net | (178,596 | ) | (174,914 | ) | ||||
Proceeds from sale of foreclosed assets | 2,206 | 1,787 | ||||||
Proceeds from sale of premises held for sale | — | 3,338 | ||||||
Proceeds from sale of premises and equipment | 62 | — | ||||||
Purchases of premises and equipment | (5,736 | ) | (10,874 | ) | ||||
Life insurance proceeds | — | 649 | ||||||
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Net cash from investing activities | (112,873 | ) | (263,864 | ) | ||||
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Financing activities: | ||||||||
Net change in deposits | 92,051 | 31,896 | ||||||
Net change in other borrowings | (4,335) | 81,237 | ||||||
Repurchase of common stock | (834) | (1,629 | ) | |||||
Dividends paid | (12,984) | (11,228 | ) | |||||
Exercise of stock options | 185 | 193 | ||||||
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Net cash from financing activities | 74,083 | 100,469 | ||||||
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Net change in cash and cash equivalents | 21,115 | (117,578 | ) | |||||
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Cash and cash equivalents at beginning of year | 205,428 | 305,612 | ||||||
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Cash and cash equivalents at end of year | $ | 226,543 | $ | 188,034 | ||||
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Supplemental disclosure of noncash activities: | ||||||||
Unrealized (loss) gain on securities available for sale | $ | (29,704 | ) | $ | 5,411 | |||
Loans transferred to foreclosed assets | $ | 511 | $ | 726 | ||||
Market value of shares tenderedin-lieu of cash to pay for exercise of options and/or related taxes | $ | 1,124 | $ | 3,854 | ||||
Supplemental disclosure of cash flow activity: | ||||||||
Cash paid for interest expense | $ | 8,010 | $ | 4,881 | ||||
Cash paid for income taxes | $ | 11,625 | $ | 15,450 | ||||
Assets acquired in acquisition plus goodwill recognized, net | $ | 1,456,505 | $ | — | ||||
Liabilities assumed in acquisition | $ | 1,172,068 | $ | — |
Shares of Common Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
Balance at March 31, 2018 | 22,956,323 | $ | 256,226 | $ | 266,235 | $ | (17,205 | ) | $ | 505,256 | ||||||||||
Net income | 15,029 | 15,029 | ||||||||||||||||||
Adoption ASU 2016-01 | ||||||||||||||||||||
Adoption ASU 2018-02 | ||||||||||||||||||||
Other comprehensive loss | (3,918 | ) | (3,918 | ) | ||||||||||||||||
Stock option vesting | 17 | 17 | ||||||||||||||||||
Stock options exercised | 14,500 | 223 | 223 | |||||||||||||||||
RSU vesting | 233 | 233 | ||||||||||||||||||
PSU vesting | 81 | 81 | ||||||||||||||||||
RSUs released | 24,904 | — | ||||||||||||||||||
PSUs released | 25,512 | — | ||||||||||||||||||
Repurchase of common stock | (17,086 | ) | (190 | ) | (477 | ) | (667 | ) | ||||||||||||
Dividends paid ($ 0.17 per share) | (3,910 | ) | (3,910 | ) | ||||||||||||||||
Three months ending June 30, 2018 | 23,004,153 | $ | 256,590 | $ | 276,877 | $ | (21,123 | ) | $ | 512,344 | ||||||||||
Balance at January 1, 2018 | 22,955,963 | $ | 255,836 | $ | 255,200 | $ | (5,228 | ) | $ | 505,808 | ||||||||||
Net income | 28,939 | 28,939 | ||||||||||||||||||
Adoption ASU 2016-01 | (62 | ) | 62 | — | ||||||||||||||||
Adoption ASU 2018-02 | 1,093 | (1,093 | ) | — | ||||||||||||||||
Other comprehensive loss | (14,864 | ) | (14,864 | ) | ||||||||||||||||
Stock option vesting | 54 | 54 | ||||||||||||||||||
Stock options exercised | 14,500 | 223 | 223 | |||||||||||||||||
RSU vesting | 471 | 471 | ||||||||||||||||||
PSU vesting | 197 | 197 | ||||||||||||||||||
RSUs released | 25,398 | — | ||||||||||||||||||
PSUs released | 25,512 | — | ||||||||||||||||||
Repurchase of common stock | (17,220 | ) | (191 | ) | (480 | ) | (671 | ) | ||||||||||||
Dividends paid ($ 0.34 per share) | (7,813 | ) | (7,813 | ) | ||||||||||||||||
Six months ending June 30, 2018 | 23,004,153 | $ | 256,590 | $ | 276,877 | $ | (21,123 | ) | $ | 512,344 | ||||||||||
For the six months ended June 30, | ||||||||
2019 | 2018 | |||||||
Operating activities: | ||||||||
Net income | $ | 45,787 | $ | 28,939 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation of premises and equipment, and amortization | 3,582 | 3,229 | ||||||
Amortization of intangible assets | 2,862 | 678 | ||||||
Reversal of provision for loan losses | (1,063 | ) | (874 | ) | ||||
Amortization of investment securities premium, net | 1,186 | 1,340 | ||||||
Originations of loans for resale | (46,936 | ) | (43,389 | ) | ||||
Proceeds from sale of loans originated for resale | 45,407 | 45,437 | ||||||
Gain on sale of loans | (987 | ) | (1,292 | ) | ||||
Change in market value of mortgage servicing rights | 1,197 | (75 | ) | |||||
Provision for losses on foreclosed assets | 62 | 90 | ||||||
Gain on transfer of loans to foreclosed assets | (97 | ) | — | |||||
Gain on sale of foreclosed assets | (199 | ) | (388 | ) | ||||
Loss on disposal of fixed assets | 80 | 54 | ||||||
Increase in cash value of life insurance | (1,521 | ) | (1,264 | ) | ||||
Gain on life insurance death benefit | (728 | ) | — | |||||
(Gain) loss on marketable equity securities | (78 | ) | 70 | |||||
Equity compensation vesting expense | 815 | 722 | ||||||
Change in: | ||||||||
Interest receivable | (1,578 | ) | (481 | ) | ||||
Interest payable | 668 | 245 | ||||||
Other assets and liabilities, net | (14,592 | ) | (97 | ) | ||||
Net cash from operating activities | 33,867 | 32,944 | ||||||
Investing activities: | ||||||||
Proceeds from maturities of securities available for sale | 39,845 | 32,906 | ||||||
Proceeds from maturities of securities held to maturity | 31,938 | 36,587 | ||||||
Purchases of securities available for sale | (37,253 | ) | (81,300 | ) | ||||
Loan origination and principal collections, net | (80,440 | ) | (131,073 | ) | ||||
Proceeds from sale of other real estate owned | 1,082 | 2,150 | ||||||
Proceeds from sale of premises and equipment | 11 | 36 | ||||||
Purchases of premises and equipment | (2,586 | ) | (4,119 | ) | ||||
Net cash from investing activities | (47,403 | ) | (144,813 | ) | ||||
Financing activities: | ||||||||
Net change in deposits | (24,293 | ) | 68,091 | |||||
Net change in other borrowings | (2,547 | ) | 30,673 | |||||
Repurchase of common stock, net | — | (448 | ) | |||||
Dividends paid | (11,575 | ) | (7,813 | ) | ||||
Net cash used by financing activities | (38,415 | ) | 90,503 | |||||
Net change in cash and cash equivalents | (51,951 | ) | (21,366 | ) | ||||
Cash and cash equivalents and beginning of year | 227,533 | 205,428 | ||||||
Cash and cash equivalents at end of year | $ | 175,582 | $ | 184,062 | ||||
Supplemental disclosure of noncash activities: | ||||||||
Unrealized gain (loss) on securities available for sale | $ | 22,263 | $ | (21,304 | ) | |||
Loans transferred to foreclosed assets | 116 | — | ||||||
Market value of shares tendered in-lieu of cash to pay for exercise of options and/or related taxes | 4,695 | 671 | ||||||
Obligations incurred in conjunction with leased assets | 156 | — | ||||||
Supplemental disclosure of cash flow activity: | ||||||||
Cash paid for interest expense | 6,982 | 4,499 | ||||||
Cash paid for income taxes | 22,000 | 8,525 |
The Company believes that the disclosures made are adequate to make the inforamtion not misleading.
Business Combinations
The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquiredBakersfield and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill.
San Luis Obispo.
Revenue Recognition
The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation.
Most of our revenue-generating transactions are not subject to Topic 606, including revenue generated from financial instruments, such as our loans and investment securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. The Company’s noninterest revenue streams are largely based on transactional activity, or standardmonth-end revenue accruals such as asset management fees based onmonth-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2018 and December 31, 2017, the Company did not have any significant contract balances. The Company has evaluated the nature of its revenue streams and determined that further disaggregation of revenue into more granular categories beyond what is presented in the Note 15 was not necessary.
FASB2019
In January 2016, the FASB issued ASUNo. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments by making targeted improvements to GAAP as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (4) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (5) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (6) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (7) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (8) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related toavailable-for-sale securities in combination with the entity’s other deferred tax assets. The adoption of ASUNo. 2016-01 on January 1, 2018 did not have a material impact on the Company’s Consolidated Financial Statements. In accordance with (1) above, the Company recorded a reclassification of cumulative unrealized losses of its marketable equity securities from accumulated other comprehensive income (loss) to retained earnings as of January 1, 2018. Additionally, the Company recognized changes in the fair value of its marketable equity securities in the condensed consolidated statements of net income for the three and nine months ended September 30, 2018. In accordance with (5) above, the Company measured the fair value of its loan portfolio as of September 30, 2018 using an exit price notion (see Note 18 Fair Value MeasurementBoard (“FASB”).
FASB issued ASU No.2016-18, Statement of Cash Flows - Restricted Cash (Topic 230).ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling thebeginning-of-period andend-of-period total amounts shown on the statement of cash flows.ASU 2016-18 was effective for the Company on January 1, 2018 and did not have a significant impact on the Company’s consolidated financial statements.
FASB issued ASUNo. 2017-01,Business Combinations - Clarifying the Definition of a Business (Topic 805).ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business.ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.ASU 2017-01 was effective for the Company on January 1, 2018 and did not have a significant impact on the Company’s consolidated financial statements.
FASB issued ASUNo. 2017-07,Compensation - Retirement Benefits (Topic 715).ASU2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component.ASU 2017-07 was effective for the Company on January 1, 2018 and did not have a significant impact on the Company’s consolidated financial statements.
FASB issued ASU2017-09, Compensation - Stock Compensation (Topic 718).ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. UnderASU 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award’s fair value, (ii) the award’s vesting conditions and (iii) the award’s classification as an equity or liability instrument.ASU 2017-09 was effective for the Company on January 1, 2018 and did not have a significant impact on the Company’s consolidated financial statements.
FASB issued ASU2018-02,Income Statement - Reporting Comprehensive Income (Topic 220).ASU2018-02 allows, but does not require, entities to reclassify certain income tax effects in accumulated other comprehensive income (AOCI) to retained earnings that resulted from the Tax Cuts and Jobs Act (Tax Act) that was enacted on December 22, 2017. The Tax Act included a reduction to the Federal corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The amount of the reclassification would be the difference between the income tax effects in
AOCI calculated using the historical Federal corporate income tax rate of 35 percent and the income tax effects in AOCI calculated using the newly enacted 21 percent Federal corporate income tax rate. The amendments in ASU2018-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU2018-02 on January 1, 2018, and elected to reclassify certain income tax effects in AOCI to retained earnings. This change in accounting principle was accounted for as a cumulative-effect adjustment to the balance sheet resulting in a $1,093,000 increase to retained earnings and a corresponding decrease to AOCI on January 1, 2018.
Accounting Standards Pending Adoption
FASB issued ASUNo. 2016-02,
consolidated financial statements.
FASB issued ASU2017-08,Receivables - Nonrefundable Fees and Other Costs (Topic 310).ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual,non-pooled callable debt securities as a yield adjustment over the contractual life of the security.ASU 2017-08 does not change the accounting for callable debt securities held at a discount.ASU 2017-08 will be effective for the Company on January 1, 2019, and is not expected to have a significant impact on the Company’s consolidated financial statements.
FNB Bancorp July 6, 2018 | ||||
Fair value of consideration transferred: | ||||
Fair value of shares issued | $ | 284,437 | ||
Cash consideration | 6,695 | |||
|
| |||
Total fair value of consideration transferred | 291,132 | |||
|
| |||
Assets acquired: | ||||
Cash and cash equivalents | 37,308 | |||
Securities available for sale | 335,667 | |||
Restricted equity securities | 7,723 | |||
Loans | 834,683 | |||
Premises and equipment | 30,522 | |||
Cash value of life insurance | 16,817 | |||
Core deposit intangible | 27,605 | |||
Other assets | 16,214 | |||
|
| |||
Total assets acquired | 1,306,539 | |||
|
| |||
Liabilities assumed: | ||||
Deposits | 991,935 | |||
Other liabilities | 15,133 | |||
Short-term borrowings - Federal Home Loan Bank | 165,000 | |||
|
| |||
Total liabilities assumed | 1,172,068 | |||
|
| |||
Total net assets acquired | 134,471 | |||
|
| |||
Goodwill recognized | $ | 156,661 | ||
|
|
FNB Bancorp | ||||
July 6, 2018 | ||||
Fair value of consideration transferred: | ||||
Fair value of shares issued | $ | 284,437 | ||
Cash consideration | 6,695 | |||
Total fair value of consideration transferred | 291,132 | |||
Assets acquired: | ||||
Cash and cash equivalents | 37,308 | |||
Securities available for sale | 335,667 | |||
Restricted equity securities | 7,723 | |||
Loans | 834,683 | |||
Premises and equipment | 30,522 | |||
Cash value of life insurance | 16,817 | |||
Core deposit intangible | 27,605 | |||
Other assets | 16,214 | |||
Total assets acquired | 1,306,539 | |||
Liabilities assumed: | ||||
Deposits | 991,935 | |||
Other liabilities | 15,133 | |||
Short-term borrowings - Federal Home Loan Bank | 165,000 | |||
Total liabilities assumed | 1,172,068 | |||
Total net assets acquired | 134,471 | |||
Goodwill recognized | $ | 156,661 |
FNB Bancorp | ||||
July 6, 2018 | ||||
Value of stock consideration paid to FNB Bancorp Shareholders | $ | 284,437 | ||
Cash consideration | 6,695 | |||
Less: | ||||
Cost basis net assets acquired | 114,030 | |||
Fair value adjustments: | ||||
Investments | (1,081 | ) | ||
Loans | (22,390 | ) | ||
Premises and equipment | 21,590 | |||
Core deposit intangible | 27,327 | |||
Deferred income taxes | (6,394 | ) | ||
Other | 1,389 | |||
Goodwill | $ | 156,661 |
The accompanying condensed consolidated financial statements include the accounts of FNB Bancorp since July 6, 2018. The table below presents the unaudited pro forma information as if At the acquisition of FNB Bancorp had occurred on January 1, 2017 after giving effectdate, the Company was unable to certain acquisition accounting adjustments. The pro forma information forestimate the three and nine months ended September 30, 2018 and 2017 includes acquisition adjustments for the amortization/accretion on loans, core deposit intangibles, and related income tax effects. The pro forma financial information also includesone-time costs associated with the acquisition but does not include expected costs savings synergies that we expectcontractual cash flows to achieve. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed date.
Three months ended | Nine months ended | |||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||
( in thousands, except per share data) | ||||||||||||||||
Summarized proforma income statement data: | ||||||||||||||||
Net interest income | $ | 61,259 | $ | 57,329 | $ | 178,434 | $ | 168,363 | ||||||||
Provision for (benefit from) loan losses | 2,651 | 765 | 1,374 | (1,728 | ) | |||||||||||
Noninterest income | 12,288 | 13,902 | 38,517 | 40,537 | ||||||||||||
Noninterest expense | (40,850 | ) | (45,983 | ) | (135,048 | ) | (135,218 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income before taxes | 30,046 | 24,483 | 80,529 | 75,410 | ||||||||||||
Income taxes | 8,384 | 9,055 | 22,996 | 27,436 | ||||||||||||
Net income | $ | 21,662 | $ | 15,428 | $ | 57,533 | $ | 47,974 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Basic earnings per share | $ | 0.72 | $ | 0.51 | $ | 1.76 | $ | 1.58 | ||||||||
Diluted earnings per share | $ | 0.71 | $ | 0.50 | $ | 1.74 | $ | 1.56 |
It is impracticable to separately provide information regarding the revenue and earnings of FNB Bancorp included in the Company’s consolidated income statementbe collected from the July 6, 2018 acquisition date to September 30, 2018 because the operationspurchased credit impaired loans.
September 30, 2018 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||
Obligations of U.S. government agencies | $ | 666,021 | 163 | (27,308 | ) | $ | 638,876 | |||||||||
Obligations of states and political subdivisions | 129,072 | 107 | (5,759 | ) | 123,420 | |||||||||||
Corporate bonds | 4,368 | 65 | (2 | ) | 4,431 | |||||||||||
Asset backed securities | 289,550 | 181 | (498 | ) | 289,233 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total debt securities available for sale | $ | 1,089,011 | $ | 516 | $ | (33,567 | ) | $ | 1,055,960 | |||||||
|
|
|
|
|
|
|
| |||||||||
Debt Securities Held to Maturity | ||||||||||||||||
Obligations of U.S. government agencies | $ | 445,309 | $ | 88 | $ | (13,361 | ) | $ | 432,036 | |||||||
Obligations of states and political subdivisions | 14,588 | 58 | (395 | ) | 14,251 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total debt securities held to maturity | $ | 459,897 | $ | 146 | $ | (13,756 | ) | $ | 446,287 | |||||||
|
|
|
|
|
|
|
| |||||||||
December 31, 2017 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||
Obligations of U.S. government agencies | $ | 609,695 | $ | 695 | $ | (5,601 | ) | $ | 604,789 | |||||||
Obligations of states and political subdivisions | 121,597 | 1,888 | (329 | ) | 123,156 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total debt securities available for sale | $ | 731,292 | $ | 2,583 | $ | (5,930 | ) | $ | 727,945 | |||||||
|
|
|
|
|
|
|
| |||||||||
Debt Securities Held to Maturity | ||||||||||||||||
Obligations of U.S. government agencies | $ | 500,271 | $ | 5,101 | $ | (1,889 | ) | $ | 503,483 | |||||||
Obligations of states and political subdivisions | 14,573 | 146 | (37 | ) | 14,682 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total debt securities held to maturity | $ | 514,844 | $ | 5,247 | $ | (1,926 | ) | $ | 518,165 | |||||||
|
|
|
|
|
|
|
|
Proceeds from sales of available for sale debt securities of $293,279,000 and $25,757,000 were received during the three months ended September 30, 2018 and 2017, respectively. Gross realized gains during the three months ended September 30, 2018 and 2017 were $207,000 and $961,000, respectively.
June 30, 2019 | ||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||
Obligations of U.S. government agencies | $ | 627,996 | $ | 5,193 | $ | (2,278 | ) | $ | 630,911 | |||||||
Obligations of states and political subdivisions | 123,626 | 2,462 | (108 | ) | 125,980 | |||||||||||
Corporate bonds | 4,407 | 114 | — | 4,521 | ||||||||||||
Asset backed securities | 376,676 | 252 | (4,346 | ) | 372,582 | |||||||||||
Total debt securities available for sale | $ | 1,132,705 | $ | 8,021 | $ | (6,732 | ) | $ | 1,133,994 | |||||||
Debt Securities Held to Maturity | ||||||||||||||||
Obligations of U.S. government agencies | $ | 398,714 | $ | 3,661 | $ | (1,199 | ) | $ | 401,176 | |||||||
Obligations of states and political subdivisions | 13,810 | 290 | — | 14,100 | ||||||||||||
Total debt securities held to maturity | $ | 412,524 | $ | 3,951 | $ | (1,199 | ) | $ | 415,276 | |||||||
December 31, 2018 | ||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||
Obligations of U.S. government agencies | $ | 647,288 | $ | 771 | $ | (18,078 | ) | $ | 629,981 | |||||||
Obligations of states and political subdivisions | 128,890 | 294 | (3,112 | ) | 126,072 | |||||||||||
Corporate bonds | 4,381 | 97 | — | 4,478 | ||||||||||||
Asset backed securities | 355,451 | 73 | (1,019 | ) | 354,505 | |||||||||||
Total debt securities available for sale | $ | 1,136,010 | $ | 1,235 | $ | (22,209 | ) | $ | 1,115,036 | |||||||
Debt Securities Held to Maturity | ||||||||||||||||
Obligations of U.S. government agencies | $ | 430,343 | $ | 327 | $ | (7,745 | ) | $ | 422,925 | |||||||
Obligations of states and political subdivisions | 14,593 | 82 | (230 | ) | 14,445 | |||||||||||
Total debt securities held to maturity | $ | 444,936 | $ | 409 | $ | (7,975 | ) | $ | 437,370 | |||||||
Debt Securities | Available for Sale | Held to Maturity | ||||||||||||||
(In thousands) | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
Due in one year | $ | 2,435 | $ | 2,434 | $ | — | $ | — | ||||||||
Due after one year through five years | 12,486 | 12,501 | 1,231 | 1,240 | ||||||||||||
Due after five years through ten years | 17,764 | 17,740 | 25,955 | 25,210 | ||||||||||||
Due after ten years | 1,056,326 | 1,023,285 | 432,711 | 419,837 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Totals | $ | 1,089,011 | $ | 1,055,960 | $ | 459,897 | $ | 446,287 | ||||||||
|
|
|
|
|
|
|
|
Debt Securities | Available for Sale | Held to Maturity | ||||||||||||||
(In thousands) | Amortized | Estimated | Amortized | Estimated | ||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||
Due in one year | $ | 2,415 | $ | 2,421 | $ | — | $ | — | ||||||||
Due after one year through five years | 14,287 | 14,636 | 1,254 | 1,269 | ||||||||||||
Due after five years through ten years | 44,325 | 45,235 | 21,922 | 22,166 | ||||||||||||
Due after ten years | 1,071,678 | 1,071,702 | 389,348 | 391,841 | ||||||||||||
Totals | $ | 1,132,705 | $ | 1,133,994 | $ | 412,524 | $ | 415,276 | ||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
September 30, 2018 | (in thousands) | |||||||||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 323,972 | $ | (10,839 | ) | $ | 311,035 | $ | (16,469 | ) | $ | 635,007 | $ | (27,308 | ) | |||||||||
Obligations of states and political subdivisions | 85,668 | (3,659 | ) | 18,323 | (2,100 | ) | 103,991 | (5,759 | ) | |||||||||||||||
Corporate bonds | 1,969 | (2 | ) | — | — | 1,969 | (2 | ) | ||||||||||||||||
Asset backed securities | 79,943 | (498 | ) | — | — | 79,943 | (498 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total debt securities available for sale | $ | 491,552 | $ | (14,998 | ) | $ | 329,358 | $ | (18,569 | ) | $ | 820,910 | $ | (33,567 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Debt Securities Held to Maturity | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 307,432 | $ | (7,693 | ) | $ | 109,312 | $ | (5,668 | ) | $ | 416,744 | $ | (13,361 | ) | |||||||||
Obligations of states and political subdivisions | 8,971 | (230 | ) | 3,076 | (165 | ) | 12,047 | (395 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total debt securities held to maturity | $ | 316,403 | $ | (7,923 | ) | $ | 112,388 | $ | (5,833 | ) | $ | 428,791 | $ | (13,756 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
December 31, 2017 | (in thousands) | |||||||||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 284,367 | $ | (2,176 | ) | $ | 166,338 | $ | (3,425 | ) | $ | 450,705 | $ | (5,601 | ) | |||||||||
Obligations of states and political subdivisions | 4,904 | (35 | ) | 17,085 | (294 | ) | 21,989 | (329 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total securities available for sale | $ | 289,271 | $ | (2,211 | ) | $ | 183,423 | $ | (3,719 | ) | $ | 472,694 | $ | (5,930 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Debt Securities Held to Maturity | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 93,017 | $ | (567 | ) | $ | 95,367 | $ | (1,322 | ) | $ | 188,384 | $ | (1,889 | ) | |||||||||
Obligations of states and political subdivisions | 1,488 | (7 | ) | 2,637 | (30 | ) | 4,125 | (37 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total debt securities held to maturity | $ | 94,505 | $ | (574 | ) | $ | 98,004 | $ | (1,352 | ) | $ | 192,509 | $ | (1,926 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | — | $ | — | $ | 247,286 | $ | (2,278 | ) | $ | 247,286 | $ | (2,278 | ) | ||||||||||
Obligations of states and political subdivisions | 5,208 | (108 | ) | — | — | 5,208 | (108 | ) | ||||||||||||||||
Corporate Bonds | — | — | — | — | — | — | ||||||||||||||||||
Asset backed securities | 340,012 | (4,346 | ) | — | — | 340,012 | (4,346 | ) | ||||||||||||||||
Total debt securities available for sale | $ | 345,220 | $ | (4,454 | ) | $ | 247,286 | $ | (2,278 | ) | $ | 592,506 | $ | (6,732 | ) | |||||||||
Debt Securities Held to Maturity | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | — | $ | — | $ | 110,702 | $ | (1,199 | ) | $ | 110,702 | $ | (1,199 | ) | ||||||||||
Obligations of states and political subdivisions | — | — | — | — | — | — | ||||||||||||||||||
Total debt securities held to maturity | $ | — | $ | — | $ | 110,702 | $ | (1,199 | ) | $ | 110,702 | $ | (1,199 | ) | ||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Debt Securities Available for Sale | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 171,309 | $ | (3,588 | ) | $ | 394,630 | $ | (14,490 | ) | $ | 565,939 | $ | (18,078 | ) | |||||||||
Obligations of states and political subdivisions | 63,738 | (1,541 | ) | 20,719 | (1,571 | ) | 84,457 | (3,112 | ) | |||||||||||||||
Asset backed securities | 101,386 | (1,019 | ) | — | — | 101,386 | (1,019 | ) | ||||||||||||||||
Total debt securities available for sale | $ | 336,433 | $ | (6,148 | ) | $ | 415,349 | $ | (16,061 | ) | $ | 751,782 | $ | (22,209 | ) | |||||||||
Debt Securities Held to Maturity | ||||||||||||||||||||||||
Obligations of U.S. government agencies | $ | 223,810 | $ | (2,619 | ) | $ | 158,648 | $ | (5,126 | ) | $ | 382,458 | $ | (7,745 | ) | |||||||||
Obligations of states and political subdivisions | 5,786 | (114 | ) | 4,042 | (116 | ) | 9,828 | (230 | ) | |||||||||||||||
Total debt securities held to maturity | $ | 229,596 | $ | (2,733 | ) | $ | 162,690 | $ | (5,242 | ) | $ | 392,286 | $ | (7,975 | ) |
Corporate bonds: The unrealized losses on investments in corporate bonds were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At September 30, 2018, one corporate bond had unrealized losses with aggregate depreciation of (0.1%) from the Company’s amortized cost basis.
September 30, 2018 | ||||||||||||||||
Originated | PNCI | PCI | Total | |||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential1-4 family | $ | 340,515 | $ | 182,201 | $ | 1,698 | $ | 524,414 | ||||||||
Commercial | 1,863,604 | 736,299 | 7,885 | 2,607,788 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total mortgage loans on real estate | 2,204,119 | 918,500 | 9,583 | 3,132,202 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 284,956 | 44,881 | 1,299 | 331,136 | ||||||||||||
Home equity loans | 35,556 | 4,690 | 447 | 40,693 | ||||||||||||
Other | 26,294 | 23,120 | 42 | 49,456 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer loans | 346,806 | 72,691 | 1,788 | 421,285 | ||||||||||||
Commercial | 234,741 | 52,479 | 2,427 | 289,647 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 81,533 | 33,041 | — | 114,574 | ||||||||||||
Commercial | 63,508 | 6,220 | — | 69,728 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total construction | 145,041 | 39,261 | — | 184,302 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total loans, net of deferred loan fees and discounts | $ | 2,930,707 | $ | 1,082,931 | $ | 13,798 | $ | 4,027,436 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total principal balance of loans owed, net of charge-offs | $ | 2,940,897 | $ | 1,120,654 | $ | 21,007 | $ | 4,082,558 | ||||||||
Unamortized net deferred loan fees | (10,190 | ) | — | — | (10,190 | ) | ||||||||||
Discounts to principal balance of loans owed, net of charge-offs | — | (37,723 | ) | (7,209 | ) | (44,932 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total loans, net of unamortized deferred loan fees and discounts | $ | 2,930,707 | $ | 1,082,931 | $ | 13,798 | $ | 4,027,436 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Allowance for loan losses | $ | (30,927 | ) | $ | (566 | ) | $ | (110 | ) | $ | (31,603 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
December 31, 2017 | ||||||||||||||||
Originated | PNCI | PCI | Total | |||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential1-4 family | $ | 320,522 | $ | 63,519 | $ | 1,385 | $ | 385,426 | ||||||||
Commercial | 1,690,510 | 215,823 | 8,563 | 1,914,896 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total mortgage loan on real estate | 2,011,032 | 279,342 | 9,948 | 2,300,322 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 269,942 | 16,248 | 2,498 | 288,688 | ||||||||||||
Home equity loans | 39,848 | 2,698 | 485 | 43,031 | ||||||||||||
Other | 22,859 | 2,251 | 45 | 25,155 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer loans | 332,649 | 21,197 | 3,028 | 356,874 | ||||||||||||
Commercial | 209,437 | 8,391 | 2,584 | 220,412 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 67,920 | 10 | — | 67,930 | ||||||||||||
Commercial | 69,364 | 263 | — | 69,627 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total construction | 137,284 | 273 | — | 137,557 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total loans, net of deferred loan fees and discounts | $ | 2,690,402 | $ | 309,203 | $ | 15,560 | $ | 3,015,165 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total principal balance of loans owed, net of charge-offs | $ | 2,699,053 | $ | 316,238 | $ | 23,181 | $ | 3,038,472 | ||||||||
Unamortized net deferred loan fees | (8,651 | ) | — | — | (8,651 | ) | ||||||||||
Discounts to principal balance of loans owed, net of charge-offs | — | (7,035 | ) | (7,621 | ) | (14,656 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total loans, net of unamortized deferred loan fees and discounts | $ | 2,690,402 | $ | 309,203 | $ | 15,560 | $ | 3,015,165 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Allowance for loan losses | $ | (29,122 | ) | $ | (929 | ) | $ | (272 | ) | $ | (30,323 | ) | ||||
|
|
|
|
|
|
|
|
June 30, 2019 | ||||||||||||||||
Originated | PNCI | PCI | Total | |||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 348,737 | $ | 155,872 | $ | 1,440 | $ | 506,049 | ||||||||
Commercial | 2,005,985 | 660,737 | 5,959 | 2,672,681 | ||||||||||||
Total mortgage loan on real estate | 2,354,722 | 816,609 | 7,399 | 3,178,730 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 294,541 | 35,231 | 1,128 | 330,900 | ||||||||||||
Home equity loans | 29,041 | 2,875 | 429 | 32,345 | ||||||||||||
Other | 53,340 | 17,802 | 1 | 71,143 | ||||||||||||
Total consumer loans | 376,922 | 55,908 | 1,558 | 434,388 | ||||||||||||
Commercial | 248,523 | 24,984 | 2,538 | 276,045 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 148,432 | 9,083 | — | 157,515 | ||||||||||||
Commercial | 56,289 | 720 | — | 57,009 | ||||||||||||
Total construction | 204,721 | 9,803 | — | 214,524 | ||||||||||||
Total loans, net of deferred loan fees and discounts | $ | 3,184,888 | $ | 907,304 | $ | 11,495 | $ | 4,103,687 | ||||||||
Total principal balance of loans owed, net of charge-offs | $ | 3,193,938 | $ | 940,627 | $ | 17,975 | $ | 4,152,540 | ||||||||
Unamortized net deferred loan fees | (9,050 | ) | — | — | (9,050 | ) | ||||||||||
Discounts to principal balance of loans owed, net of charge-offs | — | (33,323 | ) | (6,480 | ) | (39,803 | ) | |||||||||
Total loans, net of unamortized deferred loan fees and discounts | $ | 3,184,888 | $ | 907,304 | $ | 11,495 | $ | 4,103,687 | ||||||||
Allowance for loan losses | $ | (32,273 | ) | $ | (585 | ) | $ | (10 | ) | $ | ( 32,868 | ) | ||||
December 31, 2018 | ||||||||||||||||
Originated | PNCI | PCI | Total | |||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 343,796 | $ | 169,792 | $ | 1,674 | $ | 515,262 | ||||||||
Commercial | 1,910,981 | 708,401 | 8,456 | 2,627,838 | ||||||||||||
Total mortgage loan on real estate | 2,254,777 | 878,193 | 10,130 | 3,143,100 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 284,453 | 40,957 | 1,167 | 326,577 | ||||||||||||
Home equity loans | 32,660 | 3,585 | 439 | 36,684 | ||||||||||||
Other | 34,020 | 21,659 | 42 | 55,721 | ||||||||||||
Total consumer loans | 351,133 | 66,201 | 1,648 | 418,982 | ||||||||||||
Commercial | 228,635 | 45,468 | 2,445 | 276,548 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 90,703 | 30,593 | — | 121,296 | ||||||||||||
Commercial | 56,208 | 5,880 | — | 62,088 | ||||||||||||
Total construction | 146,911 | 36,473 | — | 183,384 | ||||||||||||
Total loans, net of deferred loan fees and discounts | $ | 2,981,456 | $ | 1,026,335 | $ | 14,223 | $ | 4,022,014 | ||||||||
Total principal balance of loans owed, net of charge-offs | $ | 2,991,324 | $ | 1,062,655 | $ | 21,265 | $ | 4,075,244 | ||||||||
Unamortized net deferred loan fees | (9,868 | ) | — | — | (9,868 | ) | ||||||||||
Discounts to principal balance of loans owed, net of charge-offs | — | (36,320 | ) | (7,042 | ) | (43,362 | ) | |||||||||
Total loans, net of unamortized deferred loan fees and discounts | $ | 2,981,456 | $ | 1,026,335 | $ | 14,223 | $ | 4,022,014 | ||||||||
Allowance for loan losses | $ | (31,793 | ) | $ | (667 | ) | $ | (122 | ) | $ | (32,582 | ) | ||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Change in accretable yield: | ||||||||||||||||
Balance at beginning of period | $ | 3,996 | $ | 7,956 | $ | 4,262 | $ | 10,348 | ||||||||
Accretion to interest income | (253 | ) | (594 | ) | (769 | ) | (2,554 | ) | ||||||||
Reclassification (to) from nonaccretable difference | (47 | ) | (2,893 | ) | 203 | (3,325 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Balance at end of period | $ | 3,696 | $ | 4,469 | $ | 3,696 | $ | 4,469 | ||||||||
|
|
|
|
|
|
|
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Change in accretable yield: | ||||||||||||||||
Balance at beginning of period | $ | 5,747 | $ | 6,022 | $ | 6,059 | $ | 6,137 | ||||||||
Accretion to interest income | (109 | ) | (261 | ) | (410 | ) | (516 | ) | ||||||||
Reclassification (to) from nonaccretable difference | (320 | ) | 110 | (331 | ) | 250 | ||||||||||
Balance at end of period | $ | 5,318 | $ | 5,871 | $ | 5,318 | $ | 5,871 | ||||||||
Allowance for Loan Losses – Three Months Ended September 30, 2018 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 1,991 | $ | (25 | ) | $ | — | $ | 434 | $ | 2,400 | |||||||||
Commercial | 11,607 | — | 15 | 1,257 | 12,879 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 13,598 | (25 | ) | 15 | 1,691 | 15,279 | ||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 5,048 | (172 | ) | 151 | 194 | 5,221 | ||||||||||||||
Home equity loans | 1,532 | (23 | ) | 139 | (55 | ) | 1,593 | |||||||||||||
Other | 557 | (229 | ) | 63 | 309 | 700 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 7,137 | (424 | ) | 353 | 448 | 7,514 | ||||||||||||||
Commercial | 6,378 | (693 | ) | 202 | 337 | 6,224 | ||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,434 | — | — | 192 | 1,626 | |||||||||||||||
Commercial | 977 | — | — | (17 | ) | 960 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 2,411 | — | — | 175 | 2,586 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 29,524 | $ | (1,142 | ) | $ | 570 | $ | 2,651 | $ | 31,603 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allowance for Loan Losses – Nine Months Ended September 30, 2018 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 2,317 | $ | (77 | ) | $ | — | $ | 160 | $ | 2,400 | |||||||||
Commercial | 11,441 | (15 | ) | 51 | 1,402 | 12,879 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 13,758 | (92 | ) | 51 | 1,562 | 15,279 | ||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 5,800 | (276 | ) | 677 | (980 | ) | 5,221 | |||||||||||||
Home equity loans | 1,841 | (23 | ) | 176 | (401 | ) | 1,593 | |||||||||||||
Other | 586 | (597 | ) | 208 | 503 | 700 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 8,227 | (896 | ) | 1,061 | (878 | ) | 7,514 | |||||||||||||
Commercial | 6,512 | (952 | ) | 331 | 333 | 6,224 | ||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,184 | — | — | 442 | 1,626 | |||||||||||||||
Commercial | 642 | — | — | 318 | 960 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 1,826 | — | — | 760 | 2,586 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 30,323 | $ | (1,940 | ) | $ | 1,443 | $ | 1,777 | $ | 31,603 | |||||||||
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses – As of September 30, 2018 | ||||||||||||||||
(in thousands) | Individually evaluated for impairment | Loans pooled for evaluation | Loans acquired with deteriorated credit quality | Total allowance for loan losses | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential1-4 family | $ | 57 | $ | 2,313 | $ | 30 | $ | 2,400 | ||||||||
Commercial | 268 | 12,552 | 59 | 12,879 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total mortgage loans on real estate | 325 | 14,865 | 89 | 15,279 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 168 | 5,046 | 7 | 5,221 | ||||||||||||
Home equity loans | 175 | 1,418 | — | 1,593 | ||||||||||||
Other | 103 | 597 | — | 700 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer loans | 446 | 7,061 | 7 | 7,514 | ||||||||||||
Commercial | 1,857 | 4,353 | 14 | 6,224 | ||||||||||||
Construction: | ||||||||||||||||
Residential | — | 1,626 | — | 1,626 | ||||||||||||
Commercial | — | 960 | — | 960 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total construction | — | 2,586 | — | 2,586 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,628 | $ | 28,865 | $ | 110 | $ | 31,603 | ||||||||
|
|
|
|
|
|
|
|
Allowance for Loan Losses – Three Months Ended June 30, 2019 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 2,500 | $ | (2 | ) | $ | 3 | $ | 75 | $ | 2,576 | |||||||||
Commercial | 12,330 | — | 10 | (241 | ) | 12,099 | ||||||||||||||
Total mortgage loans on real estate | 14,830 | (2 | ) | 13 | (166 | ) | 14,675 | |||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 6,015 | — | 183 | (339 | ) | 5,859 | ||||||||||||||
Home equity loans | 1,286 | — | 171 | (215 | ) | 1,242 | ||||||||||||||
Other | 1,040 | (153 | ) | 108 | 456 | 1,451 | ||||||||||||||
Total consumer loans | 8,341 | (153 | ) | 462 | (98 | ) | 8,552 | |||||||||||||
Commercial | 6,078 | (138 | ) | 85 | 720 | 6,745 | ||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 2,408 | — | — | 130 | 2,538 | |||||||||||||||
Commercial | 407 | — | — | (49 | ) | 358 | ||||||||||||||
Total construction | 2,815 | — | — | 81 | 2,896 | |||||||||||||||
Total | $ | 32,064 | $ | (293 | ) | $ | 560 | $ | 537 | $ | 32,868 | |||||||||
Allowance for Loan Losses – Six Months Ended June 30, 2019 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 2,676 | $ | (2 | ) | $ | 5 | $ | (103 | ) | $ | 2,576 | ||||||||
Commercial | 12,944 | — | 1,391 | (2,236 | ) | 12,099 | ||||||||||||||
Total mortgage loans on real estate | 15,620 | (2 | ) | 1,396 | (2,339 | ) | 14,675 | |||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 6,042 | — | 278 | (461 | ) | 5,859 | ||||||||||||||
Home equity loans | 1,540 | — | 258 | (556 | ) | 1,242 | ||||||||||||||
Other | 793 | (360 | ) | 183 | 835 | 1,451 | ||||||||||||||
Total consumer loans | 8,375 | (360 | ) | 719 | (182 | ) | 8,552 | |||||||||||||
Commercial | 6,090 | (657 | ) | 253 | 1,059 | 6,745 | ||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,834 | — | — | 704 | 2,538 | |||||||||||||||
Commercial | 663 | — | — | (305 | ) | 358 | ||||||||||||||
Total construction | 2,497 | — | — | 399 | 2,896 | |||||||||||||||
Total | $ | 32,582 | $ | (1,019 | ) | $ | 2,368 | $ | (1,063 | ) | $ | 32,868 |
Loans, Net of Unearned fees – As of September 30, 2018 | ||||||||||||||||
(in thousands) | Individually evaluated for impairment | Loans pooled for evaluation | Loans acquired with deteriorated credit quality | Total loans, net of unearned fees | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential1-4 family | $ | 4,781 | $ | 517,935 | $ | 1,698 | $ | 524,414 | ||||||||
Commercial | 13,244 | 2,586,659 | 7,885 | 2,607,788 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total mortgage loans on real estate | 18,025 | 3,104,594 | 9,583 | 3,132,202 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 2,188 | 327,649 | 1,299 | 331,136 | ||||||||||||
Home equity loans | 2,406 | 37,840 | 447 | 40,693 | ||||||||||||
Other | 243 | 49,171 | 42 | 49,456 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer loans | 4,837 | 414,660 | 1,788 | 421,285 | ||||||||||||
Commercial | 4,632 | 282,588 | 2,427 | 289,647 | ||||||||||||
Construction: | ||||||||||||||||
Residential | — | 114,574 | — | 114,574 | ||||||||||||
Commercial | — | 69,728 | — | 69,728 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total construction | — | 184,302 | — | 184,302 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 27,494 | $ | 3,986,144 | $ | 13,798 | $ | 4,027,436 | ||||||||
|
|
|
|
|
|
|
|
Allowance for Loan Losses – Year Ended December 31, 2017 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 2,748 | $ | (60 | ) | $ | — | $ | (371 | ) | $ | 2,317 | ||||||||
Commercial | 11,517 | (186 | ) | 397 | (287 | ) | 11,441 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 14,265 | (246 | ) | 397 | (658 | ) | 13,758 | |||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 7,044 | (98 | ) | 698 | (1,844 | ) | 5,800 | |||||||||||||
Home equity loans | 2,644 | (332 | ) | 242 | (713 | ) | 1,841 | |||||||||||||
Other | 622 | (1,186 | ) | 375 | 775 | 586 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 10,310 | (1,616 | ) | 1,315 | (1,782 | ) | 8,227 | |||||||||||||
Commercial | 5,831 | (1,444 | ) | 428 | 1,697 | 6,512 | ||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,417 | (1,104 | ) | — | 871 | 1,184 | ||||||||||||||
Commercial | 680 | — | 1 | (39 | ) | 642 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 2,097 | (1,104 | ) | 1 | 832 | 1,826 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 32,503 | $ | (4,410 | ) | $ | 2,141 | $ | 89 | $ | 30,323 | |||||||||
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses – As of December 31, 2017 | ||||||||||||||||
(in thousands) | Individually evaluated for impairment | Loans pooled for evaluation | Loans acquired with deteriorated credit quality | Total allowance for loan losses | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential1-4 family | $ | 230 | $ | 1,932 | $ | 155 | $ | 2,317 | ||||||||
Commercial | 30 | 11,351 | 60 | 11,441 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total mortgage loans on real estate | 260 | 13,283 | 215 | 13,758 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 427 | 5,356 | 17 | 5,800 | ||||||||||||
Home equity loans | 107 | 1,734 | — | 1,841 | ||||||||||||
Other | 57 | 529 | — | 586 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer loans | 591 | 7,619 | 17 | 8,227 | ||||||||||||
Commercial | 1,848 | 4,624 | 40 | 6,512 | ||||||||||||
Construction: | ||||||||||||||||
Residential | — | 1,184 | — | 1,184 | ||||||||||||
Commercial | — | 642 | — | 642 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total construction | — | 1,826 | — | 1,826 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,699 | $ | 27,352 | $ | 272 | $ | 30,323 | ||||||||
|
|
|
|
|
|
|
|
Loans, Net of Unearned fees – As of December 31, 2017 | ||||||||||||||||
(in thousands) | Individually evaluated for impairment | Loans pooled for evaluation | Loans acquired with deteriorated credit quality | Total loans, net of unearned fees | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential1-4 family | $ | 5,298 | $ | 378,743 | $ | 1,385 | $ | 385,426 | ||||||||
Commercial | 13,911 | 1,892,422 | 8,563 | 1,914,896 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total mortgage loans on real estate | 19,209 | 2,271,165 | 9,948 | 2,300,322 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 2,688 | 283,502 | 2,498 | 288,688 | ||||||||||||
Home equity loans | 1,470 | 41,076 | 485 | 43,031 | ||||||||||||
Other | 257 | 24,853 | 45 | 25,155 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer loans | 4,415 | 349,431 | 3,028 | 356,874 | ||||||||||||
Commercial | 4,470 | 213,358 | 2,584 | 220,412 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 140 | 67,790 | — | 67,930 | ||||||||||||
Commercial | — | 69,627 | — | 69,627 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total construction | 140 | 137,417 | — | 137,557 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 28,234 | $ | 2,971,371 | $ | 15,560 | $ | 3,015,165 | ||||||||
|
|
|
|
|
|
|
|
Allowance for Loan Losses – Three Months Ended September 30, 2017 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge- offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 2,495 | $ | (60 | ) | $ | — | $ | (217 | ) | $ | 2,218 | ||||||||
Commercial | 10,119 | (20 | ) | 238 | 1,033 | 11,370 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 12,614 | (80 | ) | 238 | 816 | 13,588 | ||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 6,156 | (14 | ) | 189 | (610 | ) | 5,721 | |||||||||||||
Home equity loans | 2,354 | (94 | ) | 121 | (390 | ) | 1,991 | |||||||||||||
Other | 645 | (349 | ) | 91 | 203 | 590 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 9,155 | (457 | ) | 401 | (797 | ) | 8,302 | |||||||||||||
Commercial | 4,729 | (291 | ) | 61 | 303 | 4,802 | ||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,179 | (33 | ) | — | 284 | 1,430 | ||||||||||||||
Commercial | 466 | — | — | 159 | 625 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 1,645 | (33 | ) | — | 443 | 2,055 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 28,143 | $ | (861 | ) | $ | 700 | | $ | 765 | $ | 28,747 | ||||||||
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses – Nine Months Ended September 30, 2017 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 2,748 | $ | (60 | ) | $ | $ | (470 | ) | $ | 2,218 | |||||||||
Commercial | 11,517 | (170 | ) | 365 | (342 | ) | 11,370 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 14,265 | (230 | ) | 365 | (812 | ) | 13,588 | |||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 7,044 | (98 | ) | 487 | (1,712 | ) | 5,721 | |||||||||||||
Home equity loans | 2,644 | (331 | ) | 146 | (468 | ) | 1,991 | |||||||||||||
Other | 622 | (831 | ) | 300 | 499 | 590 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 10,310 | (1,260 | ) | 933 | (1,681 | ) | 8,302 | |||||||||||||
Commercial | 5,831 | (1,188 | ) | 315 | (156 | ) | 4,802 | |||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,417 | (1,104 | ) | — | 1,117 | 1,430 | ||||||||||||||
Commercial | 680 | — | 1 | (56 | ) | 625 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 2,097 | (1,104 | ) | 1 | 1,061 | 2,055 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 32,503 | $ | (3,782 | ) | $ | 1,614 | $ | (1,588 | ) | $ | 28,747 | ||||||||
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses – As of September 30, 2017 | ||||||||||||||||
(in thousands) | Individually evaluated for impairment | Loans pooled for evaluation | Loans acquired with deteriorated credit quality | Total allowance for loan losses | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential1-4 family | $ | 240 | $ | 1,978 | $ | — | $ | 2,218 | ||||||||
Commercial | 73 | 11,022 | 275 | 11,370 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total mortgage loans on real estate | 313 | 13,000 | 275 | 13,588 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 363 | 5,346 | 12 | 5,721 | ||||||||||||
Home equity loans | 111 | 1,880 | — | 1,991 | ||||||||||||
Other | 77 | 513 | — | 590 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer loans | 551 | 7,739 | 12 | 8,302 | ||||||||||||
Commercial | 1,276 | 3,526 | — | 4,802 | ||||||||||||
Construction: | ||||||||||||||||
Residential | — | 1,430 | — | 1,430 | ||||||||||||
Commercial | — | 625 | — | 625 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total construction | — | 2,055 | — | 2,055 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 2,140 | $ | 26,320 | $ | 287 | $ | 28,747 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Loans, Net of Unearned fees – As of September 30, 2017 | ||||||||||||||||
(in thousands) | Individually evaluated for impairment | Loans pooled for evaluation | Loans acquired with deteriorated credit quality | Total Loans | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential1-4 family | $ | 5,027 | $ | 384,640 | $ | 1,405 | $ | 391,072 | ||||||||
Commercial | 19,788 | 1,775,843 | 8,171 | 1,803,802 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total mortgage loans on real estate | 24,815 | 2,160,483 | 9,576 | 2,194,874 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 2,219 | 284,335 | 2,952 | 289,506 | ||||||||||||
Home equity loans | 1,842 | 42,454 | 737 | 45,033 | ||||||||||||
Other | 267 | 26,470 | 44 | 26,781 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total consumer loans | 4,328 | 353,259 | 3,733 | 361,320 | ||||||||||||
Commercial | 2,938 | 221,846 | 2,695 | 227,479 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 144 | 74,976 | — | 75,120 | ||||||||||||
Commercial | — | 72,820 | — | 72,820 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total construction | 144 | 147,796 | — | 147,940 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 32,225 | $ | 2,883,384 | $ | 16,004 | $ | 2,931,613 | ||||||||
|
|
|
|
|
|
|
|
Allowance for Loan Losses – As of June 30, 2019 | ||||||||||||||||
(in thousands) | Loans pooled for evaluation | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Total allowance for loan losses | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 2,522 | $ | 54 | $ | — | $ | 2,576 | ||||||||
Commercial | 12,015 | 84 | — | 12,099 | ||||||||||||
Total mortgage loans on real estate | 14,537 | 138 | — | 14,675 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 5,764 | 85 | 10 | 5,859 | ||||||||||||
Home equity loans | 1,181 | 61 | — | 1,242 | ||||||||||||
Other | 1,433 | 18 | — | 1,451 | ||||||||||||
Total consumer loans | 8,378 | 164 | 10 | 8,552 | ||||||||||||
Commercial | 4,605 | 2,140 | — | 6,745 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 2,538 | — | — | 2,538 | ||||||||||||
Commercial | 358 | — | — | 358 | ||||||||||||
Total construction | 2,896 | — | — | 2,896 | ||||||||||||
Total | $ | 30,416 | $ | 2,442 | $ | 10 | $ | 32,868 |
Loans, Net of Unearned fees – As of June 30, 2019 | ||||||||||||||||
(in thousands) | Loans pooled for evaluation | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Total loans, net of unearned fees | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 500,304 | $ | 4,305 | $ | 1,440 | $ | 506,049 | ||||||||
Commercial | 2,655,692 | 11,030 | 5,959 | 2,672,681 | ||||||||||||
Total mortgage loans on real estate | 3,155,996 | 15,335 | 7,399 | 3,178,730 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 327,726 | 2,046 | 1,128 | 330,900 | ||||||||||||
Home equity loans | 29,860 | 2,056 | 429 | 32,345 | ||||||||||||
Other | 70,986 | 156 | 1 | 71,143 | ||||||||||||
Total consumer loans | 428,572 | 4,258 | 1,558 | 434,388 | ||||||||||||
Commercial | 268,405 | 5,102 | 2,538 | 276,045 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 157,515 | — | — | 157,515 | ||||||||||||
Commercial | 57,009 | — | — | 57,009 | ||||||||||||
Total construction | 214,524 | — | — | 214,524 | ||||||||||||
Total | $ | 4,067,497 | $ | 24,695 | $ | 11,495 | $ | 4,103,687 |
Allowance for Loan Losses – Year Ended December 31, 2018 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 2,317 | $ | (77 | ) | $ | — | $ | 436 | $ | 2,676 | |||||||||
Commercial | 11,441 | (15 | ) | 68 | 1,450 | 12,944 | ||||||||||||||
Total mortgage loans on real estate | 13,758 | (92 | ) | 68 | 1,886 | 15,620 | ||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 5,800 | (277 | ) | 846 | (327 | ) | 6,042 | |||||||||||||
Home equity loans | 1,841 | (24 | ) | 297 | (574 | ) | 1,540 | |||||||||||||
Other | 586 | (783 | ) | 288 | 702 | 793 | ||||||||||||||
Total consumer loans | 8,227 | (1,084 | ) | 1,431 | (199 | ) | 8,375 | |||||||||||||
Commercial | 6,512 | (1,188 | ) | 541 | 225 | 6,090 | ||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,184 | — | — | 650 | 1,834 | |||||||||||||||
Commercial | 642 | — | — | 21 | 663 | |||||||||||||||
Total construction | 1,826 | — | — | 671 | 2,497 | |||||||||||||||
Total | $ | 30,323 | $ | (2,364 | ) | $ | 2,040 | $ | 2,583 | $ | 32,582 |
Allowance for Loan Losses – As of December 31, 2018 | ||||||||||||||||
(in thousands) | Loans pooled for evaluation | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Total allowance for loan losses | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 2,620 | $ | 56 | $ | — | $ | 2,676 | ||||||||
Commercial | 12,737 | 91 | 116 | 12,944 | ||||||||||||
Total mortgage loans on real estate | 15,357 | 147 | 116 | 15,620 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 5,838 | 198 | 6 | 6,042 | ||||||||||||
Home equity loans | 1,486 | 54 | — | 1,540 | ||||||||||||
Other | 779 | 14 | — | 793 | ||||||||||||
Total consumer loans | 8,103 | 266 | 6 | 8,375 | ||||||||||||
Commercial | 4,309 | 1,781 | — | 6,090 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 1,834 | — | — | 1,834 | ||||||||||||
Commercial | 663 | — | — | 663 | ||||||||||||
Total construction | 2,497 | — | — | 2,497 | ||||||||||||
Total | $ | 30,266 | $ | 2,194 | $ | 122 | $ | 32,582 |
Loans, Net of Unearned fees – As of December 31, 2018 | ||||||||||||||||
(in thousands) | Loans pooled for evaluation | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Total loans, net of unearned fees | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 509,267 | $ | 4,321 | $ | 1,674 | $ | 515,262 | ||||||||
Commercial | 2,606,819 | 12,563 | 8,456 | 2,627,838 | ||||||||||||
Total mortgage loans on real estate | �� | 3,116,086 | 16,884 | 10,130 | 3,143,100 | |||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 322,764 | 2,646 | 1,167 | 326,577 | ||||||||||||
Home equity loans | 33,142 | 3,103 | 439 | 36,684 | ||||||||||||
Other | 55,483 | 196 | 42 | 55,721 | ||||||||||||
Total consumer loans | 411,389 | 5,945 | 1,648 | 418,982 | ||||||||||||
Commercial | 268,885 | 5,218 | 2,445 | 276,548 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 121,296 | — | — | 121,296 | ||||||||||||
Commercial | 62,088 | — | — | 62,088 | ||||||||||||
Total construction | 183,384 | — | — | 183,384 | ||||||||||||
Total | $ | 3,979,744 | $ | 28,047 | $ | 14,223 | $ | 4,022,014 | ||||||||
Allowance for Loan Losses – Three Months Ended June 30, 2018 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 2,170 | $ | (51 | ) | $ | — | $ | (128 | ) | $ | 1,991 | ||||||||
Commercial | 11,495 | (15 | ) | 21 | 106 | 11,607 | ||||||||||||||
Total mortgage loans on real estate | 13,665 | (66 | ) | 21 | (22 | ) | 13,598 | |||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 5,412 | (24 | ) | 317 | (657 | ) | 5,048 | |||||||||||||
Home equity loans | 1,736 | — | 23 | (227 | ) | 1,532 | ||||||||||||||
Other | 570 | (174 | ) | 66 | 95 | 557 | ||||||||||||||
Total consumer loans | 7,718 | (198 | ) | 406 | (789 | ) | 7,137 | |||||||||||||
Commercial | 6,392 | (54 | ) | 80 | (40 | ) | 6,378 | |||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,351 | — | — | 83 | 1,434 | |||||||||||||||
Commercial | 847 | — | — | 130 | 977 | |||||||||||||||
Total construction | 2,198 | — | — | 213 | 2,411 | |||||||||||||||
Total | $ | 29,973 | $ | (318 | ) | $ | 507 | $ | (638 | ) | $ | 29,524 | ||||||||
Allowance for Loan Losses – Six Months Ended June 30, 2018 | ||||||||||||||||||||
(in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (benefit) | Ending Balance | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 2,317 | $ | (52 | ) | $ | — | $ | (274 | ) | $ | 1,991 | ||||||||
Commercial | 11,441 | (15 | ) | 36 | 145 | 11,607 | ||||||||||||||
Total mortgage loans on real estate | 13,758 | (67 | ) | 36 | (129 | ) | 13,598 | |||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 5,800 | (104 | ) | 526 | (1,174 | ) | 5,048 | |||||||||||||
Home equity loans | 1,841 | — | 37 | (346 | ) | 1,532 | ||||||||||||||
Other | 586 | (368 | ) | 144 | 195 | 557 | ||||||||||||||
Total consumer loans | 8,227 | (472 | ) | 707 | (1,325 | ) | 7,137 | |||||||||||||
Commercial | 6,512 | (259 | ) | 130 | (5 | ) | 6,378 | |||||||||||||
Construction: | ||||||||||||||||||||
Residential | 1,184 | — | — | 250 | 1,434 | |||||||||||||||
Commercial | 642 | — | — | 335 | 977 | |||||||||||||||
Total construction | 1,826 | — | — | 585 | 2,411 | |||||||||||||||
Total | $ | 30,323 | $ | (798 | ) | $ | 873 | $ | (874 | ) | $ | 29,524 | ||||||||
Allowance for Loan Losses – As of June 30, 2018 | ||||||||||||||||
(in thousands) | Loans pooled for evaluation | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Total allowance for loan losses | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 1,794 | $ | 147 | $ | 50 | $ | 1,991 | ||||||||
Commercial | 11,466 | 82 | 59 | 11,607 | ||||||||||||
Total mortgage loans on real estate | 13,260 | 229 | 109 | 13,598 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 4,754 | 287 | 7 | 5,048 | ||||||||||||
Home equity loans | 1,340 | 192 | — | 1,532 | ||||||||||||
Other | 503 | 54 | — | 557 | ||||||||||||
Total consumer loans | 6,597 | 533 | 7 | 7,137 | ||||||||||||
Commercial | 4,228 | 2,127 | 23 | 6,378 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 1,434 | — | — | 1,434 | ||||||||||||
Commercial | 977 | — | — | 977 | ||||||||||||
Total construction | 2,411 | — | — | 2,411 | ||||||||||||
Total | $ | 26,496 | $ | 2,889 | $ | 139 | $ | 29,524 | ||||||||
Loans, Net of Unearned fees – As of June 30, 2018 | ||||||||||||||||
(in thousands) | Loans pooled for evaluation | Individually evaluated for impairment | Loans acquired with deteriorated credit quality | Total loans, net of unearned fees | ||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential 1-4 family | $ | 376,628 | $ | 6,344 | $ | 1,720 | $ | 384,692 | ||||||||
Commercial | 1,997,591 | 11,162 | 7,595 | 2,016,348 | ||||||||||||
Total mortgage loans on real estate | 2,374,219 | 17,506 | 9,315 | 2,401,040 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines of credit | 282,611 | 2,250 | 1,575 | 286,436 | ||||||||||||
Home equity loans | 38,074 | 2,457 | 455 | 40,986 | ||||||||||||
Other | 23,213 | 247 | 43 | 23,503 | ||||||||||||
Total consumer loans | 343,898 | 4,954 | 2,073 | 350,925 | ||||||||||||
Commercial | 230,395 | 4,751 | 2,473 | 237,619 | ||||||||||||
Construction: | ||||||||||||||||
Residential | 73,578 | — | — | 73,578 | ||||||||||||
Commercial | 83,151 | — | — | 83,151 | ||||||||||||
Total construction | 156,729 | — | — | 156,729 | ||||||||||||
Total | $ | 3,105,241 | $ | 27,211 | $ | 13,861 | $ | 3,146,313 | ||||||||
|
|
|
|
|
Credit Quality Indicators Originated Loans – As of September 30, 2018 | ||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard | Doubtful / Loss | Total Originated Loans | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 334,902 | $ | 1,690 | $ | 3,923 | $ | — | $ | 340,515 | ||||||||||
Commercial | 1,821,995 | 28,747 | 12,862 | — | 1,863,604 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 2,156,897 | 30,437 | 16,785 | — | 2,204,119 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 281,480 | 1,747 | 1,729 | — | 284,956 | |||||||||||||||
Home equity loans | 32,242 | 1,006 | 2,308 | — | 35,556 | |||||||||||||||
Other | 25,885 | 334 | 75 | — | 26,294 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 339,607 | 3,087 | 4,112 | — | 346,806 | |||||||||||||||
Commercial | 220,328 | 9,942 | 4,471 | — | 234,741 | |||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 81,235 | 32 | 266 | — | 81,533 | |||||||||||||||
Commercial | 62,660 | 848 | — | — | 63,508 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 143,895 | 880 | 266 | — | 145,041 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total loans | $ | 2,860,727 | $ | 44,346 | $ | 25,634 | $ | — | $ | 2,930,707 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Credit Quality Indicators PNCI Loans – As of September 30, 2018 | ||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard | Doubtful / Loss | Total PNCI Loans | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 179,634 | $ | 880 | $ | 1,687 | $ | — | $ | 182,201 | ||||||||||
Commercial | 729,261 | 3,478 | 3,560 | — | 736,299 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 908,895 | 4,358 | 5,247 | — | 918,500 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 43,406 | 826 | 649 | — | 44,881 | |||||||||||||||
Home equity loans | 4,471 | 116 | 103 | — | 4,690 | |||||||||||||||
Other | 23,083 | 32 | 5 | — | 23,120 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 70,960 | 974 | 757 | — | 72,691 | |||||||||||||||
Commercial | 51,633 | 734 | 112 | — | 52,479 | |||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 33,041 | — | — | — | 33,041 | |||||||||||||||
Commercial | 6,220 | — | — | — | 6,220 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 39,261 | — | — | — | 39,261 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total loans | $ | 1,070,749 | $ | 6,066 | $ | 6,116 | $ | — | $ | 1,082,931 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Credit Quality Indicators Originated Loans – As of December 31, 2017 | ||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard | Doubtful / Loss | Total Originated Loans | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 315,120 | $ | 2,234 | $ | 3,168 | $ | — | $ | 320,522 | ||||||||||
Commercial | 1,649,333 | 18,434 | 22,743 | — | 1,690,510 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 1,964,453 | 20,668 | 25,911 | — | 2,011,032 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 265,345 | 2,558 | 2,039 | — | 269,942 | |||||||||||||||
Home equity loans | 37,428 | 800 | 1,620 | — | 39,848 | |||||||||||||||
Other | 22,432 | 272 | 155 | — | 22,859 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 325,205 | 3,630 | 3,814 | — | 332,649 | |||||||||||||||
Commercial | 195,208 | 9,492 | 4,737 | — | 209,437 | |||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 67,813 | — | 107 | — | 67,920 | |||||||||||||||
Commercial | 64,492 | 4,872 | — | — | 69,364 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 132,305 | 4,872 | 107 | — | 137,284 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total loans | $ | 2,617,171 | $ | 38,662 | $ | 34,569 | $ | — | $ | 2,690,402 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Credit Quality Indicators Originated Loans – As of June 30, 2019 | ||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard | Doubtful / Loss | Total Originated Loans | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 342,847 | $ | 1,048 | $ | 4,842 | $ | — | $ | 348,737 | ||||||||||
Commercial | 1,964,292 | 32,562 | 9,131 | — | 2,005,985 | |||||||||||||||
Total mortgage loans on real estate | 2,307,139 | 33,610 | 13,973 | — | 2,354,722 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 290,524 | 1,673 | 2,344 | — | 294,541 | |||||||||||||||
Home equity loans | 26,265 | 564 | 2,212 | — | 29,041 | |||||||||||||||
Other | 53,044 | 189 | 107 | — | 53,340 | |||||||||||||||
Total consumer loans | 369,833 | 2,426 | 4,663 | — | 376,922 | |||||||||||||||
Commercial | 237,025 | 5,194 | 5,993 | 311 | 248,523 | |||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 148,178 | — | 254 | — | 148,432 | |||||||||||||||
Commercial | 55,958 | 331 | — | — | 56,289 | |||||||||||||||
Total construction | 204,136 | 331 | 254 | — | 204,721 | |||||||||||||||
Total loans | $ | 3,118,133 | $ | 41,561 | $ | 24,883 | $ | 311 | $ | 3,184,888 | ||||||||||
Credit Quality Indicators PNCI Loans – As of June 30, 2019 | ||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard | Doubtful / Loss | Total PNCI Loans | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 154,238 | $ | 864 | $ | 770 | $ | — | $ | 155,872 | ||||||||||
Commercial | 650,821 | 3,141 | 6,775 | — | 660,737 | |||||||||||||||
Total mortgage loans on real estate | 805,059 | 4,005 | 7,545 | — | 816,609 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 33,345 | 795 | 1,091 | — | 35,231 | |||||||||||||||
Home equity loans | 2,727 | 69 | 79 | — | 2,875 | |||||||||||||||
Other | 17,545 | 254 | 3 | — | 17,802 | |||||||||||||||
Total consumer loans | 53,617 | 1,118 | 1,173 | — | 55,908 | |||||||||||||||
Commercial | 24,650 | 1 | 333 | — | 24,984 | |||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 9,083 | — | — | — | 9,083 | |||||||||||||||
Commercial | 475 | — | 245 | — | 720 | |||||||||||||||
Total construction | 9,558 | — | 245 | — | 9,803 | |||||||||||||||
Total loans | $ | 892,884 | $ | 5,124 | $ | 9,296 | $ | — | $ | 907,304 | ||||||||||
Credit Quality Indicators PNCI Loans – As of December 31, 2017 | ||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard | Doubtful / Loss | Total PNCI Loans | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential1-4 family | $ | 61,411 | $ | 218 | $ | 1,890 | $ | — | $ | 63,519 | ||||||||||
Commercial | 203,751 | 11,513 | 559 | — | 215,823 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total mortgage loans on real estate | 265,162 | 11,731 | 2,449 | — | 279,342 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 14,866 | 450 | 932 | — | 16,248 | |||||||||||||||
Home equity loans | 2,433 | 188 | 77 | — | 2,698 | |||||||||||||||
Other | 2,207 | 38 | 6 | — | 2,251 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer loans | 19,506 | 676 | 1,015 | — | 21,197 | |||||||||||||||
Commercial | 8,390 | 1 | — | — | 8,391 | |||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 10 | — | — | — | 10 | |||||||||||||||
Commercial | 263 | — | — | — | 263 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total construction | 273 | — | — | — | 273 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 293,331 | $ | 12,408 | $ | 3,464 | $ | — | $ | 309,203 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Credit Quality Indicators Originated Loans – As of December 31, 2018 | ||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard | Doubtful / Loss | Total Originated Loans | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 337,189 | $ | 1,724 | $ | 4,883 | $ | — | $ | 343,796 | ||||||||||
Commercial | 1,861,627 | 33,483 | 15,871 | — | 1,910,981 | |||||||||||||||
Total mortgage loans on real estate | 2,198,816 | 35,207 | 20,754 | — | 2,254,777 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 279,491 | 2,309 | 2,653 | — | 284,453 | |||||||||||||||
Home equity loans | 29,289 | 1,054 | 2,317 | — | 32,660 | |||||||||||||||
Other | 33,606 | 341 | 73 | — | 34,020 | |||||||||||||||
Total consumer loans | 342,386 | 3,704 | 5,043 | — | 351,133 | |||||||||||||||
Commercial | 217,126 | 6,127 | 5,382 | — | 228,635 | |||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 90,412 | 32 | 259 | — | 90,703 | |||||||||||||||
Commercial | 55,863 | 345 | — | — | 56,208 | |||||||||||||||
Total construction | 146,275 | 377 | 259 | — | 146,911 | |||||||||||||||
Total loans | $ | 2,904,603 | $ | 45,415 | $ | 31,438 | $ | — | $ | 2,981,456 | ||||||||||
Credit Quality Indicators PNCI Loans – As of December 31, 2018 | ||||||||||||||||||||
(in thousands) | Pass | Special Mention | Substandard | Doubtful / Loss | Total PNCI Loans | |||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||
Residential 1-4 family | $ | 167,908 | $ | 1,086 | $ | 798 | $ | — | $ | 169,792 | ||||||||||
Commercial | 701,868 | 3,085 | 3,448 | — | 708,401 | |||||||||||||||
Total mortgage loans on real estate | 869,776 | 4,171 | 4,246 | — | 878,193 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity lines of credit | 38,780 | 1,124 | 1,053 | — | 40,957 | |||||||||||||||
Home equity loans | 3,413 | 74 | 98 | — | 3,585 | |||||||||||||||
Other | 21,481 | 173 | 5 | — | 21,659 | |||||||||||||||
Total consumer loans | 63,674 | 1,371 | 1,156 | — | 66,201 | |||||||||||||||
Commercial | 45,027 | 321 | 120 | — | 45,468 | |||||||||||||||
Construction: | ||||||||||||||||||||
Residential | 30,593 | — | — | — | 30,593 | |||||||||||||||
Commercial | 5,880 | — | — | — | 5,880 | |||||||||||||||
Total construction | 36,473 | — | — | — | 36,473 | |||||||||||||||
Total | $ | 1,014,950 | $ | 5,863 | $ | 5,522 | $ | — | $ | 1,026,335 | ||||||||||
Problem consumer loans are generally identified by payment history and current performance of the borrower (delinquency). The Bank manages its consumer loan portfolios by monitoring delinquency and contacting borrowers to encourage repayment, suggestsuggesting modifications if appropriate, and, when continued scheduled payments become unrealistic, initiateinitiating repossession or foreclosure through appropriate channels.
Analysis of Originated Past Due Loans - As of September 30, 2018 | ³ 90 Days and Still Accruing | |||||||||||||||||||||||||||
(in thousands) | 30-59 days | 60-89 days | > 90 days | Total Past Due Loans | Current | Total | ||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | 275 | $ | 749 | $ | 738 | $ | 1,762 | $ | 338,753 | $ | 340,515 | $ | — | ||||||||||||||
Commercial | 499 | 150 | 117 | 766 | 1,862,838 | 1,863,604 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 774 | 899 | 855 | 2,528 | 2,201,591 | 2,204,119 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,450 | 97 | 112 | 1,659 | 283,297 | 284,956 | — | |||||||||||||||||||||
Home equity loans | 527 | 293 | 411 | 1,231 | 34,325 | 35,556 | — | |||||||||||||||||||||
Other | 262 | 24 | — | 286 | 26,008 | 26,294 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 2,239 | 414 | 523 | 3,176 | 343,630 | 346,806 | — | |||||||||||||||||||||
Commercial | 1,010 | 134 | 1,309 | 2,453 | 232,288 | 234,741 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | 488 | — | — | 488 | 81,045 | 81,533 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 63,508 | 63,508 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | 488 | — | — | 488 | 144,553 | 145,041 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total originated loans | $ | 4,511 | $ | 1,447 | $ | 2,687 | $ | 8,645 | $ | 2,922,062 | $ | 2,930,707 | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of Originated Past Due Loans - As of June 30, 2019 | ||||||||||||||||||||||||||||
(in thousands) | 30-59 days | 60-89 days | > 90 days | Total Past Due Loans | Current | Total | > 90 Days and Still Accruing | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 635 | $ | 1,132 | $ | 758 | $ | 2,525 | $ | 346,212 | $ | 348,737 | $ | — | ||||||||||||||
Commercial | 1,022 | 174 | 901 | 2,097 | 2,003,888 | 2,005,985 | — | |||||||||||||||||||||
Total mortgage loans on real estate | 1,657 | 1,306 | 1,659 | 4,622 | 2,350,100 | 2,354,722 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,197 | 557 | 157 | 1,911 | 292,630 | 294,541 | — | |||||||||||||||||||||
Home equity loans | 565 | 89 | 217 | 871 | 28,170 | 29,041 | ||||||||||||||||||||||
Other | 44 | 13 | 7 | 64 | 53,276 | 53,340 | 12 | |||||||||||||||||||||
Total consumer loans | 1,806 | 659 | 381 | 2,846 | 374,076 | 376,922 | 12 | |||||||||||||||||||||
Commercial | 1,154 | 1,560 | 333 | 3,047 | 245,476 | 248,523 | 10 | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | 151 | — | — | 151 | 148,281 | 148,432 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 56,289 | 56,289 | — | |||||||||||||||||||||
Total construction | 151 | — | — | 151 | 204,570 | 204,721 | — | |||||||||||||||||||||
Total originated loans | $ | 4,768 | $ | 3,525 | $ | 2,373 | $ | 10,666 | $ | 3,174,222 | $ | 3,184,888 | $ | 22 | ||||||||||||||
Analysis of PNCI Past Due Loans - As of September 30, 2018 | ³ 90 Days and Still Accruing | |||||||||||||||||||||||||||
(in thousands) | 30-59 days | 60-89 days | > 90 days | Total Past Due Loans | Current | Total | ||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | $ | 397 | $ | 163 | $ | 560 | $ | 181,641 | $ | 182,201 | $ | — | |||||||||||||||
Commercial | 992 | 18 | 949 | 1,959 | 734,340 | 736,299 | 949 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 992 | 415 | 1,112 | 2,519 | 915,981 | 918,500 | 949 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 613 | 192 | 227 | 1,032 | 43,849 | 44,881 | 99 | |||||||||||||||||||||
Home equity loans | 262 | — | 16 | 278 | 4,412 | 4,690 | — | |||||||||||||||||||||
Other | 242 | — | — | 242 | 22,878 | 23,120 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 1,117 | 192 | 243 | 1,552 | 71,139 | 72,691 | 99 | |||||||||||||||||||||
Commercial | 30 | 472 | — | 502 | 51,977 | 52,479 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | 33,041 | 33,041 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 6,220 | 6,220 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | — | — | — | — | 39,261 | 39,261 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total PNCI loans | $ | 2,139 | $ | 1,079 | $ | 1,355 | $ | 4,573 | $ | 1,078,358 | $ | 1,082,931 | $ | 1,048 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of PNCI Past Due Loans - As of June 30, 2019 | ||||||||||||||||||||||||||||
(in thousands) | 30-59 days | 60-89 days | > 90 days | Total Past Due Loans | Current | Total | > 90 Days and Still Accruing | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | — | $ | 682 | $ | — | $ | 682 | $ | 155,190 | $ | 155,872 | $ | — | ||||||||||||||
Commercial | — | 195 | 950 | 1,145 | 659,592 | 660,737 | — | |||||||||||||||||||||
Total mortgage loans on real estate | — | 877 | 950 | 1,827 | 814,782 | 816,609 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 101 | 73 | 24 | 198 | 35,033 | 35,231 | — | |||||||||||||||||||||
Home equity loans | 62 | — | — | 62 | 2,813 | 2,875 | — | |||||||||||||||||||||
Other | 119 | — | — | 119 | 17,683 | 17,802 | — | |||||||||||||||||||||
Total consumer loans | 282 | 73 | 24 | 379 | 55,529 | 55,908 | — | |||||||||||||||||||||
Commercial | 820 | 150 | 113 | 1,083 | 23,901 | 24,984 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | 9,083 | 9,083 | — | |||||||||||||||||||||
Commercial | 245 | — | — | 245 | 475 | 720 | — | |||||||||||||||||||||
Total construction | 245 | — | — | 245 | 9,558 | 9,803 | — | |||||||||||||||||||||
Total PNCI loans | $ | 1,347 | $ | 1,100 | $ | 1,087 | $ | 3,534 | $ | 903,770 | $ | 907,304 | $ | — | ||||||||||||||
Analysis of Originated Past Due Loans - As of December 31, 2017 | ³ 90 Days and Still Accruing | |||||||||||||||||||||||||||
(in thousands) | 30-59 days | 60-89 days | > 90 days | Total Past Due Loans | Current | Total | ||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | 1,740 | $ | 510 | $ | 243 | $ | 2,493 | $ | 318,029 | $ | 320,522 | $ | — | ||||||||||||||
Commercial | 158 | 987 | — | 1,145 | 1,689,365 | 1,690,510 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 1,898 | 1,497 | 243 | 3,638 | 2,007,394 | 2,011,032 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 528 | 48 | 372 | 948 | 268,994 | 269,942 | — | |||||||||||||||||||||
Home equity loans | 511 | 107 | 373 | 991 | 38,857 | 39,848 | — | |||||||||||||||||||||
Other | 56 | 36 | 3 | 95 | 22,764 | 22,859 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 1,095 | 191 | 748 | 2,034 | 330,615 | 332,649 | — | |||||||||||||||||||||
Commercial | 956 | 738 | 1,527 | 3,221 | 206,216 | 209,437 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | 34 | — | — | 34 | 67,886 | 67,920 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 69,364 | 69,364 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | 34 | — | — | 34 | 137,250 | 137,284 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total loans | $ | 3,983 | $ | 2,426 | $ | 2,518 | $ | 8,927 | $ | 2,681,475 | $ | 2,690,402 | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of Originated Past Due Loans - As of December 31, 2018 | ||||||||||||||||||||||||||||
(in thousands) | 30-59 days | 60-89 days | > 90 days | Total Past Due Loans | Current | Total | > 90 Days and Still Accruing | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 1,675 | $ | 132 | $ | 478 | $ | 2,285 | $ | 341,511 | $ | 343,796 | $ | — | ||||||||||||||
Commercial | 431 | 1,200 | 296 | 1,927 | 1,909,054 | 1,910,981 | — | |||||||||||||||||||||
Total mortgage loans on real estate | 2,106 | 1,332 | 774 | 4,212 | 2,250,565 | 2,254,777 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 908 | 47 | 609 | 1,564 | 282,889 | 284,453 | — | |||||||||||||||||||||
Home equity loans | 1,043 | 24 | 214 | 1,281 | 31,379 | 32,660 | — | |||||||||||||||||||||
Other | 298 | 17 | — | 315 | 33,705 | 34,020 | — | |||||||||||||||||||||
Total consumer loans | 2,249 | 88 | 823 | 3,160 | 347,973 | 351,133 | — | |||||||||||||||||||||
Commercial | 1,053 | 579 | 1,247 | 2,879 | 225,756 | 228,635 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | 209 | — | — | 209 | 90,494 | 90,703 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 56,208 | 56,208 | — | |||||||||||||||||||||
Total construction | 209 | — | — | 209 | 146,702 | 146,911 | — | |||||||||||||||||||||
Total loans | $ | 5,617 | $ | 1,999 | $ | 2,844 | $ | 10,460 | $ | 2,970,996 | $ | 2,981,456 | $ | — | ||||||||||||||
Analysis of PNCI Past Due Loans - As of December 31, 2017 | > 90 Days and Still Accruing | |||||||||||||||||||||||||||
(in thousands) | 30-59 days | 60-89 days | > 90 days | Total Past Due Loans | Current | Total | ||||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 1,495 | $ | 90 | $ | 109 | $ | 1,694 | $ | 61,825 | $ | 63,519 | $ | 81 | ||||||||||||||
Commercial | 70 | — | — | 70 | 215,753 | 215,823 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 1,565 | 90 | 109 | 1,764 | 277,578 | 279,342 | 81 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 298 | 228 | 330 | 856 | 15,392 | 16,248 | 200 | |||||||||||||||||||||
Home equity loans | 30 | — | — | 30 | 2,668 | 2,698 | — | |||||||||||||||||||||
Other | 6 | 26 | — | 32 | 2,219 | 2,251 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 334 | 254 | 330 | 918 | 20,279 | 21,197 | 200 | |||||||||||||||||||||
Commercial | — | — | — | — | 8,391 | 8,391 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | 10 | 10 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 263 | 263 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | — | — | — | — | 273 | 273 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total loans | $ | 1,899 | $ | 344 | $ | 439 | $ | 2,682 | $ | 306,521 | $ | 309,203 | $ | 281 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of PNCI Past Due Loans - As of December 31, 2018 | ||||||||||||||||||||||||||||
(in thousands) | 30-59 days | 60-89 days | > 90 days | Total Past Due Loans | Current | Total | > 90 Days and Still Accruing | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 1,009 | $ | 133 | $ | 156 | $ | 1,298 | $ | 168,494 | $ | 169,792 | $ | — | ||||||||||||||
Commercial | 1,646 | 1,136 | 1,082 | 3,864 | 704,537 | 708,401 | — | |||||||||||||||||||||
Total mortgage loans on real estate | 2,655 | 1,269 | 1,238 | 5,162 | 873,031 | 878,193 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 304 | 35 | 237 | 576 | 40,381 | 40,957 | — | |||||||||||||||||||||
Home equity loans | 74 | — | — | 74 | 3,511 | 3,585 | — | |||||||||||||||||||||
Other | 160 | — | — | 160 | 21,499 | 21,659 | — | |||||||||||||||||||||
Total consumer loans | 538 | 35 | 237 | 810 | 65,391 | 66,201 | — | |||||||||||||||||||||
Commercial | 678 | 145 | 113 | 936 | 44,532 | 45,468 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | 30,593 | 30,593 | — | |||||||||||||||||||||
Commercial | — | — | — | — | 5,880 | 5,880 | — | |||||||||||||||||||||
Total construction | — | — | — | — | 36,473 | 36,473 | — | |||||||||||||||||||||
Total loans | $ | 3,871 | $ | 1,449 | $ | 1,588 | $ | 6,908 | $ | 1,019,427 | $ | 1,026,335 | $ | — | ||||||||||||||
$12,000.
$11,000.
Non Accrual Loans | ||||||||||||||||||||||||
As of September 30, 2018 | As of December 31, 2017 | |||||||||||||||||||||||
(in thousands) | Originated | PNCI | Total | Originated | PNCI | Total | ||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||
Residential 1-4 family | $ | 2,813 | $ | 1,219 | $ | 4,032 | $ | 1,725 | $ | 1,012 | $ | 2,737 | ||||||||||||
Commercial | 7,876 | 305 | 8,181 | 8,144 | — | 8,144 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total mortgage loans on real estate | 10,689 | 1,524 | 12,213 | 9,869 | 1,012 | 10,881 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines of credit | 725 | 568 | 1,293 | 811 | 402 | 1,213 | ||||||||||||||||||
Home equity loans | 1,933 | 50 | 1,983 | 1,106 | 44 | 1,150 | ||||||||||||||||||
Other | 3 | 5 | 8 | 7 | 5 | 12 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total consumer loans | 2,661 | 623 | 3,284 | 1,924 | 451 | 2,375 | ||||||||||||||||||
Commercial | 3,737 | — | 3,737 | 3,669 | — | 3,669 | ||||||||||||||||||
Construction: | ||||||||||||||||||||||||
Residential | — | — | — | — | — | — | ||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total construction | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total non accrual loans | $ | 17,087 | $ | 2,147 | $ | 19,234 | $ | 15,462 | $ | 1,463 | $ | 16,925 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Non Accrual Loans | ||||||||||||||||||||||||
As of June 30, 2019 | As of December 31, 2018 | |||||||||||||||||||||||
(in thousands) | Originated | PNCI | Total | Originated | PNCI | Total | ||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||
Residential 1-4 family | $ | 3,357 | $ | 300 | $ | 3,657 | $ | 3,244 | $ | 334 | $ | 3,578 | ||||||||||||
Commercial | 4,354 | 3,461 | 7,815 | 9,263 | 1,468 | 10,731 | ||||||||||||||||||
Total mortgage loans on real estate | 7,711 | 3,761 | 11,472 | 12,507 | 1,802 | 14,309 | ||||||||||||||||||
Consumer: | ||||||||||||||||||||||||
Home equity lines of credit | 880 | 516 | 1,396 | 1,429 | 885 | 2,314 | ||||||||||||||||||
Home equity loans | 1,610 | 34 | 1,644 | 1,722 | 47 | 1,769 | ||||||||||||||||||
Other | 58 | 3 | 61 | 3 | 4 | 7 | ||||||||||||||||||
Total consumer loans | 2,548 | 553 | 3,101 | 3,154 | 936 | 4,090 | ||||||||||||||||||
Commercial | 3,873 | 183 | 4,056 | 3,755 | 120 | 3,875 | ||||||||||||||||||
Construction: | ||||||||||||||||||||||||
Residential | — | — | — | — | — | — | ||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||||||
Total construction | — | — | — | — | — | — | ||||||||||||||||||
Total non accrual loans | $ | 14,132 | $ | 4,497 | $ | 18,629 | $ | 19,416 | $ | 2,858 | $ | 22,274 | ||||||||||||
Impaired Originated Loans – As of, or for the Nine Months Ended, September 30, 2018 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | 4,185 | $ | 3,251 | $ | 311 | $ | 3,562 | $ | 57 | $ | 3,883 | $ | 67 | ||||||||||||||
Commercial | 12,553 | 9,619 | 2,370 | 11,989 | 268 | 11,549 | 208 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 16,738 | 12,870 | 2,681 | 15,551 | 325 | 15,432 | 275 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,444 | 1,346 | 59 | 1,405 | 19 | 1,410 | 32 | |||||||||||||||||||||
Home equity loans | 2,554 | 1,960 | 157 | 2,117 | 30 | 1,753 | 24 | |||||||||||||||||||||
Other | 3 | — | 3 | 3 | 3 | 3 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 4,001 | 3,306 | 219 | 3,525 | 52 | 3,166 | 56 | |||||||||||||||||||||
Commercial | 4,868 | 2,135 | 2,497 | 4,632 | 1,857 | 4,626 | 78 | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | 68 | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | — | — | — | — | — | 68 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 25,607 | $ | 18,311 | $ | 5,397 | $ | 23,708 | $ | 2,234 | $ | 23,292 | $ | 409 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Impaired PNCI Loans – As of, or for the Nine Months Ended, September 30, 2018 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | 1,302 | $ | 1,219 | $ | — | $ | 1,219 | $ | — | $ | 1,275 | $ | — | ||||||||||||||
Commercial | 1,255 | 1,255 | — | 1,255 | — | 627 | 58 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 2,557 | 2,474 | — | 2,474 | — | 1,902 | 58 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 852 | 625 | 158 | 783 | 149 | 909 | 13 | |||||||||||||||||||||
Home equity loans | 296 | 50 | 239 | 289 | 145 | 287 | 9 | |||||||||||||||||||||
Other | 240 | — | 240 | 240 | 100 | 257 | 7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 1,388 | 675 | 637 | 1,312 | 394 | 1,453 | 29 | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 3,945 | $ | 3,149 | $ | 637 | $ | 3,786 | $ | 394 | $ | 3,355 | $ | 87 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Impaired Originated Loans – As of, or for the Twelve Months Ended, December 31, 2017 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | 4,023 | $ | 2,058 | $ | 1,881 | $ | 3,939 | $ | 230 | $ | 3,501 | $ | 143 | ||||||||||||||
Commercial | 14,186 | 13,101 | 810 | 13,911 | 30 | 13,851 | 645 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 18,209 | 15,159 | 2,691 | 17,850 | 260 | 17,352 | 788 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,581 | 1,093 | 401 | 1,494 | 111 | 1,702 | 47 | |||||||||||||||||||||
Home equity loans | 1,627 | 1,107 | 198 | 1,305 | 10 | 1,193 | 24 | |||||||||||||||||||||
Other | 52 | 4 | 3 | 7 | 3 | 20 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 3,260 | 2,204 | 602 | 2,806 | 124 | 2,915 | 71 | |||||||||||||||||||||
Commercial | 4,566 | 575 | 3,895 | 4,470 | 1,848 | 4,283 | 184 | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | 140 | 140 | — | 140 | — | 76 | 9 | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | 140 | 140 | — | 140 | — | 76 | 9 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 26,175 | $ | 18,078 | $ | 7,188 | $ | 25,266 | $ | 2,232 | $ | 24,626 | $ | 1,052 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired PNCI Loans – As of, or for the Twelve Months Ended, December 31, 2017 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | 1,404 | $ | 1,359 | $ | — | $ | 1,359 | $ | — | $ | 1,041 | $ | 24 | ||||||||||||||
Commercial | — | — | — | — | — | 979 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 1,404 | 1,359 | — | 1,359 | — | 2,020 | 24 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,216 | 591 | 603 | 1,194 | 316 | 1,240 | 48 | |||||||||||||||||||||
Home equity loans | 178 | 44 | 121 | 165 | 97 | 117 | 6 | |||||||||||||||||||||
Other | 250 | — | 250 | 250 | 54 | 186 | 11 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 1,644 | 635 | 974 | 1,609 | 467 | 1,543 | 65 | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 3,048 | $ | 1,994 | $ | 974 | $ | 2,968 | $ | 467 | $ | 3,563 | $ | 89 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Impaired Originated Loans – As of, or for the Nine Months Ended, September 30, 2017 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | 3,489 | $ | 1,777 | $ | 1,644 | $ | 3,421 | $ | 167 | $ | 3,242 | $ | 90 | ||||||||||||||
Commercial | 18,643 | 17,039 | 1,150 | 18,189 | 73 | 15,990 | 514 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 22,132 | 18,816 | 2,794 | 21,610 | 240 | 19,232 | 604 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,324 | 1,108 | 110 | 1,218 | 33 | 1,564 | 25 | |||||||||||||||||||||
Home equity loans | 2,091 | 1,470 | 199 | 1,669 | 13 | 1,376 | 32 | |||||||||||||||||||||
Other | 59 | 3 | 11 | 14 | 7 | 23 | (25 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 3,474 | 2,581 | 320 | 2,901 | 53 | 2,963 | 32 | |||||||||||||||||||||
Commercial | 3,262 | 884 | 2,048 | 2,932 | 1,270 | 3,514 | 69 | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | 144 | 144 | — | 144 | — | 78 | 7 | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | 144 | 144 | — | 144 | — | 78 | 7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 29,012 | $ | 22,425 | $ | 5,162 | $ | 27,587 | $ | 1,563 | $ | 25,787 | $ | 712 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Impaired PNCI Loans – As of, or for the Nine Months Ended, September 30, 2017 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | $ | 1,634 | $ | 1,356 | $ | 250 | $ | 1,606 | $ | 73 | $ | 1,165 | $ | 24 | ||||||||||||||
Commercial | 1,869 | 1,599 | — | 1,599 | — | 1,778 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 3,503 | 2,955 | 250 | 3,205 | 73 | 2,943 | 24 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,020 | 394 | 607 | 1,001 | 328 | 1,143 | 28 | |||||||||||||||||||||
Home equity loans | 185 | 50 | 123 | 173 | 99 | 121 | 5 | |||||||||||||||||||||
Other | 253 | — | 253 | 253 | 71 | 187 | 8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 1,458 | 444 | 983 | 1,427 | 498 | 1,451 | 41 | |||||||||||||||||||||
Commercial | 6 | — | — | — | 6 | 3 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 4,967 | $ | 3,399 | $ | 1,233 | $ | 4,632 | $ | 577 | $ | 4,397 | $ | 65 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September
Impaired Originated Loans – As of, or for the Six Months Ended, June 30, 2019 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 4,739 | $ | 3,705 | $ | 300 | $ | 4,005 | $ | 54 | $ | 4,291 | $ | 18 | ||||||||||||||
Commercial | 7,906 | 5,103 | 2,465 | 7,568 | 808 | 10,004 | 40 | |||||||||||||||||||||
Total mortgage loans on real estate | 12,645 | 8,808 | 2,765 | 11,573 | 862 | 14,295 | 58 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,333 | 1,271 | — | 1,271 | — | 1,510 | 8 | |||||||||||||||||||||
Home equity loans | 2,373 | 1,571 | 268 | 1,839 | 61 | 2,003 | 4 | |||||||||||||||||||||
Other | 76 | 3 | 54 | 57 | 13 | 48 | 1 | |||||||||||||||||||||
Total consumer loans | 3,782 | 2,845 | 322 | 3,167 | 74 | 3,561 | 13 | |||||||||||||||||||||
Commercial | 5,150 | 1,884 | 3,035 | 4,919 | 1,301 | 5,065 | 15 | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 21,577 | $ | 13,537 | $ | 6,122 | $ | 19,659 | $ | 2,237 | $ | 22,921 | $ | 86 | ||||||||||||||
Impaired PNCI Loans – As of, or for the Six Months Ended, June 30, 2019 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 339 | $ | 300 | $ | — | $ | 300 | $ | — | $ | 317 | $ | — | ||||||||||||||
Commercial | 5,079 | 3,462 | — | 3,462 | — | 2,465 | 171 | |||||||||||||||||||||
Total mortgage loans on real estate | 5,418 | 3,762 | — | 3,762 | — | 2,782 | 171 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 612 | 534 | 241 | 775 | 85 | 889 | — | |||||||||||||||||||||
Home equity loans | 167 | 148 | 69 | 217 | 44 | 229 | — | |||||||||||||||||||||
Other | 62 | 62 | 37 | 99 | 6 | 105 | — | |||||||||||||||||||||
Total consumer loans | 841 | 744 | 347 | 1,091 | 135 | 1,223 | — | |||||||||||||||||||||
Commercial | 113 | 113 | 70 | 183 | 70 | 151 | ||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 6,372 | $ | 4,619 | $ | 417 | $ | 5,036 | $ | 205 | $ | 4,156 | $ | 171 | ||||||||||||||
Impaired Originated Loans – As of, or for the Twelve Months Ended, December 31, 2018 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 4,594 | $ | 3,663 | $ | 308 | $ | 3,971 | $ | 56 | $ | 3,517 | $ | 90 | ||||||||||||||
Commercial | 13,081 | 10,676 | 1,765 | 12,441 | 42 | 13,115 | 137 | |||||||||||||||||||||
Total mortgage loans on real estate | 17,675 | 14,339 | 2,073 | 16,412 | 98 | 16,632 | 227 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,900 | 1,749 | 111 | 1,860 | 71 | 1,885 | 43 | |||||||||||||||||||||
Home equity loans | 2,374 | 1,892 | 65 | 1,957 | 2 | 1,520 | 23 | |||||||||||||||||||||
Other | 3 | — | 3 | 3 | 3 | 17 | 2 | |||||||||||||||||||||
Total consumer loans | 4,277 | 3,641 | 179 | 3,820 | 76 | 3,422 | 68 | |||||||||||||||||||||
Commercial | 5,433 | 2,924 | 2,287 | 5,211 | 1,774 | 4,654 | 91 | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | 5 | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | 5 | — | |||||||||||||||||||||
Total | $ | 27,385 | $ | 20,904 | $ | 4,539 | $ | 25,443 | $ | 1,948 | $ | 24,713 | $ | 386 | ||||||||||||||
Impaired PNCI Loans – As of, or for the Twelve Months Ended, December 31, 2018 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 375 | $ | 334 | $ | — | $ | 334 | $ | — | $ | 529 | $ | 5 | ||||||||||||||
Commercial | 3,110 | 1,468 | — | 1,468 | — | 1,713 | 183 | |||||||||||||||||||||
Total mortgage loans on real estate | 3,485 | 1,802 | — | 1,802 | — | 2,242 | 188 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,027 | 587 | 367 | 954 | 127 | 1,120 | 18 | |||||||||||||||||||||
Home equity loans | 252 | 47 | 197 | 244 | 101 | 155 | — | |||||||||||||||||||||
Other | 106 | 21 | 85 | 106 | 11 | 114 | — | |||||||||||||||||||||
Total consumer loans | 1,385 | 655 | 649 | 1,304 | 239 | 1,389 | 18 | |||||||||||||||||||||
Commercial | 120 | 113 | 7 | 120 | 7 | 60 | 1 | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 4,990 | $ | 2,570 | $ | 656 | $ | 3,226 | $ | 246 | $ | 3,691 | $ | 207 | ||||||||||||||
Impaired Originated Loans – As of, or for the Six Months Ended, June 30, 2018 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 5,656 | $ | 3,947 | $ | 1,050 | $ | 4,997 | $ | 147 | $ | 4,600 | $ | 28 | ||||||||||||||
Commercial | 11,280 | 9,763 | 1,076 | 10,839 | 82 | 10,975 | 9 | |||||||||||||||||||||
Total mortgage loans on real estate | 16,936 | 13,710 | 2,126 | 15,836 | 229 | 15,575 | 37 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,244 | 1,108 | 106 | 1,214 | 29 | 1,315 | 3 | |||||||||||||||||||||
Home equity loans | 2,558 | 1,828 | 351 | 2,179 | 38 | 1,784 | 15 | |||||||||||||||||||||
Other | 3 | — | 3 | 3 | 3 | 3 | — | |||||||||||||||||||||
Total consumer loans | 3,805 | 2,936 | 460 | 3,396 | 70 | 3,102 | 18 | |||||||||||||||||||||
Commercial | 4,952 | 809 | 3,942 | 4,751 | 2,127 | 4,686 | 20 | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | 68 | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | 68 | — | |||||||||||||||||||||
Total | $ | 25,693 | $ | 17,455 | $ | 6,528 | $ | 23,983 | $ | 2,426 | $ | 23,431 | $ | 75 | ||||||||||||||
Impaired PNCI Loans – As of, or for the Six Months Ended, June 30, 2018 | ||||||||||||||||||||||||||||
(in thousands) | Unpaid principal balance | Recorded investment with no related allowance | Recorded investment with related allowance | Total recorded investment | Related Allowance | Average recorded investment | Interest income recognized | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | 1,417 | $ | 1,348 | $ | — | $ | 1,348 | $ | — | $ | 1,339 | $ | — | ||||||||||||||
Commercial | 323 | 323 | — | 323 | — | 161 | 9 | |||||||||||||||||||||
Total mortgage loans on real estate | 1,740 | 1,671 | — | 1,671 | — | 1,500 | 9 | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1,098 | 529 | 506 | 1,035 | 258 | 1,035 | 2 | |||||||||||||||||||||
Home equity loans | 293 | 36 | 242 | 278 | 154 | 281 | — | |||||||||||||||||||||
Other | 244 | — | 244 | 244 | 51 | 259 | — | |||||||||||||||||||||
Total consumer loans | 1,635 | 565 | 992 | 1,557 | 463 | 1,575 | 2 | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 3,375 | $ | 2,236 | $ | 992 | $ | 3,228 | $ | 463 | $ | 3,075 | $ | 11 | ||||||||||||||
At2019, December 31, 2017, $12,517,0002018, or June 30, 2018.
TDR Information for the Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
(dollars in thousands) | Number | Pre-mod outstanding principal balance | Post-mod outstanding principal balance | Financial impact due to TDR taken as additional provision | Number that defaulted during the period | Recorded investment of TDRs that defaulted during the period | Financial impact due to the default of previous TDR taken as charge- offs or additional provisions | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | — | $ | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||
Commercial | 4 | 1,326 | 1,324 | (308 | ) | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 4 | 1,326 | 1,324 | (308 | ) | — | — | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | 1 | 128 | — | |||||||||||||||||||||
Home equity loans | 1 | 478 | 478 | — | — | — | — | |||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 1 | 478 | 478 | — | 1 | 128 | — | |||||||||||||||||||||
Commercial | 2 | 203 | 203 | — | — | — | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 7 | $ | 2,007 | $ | 2,005 | $ | (308 | ) | 1 | $ | 128 | $ | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
TDR Information for the Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||||
(dollars in thousands) | Number | Pre-mod outstanding principal balance | Post-mod outstanding principal balance | Financial impact due to TDR taken as additional provision | Number that defaulted during the period | Recorded investment of TDRs that defaulted during the period | Financial impact due to the default of previous TDR taken as charge- offs or additional provisions | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | — | $ | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||
Commercial | 6 | 1,743 | 1,741 | (262 | ) | 1 | 169 | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 6 | 1,743 | 1,741 | (262 | ) | 1 | 169 | — | ||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1 | 133 | 138 | — | 1 | 128 | — | |||||||||||||||||||||
Home equity loans | 2 | 599 | 599 | — | — | — | — | |||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 3 | 732 | 737 | — | 1 | 128 | — | |||||||||||||||||||||
Commercial | 4 | 619 | 623 | (3 | ) | 4 | 340 | (2 | ) | |||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 13 | $ | 3,094 | $ | 3,101 | $ | (265 | ) | 6 | $ | 637 | $ | (2 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TDR Information for the Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
(dollars in thousands) | Number | Pre-mod outstanding principal balance | Post-mod outstanding principal balance | Financial impact due to TDR taken as additional provision | Number that defaulted during the period | Recorded investment of TDRs that defaulted during the period | Financial impact due to the default of previous TDR taken as charge- offs or additional provisions | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | $ | $ | $ | — | — | $ | — | $ | — | |||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total mortgage loans on real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1 | 65 | 68 | — | — | — | — | |||||||||||||||||||||
Home equity loans | 1 | 28 | 27 | 27 | — | — | — | |||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
Total consumer loans | 2 | 93 | 95 | 27 | — | — | — | |||||||||||||||||||||
Commercial | 4 | 1,754 | 1,722 | 2 | — | |||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | 6 | $ | 1,847 | $ | 1,817 | $ | 29 | — | $ | — | $ | — | ||||||||||||||||
TDR Information for the Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
(dollars in thousands) | Number | Pre-mod outstanding principal balance | Post-mod outstanding principal balance | Financial impact due to TDR taken as additional provision | Number that defaulted during the period | Recorded investment of TDRs that defaulted during the period | Financial impact due to the default of previous TDR taken as charge- offs or additional provisions | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | 1 | $ | 163 | $ | 162 | $ | — | — | $ | — | $ | — | ||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total mortgage loans on real estate | 1 | 163 | 162 | — | — | — | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1 | 65 | 68 | — | — | — | — | |||||||||||||||||||||
Home equity loans | 2 | 149 | 147 | 29 | — | — | — | |||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
Total consumer loans | 3 | 214 | 215 | 29 | — | — | — | |||||||||||||||||||||
Commercial | 6 | 1,768 | 1,737 | 2 | 1 | 7 | — | |||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | 10 | $ | 2,145 | $ | 2,114 | $ | 31 | 1 | $ | 7 | $ | — | ||||||||||||||||
TDR Information for the Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||
(dollars in thousands) | Number | Pre-mod outstanding principal balance | Post-mod outstanding principal balance | Financial impact due to TDR taken as additional provision | Number that defaulted during the period | Recorded investment of TDRs that defaulted during the period | Financial impact due to the default of previous TDR taken as charge- offs or additional provisions | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||
Commercial | 1 | 34 | 34 | 34 | — | — | — | |||||||||||||||||||||
Total mortgage loans on real estate | 1 | 34 | 34 | 34 | — | — | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | ||||||||||||||||||||||||
Home equity loans | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
Total consumer loans | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | 2 | 416 | 421 | (2 | ) | 4 | 340 | (2 | ) | |||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | 3 | $ | 450 | $ | 455 | $ | 32 | 4 | $ | 340 | $ | (2 | ) | |||||||||||||||
The following tables show certain information regarding TDRs that occurred during the periods indicated:
TDR Information for the Three Months Ended September 30, 2017 | ||||||||||||||||||||||||||||
(dollars in thousands) | Number | Pre-mod outstanding principal balance | Post-mod outstanding principal balance | Financial impact due to TDR taken as additional provision | Number that defaulted during the period | Recorded investment of TDRs that defaulted during the period | Financial impact due to the default of previous TDR taken as charge- offs or additional provisions | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | 1 | $ | 939 | $ | 939 | $ | 169 | 1 | $ | 99 | $ | — | ||||||||||||||||
Commercial | 4 | 2,886 | 2,886 | 14 | 1 | 219 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 5 | 3,825 | 3,825 | 183 | 2 | 318 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | — | |||||||||||||||||||||
Home equity loans | 1 | 252 | 252 | — | — | — | — | |||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 1 | 252 | 252 | — | — | — | — | |||||||||||||||||||||
Commercial | 8 | 1,109 | 1,109 | 28 | — | |||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | 1 | 144 | 144 | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | 1 | 144 | 144 | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 15 | $ | 5,330 | $ | 5,330 | $ | 211 | 2 | $ | 318 | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
TDR Information for the Nine Months Ended September 30, 2017 | ||||||||||||||||||||||||||||
(dollars in thousands) | Number | Pre-mod outstanding principal balance | Post-mod outstanding principal balance | Financial impact due to TDR taken as additional provision | Number that defaulted during the period | Recorded investment of TDRs that defaulted during the period | Financial impact due to the default of previous TDR taken as charge- offs or additional provisions | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential1-4 family | 1 | $ | 939 | $ | 939 | $ | 169 | 2 | $ | 223 | $ | — | ||||||||||||||||
Commercial | 7 | 3,509 | 3,482 | (111 | ) | 1 | 219 | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total mortgage loans on real estate | 8 | 4,448 | 4,421 | 58 | 3 | 442 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 3 | 187 | 187 | 27 | — | — | — | |||||||||||||||||||||
Home equity loans | 1 | 252 | 252 | — | — | — | — | |||||||||||||||||||||
Other | 1 | 14 | 14 | 11 | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total consumer loans | 5 | 453 | 453 | 38 | — | — | — | |||||||||||||||||||||
Commercial | 11 | 1,854 | 1,748 | 37 | — | |||||||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | 1 | 144 | 144 | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total construction | 1 | 144 | 144 | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 25 | $ | 6,899 | $ | 6,766 | $ | 133 | 3 | $ | 442 | $ | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TDR Information for the Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||
(dollars in thousands) | Number | Pre-mod outstanding principal balance | Post-mod outstanding principal balance | Financial impact due to TDR taken as additional provision | Number that defaulted during the period | Recorded investment of TDRs that defaulted during the period | Financial impact due to the default of previous TDR taken as charge- offs or additional provisions | |||||||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||||||||||||||
Residential 1-4 family | — | $ | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||
Commercial | 2 | 417 | 417 | 46 | 1 | 169 | — | |||||||||||||||||||||
Total mortgage loans on real estate | 2 | 417 | 417 | 46 | 1 | 169 | — | |||||||||||||||||||||
Consumer: | ||||||||||||||||||||||||||||
Home equity lines of credit | 1 | 133 | 138 | — | — | — | — | |||||||||||||||||||||
Home equity loans | 1 | 121 | 121 | — | — | — | — | |||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
Total consumer loans | 2 | 254 | 259 | — | — | — | — | |||||||||||||||||||||
Commercial | 2 | 416 | 421 | (2 | ) | 4 | 340 | (2 | ) | |||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Total construction | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | 6 | $ | 1,087 | $ | 1,097 | $ | 44 | 5 | $ | 509 | $ | (2 | ) | |||||||||||||||
A summaryLeases
Nine months ended September 30, | ||||||||
2018 | 2017 | |||||||
Beginning balance, net | $ | 3,226 | $ | 3,986 | ||||
Additions/transfers from loans | 536 | 726 | ||||||
Dispositions/sales | (1,841 | ) | (1,479 | ) | ||||
Valuation adjustments | (89 | ) | (162 | ) | ||||
|
|
|
| |||||
Ending balance, net | $ | 1,832 | $ | 3,071 | ||||
|
|
|
| |||||
Ending valuation allowance | $ | (143 | ) | $ | (248 | ) | ||
Ending number of foreclosed assets | 11 | 11 | ||||||
Proceeds from sale of foreclosed assets | $ | 2,206 | $ | 1,787 | ||||
Gain on sale of foreclosed assets | $ | 390 | $ | 308 |
As of September 30, 2018, $1,269,000 of foreclosed residential real estate properties, all of which the Company has obtained physical possessionis lessee of real estate property for branches, ATM locations, and general administration and operations. The Company elected not to include short-term leases (i.e. leases with initial terms of twelve months or less) within the ROUA and lease liability. Known or determinable adjustments to the required minimum future lease payments were included in the calculation of the Company’s ROUA and lease liability. Adjustments to the required minimum future lease payments that are variable and will not be determinable until a future period, such as changes in the consumer price index, are included as variable lease costs. Additionally, expected variable payments for common area maintenance, taxes and insurance were unknown and not determinable at lease commencement and therefore, were not included in foreclosed assets. the determination of the Company’s ROUA or lease liability.
(in thousands) | Three months ended June 30, 2019 | Six months ended June 30, 2019 | ||||||
Operating lease cost | $ | 1,310 | $ | 2,621 | ||||
Short-term lease cost | 58 | 129 | ||||||
Variable lease cost | (17 | ) | (22 | ) | ||||
Sublease income | (32 | ) | (66 | ) | ||||
Total lease cost | $ | 1,319 | $ | 2,662 | ||||
(in thousands) | Three months ended June 30, 2019 | Six months ended June 30, 2019 | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows for operating leases | $ | 1,229 | $ | 2,447 | ||||
ROUA obtained in exchange for operating lease liabilities | $ | 156 | $ | 32,162 |
Weighted-average remaining lease term | 9.5 years | |||
Weighted-average discount rate | 3.18 | % |
as follows:
(in thousands) | ||||
Periods ending December 31, | ||||
2019 | $ | 2,352 | ||
2020 | 4,387 | |||
2021 | 4,235 | |||
2022 | 3,896 | |||
2023 | 3,216 | |||
Thereafter | 16,682 | |||
34,768 | ||||
Discount for present value of expected cash flows | (5,334 | ) | ||
Lease liability at June 30, 2019 | $ | 29,434 | ||
Premises and equipment were comprised of:
September 30, | December 31, | |||||||
2018 | 2017 | |||||||
(In thousands) | ||||||||
Land & land improvements | $ | 28,958 | $ | 9,959 | ||||
Buildings | 64,178 | 50,340 | ||||||
Furniture and equipment | 44,271 | 35,939 | ||||||
|
|
|
| |||||
137,407 | 96,238 | |||||||
Less: Accumulated depreciation | (49,073 | ) | (40,644 | ) | ||||
|
|
|
| |||||
88,334 | 55,594 | |||||||
Construction in progress | 956 | 2,148 | ||||||
|
|
|
| |||||
Total premises and equipment | $ | 89,290 | $ | 57,742 | ||||
|
|
|
|
Depreciation expense for premises and equipment amounted to $1,685,000 and $1,520,000 for the three months ended September 30, 2018 and 2017, respectively, and $4,442,000 and $4,224,000 for the nine months ended September 30, 2018 and 2017, respectively.
Note 8 - Goodwill and Other Intangible Assets
The following table summarizes the Company’s goodwill intangible as of the dates indicated:
September 30, | December 31, | |||||||||||||||
(in thousands) | 2018 | Additions | Reductions | 2017 | ||||||||||||
Goodwill | $ | 220,972 | 156,661 | — | $ | 64,311 |
The following table summarizes the Company’s core deposit intangibles (CDI) as of the dates indicated:
September 30, | Reductions/ | December 31, | ||||||||||||||
(in thousands) | 2018 | Additions | Amortization | 2017 | ||||||||||||
Core deposit intangibles | $ | 37,163 | 27,605 | — | $ | 9,558 | ||||||||||
Accumulated amortization | (6,452 | ) | — | $ | (2,068 | ) | (4,384 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Core deposit intangibles, net | $ | 30,711 | 27,605 | $ | (2,068 | ) | $ | 5,174 | ||||||||
|
|
|
|
|
|
|
|
The Company recorded additions to its CDI of $27,605,000 in conjunction with the acquisition of FNB Bancorp as of July 6, 2018. The following table summarizes the Company’s remaining estimated core deposit intangible amortization at September 30, 2018 (in thousands):
Estimated Core Deposit | ||||
Years Ended | Intangible Amortization | |||
2018 | $ | 1,431 | ||
2019 | 5,723 | |||
2020 | 5,723 | |||
2021 | 5,465 | |||
2022 | 4,776 | |||
Thereafter | 7,593 |
Note 9 – Other Assets
Other assets were comprised of (in thousands):
September 30, 2018 | December 31, 2017 | |||||||
Deferred tax asset, net | $ | 31,963 | $ | 21,697 | ||||
Investment in low income housing tax credit funds | 23,572 | 16,854 | ||||||
Prepaid expense | 3,420 | 4,111 | ||||||
Tax refund receivable | 2,836 | 4,754 | ||||||
Capital trusts | 1,712 | 1,706 | ||||||
Software | 762 | 1,126 | ||||||
Life insurance proceeds receivable | — | 2,242 | ||||||
Miscellaneous other assets | 6,332 | 2,561 | ||||||
|
|
|
| |||||
Total other assets | $ | 70,597 | $ | 55,051 | ||||
|
|
|
|
Note 10 - Deposits
September 30, 2018 | December 31, 2017 | |||||||
Noninterest-bearing demand | $ | 1,710,505 | $ | 1,368,218 | ||||
Interest-bearing demand | 1,152,705 | 971,459 | ||||||
Savings | 1,801,087 | 1,364,518 | ||||||
Time certificates, over $250,000 | 140,805 | 73,596 | ||||||
Other time certificates | 288,015 | 231,340 | ||||||
|
|
|
| |||||
Total deposits | $ | 5,093,117 | $ | 4,009,131 | ||||
|
|
|
|
June 30, 2019 | December 31, 2018 | |||||||
Noninterest-bearing demand | $ | 1,780,339 | $ | 1,760,580 | ||||
Interest-bearing demand | 1,263,635 | 1,252,366 | ||||||
Savings | 1,856,749 | 1,921,324 | ||||||
Time certificates, $250,000 or more | 130,061 | 132,429 | ||||||
Other time certificates | 311,389 | 299,767 | ||||||
Total deposits | $ | 5,342,173 | $ | 5,366,466 | ||||
Other liabilities were comprised of (in thousands):
September 30, 2018 | December 31, 2017 | |||||||
Pension liability | $ | 37,789 | $ | 28,472 | ||||
Low income housing tax credit fund commitments | 9,146 | 8,554 | ||||||
Deferred compensation | 9,450 | 6,605 | ||||||
Accrued salaries and benefits expense | 8,990 | 6,619 | ||||||
Joint beneficiary agreements | 3,558 | 3,365 | ||||||
Loan escrow and servicing payable | 2,821 | 1,958 | ||||||
Deferred revenue | 1,978 | 1,228 | ||||||
Litigation contingency | — | 1,450 | ||||||
Miscellaneous other liabilities | 8,345 | 8,171 | ||||||
|
|
|
| |||||
Total other liabilities | $ | 82,077 | $ | 66,422 | ||||
|
|
|
|
Note 128 - Commitments and Contingencies
At September 30, 2018, future minimum commitments undernon-cancelable operating leases with initial or remaining terms of one year or more are as follows:
Operating Leases | ||||
(in thousands) | ||||
2018 | $ | 1,179 | ||
2019 | 4,478 | |||
2020 | 3,774 | |||
2021 | 3,372 | |||
2022 | 2,549 | |||
Thereafter | 4,097 | |||
|
| |||
Future minimum lease payments | $ | 19,449 | ||
|
|
(in thousands) | September 30, 2018 | December 31, 2017 | ||||||
Financial instruments whose amounts represent risk: | ||||||||
Commitments to extend credit: | ||||||||
Commercial loans | $ | 310,844 | $ | 257,220 | ||||
Consumer loans | 481,837 | 422,958 | ||||||
Real estate mortgage loans | 149,003 | 66,267 | ||||||
Real estate construction loans | 283,858 | 187,097 | ||||||
Standby letters of credit | 11,277 | 13,075 | ||||||
Deposit account overdraft privilege | 107,956 | 98,260 |
(in thousands) | June 30, 2019 | December 31, 2018 | ||||||
Financial instruments whose amounts represent risk: | ||||||||
Commitments to extend credit: | ||||||||
Commercial loans | $ | 311,850 | $ | 306,191 | ||||
Consumer loans | 506,448 | 496,575 | ||||||
Real estate mortgage loans | 173,451 | 140,292 | ||||||
Real estate construction loans | 210,143 | 248,996 | ||||||
Standby letters of credit | 11,338 | 11,346 | ||||||
Deposit account overdraft privilege | 108,941 | 111,956 |
During the six month periods ended June 30, 2019 and 2018, there were no shares of common stock repurchased under this plan.
During the nine months ended September 30, 2018 and 2017 employees tendered 28,850 and 107,390 shares, respectively, of the Company’s common stock with market value of $1,124,000 and $3,854,000, respectively, in lieu of cash to exercise options to purchase shares of the Company’s stock and to satisfy tax withholding requirements related to such exercises and the release of restricted stock units (RSUs) as permitted by the Company’s shareholder-approved equity compensation plans. The tendered shares were retired. The market value of tendered shares is the last market trade price at closing on the day an option is exercised. Stock repurchased under equity incentive plans are not included in the total of stock repurchased under the stock repurchase plan announced on August 21, 2007.
Number of Shares | Option Price per Share | Weighted Average Exercise Price | ||||||||||
Outstanding at December 31, 2017 | 446,400 | $ | 12.63 to $23.21 | $ | 16.84 | |||||||
Options granted | — | — to — | — | |||||||||
Options exercised | (27,400 | ) | $ | 15.34 to $23.21 | $ | 17.33 | ||||||
Options forfeited | (3,000 | ) | $ | 23.21 to $23.21 | $ | 23.21 | ||||||
|
| |||||||||||
Outstanding at September 30, 2018 | 416,000 | $ | 12.63 to $23.21 | $ | 16.77 | |||||||
|
|
Number of Shares | Option Price per Share | Weighted Average Exercise Price | ||||||||||
Outstanding at December 31, 2018 | 343,000 | $ 12.63 to $23.21 | $ | 16.67 | ||||||||
Options granted | — | — to — | — | |||||||||
Options exercised | (157,000 | ) | $12.63 to $19.46 | 15.92 | ||||||||
Options forfeited | — | — to — | — | |||||||||
Outstanding at June 30, 2019 | 186,000 | $14.54 to $23.21 | $ | 17.45 |
Currently Exercisable | Currently Not Exercisable | Total Outstanding | ||||||||||
Number of options | 413,000 | 3,000 | 416,000 | |||||||||
Weighted average exercise price | $ | 16.72 | $ | 23.21 | $ | 16.77 | ||||||
Intrinsic value (in thousands) | $ | 9,045 | $ | 46 | $ | 9,091 | ||||||
Weighted average remaining contractual term (yrs.) | 3.2 | 6.0 | 3.2 |
2019:
Currently Exercisable | Currently Not Exercisable | Total Outstanding | ||||||||||
Number of options | 185,250 | 750 | 186,000 | |||||||||
Weighted average exercise price | $ | 17.43 | $ | 23.21 | $ | 17.45 | ||||||
Intrinsic value (in thousands) | $ | 3,774 | $ | 11 | $ | 3,785 | ||||||
Weighted average remaining contractual term (yrs.) | 3.1 | 5.3 | 3.1 |
2019.
Service Condition Vesting RSUs | Market Plus Service Condition Vesting RSUs | |||||||||||||||
Number of RSUs | Weighted Average Fair Value on Date of Grant | Number of RSUs | Weighted Average Fair Value on Date of Grant | |||||||||||||
Outstanding at December 31, 2017 | 68,457 | 52,829 | ||||||||||||||
RSUs granted | 38,605 | $ | 39.08 | 16,939 | $ | 36.40 | ||||||||||
Additional market plus service condition RSUs vested | — | 8,506 | ||||||||||||||
RSUs added through dividend credits | 806 | — | ||||||||||||||
RSUs released through vesting | (32,516 | ) | (25,512 | ) | ||||||||||||
RSUs forfeited/expired | (4,744 | ) | (5,478 | ) | ||||||||||||
|
|
|
| |||||||||||||
Outstanding at September 30, 2018 | 70,608 | 47,284 | ||||||||||||||
|
|
|
|
Service Condition Vesting RSUs | Market Plus Service Condition Vesting RSUs | |||||||
Outstanding at December 31, 2018 | 66,947 | 45,536 | ||||||
RSUs granted | 35,272 | 22,898 | ||||||
RSUs added through dividend and performance credits | 519 | 7,414 | ||||||
RSUs released | (26,211 | ) | (22,237 | ) | ||||
RSUs forfeited/expired | — | — | ||||||
Outstanding at June 30, 2019 | 76,527 | 53,611 | ||||||
2019.
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
ATM and interchange fees | $ | 4,590 | $ | 4,209 | $ | 13,335 | $ | 12,472 | ||||||||
Service charges on deposit accounts | 4,015 | 4,160 | 11,407 | 12,102 | ||||||||||||
Other service fees | 676 | 917 | 2,020 | 2,521 | ||||||||||||
Mortgage banking service fees | 499 | 514 | 1,527 | 1,561 | ||||||||||||
Change in value of mortgage servicing rights | (37 | ) | (325 | ) | 38 | (795 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total service charges and fees | 9,743 | 9,475 | 28,327 | 27,861 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Commissions on sale ofnon-deposit investment products | 728 | 672 | 2,414 | 1,984 | ||||||||||||
Increase in cash value of life insurance | 732 | 732 | 1,996 | 2,043 | ||||||||||||
Gain on sale of loans | 539 | 606 | 1,831 | 2,293 | ||||||||||||
Lease brokerage income | 186 | 234 | 514 | 601 | ||||||||||||
Gain on sale of foreclosed assets | 2 | 37 | 390 | 308 | ||||||||||||
Sale of customer checks | 88 | 89 | 327 | 287 | ||||||||||||
Gain on sale of investment securities | 207 | 961 | 207 | 961 | ||||||||||||
Loss on disposal of fixed assets | (152 | ) | (33 | ) | (206 | ) | (61 | ) | ||||||||
Loss on marketable equity securities | (22 | ) | — | (92 | ) | — | ||||||||||
Other | 135 | 157 | 942 | 1,266 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total other noninterest income | 2,443 | 3,455 | 8,323 | 9,682 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest income | $ | 12,186 | $ | 12,930 | $ | 36,650 | $ | 37,543 | ||||||||
|
|
|
|
|
|
|
|
indicated:
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
ATM and interchange fees | $ | 5,404 | $ | 4,510 | $ | 9,985 | $ | 8,745 | ||||||||
Service charges on deposit accounts | 4,182 | 3,613 | 8,062 | 7,392 | ||||||||||||
Other service fees | 619 | 630 | 1,390 | 1,344 | ||||||||||||
Mortgage banking service fees | 475 | 511 | 958 | 1,028 | ||||||||||||
Change in value of mortgage servicing rights | (552 | ) | (36 | ) | (1,197 | ) | 75 | |||||||||
Total service charges and fees | 10,128 | 9,228 | 19,198 | 18,584 | ||||||||||||
Increase in cash value of life insurance | 746 | 656 | 1,521 | 1,264 | ||||||||||||
Asset management and commission income | 739 | 810 | 1,381 | 1,686 | ||||||||||||
Gain on sale of loans | 575 | 666 | 987 | 1,292 | ||||||||||||
Lease brokerage income | 239 | 200 | 459 | 328 | ||||||||||||
Sale of customer checks | 135 | 138 | 275 | 239 | ||||||||||||
Gain on sale of foreclosed assets | 197 | 17 | 296 | 388 | ||||||||||||
Gain (loss) on marketable equity securities | 42 | (23 | ) | 78 | (70 | ) | ||||||||||
Loss on disposal of fixed assets | (42 | ) | (41 | ) | (80 | ) | (54 | ) | ||||||||
Other | 819 | 523 | 1,327 | 807 | ||||||||||||
Total other noninterest income | 3,450 | 2,946 | 6,244 | 5,880 | ||||||||||||
Total noninterest income | $ | 13,578 | $ | 12,174 | $ | 25,442 | $ | 24,464 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Base salaries, net of deferred loan origination costs | $ | 17,051 | $ | 13,600 | $ | 45,442 | $ | 40,647 | ||||||||
Incentive compensation | 3,223 | 2,609 | 7,834 | 6,980 | ||||||||||||
Benefits and other compensation costs | 5,549 | 4,724 | 15,652 | 14,693 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total salaries and benefits expense | 25,823 | 20,933 | 68,928 | 62,320 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Occupancy | 3,173 | 2,799 | 8,574 | 8,196 | ||||||||||||
Data processing and software | 2,786 | 2,495 | 7,979 | 7,332 | ||||||||||||
Merger and acquisition expense | 4,150 | — | 5,227 | — | ||||||||||||
Equipment | 1,750 | 1,816 | 4,938 | 5,344 | ||||||||||||
ATM and POS network charges | 1,195 | 1,425 | 3,858 | 3,353 | ||||||||||||
Advertising | 1,341 | 1,039 | 3,214 | 3,173 | ||||||||||||
Professional fees | 929 | 901 | 2,475 | 2,357 | ||||||||||||
Telecommunications | 819 | 716 | 2,201 | 2,027 | ||||||||||||
Regulatory assessments and insurance | 537 | 427 | 1,384 | 1,252 | ||||||||||||
Intangible amortization | 1,390 | 339 | 2,068 | 1,050 | ||||||||||||
Postage | 275 | 325 | 934 | 1,058 | ||||||||||||
Courier service | 278 | 235 | 769 | 752 | ||||||||||||
Operational losses | 217 | 301 | 763 | 1,166 | ||||||||||||
Foreclosed assets expense | 93 | 41 | 297 | 117 | ||||||||||||
Provision for (reversal of) foreclosed asset losses | (1 | ) | 134 | 89 | 162 | |||||||||||
Other miscellaneous expense | 2,623 | 3,296 | 9,712 | 9,289 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total other noninterest expense | �� | 21,555 | 16,289 | 54,482 | 46,628 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest expense | $ | 47,378 | $ | 37,222 | $ | 123,410 | $ | 108,948 | ||||||||
|
|
|
|
|
|
|
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Base salaries, net of deferred loan origination costs | $ | 17,211 | $ | 14,429 | $ | 33,968 | $ | 28,391 | ||||||||
Incentive compensation | 3,706 | 2,159 | 6,273 | 4,611 | ||||||||||||
Benefits and other compensation costs | 5,802 | 4,865 | 11,606 | 10,103 | ||||||||||||
Total salaries and benefits expense | 26,719 | 21,453 | 51,847 | 43,105 | ||||||||||||
Occupancy | 3,738 | 2,720 | 7,512 | 5,401 | ||||||||||||
Data processing and software | 3,354 | 2,679 | 6,703 | 5,193 | ||||||||||||
Equipment | 1,752 | 1,637 | 3,619 | 3,188 | ||||||||||||
Intangible amortization | 1,431 | 339 | 2,862 | 678 | ||||||||||||
Advertising | 1,533 | 1,035 | 2,864 | 1,873 | ||||||||||||
ATM and POS network charges | 1,270 | 1,437 | 2,593 | 2,663 | ||||||||||||
Professional fees | 1,057 | 774 | 1,896 | 1,546 | ||||||||||||
Telecommunications | 773 | 681 | 1,570 | 1,382 | ||||||||||||
Regulatory assessments and insurance | 490 | 417 | 1,001 | 847 | ||||||||||||
Merger and acquisition expense | — | 601 | — | 1,077 | ||||||||||||
Postage | 315 | 301 | 625 | 659 | ||||||||||||
Operational losses | 226 | 252 | 451 | 546 | ||||||||||||
Courier service | 412 | 224 | 682 | 491 | ||||||||||||
Other miscellaneous expense | 3,782 | 3,320 | 8,140 | 7,383 | ||||||||||||
Total other noninterest expense | 20,133 | 16,417 | 40,518 | 32,927 | ||||||||||||
Total noninterest expense | $ | 46,852 | $ | 37,870 | $ | 92,365 | $ | 76,032 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 16,170 | $ | 11,897 | $ | 45,109 | $ | 37,565 | ||||||||
Average number of common shares outstanding | 30,011 | 22,932 | 25,317 | 22,901 | ||||||||||||
Effect of dilutive stock options and restricted stock | 280 | 312 | 300 | 338 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Average number of common shares outstanding used to calculate diluted earnings per share | 30,291 | 23,244 | 25,617 | 23,239 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Options excluded from diluted earnings per share because the effect of these options was antidilutive | 10,000 | — | 10,000 | — |
Three months ended June 30, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Net income | $ | 23,061 | $ | 15,029 | ||||
Average number of common shares outstanding | 30,458 | 22,983 | ||||||
Effect of dilutive stock options and restricted stock | 185 | 293 | ||||||
Average number of common shares outstanding used to calculate diluted earnings per share | 30,643 | 23,276 | ||||||
Options excluded from diluted earnings per share because the effect of these options was antidilutive | — | — |
Six months ended June 30, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Net income | $ | 45,787 | $ | 28,939 | ||||
Average number of common shares outstanding | 30,441 | 22,970 | ||||||
Effect of dilutive stock options and restricted stock | 209 | 310 | ||||||
Average number of common shares outstanding used to calculate diluted earnings per share | 30,650 | 23,280 | ||||||
Options excluded from diluted earnings per share because the effect of these options was antidilutive | — | — |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Unrealized holding gains (losses) on available for sale securities before reclassifications | $ | 9,553 | $ | (5,676 | ) | $ | 22,263 | $ | (20,941 | ) | ||||||
Amounts reclassified out of accumulated other comprehensive income: | ||||||||||||||||
Adoption ASU 2016-01 | — | — | — | 62 | ||||||||||||
Adoption ASU 2018-02 | — | — | — | (425 | ) | |||||||||||
Total amounts reclassified out of accumulated other comprehensive income | — | — | — | (363 | ) | |||||||||||
Unrealized holding gains (losses) on available for sale securities after reclassifications | 9,553 | (5,676 | ) | 22,263 | (21,304 | ) | ||||||||||
Tax effect | (2,824 | ) | 1,678 | (6,582 | ) | 6,280 | ||||||||||
Unrealized holding gains (losses) on available for sale securities, net of tax | 6,729 | (3,998 | ) | 15,681 | (15,024 | ) | ||||||||||
Change in unfunded status of the supplemental retirement plans before reclassifications | (89 | ) | — | (177 | ) | 668 | ||||||||||
Amounts reclassified out of accumulated other comprehensive income: | ||||||||||||||||
Amortization of prior service cost | (13 | ) | (13 | ) | (27 | ) | (27 | ) | ||||||||
Amortization of actuarial losses | 102 | 127 | 204 | 254 | ||||||||||||
Adoption ASU 2018-02 | — | — | — | (668 | ) | |||||||||||
Total amounts reclassified out of accumulated other comprehensive income | 89 | 114 | 177 | (441 | ) | |||||||||||
Change in unfunded status of the supplemental retirement plans after reclassifications | — | 114 | — | 227 | ||||||||||||
Tax effect | — | (34 | ) | — | (67 | ) | ||||||||||
Change in unfunded status of the supplemental retirement plans, net of tax | — | 80 | — | 160 | ||||||||||||
Total other comprehensive income (loss) | $ | 6,729 | $ | (3,918 | ) | $ | 15,681 | $ | (14,864 | ) | ||||||
September 30, | December 31, | |||||||
(in thousands) | 2018 | 2017 | ||||||
Net unrealized loss on available for sale securities | $ | (33,051 | ) | (3,409 | ) | |||
Tax effect | 9,771 | 1,433 | ||||||
|
|
|
| |||||
Unrealized holding loss on available for sale securities, net of tax | (23,280 | ) | (1,976 | ) | ||||
|
|
|
| |||||
Unfunded status of the supplemental retirement plans | (5,010 | ) | (5,352 | ) | ||||
Tax effect | 1,481 | 2,250 | ||||||
|
|
|
| |||||
Unfunded status of the supplemental retirement plans, net of tax | (3,529 | ) | (3,102 | ) | ||||
|
|
|
| |||||
Joint beneficiary agreement liability | (150 | ) | (150 | ) | ||||
Tax effect | — | — | ||||||
|
|
|
| |||||
Joint beneficiary agreement liability, net of tax | (150 | ) | (150 | ) | ||||
|
|
|
| |||||
Accumulated other comprehensive loss | $ | (26,959 | ) | $ | (5,228 | ) | ||
|
|
|
|
June 30, | December 31, | |||||||
(in thousands) | 2019 | 2018 | ||||||
Net unrealized loss on available for sale securities | $ | 1,289 | $ | (20,974 | ) | |||
Tax effect | (381 | ) | 6,201 | |||||
Unrealized holding loss on available for sale securities, net of tax | 908 | (14,773 | ) | |||||
Unfunded status of the supplemental retirement plans | (4,802 | ) | (4,802 | ) | ||||
Tax effect | 1,420 | 1,420 | ||||||
Unfunded status of the supplemental retirement plans, net of tax | (3,382 | ) | (3,382 | ) | ||||
Joint beneficiary agreement liability | 276 | 276 | ||||||
Tax effect | — | — | ||||||
Joint beneficiary agreement liability, net of tax | 276 | 276 | ||||||
Accumulated other comprehensive loss | $ | (2,198 | ) | $ | (17,879 | ) | ||
The components
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Fair value at September 30, 2018 | ||||||||||||||||
Marketable equity securities | $ | 2,846 | $ | 2,846 | $ | — | $ | — | ||||||||
Debt securities available for sale: | ||||||||||||||||
Obligations of U.S. government agencies | 638,876 | — | 638,876 | — | ||||||||||||
Obligations of states and political subdivisions | 123,420 | — | 123,420 | — | ||||||||||||
Corporate bonds | 4,431 | — | 4,431 | — | ||||||||||||
Asset backed securities | 289,233 | — | 289,233 | — | ||||||||||||
Loans held for sale | 3,824 | — | 3,824 | — | ||||||||||||
Mortgage servicing rights | 7,122 | — | — | 7,122 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value | $ | 1,069,752 | $ | 2,846 | $ | 1,059,784 | $ | 7,122 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Fair value at December 31, 2017 | ||||||||||||||||
Marketable equity securities | $ | 2,938 | $ | 2,938 | $ | — | $ | — | ||||||||
Debt securities available for sale: | ||||||||||||||||
Obligations of U.S. government agencies | 604,789 | — | 604,789 | — | ||||||||||||
Obligations of states and political subdivisions | 123,156 | — | 123,156 | — | ||||||||||||
Loans held for sale | 4,616 | — | 4,616 | — | ||||||||||||
Mortgage servicing rights | 6,687 | — | — | 6,687 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets measured at fair value | $ | 742,186 | $ | 2,938 | $ | 732,561 | $ | 6,687 | ||||||||
|
|
|
|
|
|
|
|
Fair value at June 30, 2019 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Marketable equity securities | $ | 2,952 | $ | 2,952 | $ | — | $ | — | ||||||||
Debt securities available for sale: | ||||||||||||||||
Obligations of U.S. government corporations and agencies | 630,911 | — | 630,911 | — | ||||||||||||
Obligations of states and political subdivisions | 125,980 | — | 125,980 | — | ||||||||||||
Corporate bonds | 4,521 | — | 4,521 | — | ||||||||||||
Asset backed securities | 372,582 | — | 372,582 | — | ||||||||||||
Loans held for sale | 5,875 | — | 5,875 | — | ||||||||||||
Mortgage servicing rights | 6,229 | — | — | 6,229 | ||||||||||||
Total assets measured at fair value | $ | 1,149,050 | $ | 2,952 | $ | 1,139,869 | $ | 6,229 | ||||||||
Fair value at December 31, 2018 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Marketable equity securities | $ | 2,874 | $ | 2,874 | $ | — | $ | — | ||||||||
Debt securities available for sale: | ||||||||||||||||
Obligations of U.S. government corporations and agencies | 629,981 | — | 629,981 | — | ||||||||||||
Obligations of states and political subdivisions | 126,072 | — | 126,072 | — | ||||||||||||
Corporate bonds | 4,478 | — | 4,478 | — | ||||||||||||
Asset backed securities | 354,505 | — | 354,505 | — | ||||||||||||
Loans held for sale | 3,687 | — | 3,687 | — | ||||||||||||
Mortgage servicing rights | 7,098 | — | — | 7,098 | ||||||||||||
Total assets measured at fair value | $ | 1,128,695 | $ | 2,874 | $ | 1,118,723 | $ | 7,098 | ||||||||
Beginning Balance | Transfers into (out of) Level 3 | Change Included in Earnings | Issuances | Ending Balance | ||||||||||||||||
Three months ended September 30, | ||||||||||||||||||||
2018: Mortgage servicing rights | $ | 7,021 | — | $ | (37 | ) | $ | 138 | $ | 7,122 | ||||||||||
2017: Mortgage servicing rights | $ | 6,596 | — | $ | (325 | ) | $ | 148 | $ | 6,419 | ||||||||||
Beginning Balance | Transfers into (out of) Level 3 | Change Included in Earnings | Issuances | Ending Balance | ||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||
2018: Mortgage servicing rights | $ | 6,687 | — | $ | 38 | $ | 397 | $ | 7,122 | |||||||||||
2017: Mortgage servicing rights | $ | 6,595 | — | $ | (795 | ) | $ | 619 | $ | 6,419 |
Transfers | Change | |||||||||||||||||||
Beginning | into (out of) | Included | Ending | |||||||||||||||||
Three months ended June 30, | Balance | Level 3 | in Earnings | Issuances | Balance | |||||||||||||||
2019: Mortgage servicing rights | $ | 6,572 | — | $ | (552 | ) | $ | 209 | $ | 6,229 | ||||||||||
2018: Mortgage servicing rights | $ | 6,953 | — | $ | (36 | ) | $ | 104 | $ | 7,021 |
Six months ended June 30, | Beginning Balance | Transfers into (out of) Level 3 | Change Included in Earnings | Issuances | Ending Balance | |||||||||||||||
2019: Mortgage servicing rights | $ | 7,098 | — | $ | (1,197 | ) | $ | 328 | $ | 6,229 | ||||||||||
2018: Mortgage servicing rights | $ | 6,687 | — | $ | 75 | $ | 259 | $ | 7,021 |
Fair Value | Valuation | Unobservable | Range, Weighted | |||||||
(in thousands) | Technique | Inputs | Average | |||||||
Mortgage Servicing Rights | $ | 7,122 | Discounted cash flow | Constant prepayment rate | 4.8%-33%, 7.3% | |||||
Discount rate | 12%, 12% |
The following table presents quantitative information about recurring Level 3 fair value measurements at2019 and December 31, 2017:
Fair Value | Valuation | Unobservable | Range, Weighted | |||||||
(in thousands) | Technique | Inputs | Average | |||||||
Mortgage Servicing Rights | $ | 6,687 | Discounted cash flow | Constant prepayment rate | 6.2%-22.0%, 8.9% | |||||
Discount rate | 13.0%-15.0%, 13.0% |
2018:
Fair Value | Valuation | Unobservable | Range, Weighted | |||||||||||||
As of June 30, 2019: | (in thousands) | Technique | Inputs | Average | ||||||||||||
Mortgage Servicing Rights | $ | 6,229 | Discounted cash flow | Constant prepayment rate | 6.9% - 39.0%; 10.5 | % | ||||||||||
Discount rate | 10% - 14%;12 | % | ||||||||||||||
As of December 31, 2018: | ||||||||||||||||
Mortgage Servicing Rights | $ | 7,098 | Discounted cash flow | Constant prepayment rate | 5.0% - 27.3%; 7.6 | % | ||||||||||
Discount rate | 12% - 13%;12 | % |
Total | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | ||||||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||||||
Fair value: | ||||||||||||||||||||
Impaired Originated & PNCI loans | $ | 445 | — | — | $ | 445 | $ | (808 | ) | |||||||||||
Foreclosed assets | 863 | — | — | 863 | (23 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets measured at fair value | $ | 1,308 | — | — | $ | 1,308 | $ | (831 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | ||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||||||
Fair value: | ||||||||||||||||||||
Impaired Originated & PNCI loans | $ | 2,767 | — | — | $ | 2,767 | $ | (1,452 | ) | |||||||||||
Foreclosed assets | 2,217 | — | — | 2,217 | (135 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets measured at fair value | $ | 4,984 | — | — | $ | 4,984 | $ | (1,587 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | ||||||||||||||||
Nine months ended September 30, 2017 | ||||||||||||||||||||
Fair value: | ||||||||||||||||||||
Impaired Originated & PNCI loans | $ | 1,026 | — | — | $ | 1,026 | $ | (892 | ) | |||||||||||
Foreclosed assets | 2,062 | — | — | 2,062 | (157 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets measured at fair value | $ | 3,088 | — | — | $ | 3,088 | $ | (1,049 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
Total Gains | ||||||||||||||||||||
June 30, 2019 | Total | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||
Fair value: | ||||||||||||||||||||
Impaired Originated & PNCI loans | $ | 1,164 | — | — | $ | 1,164 | $ | (808 | ) | |||||||||||
Foreclosed assets | 454 | — | — | 454 | (63 | ) | ||||||||||||||
Total assets measured at fair value | $ | 1,618 | — | — | $ | 1,618 | $ | (871 | ) | |||||||||||
Total Gains | ||||||||||||||||||||
December 31, 2018 | Total | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||
Fair value: | ||||||||||||||||||||
Impaired Originated & PNCI loans | $ | 281 | — | — | $ | 281 | $ | (294 | ) | |||||||||||
Foreclosed assets | 1,311 | — | — | 1,311 | (8 | ) | ||||||||||||||
Total assets measured at fair value | $ | 1,592 | — | — | $ | 1,592 | $ | (302 | ) | |||||||||||
Total Gains | ||||||||||||||||||||
June 30, 2018 | Total | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||
Fair value: | ||||||||||||||||||||
Impaired Originated & PNCI loans | $ | 1,647 | — | — | $ | 1,647 | $ | (505 | ) | |||||||||||
Foreclosed assets | 584 | — | — | 584 | (90 | ) | ||||||||||||||
Total assets measured at fair value | $ | 2,231 | — | — | $ | 2,231 | $ | (595 | ) | |||||||||||
Fair Value | Valuation | Range, | ||||||||||||
(in thousands) | Technique | Unobservable Inputs | Weighted Average | |||||||||||
September 30, 2018 | ||||||||||||||
Impaired Originated & PNCI loans | $ | 445 | | Sales comparison approach | | | Adjustment for differences between comparable sales; | | (55.8%) - 60%; (28%) | |||||
Income approach | Capitalization rate | N/A | ||||||||||||
Foreclosed assets (Residential real estate) | $ | 744 | | Sales comparison approach | | | Adjustment for differences between comparable sales | | (47%) - 52%; 0.9% | |||||
Foreclosed assets (Commercial real estate) | $ | 92 | | Sales comparison approach | | | Adjustment for differences between comparable sales | | (65%) - 20%; (45%) | |||||
Foreclosed assets (Land and construction) | $ | 27 | | Sales comparison approach | | | Adjustment for differences between comparable sales | | Information not meaningful |
2019:
June 30, 2019 | Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | Range, Weighted Average | ||||||||||||
Impaired Originated & PNCI loans | $ | — | Sales comparison approach Income approach | Adjustment for differences between comparable sales Capitalization rate | Not meaningful N/A | |||||||||||
Foreclosed assets (Residential real estate) | $ | — | Sales comparison approach | Adjustment for differences between comparable sales | Not meaningful |
Fair Value | Valuation | Range, | ||||||||||||
(in thousands) | Technique | Unobservable Inputs | Weighted Average | |||||||||||
December 31, 2017 | ||||||||||||||
Impaired Originated & PNCI loans | $ | 2,767 | | Sales comparison approach | | | Adjustment for differences between comparable sales | | (74%) - 23%; (19.76%) | |||||
Income approach | Capitalization rate | N/A | ||||||||||||
Foreclosed assets (Land & construction) | $ | 1,341 | | Sales comparison approach | | | Adjustment for differences between comparable sales | | (53%) - 283%; 167% | |||||
Foreclosed assets (Residential real estate) | $ | 622 | | Sales comparison approach | | | Adjustment for differences between comparable sales | | (47%) - 39%; (3.13%) | |||||
Foreclosed assets (Commercial real estate) | $ | 254 | | Sales comparison approach | | | Adjustment for differences between comparable sales | | (84%) - 19%; (84%) |
In addition to the methods and assumptions used to estimate the fair value of each class of financial instrument noted above, the following methods and assumptions were used to estimate the fair value of other classes of financial instruments for which it is practical to estimate the fair value.
Short-term Instruments - Cash and due from banks, fed funds purchased and sold, interest receivable and payable, and short-term borrowings are considered short-term instruments. For these short-term instruments their carrying amount approximates their fair value.
Securities held to maturity – The fair value of securities held to maturity is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in activeover-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. The Company had no securities held to maturity classified as Level 3 during any of the periods covered in these financial statements.
Restricted Equity Securities - It is not practical to determine the fair value of restricted equity securities due to restrictions placed on their transferability.
December 31, 2018 | Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | Range, Weighted Average | ||||||||||||
Impaired Originated & PNCI loans | $ | 281 | Sales comparison approach Income approach | Adjustment for differences between comparable sales Capitalization rate | (16.3%) - 35.14%; 10.45% N/A | |||||||||||
Foreclosed assets (Residential real estate) | $ | 693 | Sales comparison approach | Adjustment for differences between comparable sales | (21.83%) - 7.25%; (3.75%) | |||||||||||
Foreclosed assets (Commercial real estate) | $ | 618 | Sales comparison approach | Adjustment for differences between comparable sales | (65%) - 20%; (45%) |
Originated and PNCI loans- The fair value of variable rate originated and PNCI loans is the current carrying value. The interest rates on these originated and PNCI loans are regularly adjusted to market rates. The fair value of other types of fixed rate originated and PNCI loans is estimated by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings for the same remaining maturities. The allowance for loan losses is a reasonable estimate of the valuation allowance needed to adjust computed fair values for credit quality of certain originated and PNCI loans in the portfolio.
PCI Loans - PCI loans are measured at estimated fair value on the date of acquisition. Carrying value is calculated as the present value of expected cash flows and approximates fair value.
Deposit Liabilities- The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. These values do not consider the estimated fair value of the Company’s core deposit intangible, which is a significant unrecognized asset of the Company. The fair value of time deposits and other borrowings is based on the discounted value of contractual cash flows.
Other Borrowings- The fair value of other borrowings is calculated based on the discounted value of the contractual cash flows using current rates at which such borrowings can currently be obtained.
Junior Subordinated Debentures - The fair value of junior subordinated debentures is estimated using a discounted cash flow model. The future cash flows of these instruments are extended to the next available redemption date or maturity date as appropriate based upon the spreads of recent issuances or quotes from brokers for comparable bank holding companies compared to the contractual spread of each junior subordinated debenture measured at fair value.
Commitments to Extend Credit and Standby Letters of Credit - The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counter parties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counter parties at the reporting date.
In January 2018, the Company adopted the provisions
June 30, 2019 | December 31, 2018 | |||||||||||||||
(in thouands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial assets: | ||||||||||||||||
Level 1 inputs: | ||||||||||||||||
Cash and due from banks | $ | 106,939 | $ | 106,939 | $ | 119,781 | $ | 119,781 | ||||||||
Cash at Federal Reserve and other banks | 68,643 | 68,643 | 107,752 | 107,752 | ||||||||||||
Level 2 inputs: | ||||||||||||||||
Securities held to maturity | 412,524 | 415,276 | 444,936 | 437,370 | ||||||||||||
Restricted equity securities | 17,250 | N/A | 17,250 | N/A | ||||||||||||
Loans held for sale | 5,875 | 5,875 | 3,687 | 4,616 | ||||||||||||
Level 3 inputs: | ||||||||||||||||
Loans, net | 4,070,819 | 4,057,792 | 3,989,432 | 4,006,986 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Level 2 inputs: | ||||||||||||||||
Deposits | 5,342,173 | 5,341,105 | 5,366,466 | 5,362,173 | ||||||||||||
Other borrowings | 13,292 | 13,292 | 15,839 | 15,839 | ||||||||||||
Level 3 inputs: | ||||||||||||||||
Junior subordinated debt | 57,132 | 56,209 | 57,042 | 62,610 | ||||||||||||
(in thouands) | Contract Amount | Fair Value | Contract Amount | Fair Value | ||||||||||||
Off-balance sheet: | ||||||||||||||||
Level 3 inputs: | ||||||||||||||||
Commitments | $ | 1,201,892 | $ | 12,019 | $ | 1,192,054 | $ | 11,921 | ||||||||
Standby letters of credit | 11,338 | 113 | 11,346 | 113 | ||||||||||||
Overdraft privilege commitments | 108,941 | 1,089 | 111,956 | 1,120 |
The following tables present actual and required capital ratios as of SeptemberJune 30, 20182019 and December 31, 20172018 for the Company and the Bank under applicable Basel III Capital Rules. The minimum capital amounts presented include the minimum required capital levels as of SeptemberJune 30, 20182019 and December 31, 20172018 based on the thenRules andRules. As of January 1, 2019, the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully
Minimum Capital | Minimum Capital | Required to be | ||||||||||||||||||||||||||||||
Required – Basel III | Required – Basel III | Considered Well | ||||||||||||||||||||||||||||||
Actual | Phase-in Schedule | Fully Phased In | Capitalized | |||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
As of September 30, 2018: | ||||||||||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): |
| |||||||||||||||||||||||||||||||
Consolidated | $ | 664,197 | 13.90 | % | $ | 471,956 | 9.875 | % | $ | 501,826 | 10.50 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 658,075 | 13.77 | % | $ | 471,784 | 9.875 | % | $ | 501,643 | 10.50 | % | $ | 477,756 | 10.00 | % | ||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): |
| |||||||||||||||||||||||||||||||
Consolidated | $ | 630,294 | 13.19 | % | $ | 376,370 | 7.875 | % | $ | 406,240 | 8.50 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 624,172 | 13.06 | % | $ | 376,233 | 7.875 | % | $ | 406,092 | 8.50 | % | $ | 382,205 | 8.00 | % | ||||||||||||||||
Common equity Tier 1 Capital (to Risk Weighted Assets): |
| |||||||||||||||||||||||||||||||
Consolidated | $ | 575,010 | 12.03 | % | $ | 304,680 | 6.375 | % | $ | 334,551 | 7.00 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 624,172 | 13.06 | % | $ | 304,569 | 6.375 | % | $ | 334,429 | 7.00 | % | $ | 310,541 | 6.50 | % | ||||||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 630,294 | 10.66 | % | $ | 236,503 | 4.000 | % | $ | 236,503 | 4.00 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 624,172 | 10.56 | % | $ | 236,496 | 4.000 | % | $ | 236,496 | 4.00 | % | $ | 295,620 | 5.00 | % | ||||||||||||||||
Minimum Capital | Minimum Capital | Required to be | ||||||||||||||||||||||||||||||
Required – Basel III | Required – Basel III | Considered Well | ||||||||||||||||||||||||||||||
Actual | Phase-in Schedule | Fully Phased In | Capitalized | |||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
As of December 31, 2017: | ||||||||||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 528,805 | 14.07 | % | $ | 347,694 | 9.250 | % | $ | 394,679 | 10.50 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 525,384 | 13.98 | % | $ | 347,535 | 9.250 | % | $ | 394,499 | 10.50 | % | $ | 375,713 | 10.00 | % | ||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 495,318 | 13.18 | % | $ | 272,517 | 7.250 | % | $ | 319,502 | 8.50 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 491,897 | 13.09 | % | $ | 272,392 | 7.250 | % | $ | 319,356 | 8.50 | % | $ | 300,570 | 8.00 | % | ||||||||||||||||
Common equity Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 440,643 | 11.72 | % | $ | 216,134 | 5.750 | % | $ | 263,120 | 7.00 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 491,897 | 13.09 | % | $ | 216,035 | 5.750 | % | $ | 262,999 | 7.00 | % | $ | 244,214 | 6.50 | % | ||||||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 495,318 | 10.80 | % | $ | 183,400 | 4.000 | % | $ | 183,400 | 4.00 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 491,897 | 10.73 | % | $ | 183,394 | 4.000 | % | $ | 183,394 | 4.00 | % | $ | 229,243 | 5.00 | % |
Actual | Minimum Capital Required – Basel III Fully Phased In | Required to be Considered Well Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
As of June 30, 2019: | ||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Consolidated | $ | 718,901 | 14.93 | % | $ | 505,569 | 10.50 | % | N/A | N/A | ||||||||||||||
Tri Counties Bank | $ | 714,018 | 14.83 | % | $ | 505,385 | 10.50 | % | $ | 481,320 | 10.00 | % | ||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Consolidated | $ | 683,043 | 14.19 | % | $ | 409,270 | 8.50 | % | N/A | N/A | ||||||||||||||
Tri Counties Bank | $ | 678,160 | 14.09 | % | $ | 409,122 | 8.50 | % | $ | 385,056 | 8.00 | % | ||||||||||||
Common equity Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||
Consolidated | $ | 627,627 | 13.03 | % | $ | 337,046 | 7.00 | % | N/A | N/A | ||||||||||||||
Tri Counties Bank | $ | 678,160 | 14.09 | % | $ | 336,924 | 7.00 | % | $ | 312,858 | 6.50 | % | ||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||
Consolidated | $ | 683,043 | 11.08 | % | $ | 246,599 | 4.00 | % | N/A | N/A | ||||||||||||||
Tri Counties Bank | $ | 678,160 | 11.00 | % | $ | 246,594 | 4.00 | % | $ | 308,242 | 5.00 | % |
Actual | Minimum Capital Required – Basel III Phase-in Schedule | Minimum Capital Required – Basel III Fully Phased In | Required to be Considered Well Capitalized | |||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
As of December 31, 2018: | ||||||||||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 682,419 | 14.40 | % | $ | 467,874 | 9.875 | % | $ | 497,486 | 10.50 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 680,624 | 14.37 | % | $ | 467,704 | 9.875 | % | $ | 497,305 | 10.50 | % | $ | 473,624 | 10.00 | % | ||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 647,262 | 13.66 | % | $ | 373,115 | 7.875 | % | $ | 402,727 | 8.50 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 645,467 | 13.63 | % | $ | 372,979 | 7.875 | % | $ | 402,581 | 8.50 | % | $ | 378,899 | 8.00 | % | ||||||||||||||||
Common equity Tier 1 Capital (to Risk Weighted Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 591,933 | 12.49 | % | $ | 302,045 | 6.375 | % | $ | 331,658 | 7.00 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 645,467 | 13.63 | % | $ | 301,935 | 6.375 | % | $ | 331,537 | 7.00 | % | $ | 307,856 | 6.50 | % | ||||||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||||||||||||||
Consolidated | $ | 647,262 | 10.68 | % | $ | 242,452 | 4.000 | % | $ | 242,452 | 4.00 | % | N/A | N/A | ||||||||||||||||||
Tri Counties Bank | $ | 645,467 | 10.65 | % | $ | 242,447 | 4.000 | % | $ | 242,447 | 4.00 | % | $ | 303,059 | 5.00 | % |
Beginning January 1, 2016, the
Contents
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
2018.
The Company completed the merger of FNBB effective July 6, 2018 with the systems integration being achieved just two weeks later.
Annualized organic loan and deposit growth during the nine monthsquarter ended SeptemberJune 30, 2018 was 7.9% and 3.1%. Duringincreased 2 basis points from the current quarter, organic loan and deposit growth was 5.9% and 2.4% on an annualized basis.
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net interest income | $ | 60,489 | $ | 44,084 | $ | 151,344 | $ | 129,511 | ||||||||
Provision for (benefit from) loan losses | 2,651 | 765 | 1,777 | (1,588 | ) | |||||||||||
Noninterest income | 12,186 | 12,930 | 36,650 | 37,543 | ||||||||||||
Noninterest expense | (47,378 | ) | (37,222 | ) | (123,410 | ) | (108,948 | ) | ||||||||
Provision for income taxes | (6,476 | ) | (7,130 | ) | (17,698 | ) | (22,129 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net income | $ | 16,170 | $ | 11,897 | $ | 45,109 | $ | 37,565 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share Data | ||||||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.54 | $ | 0.52 | $ | 1.78 | $ | 1.64 | ||||||||
Diluted | $ | 0.53 | $ | 0.51 | $ | 1.76 | $ | 1.62 | ||||||||
Per share: | ||||||||||||||||
Dividends paid | $ | 0.17 | $ | 0.17 | $ | 0.51 | $ | 0.49 | ||||||||
Book value at period end | $ | 26.37 | $ | 22.09 | ||||||||||||
Average common shares outstanding | 30,011 | 22,932 | 25,317 | 22,901 | ||||||||||||
Average diluted common shares outstanding | 30,291 | 23,244 | 25,617 | 23,239 | ||||||||||||
Shares outstanding at period end | 30,418 | 22,941 | ||||||||||||||
Financial Ratios | ||||||||||||||||
During the period (annualized): | ||||||||||||||||
Return on average assets | 1.05 | % | 1.02 | % | 1.15 | % | 1.14 | % | ||||||||
Return on average equity | 9.11 | % | 9.38 | % | 10.44 | % | 10.09 | % | ||||||||
Net interest margin1 | 4.32 | % | 4.26 | % | 4.21 | % | 4.19 | % | ||||||||
Efficiency ratio | 65.2 | % | 65.3 | % | 65.6 | % | 65.2 | % | ||||||||
Average equity to average assets | 11.5 | % | 11.1 | % | 11.0 | % | 10.9 | % |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net interest income | $ | 64,315 | $ | 45,869 | $ | 128,185 | $ | 90,855 | ||||||||
(Provision for) benefit from reversal of loan losses | (537 | ) | 638 | 1,063 | 874 | |||||||||||
Noninterest income | 13,578 | 12,174 | 25,442 | 24,464 | ||||||||||||
Noninterest expense | (46,852 | ) | (37,870 | ) | (92,365 | ) | (76,032 | ) | ||||||||
Provision for income taxes | (7,443 | ) | (5,782 | ) | (16,538 | ) | (11,222 | ) | ||||||||
Net income | $ | 23,061 | $ | 15,029 | $ | 45,787 | $ | 28,939 | ||||||||
Per Share Data: | ||||||||||||||||
Basic earnings per share | $ | 0.76 | $ | 0.65 | $ | 1.50 | $ | 1.26 | ||||||||
Diluted earnings per share | $ | 0.75 | $ | 0.65 | $ | 1.49 | $ | 1.24 | ||||||||
Dividends paid | $ | 0.19 | $ | 0.17 | $ | 0.38 | $ | 0.34 | ||||||||
Book value at period end | $ | 28.71 | $ | 22.27 | ||||||||||||
Average common shares outstanding | 30,458 | 22,983 | 30,441 | 22,970 | ||||||||||||
Average diluted common shares outstanding | 30,643 | 23,276 | 30,650 | 23,280 | ||||||||||||
Shares outstanding at period end | 30,503 | 23,004 | ||||||||||||||
At period end: | ||||||||||||||||
Loans, net | 4,070,819 | 3,116,789 | ||||||||||||||
Total investment securities | 1,566,720 | 1,251,776 | ||||||||||||||
Total assets | 6,395,172 | 4,863,153 | ||||||||||||||
Total deposits | 5,342,173 | 4,077,222 | ||||||||||||||
Other borrowings | 13,292 | 152,839 | ||||||||||||||
Shareholders’ equity | 875,886 | 512,344 | ||||||||||||||
Financial Ratios: | ||||||||||||||||
During the period (annualized): | ||||||||||||||||
Return on average assets | 1.44 | % | 1.25 | % | 1.43 | % | 1.21 | % | ||||||||
Return on average equity | 10.65 | % | 11.78 | % | 10.71 | % | 11.39 | % | ||||||||
Net interest margin 1 | 4.48 | % | 4.14 | % | 4.47 | % | 4.14 | % | ||||||||
Efficiency ratio | 60.1 | % | 65.2 | % | 60.1 | % | 65.9 | % | ||||||||
Average equity to average assets | 13.6 | % | 10.6 | % | 13.3 | % | 10.6 | % | ||||||||
At end of period: | ||||||||||||||||
Equity to assets | 13.70 | % | 10.54 | % | ||||||||||||
Total capital to risk-sdjusted assets | 14.93 | % | 13.91 | % |
1 | Fully taxable equivalent (FTE) |
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
Balance Sheet Data | 2018 | 2018 | 2018 | 2017 | 2017 | |||||||||||||||
Total assets | $ | 6,318,865 | $ | 4,863,153 | $ | 4,779,957 | $ | 4,761,315 | $ | 4,656,435 | ||||||||||
Total investments | 1,535,953 | 1,251,776 | 1,251,776 | 1,262,683 | 1,231,759 | |||||||||||||||
Total loans | 4,027,436 | 3,116,789 | 3,069,733 | 3,015,165 | 2,931,613 | |||||||||||||||
Totalnon-interest bearing deposits | 1,710,505 | 1,369,834 | 1,359,996 | 1,368,218 | 1,283,949 | |||||||||||||||
Total deposits | 5,093,117 | 4,077,222 | 4,084,404 | 4,009,131 | 3,927,456 | |||||||||||||||
Total other borrowings | 282,831 | 153,839 | 65,041 | 122,166 | 98,730 | |||||||||||||||
Total junior subordinated debt | 56,996 | 56,950 | 56,905 | 56,858 | 56,810 | |||||||||||||||
Total shareholders’ equity | 802,115 | 512,344 | 505,256 | 505,808 | 506,733 | |||||||||||||||
Total tangible equity (1) | $ | 550,432 | $ | 443,537 | $ | 436,110 | $ | 436,323 | $ | 436,909 |
NOTE:
|
Ending balances | As of September 30, | $ Change | Acquired | Organic | Organic | |||||||||||||||||||
($’s in thousands) | 2018 | 2017 | Balances | $ Change | % Change | |||||||||||||||||||
Total assets | $ | 6,318,865 | $ | 4,656,435 | $ | 1,662,430 | $ | 1,463,199 | $ | 199,231 | 4.28 | % | ||||||||||||
Total loans | 4,027,436 | 2,931,613 | 1,095,823 | 834,683 | 261,140 | 8.91 | % | |||||||||||||||||
Total investments | 1,535,953 | 1,231,759 | 304,194 | 335,667 | (31,473 | ) | (2.56 | %) | ||||||||||||||||
Total deposits | $ | 5,093,117 | $ | 3,927,456 | $ | 1,165,661 | $ | 991,935 | $ | 173,726 | 4.42 | % |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net interest income (FTE) | $ | 64,613 | $ | 46,182 | $ | 128,804 | $ | 91,480 | ||||||||
(Provision for) Benefit from reversal of loan losses | (537 | ) | 638 | 1,063 | 874 | |||||||||||
Noninterest income | 13,578 | 12,174 | 25,442 | 24,464 | ||||||||||||
Noninterest expense | (46,852 | ) | (37,870 | ) | (92,365 | ) | (76,032 | ) | ||||||||
Provision for income taxes (FTE) | (7,741 | ) | (6,095 | ) | (17,157 | ) | (11,847 | ) | ||||||||
Net income | $ | 23,061 | $ | 15,029 | $ | 45,787 | $ | 28,939 | ||||||||
In addition to the $834,683,000 in loans acquired, recorded net of a $33,417,000 discount, organic loan growth totaled $177,588,000 or an annualized rate of 7.9% during the first nine months of 2018. In addition to the $991,935,000 in acquired deposits, organic deposit growth for the first nine months of 2018 was $92,051,000 or 3.1% on an annualized basis. Total assets acquired from FNB Bancorp totaled $1,306,539,000, inclusive of the core deposit intangible. Goodwill associated with the acquisition of FNB Bancorp was $156,661,000 and the core deposit intangible, which will be amortized over an estimated weighted average life of 6.2 years, was $27,605,000.
Following is a summary of the components of FTE net income for the periods indicated (dollars in thousands):
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net interest income (FTE) | $ | 60,846 | $ | 44,708 | $ | 152,326 | $ | 131,385 | ||||||||
Provision for (benefit from) loan losses | 2,651 | 765 | 1,777 | (1,588 | ) | |||||||||||
Noninterest income | 12,186 | 12,930 | 36,650 | 37,543 | ||||||||||||
Noninterest expense | (47,378 | ) | (37,222 | ) | (123,410 | ) | (108,948 | ) | ||||||||
Provision for income taxes (FTE) | (6,833 | ) | (7,754 | ) | (18,680 | ) | (24,003 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net income | $ | 16,170 | $ | 11,897 | $ | 45,109 | $ | 37,565 | ||||||||
|
|
|
|
|
|
|
|
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest income | $ | 68,180 | $ | 48,478 | $ | 135,637 | $ | 95,599 | ||||||||
Interest expense | (3,865 | ) | (2,609 | ) | (7,452 | ) | (4,744 | ) | ||||||||
FTE adjustment | 298 | 313 | 619 | 625 | ||||||||||||
Net interest income (FTE) | $ | 64,613 | $ | 46,182 | $ | 128,804 | $ | 91,480 | ||||||||
Net interest margin (FTE) | 4.48 | % | 4.14 | % | 4.47 | % | 4.14 | % | ||||||||
Acquired loans discount accretion, net: | ||||||||||||||||
Amount (included in interest income) | $ | 1,904 | $ | 559 | $ | 3,559 | $ | 1,191 | ||||||||
Effect on average loan yield | 0.19 | % | 0.07 | % | 0.18 | % | 0.08 | % | ||||||||
Effect on net interest margin (FTE) | 0.13 | % | 0.05 | % | 0.12 | % | 0.05 | % |
Three months ended | ||||||||||||||||
September 30, | ||||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||||
Interest income | $ | 64,554 | $ | 45,913 | $ | 18,641 | 40.6 | % | ||||||||
Interest expense | (4,065 | ) | (1,829 | ) | (2,236 | ) | 122.3 | % | ||||||||
|
|
|
|
|
| |||||||||||
Net interest income (not FTE) | 60,489 | 44,084 | 16,405 | 37.2 | % | |||||||||||
FTE adjustment | 357 | 624 | (267 | ) | (42.8 | %) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net interest income (FTE) | $ | 60,846 | $ | 44,708 | $ | 16,138 | 36.1 | % | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net interest margin (FTE) | 4.32 | % | 4.24 | % | ||||||||||||
|
|
|
| |||||||||||||
Acquired loans discount accretion: | ||||||||||||||||
Purchased loan discount accretion | $ | 2,098 | $ | 1,364 | ||||||||||||
Effect on average loan yield | 0.21 | % | 0.19 | % | ||||||||||||
Effect of purchased loan discount accretion on net interest margin (FTE) | 0.15 | % | 0.13 | % | ||||||||||||
Three months ended | ||||||||||||||||
September 30, 2018 | June 30, 2018 | $ Change | % Change | |||||||||||||
Interest income | $ | 64,554 | $ | 48,478 | $ | 16,076 | 33.2 | % | ||||||||
Interest expense | (4,065 | ) | (2,609 | ) | (1,456 | ) | 55.8 | % | ||||||||
|
|
|
|
|
| |||||||||||
Net interest income (not FTE) | 60,489 | 45,869 | 14,620 | 31.9 | % | |||||||||||
FTE adjustment | 357 | 313 | 44 | 14.1 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net interest income (FTE) | $ | 60,846 | $ | 46,182 | $ | 14,664 | 31.8 | % | ||||||||
Net interest margin (FTE) | 4.32 | % | 4.14 | % | ||||||||||||
Acquired loans discount accretion: | ||||||||||||||||
Purchased loan discount accretion | $ | 2,098 | $ | 559 | ||||||||||||
Effect on average loan yield | 0.21 | % | 0.07 | % | ||||||||||||
Effect of purchased loan discount accretion on net interest margin (FTE) | 0.15 | % | 0.05 | % | ||||||||||||
Nine months ended September 30, | ||||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||||
Interest income | $ | 160,153 | $ | 134,441 | $ | 25,712 | 19.1 | % | ||||||||
Interest expense | (8,809 | ) | (4,930 | ) | (3,879 | ) | 78.7 | % | ||||||||
|
|
|
|
|
| |||||||||||
Net interest income (not FTE) | 151,344 | 129,511 | 21,833 | 16.9 | % | |||||||||||
FTE adjustment | 982 | 1,874 | (892 | ) | (47.6 | %) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net interest income (FTE) | $ | 152,326 | $ | 131,385 | $ | 20,941 | 15.9 | % | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net interest margin (FTE) | 4.21 | % | 4.21 | % | ||||||||||||
|
|
|
| |||||||||||||
Acquired loans discount accretion: | ||||||||||||||||
Purchased loan discount accretion | $ | 3,289 | $ | 5,075 | ||||||||||||
Effect on average loan yield | 0.13 | % | 0.24 | % | ||||||||||||
Effect of purchased loan discount accretion on net interest margin (FTE) | 0.09 | % | 0.16 | % |
For the three months ended | ||||||||||||||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||||||||||||
Interest | Rates | Interest | Rates | |||||||||||||||||||||
Average | Income/ | Earned | Average | Income/ | Earned | |||||||||||||||||||
Balance | Expense | /Paid | Balance | Expense | /Paid | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loans | $ | 4,028,462 | $ | 53,102 | 5.27 | % | $ | 2,878,944 | $ | 37,268 | 5.18 | % | ||||||||||||
Investment securities - taxable | 1,336,361 | 9,648 | 2.89 | % | 1,114,112 | 7,312 | 2.63 | % | ||||||||||||||||
Investment securities - nontaxable(1) | 153,704 | 1,546 | 4.02 | % | 136,095 | 1,665 | 4.89 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total investments | 1,490,065 | 11,194 | 3.00 | % | 1,250,207 | 8,977 | 2.87 | % | ||||||||||||||||
Cash at Federal Reserve and other banks | 119,635 | 615 | 2.06 | % | 85,337 | 292 | 1.37 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total interest-earning assets | 5,638,162 | 64,911 | 4.61 | % | 4,214,488 | 46,537 | 4.42 | % | ||||||||||||||||
Other assets | 530,182 | 357,936 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 6,168,344 | $ | 4,572,424 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,125,159 | 248 | 0.09 | % | $ | 949,348 | 206 | 0.09 | % | ||||||||||||||
Savings deposits | 1,803,022 | 833 | 0.18 | % | 1,365,249 | 419 | 0.12 | % | ||||||||||||||||
Time deposits | 430,286 | 991 | 0.92 | % | 310,325 | 403 | 0.52 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total interest-bearing deposits | 3,358,467 | 2,072 | 0.25 | % | 2,624,922 | 1,028 | 0.16 | % | ||||||||||||||||
Other borrowings | 246,637 | 1,178 | 1.91 | % | 65,234 | 149 | 0.91 | % | ||||||||||||||||
Junior subordinated debt | 56,973 | 815 | 5.72 | % | 56,784 | 652 | 4.59 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 3,662,077 | 4,065 | 0.44 | % | 2,746,940 | 1,829 | 0.27 | % | ||||||||||||||||
Noninterest-bearing deposits | 1,710,374 | 1,253,261 | ||||||||||||||||||||||
Other liabilities | 86,131 | 64,834 | ||||||||||||||||||||||
Shareholders’ equity | 709,762 | 507,389 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,168,344 | $ | 4,572,424 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest spread(2) | 4.17 | % | 4.15 | % | ||||||||||||||||||||
Net interest income and interest margin(3) | $ | 60,846 | 4.32 | % | $ | 44,708 | 4.24 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
For the three months ended | ||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Rates Earned /Paid | Average Balance | Interest Income/ Expense | Rates Earned /Paid | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loans | $ | 4,044,044 | $ | 55,492 | 5.49 | % | $ | 3,104,126 | $ | 39,304 | 5.06 | % | ||||||||||||
Investment securities - taxable | 1,432,550 | 10,762 | 3.00 | % | 1,122,534 | 7,736 | 2.76 | % | ||||||||||||||||
Investment securities - nontaxable (1) | 140,562 | 1,358 | 3.86 | % | 136,126 | 1,355 | 3.98 | % | ||||||||||||||||
Total investments | 1,573,112 | 12,120 | 3.08 | % | 1,258,660 | 9,091 | 2.89 | % | ||||||||||||||||
Cash at Federal Reserve and other banks | 147,810 | 866 | 2.34 | % | 94,874 | 396 | 1.67 | % | ||||||||||||||||
Total interest-earning assets | 5,764,966 | 68,478 | 4.75 | % | 4,457,660 | 48,791 | 4.38 | % | ||||||||||||||||
Other assets | 620,923 | 356,863 | ||||||||||||||||||||||
Total assets | $ | 6,385,889 | $ | 4,814,523 | ||||||||||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,276,388 | $ | 289 | 0.09 | % | $ | 995,528 | $ | 214 | 0.09 | % | ||||||||||||
Savings deposits | 1,888,234 | 1,306 | 0.28 | % | 1,393,121 | 427 | 0.12 | % | ||||||||||||||||
Time deposits | 441,116 | 1,404 | 1.27 | % | 313,556 | 593 | 0.76 | % | ||||||||||||||||
Total interest-bearing deposits | 3,605,738 | 2,999 | 0.33 | % | 2,702,205 | 1,234 | 0.18 | % | ||||||||||||||||
Other borrowings | 17,963 | 37 | 0.82 | % | 139,307 | 586 | 1.68 | % | ||||||||||||||||
Junior subordinated debt | 57,222 | 829 | 5.79 | % | 56,928 | 789 | 5.54 | % | ||||||||||||||||
Total interest-bearing liabilities | 3,680,923 | 3,865 | 0.42 | % | 2,898,440 | 2,609 | 0.36 | % | ||||||||||||||||
Noninterest-bearing deposits | 1,765,141 | 1,339,905 | ||||||||||||||||||||||
Other liabilities | 73,541 | 65,745 | ||||||||||||||||||||||
Shareholders’ equity | 866,284 | 510,433 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,385,889 | $ | 4,814,523 | ||||||||||||||||||||
Net interest spread (2) | 4.33 | % | 4.02 | % | ||||||||||||||||||||
Net interest income and interest margin (3) | $ | 64,613 | 4.48 | % | $ | 46,182 | 4.14 | % | ||||||||||||||||
For the nine months ended | ||||||||||||||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||||||||||||
Interest | Rates | Interest | Rates | |||||||||||||||||||||
Average | Income/ | Earned | Average | Income/ | Earned | |||||||||||||||||||
Balance | Expense | /Paid | Balance | Expense | /Paid | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loans | $ | 3,390,447 | $ | 130,455 | 5.13 | % | $ | 2,807,453 | $ | 108,600 | 5.16 | % | ||||||||||||
Investment securities - taxable | 1,195,541 | 25,042 | 2.79 | % | 1,076,887 | 21,637 | 2.68 | % | ||||||||||||||||
Investment securities - nontaxable(1) | 142,061 | 4,254 | 3.99 | % | 136,213 | 4,998 | 4.89 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total investments | 1,337,602 | 29,296 | 2.92 | % | 1,213,100 | 26,635 | 2.93 | % | ||||||||||||||||
Cash at Federal Reserve and other banks | 101,889 | 1,384 | 1.81 | % | 139,739 | 1,080 | 1.03 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-earning assets | 4,829,938 | 161,135 | 4.45 | % | 4,160,292 | 136,315 | 4.37 | % | ||||||||||||||||
Other assets | 416,520 | 359,489 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total assets | $ | 5,246,458 | $ | 4,519,781 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,038,775 | 673 | 0.09 | % | $ | 931,079 | 534 | 0.08 | % | ||||||||||||||
Savings deposits | 1,524,048 | 1,671 | 0.15 | % | 1,364,812 | 1,253 | 0.12 | % | ||||||||||||||||
Time deposits | 350,559 | 2,058 | 0.78 | % | 321,150 | 1,109 | 0.46 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total interest-bearing deposits | 2,913,382 | 4,402 | 0.20 | % | 2,617,041 | 2,896 | 0.15 | % | ||||||||||||||||
Other borrowings | 165,026 | 2,106 | 1.70 | % | 34,413 | 164 | 0.64 | % | ||||||||||||||||
Junior subordinated debt | 56,928 | 2,301 | 5.39 | % | 56,737 | 1,870 | 4.39 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 3,135,336 | 8,809 | 0.37 | % | 2,708,191 | 4,930 | 0.24 | % | ||||||||||||||||
Noninterest-bearing deposits | 1,462,209 | 1,247,201 | ||||||||||||||||||||||
Other liabilities | 72,772 | 67,854 | ||||||||||||||||||||||
Shareholders’ equity | 576,141 | 496,535 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,246,458 | $ | 4,519,781 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Net interest spread(2) | 4.08 | % | 4.13 | % | ||||||||||||||||||||
Net interest income and interest margin(3) | $ | 152,326 | 4.21 | % | $ | 131,385 | 4.21 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
(1) | Fully taxable equivalent (FTE) |
(2) | Net interest spread represents the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(3) | Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets. |
As of June 30, | Acquired | Organic | Organic | |||||||||||||||||||||
($‘s in thousands) | 2019 | 2018 | $ Change | Balances | $ Change | % Change | ||||||||||||||||||
Ending balances | ||||||||||||||||||||||||
Total assets | $ | 6,395,172 | $ | 4,863,153 | $ | 1,532,019 | $ | 1,463,200 | $ | 68,819 | 1.4 | % | ||||||||||||
Total loans | 4,103,687 | 3,146,313 | 957,374 | 834,683 | 122,691 | 3.9 | % | |||||||||||||||||
Total investments | 1,566,720 | 1,251,776 | 314,944 | 335,667 | (20,723 | ) | (1.7 | %) | ||||||||||||||||
Total deposits | $ | 5,342,173 | $ | 4,077,222 | $ | 1,264,951 | $ | 991,935 | $ | 273,016 | 6.7 | % |
For the six months ended | ||||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Rates Earned /Paid | Average Balance | Interest Income/ Expense | Rates Earned /Paid | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Loans | $ | 4,033,954 | $ | 109,889 | 5.45 | % | $ | 3,066,152 | $ | 77,353 | 5.05 | % | ||||||||||||
Investment securities - taxable | 1,428,951 | 21,677 | 3.03 | % | 1,123,964 | 15,394 | 2.74 | % | ||||||||||||||||
Investment securities - nontaxable (1) | 141,397 | 2,753 | 3.89 | % | 136,143 | 2,708 | 3.98 | % | ||||||||||||||||
Total investments | 1,570,348 | 24,430 | 3.11 | % | 1,260,107 | 18,102 | 2.87 | % | ||||||||||||||||
Cash at Federal Reserve and other banks | 158,164 | 1,937 | 2.45 | % | 92,869 | 769 | 1.66 | % | ||||||||||||||||
Total interest-earning assets | 5,762,466 | 136,256 | 4.73 | % | 4,419,128 | 96,224 | 4.35 | % | ||||||||||||||||
Other assets | 643,592 | 358,747 | ||||||||||||||||||||||
Total assets | $ | 6,406,058 | $ | 4,777,875 | ||||||||||||||||||||
Liabilities and shareholders’ equity: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,274,882 | $ | 576 | 0.09 | % | $ | 994,867 | $ | 425 | 0.09 | % | ||||||||||||
Savings deposits | 1,907,677 | 2,439 | 0.26 | % | 1,382,249 | 838 | 0.12 | % | ||||||||||||||||
Time deposits | 441,447 | 2,703 | 1.22 | % | 310,035 | 1,067 | 0.69 | % | ||||||||||||||||
Total interest-bearing deposits | 3,624,006 | 5,718 | 0.32 | % | 2,687,151 | 2,330 | 0.17 | % | ||||||||||||||||
Other borrowings | 16,736 | 50 | 0.60 | % | 123,544 | 928 | 1.50 | % | ||||||||||||||||
Junior subordinated debt | 57,086 | 1,684 | 5.90 | % | 56,905 | 1,486 | 5.22 | % | ||||||||||||||||
Total interest-bearing liabilities | 3,697,828 | 7,452 | 0.40 | % | 2,867,600 | 4,744 | 0.33 | % | ||||||||||||||||
Noninterest-bearing deposits | 1,754,973 | 1,336,070 | ||||||||||||||||||||||
Other liabilities | 98,570 | 65,982 | ||||||||||||||||||||||
Shareholders’ equity | 854,687 | 508,223 | ||||||||||||||||||||||
�� | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,406,058 | $ | 4,777,875 | ||||||||||||||||||||
Net interest spread (2) | 4.33 | % | 4.02 | % | ||||||||||||||||||||
Net interest income and interest margin (3) | $ | 128,804 | 4.47 | % | $ | 91,480 | 4.14 | % | ||||||||||||||||
(1) | Fully taxable equivalent (FTE) |
(2) | Net interest spread represents the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(3) | Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets. |
Three months ended September 30, 2018 | ||||||||||||
compared with three months | ||||||||||||
ended September 30, 2017 | ||||||||||||
Volume | Rate | Total | ||||||||||
Increase in interest income: | ||||||||||||
Loans | $ | 14,886 | $ | 948 | $ | 15,834 | ||||||
Investment securities | 1,676 | 541 | 2,217 | |||||||||
Cash at Federal Reserve and other banks | 117 | 206 | 323 | |||||||||
|
|
|
|
|
| |||||||
Total interest-earning assets | 16,679 | 1,695 | 18,374 | |||||||||
|
|
|
|
|
| |||||||
Increase in interest expense: | ||||||||||||
Interest-bearing demand deposits | 40 | 2 | 42 | |||||||||
Savings deposits | 131 | 283 | 414 | |||||||||
Time deposits | 156 | 432 | 588 | |||||||||
Other borrowings | 413 | 616 | 1,029 | |||||||||
Junior subordinated debt | 2 | 161 | 163 | |||||||||
|
|
|
|
|
| |||||||
Total interest-bearing liabilities | 742 | 1,494 | 2,236 | |||||||||
|
|
|
|
|
| |||||||
Increase in net interest income | $ | 15,937 | $ | 201 | $ | 16,138 | ||||||
|
|
|
|
|
| |||||||
Nine months ended September 30, 2018 | ||||||||||||
compared with nine months | ||||||||||||
ended September 30, 2017 | ||||||||||||
Volume | Rate | Total | ||||||||||
Increase (decrease) in interest income: | ||||||||||||
Loans | $ | 22,562 | $ | (707 | ) | $ | 21,855 | |||||
Investment securities | 2,599 | 62 | 2,661 | |||||||||
Cash at Federal Reserve and other banks | (292 | ) | 596 | 304 | ||||||||
|
|
|
|
|
| |||||||
Total interest-earning assets | 24,869 | (49 | ) | 24,820 | ||||||||
|
|
|
|
|
| |||||||
Increase in interest expense: | ||||||||||||
Interest-bearing demand deposits | 65 | 74 | 139 | |||||||||
Savings deposits | 143 | 275 | 418 | |||||||||
Time deposits | 101 | 848 | 949 | |||||||||
Other borrowings | 627 | 1,315 | 1,942 | |||||||||
Junior subordinated debt | 6 | 425 | 431 | |||||||||
|
|
|
|
|
| |||||||
Total interest-bearing liabilities | 942 | 2,937 | 3,879 | |||||||||
|
|
|
|
|
| |||||||
Increase (decrease) in net interest income | $ | 23,927 | $ | (2,986 | ) | $ | 20,941 | |||||
|
|
|
|
|
|
Three months ended June 30, 2019 compared with three months ended June 30, 2018 | ||||||||||||
Volume | Rate | Total | ||||||||||
Increase in interest income: | ||||||||||||
Loans | $ | 12,681 | $ | 3,507 | $ | 16,188 | ||||||
Investment securities (1) | 2,391 | 638 | 3,029 | |||||||||
Cash at Federal Reserve and other banks | 273 | 197 | 470 | |||||||||
Total interest-earning assets | 15,345 | 4,342 | 19,687 | |||||||||
Increase (decrease) in interest expense: | ||||||||||||
Interest-bearing demand deposits | 63 | 12 | 75 | |||||||||
Savings deposits | 194 | 685 | 879 | |||||||||
Time deposits | 303 | 508 | 811 | |||||||||
Other borrowings | (346 | ) | (203 | ) | (549 | ) | ||||||
Junior subordinated debt | 4 | 36 | 40 | |||||||||
Total interest-bearing liabilities | 218 | 1,038 | 1,256 | |||||||||
Increase in net interest income | $ | 15,127 | $ | 3,304 | $ | 18,431 | ||||||
(1) | Fully taxable equivalent (FTE) |
Six months ended June 30, 2019 compared with six months ended June 30, 2018 | ||||||||||||
Volume | Rate | Total | ||||||||||
Increase in interest income: | ||||||||||||
Loans | $ | 25,971 | $ | 6,565 | $ | 32,536 | ||||||
Investment securities (1) | 4,733 | 1,595 | 6,328 | |||||||||
Cash at Federal Reserve and other banks | 695 | 473 | 1,168 | |||||||||
Total interest-earning assets | 31,399 | 8,633 | 40,032 | |||||||||
Increase (decrease) in interest expense: | ||||||||||||
Interest-bearing demand deposits | 126 | 25 | 151 | |||||||||
Savings deposits | 408 | 1,193 | 1,601 | |||||||||
Time deposits | 576 | 1,060 | 1,636 | |||||||||
Other borrowings | (518 | ) | (360 | ) | (878 | ) | ||||||
Junior subordinated debt | 4 | 194 | 198 | |||||||||
Total interest-bearing liabilities | 596 | 2,112 | 2,708 | |||||||||
Increase in net interest income | $ | 30,803 | $ | 6,521 | $ | 37,324 | ||||||
(1) | Fully taxable equivalent (FTE) |
The2019. Of the 43 basis point increase in the average rate paidyields on interest-bearing liabilities for the trailing and comparable quarters of 8loans, 31 basis points and 17 basis points, respectively, was due in partattributable to differencesincreases in market rates while 12 basis points was from increased accretion of purchased loans.
six months ended June 30, 2019.
Also affecting net interest margin during the three and nine months ended September 30, 2018, was thewhich, combined with changes in related rates, contributed to a decrease in the Federal tax rate from 35% to 21%. This decrease in the Federal tax rate caused the fullytax-equivalent (FTE) yield on the Company’s nontaxable investments to decrease from 4.89% during the nine months ended September 30, 2017 to 3.99% during the nine months ended September 30, 2018.
Asinterest expense of September 30, 2018, the Bank’s $4,082,558,000 principal balance of loans, net of charge-offs, and not including deferred loan fees and purchase discounts, was made up of loans with principal balances totaling $1,297,815,000 that have fixed interest rates, and $2,784,743,000 of loans with interest rates that are variable. Included in the balance of variable rate loans as of September 30, 2018 were loans with principal balances of approximately $687,114,000 that had adjustable interest rates tied to the prime lending rate that adjust on or near the date of any prime rate change.
$878,000.
The Company recorded provisions for loan losses of $2,651,000 and $765,000 during the three months ended September 30, 2018 and 2017, respectively. While the Company did record net charge-offs of $572,000 during the third quarter of 2018 as compared to net charge-offs of $161,000 in the 2017 quarter, the primary cause for the increase in provision for loan losses was due to changes in the Company’s analysis of qualitative factors associated with the California economy. More specifically, the Company has become more cautious about the risks associated with trends in California real estate prices and the decrease in affordability of housing in the markets served by the Company. Loan growth, excluding acquired loans, also contributed to the need for additional provisioning.
During the nine months ended September 30, 2018 the Company recorded a loan loss provision of $1,777,000 as compared to a reversal of provision for loan losses of $1,588,000 during the nine months ended September 30, 2017. Nonperforming loans were $27,148,000, or 0.67% of loans outstanding as of September 30, 2018, compared to $25,420,000, or 0.81% of loans outstanding as of June 30, 2018 and $24,394,000 or 0.81% of loans outstanding as of December 31, 2017. The fair value of loans acquired with deteriorated credit quality during the current quarter totaled $1,302,000.
Three months ended September 30, | ||||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||||
ATM and interchange fees | $ | 4,590 | $ | 4,209 | $ | 381 | 9.1 | % | ||||||||
Service charges on deposit accounts | 4,015 | 4,160 | (145 | ) | (3.5 | %) | ||||||||||
Other service fees | 676 | 917 | (241 | ) | (26.3 | %) | ||||||||||
Mortgage banking service fees | 499 | 514 | (15 | ) | (2.9 | %) | ||||||||||
Change in value of mortgage servicing rights | (37 | ) | (325 | ) | 288 | (88.6 | %) | |||||||||
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|
|
|
|
|
|
| |||||||||
Total service charges and fees | 9,743 | 9,475 | 268 | 2.8 | % | |||||||||||
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|
|
|
|
|
|
| |||||||||
Commissions on sale ofnon-deposit investment products | 728 | 672 | 56 | 8.3 | % | |||||||||||
Increase in cash value of life insurance | 732 | 732 | — | 0.0 | % | |||||||||||
Gain on sale of loans | 539 | 606 | (67 | ) | (11.1 | %) | ||||||||||
Lease brokerage income | 186 | 234 | (48 | ) | (20.5 | %) | ||||||||||
Gain on sale of foreclosed assets | 2 | 37 | (35 | ) | (94.6 | %) | ||||||||||
Sale of customer checks | 88 | 89 | (1 | ) | (1.1 | %) | ||||||||||
Gain on sale of investment securities | 207 | 961 | (754 | ) | (78.5 | %) | ||||||||||
Loss on disposal of fixed assets | (152 | ) | (33 | ) | (119 | ) | 360.6 | % | ||||||||
Loss on marketable equity securities | (22 | ) | — | (22 | ) | — | ||||||||||
Other | 135 | 157 | (22 | ) | (14.0 | %) | ||||||||||
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|
|
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| |||||||||
Total other noninterest income | 2,443 | 3,455 | (1,012 | ) | (29.3 | %) | ||||||||||
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|
| |||||||||
Total noninterest income | $ | 12,186 | $ | 12,930 | $ | (744 | ) | (5.8 | %) | |||||||
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|
Three months ended June 30, | ||||||||||||||||
(dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
ATM and interchange fees | $ | 5,404 | $ | 4,510 | $ | 894 | 19.8 | % | ||||||||
Service charges on deposit accounts | 4,182 | 3,613 | 569 | 15.7 | % | |||||||||||
Other service fees | 619 | 630 | (11 | ) | (1.7 | %) | ||||||||||
Mortgage banking service fees | 475 | 511 | (36 | ) | (7.0 | %) | ||||||||||
Change in value of mortgage servicing rights | (552 | ) | (36 | ) | (516 | ) | 1433.3 | % | ||||||||
Total service charges and fees | 10,128 | 9,228 | 900 | 9.8 | % | |||||||||||
Increase in cash value of life insurance | 746 | 656 | 90 | 13.7 | % | |||||||||||
Asset management and commission income | 739 | 810 | (71 | ) | (8.8 | %) | ||||||||||
Gain on sale of loans | 575 | 666 | (91 | ) | (13.7 | %) | ||||||||||
Lease brokerage income | 239 | 200 | 39 | 19.5 | % | |||||||||||
Sale of customer checks | 135 | 138 | (3 | ) | (2.2 | %) | ||||||||||
Gain on sale of foreclosed assets | 197 | 17 | 180 | 1058.8 | % | |||||||||||
Gain (loss) on marketable equity securities | 42 | (23 | ) | 65 | (282.6 | %) | ||||||||||
Loss on disposal of fixed assets | (42 | ) | (41 | ) | (1 | ) | 2.4 | % | ||||||||
Other | 819 | 523 | 296 | 56.6 | % | |||||||||||
Total other noninterest income | 3,450 | 2,946 | 504 | 17.1 | % | |||||||||||
Total noninterest income | $ | 13,578 | $ | 12,174 | $ | 1,404 | 11.5 | % | ||||||||
Six months ended June 30, | ||||||||||||||||
(dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
ATM and interchange fees | $ | 9,985 | $ | 8,745 | $ | 1,240 | 14.2 | % | ||||||||
Service charges on deposit accounts | 8,062 | 7,392 | 670 | 9.1 | % | |||||||||||
Other service fees | 1,390 | 1,344 | 46 | 3.4 | % | |||||||||||
Mortgage banking service fees | 958 | 1,028 | (70 | ) | (6.8 | %) | ||||||||||
Change in value of mortgage servicing rights | (1,197 | ) | 75 | (1,272 | ) | (1696.0 | %) | |||||||||
Total service charges and fees | 19,198 | 18,584 | 614 | 3.3 | % | |||||||||||
Increase in cash value of life insurance | 1,521 | 1,264 | 257 | 20.3 | % | |||||||||||
Asset management and commission income | 1,381 | 1,686 | (305 | ) | (18.1 | %) | ||||||||||
Gain on sale of loans | 987 | 1,292 | (305 | ) | (23.6 | %) | ||||||||||
Lease brokerage income | 459 | 328 | 131 | 39.9 | % | |||||||||||
Sale of customer checks | 275 | 239 | 36 | 15.1 | % | |||||||||||
Gain on sale of foreclosed assets | 199 | 388 | (189 | ) | (48.7 | %) | ||||||||||
Gain (loss) on marketable equity securities | 78 | (70 | ) | 148 | (211.4 | %) | ||||||||||
Loss on disposal of fixed assets | (80 | ) | (54 | ) | (26 | ) | 48.1 | % | ||||||||
Other | 1,424 | 807 | 617 | 76.5 | % | |||||||||||
Total other noninterest income | 6,244 | 5,880 | 364 | 6.2 | % | |||||||||||
Total noninterest income | $ | 25,442 | $ | 24,464 | $ | 978 | 4.0 | % | ||||||||
Nine months ended September 30, | ||||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||||
ATM and interchange fees | $ | 13,335 | $ | 12,472 | $ | 863 | 6.9 | % | ||||||||
Service charges on deposit accounts | 11,407 | 12,102 | (695 | ) | (5.7 | %) | ||||||||||
Other service fees | 2,020 | 2,521 | (501 | ) | (19.9 | %) | ||||||||||
Mortgage banking service fees | 1,527 | 1,561 | (34 | ) | (2.2 | %) | ||||||||||
Change in value of mortgage servicing rights | 38 | (795 | ) | 833 | (104.8 | %) | ||||||||||
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|
|
|
|
|
| |||||||||
Total service charges and fees | 28,327 | 27,861 | 466 | 1.7 | % | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Commissions on sale ofnon-deposit investment products | 2,414 | 1,984 | 430 | 21.7 | % | |||||||||||
Increase in cash value of life insurance | 1,996 | 2,043 | (47 | ) | (2.3 | %) | ||||||||||
Gain on sale of loans | 1,831 | 2,293 | (462 | ) | (20.1 | %) | ||||||||||
Lease brokerage income | 514 | 601 | (87 | ) | (14.5 | %) | ||||||||||
Gain on sale of foreclosed assets | 390 | �� | 308 | 82 | 26.6 | % | ||||||||||
Sale of customer checks | 327 | 287 | 40 | 13.9 | % | |||||||||||
Gain on sale of investment securities | 207 | 961 | (754 | ) | (78.5 | %) | ||||||||||
Loss on disposal of fixed assets | (206 | ) | (61 | ) | (145 | ) | 237.7 | % | ||||||||
Loss on marketable equity securities | (92 | ) | — | (92 | ) | — | ||||||||||
Other | 942 | 1,266 | (324 | ) | (25.6 | %) | ||||||||||
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| |||||||||
Total other noninterest income | 8,323 | 9,682 | (1,359 | ) | (14.0 | %) | ||||||||||
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| |||||||||
Total noninterest income | $ | 36,650 | $ | 37,543 | $ | (893 | ) | (2.4 | %) | |||||||
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|
|
Noninterest income decreased $893,000 (2.4%) to $36,650,000 during the nine months ended September 30, 20182019 as compared to the nine monthsthree and six month periods ended SeptemberJune 30, 2017. The decrease in noninterest income was due to the changes noted in the table above. The $695,000 (5.7%) decrease in service charges on deposit accounts was made up2018.
Three months ended September 30, | ||||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||||
Base salaries, net of deferred loan origination costs | $ | 17,051 | $ | 13,600 | $ | 3,451 | 25.4 | % | ||||||||
Incentive compensation | 3,223 | 2,609 | 614 | 23.5 | % | |||||||||||
Benefits and other compensation costs | 5,549 | 4,724 | 825 | 17.5 | % | |||||||||||
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| |||||||||
Total salaries and benefits expense | 25,823 | 20,933 | 4,890 | 23.4 | % | |||||||||||
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| |||||||||
Occupancy | 3,173 | 2,799 | 374 | 13.4 | % | |||||||||||
Data processing and software | 2,786 | 2,495 | 291 | 11.7 | % | |||||||||||
Merger and acquisition expense | 4,150 | — | 4,150 | — | ||||||||||||
Equipment | 1,750 | 1,816 | (66 | ) | (3.6 | %) | ||||||||||
Intangible amortization | 1,390 | 339 | 1,051 | 310.0 | % | |||||||||||
Advertising | 1,341 | 1,039 | 302 | 29.1 | % | |||||||||||
ATM and POS network charges | 1,195 | 1,425 | (230 | ) | (16.1 | %) | ||||||||||
Professional fees | 929 | 901 | 28 | 3.1 | % | |||||||||||
Telecommunications | 819 | 716 | 103 | 14.4 | % | |||||||||||
Regulatory assessments and insurance | 537 | 427 | 110 | 25.8 | % | |||||||||||
Courier service | 278 | 235 | 43 | 18.3 | % | |||||||||||
Postage | 275 | 325 | (50 | ) | (15.4 | %) | ||||||||||
Operational losses | 217 | 301 | (84 | ) | (27.9 | %) | ||||||||||
Foreclosed assets expense | 93 | 41 | 52 | 126.8 | % | |||||||||||
Provision for (reversal of) foreclosed asset losses | (1 | ) | 134 | (135 | ) | (100.7 | %) | |||||||||
Other miscellaneous expense | 2,623 | 3,296 | (673 | ) | (20.4 | %) | ||||||||||
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| |||||||||
Total other noninterest expense | 21,555 | 16,289 | 5,266 | 32.3 | % | |||||||||||
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|
| |||||||||
Total noninterest expense | $ | 47,378 | $ | 37,222 | $ | 10,156 | 27.3 | % | ||||||||
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| |||||||||
Average full-time equivalent staff | 1,146 | 993 | 153 | 15.4 | % |
Three months ended June 30, | ||||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||||
Base salaries, net of deferred loan origination costs | $ | 17,211 | $ | 14,429 | $ | 2,782 | 19.3 | % | ||||||||
Incentive compensation | 3,706 | 2,159 | 1,547 | 71.7 | % | |||||||||||
Benefits and other compensation costs | 5,802 | 4,865 | 937 | 19.3 | % | |||||||||||
Total salaries and benefits expense | 26,719 | 21,453 | 5,266 | 24.5 | % | |||||||||||
Occupancy | 3,738 | 2,720 | 1,018 | 37.4 | % | |||||||||||
Data processing and software | 3,354 | 2,679 | 675 | 25.2 | % | |||||||||||
Equipment | 1,752 | 1,637 | 115 | 7.0 | % | |||||||||||
Intangible amortization | 1,431 | 339 | 1,092 | 322.1 | % | |||||||||||
Advertising | 1,533 | 1,035 | 498 | 48.1 | % | |||||||||||
ATM and POS network charges | 1,270 | 1,437 | (167 | ) | (11.6 | %) | ||||||||||
Professional fees | 1,057 | 774 | 283 | 36.6 | % | |||||||||||
Telecommunications | 773 | 681 | 92 | 13.5 | % | |||||||||||
Regulatory assessments and insurance | 490 | 417 | 73 | 17.5 | % | |||||||||||
Merger and acquisition expense | — | 601 | (601 | ) | (100.0 | %) | ||||||||||
Postage | 315 | 301 | 14 | 4.7 | % | |||||||||||
Operational losses | 226 | 252 | (26 | ) | (10.3 | %) | ||||||||||
Courier service | 412 | 224 | 188 | 83.9 | % | |||||||||||
Other miscellaneous expense | 3,782 | 3,320 | 462 | 13.9 | % | |||||||||||
Total other noninterest expense | 20,133 | 16,417 | 3,716 | 22.6 | % | |||||||||||
Total noninterest expense | $ | 46,852 | $ | 37,870 | $ | 8,982 | 23.7 | % | ||||||||
Average full time equivalent staff | 1,138 | 1,001 | 137 | 13.7 | % | |||||||||||
Six months ended June 30, | ||||||||||||||||
2019 | 2018 | $ Change | % Change | |||||||||||||
Base salaries, net of deferred loan origination costs | $ | 33,968 | $ | 28,391 | $ | 5,577 | 19.6 | % | ||||||||
Incentive compensation | 6,273 | 4,611 | 1,662 | 36.0 | % | |||||||||||
Benefits and other compensation costs | 11,606 | 10,103 | 1,503 | 14.9 | % | |||||||||||
Total salaries and benefits expense | 51,847 | 43,105 | 8,742 | 20.3 | % | |||||||||||
Occupancy | 7,512 | 5,401 | 2,111 | 39.1 | % | |||||||||||
Data processing and software | 6,703 | 5,193 | 1,510 | 29.1 | % | |||||||||||
Equipment | 3,619 | 3,188 | 431 | 13.5 | % | |||||||||||
Intangible amortization | 2,862 | 678 | 2,184 | 322.1 | % | |||||||||||
Advertising | 2,864 | 1,873 | 991 | 52.9 | % | |||||||||||
ATM and POS network charges | 2,593 | 2,663 | (70 | ) | (2.6 | %) | ||||||||||
Professional fees | 1,896 | 1,546 | 350 | 22.6 | % | |||||||||||
Telecommunications | 1,570 | 1,382 | 188 | 13.6 | % | |||||||||||
Regulatory assessments and insurance | 1,001 | 847 | 154 | 18.2 | % | |||||||||||
Merger and acquisition expense | — | 1,077 | (1,077 | ) | (100.0 | %) | ||||||||||
Postage | 625 | 659 | (34 | ) | (5.2 | %) | ||||||||||
Operational losses | 451 | 546 | (95 | ) | (17.4 | %) | ||||||||||
Courier service | 682 | 491 | 191 | 38.9 | % | |||||||||||
Other miscellaneous expense | 8,140 | 7,383 | 757 | 10.3 | % | |||||||||||
Total other noninterest expense | 40,518 | 32,927 | 7,591 | 23.1 | % | |||||||||||
Total noninterest expense | $ | 92,365 | $ | 76,032 | $ | 16,333 | 21.5 | % | ||||||||
Average full time equivalent staff | 1,137 | 1,001 | 136 | 13.6 | % |
Other noninterest expense increased $5,266,000 (32.3%) to $21,555,000 during the three months ended September 30, 20182019 compared to the three months ended SeptemberJune 30, 2017.2018. The increase in other noninterest expense was due primarily to the changes noted in the table above. During the three months ended September 30, 2018, the Company incurred $4,150,000 of mergerincreased overhead operating costs related expense associated with the merger with FNB Bancorp.
Nine months ended September 30, | ||||||||||||||||
2018 | 2017 | $ Change | % Change | |||||||||||||
Base salaries, net of deferred loan origination costs | $ | 45,442 | $ | 40,647 | $ | 4,795 | 11.8 | % | ||||||||
Incentive compensation | 7,834 | 6,980 | 854 | 12.2 | % | |||||||||||
Benefits and other compensation costs | 15,652 | 14,693 | 959 | 6.5 | % | |||||||||||
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| |||||||||
Total salaries and benefits expense | 68,928 | 62,320 | 6,608 | 10.6 | % | |||||||||||
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| |||||||||
Occupancy | 8,574 | 8,196 | 378 | 4.6 | % | |||||||||||
Data processing and software | 7,979 | 7,332 | 647 | 8.8 | % | |||||||||||
Merger and acquisition expense | 5,227 | — | 5,227 | — | ||||||||||||
Equipment | 4,938 | 5,344 | (406 | ) | (7.6 | %) | ||||||||||
ATM and POS network charges | 3,858 | 3,353 | 505 | 15.1 | % | |||||||||||
Advertising | 3,214 | 3,173 | 41 | 1.3 | % | |||||||||||
Professional fees | 2,475 | 2,357 | 118 | 5.0 | % | |||||||||||
Telecommunications | 2,201 | 2,027 | 174 | 8.6 | % | |||||||||||
Regulatory assessments and insurance | 1,384 | 1,252 | 132 | 10.5 | % | |||||||||||
Intangible amortization | 2,068 | 1,050 | 1,018 | 97.0 | % | |||||||||||
Postage | 934 | 1,058 | (124 | ) | (11.7 | %) | ||||||||||
Courier service | 769 | 752 | 17 | 2.3 | % | |||||||||||
Operational losses | 763 | 1,166 | (403 | ) | (34.6 | %) | ||||||||||
Foreclosed assets expense | 297 | 117 | 180 | 153.8 | % | |||||||||||
Provision for (reversal of) foreclosed asset losses | 89 | 162 | (73 | ) | (45.1 | %) | ||||||||||
Other miscellaneous expense | 9,712 | 9,289 | 423 | 4.6 | % | |||||||||||
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| |||||||||
Total other noninterest expense | 54,482 | 46,628 | 7,854 | 16.8 | % | |||||||||||
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| |||||||||
Total noninterest expense | $ | 123,410 | $ | 108,948 | $ | 14,462 | 13.3 | % | ||||||||
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| |||||||||
Average full-time equivalent staff | 1,050 | 1,005 | 45 | 4.5 | % |
Salary and benefit expenses increased $6,608,000 (10.6%) to $68,928,000 during the nine months ended September 30, 2018 compared to $62,320,000 during the nine months ended September 30, 2017. Base salaries, net of deferred loan origination costs increased $4,795,000 (11.8%) to $45,442,000. The increase in base salaries was primarily due to the additional full-time equivalent employees acquired withbranches as a result of the FNBB merger. Average full-time equivalent employeesprior year acquisition of FNB Bancorp. Highlighting those increases were intangible amortization, occupancy, data processing and software, and advertising expenses, which increased by 45 or 4.5% during the comparable nine month periods. In addition, increases in base salaries due to annual merit increases$1,092,000, $1,018,000, $675,000 and the addition of employees with base salaries above the average base salary also contributed to the increase. Commissions and incentive compensation increased $854,000 (12.2%) to $7,834,000 during the nine months ended September 30, 2018$498,000, respectively, as compared to the prioryear-to-date period. Benefits year quarter. The increases in noninterest expenses were partially offset by decreased merger & other compensationacquisition expenses of $601,000 during the comparable quarterly periods.
Other noninterest expense increased $7,854,000 (16.8%) to $54,482,000$728,000 during the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017. The increase in other noninterest expense was due to the changes noted in the table above. During the nine months ended September 30, 2018, the Company incurred $5,227,000 of merger related expense associated with the merger with FNB Bancorp.
Income Taxes
The effective combined Federal and State income tax rate on income was 28.6% and 28.2% for the three and nine monthssix month periods ended SeptemberJune 30, 2018, and 37.5% and 37.1% for the three and nine months ending September 30, 2017. This decrease in effective combined Federal and State income tax rate was due primarily to a decrease in the Federal tax rate from 35% to 21% effective January 1, 2018.
Debt
2018.
(dollars in thousands) | September 30, 2018 | December 31, 2017 | ||||||||||||||
Fair Value | % | Fair Value | % | |||||||||||||
Debt securities available for sale: | ||||||||||||||||
Obligations of U.S. government and agencies | $ | 638,876 | 60.5 | % | $ | 604,789 | 83.1 | % | ||||||||
Obligations of states and political subdivisions | 123,420 | 11.7 | % | 123,156 | 16.9 | % | ||||||||||
Corporate bonds | 4,431 | 0.4 | % | — | 0.0 | % | ||||||||||
Asset backed securities | 289,233 | 27.4 | % | — | 0.0 | % | ||||||||||
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| |||||||||
Total debt securities available for sale | $ | 1,055,960 | 100.0 | % | $ | 727,945 | 100.0 | % | ||||||||
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2018:
(dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||||||||||
Fair Value | % | Fair Value | % | |||||||||||||
Debt securities available for sale: | ||||||||||||||||
Obligations of U.S. government agencies | $ | 630,911 | 55.6 | % | $ | 629,981 | 56.5 | % | ||||||||
Obligations of states and political subdivisions | 125,980 | 11.1 | % | 126,072 | 11.3 | % | ||||||||||
Corporate bonds | 4,521 | 0.4 | % | 4,478 | 0.4 | % | ||||||||||
Asset backed securities | 372,582 | 32.9 | % | 354,505 | 31.8 | % | ||||||||||
Total debt securities available for sale | $ | 1,133,994 | 100.0 | % | $ | 1,115,036 | 100.0 | % | ||||||||
$474,000.
(dollars in thousands) | September 30, 2018 | December 31, 2017 | ||||||||||||||
Cost Basis | % | Cost Basis | % | |||||||||||||
Securities held to maturity: | ||||||||||||||||
Obligations of U.S. government agencies | $ | 445,309 | 96.8 | % | $ | 500,271 | 97.2 | % | ||||||||
Obligations of states and political subdivisions | 14,588 | 3.20 | % | 14,573 | 2.80 | % | ||||||||||
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|
| |||||||||
Total securities held to maturity | $ | 459,897 | 100 | % | $ | 514,844 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
2018:
(dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||||||||||
Amortized Cost | % | Amortized Cost | % | |||||||||||||
Debt securities held to maturity: | ||||||||||||||||
Obligations of U.S. government and agencies | $ | 398,714 | 96.7 | % | $ | 430,343 | 96.7 | % | ||||||||
Obligations of states and political subdivisions | 13,810 | 3.3 | % | 14,593 | 3.3 | % | ||||||||||
Total debt securities held to maturity | $ | 412,524 | 100 | % | $ | 444,936 | 100.0 | % | ||||||||
(dollars in thousands) | September 30, 2018 | December 31, 2017 | ||||||||||||||
Real estate mortgage | $ | 3,132,202 | 77.8 | % | $ | 2,300,322 | 76.3 | % | ||||||||
Consumer | 421,285 | 10.5 | % | 356,874 | 11.8 | % | ||||||||||
Commercial | 289,647 | 7.1 | % | 220,412 | 7.3 | % | ||||||||||
Real estate construction | 184,302 | 4.6 | % | 137,557 | 4.6 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total loans | $ | 4,027,436 | 100 | % | $ | 3,015,165 | 100 | % | ||||||||
|
|
|
|
|
|
|
|
(dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||||||||||
Real estate mortgage | $ | 3,178,730 | 77.5 | % | $ | 3,143,100 | 78.1 | % | ||||||||
Consumer | 434,388 | 10.6 | % | 418,982 | 10.4 | % | ||||||||||
Commercial | 276,045 | 6.7 | % | 276,548 | 6.9 | % | ||||||||||
Real estate construction | 214,524 | 5.2 | % | 183,384 | 4.6 | % | ||||||||||
Total loans | $ | 4,103,687 | 100 | % | $ | 4,022,014 | 100 | % | ||||||||
(dollars in thousands) | September 30, 2018 | December 31, 2017 | ||||||
Performing nonaccrual loans | $ | 22,429 | $ | 20,937 | ||||
Nonperforming nonaccrual loans | 3,671 | 3,176 | ||||||
|
|
|
| |||||
Total nonaccrual loans | 26,100 | 24,113 | ||||||
Originated and PNCI loans 90 days past due and still accruing | 1,048 | 281 | ||||||
|
|
|
| |||||
Total nonperforming loans | 27,148 | 24,394 | ||||||
Foreclosed assets | 1,832 | 3,226 | ||||||
|
|
|
| |||||
Total nonperforming assets | $ | 28,980 | $ | 27,620 | ||||
|
|
|
| |||||
Nonperforming assets to total assets | 0.46 | % | 0.58 | % | ||||
Nonperforming loans to total loans | 0.67 | % | 0.81 | % | ||||
Allowance for loan losses to nonperforming loans | 116 | % | 124 | % | ||||
Allowance for loan losses, unamortized loan fees, and discounts to loan principal balances owed | 2.12 | % | 1.77 | % |
The following table set forth the amount
(dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||
Performing nonaccrual loans | $ | 17,825 | $ | 22,689 | ||||
Nonperforming nonaccrual loans | 3,844 | 4,805 | ||||||
Total nonaccrual loans | 21,669 | 27,494 | ||||||
Loans 90 days past due and still accruing | 22 | — | ||||||
Total nonperforming loans | 21,691 | 27,494 | ||||||
Foreclosed assets | 1,548 | 2,280 | ||||||
Total nonperforming assets | $ | 23,239 | $ | 29,774 | ||||
Nonperforming assets to total assets | 0.36 | % | 0.47 | % | ||||
Nonperforming loans to total loans | 0.53 | % | 0.68 | % | ||||
Allowance for loan losses to nonperforming loans | 152 | % | 119 | % | ||||
Allowance for loan losses, unamortized loan fees, and discounts to loan principal balances owed | 1.97 | % | 2.11 | % |
June 30, 2019 | ||||||||||||||||
(dollars in thousands) | Originated | PNCI | PCI | Total | ||||||||||||
Performing nonaccrual loans | $ | 11,773 | $ | 3,410 | $ | 2,642 | $ | 17,825 | ||||||||
Nonperforming nonaccrual loans | 2,360 | 1,087 | 397 | 3,844 | ||||||||||||
Total nonaccrual loans | 14,133 | 4,497 | 3,039 | 21,669 | ||||||||||||
Loans 90 days past due and still accruing | 22 | — | — | 22 | ||||||||||||
Total nonperforming loans | 14,155 | 4,497 | 3,039 | 21,691 | ||||||||||||
Foreclosed assets | 1,103 | — | 445 | 1,548 | ||||||||||||
Total nonperforming assets | $ | 15,258 | $ | 4,497 | $ | 3,484 | $ | 23,239 | ||||||||
U.S. government, including its agencies and its government-sponsored agencies, guaranteed portion of nonperforming loans | $ | 790 | $ | — | $ | 294 | $ | 1,084 | ||||||||
Nonperforming assets to total assets | 0.24 | % | 0.07 | % | 0.05 | % | 0.36 | % | ||||||||
Nonperforming loans to total loans | 0.35 | % | 0.11 | % | 0.07 | % | 0.53 | % | ||||||||
Allowance for loan losses to nonperforming loans | 228 | % | 13 | % | 0.33 | % | 152 | % | ||||||||
Allowance for loan losses, unamortized loan fees, and discounts to loan principal balances owed | 1.29 | % | 3.60 | % | 36.11 | % | 1.97 | % |
December 31, 2017 | ||||||||||||||||
(dollars in thousands) | Originated | PNCI | PCI | Total | ||||||||||||
Performing nonaccrual loans | $ | 12,942 | $ | 1,305 | $ | 6,690 | $ | 20,937 | ||||||||
Nonperforming nonaccrual loans | 2,520 | 158 | 498 | 3,176 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total nonaccrual loans | 15,462 | 1,463 | 7,188 | 24,113 | ||||||||||||
Originated loans 90 days past due and still accruing | — | 281 | — | 281 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total nonperforming loans | 15,462 | 1,744 | 7,188 | 24,394 | ||||||||||||
Foreclosed assets | 1,836 | — | 1,390 | 3,226 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total nonperforming assets | $ | 17,298 | $ | 1,744 | $ | 8,578 | $ | 27,620 | ||||||||
|
|
|
|
|
|
|
| |||||||||
U.S. government, including its agencies and its government-sponsored agencies, guaranteed portion of nonperforming loans | $ | 358 | $ | 358 | ||||||||||||
Nonperforming assets to total assets | 0.36 | % | 0.04 | % | 0.18 | % | 0.58 | % | ||||||||
Nonperforming loans to total loans | 0.57 | % | 0.56 | % | 46.20 | % | 0.81 | % | ||||||||
Allowance for loan losses to nonperforming loans | 188 | % | 53 | % | 4 | % | 124 | % | ||||||||
Allowance for loan losses, unamortized loan fees, and discounts to loan principal balances owed | 1.32 | % | 2.22 | % | 34.05 | % | 1.77 | % |
December 31, 2018 | ||||||||||||||||
(dollars in thousands) | Originated | PNCI | PCI | Total | ||||||||||||
Performing nonaccrual loans | $ | 16,573 | $ | 1,269 | $ | 4,847 | $ | 22,689 | ||||||||
Nonperforming nonaccrual loans | 2,843 | 1,589 | 373 | 4,805 | ||||||||||||
Total nonaccrual loans | 19,416 | 2,858 | 5,220 | 27,494 | ||||||||||||
Loans 90 days past due and still accruing | — | — | — | — | ||||||||||||
Total nonperforming loans | 19,416 | 2,858 | 5,220 | 27,494 | ||||||||||||
Foreclosed assets | 1,490 | — | 790 | 2,280 | ||||||||||||
Total nonperforming assets | $ | 20,906 | $ | 2,858 | $ | 6,010 | $ | 29,774 | ||||||||
U.S. government, including its agencies and its government-sponsored agencies, guaranteed portion of nonperforming loans | $ | 800 | $ | — | $ | — | $ | 800 | ||||||||
Nonperforming assets to total assets | 0.33 | % | 0.04 | % | 0.09 | % | 0.47 | % | ||||||||
Nonperforming loans to total loans | 0.48 | % | 0.07 | % | 0.13 | % | 0.68 | % | ||||||||
Allowance for loan losses to nonperforming loans | 164 | % | 23.3 | % | 2.34 | % | 119 | % | ||||||||
Allowance for loan losses, unamortized loan fees, and discounts to loan principal balances owed | 1.39 | % | 3.48 | % | 33.69 | % | 2.11 | % |
(in thousands): | Balance at September 30, 2018 | Additions | Advances/ Paydowns, net | Charge-offs/ Write-downs | Transfers to Foreclosed Assets | Category Changes | Balance at June 30, 2018 | |||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||||
Residential | $ | 3,038 | $ | 116 | $ | (73 | ) | $ | — | $ | — | $ | (1,212 | ) | $ | 4,207 | ||||||||||||
Commercial | 15,129 | 2,688 | (418 | ) | — | — | 974 | 11,885 | ||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Home equity lines | 2,133 | 549 | (1,053 | ) | — | — | — | 2,637 | ||||||||||||||||||||
Home equity loans | 3,089 | 762 | (76 | ) | (49 | ) | (511 | ) | 238 | 2,725 | ||||||||||||||||||
Other consumer | 8 | 1 | (1 | ) | 8 | |||||||||||||||||||||||
Commercial | 3,751 | 513 | (236 | ) | (484 | ) | — | — | 3,958 | |||||||||||||||||||
Construction: | ||||||||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total nonperforming loans | 27,148 | 4,629 | (1,857 | ) | (533 | ) | (511 | ) | — | 25,420 | ||||||||||||||||||
Foreclosed assets | 1,832 | 25 | (79 | ) | 1 | 511 | — | 1,374 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total nonperforming assets | $ | 28,980 | $ | 4,654 | $ | (1,936 | ) | $ | (532 | ) | $ | — | $ | — | $ | 26,794 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
(in thousands): | Balance at June 30, 2019 | New NPA / Valuation Adjustments | Pay-downs /Sales /Upgrades | Charge-offs/ Write-downs | Transfers to Foreclosed Assets | Balance at March 31, 2019 | ||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||
Residential | $ | 4,350 | $ | 2,187 | $ | (503 | ) | $ | (2 | ) | $ | — | $ | 2,668 | ||||||||||
Commercial | 8,678 | 579 | (207 | ) | — | — | 8,306 | |||||||||||||||||
Consumer | ||||||||||||||||||||||||
Home equity lines | 2,476 | 67 | (25 | ) | — | — | 2,434 | |||||||||||||||||
Home equity loans | 2,047 | 168 | (708 | ) | — | — | 2,587 | |||||||||||||||||
Other consumer | 74 | 81 | (40 | ) | (37 | ) | — | 70 | ||||||||||||||||
Commercial | 4,066 | 1,126 | (422 | ) | (138 | ) | — | 3,500 | ||||||||||||||||
Construction: | ||||||||||||||||||||||||
Residential | — | — | — | — | — | — | ||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||||||
Total nonperforming loans | 21,691 | 4,208 | (1,905 | ) | (177 | ) | — | 19,565 | ||||||||||||||||
Foreclosed assets | 1,548 | (63 | ) | (704 | ) | — | — | 2,315 | ||||||||||||||||
Total nonperforming assets | $ | 23,239 | $ | 4,145 | $ | (2,609 | ) | $ | (177 | ) | $ | — | $ | 21,880 | ||||||||||
The $4,629,000 in$704,000, that were offset by new nonperforming loans of $4,208,000 and an increase in the valuation of $63,000 in foreclosed property.
is sufficient as of June 30, 2019.
2019
recoveries.
(in thousands): | Balance at September 30, 2018 | Additions | Advances/ Paydowns, net | Charge-offs/ Write-downs | Transfers to Foreclosed Assets | Category Changes | Balance at December 31, 2017 | |||||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||||||
Residential | $ | 3,038 | $ | 903 | $ | (505 | ) | $ | (51 | ) | $ | — | $ | (1,048 | ) | $ | 3,739 | |||||||||||
Commercial | 15,129 | 4,257 | (2,005 | ) | (15 | ) | — | 1,072 | 11,820 | |||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||
Home equity lines | 2,133 | 2,153 | (3,171 | ) | (104 | ) | — | (227 | ) | 3,482 | ||||||||||||||||||
Home equity loans | 3,089 | 1,973 | (260 | ) | (50 | ) | (511 | ) | 301 | 1,636 | ||||||||||||||||||
Other consumer | 8 | 114 | (30 | ) | (87 | ) | — | — | 11 | |||||||||||||||||||
Commercial | 3,751 | 1,871 | (985 | ) | (743 | ) | — | (98 | ) | 3,706 | ||||||||||||||||||
Construction: | — | — | — | — | — | |||||||||||||||||||||||
Residential | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total nonperforming loans | 27,148 | 11,271 | (6,956 | ) | (1,050 | ) | (511 | ) | — | 24,394 | ||||||||||||||||||
Foreclosed assets | 1,832 | 25 | (1,841 | ) | (89 | ) | 511 | — | 3,226 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total nonperforming assets | $ | 28,980 | $ | 11,296 | $ | (8,797 | ) | $ | (1,139) | $ | — | $ | — | $ | 27,620 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
(in thousands): | Balance at June 30, 2019 | New NPA / Valuation Adjustments | Pay-downs /Sales /Upgrades | Charge-offs/ Write-downs | Transfers to Foreclosed Assets | Balance at December 31, 2018 | ||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||||||
Residential | $ | 4,350 | $ | 2,187 | $ | (573 | ) | $ | (2 | ) | $ | (116 | ) | $ | 2,854 | |||||||||
Commercial | 8,678 | 846 | (7,214 | ) | — | — | 15,046 | |||||||||||||||||
Consumer | ||||||||||||||||||||||||
Home equity lines | 2,476 | 91 | (364 | ) | — | — | 2,749 | |||||||||||||||||
Home equity loans | 2,047 | 200 | (1,116 | ) | — | — | 2,963 | |||||||||||||||||
Other consumer | 74 | 145 | (41 | ) | (37 | ) | — | 7 | ||||||||||||||||
Commercial | 4,066 | 1,399 | (581 | ) | (627 | ) | — | 3,875 | ||||||||||||||||
Construction: | ||||||||||||||||||||||||
Residential | — | — | — | — | — | — | ||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||||||
Total nonperforming loans | 21,691 | 4,868 | (9,889 | ) | (666 | ) | (116 | ) | 27,494 | |||||||||||||||
Foreclosed assets | 1,548 | 35 | (883 | ) | — | 116 | 2,280 | |||||||||||||||||
Total nonperforming assets | $ | 23,239 | $ | 4,903 | $ | (10,772 | ) | $ | (666 | ) | $ | — | $ | 29,774 | ||||||||||
$666,000 on nonperforming loans, and sales of foreclosed assets of $883,000, that were partially offset by new nonperforming assets of $4,902,000.
During2019
Total charge-offs were generally comprised of individual charges of less than $250,000 each. Generally losses are triggered bynon-performance by the borrower and calculated based on any difference between the current loan amount and the current value of the underlying collateral less any estimated costs associated with the disposition of the collateral.
Allowance for Loan Losses
recoveries.
(dollars in thousands) | September 30, 2018 | December 31, 2017 | ||||||
Allowance for originated and PNCI loan losses: | ||||||||
Environmental factors allowance | $ | 13,122 | $ | 10,252 | ||||
Formula allowance | 15,743 | 17,100 | ||||||
|
|
|
| |||||
Total allowance for originated and PNCI loan losses | 28,865 | 27,352 | ||||||
Allowance for impaired loans | 2,628 | 2,699 | ||||||
Allowance for PCI loan losses | 110 | 272 | ||||||
|
|
|
| |||||
Total allowance for loan losses | $ | 31,603 | $ | 30,323 | ||||
|
|
|
| |||||
Allowance for loan losses to loans | 0.78 | % | 1.01 | % |
(dollars in thousands) | 2019 | 2018 | ||||||
Allowance for originated and PNCI loan losses: | ||||||||
Environmental factors allowance | $ | 12,455 | $ | 11,577 | ||||
Formula allowance | 17,961 | 18,689 | ||||||
Total allowance for originated and PNCI loan losses | 30,416 | 30,266 | ||||||
Allowance for impaired loans | 2,442 | 2,194 | ||||||
Allowance for PCI loan losses | 10 | 122 | ||||||
Total allowance for loan losses | $ | 32,868 | $ | 32,582 | ||||
Allowance for loan losses to loans | 0.80 | % | 0.81 | % |
(in thousands) | September 30, 2018 | December 31, 2017 | ||||||||||||||
Real estate mortgage | $ | 15,353 | 48.6 | % | $ | 13,758 | 45.4 | % | ||||||||
Consumer | 7,440 | 23.5 | % | 8,227 | 27.1 | % | ||||||||||
Commercial | 6,224 | 19.7 | % | 6,512 | 21.5 | % | ||||||||||
Real estate construction | 2,586 | 8.2 | % | 1,826 | 6.0 | % | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total allowance for loan losses | $ | 31,603 | 100.0 | % | $ | 30,323 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|
Real estate mortgage | $ | 14,675 | 44.7 | % | $ | 15,620 | 47.9 | % | ||||||||
Consumer | 8,552 | 26.0 | % | 8,375 | 25.7 | % | ||||||||||
Commercial | 6,745 | 20.5 | % | 6,090 | 18.7 | % | ||||||||||
Real estate construction | 2,896 | 8.8 | % | 2,497 | 7.7 | % | ||||||||||
Total allowance for loan losses | $ | 32,868 | 100.0 | % | $ | 32,582 | 100.0 | % | ||||||||
Real estate mortgage | $ | 3,178,730 | 0.46 | % | $ | 3,143,100 | 0.50 | % | ||||||||
Consumer | 434,388 | 1.97 | % | 418,982 | 2.00 | % | ||||||||||
Commercial | 276,045 | 2.44 | % | 276,548 | 2.20 | % | ||||||||||
Real estate construction | 214,524 | 1.35 | % | 183,384 | 1.36 | % | ||||||||||
Total allowance for loan losses | $ | 4,103,687 | 0.80 | % | $ | 4,022,014 | 0.81 | % | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Allowance for loan losses: | ||||||||||||||||
Balance at beginning of period | $ | 29,524 | $ | 31,017 | $ | 30,323 | $ | 32,503 | ||||||||
Provision for loan losses | 2,651 | (796 | ) | 1,777 | (2,353 | ) | ||||||||||
Loans charged off: | ||||||||||||||||
Real estate mortgage: | ||||||||||||||||
Residential | (25 | ) | — | (77 | ) | — | ||||||||||
Commercial | — | (150 | ) | (15 | ) | (150 | ) | |||||||||
Consumer: | ||||||||||||||||
Home equity lines | (172 | ) | (13 | ) | (276 | ) | (84 | ) | ||||||||
Home equity loans | (23 | ) | (206 | ) | (23 | ) | (237 | ) | ||||||||
Other consumer | (229 | ) | (308 | ) | (597 | ) | (482 | ) | ||||||||
Commercial | (693 | ) | (764 | ) | (952 | ) | (897 | ) | ||||||||
Construction: | ||||||||||||||||
Residential | — | (1,071 | ) | — | (1,071 | ) | ||||||||||
Commercial | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total loans charged off | (1,142 | ) | (2,512 | ) | (1,940 | ) | (2,921 | ) | ||||||||
Recoveries of previouslycharged-off loans: | ||||||||||||||||
Real estate mortgage: | ||||||||||||||||
Residential | — | — | — | — | ||||||||||||
Commercial | 15 | 17 | 51 | 127 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines | 151 | 252 | 677 | 298 | ||||||||||||
Home equity loans | 139 | 13 | 176 | 25 | ||||||||||||
Other consumer | 63 | 68 | 208 | 209 | ||||||||||||
Commercial | 202 | 84 | 331 | 254 | ||||||||||||
Construction: | ||||||||||||||||
Residential | — | — | — | — | ||||||||||||
Commercial | — | — | — | 1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total recoveries of previously charged off loans | 570 | 434 | 1,443 | 914 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net (charge-offs) recoveries | (572 | ) | (2,078 | ) | (497 | ) | (2,007 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Balance at end of period | $ | 31,603 | $ | 28,143 | $ | 31,603 | $ | 28,143 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Average total loans | $ | 4,028,462 | $ | 2,878,944 | $ | 3,390,447 | $ | 2,807,453 | ||||||||
Ratios (annualized): | ||||||||||||||||
Net charge-offs (recoveries) during period to average loans outstanding during period | 0.06 | % | 0.29 | % | 0.02 | % | 0.10 | % | ||||||||
Provision for (benefit from) loan losses to average loans outstanding during period | 0.26 | % | (0.11 | )% | 0.07 | % | (0.11 | )% |
(in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Allowance for loan losses: | ||||||||||||||||
Balance at beginning of period | $ | 32,064 | $ | 29,973 | $ | 32,582 | $ | 30,323 | ||||||||
Reversal of provision for loan losses | 537 | (638 | ) | (1,063 | ) | (874 | ) | |||||||||
Loans charged off: | ||||||||||||||||
Real estate mortgage: | ||||||||||||||||
Residential | (2 | ) | (51 | ) | (2 | ) | (52 | ) | ||||||||
Commercial | — | (15 | ) | — | (15 | ) | ||||||||||
Consumer: | ||||||||||||||||
Home equity lines | — | (24 | ) | — | (104 | ) | ||||||||||
Home equity loans | — | — | — | — | ||||||||||||
Other consumer | (153 | ) | (174 | ) | (360 | ) | (368 | ) | ||||||||
Commercial | (138 | ) | (54 | ) | (657 | ) | (259 | ) | ||||||||
Construction: | ||||||||||||||||
Residential | — | — | — | — | ||||||||||||
Commercial | — | — | — | — | ||||||||||||
Total loans charged off | (293 | ) | (318 | ) | (1,019 | ) | (798 | ) | ||||||||
Recoveries of previously charged-off loans: | ||||||||||||||||
Real estate mortgage: | ||||||||||||||||
Residential | 3 | — | 5 | — | ||||||||||||
Commercial | 10 | 21 | 1,391 | 36 | ||||||||||||
Consumer: | ||||||||||||||||
Home equity lines | 183 | 317 | 278 | 526 | ||||||||||||
Home equity loans | 171 | 23 | 258 | 37 | ||||||||||||
Other consumer | 108 | 66 | 183 | 144 | ||||||||||||
Commercial | 85 | 80 | 253 | 130 | ||||||||||||
Construction: | ||||||||||||||||
Residential | — | — | — | — | ||||||||||||
Commercial | — | — | — | — | ||||||||||||
Total recoveries of previously charged off loans | 560 | 507 | 2,368 | 873 | ||||||||||||
Net recoveries (charge-offs) | 267 | 189 | 1,349 | 75 | ||||||||||||
Balance at end of period | $ | 32,868 | $ | 29,524 | $ | 32,868 | $ | 29,524 | ||||||||
Average total loans | $ | 4,044,044 | $ | 3,104,126 | $ | 4,033,954 | $ | 3,066,152 | ||||||||
Ratios (annualized): | ||||||||||||||||
Net charge-offs (recoveries) during period to average loans outstanding during period | (0.03 | )% | (0.02 | )% | (0.13 | )% | (0.01 | )% | ||||||||
Benefit from reversal of loan losses to average loans outstanding during period | 0.05 | % | (0.08 | )% | (0.11 | )% | (0.11 | )% |
Balance at September 30, 2018 | Additions | Advances/ Capitalized Costs/Other | Sales | Valuation Adjustments | Balance at December 31, 2017 | |||||||||||||||||||
Land & Construction | $ | 445 | $ | — | $ | — | $ | (1,341 | ) | $ | — | $ | 1,786 | |||||||||||
Residential real estate | 1,294 | 536 | — | (356 | ) | (72 | ) | 1,186 | ||||||||||||||||
Commercial real estate | 93 | — | — | (144 | ) | (17 | ) | 254 | ||||||||||||||||
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Total foreclosed assets | $ | 1,832 | $ | 536 | $ | — | $ | (1,841 | ) | $ | (89 | ) | $ | 3,226 | ||||||||||
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Premises and Equipment
Premises and equipment were comprised of:
September 30, 2018 | December 31, 2017 | |||||||
(In thousands) | ||||||||
Land & land improvements | $ | 28,958 | $ | 9,959 | ||||
Buildings | 64,178 | 50,340 | ||||||
Furniture and equipment | 44,271 | 35,939 | ||||||
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137,407 | 96,238 | |||||||
Less: Accumulated depreciation | (49,073 | ) | (40,644 | ) | ||||
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88,334 | 55,594 | |||||||
Construction in progress | 956 | 2,148 | ||||||
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Total premises and equipment | $ | 89,290 | $ | 57,742 | ||||
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indicated:
(in thousands) | Balance at June 30, 2019 | Sales | Valuation Adjustments | Transfers from Loans | Balance at December 31, 2018 | |||||||||||||||
Land & Construction | $ | 445 | $ | — | $ | — | $ | — | $ | 445 | ||||||||||
Residential real estate | 1,015 | (883 | ) | 40 | 116 | 1,742 | ||||||||||||||
Commercial real estate | 88 | — | (5 | ) | — | 93 | ||||||||||||||
Total foreclosed assets | $ | 1,548 | $ | (883 | ) | $ | 35 | $ | 116 | $ | 2,280 | |||||||||
Intangible Assets
Intangible assets at were comprised of the following as of the dates indicated:
September 30, 2018 | December 31, 2017 | |||||||
(In thousands) | ||||||||
Core-deposit intangible | $ | 30,711 | $ | 5,174 | ||||
Goodwill | 220,972 | 64,311 | ||||||
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Total intangible assets | $ | 251,683 | $ | 69,485 | ||||
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The core-deposit intangible assets resulted from the Bank’s acquisition of FNB Bancorp (FNBB) on July 6, 2018, three bank branches from Bank of America on March 18, 2016, North Valley Bancorp in 2014, and Citizens Bank of Northern California in 2011. The goodwill intangible asset includes $156,661,000 from the acquisition of FNBB, $849,000 from the acquisition of three bank branches from Bank of America on March 18, 2016, $47,943,000 from the North Valley Bancorp acquisition in 2014, and $15,519,000 from the North State National Bank acquisition in 2003.
Amortization of core deposit intangible assets amounting to $1,390,000 and $339,000 was recorded during the three months ended September 30, 2018 and 2017, respectively. Amortization of core deposit intangible assets amounting to $2,068,000 and $1,050,000 was recorded during the nine months ended September 30, 2018 and 2017, respectively.
Investment in Low Income Housing Tax Credit Funds
During the nine months ended September 30, 2018, the Company’s investment in low income housing tax credit funds, recorded in other assets, increased $6,718,000 to $23,572,000 due to capital contributions and the acquisition of $2,794,000 in low income housing tax credit funds from FNBB. During the nine months ended September 30, 2018, the Company also made capital contributions to several of its existing low income housing tax credit fund investments reducing its commitment for future capital contributions to $6,725,000 at September 30, 2018. This commitment for low income housing tax credit funds is recorded in other liabilities.
Deposits
During the nine months ended September 30, 2018,2019, the Company’s deposits increased $1,083,986,000decreased $88,089,000 and $24,293,000 respectively to $5,093,117,000. In addition to the $991,935,000 in acquired deposits, organic deposit growth for the first nine months of 2018 was $92,051,000 or 3.1% on an annualized basis.$5,342,173,000. Included in the SeptemberJune 30, 20182019 and December 31, 20172018 certificate of deposit balances are $69,000,000$50,000,000 and $50,000,000,$60,000,000, respectively, from the State of California. The Company participates in a deposit program offered by the State of California whereby the stateState may make deposits at the Company’s request subject to collateral and creditworthiness constraints. The negotiated rates on these stateState deposits are generally more favorable than other wholesale funding sources available to the Company..
September 30, 2018 | December 31, 2017 | |||||||||||||||
Ratio | Minimum Regulatory Requirement | Ratio | Minimum Regulatory Requirement | |||||||||||||
Total capital | 13.90 | % | 9.875 | % | 14.07 | % | 9.25 | % | ||||||||
Tier I capital | 13.19 | % | 7.875 | % | 13.18 | % | 7.25 | % | ||||||||
Common equity Tier 1 capital | 12.03 | % | 6.375 | % | 11.72 | % | 5.75 | % | ||||||||
Leverage | 10.66 | % | 4.00 | % | 10.80 | % | 4.00 | % |
June 30, 2019 | December 31, 2018 | |||||||||||||||
Ratio | Minimum Regulatory Requirement | Ratio | Minimum Regulatory Requirement | |||||||||||||
Total capital | 14.93 | % | 10.50 | % | 14.40 | % | 9.25 | % | ||||||||
Tier I capital | 14.19 | % | 8.50 | % | 13.66 | % | 7.25 | % | ||||||||
Common equity Tier 1 capital | 13.03 | % | 7.00 | % | 12.49 | % | 5.75 | % | ||||||||
Leverage | 11.08 | % | 4.00 | % | 10.68 | % | 4.00 | % |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. Controls and Procedures
2018.
Item 4. | Controls and Procedures |
2019.
Period | (a) Total number of shares purchased(1) | (b) Average price paid per share | (c) Total number of shares purchased as of part of publicly announced plans or programs | (d) Maximum number shares that may yet be purchased under the plans or programs(2) | ||||||||||
July1-31, 2018 | 49,996 | $ | 37.72 | — | 333,400 | |||||||||
August1-31, 2018 | 41,485 | $ | 38.95 | — | 333,400 | |||||||||
September1-30, 2018 | 11,211 | $ | 39.15 | — | 333,400 | |||||||||
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Total | 102,692 | $ | 38.37 | — | 333,400 |
Period | (a) Total number of shares purchased (1) | (b) Average price paid per share | (c) Total number of shares purchased as of part of publicly announced plans or programs | (d) Maximum number of shares that may yet be purchased under the plans or programs (2) | ||||||||||||
April 1-30, 2019 | 38,087 | $ | 39.91 | — | 303,434 | |||||||||||
May 1-31, 2019 | 12,487 | $ | 39.88 | — | 303,434 | |||||||||||
June 1-30, 2019 | 43,181 | $ | 38.28 | — | 303,434 | |||||||||||
Total | 93,755 | $ | 39.16 | — | 303,434 |
(1) | Includes shares purchased by the Company’s Employee Stock Ownership Plan and pursuant to various other equity incentive plans. See Note |
(2) | Does not include shares that may be purchased by the Company’s Employee Stock Ownership Plan and pursuant to various other equity incentive plans. |
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Exhibit No. | Exhibit | |||
31.1 | ||||
31.2 | ||||
32.1 | ||||
32.2 | ||||
99.1* | ||||
99.2* | ||||
99.3* | ||||
101.INS | XBRL Instance Document | |||
101.SCH | XBRL Taxonomy Extension Schema Document | |||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
* | Management contract or compensatory plan or arrangement. |
TRICO BANCSHARES | ||||||
(Registrant) | ||||||
Date: | /s/ Peter G. Wiese | |||||
Peter G. Wiese | ||||||
Executive Vice President and Chief Financial Officer | ||||||
(Duly authorized officer and principal financial and chief accounting officer) |
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