☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) | |
OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the Quarterly Period Ended June 30, 2019 | ||
OR | ||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) | |
OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 52-2061461 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
7830 Old Georgetown Road,Third Floor ,Bethesda ,Maryland | 20814 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||
Common Stock , $0.01 par value | EGBN | The Nasdaq Stock Market, LLC |
Large accelerated filer ☒ | Accelerated filer ☐ | |
Non-accelerated filer ☐ | Smaller Reporting Company ☐ | |
Emerging Growth Company ☐ |
EXPLANATORY NOTE
This Amendment No. 1 (this “Amendment”) to Form 10-Q for the fiscal quarter ended June 30, 2019, amends Eagle Bancorp. Inc.’s (the “Company”) Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, which was originally filed with the Securities and Exchange Commission on August 9, 2019 (the “Original Filing”).
This Amendment No. 1 is being filed solely to (i) include the iXBRL; and (ii) to add external links to the Exhibit Index.
This Amendment No. 1 does not reflect events that may have occurred subsequent to the filing date of the Original Filing and does not modify or update in any way disclosures made in the Original Filing.
PART I. | FINANCIAL INFORMATION | ||
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Assets | June 30, 2019 | December 31, 2018 | ||||||
Cash and due from banks | $ | 6,735 | $ | 6,773 | ||||
Federal funds sold | 17,914 | 11,934 | ||||||
Interest bearing deposits with banks and other short-term investments | 171,985 | 303,157 | ||||||
Investment securities available-for-sale, at fair value | 745,343 | 784,139 | ||||||
Federal Reserve and Federal Home Loan Bank stock | 33,993 | 23,506 | ||||||
Loans held for sale | 37,506 | 19,254 | ||||||
Loans | 7,392,615 | 6,991,447 | ||||||
Less allowance for credit losses | (72,086 | ) | (69,944 | ) | ||||
Loans, net | 7,320,529 | 6,921,503 | ||||||
Premises and equipment, net | 15,176 | 16,851 | ||||||
Operating lease right-of-use assets | 28,214 | — | ||||||
Deferred income taxes | 30,220 | 33,027 | ||||||
Bank owned life insurance | 74,295 | 73,441 | ||||||
Intangible assets, net | 105,219 | 105,766 | ||||||
Other real estate owned | 1,394 | 1,394 | ||||||
Other assets | 81,480 | 88,392 | ||||||
Total Assets | $ | 8,670,003 | $ | 8,389,137 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest bearing demand | $ | 1,873,902 | $ | 2,104,220 | ||||
Interest bearing transaction | 862,553 | 593,107 | ||||||
Savings and money market | 2,712,143 | 2,949,559 | ||||||
Time, $ 100,000 or more | 801,469 | 801,957 | ||||||
Other time | 699,825 | 525,442 | ||||||
Total deposits | 6,949,892 | 6,974,285 | ||||||
Customer repurchase agreements | 31,669 | 30,413 | ||||||
Other short-term borrowings | 225,000 | — | ||||||
Long-term borrowings | 217,491 | 217,296 | ||||||
Operating lease liabilities | 31,659 | — | ||||||
Other liabilities | 29,710 | 58,202 | ||||||
Total Liabilities | 7,485,421 | 7,280,196 | ||||||
Shareholders’ Equity | ||||||||
Common stock, par value $.01 per share; shares authorized100,000,000 , shares issued and outstanding34,539,853 and34,387,919 , respectively | 343 | 342 | ||||||
Additional paid in capital | 532,585 | 528,380 | ||||||
Retained earnings | 647,887 | 584,494 | ||||||
Accumulated other comprehensive income (loss) | 3,767 | (4,275 | ) | |||||
Total Shareholders’ Equity | 1,184,582 | 1,108,941 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 8,670,003 | $ | 8,389,137 |
Three Months Ended June 30 , | Six Months Ended June 30 , | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans | $ | 101,889 | $ | 90,924 | $ | 199,710 | $ | 175,354 | ||||||||
Interest and dividends on investment securities | 5,238 | 4,058 | 10,836 | 7,650 | ||||||||||||
Interest on balances with other banks and short-term investments | 1,105 | 1,274 | 2,771 | 2,255 | ||||||||||||
Interest on federal funds sold | 47 | 40 | 96 | 86 | ||||||||||||
Total interest income | 108,279 | 96,296 | 213,413 | 185,345 | ||||||||||||
Interest Expense | ||||||||||||||||
Interest on deposits | 22,461 | 14,048 | 43,361 | 23,177 | ||||||||||||
Interest on customer repurchase agreements | 75 | 62 | 173 | 112 | ||||||||||||
Interest on short-term borrowings | 1,435 | 997 | 1,575 | 2,108 | ||||||||||||
Interest on long-term borrowings | 2,979 | 2,979 | 5,958 | 5,958 | ||||||||||||
Total interest expense | 26,950 | 18,086 | 51,067 | 31,355 | ||||||||||||
Net Interest Income | 81,329 | 78,210 | 162,346 | 153,990 | ||||||||||||
Provision for Credit Losses | 3,600 | 1,650 | 6,960 | 3,619 | ||||||||||||
Net Interest Income After Provision For Credit Losses | 77,729 | 76,560 | 155,386 | 150,371 | ||||||||||||
Noninterest Income | ||||||||||||||||
Service charges on deposits | 1,606 | 1,760 | 3,300 | 3,374 | ||||||||||||
Gain on sale of loans | 1,923 | 1,675 | 3,311 | 3,198 | ||||||||||||
Gain on sale of investment securities | 563 | 26 | 1,475 | 68 | ||||||||||||
Increase in the cash surrender value of bank owned life insurance | 429 | 356 | 854 | 700 | ||||||||||||
Other income | 1,839 | 1,736 | 3,711 | 3,517 | ||||||||||||
Total noninterest income | 6,360 | 5,553 | 12,651 | 10,857 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Salaries and employee benefits | 17,743 | 17,812 | 41,387 | 34,670 | ||||||||||||
Premises and equipment expenses | 3,652 | 3,873 | 7,504 | 7,802 | ||||||||||||
Marketing and advertising | 1,268 | 1,291 | 2,416 | 2,228 | ||||||||||||
Data processing | 2,603 | 2,404 | 4,978 | 4,721 | ||||||||||||
Legal, accounting and professional fees | 2,740 | 2,179 | 4,449 | 5,152 | ||||||||||||
FDIC insurance | 1,126 | 951 | 2,242 | 1,626 | ||||||||||||
Other expenses | 4,227 | 3,779 | 8,687 | 7,211 | ||||||||||||
Total noninterest expense | 33,359 | 32,289 | 71,663 | 63,410 | ||||||||||||
Income Before Income Tax Expense | 50,730 | 49,824 | 96,374 | 97,818 | ||||||||||||
Income Tax Expense | 13,487 | 12,528 | 25,382 | 24,807 | ||||||||||||
Net Income | $ | 37,243 | $ | 37,296 | $ | 70,992 | $ | 73,011 | ||||||||
Earnings Per Common Share | ||||||||||||||||
Basic | $ | 1.08 | $ | 1.09 | $ | 2.06 | $ | 2.13 | ||||||||
Diluted | $ | 1.08 | $ | 1.08 | $ | 2.05 | $ | 2.12 |
Three Months Ended June 30 , | Six Months Ended June 30 , | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net Income | $ | 37,243 | $ | 37,296 | $ | 70,992 | $ | 73,011 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Unrealized gain (loss) on securities available for sale | 5,925 | (1,935 | ) | 11,979 | (7,058 | ) | ||||||||||
Reclassification adjustment for net gains included in net income | (417 | ) | (20 | ) | (1,092 | ) | (51 | ) | ||||||||
Total unrealized gain (loss) on investment securities | 5,508 | (1,955 | ) | 10,887 | (7,109 | ) | ||||||||||
Unrealized (loss) gain on derivatives | (513 | ) | 692 | (1,665 | ) | 2,925 | ||||||||||
Reclassification adjustment for amounts included in net income | (236 | ) | 64 | (1,180 | ) | (1 | ) | |||||||||
Total unrealized (loss) gain on derivatives | (749 | ) | 756 | (2,845 | ) | 2,924 | ||||||||||
Other comprehensive income (loss) | 4,759 | (1,199 | ) | 8,042 | (4,185 | ) | ||||||||||
Comprehensive Income | $ | 42,002 | $ | 36,097 | $ | 79,034 | $ | 68,826 |
Common | Additional Paid | Retained | Accumulated Other Comprehensive | Total Shareholders’ | ||||||||||||||||||||
Shares | Amount | in Capital | Earnings | Income (Loss) | Equity | |||||||||||||||||||
Balance April 1, 2019 | 34,537,193 | $ | 343 | $ | 530,894 | $ | 618,243 | $ | (992 | ) | $ | 1,148,488 | ||||||||||||
Net Income | — | — | — | 37,243 | — | 37,243 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 4,759 | 4,759 | ||||||||||||||||||
Stock-based compensation expense | — | — | 1,471 | — | — | 1,471 | ||||||||||||||||||
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes | 750 | — | 37 | — | — | 37 | ||||||||||||||||||
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes | (1,800 | ) | — | — | — | — | — | |||||||||||||||||
Issuance of common stock related to employee stock purchase plan | 3,710 | — | 183 | — | — | 183 | ||||||||||||||||||
Cash dividends declared ($0.22 per share) | — | — | — | (7,599 | ) | — | (7,599 | ) | ||||||||||||||||
Balance June 30, 2019 | 34,539,853 | $ | $ | $ | $ | $ | ||||||||||||||||||
Balance April 1, 2018 | 34,303,056 | $ | 341 | $ | 522,316 | $ | 467,933 | $ | (5,410 | ) | $ | 985,180 | ||||||||||||
Net Income | — | — | — | 37,296 | — | 37,296 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (1,199 | ) | (1,199 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 1,667 | — | — | 1,667 | ||||||||||||||||||
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes | (1,255 | ) | — | — | — | — | — | |||||||||||||||||
Issuance of common stock related to employee stock purchase plan | 3,270 | — | 193 | — | — | 193 | ||||||||||||||||||
Balance June 30, 2018 | 34,305,071 | $ | 341 | $ | 524,176 | $ | 505,229 | $ | (6,609 | ) | $ | 1,023,137 |
Common | Additional Paid | Retained | Accumulated Other Comprehensive | Shareholders’ | ||||||||||||||||||||
Shares | Amount | in Capital | Earnings | Income (Loss) | Equity | |||||||||||||||||||
Balance January 1, 2019 | 34,387,919 | $ | 342 | $ | 528,380 | $ | 584,494 | $ | (4,275 | ) | $ | 1,108,941 | ||||||||||||
Net Income | — | — | — | 70,992 | — | 70,992 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 8,042 | 8,042 | ||||||||||||||||||
Stock-based compensation expense | — | — | 3,501 | — | — | 3,501 | ||||||||||||||||||
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes | 26,784 | — | 332 | — | — | 332 | ||||||||||||||||||
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes | (12,744 | ) | 1 | (1 | ) | — | — | — | ||||||||||||||||
Vesting of performance based stock awards, net of shares withheld for payroll taxes | 17,655 | — | — | — | — | — | ||||||||||||||||||
Time based stock awards granted | 112,636 | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock related to employee stock purchase plan | 7,603 | — | 373 | — | — | 373 | ||||||||||||||||||
Cash dividends declared ($ 0.22 per share) | — | — | — | (7,599 | ) | — | (7,599 | ) | ||||||||||||||||
Balance June 30, 2019 | 34,539,853 | $ | 343 | $ | 532,585 | $ | 647,887 | $ | 3,767 | $ | 1,184,582 | |||||||||||||
Balance January 1, 2018 | 34,185,163 | $ | 340 | $ | 520,304 | $ | 431,544 | $ | (1,750 | ) | $ | 950,438 | ||||||||||||
Net Income | — | — | — | 73,011 | — | 73,011 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (4,185 | ) | (4,185 | ) | ||||||||||||||||
Stock-based compensation expense | — | — | 3,143 | — | — | 3,143 | ||||||||||||||||||
Issuance of common stock related to options exercised, net of shares withheld for payroll taxes | 32,230 | — | 338 | — | — | 338 | ||||||||||||||||||
Vesting of time based stock awards issued at date of grant, net of shares withheld for payroll taxes | (13,361 | ) | 1 | (1 | ) | — | — | — | ||||||||||||||||
Time based stock awards granted | 94,344 | — | — | — | — | — | ||||||||||||||||||
Issuance of common stock related to employee stock purchase plan | 6,695 | — | 392 | — | — | 392 | ||||||||||||||||||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act from AOCI (ASU 2018 -02 ) | — | — | — | 674 | (674 | ) | — | |||||||||||||||||
Balance June 30, 2018 | 34,305,071 | $ | 341 | $ | 524,176 | $ | 505,229 | $ | (6,609 | ) | $ | 1,023,137 |
Six Months Ended June 30 , | ||||||||
2019 | 2018 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net Income | $ | 70,992 | $ | 73,011 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for credit losses | 6,960 | 3,619 | ||||||
Depreciation and amortization | 3,567 | 3,561 | ||||||
Amortization of operating lease right-of-use assets | 1,360 | — | ||||||
Gains on sale of loans | (3,311 | ) | (3,198 | ) | ||||
Gains on sale of GNMA loans | (71 | ) | — | |||||
Securities premium amortization (discount accretion), net | 2,519 | 2,169 | ||||||
Origination of loans held for sale | (230,865 | ) | (224,643 | ) | ||||
Proceeds from sale of loans held for sale | 215,995 | 222,444 | ||||||
Net increase in cash surrender value of BOLI | (854 | ) | (700 | ) | ||||
Deferred income tax expense (benefit) | 2,807 | 1,533 | ||||||
Net gain on sale of investment securities | (1,475 | ) | (68 | ) | ||||
Stock-based compensation expense | 3,501 | 3,143 | ||||||
Net tax benefits from stock compensation | 10 | 108 | ||||||
Decrease (increase) in other assets | 6,912 | (12,644 | ) | |||||
Decrease in other liabilities | (29,242 | ) | (14,254 | ) | ||||
Net cash provided by operating activities | 48,805 | 54,081 | ||||||
Cash Flows From Investing Activities: | ||||||||
Purchases of available-for-sale investment securities | (63,572 | ) | (150,528 | ) | ||||
Proceeds from maturities of available-for-sale securities | 67,223 | 42,144 | ||||||
Proceeds from sale/call of available-for-sale securities | 42,143 | 28,974 | ||||||
Purchases of Federal Reserve and Federal Home Loan Bank stock | (76,150 | ) | (42,179 | ) | ||||
Proceeds from redemption of Federal Reserve and Federal Home Loan Bank stock | 65,663 | 42,628 | ||||||
Net increase in loans | (405,986 | ) | (241,944 | ) | ||||
Decrease (increase) in premises and equipment | 1,675 | (936 | ) | |||||
Net cash used in investing activities | (369,004 | ) | (321,841 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
(Decrease) increase in deposits | (24,393 | ) | 414,774 | |||||
Increase (decrease) in customer repurchase agreements | 1,256 | (47,426 | ) | |||||
Increase (decrease) in short-term borrowings | 225,000 | (25,000 | ) | |||||
Proceeds from exercise of equity compensation plans | 332 | 338 | ||||||
Proceeds from employee stock purchase plan | 373 | 392 | ||||||
Cash dividends paid | (7,599 | ) | — | |||||
Net cash provided by financing activities | 194,969 | 343,078 | ||||||
Net (Decrease) Increase In Cash and Cash Equivalents | (125,230 | ) | 75,318 | |||||
Cash and Cash Equivalents at Beginning of Period | 321,864 | 190,473 | ||||||
Cash and Cash Equivalents at End of Period | $ | 196,634 | $ | 265,791 | ||||
Supplemental Cash Flows Information: | ||||||||
Interest paid | $ | 51,735 | $ | 30,242 | ||||
Income taxes paid | $ | 31,850 | $ | 31,200 | ||||
Non-Cash Investing Activities | ||||||||
Initial recognition of operating lease right-of-use assets | $ | 29,574 | $ | — | ||||
Initial recognition of operating lease liabilities | $ | 33,535 | $ | — |
Gross | Gross | Estimated | ||||||||||||||
June 30, 2019 | Amortized | Unrealized | Unrealized | Fair | ||||||||||||
(dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||
U. S. agency securities | $ | 225,389 | $ | 940 | $ | 659 | $ | 225,670 | ||||||||
Residential mortgage backed securities | 440,243 | 5,186 | 1,884 | 443,545 | ||||||||||||
Municipal bonds | 67,835 | 1,503 | — | 69,338 | ||||||||||||
Corporate bonds | 6,502 | 70 | — | 6,572 | ||||||||||||
Other equity investments | 218 | — | — | 218 | ||||||||||||
$ | 740,187 | $ | 7,699 | $ | 2,543 | $ | 745,343 |
Gross | Gross | Estimated | ||||||||||||||
December 31, 2018 | Amortized | Unrealized | Unrealized | Fair | ||||||||||||
(dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||
U. S. agency securities | $ | 260,150 | $ | 228 | $ | 4,033 | $ | 256,345 | ||||||||
Residential mortgage backed securities | 477,949 | 1,575 | 7,293 | 472,231 | ||||||||||||
Municipal bonds | 45,814 | 439 | 484 | 45,769 | ||||||||||||
Corporate bonds | 9,503 | 79 | 6 | 9,576 | ||||||||||||
Other equity investments | 218 | — | — | 218 | ||||||||||||
$ | 793,634 | $ | 2,321 | $ | 11,816 | $ | 784,139 |
Less than | 12Months | |||||||||||||||||||||||||||
12Months | or Greater | Total | ||||||||||||||||||||||||||
Estimated | Estimated | Estimated | ||||||||||||||||||||||||||
June 30, 2019 | Number of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||
(dollars in thousands) | Securities | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
U. S. agency securities | 39 | $ | 26,149 | $ | 50 | $ | 99,252 | $ | 609 | $ | 125,401 | $ | 659 | |||||||||||||||
Residential mortgage backed securities | 103 | 4,234 | 13 | 174,316 | 1,871 | 178,550 | 1,884 | |||||||||||||||||||||
Municipal bonds | 2 | 1,500 | — | — | — | 1,500 | — | |||||||||||||||||||||
144 | $ | 31,883 | $ | 63 | $ | 273,568 | $ | 2,480 | $ | 305,451 | $ | 2,543 |
Less than | 12Months | |||||||||||||||||||||||||||
12Months | or Greater | Total | ||||||||||||||||||||||||||
Estimated | Estimated | Estimated | ||||||||||||||||||||||||||
December 31, 2018 | Number of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||
(dollars in thousands) | Securities | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
U. S. agency securities | 58 | $ | 72,679 | $ | 533 | $ | 144,636 | $ | 3,500 | $ | 217,315 | $ | 4,033 | |||||||||||||||
Residential mortgage backed securities | 151 | 61,199 | 527 | 225,995 | 6,766 | 287,194 | 7,293 | |||||||||||||||||||||
Municipal bonds | 11 | 4,299 | 50 | 17,041 | 434 | 21,340 | 484 | |||||||||||||||||||||
Corporate bonds | 1 | 1,494 | 6 | — | — | 1,494 | 6 | |||||||||||||||||||||
221 | $ | 139,671 | $ | 1,116 | $ | 387,672 | $ | 10,700 | $ | 527,343 | $ | 11,816 |
June 30, 2019 | December 31, 2018 | |||||||||||||||
Amortized | Estimated | Amortized | Estimated | |||||||||||||
(dollars in thousands) | Cost | Fair Value | Cost | Fair Value | ||||||||||||
U. S. agency securities maturing: | ||||||||||||||||
Oneyear or less | $ | 114,260 | $ | 114,564 | $ | 128,148 | $ | 125,545 | ||||||||
Afteroneyear throughfiveyears | 103,105 | 103,042 | 119,856 | 118,883 | ||||||||||||
Fiveyears throughtenyears | 8,024 | 8,064 | 12,146 | 11,917 | ||||||||||||
Residential mortgage backed securities | 440,243 | 443,545 | 477,949 | 472,231 | ||||||||||||
Municipal bonds maturing: | ||||||||||||||||
Oneyear or less | 6,947 | 6,977 | 8,097 | 8,167 | ||||||||||||
Afteroneyear throughfiveyears | 13,426 | 13,694 | 15,025 | 15,081 | ||||||||||||
Fiveyears throughtenyears | 46,399 | 47,468 | 21,626 | 21,385 | ||||||||||||
Aftertenyears | 1,063 | 1,199 | 1,066 | 1,136 | ||||||||||||
Corporate bonds maturing: | ||||||||||||||||
Afteroneyear throughfiveyears | 5,002 | 5,072 | 8,003 | 8,076 | ||||||||||||
Aftertenyears | 1,500 | 1,500 | 1,500 | 1,500 | ||||||||||||
Other equity investments | 218 | 218 | 218 | 218 | ||||||||||||
$ | 740,187 | $ | 745,343 | $ | 793,634 | $ | 784,139 |
June 30, 2019 | December 31, 2018 | |||||||||||||||
(dollars in thousands) | Amount | % | Amount | % | ||||||||||||
Commercial | $ | 1,475,201 | 20 | % | $ | 1,553,112 | 22 | % | ||||||||
Income producing - commercial real estate | 3,666,815 | 50 | % | 3,256,900 | 46 | % | ||||||||||
Owner occupied - commercial real estate | 970,850 | 13 | % | 887,814 | 13 | % | ||||||||||
Real estate mortgage - residential | 105,191 | 1 | % | 106,418 | 2 | % | ||||||||||
Construction - commercial and residential | 1,012,789 | 14 | % | 1,039,815 | 15 | % | ||||||||||
Construction - C&I (owner occupied) | 76,324 | 1 | % | 57,797 | 1 | % | ||||||||||
Home equity | 83,447 | 1 | % | 86,603 | 1 | % | ||||||||||
Other consumer | 1,998 | — | 2,988 | — | ||||||||||||
Total loans | 7,392,615 | 100 | % | 6,991,447 | 100 | % | ||||||||||
Less: allowance for credit losses | (72,086 | ) | (69,944 | ) | ||||||||||||
Net loans | $ | 7,320,529 | $ | 6,921,503 |
Income Producing - Commercial | Owner Occupied - Commercial | Real Estate Mortgage - | Construction - Commercial and | Home | Other | |||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Real Estate | Real Estate | Residential | Residential | Equity | Consumer | Total | ||||||||||||||||||||||||
ThreeMonths Ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 17,195 | $ | 26,765 | $ | 5,980 | $ | 681 | $ | 18,469 | $ | 605 | $ | 248 | $ | 69,943 | ||||||||||||||||
Loans charged-off | (1 | ) | (1,847 | ) | — | — | — | — | (2 | ) | (1,850 | ) | ||||||||||||||||||||
Recoveries of loans previously charged-off | 37 | 302 | 2 | 2 | 37 | — | 13 | 393 | ||||||||||||||||||||||||
Net loans charged-off | 36 | (1,545 | ) | 2 | 2 | 37 | — | 11 | (1,457 | ) | ||||||||||||||||||||||
Provision for credit losses | 905 | 1,790 | (226 | ) | 672 | 500 | (24 | ) | (17 | ) | 3,600 | |||||||||||||||||||||
Ending balance | $ | 18,136 | $ | 27,010 | $ | 5,756 | $ | 1,355 | $ | 19,006 | $ | 581 | $ | 242 | $ | 72,086 | ||||||||||||||||
SixMonths Ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 15,857 | $ | 28,034 | $ | 6,242 | $ | 965 | $ | 18,175 | $ | 599 | $ | 72 | $ | 69,944 | ||||||||||||||||
Loans charged-off | (5 | ) | (5,343 | ) | — | — | — | — | (2 | ) | (5,350 | ) | ||||||||||||||||||||
Recoveries of loans previously charged-off | 167 | 302 | 2 | 3 | 37 | — | 21 | 532 | ||||||||||||||||||||||||
Net loans (charged-off) recoveries | 162 | (5,041 | ) | 2 | 3 | 37 | — | 19 | (4,818 | ) | ||||||||||||||||||||||
Provision for credit losses | 2,117 | 4,017 | (488 | ) | 387 | 794 | (18 | ) | 151 | 6,960 | ||||||||||||||||||||||
Ending balance | $ | 18,136 | $ | 27,010 | $ | 5,756 | $ | 1,355 | $ | 19,006 | $ | 581 | $ | 242 | $ | 72,086 | ||||||||||||||||
As of June 30, 2019 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,905 | $ | 1,000 | $ | 475 | $ | 650 | $ | — | $ | — | $ | — | $ | 10,030 | ||||||||||||||||
Collectively evaluated for impairment | 10,231 | 26,010 | 5,281 | 705 | 19,006 | 581 | 242 | 62,056 | ||||||||||||||||||||||||
Ending balance | $ | 18,136 | $ | 27,010 | $ | 5,756 | $ | 1,355 | $ | 19,006 | $ | 581 | $ | 242 | $ | 72,086 | ||||||||||||||||
ThreeMonths Ended June 30, 2018 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 13,358 | $ | 26,468 | $ | 5,471 | $ | 734 | $ | 18,742 | $ | 699 | $ | 335 | $ | 65,807 | ||||||||||||||||
Loans charged-off | (408 | ) | — | — | — | (517 | ) | — | — | (925 | ) | |||||||||||||||||||||
Recoveries of loans previously charged-off | 23 | 2 | 1 | 1 | 35 | 10 | 5 | 77 | ||||||||||||||||||||||||
Net loans (charged-off) recoveries | (385 | ) | 2 | 1 | 1 | (482 | ) | 10 | 5 | (848 | ) | |||||||||||||||||||||
Provision for credit losses | (767 | ) | 1,518 | 531 | 22 | 391 | (36 | ) | (9 | ) | 1,650 | |||||||||||||||||||||
Ending balance | $ | 12,206 | $ | 27,988 | $ | 6,003 | $ | 757 | $ | 18,651 | $ | 673 | $ | 331 | $ | 66,609 | ||||||||||||||||
SixMonths Ended June 30, 2018 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 13,102 | $ | 25,376 | $ | 5,934 | $ | 944 | $ | 18,492 | $ | 770 | $ | 140 | $ | 64,758 | ||||||||||||||||
Loans charged-off | (1,261 | ) | (121 | ) | (132 | ) | — | (517 | ) | — | — | (2,031 | ) | |||||||||||||||||||
Recoveries of loans previously charged-off | 26 | 2 | 2 | 3 | 95 | 127 | 8 | 263 | ||||||||||||||||||||||||
Net loans (charged-off) recoveries | (1,235 | ) | (119 | ) | (130 | ) | 3 | (422 | ) | 127 | 8 | (1,768 | ) | |||||||||||||||||||
Provision for credit losses | 339 | 2,731 | 199 | (190 | ) | 581 | (224 | ) | 183 | 3,619 | ||||||||||||||||||||||
Ending balance | $ | 12,206 | $ | 27,988 | $ | 6,003 | $ | 757 | $ | 18,651 | $ | 673 | $ | 331 | $ | 66,609 | ||||||||||||||||
As of June 30, 2018 | ||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,506 | $ | 3,543 | $ | 500 | $ | — | $ | — | $ | — | $ | 80 | $ | 8,629 | ||||||||||||||||
Collectively evaluated for impairment | 7,700 | 24,445 | 5,503 | 757 | 18,651 | 673 | 251 | 57,980 | ||||||||||||||||||||||||
Ending balance | $ | 12,206 | $ | 27,988 | $ | 6,003 | $ | 757 | $ | 18,651 | $ | 673 | $ | 331 | $ | 66,609 |
Income Producing - | Owner Occupied - | Real Estate | Construction - | |||||||||||||||||||||||||||||
Commercial | Commercial | Mortgage - | Commercial and | Home | Other | |||||||||||||||||||||||||||
(dollars in thousands) | Commercial | Real Estate | Real Estate | Residential | Residential | Equity | Consumer | Total | ||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||
Recorded investment in loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 26,980 | $ | 37,900 | $ | 3,879 | $ | 5,367 | $ | 9,155 | $ | 487 | $ | — | $ | 83,768 | ||||||||||||||||
Collectively evaluated for impairment | 1,448,221 | 3,628,915 | 966,971 | 99,824 | 1,079,958 | 82,960 | 1,998 | 7,308,847 | ||||||||||||||||||||||||
Ending balance | $ | 1,475,201 | $ | 3,666,815 | $ | 970,850 | $ | 105,191 | $ | 1,089,113 | $ | 83,447 | $ | 1,998 | $ | 7,392,615 | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Recorded investment in loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 8,738 | $ | 61,747 | $ | 5,307 | $ | 1,228 | $ | 7,012 | $ | 487 | $ | — | $ | 84,519 | ||||||||||||||||
Collectively evaluated for impairment | 1,544,374 | 3,195,153 | 882,507 | 105,190 | 1,090,600 | 86,116 | 2,988 | 6,906,928 | ||||||||||||||||||||||||
Ending balance | $ | 1,553,112 | $ | 3,256,900 | $ | 887,814 | $ | 106,418 | $ | 1,097,612 | $ | 86,603 | $ | 2,988 | $ | 6,991,447 |
Pass: | Loans in all classes that comprise the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes that there is a low likelihood of loss related to those loans that are considered pass. |
Watch: | Loan paying as agreed with generally acceptable asset quality; however the obligor’s performance has not met expectations. Balance sheet and/or income statement has shown deterioration to the point that the obligor could not sustain any further setbacks. Credit is expected to be strengthened through improved obligor performance and/or additional collateral within a reasonable period of time. |
Special Mention: | Loans in the classes that comprise the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan. The special mention credit quality indicator is not used for classes of loans that comprise the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans that are considered special mention. |
Classified: | Classified (a) Substandard - Loans inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the company will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. |
Watch and | Total | |||||||||||||||||||
(dollars in thousands) | Pass | Special Mention | Substandard | Doubtful | Loans | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Commercial | $ | 1,398,098 | $ | 50,123 | $ | 26,980 | $ | — | $ | 1,475,201 | ||||||||||
Income producing - commercial real estate | 3,611,968 | 16,947 | 37,900 | — | 3,666,815 | |||||||||||||||
Owner occupied - commercial real estate | 924,643 | 42,328 | 3,879 | — | 970,850 | |||||||||||||||
Real estate mortgage – residential | 99,188 | 636 | 5,367 | — | 105,191 | |||||||||||||||
Construction - commercial and residential | 1,079,958 | — | 9,155 | — | 1,089,113 | |||||||||||||||
Home equity | 82,274 | 686 | 487 | — | 83,447 | |||||||||||||||
Other consumer | 1,998 | — | — | — | 1,998 | |||||||||||||||
Total | $ | 7,198,127 | $ | 110,720 | $ | 83,768 | $ | — | $ | 7,392,615 | ||||||||||
December 31, 2018 | ||||||||||||||||||||
Commercial | $ | 1,505,477 | $ | 25,584 | $ | 22,051 | $ | — | $ | 1,553,112 | ||||||||||
Income producing - commercial real estate | 3,172,479 | 1,536 | 82,885 | — | 3,256,900 | |||||||||||||||
Owner occupied - commercial real estate | 844,286 | 38,221 | 5,307 | — | 887,814 | |||||||||||||||
Real estate mortgage – residential | 104,543 | 647 | 1,228 | — | 106,418 | |||||||||||||||
Construction - commercial and residential | 1,090,600 | — | 7,012 | — | 1,097,612 | |||||||||||||||
Home equity | 85,434 | 682 | 487 | — | 86,603 | |||||||||||||||
Other consumer | 2,988 | — | — | — | 2,988 | |||||||||||||||
Total | $ | 6,805,807 | $ | 66,670 | $ | 118,970 | $ | — | $ | 6,991,447 |
(dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||
Commercial | $ | 16,053 | $ | 7,115 | ||||
Income producing - commercial real estate | 4,563 | 1,766 | ||||||
Owner occupied - commercial real estate | 1,510 | 2,368 | ||||||
Real estate mortgage - residential | 5,640 | 1,510 | ||||||
Construction - commercial and residential | 9,155 | 3,031 | ||||||
Home equity | 487 | 487 | ||||||
Total nonaccrual loans ( 1)( 2) | $ | 37,408 | $ | 16,277 |
( 1) | Excludes troubled debt restructurings (“TDRs”) that were performing under their restructured terms totaling $8.6 million at June 30, 2019 and $24.0 million at December 31, 2018. |
( 2) | Gross interest income of $1.2 million and $321 thousand would have been recorded for thesixmonths ended June 30, 2019 and 2018, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while the interest actually recorded on such loans was $86 thousand and $6 thousand for thesixmonths ended June 30, 2019 and 2018, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status. |
Loans | Loans | Loans | Total Recorded | |||||||||||||||||||||
30-59Days | 60-89Days | 90Days or | Total Past | Current | Investment in | |||||||||||||||||||
(dollars in thousands) | Past Due | Past Due | More Past Due | Due Loans | Loans | Loans | ||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||
Commercial | $ | 4,784 | $ | 1,112 | $ | 16,053 | $ | 21,949 | $ | 1,453,252 | $ | 1,475,201 | ||||||||||||
Income producing - commercial real estate | 2,253 | 4,656 | 4,563 | 11,472 | 3,655,343 | 3,666,815 | ||||||||||||||||||
Owner occupied - commercial real estate | 445 | 3,654 | 1,510 | 5,609 | 965,241 | 970,850 | ||||||||||||||||||
Real estate mortgage – residential | — | — | 5,640 | 5,640 | 99,551 | 105,191 | ||||||||||||||||||
Construction - commercial and residential | 2,011 | 1,866 | 9,155 | 13,032 | 1,076,081 | 1,089,113 | ||||||||||||||||||
Home equity | 1,413 | 47 | 487 | 1,947 | 81,500 | 83,447 | ||||||||||||||||||
Other consumer | 21 | 10 | — | 31 | 1,967 | 1,998 | ||||||||||||||||||
Total | $ | 10,927 | $ | 11,345 | $ | 37,408 | $ | 59,680 | $ | 7,332,935 | $ | 7,392,615 | ||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Commercial | $ | 4,535 | $ | 2,870 | $ | 7,115 | $ | 14,520 | $ | 1,538,592 | $ | 1,553,112 | ||||||||||||
Income producing - commercial real estate | 5,855 | 27,479 | 1,766 | 35,100 | 3,221,800 | 3,256,900 | ||||||||||||||||||
Owner occupied - commercial real estate | 5,051 | 2,370 | 2,368 | 9,789 | 878,025 | 887,814 | ||||||||||||||||||
Real estate mortgage – residential | 2,456 | 1,698 | 1,510 | 5,664 | 100,754 | 106,418 | ||||||||||||||||||
Construction - commercial and residential | 4,392 | — | 3,031 | 7,423 | 1,090,189 | 1,097,612 | ||||||||||||||||||
Home equity | 630 | 47 | 487 | 1,164 | 85,439 | 86,603 | ||||||||||||||||||
Other consumer | — | — | — | — | 2,988 | 2,988 | ||||||||||||||||||
Total | $ | 22,919 | $ | 34,464 | $ | 16,277 | $ | 73,660 | $ | 6,917,787 | $ | 6,991,447 |
Unpaid | Recorded | Recorded | ||||||||||||||||||||||||||||||||||
Contractual | Investment | Investment | Total | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||||||
Principal | With No | With | Recorded | Related | Quarter | Year | Quarter | Year | ||||||||||||||||||||||||||||
(dollars in thousands) | Balance | Allowance | Allowance | Investment | Allowance | To Date | To Date | To Date | To Date | |||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||
Commercial | $ | 17,434 | $ | 5,003 | $ | 11,959 | $ | 16,962 | $ | 7,905 | $ | 14,972 | $ | 12,695 | $ | 84 | $ | 103 | ||||||||||||||||||
Income producing - commercial real estate | 8,953 | 4,563 | 4,390 | 8,953 | 1,000 | 24,198 | 23,266 | (165 | ) | 98 | ||||||||||||||||||||||||||
Owner occupied - commercial real estate | 4,819 | 3,449 | 1,370 | 4,819 | 475 | 4,836 | 5,134 | 47 | 93 | |||||||||||||||||||||||||||
Real estate mortgage – residential | 5,640 | 3,184 | 2,456 | 5,640 | 650 | 5,642 | 4,265 | — | — | |||||||||||||||||||||||||||
Construction - commercial and residential | 10,315 | 9,155 | — | 9,155 | — | 6,093 | 5,072 | 15 | 15 | |||||||||||||||||||||||||||
Home equity | 487 | 487 | — | 487 | — | 487 | 487 | — | — | |||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 47,648 | $ | 25,841 | $ | 20,175 | $ | 46,016 | $ | 10,030 | $ | 56,228 | $ | 50,919 | $ | (19 | ) | $ | 309 | |||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||
Commercial | $ | 8,613 | $ | 2,057 | $ | 6,084 | $ | 8,141 | $ | 4,803 | $ | 10,306 | $ | 8,359 | $ | (126 | ) | $ | 190 | |||||||||||||||||
Income producing - commercial real estate | 21,402 | 1,720 | 19,682 | 21,402 | 2,465 | 15,331 | 12,309 | 189 | 550 | |||||||||||||||||||||||||||
Owner occupied - commercial real estate | 5,731 | 4,361 | 1,370 | 5,731 | 600 | 5,746 | 6,011 | 47 | 196 | |||||||||||||||||||||||||||
Real estate mortgage – residential | 1,510 | 1,510 | — | 1,510 | — | 1,516 | 1,688 | — | 2 | |||||||||||||||||||||||||||
Construction - commercial and residential | 3,031 | 3,031 | — | 3,031 | 1,050 | 3,031 | 2,028 | — | 68 | |||||||||||||||||||||||||||
Home equity | 487 | 487 | — | 487 | — | 487 | 491 | — | — | |||||||||||||||||||||||||||
Other consumer | — | — | — | — | — | 46 | 69 | — | — | |||||||||||||||||||||||||||
Total | $ | 40,774 | $ | 13,166 | $ | 27,136 | $ | 40,302 | $ | 8,918 | $ | 36,463 | $ | 30,955 | $ | 110 | $ | 1,006 |
For theSixMonths Ended June 30, 2019 | ||||||||||||||||||||||||
Number of | Income Producing - | Owner Occupied - | Construction - | |||||||||||||||||||||
(dollars in thousands) | Contracts | Commercial | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Total | ||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||
Restructured accruing | 7 | $ | 909 | $ | 4,390 | $ | 3,309 | $ | — | $ | 8,608 | |||||||||||||
Restructured nonaccruing | 4 | 2,831 | — | — | — | 2,831 | ||||||||||||||||||
Total | 11 | $ | 3,740 | $ | 4,390 | $ | 3,309 | $ | — | $ | 11,439 | |||||||||||||
Specific allowance | $ | — | $ | 1,000 | $ | — | $ | — | $ | 1,000 | ||||||||||||||
Restructured and subsequently defaulted | $ | $ | 2,300 | $ | — | $ | — | $ | 1,847 |
For theSixMonths Ended June 30, 2018 | ||||||||||||||||||||||||
Number of | Income Producing - | Owner Occupied - | Construction - | |||||||||||||||||||||
(dollars in thousands) | Contracts | Commercial | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Total | ||||||||||||||||||
Troubled debt restructings | ||||||||||||||||||||||||
Restructured accruing | 9 | $ | 4,938 | $ | 9,138 | $ | 1,047 | $ | — | $ | 15,123 | |||||||||||||
Restructured nonaccruing | 4 | 1,211 | — | — | — | 1,211 | ||||||||||||||||||
Total | 13 | $ | 6,149 | $ | 9,138 | $ | 1,047 | $ | — | $ | 16,334 | |||||||||||||
Specific allowance | $ | 2,000 | $ | 3,500 | $ | — | $ | — | $ | 5,500 | ||||||||||||||
Restructured and subsequently defaulted | $ | — | $ | 937 | $ | — | $ | — | $ | 937 |
Six Months Ended | ||||
(dollars in thousands) | June 30, 2019 | |||
Lease Cost | ||||
Operating Lease Cost (Cost resulting from lease payments) | $ | 3,898 | ||
Variable Lease Cost (Cost excluded from lease payments) | 535 | |||
Sublease Income | (188 | ) | ||
Net Lease Cost | $ | 4,245 | ||
Operating Lease - Operating Cash Flows (Fixed Payments) | $ | |||
Operating Lease - Operating Cash Flows (Liability Reduction) | 3,619 | |||
Right-of-Use Assets - Operating Leases | 28,214 | |||
Weighted Average Lease Term - Operating Leases | 5.59yrs | |||
Weighted Average Discount Rate - Operating Leases | 4.00 | % |
(dollars in thousands) | ||||
Twelve Months Ended: | ||||
June 30, 2020 | $ | |||
June 30, 2021 | 8,104 | |||
June 30, 2022 | 6,541 | |||
June 30, 2023 | 4,500 | |||
June 29, 2024 | 3,895 | |||
Thereafter | 5,140 | |||
Total Future Minimum Lease Payments | 36,761 | |||
Amounts Representing Interest | (5,102 | ) | ||
Present Value of Net Future Minimum Lease Payments | $ | 31,659 |
June 30, 2019 | December 31, 2018 | |||||||||||||||||||
Notional | Balance Sheet | Notional | Balance Sheet | |||||||||||||||||
Amount | Fair Value | Category | Amount | Fair Value | Category | |||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Interest rate product | $ | — | $ | — | Other Assets | $ | 250,000 | $ | 3,727 | Other Assets | ||||||||||
(dollars in thousands) | ||||||||||||||||||||
Interest rate product | $ | 100,000 | $ | 101 | Other Liabilities | $ | — | $ | — | Other Liabilities | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Interest rate product | $ | 26,000 | $ | 41 | Other Assets | $ | — | $ | — | Other Assets | ||||||||||
(dollars in thousands) | ||||||||||||||||||||
Interest rate product | $ | 26,000 | $ | 40 | Other Liabilities | $ | — | $ | — | Other Liabilities | ||||||||||
Other Contracts | 27,500 | 101 | Other Liabilities | 27,500 | 59 | Other Liabilities | ||||||||||||||
$ | 53,500 | $ | 141 | Other Liabilities | $ | 27,500 | $ | 59 | Other Liabilities |
Derivatives in Subtopic 815-20 Hedging Relationships (dollars in thousands) | Amount of Gain or (Loss) Recognized in OCI on Derivative | Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||
Interest Rate Products | $ | (834 | ) | $ | 1,109 | Interest Expense | $ | 313 | $ | 104 | ||||||||
Total | $ | (834 | ) | $ | 1,109 | $ | 313 | $ | 104 |
Derivatives in Subtopic 815-20 Hedging Relationships (dollars in thousands) | Amount of Gain or (Loss) Recognized in OCI on Derivative | Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||
Interest Rate Products | $ | (1,867 | ) | $ | 3,552 | Interest Expense | $ | 775 | $ | 16 | ||||||||
Interest Rate Products | — | — | Gain on sale of investment securities | 829 | — | |||||||||||||
Total | $ | (1,867 | ) | $ | 3,552 | $ | 1,604 | $ | 16 |
Location and Amount of Gain or (Loss) Recognized in Income on Fair Value | ||||||||||||||||||||
and Cash Flow Hedging Relationships (in 000's) | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2019 | 2018 | ||||||||||||||||
Interest Expense | Interest Expense | Gain on sale of investment securities | Interest Expense | |||||||||||||||||
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded | $ | 313 | $ | 104 | $ | 775 | $ | 829 | $ | 16 | ||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||||||||||||||||||
Interest contracts | ||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | $ | 313 | $ | 104 | $ | 775 | $ | — | $ | 16 | ||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring | $ | — | $ | — | $ | — | $ | 829 | $ | — |
Effect of Derivatives Not Designated as Hedging Instruments on the Statement of Financial Performance | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 | Location of Gain or (Loss) Recognized in Income on Derivative | Amount of Gain or (Loss) Recognized in Income on Derivative | Amount of Gain or (Loss) Recognized in Income on Derivative | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Other Contracts | Other income / (expense) | (29 | ) | — | (42 | ) | — | |||||||||||
Total | (29 | ) | — | (42 | ) | — |
As of June 30, 2019 | |||||||||||||||||||||||
Offsetting of Derivative Assets (dollars in thousands) | Gross Amounts Not Offset in the Balance Sheet | ||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets presented in the Balance Sheet | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||
Derivatives | $ | 41 | $ | — | $ | 41 | $ | — | $ | — | $ | 41 |
Offsetting of Derivative Liabilities (dollars in thousands) | Gross Amounts Not Offset in the Balance Sheet | ||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Balance Sheet | Net Amounts of Liabilities presented in the Balance Sheet | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||
Derivatives | $ | 224 | $ | — | $ | 224 | $ | — | $ | — | $ | 224 |
As of December 31, 2018 | |||||||||||||||||||||||
Offsetting of Derivative Assets (dollars in thousands) | Gross Amounts Not Offset in the Balance Sheet | ||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets presented in the Balance Sheet | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||
Derivatives | $ | 3,840 | $ | — | $ | 3,840 | $ | — | $ | — | $ | 3,840 |
Offsetting of Derivative Liabilities (dollars in thousands) | Gross Amounts Not Offset in the Balance Sheet | ||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Balance Sheet | Net Amounts of Liabilities presented in the Balance Sheet | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||
Derivatives | $ | 59 | $ | — | $ | 59 | $ | — | $ | — | $ | 59 |
Three Months Ended June 30 , | Six Months Ended June 30 , | |||||||||||||||
(dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Beginning Balance | $ | 1,394 | $ | 1,394 | $ | 1,394 | $ | 1,394 | ||||||||
Real estate acquired from borrowers | — | — | — | — | ||||||||||||
Properties sold | — | — | — | — | ||||||||||||
Ending Balance | $ | 1,394 | $ | 1,394 | $ | 1,394 | $ | 1,394 |
(dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||
Subordinated Notes, 5.75 % | $ | 70,000 | $ | 70,000 | ||||
Subordinated Notes, 5.0 % | 150,000 | 150,000 | ||||||
Less: unamortized debt issuance costs | (2,509 | ) | (2,704 | ) | ||||
Long-term borrowings | $ | 217,491 | $ | 217,296 |
Three Months Ended June 30 , | Six Months Ended June 30 , | |||||||||||||||
(dollars and shares in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Basic: | ||||||||||||||||
Net income | $ | 37,243 | $ | 37,296 | $ | 70,992 | $ | 73,011 | ||||||||
Average common shares outstanding | 34,540 | 34,306 | 34,511 | 34,283 | ||||||||||||
Basic net income per common share | $ | 1.08 | $ | 1.09 | $ | 2.06 | $ | 2.13 | ||||||||
Diluted: | ||||||||||||||||
Net income | $ | 37,243 | $ | 37,296 | $ | 70,992 | $ | 73,011 | ||||||||
Average common shares outstanding | 34,540 | 34,306 | 34,511 | 34,283 | ||||||||||||
Adjustment for common share equivalents | 25 | 142 | 38 | 145 | ||||||||||||
Average common shares outstanding-diluted | 34,565 | 34,448 | 34,549 | 34,428 | ||||||||||||
Diluted net income per common share | $ | 1.08 | $ | 1.08 | $ | 2.05 | $ | 2.12 | ||||||||
Anti-dilutive shares | 2 | — | 19 | — |
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | |||||||||
Three Months Ended June 30, 2019 | ||||||||||||
Net unrealized gain on securities available-for-sale | $ | 7,976 | $ | 2,051 | $ | 5,925 | ||||||
Less: Reclassification adjustment for net gains included in net income | (563 | ) | (146 | ) | (417 | ) | ||||||
Total unrealized gain | 7,413 | 1,905 | 5,508 | |||||||||
Net unrealized loss on derivatives | (171 | ) | (342 | ) | (513 | ) | ||||||
Less: Reclassification adjustment for gain included in net income | (319 | ) | (83 | ) | (236 | ) | ||||||
Total unrealized loss | (490 | ) | 259 | (749 | ) | |||||||
Other Comprehensive Income | $ | 6,923 | $ | 2,164 | $ | 4,759 | ||||||
Three Months Ended June 30, 2018 | ||||||||||||
Net unrealized loss on securities available-for-sale | $ | (2,605 | ) | $ | 670 | $ | (1,935 | ) | ||||
Less: Reclassification adjustment for net gains included in net income | (26 | ) | (6 | ) | (20 | ) | ||||||
Total unrealized loss | (2,631 | ) | 664 | (1,955 | ) | |||||||
Net unrealized gain on derivatives | 930 | 238 | 692 | |||||||||
Less: Reclassification adjustment for losses included in net income | 87 | 23 | 64 | |||||||||
Total unrealized gain | 1,017 | 261 | 756 | |||||||||
Other Comprehensive Loss | $ | (1,614 | ) | $ | 925 | $ | (1,199 | ) | ||||
Six Months Ended June 30, 2019 | ||||||||||||
Net unrealized gain on securities available-for-sale | $ | 16,127 | $ | (4,148 | ) | $ | 11,979 | |||||
Less: Reclassification adjustment for net gains included in net income | (1,475 | ) | (383 | ) | (1,092 | ) | ||||||
Total unrealized gain | 14,652 | (4,531 | ) | 10,887 | ||||||||
Net unrealized loss on derivatives | (2,234 | ) | 569 | (1,665 | ) | |||||||
Less: Reclassification adjustment for gain included in net income | (1,594 | ) | (414 | ) | (1,180 | ) | ||||||
Total unrealized loss | (3,828 | ) | 155 | (2,845 | ) | |||||||
Other Comprehensive Income | $ | 10,824 | $ | (4,376 | ) | $ | 8,042 | |||||
Six Months Ended June 30, 2018 | ||||||||||||
Net unrealized loss on securities available-for-sale | $ | (8,826 | ) | $ | 1,768 | $ | (7,058 | ) | ||||
Less: Reclassification adjustment for net gains included in net income | (68 | ) | (17 | ) | (51 | ) | ||||||
Total unrealized loss | (8,894 | ) | 1,751 | (7,109 | ) | |||||||
Net unrealized gain on derivatives | 3,537 | 612 | 2,925 | |||||||||
Less: Reclassification adjustment for losses included in net income | (1 | ) | — | (1 | ) | |||||||
Total unrealized gain | 3,536 | 612 | 2,924 | |||||||||
Other Comprehensive Loss | $ | (5,358 | ) | $ | 2,363 | $ | (4,185 | ) |
(dollars in thousands) | Securities Available For Sale | Derivatives | Accumulated Other Comprehensive Income (Loss) | |||||||||
Three Months Ended June 30, 2019 | ||||||||||||
Balance at Beginning of Period | $ | (1,665 | ) | $ | 673 | $ | (992 | ) | ||||
Other comprehensive income (loss) before reclassifications | 5,925 | (513 | ) | 5,412 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (417 | ) | (236 | ) | (653 | ) | ||||||
Net other comprehensive income (loss) during period | 5,508 | (749 | ) | 4,759 | ||||||||
Balance at End of Period | $ | 3,843 | $ | (76 | ) | $ | 3,767 | |||||
Three Months Ended June 30, 2018 | ||||||||||||
Balance at Beginning of Period | $ | (8,959 | ) | $ | 3,549 | $ | (5,410 | ) | ||||
Other comprehensive income (loss) before reclassifications | (1,935 | ) | 692 | (1,243 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (20 | ) | 64 | 44 | ||||||||
Net other comprehensive (loss) income during period | (1,955 | ) | 756 | (1,199 | ) | |||||||
Balance at End of Period | $ | (10,914 | ) | $ | 4,305 | $ | (6,609 | ) |
(dollars in thousands) | Securities Available For Sale | Derivatives | Accumulated Other Comprehensive Income (Loss) | |||||||||
Six Months Ended June 30, 2019 | ||||||||||||
Balance at Beginning of Period | $ | (7,044 | ) | $ | 2,769 | $ | (4,275 | ) | ||||
Other comprehensive income (loss) before reclassifications | 11,979 | (1,665 | ) | 10,314 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (1,092 | ) | (1,180 | ) | (2,272 | ) | ||||||
Net other comprehensive income (loss) during period | 10,887 | (2,845 | ) | 8,042 | ||||||||
Balance at End of Period | $ | 3,843 | $ | (76 | ) | $ | 3,767 | |||||
Six Months Ended June 30, 2018 | ||||||||||||
Balance at Beginning of Period | $ | (3,131 | ) | $ | 1,381 | $ | (1,750 | ) | ||||
Other comprehensive income (loss) before reclassifications | (7,058 | ) | 2,925 | (4,133 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (51 | ) | (1 | ) | (52 | ) | ||||||
Net other comprehensive (loss) income during period | (7,109 | ) | 2,924 | (4,185 | ) | |||||||
Reclassification of the Income Tax Effects of the Tax Cuts and Jobs Act from AOCI | (674 | ) | — | (674 | ) | |||||||
Balance at End of Period | $ | (10,914 | ) | $ | 4,305 | $ | (6,609 | ) |
Details about Accumulated Other Comprehensive Income Components (dollars in thousands) | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Statement Where Net Income is Presented | ||||||||
Three Months Ended June 30 , | ||||||||||
2019 | 2018 | |||||||||
Realized gain on sale of investment securities | $ | 563 | $ | 26 | Gain on sale of investment securities | |||||
Interest income (expense) derivative deposits | 319 | (87 | ) | Interest expense on deposits | ||||||
Income tax (expense) benefit | ( 229 | ) | 17 | Income Tax Expense | ||||||
Total Reclassifications for the Period | $ | 653 | $ | (44 | ) | Net Income |
Details about Accumulated Other Comprehensive Income Components (dollars in thousands) | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | ||||||||
Six Months Ended June 30 , | ||||||||||
2019 | 2018 | |||||||||
Realized gain on sale of investment securities | $ | 1,475 | $ | 68 | Gain on sale of investment securities | |||||
Realized gain on swap termination | 829 | — | Gain on sale of investment securities | |||||||
Interest income (expense) derivative deposits | 765 | 1 | Interest expense on deposits | |||||||
Income tax expense | (797 | ) | (17 | ) | Income Tax Expense | |||||
Total Reclassifications for the Period | $ | 2,272 | $ | 52 | Net Income |
Level 1 | Quoted prices in active exchange markets for identical assets or liabilities; also includes certain U.S. Treasury and other U.S. Government and agency securities actively traded in over-the-counter markets. |
Level 2 | Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data; also includes derivative contracts whose value is determined using a pricing model with observable market inputs or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency securities, corporate debt securities, derivative instruments, and residential mortgage loans held for sale. |
Level 3 | Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for single dealer nonbinding quotes not corroborated by observable market data. This category generally includes certain private equity investments, retained interests from securitizations, and certain collateralized debt obligations. |
(dollars in thousands) | Quoted Prices (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Total (Fair Value) | ||||||||||||
June 30, 2019 | ||||||||||||||||
Assets: | ||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||
U. S. agency securities | $ | — | $ | 225,670 | $ | — | $ | 225,670 | ||||||||
Residential mortgage backed securities | — | 443,545 | — | 443,545 | ||||||||||||
Municipal bonds | — | 69,338 | — | 69,338 | ||||||||||||
Corporate bonds | — | — | 6,572 | 6,572 | ||||||||||||
Other equity investments | — | — | 218 | 218 | ||||||||||||
Loans held for sale | — | 37,506 | — | 37,506 | ||||||||||||
Interest Rate Caps | — | 41 | — | 41 | ||||||||||||
Mortgage banking derivatives | — | — | 387 | 387 | ||||||||||||
Total assets measured at fair value on a recurring basis as of June 30, 2019 | $ | — | $ | 776,059 | $ | 7,177 | $ | 783,236 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swap derivatives | $ | — | $ | 101 | $ | — | $ | 101 | ||||||||
Derivative liability | — | 101 | — | 101 | ||||||||||||
Interest Rate Caps | — | 40 | — | 40 | ||||||||||||
Mortgage banking derivatives | — | — | 309 | 309 | ||||||||||||
Total liabilities measured at fair value on a recurring basis as of June 30, 2019 | $ | — | $ | 242 | $ | 309 | $ | 551 | ||||||||
December 31, 2018 | ||||||||||||||||
Assets: | ||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||
U. S. agency securities | $ | — | $ | 256,345 | $ | — | $ | 256,345 | ||||||||
Residential mortgage backed securities | — | 472,231 | — | 472,231 | ||||||||||||
Municipal bonds | — | 45,769 | — | 45,769 | ||||||||||||
Corporate bonds | — | — | 9,576 | 9,576 | ||||||||||||
Other equity investments | — | — | 218 | 218 | ||||||||||||
Loans held for sale | — | 19,254 | — | 19,254 | ||||||||||||
Mortgage banking derivatives | — | — | 229 | 229 | ||||||||||||
Interest rate swap derivatives | — | 3,727 | — | 3,727 | ||||||||||||
Total assets measured at fair value on a recurring basis as of December 31, 2018 | $ | — | $ | 797,326 | $ | 10,023 | $ | 807,349 | ||||||||
Liabilities: | ||||||||||||||||
Mortgage banking derivatives | $ | — | $ | — | $ | 269 | $ | 269 | ||||||||
Total liabilities measured at fair value on a recurring basis as of December 31, 2018 | $ | — | $ | — | $ | $ |
June 30, 2019 | ||||||||||||
(dollars in thousands) | Fair Value | Aggregate Unpaid Principal Balance | Difference | |||||||||
Residential mortgage loans held for sale | $ | 37,506 | $ | 36,638 | $ | 868 | ||||||
FHA mortgage loans held for sale | $ | — | $ | — | $ | — |
December 31, 2018 | ||||||||||||
(dollars in thousands) | Fair Value | Aggregate Unpaid Principal Balance | Difference | |||||||||
Residential mortgage loans held for sale | $ | 19,254 | $ | 18,797 | $ | 457 | ||||||
FHA mortgage loans held for sale | $ | — | $ | — | $ | — |
(dollars in thousands) | Investment Securities | Mortgage Banking Derivatives | Total | |||||||||
Assets: | ||||||||||||
Beginning balance at January 1, 2019 | $ | 9,794 | $ | 229 | $ | 10,023 | ||||||
Realized gain included in earnings | — | 158 | 158 | |||||||||
Unrealized loss included in other comprehensive income | — | — | — | |||||||||
Principal redemption | (3,004 | ) | — | (3,004 | ) | |||||||
Ending balance at June 30, 2019 | $ | 6,790 | $ | 387 | $ | 7,177 | ||||||
Liabilities: | ||||||||||||
Beginning balance at January 1, 2019 | $ | — | $ | 269 | $ | 269 | ||||||
Realized gain included in earnings | — | 40 | 40 | |||||||||
Principal redemption | — | — | — | |||||||||
Ending balance at June 30, 2019 | $ | — | $ | 309 | $ | 309 |
(dollars in thousands) | Investment Securities | Mortgage Banking Derivatives | Total | |||||||||
Assets: | ||||||||||||
Beginning balance at January 1, 2018 | $ | 1,718 | $ | 43 | $ | 1,761 | ||||||
Realized gain included in earnings | — | 186 | 186 | |||||||||
Purchases of available-for-sale securities | 8,076 | — | 8,076 | |||||||||
Principal redemption | — | — | — | |||||||||
Ending balance at December 31, 2018 | $ | 9,794 | $ | 229 | $ | 10,023 | ||||||
Liabilities: | ||||||||||||
Beginning balance at January 1, 2018 | $ | — | $ | 10 | $ | 10 | ||||||
Realized loss included in earnings | — | 259 | 259 | |||||||||
Principal redemption | — | — | — | |||||||||
Ending balance at December 31, 2018 | $ | — | $ | 269 | $ | 269 |
(dollars in thousands) | Quoted Prices (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Total (Fair Value) | ||||||||||||
June 30, 2019 | ||||||||||||||||
Impaired loans: | ||||||||||||||||
Commercial | $ | — | $ | — | $ | 9,057 | $ | 9,057 | ||||||||
Income producing - commercial real estate | — | — | 7,953 | 7,953 | ||||||||||||
Owner occupied - commercial real estate | — | — | 4,344 | 4,344 | ||||||||||||
Real estate mortgage - residential | — | — | 4,990 | 4,990 | ||||||||||||
Construction - commercial and residential | — | — | 9,155 | 9,155 | ||||||||||||
Home equity | — | — | 487 | 487 | ||||||||||||
Other real estate owned | — | — | 1,394 | 1,394 | ||||||||||||
Total assets measured at fair value on a nonrecurring basis as of June 30, 2019 | $ | — | $ | — | $ | 37,380 | $ | 37,380 |
(dollars in thousands) | Quoted Prices (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Total (Fair Value) | ||||||||||||
December 31, 2018 | ||||||||||||||||
Impaired loans: | ||||||||||||||||
Commercial | $ | — | $ | — | $ | 3,338 | $ | 3,338 | ||||||||
Income producing - commercial real estate | — | — | 18,937 | 18,937 | ||||||||||||
Owner occupied - commercial real estate | — | — | 5,131 | 5,131 | ||||||||||||
Real estate mortgage - residential | — | — | 1,510 | 1,510 | ||||||||||||
Construction - commercial and residential | — | — | 1,981 | 1,981 | ||||||||||||
Home equity | — | — | 487 | 487 | ||||||||||||
Other real estate owned | — | — | 1,394 | 1,394 | ||||||||||||
Total assets measured at fair value on a nonrecurring basis as of December 31, 2018 | $ | — | $ | — | $ | 32,778 | $ | 32,778 |
Fair Value Measurements | ||||||||||||||||||||
(dollars in thousands) | Carrying Value | Fair Value | Quoted Prices (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 6,735 | $ | 6,735 | $ | — | $ | 6,735 | $ | — | ||||||||||
Federal funds sold | 17,914 | 17,914 | — | 17,914 | — | |||||||||||||||
Interest bearing deposits with other banks | 171,985 | 171,985 | — | 171,985 | — | |||||||||||||||
Investment securities | 745,343 | 745,343 | — | 738,553 | 6,790 | |||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 33,903 | 33,903 | — | 33,903 | — | |||||||||||||||
Loans held for sale | 37,506 | 37,506 | — | 37,506 | — | |||||||||||||||
Loans | 7,320,529 | 7,392,664 | — | — | 7,392,664 | |||||||||||||||
Bank owned life insurance | 74,295 | 74,295 | — | 74,295 | — | |||||||||||||||
Annuity investment | 12,088 | 12,088 | — | 12,088 | — | |||||||||||||||
Interest Rate Caps | 41 | 41 | — | 41 | — | |||||||||||||||
Mortgage banking derivatives | 387 | 387 | — | — | 387 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Noninterest bearing deposits | 1,873,902 | 1,873,902 | — | 1,873,902 | — | |||||||||||||||
Interest bearing deposits | 3,574,696 | 3,574,696 | — | 3,574,696 | — | |||||||||||||||
Certificates of deposit | 1,501,294 | 1,509,812 | — | 1,509,812 | — | |||||||||||||||
Customer repurchase agreements | 31,669 | 31,669 | — | 31,669 | — | |||||||||||||||
Borrowings | 467,491 | 468,790 | — | 468,790 | — | |||||||||||||||
Interest rate swap derivatives | 101 | 101 | — | 101 | — | |||||||||||||||
Derivative liability | 101 | 101 | — | 101 | — | |||||||||||||||
Interest Rate Caps | 40 | 40 | — | 40 | — | |||||||||||||||
Mortgage banking derivatives | 309 | 309 | — | — | 309 | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 6,773 | $ | 6,773 | $ | — | $ | 6,773 | $ | — | ||||||||||
Federal funds sold | 11,934 | 11,934 | — | 11,934 | — | |||||||||||||||
Interest bearing deposits with other banks | 303,157 | 303,157 | — | 303,157 | — | |||||||||||||||
Investment securities | 784,139 | 784,139 | — | 774,345 | 9,794 | |||||||||||||||
Federal Reserve and Federal Home Loan Bank stock | 23,506 | 23,506 | — | 23,506 | — | |||||||||||||||
Loans held for sale | 19,254 | 19,254 | — | 19,254 | — | |||||||||||||||
Loans | 6,921,503 | 6,921,048 | — | — | 6,921,048 | |||||||||||||||
Bank owned life insurance | 73,441 | 73,441 | — | 73,441 | — | |||||||||||||||
Annuity investment | 12,417 | 12,417 | — | 12,417 | — | |||||||||||||||
Mortgage banking derivatives | 229 | 229 | — | — | 229 | |||||||||||||||
Interest rate swap derivatives | 3,727 | 3,727 | — | 3,727 | — | |||||||||||||||
Liabilities | ||||||||||||||||||||
Noninterest bearing deposits | 2,104,220 | 2,104,220 | — | 2,104,220 | — | |||||||||||||||
Interest bearing deposits | 3,542,666 | 3,542,666 | — | 3,542,666 | — | |||||||||||||||
Certificates of deposit | 1,327,400 | 1,325,209 | — | 1,325,209 | — | |||||||||||||||
Customer repurchase agreements | 30,413 | 30,413 | — | 30,413 | — | |||||||||||||||
Borrowings | 217,196 | 218,006 | — | 218,006 | — | |||||||||||||||
Mortgage banking derivatives | — | — |
Three Months Ended June 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Interest bearing deposits with other banks and other short-term investments | $ | 209,096 | $ | 1,105 | 2.12 | % | $ | 302,991 | $ | 1,274 | 1.69 | % | ||||||||||||
Loans held for sale (1) | 34,760 | 349 | 4.02 | % | 25,621 | 291 | 4.54 | % | ||||||||||||||||
Loans (1) (2) | 7,260,899 | 101,540 | 5.61 | % | 6,569,931 | 90,633 | 5.53 | % | ||||||||||||||||
Investment securities available for sale (2) | 803,207 | 5,238 | 2.62 | % | 643,409 | 4,058 | 2.53 | % | ||||||||||||||||
Federal funds sold | 20,361 | 47 | 0.93 | % | 16,186 | 40 | 0.99 | % | ||||||||||||||||
Total interest earning assets | 8,328,323 | 108,279 | 5.21 | % | 7,558,138 | 96,296 | 5.11 | % | ||||||||||||||||
Total noninterest earning assets | 337,172 | 297,601 | ||||||||||||||||||||||
Less: allowance for credit losses | 69,972 | 66,175 | ||||||||||||||||||||||
Total noninterest earning assets | 267,200 | 231,426 | ||||||||||||||||||||||
TOTAL ASSETS | $ | 8,595,523 | $ | 7,789,564 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||
Interest bearing transaction | $ | 705,628 | $ | 1,197 | 0.68 | % | $ | 444,842 | $ | 815 | 0.73 | % | ||||||||||||
Savings and money market | 2,628,255 | 12,279 | 1.87 | % | 2,647,910 | 8,546 | 1.29 | % | ||||||||||||||||
Time deposits | 1,442,197 | 8,985 | 2.50 | % | 1,123,330 | 4,687 | 1.67 | % | ||||||||||||||||
Total interest bearing deposits | 4,776,080 | 22,461 | 1.89 | % | 4,216,082 | 14,048 | 1.34 | % | ||||||||||||||||
Customer repurchase agreements | 33,248 | 75 | 0.90 | % | 38,438 | 62 | 0.65 | % | ||||||||||||||||
Other short-term borrowings | 219,508 | 1,435 | 2.59 | % | 230,223 | 997 | 1.71 | % | ||||||||||||||||
Long-term borrowings | 217,458 | 2,979 | 5.42 | % | 217,068 | 2,979 | 5.43 | % | ||||||||||||||||
Total interest bearing liabilities | 5,246,294 | 26,950 | 2.06 | % | 4,701,811 | 18,086 | 1.54 | % | ||||||||||||||||
Noninterest bearing liabilities: | ||||||||||||||||||||||||
Noninterest bearing demand | 2,117,901 | 2,053,044 | ||||||||||||||||||||||
Other liabilities | 64,841 | 32,618 | ||||||||||||||||||||||
Total noninterest bearing liabilities | 2,182,742 | 2,085,662 | ||||||||||||||||||||||
Shareholders’ Equity | 1,166,487 | 1,002,091 | ||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 8,595,523 | $ | 7,789,564 | ||||||||||||||||||||
Net interest income | $ | 81,329 | $ | 78,210 | ||||||||||||||||||||
Net interest spread | 3.15 | % | 3.57 | % | ||||||||||||||||||||
Net interest margin | 3.91 | % | 4.15 | % | ||||||||||||||||||||
Cost of funds | 1.30 | % | 0.96 | % |
(1) | Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $4.7 million and $5.2 million for the three months ended June 30, 2019 and 2018, respectively. |
(2) | Interest and fees on loans and investments exclude tax equivalent adjustments. |
Six Months Ended June 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||
Interest bearing deposits with other banks and other short-term investments | $ | 254,804 | $ | 2,771 | 2.19 | % | $ | 292,772 | $ | 2,255 | 1.55 | % | ||||||||||||
Loans held for sale (1) | 26,386 | 550 | 4.17 | % | 25,293 | 565 | 4.47 | % | ||||||||||||||||
Loans (1) (2) | 7,150,300 | 199,160 | 5.62 | % | 6,502,207 | 174,789 | 5.42 | % | ||||||||||||||||
Investment securities available-for-sale (2) | 806,858 | 10,836 | 2.71 | % | 628,818 | 7,650 | 2.45 | % | ||||||||||||||||
Federal funds sold | 19,063 | 96 | 1.02 | % | 17,258 | 86 | 1.00 | % | ||||||||||||||||
Total interest earning assets | 8,257,411 | 213,413 | 5.21 | % | 7,466,348 | 185,345 | 5.01 | % | ||||||||||||||||
Total noninterest earning assets | 338,290 | 293,488 | ||||||||||||||||||||||
Less: allowance for credit losses | 69,713 | 65,781 | ||||||||||||||||||||||
Total noninterest earning assets | 268,577 | 227,707 | ||||||||||||||||||||||
TOTAL ASSETS | $ | 8,525,988 | $ | 7,694,055 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||
Interest bearing transaction | $ | 648,557 | $ | 2,378 | 0.74 | % | $ | 409,066 | $ | 1,279 | 0.63 | % | ||||||||||||
Savings and money market | 2,709,950 | 24,242 | 1.80 | % | 2,708,480 | 14,210 | 1.06 | % | ||||||||||||||||
Time deposits | 1,386,876 | 16,741 | 2.43 | % | 1,006,356 | 7,688 | 1.54 | % | ||||||||||||||||
Total interest bearing deposits | 4,745,383 | 43,361 | 1.84 | % | 4,123,902 | 23,177 | 1.13 | % | ||||||||||||||||
Customer repurchase agreements | 30,536 | 173 | 1.14 | % | 53,158 | 112 | 0.42 | % | ||||||||||||||||
Other short-term borrowings | 120,832 | 1,575 | 2.59 | % | 234,267 | 2,108 | 1.79 | % | ||||||||||||||||
Long-term borrowings | 217,408 | 5,958 | 5.45 | % | 217,019 | 5,958 | 5.46 | % | ||||||||||||||||
Total interest bearing liabilities | 5,114,159 | 51,067 | 2.01 | % | 4,628,346 | 31,355 | 1.37 | % | ||||||||||||||||
Noninterest bearing liabilities: | ||||||||||||||||||||||||
Noninterest bearing demand | 2,195,084 | 2,042,738 | ||||||||||||||||||||||
Other liabilities | 68,963 | 38,535 | ||||||||||||||||||||||
Total noninterest bearing liabilities | 2,264,047 | 2,081,273 | ||||||||||||||||||||||
Shareholders’ equity | 1,147,782 | 984,436 | ||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 8,525,988 | $ | 7,694,055 | ||||||||||||||||||||
Net interest income | $ | 162,346 | $ | 153,990 | ||||||||||||||||||||
Net interest spread | 3.20 | % | 3.64 | % | ||||||||||||||||||||
Net interest margin | 3.97 | % | 4.16 | % | ||||||||||||||||||||
Cost of funds | 1.24 | % | 0.85 | % |
(1) | Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $8.8 million and $9.9 million for the six months ended June 30, 2019 and 2018, respectively. |
(2) | Interest and fees on loans and investments exclude tax equivalent adjustments. |
Six Months Ended June 30, | ||||||||
(dollars in thousands) | 2019 | 2018 | ||||||
Balance at beginning of period | $ | 69,944 | $ | 64,758 | ||||
Charge-offs: | ||||||||
Commercial | 5 | 1,261 | ||||||
Income producing - commercial real estate | 5,343 | 121 | ||||||
Owner occupied - commercial real estate | — | 132 | ||||||
Real estate mortgage - residential | — | — | ||||||
Construction - commercial and residential | — | 517 | ||||||
Construction - C&I (owner occupied) | — | — | ||||||
Home equity | — | — | ||||||
Other consumer | 2 | — | ||||||
Total charge-offs | 5,350 | 2,031 | ||||||
Recoveries: | ||||||||
Commercial | 167 | 26 | ||||||
Income producing - commercial real estate | 302 | 2 | ||||||
Owner occupied - commercial real estate | 2 | 2 | ||||||
Real estate mortgage - residential | 3 | 3 | ||||||
Construction - commercial and residential | 37 | 95 | ||||||
Construction - C&I (owner occupied) | — | — | ||||||
Home equity | — | 127 | ||||||
Other consumer | 21 | 8 | ||||||
Total recoveries | 532 | 263 | ||||||
Net charge-offs | 4,818 | 1,768 | ||||||
Provision for Credit Losses | 6,960 | 3,619 | ||||||
Balance at end of period | $ | 72,086 | $ | 66,609 | ||||
Annualized ratio of net charge-offs during the period to average loans outstanding during the period | 0.13 | % | 0.05 | % |
June 30, 2019 | December 31, 2018 | |||||||||||||||
(dollars in thousands) | Amount | %(1) | Amount | %(1) | ||||||||||||
Commercial | $ | 18,136 | 20 | % | $ | 15,857 | 22 | % | ||||||||
Income producing - commercial real estate | 27,010 | 50 | % | 28,034 | 46 | % | ||||||||||
Owner occupied - commercial real estate | 5,756 | 13 | % | 6,242 | 13 | % | ||||||||||
Real estate mortgage - residential | 1,355 | 1 | % | 965 | 2 | % | ||||||||||
Construction - commercial and residential | 17,674 | 14 | % | 17,484 | 15 | % | ||||||||||
Construction - C&I (owner occupied) | 1,332 | 1 | % | 691 | 1 | % | ||||||||||
Home equity | 581 | 1 | % | 599 | 1 | % | ||||||||||
Other consumer | 242 | — | 72 | — | ||||||||||||
Total allowance | $ | 72,086 | 100 | % | $ | 69,944 | 100 | % |
(1) | Represents the percent of loans in each category to total loans. |
June 30, | December 31, | |||||||
(dollars in thousands) | 2019 | 2018 | ||||||
Nonaccrual Loans: | ||||||||
Commercial | $ | 16,053 | $ | 7,115 | ||||
Income producing - commercial real estate | 4,563 | 1,766 | ||||||
Owner occupied - commercial real estate | 1,510 | 2,368 | ||||||
Real estate mortgage - residential | 5,640 | 1,510 | ||||||
Construction - commercial and residential | 9,155 | 3,031 | ||||||
Construction - C&I (owner occupied) | — | — | ||||||
Home equity | 487 | 487 | ||||||
Other consumer | — | — | ||||||
Accrual loans-past due 90 days | — | — | ||||||
Total nonperforming loans (1) | 37,408 | 16,277 | ||||||
Other real estate owned | 1,394 | 1,394 | ||||||
Total nonperforming assets | $ | 38,802 | $ | 17,671 | ||||
Coverage ratio, allowance for credit losses to total nonperforming loans | 192.70 | % | 429.72 | % | ||||
Ratio of nonperforming loans to total loans | 0.51 | % | 0.23 | % | ||||
Ratio of nonperforming assets to total assets | 0.45 | % | 0.21 | % |
(1) | Nonaccrual loans reported in the table above include one loan totaling $2.3 million that migrated from a performing TDRs during the six months ended June 30, 2019, as compared to the six months ended June 30, 2018 where there were two loans totaling $937 thousand that migrated from performing TDRs. |
June 30, 2019 | December 31, 2018 | |||||||||||||||
(dollars in thousands) | Amount | % | Amount | % | ||||||||||||
Commercial | $ | 1,475,201 | 20 | % | $ | 1,553,112 | 22 | % | ||||||||
Income producing - commercial real estate | 3,666,815 | 50 | % | 3,256,900 | 46 | % | ||||||||||
Owner occupied - commercial real estate | 970,850 | 13 | % | 887,814 | 13 | % | ||||||||||
Real estate mortgage - residential | 105,191 | 1 | % | 106,418 | 2 | % | ||||||||||
Construction - commercial and residential | 1,012,789 | 14 | % | 1,039,815 | 15 | % | ||||||||||
Construction - C&I (owner occupied) | 76,324 | 1 | % | 57,797 | 1 | % | ||||||||||
Home equity | 83,447 | 1 | % | 86,603 | 1 | % | ||||||||||
Other consumer | 1,998 | — | 2,988 | — | ||||||||||||
Total loans | 7,392,615 | 100 | % | 6,991,447 | 100 | % | ||||||||||
Less: allowance for credit losses | (72,086 | ) | (69,944 | ) | ||||||||||||
Net loans | $ | 7,320,529 | $ | 6,921,503 |
(dollars in thousands) | 2019 | |||
Unfunded loan commitments | $ | 2,398,984 | ||
Unfunded lines of credit | 90,902 | |||
Letters of credit | 78,525 | |||
Total | $ | 2,568,411 |
Change in interest rates (basis points) | Percentage change in net interest income | Percentage change in net income | Percentage change in market value of portfolio equity | |||
+400 | +16.6% | +28.8% | +3.9% | |||
+300 | +12.5% | +21.6% | +3.6% | |||
+200 | +8.4% | +14.5% | +3.1% | |||
+100 | +4.2% | +7.3% | +2.0% | |||
0 | — | — | — | |||
-100 | -3.8% | -6.6% | -3.0% | |||
-200 | -5.7% | -9.9% | -7.7% |
GAP Analysis | ||||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Repricible in: | 0-3 months | 4-12 months | 13-36 months | 37-60 months | Over 60 months | Total Rate Sensitive | Non Sensitive | Total | ||||||||||||||||||||||||
RATE SENSITIVE ASSETS: | ||||||||||||||||||||||||||||||||
Investment securities | $ | 185,852 | $ | 76,621 | $ | 169,361 | $ | 121,902 | $ | 225,600 | $ | 779,336 | ||||||||||||||||||||
Loans (1)(2) | 4,003,852 | 549,180 | 1,091,962 | 1,033,287 | 751,840 | 7,430,121 | ||||||||||||||||||||||||||
Fed funds and other short-term investments | 189,899 | — | — | — | — | 189,899 | ||||||||||||||||||||||||||
Other earning assets | 74,295 | — | — | — | — | 74,295 | ||||||||||||||||||||||||||
Total | $ | 4,453,898 | $ | 625,801 | $ | 1,261,323 | $ | 1,155,189 | $ | 977,440 | $ | 8,473,651 | $ | 196,352 | $ | 8,670,003 | ||||||||||||||||
RATE SENSITIVE LIABILITIES: | ||||||||||||||||||||||||||||||||
Noninterest bearing demand | $ | 71,984 | $ | 199,273 | $ | 426,953 | $ | 308,870 | $ | 866,822 | $ | 1,873,902 | ||||||||||||||||||||
Interest bearing transaction | 862,553 | — | — | — | — | 862,553 | ||||||||||||||||||||||||||
Savings and money market | 2,712,143 | — | — | — | — | 2,712,143 | ||||||||||||||||||||||||||
Time deposits | 255,101 | 649,747 | 459,757 | 133,547 | 3,142 | 1,501,294 | ||||||||||||||||||||||||||
Customer repurchase agreements and fed funds purchased | 31,669 | — | — | — | — | 31,669 | ||||||||||||||||||||||||||
Other borrowings | 225,000 | — | 148,130 | — | 69,361 | 442,491 | ||||||||||||||||||||||||||
Total | $ | 4,158,450 | $ | 849,020 | $ | 1,034,840 | $ | 442,417 | $ | 939,325 | $ | 7,424,052 | $ | 61,369 | $ | 7,485,421 | ||||||||||||||||
GAP | $ | 295,448 | $ | (223,219 | ) | $ | 226,483 | $ | 712,772 | $ | 38,115 | $ | 1,049,599 | |||||||||||||||||||
Cumulative GAP | $ | 295,448 | $ | 72,229 | $ | 298,712 | $ | 1,011,484 | $ | 1,049,599 | ||||||||||||||||||||||
Cumulative gap as percent of total assets | 3.41 | % | 0.83 | % | 3.45 | % | 11.67 | % | 12.11 | % | ||||||||||||||||||||||
OFF BALANCE-SHEET: | ||||||||||||||||||||||||||||||||
Interest Rate Swaps - LIBOR based | $ | 100,000 | $ | — | $ | (100,000 | ) | $ | — | $ | — | $ | — | |||||||||||||||||||
Interest Rate Swaps - Fed Funds based | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total | $ | 100,000 | $ | — | $ | (100,000 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
GAP | $ | 395,448 | $ | (223,219 | ) | $ | 126,483 | $ | 712,772 | $ | 38,115 | $ | 1,049,599 | |||||||||||||||||||
Cumulative GAP | $ | 395,448 | $ | 172,229 | $ | 298,712 | $ | 1,011,484 | $ | 1,049,599 | $ | — | ||||||||||||||||||||
Cumulative gap as percent of total assets | 4.56 | % | 1.99 | % | 3.45 | % | 11.67 | % | 12.11 | % |
Minimum Required For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Regulations * | |||||||||||||||||||||||
Company | Bank | |||||||||||||||||||||||
Actual | Actual | |||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of June 30, 2019 | ||||||||||||||||||||||||
CET1 capital (to risk weighted aseets) | $ | 1,075,087 | 12.87 | % | $ | 1,227,269 | 14.70 | % | 7.000 | % | 6.5 | % | ||||||||||||
Total capital (to risk weighted assets) | 1,367,227 | 16.36 | % | 1,299,409 | 15.57 | % | 10.500 | % | 10.0 | % | ||||||||||||||
Tier 1 capital (to risk weighted assets) | 1,075,087 | 12.87 | % | 1,227,269 | 14.70 | % | 8.500 | % | 8.0 | % | ||||||||||||||
Tier 1 capital (to average assets) | 1,075,087 | 12.66 | % | 1,227,269 | 14.46 | % | 4.000 | % | 5.0 | % | ||||||||||||||
As of December 31, 2018 | ||||||||||||||||||||||||
CET1 capital (to risk weighted aseets) | $ | 1,007,438 | 12.49 | % | $ | 1,147,151 | 14.23 | % | 6.375 | % | 6.5 | % | ||||||||||||
Total capital (to risk weighted assets) | 1,297,427 | 16.08 | % | 1,217,140 | 15.10 | % | 9.875 | % | 10.0 | % | ||||||||||||||
Tier 1 capital (to risk weighted assets) | 1,007,438 | 12.49 | % | 1,147,151 | 14.23 | % | 7.875 | % | 8.0 | % | ||||||||||||||
Tier 1 capital (to average assets) | 1,007,438 | 12.10 | % | 1,147,151 | 13.78 | % | 5.000 | % | 5.0 | % |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | Twelve Months Ended December 31, 2018 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||||||||||||
Common shareholders’ equity | $ | 1,184,582 | $ | 1,108,941 | $ | 1,023,137 | ||||||||||||||
Less: Intangible assets | (105,219 | ) | (105,766 | ) | (106,820 | ) | ||||||||||||||
Tangible common equity | $ | 1,079,363 | $ | 1,003,175 | $ | 916,317 | ||||||||||||||
Book value per common share | $ | 34.30 | $ | 32.25 | $ | 29.82 | ||||||||||||||
Less: Intangible book value per common share | (3.05 | ) | (3.08 | ) | (3.11 | ) | ||||||||||||||
Tangible book value per common share | $ | 31.25 | $ | 29.17 | $ | 26.71 | ||||||||||||||
Total assets | $ | 8,670,003 | $ | 8,389,137 | $ | 7,880,017 | ||||||||||||||
Less: Intangible assets | (105,219 | ) | (105,766 | ) | (106,820 | ) | ||||||||||||||
Tangible assets | $ | 8,564,784 | $ | 8,283,371 | $ | 7,773,197 | ||||||||||||||
Tangible common equity ratio | 12.60 | % | 12.11 | % | 11.79 | % | ||||||||||||||
Average common shareholders’ equity | $ | 1,166,487 | $ | 1,147,782 | $ | 1,022,642 | $ | 1,002,091 | $ | 984,436 | ||||||||||
Less: Average intangible assets | (105,280 | ) | �� | (105,430 | ) | (106,806 | ) | (106,955 | ) | (107,112 | ) | |||||||||
Average tangible common equity | $ | 1,061,206 | $ | 1,042,352 | $ | 915,836 | $ | 895,136 | $ | 877,324 | ||||||||||
Net Income | $ | 37,243 | $ | 70,992 | $ | 152,276 | $ | 37,296 | $ | 73,011 | ||||||||||
Average tangible common equity | $ | 1,061,206 | $ | 1,042,352 | $ | 915,836 | $ | 895,136 | $ | 877,324 | ||||||||||
Annualized Return on Average Tangible Common Equity | 14.08 | % | 13.73 | % | 16.63 | % | 16.71 | % | 16.78 | % |
(a) Sales of Unregistered Securities. | None | |
(b) Use of Proceeds. | Not Applicable | |
(c) Issuer Purchases of Securities. | None |
None |
Not Applicable |
(a) Required 8-K Disclosures | None | |
(b) Changes in Procedures for Director Nominations | None |
Certificate of Incorporation of the Company, as amended (1) | |
Bylaws of the Company (2) | |
Subordinated Indenture, dated as of August 5, 2014, between the Company and Wilmington Trust, National Association, as Trustee (3) | |
First Supplemental Indenture, dated as of August 5, 2014, between the Company and Wilmington Trust, National Association, as Trustee (4) | |
4.3 | Form of Global Note representing the 5.75% Subordinated Notes due September 1, 2024 (included in Exhibit 4.2) |
Second Supplemental Indenture, dated as of July 26, 2016, between the Company and Wilmington Trust, National Association, as Trustee (5) | |
4.5 | Form of Global Note representing the 5.00% Fixed-to-Floating Rate Subordinated Notes due August 1, 2026 (included in Exhibit 4.4) |
2016 Stock Option Plan (6) | |
10.2 | 2006 Stock Plan (7) |
Employment Agreement dated as of April 7, 2017, between EagleBank and Charles D. Levingston (8) | |
Amended and Restated Employment Agreement dated as of January 31, 2017, between EagleBank and Antonio F. Marquez (9) | |
Amended and Restated Employment Agreement dated as of January 31, 2017, between EagleBank and Susan G. Riel (10) | |
Amended and Restated Employment Agreement dated as of January 31, 2017, between EagleBank and Janice L. Williams (11) | |
Non-Compete Agreement dated as of April 7, 2017, between EagleBank and Charles D. Levingston (12) | |
Non-Compete Agreement dated as of August 1, 2014, between EagleBank and Antonio F. Marquez (13) |
Non-Compete Agreement dated as of August 1, 2014, between EagleBank and Susan G. Riel (14) | |
Non-Compete Agreement dated as of August 1, 2014, between EagleBank and Janice L. Williams (15) | |
Form of Supplemental Executive Retirement Plan Agreement (16) | |
Amended and Restated Employment Agreement dated as of January 31, 2017 between EagleBank and Lindsey S. Rheaume (17) | |
Non-Compete Agreement dated as of December 15, 2014, between EagleBank and Lindsey S. Rheaume (18) | |
10.14 | Virginia Heritage Bank 2006 Stock Option Plan (19) |
10.15 | Virginia Heritage Bank 2010 Long-Term Incentive Plan (20) |
First Amendment to Employment Agreement of Charles D. Levingston (21) | |
First Amendment to Amended and Restated Employment Agreement of Antonio F. Marquez (22) | |
First Amendment to Amended and Restated Employment Agreement of Susan G. Riel (23) | |
First Amendment to Amended and Restated Employment Agreement of Janice L. Williams (24) | |
First Amendment to Amended and Restated Employment Agreement of Lindsey S. Rheaume (25) | |
2019 Senior Executive Incentive Plan (26) | |
2019 Long Term Incentive Plan (27) | |
11 | Statement Regarding Computation of Per Share Income |
See Note 11 of the Notes to Consolidated Financial Statements | |
Subsidiaries of the Registrant | |
Certification of Susan G. Riel | |
Certification of Charles D. Levingston | |
Certification of Susan G. Riel | |
Certification of Charles D. Levingston | |
101 | Interactive data files pursuant to Rule 405 of Regulation S-T: |
(i) | Consolidated Balance Sheets at June 30, 2019, December 31, 2018 | |
(ii) | Consolidated Statement of Operations for the three and six months ended June 30, 2019 and 2018 | |
(iii) | Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2019 and 2018 | |
(iv) | Consolidated Statement of Changes in Shareholders’ Equity for the three and six months ended June 30, 2019 and 2018 | |
(v) | Consolidated Statement of Cash Flows for the six months ended June 30, 2019 and 2018 | |
(vi) | Notes to the Consolidated Financial Statements |
(1) | Incorporated by reference to the Exhibit of the same number to the Company’s Current Report on Form 8-K filed on May 17, 2016. |
(2) | Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed on December 18, 2017. |
(3) | Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on August 5, 2014. |
(4) | Incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on August 5, 2014. |
(5) | Incorporated by Reference to Exhibit 4.2 to the Company’s Current report on Form 8-K filed on July 22, 2016. |
(6) | Incorporated by reference to Exhibit 4 to the Company’s Registration Statement on Form S-8 (Registration No. 333-211857) filed on June 6, 2016. |
(7) | Incorporated by reference to Exhibit 4 to the Company’s Registration Statement on Form S-8 (No. 333-187713) |
(8) | Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on April 11, 2017. |
(9) | Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on February 6, 2017. |
(10) | Incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on February 6, 2017. |
(11) | Incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed on February 6, 2017. |
(12) | Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on April 11, 2017. |
(13) | Incorporated by reference to Exhibit 10.7 to the Company’s Current Report on Form 8-K filed on December 15, 2014. |
(14) | Incorporated by reference to Exhibit 10.9 to the Company’s Current Report on Form 8-K filed on December 15, 2014. |
(15) | Incorporated by reference to Exhibit 10.10 to the Company’s Current Report on Form 8-K filed on December 15, 2014. |
(16) | Incorporated by reference to Exhibit 10.22 to the Company’s Annual Report on Form 10-K for the Year ended December 31, 2013. |
(17) | Incorporated by reference to Exhibit 10.7 to the Company’s current Report on Form 8-K filed on February 6, 2017. |
(18) | Incorporated by reference to Exhibit 10.29 to the Company’s Form 10-Q for the Quarter ended March 31, 2015. |
(19) | Incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-8 (No. 333-199875) |
(20) | Incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-8 (No. 333-199875) |
(21) | Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on February 28, 2018. |
(22) | Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on February 28, 2018. |
(23) | Incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K filed on February 28, 2018. |
(24) | Incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K filed on February 28, 2018. |
(25) | Incorporated by reference to Exhibit 10.7 to the Company’s Current Report on Form 8-K filed on February 28, 2018. |
(26) | Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on February 15, 2019. |
(27) | Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 15, 2019. |
EAGLE BANCORP, INC. | |||
Date: August 9, 2019 | By: | /s/ Susan G. Riel | |
Susan G. Riel, President and Chief Executive Officer of the Company | |||
Date: August 9, 2019 | By: | /s/ Charles D. Levingston | |
Charles D. Levingston, Executive Vice President and | |||
Chief Financial Officer of the Company |