Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover [Abstract] | ||
Entity Interactive Data Current | Yes | |
Entity Address, Address Line One | 220 South King Street | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Small Business | false | |
Title of 12(b) Security | Common stock, No Par Value | |
Entity Incorporation, State or Country Code | HI | |
Entity Registrant Name | CENTRAL PACIFIC FINANCIAL CORP | |
Entity Central Index Key | 0000701347 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 28,115,353 | |
Entity Tax Identification Number | 99-0212597 | |
Trading Symbol | CPF | |
Security Exchange Name | NYSE | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-31567 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 544-0500 | |
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 81,972 | $ 78,418 |
Interest-bearing deposits in other banks | 11,021 | 24,554 |
Investment securities: | ||
Available-for-sale debt securities, at fair value | 1,184,023 | 1,126,983 |
Equity securities, at fair value | 1,002 | 1,127 |
Total investment securities | 1,185,025 | 1,128,110 |
Loans held for sale | 3,910 | 9,083 |
Loans | 4,511,998 | 4,449,540 |
Allowance for credit losses | (59,645) | (47,971) |
Loans, net of allowance for credit losses | 4,452,353 | 4,401,569 |
Premises and equipment, net | 50,447 | 46,343 |
Accrued interest receivable | 16,851 | 16,500 |
Investment in unconsolidated subsidiaries | 16,721 | 17,115 |
Other real estate owned | 100 | 164 |
Mortgage servicing rights | 13,345 | 14,718 |
Bank-owned life insurance | 159,637 | 159,656 |
Federal Home Loan Bank stock | 18,109 | 14,983 |
Right-of-use lease asset | 51,198 | 52,348 |
Other assets | 47,859 | 49,111 |
Total assets | 6,108,548 | 6,012,672 |
Deposits: | ||
Noninterest-bearing demand | 1,430,540 | 1,450,532 |
Interest-bearing demand | 1,018,508 | 1,043,010 |
Savings and money market | 1,693,280 | 1,600,028 |
Time | 993,741 | 1,026,453 |
Total deposits | 5,136,069 | 5,120,023 |
Short-term borrowings | 222,000 | 150,000 |
Long-term debt | 101,547 | 101,547 |
Lease liability | 51,541 | 52,632 |
Other liabilities | 63,561 | 59,950 |
Total liabilities | 5,574,718 | 5,484,152 |
Equity | ||
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at March 31, 2020 and December 31, 2019 | 0 | 0 |
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 28,115,353 at March 31, 2020 and 28,289,257 at December 31, 2019 | 442,853 | 447,602 |
Additional paid-in capital | 92,284 | 91,611 |
Accumulated deficit | (20,428) | (19,102) |
Accumulated other comprehensive income | 19,072 | 8,409 |
Total shareholders' equity | 533,781 | 528,520 |
Stockholders' Equity Attributable to Noncontrolling Interest | 49 | 0 |
Total equity | 533,830 | 528,520 |
Total liabilities and equity | $ 6,108,548 | $ 6,012,672 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares | 185,000,000 | 185,000,000 |
Common stock, issued shares | 28,115,353 | 28,289,257 |
Common stock, outstanding shares | 28,115,353 | 28,289,257 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Interest and fees on loans and leases | $ 46,204 | $ 43,768 |
Interest and dividends on investment securities: | ||
Taxable interest | 6,757 | 8,260 |
Tax-exempt interest | 668 | 866 |
Dividends | 17 | 18 |
Interest on deposits in other banks | 36 | 68 |
Dividends on Federal Home Loan Bank stock | 132 | 161 |
Total interest income | 53,814 | 53,141 |
Interest on deposits: | ||
Demand | 176 | 192 |
Savings and money market | 1,118 | 791 |
Time | 3,268 | 5,092 |
Interest on short-term borrowings | 508 | 893 |
Interest on long-term debt | 914 | 1,060 |
Total interest expense | 5,984 | 8,028 |
Net interest income | 47,830 | 45,113 |
Provision for credit losses | 9,329 | 1,283 |
Net interest income after provision for credit losses | 38,501 | 43,830 |
Other operating income: | ||
Mortgage banking income | 337 | 1,573 |
Service charges on deposit accounts | 2,050 | 2,081 |
Other service charges and fees | 4,897 | 3,215 |
Income from fiduciary activities | 1,297 | 965 |
Equity in earnings of unconsolidated subsidiaries | 26 | 8 |
Income (loss) from bank-owned life insurance | (19) | 952 |
Other | 298 | 2,879 |
Total other operating income | 8,886 | 11,673 |
Other operating expense: | ||
Salaries and employee benefits | 20,347 | 19,889 |
Net occupancy | 3,672 | 3,458 |
Equipment | 1,097 | 1,006 |
Communication expense | 837 | 734 |
Legal and professional services | 2,028 | 1,570 |
Computer software expense | 2,943 | 2,597 |
Advertising expense | 1,092 | 711 |
Foreclosed asset expense | 67 | 159 |
Other | 4,157 | 4,224 |
Total other operating expense | 36,240 | 34,348 |
Income before income taxes | 11,147 | 21,155 |
Income tax expense | 2,821 | 5,118 |
Net income | $ 8,326 | $ 16,037 |
Per common share data: | ||
Basic earnings per common share (in dollars per share) | $ 0.30 | $ 0.56 |
Diluted earnings per common share (in dollars per share) | 0.29 | 0.55 |
Cash dividends declared (in dollars per share) | $ 0.23 | $ 0.21 |
Weighted average common shares outstanding used in computation: | ||
Basic shares (in shares) | 28,126,400 | 28,758,310 |
Diluted shares (in shares) | 28,277,753 | 28,979,855 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 8,326 | $ 16,037 |
Other comprehensive income, net of tax: | ||
Net change in unrealized gain on investment securities | 10,147 | 10,996 |
Defined benefit plans | 516 | 242 |
Total other comprehensive income, net of tax | 10,663 | 11,238 |
Comprehensive income | $ 18,989 | $ 27,275 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Accum. Deficit | Accum. Other Comp. Income (Loss) | Non- Controlling Interest |
Balance at beginning of period at Dec. 31, 2018 | $ 491,725 | $ 470,660 | $ 88,876 | $ (51,718) | $ (16,093) | $ 0 | |
Balance (in shares) at Dec. 31, 2018 | 28,967,715 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 16,037 | 16,037 | |||||
Other comprehensive income | 11,238 | 11,238 | |||||
Cash dividends (of $0.21, $0.23, $0.23, $0.19, $0.21 and $0.21, per share, respectively) | (6,052) | (6,052) | |||||
Common stock repurchased and retired and other related costs (344,362, and 269,885, and 235,043 shares, respectively) | (7,708) | (7,708) | |||||
Shares of common stock repurchased and other related costs (in shares) | (277,000) | ||||||
Share-based compensation | 498 | 498 | |||||
Share-based compensation (in shares) | 32,326 | ||||||
Balance at end of period at Mar. 31, 2019 | 502,638 | 462,952 | 89,374 | (41,733) | (7,955) | 0 | |
Balance (in shares) at Mar. 31, 2019 | 28,723,041 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Adjusted balance | 8,409 | ||||||
Balance at beginning of period at Dec. 31, 2019 | $ 528,520 | 447,602 | 91,611 | (19,102) | 8,409 | 0 | |
Balance (in shares) at Dec. 31, 2019 | 28,289,257 | 28,289,257 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | $ 8,326 | 8,326 | |||||
Other comprehensive income | 10,663 | 10,663 | |||||
Cash dividends (of $0.21, $0.23, $0.23, $0.19, $0.21 and $0.21, per share, respectively) | (6,496) | (6,496) | |||||
Common stock repurchased and retired and other related costs (344,362, and 269,885, and 235,043 shares, respectively) | (4,749) | (4,749) | |||||
Shares of common stock repurchased and other related costs (in shares) | (206,802) | ||||||
Share-based compensation | 673 | 673 | |||||
Share-based compensation (in shares) | 32,898 | ||||||
Non-controlling interest | 49 | 49 | |||||
Balance at end of period at Mar. 31, 2020 | $ 533,830 | $ 442,853 | $ 92,284 | $ (20,428) | $ 19,072 | $ 49 | |
Balance (in shares) at Mar. 31, 2020 | 28,115,353 | 28,115,353 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.23 | $ 0.21 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 8,326 | $ 16,037 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 9,329 | 1,283 |
Depreciation and amortization of premises and equipment | 1,504 | 1,540 |
Non-cash lease expense | 59 | 79 |
Cash flows from operating leases | (1,594) | (1,549) |
Loss on sale of other real estate, net of write-downs | 64 | 138 |
Amortization of mortgage servicing rights | 1,547 | 471 |
Net amortization and accretion of premium/discounts on investment securities | 1,982 | 2,211 |
Share-based compensation expense | 673 | 498 |
Net gain on sales of residential mortgage loans | (727) | (611) |
Proceeds from sales of loans held for sale | 31,498 | 31,877 |
Originations of loans held for sale | (25,598) | (28,158) |
Equity in earnings of unconsolidated subsidiaries | (26) | (8) |
Distributions from unconsolidated subsidiaries | 73 | 82 |
Net decrease (increase) in cash surrender value of bank-owned life insurance | 19 | (952) |
Deferred income taxes | (406) | 5,013 |
Net tax benefits from share-based compensation | (48) | 105 |
Net change in other assets and liabilities | 4,570 | (2,173) |
Net cash provided by operating activities | 31,245 | 25,883 |
Cash flows from investing activities: | ||
Proceeds from maturities of and calls on investment securities available-for-sale | 50,878 | 43,093 |
Purchases of investment securities available-for-sale | (96,068) | 0 |
Proceeds from sale of MasterCard stock | 0 | 2,555 |
Net loan originations | (41,339) | (6,851) |
Purchases of loan portfolios | (22,340) | (18,286) |
Net purchases of premises, equipment and land | (5,608) | (782) |
Net return of capital from unconsolidated subsidiaries | 0 | 622 |
Contributions to unconsolidated subsidiaries | (422) | 0 |
Net (purchases of) proceeds from redemption of FHLB stock | (3,126) | 500 |
Net cash (used in) / provided by investing activities | (118,025) | 20,851 |
Cash flows from financing activities: | ||
Net increase in deposits | 16,046 | 1,638 |
Repayments of long-term debt | 0 | (20,619) |
Net increase (decrease) in short-term borrowings | 72,000 | (18,000) |
Cash dividends paid on common stock | (6,496) | (6,052) |
Repurchases of common stock and other related costs | (4,749) | (7,708) |
Net cash provided by financing activities | 76,801 | (50,741) |
Net decrease in cash and cash equivalents | (9,979) | (4,007) |
Cash and cash equivalents at beginning of period | 102,972 | 102,186 |
Cash and cash equivalents at end of period | 92,993 | 98,179 |
Cash paid during the period for | ||
Interest | 6,140 | 8,402 |
Income taxes | 170 | 0 |
Net transfer of investment securities held-to-maturity to available-for-sale | 0 | (149,042) |
Right-of-use lease assets obtained in exchange for lease liabilities | $ 0 | $ 55,887 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us" or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2019. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In January 2020, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment has been consolidated into our financial statements. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. Our investments in unconsolidated subsidiaries accounted for under the equity, proportional amortization and cost methods were $0.1 million, $15.0 million and $1.6 million, respectively, at March 31, 2020 and $0.2 million, $15.3 million and $1.6 million, respectively, at December 31, 2019. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements. Risks and Uncertainties COVID-19 Pandemic In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China, and has since spread to a number of other countries, including the United States. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. The COVID-19 pandemic has severely impacted the level of economic activity in the local, national and global economies and financial markets. The pandemic has resulted in temporary closures of many businesses and the institution of social distancing and sheltering in place requirements in many states and communities. The Company and its customers have been adversely affected by the COVID-19 pandemic. The extent to which the COVID - 19 pandemic negatively impacts the Company's business, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, is unknown at this time and will depend on future developments, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. If the pandemic is sustained, it may further adversely impact the Company and the State of Hawaii and impair the ability of the Company's customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on its business operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on the Company's investments, loans, mortgage servicing rights, deferred tax assets, or counter-party risk derivatives. Change in Operating Segments and Reclassifications In the first quarter of 2020, the Company reassessed the alignment of its reportable segments and combined its three reportable segments (Banking Operations, Treasury and All Others segments) into a single operating segment. We believe this change better reflects how the Company's Executive Committee, or its chief operating decision maker ("CODM"), manages, allocates resources and assesses performance of the activities of the Company. The Company also believes that this change is better aligned with how the Company's CODM manages its business. Segment results for 2019 have been reclassified to reflect the realignment of the Company’s reportable segments and be comparable to the segment results for 2020. This change in reportable segments did not have an impact on the Company's previously reported historical consolidated financial statements. Investment Securities Investments in debt securities are designated as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). Investments in debt securities are designated as HTM only if we have the positive intent and ability to hold these securities to maturity. HTM securities are reported at amortized cost in the consolidated balance sheets. Trading securities are reported at fair value, with changes in fair value included in net income. Debt securities not classified as HTM or trading are classified as AFS and are reported at fair value, with net unrealized gains and losses, net of applicable taxes, excluded from net income and included in accumulated other comprehensive income (loss) ("AOCI"). Equity securities with readily determinable fair values are carried at fair value, with changes in fair value included in net income. Equity securities without readily determinable fair values are carried 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. The Company classifies its investment securities portfolio into the following major security types: mortgage-backed securities ("MBS"), other debt securities and equity securities. The Company’s MBS portfolio is comprised primarily of residential MBS issued by United States of America ("U.S.") government entities and agencies. These securities are either explicitly or implicitly guaranteed by an agency of the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The remainder of the MBS portfolio are commercial MBS issued by U.S government entities and agencies (which there is no minimum credit rating), non-agency residential MBS (which shall meet a minimum credit rating of AAA) and non-agency commercial MBS (which shall meet a minimum credit rating of BBB and meet minimum internal credit guidelines). The Company’s other debt securities portfolio is comprised of obligations issued by U.S. government entities and agencies, obligations issued by states and political subdivisions (which shall meet a minimum credit rating of BBB), and corporate bonds (which shall meet a minimum credit rating of BBB-). Interest income on investment securities includes amortization of premiums and accretion of discounts. We amortize premiums to the earliest call date. We accrete discounts associated with investment securities using the effective interest method over the life of the respective security instrument. Gains and losses on the sale of investment securities are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual status is reversed against current period interest income. There were no investment securities on nonaccrual status as of March 31, 2020 and the Company did not reverse any accrued interest against interest income during the three months ended March 31, 2020. Allowance for Credit Losses (“ACL”) for AFS Debt Securities AFS debt securities in an unrealized loss position are evaluated for impairment at least quarterly. For AFS debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment security’s amortized cost basis is written down to fair value through net income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In conducting this assessment for debt securities in an unrealized loss position, management evaluates the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in AOCI. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of March 31, 2020, the declines in market values of our AFS debt securities were primarily attributable to changes in interest rates and volatility in the credit and financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not believe a credit loss exists and an ACL was not recorded. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities and report accrued interest receivable together with accrued interest on loans in the consolidated balance sheets. Accrued interest receivable on AFS debt securities totaled $4.5 million as of March 31, 2020. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. ACL for HTM Debt Securities Management measures expected credit losses on HTM debt securities on a collective basis by major security type. For pools of such securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources. Expected credit losses for these securities are estimated using a loss rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Expected credit loss on each security in the HTM portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. Accrued interest on HTM debt securities is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. The Company did not have any HTM debt securities as of March 31, 2020. Federal Home Loan Bank Stock We are a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). The bank is required to obtain and hold a specific number of shares of capital stock of the FHLB equal to the sum of a membership investment requirement and an activity-based investment requirement. The securities are reported at cost and are presented separately in the consolidated balance sheets. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the unpaid principal amount outstanding, net of unamortized purchase premiums and discounts, unamortized deferred loan origination fees and costs and cumulative principal charge-offs. Purchase premiums and discounts are generally amortized into interest income over the contractual terms of the underlying loans using the effective interest method. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the related loan as an adjustment to yield and are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Deferred loan fees and costs on loans paid in full are recognized as a component of interest income on loans. Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $12.4 million at March 31, 2020 and is reported together with accrued interest on AFS debt securities on the consolidated balance sheets. Accrued interest receivable on loans is excluded from the estimate of credit losses. Nonaccrual Loans The Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Loans are generally placed on nonaccrual status when interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectibility of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition and the loan is restored to accrual status. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current for a predetermined period, normally at least six months, and full payment of principal and interest is reasonably assured. Troubled Debt Restructuring (“TDR”) A loan is accounted for and reported as a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) the Company grants a concession to the borrower experiencing financial difficulty that it would not otherwise consider for a borrower or transaction with similar credit risk characteristics. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed TDRs are evaluated individually to determine the required ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan. TDRs performing in accordance with their modified contractual terms for a reasonable period of time may be included in the Company’s existing pools based on the underlying risk characteristics of the loan to measure the ACL. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 pandemic and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the CARES Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. This interagency guidance is expected to reduce the number of TDRs that will be reported in future periods, however, the amount is indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic . ACL for Loans Under the current expected credit loss methodology, the ACL for loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Our policy is to charge off a loan in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to unaccrued interest. The ACL for loans represents management's estimate of all expected credit losses over the expected contractual life of our existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information. The Company's methodologies incorporate a reasonable and supportable forecast period of one year and revert to historical loss information on straight-line basis over one year when its forecast is no longer deemed reasonable and supportable. The Company maintains an ACL at an appropriate level as of a given balance sheet date to absorb management’s best estimate of expected life of loan credit losses. Historical credit loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated. The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for losses in the loan portfolio that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration and other internal and external factors. The Company uses the Moody’s forecasting service for the economic forecast used in the ACL methodology. The Moody’s forecast includes both National and Hawaii specific economic indicators. The Moody’s forecast is widely used in the industry and is reasonable and supportable. The Moody’s forecast is updated at least monthly and includes a variety of economic scenarios. Generally the Company will use the most recent consensus forecast from Moody’s as of the balance sheet date. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision that factors in other potential economic scenarios provided by Moody’s. Had the Company used a different forecast scenario, or utilized updated forecasts released after the balance sheet date, the provision for expected credit losses could be materially different. The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes. Loan pools are further segmented by risk utilizing risk ratings or bands of payment delinquency (including TDR or non-accrual status), depending on what is most appropriate for each segment. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio. The Company relies on a third-party platform which offers multiple methodologies to measure historical life losses. The Company has also developed models internally to incorporate future economic conditions and forecast future credit losses based on various macro-economic indicators. The Company has identified the following portfolio segments to measure the allowance for credit losses: Loan Segment Historical Lifetime Historical Economic Forecast Length Reversion Method Construction Probability of Default/Loss Given Default ("PD/LGD") 2008-Present One Year One Year (straight-line basis) Commercial real estate Loss-Rate Migration 2008-Present Multi-family mortgage PD/LGD 2008-Present Commercial, financial and agricultural Loss-Rate Migration 2008-Present Home equity lines of credit Loss-Rate Migration 2008-Present Residential mortgage Loss-Rate Migration 2008-Present Consumer - other revolving Loss-Rate Migration 2008-Present Consumer - non-revolving Loss-Rate Migration 2008-Present Other consumer Loss-Rate Migration 2008-Present Purchased dealer loans Weighted-Average Remaining Maturity ("WARM") 2008-Present Purchased consumer unsecured loans Loss-Rate Migration/WARM 2008-Present Below is a description and the risk characteristics of each segment: Construction loans Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment. Commercial real estate loans Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels. Multi-family mortgage loans Multi-family mortgage loans can comprise multi-building properties with extensive amenities to a single building with no amenities. The primary risk characteristic of this segment is operating risk or the ability to generate sufficient rental cash flows from the operation of the property within the owner’s strategy and resources. Commercial, financial and agricultural loans Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. The borrower’s business is typically regarded as the principal source of repayment, though our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk. Home equity lines of credit Home equity lines of credit include fixed or floating interest rate loans and are secured by single-family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity. Residential mortgage loans Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates and other market factors impact the level of credit risk inherent in the portfolio. Consumer loans - other revolving This segment consists of consumer unsecured lines of credit. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Consumer loans - non-revolving This segment consists of consumer non-revolving loans, including dealer loans. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Purchased consumer portfolios Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of purchased consumer loans include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans. Below is a description of the methodologies mentioned above: PD/LGD The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools and then further sub-segmented by risk characteristics such as Risk Rating to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total loss rate is calculated using the formula ‘PD times LGD’. Migration Migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Migration analysis requires a portfolio segmented by risk characteristics such as risk rating to measure loss rates accurately. The key inputs to run a migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula 'net charge-offs over the period divided by beginning loan balance'. WARM Under the WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool and then applying a loss rate which includes a forecast component over this remaining life. The methodology considers historical loss experience as well as a loss forecast expectation to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses. Other If a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as discounted cash flow (“DCF”) techniques. Loans evaluated individually are not also included in the collective evaluation. Determining the Contractual Term Expected credit losses are estimated over the contractual term of the loans and are adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. If such renewal options or extensions are present, these options are evaluated in determining the contractual term. Reserve for Off-Balance Sheet Credit Exposures The Company maintains a separate and distinct reserve for off-balance-sheet credit exposures which is included in other liabilities on the Company’s consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor for letters of credit, non-revolving lines of credit, and revolving lines of credit over the remaining life during which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. Letters of credit are generally unlikely to advance since they are typically in place only to ensure various forms of performance of the borrowers. Many of the letters of credit are cash secured. Non-revolving lines of credit are determined to be likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2020 On January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology (Allowance for Loan and Leases Losses or "ALLL") with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to accounting for AFS debt securities. One such change is to require credit losses to be presented as an allowance rather than a write-down on AFS debt securities if management intends to sell or believes that it is more likely than not they will be required to sell the debt security before recovery of the amortized cost basis. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles (“GAAP”). The Company recorded a net decrease to retained earnings (or a net increase to accumulated deficit) of $3.2 million as of January 1, 2020 for the cumulative effect of adopting ASU 2016-13. The transition adjustment includes increases of $3.6 million to the ACL for loans and $0.7 million to other liabilities, which includes the reserve for off-balance sheet credit exposures, offset by a $1.1 million increase to other assets for the related impact to net deferred tax assets. The following table illustrates the impact of ASC 326: January 1, 2020 (dollars in thousands) As Reported Pre-ASC 326 Impact of Assets: Allowance for credit losses on loans: Commercial, financial & industrial $ (7,509) $ (8,136) $ 627 Real estate: Construction (2,271) (1,792) (479) Residential mortgage (13,935) (13,327) (608) Home equity (2,592) (4,206) 1,614 Commercial mortgage (13,737) (11,113) (2,624) Consumer (11,493) (9,397) (2,096) Subtotal $ (51,537) $ (47,971) $ (3,566) Net deferred tax assets (included in other assets) $ 17,692 $ 16,541 $ 1,151 Liabilities: Reserve for off-balance sheet credit exposures (included in other liabilities) $ (2,012) $ (1,272) $ (740) Equity: Accumulated deficit $ 22,257 $ 19,102 $ 3,155 In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The ASU is part of the FASB's disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles. The ASU modifies disclosure requirements on fair value measurements in Topic 820. The Company adopted ASU 2018-13 effective January 1, 2020. ASU 2018-13 did not have a material impact on disclosures in our consolidated financial statements. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the novel coronavirus pandemic ("COVID-19") and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as troubled debt restructurings (TDRs). The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. This interagency guidance is expected to reduce the number of TDR's that will be reported in future periods, however, the amount is indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic . Impact of Other Recently Issued Accounting Pronouncements on Future Filings In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." Like ASU 2018-13, this ASU is part of the FASB's disclosure framework project. This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for the Company's reporting period beginning January 1, 2021. Early adoption is permitted. Based on preliminary evaluation, the ASU will not have a material impact on disclosures in our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 3. INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses, fair value and related ACL on AFS debt securities are as follows: (dollars in thousands) Amortized Gross Gross Fair ACL March 31, 2020 Available-for-sale: Debt securities: States and political subdivisions $ 131,539 $ 2,955 $ (284) $ 134,210 $ — Corporate securities 30,116 111 — 30,227 — U.S. Treasury obligations and direct obligations of U.S Government agencies 38,244 43 (781) 37,506 — Mortgage-backed securities: Residential - U.S. Government-sponsored entities 716,398 18,861 (209) 735,050 — Commercial - U.S. Government agencies and sponsored entities 77,612 2,707 — 80,319 — Residential - Non-government agencies 34,113 608 (49) 34,672 — Commercial - Non-government agencies 131,705 1,265 (931) 132,039 — Total available-for-sale securities $ 1,159,727 $ 26,550 $ (2,254) $ 1,184,023 $ — The amortized cost, gross unrealized gains and losses and fair value of AFS debt securities are as follows: (dollars in thousands) Amortized Gross Gross Fair December 31, 2019 Available-for-sale: Debt securities: States and political subdivisions $ 119,755 $ 2,303 $ (40) $ 122,018 Corporate securities 30,277 252 — 30,529 U.S. Treasury obligations and direct obligations of U.S Government agencies 40,769 10 (398) 40,381 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 673,918 6,003 (2,099) 677,822 Commercial - U.S. Government agencies and sponsored entities 80,773 1,198 (746) 81,225 Residential - Non-government agencies 36,377 830 (16) 37,191 Commercial - Non-government agencies 134,676 3,141 — 137,817 Total available-for-sale securities $ 1,116,545 $ 13,737 $ (3,299) $ 1,126,983 The amortized cost and fair value of our equity investment securities is as follows: (dollars in thousands) Amortized Cost Fair Value March 31, 2020 Equity securities $ 961 $ 1,002 December 31, 2019 Equity securities 935 1,127 On January 1, 2019 in connection with the adoption of ASU 2017-12, the Company transferred all of its HTM investment securities with an amortized cost of $148.5 million and fair value of $144.3 million to its AFS investment securities portfolio. The amortized cost and estimated fair value of our AFS debt securities at March 31, 2020 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. March 31, 2020 (dollars in thousands) Amortized Cost Fair Value Available-for-sale: Due in one year or less $ 48,598 $ 48,784 Due after one year through five years 46,887 47,163 Due after five years through ten years 63,133 64,548 Due after ten years 41,281 41,448 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 716,398 735,050 Commercial - U.S. Government agencies and sponsored entities 77,612 80,319 Residential - Non-government agencies 34,113 34,672 Commercial - Non-government agencies 131,705 132,039 Total available-for-sale securities $ 1,159,727 $ 1,184,023 We did not sell any available-for-sale securities during the three months ended March 31, 2020 and March 31, 2019. Investment securities of $617.9 million and $719.8 million at March 31, 2020 and December 31, 2019, respectively, were pledged to secure public funds on deposit and other short-term borrowings. At March 31, 2020 and December 31, 2019, there were no holdings of investment securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity. There were a total of 50 and 81 AFS debt securities which were in an unrealized or unrecognized loss position, without an ACL, at March 31, 2020 and December 31, 2019, respectively. The following tables summarize AFS debt securities which were in an unrealized loss position at March 31, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized or unrecognized loss position. Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2020 Debt securities: States and political subdivisions $ 6,953 $ (278) $ 803 $ (6) $ 7,756 $ (284) Corporate securities — — — — — — U.S. Treasury obligations and direct obligations of U.S Government agencies 14,879 (325) 17,437 (456) 32,316 (781) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 4,764 (28) 17,967 (181) 22,731 (209) Residential - Non-government agencies 7,495 (49) — — 7,495 (49) Commercial - U.S. Government agencies and sponsored entities — — — — — — Commercial - Non-government agencies 78,904 (931) — — 78,904 (931) Total temporarily impaired securities $ 112,995 $ (1,611) $ 36,207 $ (643) $ 149,202 $ (2,254) Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Debt securities: States and political subdivisions $ 1,754 $ (9) $ 801 $ (31) $ 2,555 $ (40) Corporate securities — — — — — — U.S. Treasury obligations and direct obligations of U.S Government agencies 18,882 (143) 19,031 (255) 37,913 (398) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 54,335 (283) 214,295 (1,816) 268,630 (2,099) Residential - Non-government agencies 8,206 (16) — — 8,206 (16) Commercial - U.S. Government-sponsored entities 32,067 (746) — — 32,067 (746) Total temporarily impaired securities $ 115,244 $ (1,197) $ 234,127 $ (2,102) $ 349,371 $ (3,299) The Company has evaluated its AFS investment securities that are in an unrealized loss position and has determined that the unrealized losses on the Company's investment securities are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the credit and financial markets since purchase. Investment securities in an unrealized loss position are evaluated on at least a quarterly basis, and include evaluating the changes in the investment securities' ratings issued by rating agencies and changes in the financial condition of the issuer. For mortgage-related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company's particular position within the repayment structure, and remaining credit enhancement as compared to projected credit losses of the security are also evaluated. All of the investment securities in an unrealized loss position continue to be rated investment grade by one or more major rating agencies. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, the Company has not recorded an ACL and unrealized losses on these securities and have not been recognized into income. Visa and MasterCard Class B Common Stock As of March 31, 2020, the Company owns 34,631 shares of Class B common stock of Visa, Inc. ("Visa"). These shares were received in 2008 as part of Visa's initial public offering ("IPO"). These shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded Class A common stock. This conversion will not occur until the resolution of certain litigation, which is indemnified by Visa members. Since its IPO, Visa has funded a litigation reserve to settle these litigation claims. At its discretion, Visa may continue to increase the litigation reserve based upon a change in the conversion ratio of each member bank’s restricted Class B common stock to unrestricted Class A common stock. Due to the existing transfer restriction and the uncertainty of the outcome of the Visa litigation, the Company has determined that the Visa Class B common stock does not have a readily determinable fair value and chooses to carry the shares on the Company's consolidated balance sheets at zero cost basis. During the first quarter of 2019, the Company converted the 11,170 shares of Class B common stock of MasterCard, Inc. ("MasterCard") it received during their initial public offering to an equal number of Class A common stock and sold the shares for $2.6 million. The shares were carried on the Company's consolidated balance sheets at zero cost basis and the proceeds received were recorded as a gain in other operating income - other in the Company's consolidated statements of income. The Company no longer owns any shares of MasterCard Class B common stock. |
LOANS AND CREDIT QUALITY
LOANS AND CREDIT QUALITY | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
LOANS AND CREDIT QUALITY | 4. LOANS AND CREDIT QUALITY Loans, excluding loans held for sale, net of ACL under ASC 326 as of March 31, 2020 and loans, excluding loans held for sale, net of ACL under previous GAAP as of December 31, 2019 consisted of the following: (dollars in thousands) March 31, 2020 December 31, 2019 Commercial, financial and agricultural $ 575,169 $ 570,089 Real estate: Construction 100,959 96,139 Residential mortgage 1,628,502 1,595,801 Home equity 504,061 490,239 Commercial mortgage 1,140,611 1,124,911 Consumer 559,765 569,516 Gross loans and leases 4,509,067 4,446,695 Net deferred costs 2,931 2,845 Loans 4,511,998 4,449,540 Allowance for credit losses (59,645) (47,971) Loans, net of allowance for credit losses $ 4,452,353 $ 4,401,569 The Company did not transfer any loans to the held-for-sale category during the three months ended March 31, 2020 and 2019. The Company did not sell any loans originally held for investment during the three months ended March 31, 2020 and 2019. The Company has purchased loan portfolios, none of which were credit deteriorated since origination, at the time of purchase. The following table presents loans purchased by class for the periods presented: (dollars in thousands) Consumer - Unsecured Three Months Ended March 31, 2020 Purchases: Outstanding balance $ 22,953 Purchase premium (discount) (613) Purchase price $ 22,340 Three Months Ended March 31, 2019 Purchases: Outstanding balance $ 18,286 Purchase premium (discount) — Purchase price $ 18,286 Collateral-Dependent Loans In accordance with ASC 326, a loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of March 31, 2020: (dollars in thousands) Secured by Secured by Secured by Total Allocated Three Months Ended March 31, 2020 Commercial, financial and agricultural $ — $ — $ 667 $ 667 $ 231 Real estate: Residential mortgage 7,718 — — 7,718 — Home equity 545 — — 545 — Commercial mortgage — 512 — 512 — Total $ 8,263 $ 512 $ 667 $ 9,442 $ 231 The following table presents by class, information related to impaired loans as of December 31, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13: December 31, 2019 (dollars in thousands) Unpaid Recorded ACL Impaired loans: Commercial, financial and agricultural $ 246 $ 135 $ — Real estate: Residential mortgage 7,230 6,516 — Home equity 92 92 — Commercial mortgage 1,839 1,839 — Total 9,407 8,582 — Impaired loans with an ACL recorded: Commercial, financial and agricultural 467 467 218 Consumer 17 17 17 Total 484 484 235 Total impaired loans $ 9,891 $ 9,066 $ 235 The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13: Three Months Ended March 31, 2019 (dollars in thousands) Average Interest Commercial, financial and agricultural $ 209 $ 3 Real estate: Construction 2,233 30 Residential mortgage 9,818 106 Home equity 497 — Commercial mortgage 2,285 23 Total $ 15,042 $ 162 For the three months ended March 31, 2019, the amount of interest income recognized on impaired loans within the period that the loans were impaired were primarily related to loans modified in a troubled debt restructuring ("TDR") that were on accrual status. For the three months ended March 31, 2019, the amount of interest income recognized using a cash-based method of accounting during the period that the loans were impaired was not material. Foreclosure Proceedings The Company had $0.7 million and $0.6 million of residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure at March 31, 2020 and December 31, 2019, respectively. The Company did not foreclose on any loans during the three months ended March 31, 2020 and 2019. Nonaccrual and Past Due Loans For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following tables present by class, the aging of the recorded investment in past due loans and leases as of March 31, 2020 and December 31, 2019. The following tables also present the amortized cost of loans on onaccrual status for which there was no related ACL under ASC 326 as of March 31, 2020 and under previous GAAP as of December 31, 2019. (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total Nonaccrual March 31, 2020 Commercial, financial and agricultural $ 7,050 $ 712 $ — $ 667 $ 8,429 $ 566,895 $ 575,324 $ — Real estate: Construction 478 — — — 478 100,139 100,617 — Residential mortgage 4,371 82 1,221 2,287 7,961 1,624,575 1,632,536 2,287 Home equity 573 — — 545 1,118 503,568 504,686 545 Commercial mortgage 287 — — — 287 1,138,850 1,139,137 — Consumer 4,739 1,167 352 48 6,306 553,392 559,698 — Total $ 17,498 $ 1,961 $ 1,573 $ 3,547 $ 24,579 $ 4,487,419 $ 4,511,998 $ 2,832 (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total Nonaccrual December 31, 2019 Commercial, financial and agricultural $ 476 $ 865 $ — $ 467 $ 1,808 $ 568,496 $ 570,304 $ — Real estate: Construction 643 — — — 643 95,211 95,854 — Residential mortgage 1,830 589 724 979 4,122 1,595,679 1,599,801 979 Home equity 759 207 — 92 1,058 489,676 490,734 92 Commercial mortgage — 397 — — 397 1,123,018 1,123,415 — Consumer 3,223 943 286 17 4,469 564,963 569,432 — Total $ 6,931 $ 3,001 $ 1,010 $ 1,555 $ 12,497 $ 4,437,043 $ 4,449,540 $ 1,071 Troubled Debt Restructurings Troubled debt restructurings ("TDRs") included in nonperforming assets at March 31, 2020 consisted of one Hawaii residential mortgage loan with a principal balance of $0.3 million. There were $7.3 million of TDRs still accruing interest at March 31, 2020, none of which were more than 90 days delinquent. At December 31, 2019, there were $7.5 million of TDRs still accruing interest, none of which were more than 90 days delinquent. The Company offers various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consists of the deferral of interest and/or principal payments due to deterioration in the borrowers' financial condition. In these cases, the principal balance on the TDR had matured and/or was in default at the time of restructure, and there are no commitments to lend additional funds to the borrower. As discussed in Note 1 to these financial statements, the CARES Act provided banks an option to elect to not account for certain loan modifications related to COVID-19 as TDRs as long as the borrowers were not more than 30 days past due as of December 31, 2019. The TDRs disclosed above were not related to COVID-19 modifications. The Company executed loan deferrals on outstanding balances of approximately $65 million resulting from the COVID-19 pandemic that were not classified as a TDR at March 31, 2020. No loans were modified in a TDR during the three months ended March 31, 2020 and 2019. No loans were modified as a TDR within the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 and 2019. We had no commitments on TDRs during the three months ended March 31, 2020 and 2019. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk rating of loans. Loans not meeting the following criteria that are analyzed individually as part of the described process are considered to be pass-rated loans. Special Mention. Loans and leases classified as special mention, while still adequately protected by the borrower's capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management's close attention so as to avoid becoming undue or unwarranted credit exposures. Substandard. Loans and leases classified as substandard are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. Doubtful. Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Loss. Loans and leases classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible. The following table presents the amortized cost basis of the Company's loans by class, credit quality indicator and origination year as of March 31, 2020. Revolving loans converted to term as of and during the three months ended March 31, 2020 were not material to the total loan portfolio. Amortized Cost of Term Loans by Origination Year 2020 2019 2018 2017 2016 Prior Amortized Cost of Revolving Loans Total (dollars in thousands) March 31, 2020 Commercial, financial and agricultural Risk Rating Pass $ 40,976 $ 77,593 $ 64,288 $ 59,642 $ 50,144 $ 125,599 $ 97,073 $ 515,315 Special Mention 2,865 9,777 5,627 15,376 1,006 9,153 3,280 47,084 Substandard — 7,497 526 1,229 2,097 1,576 — 12,925 Subtotal 43,841 94,867 70,441 76,247 53,247 136,328 100,353 575,324 Construction Risk Rating Pass 7,923 12,157 50,181 6,920 2,277 21,159 — 100,617 Residential mortgage Risk Rating Pass 80,293 364,858 186,851 201,685 227,341 566,829 — 1,627,857 Special Mention — — — — 159 835 — 994 Substandard — — 550 929 302 1,904 — 3,685 Subtotal 80,293 364,858 187,401 202,614 227,802 569,568 — 1,632,536 Home equity Risk Rating Pass 4,927 21,426 22,858 493 249 3,951 450,237 504,141 Substandard — — — — 207 338 — 545 Subtotal 4,927 21,426 22,858 493 456 4,289 450,237 504,686 Commercial mortgage Risk Rating Pass 36,503 153,355 170,779 172,937 118,087 396,221 17,463 1,065,345 Special Mention — — 2,392 12,597 13,220 32,666 — 60,875 Substandard — 7,434 — — — 5,483 — 12,917 Subtotal 36,503 160,789 173,171 185,534 131,307 434,370 17,463 1,139,137 Consumer Risk Rating Pass 47,522 206,573 111,490 68,480 31,287 17,520 76,277 559,149 Special Mention — — — — — — 150 150 Substandard — 11 26 11 — 237 — 285 Loss — — — — — 114 — 114 Subtotal 47,522 206,584 111,516 68,491 31,287 17,871 76,427 559,698 Total $ 221,009 $ 860,681 $ 615,568 $ 540,299 $ 446,376 $ 1,183,585 $ 644,480 $ 4,511,998 The following table presents the Company's loans by class and credit quality indicator as of December 31, 2019: (dollars in thousands) Pass Special Substandard Loss Subtotal Net Total December 31, 2019 Commercial, financial and agricultural $ 523,342 $ 20,677 $ 26,070 $ — $ 570,089 $ 215 $ 570,304 Real estate: Construction 96,139 — — — 96,139 (285) 95,854 Residential mortgage 1,593,072 840 1,889 — 1,595,801 4,000 1,599,801 Home equity 490,147 — 92 — 490,239 495 490,734 Commercial mortgage 1,094,364 17,440 13,107 — 1,124,911 (1,496) 1,123,415 Consumer 569,212 — 193 111 569,516 (84) 569,432 Total $ 4,366,276 $ 38,957 $ 41,351 $ 111 $ 4,446,695 $ 2,845 $ 4,449,540 |
ALLOWANCE FOR CREDIT LOSSES AND
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE | 3 Months Ended |
Mar. 31, 2020 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | |
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE | 5. ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES The following table presents by class, the activity in the ACL for loans under ASC 326 during the three months ended March 31, 2020 and under previous GAAP during the three months ended March 31, 2019: Real Estate (dollars in thousands) Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Total Three Months Ended March 31, 2020 Beginning balance prior to ASC 326 $ 8,136 $ 1,792 $ 13,327 $ 4,206 $ 11,113 $ 9,397 $ 47,971 Impact of adoption of ASC 326 (627) 479 608 (1,614) 2,624 2,096 3,566 Balance after adoption of ASC 326 7,509 2,271 13,935 2,592 13,737 11,493 51,537 Provision for credit losses 1,231 655 (935) (314) 5,779 2,913 9,329 Charge-offs 437 — — — — 2,217 2,654 Recoveries 342 131 181 31 2 746 1,433 Net charge-offs (recoveries) 95 (131) (181) (31) (2) 1,471 1,221 Ending balance $ 8,645 $ 3,057 $ 13,181 $ 2,309 $ 19,518 $ 12,935 $ 59,645 Three Months Ended March 31, 2019 Beginning balance $ 8,027 $ 1,202 $ 14,349 $ 3,788 $ 13,358 $ 7,192 $ 47,916 Provision for credit losses 50 91 (1,520) 481 (1,322) 3,503 1,283 8,077 1,293 12,829 4,269 12,036 10,695 49,199 Charge-offs 463 — — — — 2,251 2,714 Recoveries 233 6 22 9 — 512 782 Net charge-offs (recoveries) 230 (6) (22) (9) — 1,739 1,932 Ending balance $ 7,847 $ 1,299 $ 12,851 $ 4,278 $ 12,036 $ 8,956 $ 47,267 The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, under ASC 326 during the three months ended March 31, 2020 and under previous GAAP during the three months ended March 31, 2019. Three Months Ended March 31, 2020 Beginning balance prior to ASC 326 $ 1,272 Impact of adoption of ASC 326 740 Balance after adoption of ASC 326 2,012 Provision for off-balance sheet credit exposures 1,798 Ending Balance $ 3,810 Three Months Ended March 31, 2019 Beginning balance $ 1,242 Provision for off-balance sheet credit exposures 167 Ending balance $ 1,409 In accordance with GAAP, other real estate assets are not included in our assessment of the ACL. Our provision for credit losses on loans was $9.3 million in the three months ended March 31, 2020 under ASC 326, compared to $1.3 million in the three months ended March 31, 2019 under previous GAAP. |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 3 Months Ended |
Mar. 31, 2020 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 6. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES The components of the Company's investments in unconsolidated subsidiaries were as follows: (dollars in thousands) March 31, 2020 December 31, 2019 Investments in low income housing tax credit partnerships $ 14,974 $ 15,322 Investments in common securities of statutory trusts 1,547 1,547 Investments in affiliates 146 192 Other 54 54 Total $ 16,721 $ 17,115 The Company invests in low-income housing tax credit ("LIHTC") partnerships. As of March 31, 2020 and December 31, 2019, the Company had $11.0 million and $11.5 million, respectively, in unfunded commitments related to the LIHTC partnerships. The expected payments for the unfunded commitments as of March 31, 2020 for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2020 (remainder) $ 6,452 2021 1,494 2022 3,010 2023 10 2024 26 2025 6 Thereafter 42 Total unfunded commitments $ 11,040 Prior to 2018, the Company's investments in LIHTC partnerships were accounted for using the cost method. In 2018, the Company voluntarily changed its accounting policy for LIHTC partnerships from the cost method to the proportional amortization method using the practical expedient available under ASC 323, "Investments - Equity Method and Joint Ventures" , which permits an investor to amortize the initial cost of the investment in proportion to only the tax credits allocated to the investor. The Company believes the proportional amortization method is preferable because it better reflects the economics of an investment that is made for the primary purpose of receiving tax credits and other tax benefits. In addition to a change in the timing of the recognition of amortization expense on LIHTC investments, amortization expense on LIHTC investments is now reflected in the income tax expense line, which provides users a better understanding of the nature of the returns of such investments, instead of in other operating expenses on the consolidated statements of income. The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three months ended March 31, 2020 and March 31, 2019: (dollars in thousands) Three Months Ended Three Months Ended Proportional amortization method: Amortization expense recognized in income tax expense $ 348 $ 258 Tax credits recognized in income tax expense 400 277 |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 3 Months Ended |
Mar. 31, 2020 | |
OTHER INTANGIBLE ASSETS | |
MORTGAGE SERVICING RIGHTS | 7. MORTGAGE SERVICING RIGHTS The following table presents changes in mortgage servicing rights for the periods presented: (dollars in thousands) Mortgage Balance, January 1, 2019 $ 15,596 Additions 222 Amortization (471) Balance, March 31, 2019 $ 15,347 Balance, January 1, 2020 $ 14,718 Additions 174 Amortization (1,547) Balance, March 31, 2020 $ 13,345 Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $0.2 million for the three months ended March 31, 2020 compared to $0.2 million for the three months ended March 31, 2019. Amortization of mortgage servicing rights totaled $1.5 million for the three months ended March 31, 2020 compared to $0.5 million for the three months ended March 31, 2019. The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: Three Months Ended Three Months Ended (dollars in thousands) March 31, 2020 March 31, 2019 Fair market value, beginning of period $ 15,820 $ 17,696 Fair market value, end of period 13,525 16,541 Weighted average discount rate 9.5 % 9.5 % Forecasted constant prepayment rate assumption (1) 16.1 % 16.2 % (1) Represents annualized average life loan prepayment rate assumption. The gross carrying value and accumulated amortization related to our mortgage servicing rights are presented below: March 31, 2020 December 31, 2019 (dollars in thousands) Gross Accumulated Net Gross Accumulated Net Mortgage servicing rights $ 67,769 $ (54,424) $ 13,345 $ 67,595 $ (52,877) $ 14,718 Based on the mortgage servicing rights held as of March 31, 2020, estimated amortization expense for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2020 (remainder) $ 4,400 2021 4,764 2022 3,856 2023 325 2024 — 2025 — Thereafter — Total $ 13,345 |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 8. DERIVATIVES We utilize various designated and undesignated derivative financial instruments to reduce our exposure to movements in interest rates including interest rate lock commitments and forward sale commitments. We measure all derivatives at fair value on our consolidated balance sheet. In each reporting period, we record the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as cash flow hedging instruments, we record the effective portion of the changes in the fair value of the derivative in AOCI, net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. We immediately recognize the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings. At March 31, 2020 and December 31, 2019, we were not party to any derivatives designated as part of a fair value or cash flow hedge. Interest Rate Lock and Forward Sale Commitments We enter into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, we also enter into forward loan sale commitments. The interest rate locks and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets or other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce our exposure to movements in interest rates. At March 31, 2020, we were a party to interest rate lock and forward sale commitments on $4.2 million and $8.1 million of mortgage loans, respectively. The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets: Derivatives Financial Instruments Not Designated as Hedging Instruments Asset Derivatives Liability Derivatives Fair Value at Fair Value at (dollars in thousands) Balance Sheet Location March 31, December 31, March 31, December 31, Interest rate lock and forward sale commitments Other assets / other liabilities $ 115 $ 8 $ 37 $ 28 Risk Participation Agreement In the first quarter of 2020, the Company entered into a credit risk participation agreement ("RPA") with a financial institution counterparty for an interest rate swap related to a loan which we were a participant in. The risk participation agreement entered into by us as a participant bank provides credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. The fair value of the exposure related to the RPA was not material to the consolidated financial statements at March 31, 2020. The following table presents the impact of derivative instruments and their location within the consolidated statements of income: Derivatives Financial Instruments Location of Gain (Loss) Amount of Gain (Loss) (dollars in thousands) Three Months Ended March 31, 2020 Interest rate lock and forward sale commitments Mortgage banking income $ 99 Risk participation agreement Other service charges and fees 1,288 Three Months Ended March 31, 2019 Interest rate lock and forward sale commitments Mortgage banking income 39 |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 9. SHORT-TERM BORROWINGS AND LONG-TERM DEBT Federal Home Loan Bank Advances and Other Borrowings The bank is a member of the Federal Home Loan Bank of Des Moines (the "FHLB") and maintained a $1.87 billion line of credit as of March 31, 2020, compared to $1.84 billion at December 31, 2019. At March 31, 2020, $1.41 billion was undrawn under this arrangement, compared to $1.57 billion at December 31, 2019. Short-term borrowings under this arrangement totaled $222.0 million at March 31, 2020, compared to $150.0 million at December 31, 2019. Letters of credit under this arrangement that are used to collateralize certain government deposits totaled $187.4 million at March 31, 2020, compared to $78.9 million at December 31, 2019. Long-term borrowings under this arrangement totaled $50.0 million at March 31, 2020 and December 31, 2019. FHLB advances and standby letters of credit available at March 31, 2020 were secured by certain real estate loans with a carrying value of $2.51 billion in accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB. At March 31, 2020 and December 31, 2019, our bank had additional unused borrowings available at the Federal Reserve discount window of $60.3 million and $65.3 million, respectively. As of March 31, 2020 and December 31, 2019, certain commercial and commercial real estate loans with a carrying value totaling $125.2 million and $126.1 million, respectively, were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans. Subordinated Debentures In October 2003, we created two wholly-owned statutory trusts, CPB Capital Trust II ("Trust II") and CPB Statutory Trust III ("Trust III"). Trust II issued $20.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 2.85% and maturing on October 7, 2033. The principal assets of Trust II were $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust II trust preferred securities. Trust II issued $0.6 million of common securities to the Company. On January 7, 2019, the Company completed the redemption of $20.0 million in floating rate trust preferred securities of Trust II. The redemption price was 100% of the aggregate liquidation amount of the securities plus accumulated but unpaid distributions up to but not including the redemption date. The Company also redeemed $0.6 million of common securities issued by Trust II and held by the Company, as a result of the concurrent redemption of 100% of the principal assets of Trust II, or $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust II trust preferred securities. The redemption was pursuant to the optional prepayment provisions of the indenture. On January 22, 2019, Trust II was canceled with the state of Delaware. Trust III issued $20.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 2.85% and maturing on December 17, 2033. The principal assets of Trust III were $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust III trust preferred securities. Trust III issued $0.6 million of common securities to the Company. On December 17, 2018, the Company completed the redemption of $20.0 million in floating rate trust preferred securities of Trust III. The redemption price was 100% of the aggregate liquidation amount of the securities plus accumulated but unpaid distributions up to but not including the redemption date. The Company also redeemed $0.6 million of common securities issued by Trust III and held by the Company, as a result of the concurrent redemption of 100% of the principal assets of Trust III, or $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust III trust preferred securities. The redemption was pursuant to the optional prepayment provisions of the indenture. On January 9, 2019, Trust III was canceled with the state of Connecticut. In September 2004, we created a wholly-owned statutory trust, CPB Capital Trust IV ("Trust IV"). Trust IV issued $30.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 2.45% and maturing on December 15, 2034. The principal assets of Trust IV are $30.9 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust IV trust preferred securities. Trust IV issued $0.9 million of common securities to the Company. In December 2004, we created a wholly-owned statutory trust, CPB Statutory Trust V ("Trust V"). Trust V issued $20.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 1.87% and maturing on December 15, 2034. The principal assets of Trust V are $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust V trust preferred securities. Trust V issued $0.6 million of common securities to the Company. At March 31, 2020 and December 31, 2019, the Company had the following junior subordinated debentures outstanding, which is recorded in long-term debt on the Company's consolidated balance sheets: (dollars in thousands) March 31, 2020 Name of Trust Subordinated Debentures Interest Rate Trust IV $ 30,928 Three month LIBOR + 2.45% Trust V 20,619 Three month LIBOR + 1.87% Total $ 51,547 December 31, 2019 Name of Trust Subordinated Debentures Interest Rate Trust IV 30,928 Three month LIBOR + 2.45% Trust V 20,619 Three month LIBOR + 1.87% Total $ 51,547 The floating trust preferred securities, the junior subordinated debentures that are the assets of Trusts IV and V and the common securities issued by Trusts IV and V are redeemable in whole or in part on any interest payment date on or after December 15, 2009 for Trust IV and V, or at any time in whole but not in part within 90 days following the occurrence of certain events. Our obligations with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of each trust's obligations with respect to its trust preferred securities. Subject to certain exceptions and limitations, we may elect from time to time to defer interest payments on the subordinated debentures, which would result in a deferral of distribution payments on the related trust preferred securities, for up to 20 consecutive quarterly periods without default or penalty. The subordinated debentures may be included in Tier 1 capital, with certain limitations applicable, under current regulatory guidelines and interpretations. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 10. REVENUE FROM CONTRACTS WITH CUSTOMERS The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three months ended March 31, 2020 and 2019. Three Months Ended (dollars in thousands) 2020 2019 Other operating income: In-scope of ASC 606 Mortgage banking income $ 229 $ 149 Service charges on deposit accounts 2,050 2,081 Other service charges and fees 2,996 2,594 Income on fiduciary activities 1,297 965 In-scope other operating income 6,572 5,789 Out-of-scope other operating income 2,314 5,884 Total other operating income $ 8,886 $ 11,673 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Restricted Stock Units The table below presents the activity of restricted stock units for the three months ended March 31, 2020: Shares Weighted Average Grant Date Fair Value Non-vested restricted stock units, beginning of period 366,467 $ 28.89 Changes during the period: Granted 78,697 28.10 Vested (46,050) 30.43 Forfeited (5,813) 29.55 Non-vested restricted stock units, end of period 393,301 28.54 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | 12. LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases" . Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability. Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended (dollars in thousands) 2020 2019 Lease cost: Operating lease cost $ 1,653 $ 1,628 Variable lease cost 678 647 Less: sublease income (12) (11) Total lease cost $ 2,319 2,264 Other information: Operating cash flows from operating leases $ (1,594) $ (1,549) Weighted-average remaining lease term - operating leases 13.36 years 14.10 years Weighted-average discount rate - operating leases 3.92 % 3.92 % The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter (dollars in thousands): Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2020 (remainder) $ 4,622 $ 1,462 $ 3,160 2021 5,907 1,808 4,099 2022 5,472 1,659 3,813 2023 5,175 1,519 3,656 2024 4,947 1,385 3,562 2025 4,634 1,247 3,387 Thereafter 36,285 6,421 29,864 Total $ 67,042 $ 15,501 $ 51,541 In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended (dollars in thousands) 2020 2019 Total rental income recognized $ 533 535 Based on the Company's leases as lessor as of March 31, 2020, estimated lease payments for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2020 (remainder) $ 1,710 2021 2,263 2022 1,657 2023 644 2024 155 2025 72 Thereafter 190 Total $ 6,691 |
LEASES | 12. LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases" . Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability. Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended (dollars in thousands) 2020 2019 Lease cost: Operating lease cost $ 1,653 $ 1,628 Variable lease cost 678 647 Less: sublease income (12) (11) Total lease cost $ 2,319 2,264 Other information: Operating cash flows from operating leases $ (1,594) $ (1,549) Weighted-average remaining lease term - operating leases 13.36 years 14.10 years Weighted-average discount rate - operating leases 3.92 % 3.92 % The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter (dollars in thousands): Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2020 (remainder) $ 4,622 $ 1,462 $ 3,160 2021 5,907 1,808 4,099 2022 5,472 1,659 3,813 2023 5,175 1,519 3,656 2024 4,947 1,385 3,562 2025 4,634 1,247 3,387 Thereafter 36,285 6,421 29,864 Total $ 67,042 $ 15,501 $ 51,541 In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended (dollars in thousands) 2020 2019 Total rental income recognized $ 533 535 Based on the Company's leases as lessor as of March 31, 2020, estimated lease payments for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2020 (remainder) $ 1,710 2021 2,263 2022 1,657 2023 644 2024 155 2025 72 Thereafter 190 Total $ 6,691 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the components of other comprehensive income for the three months ended March 31, 2020 and 2019, by component: (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2020 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 13,858 $ 3,711 $ 10,147 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 13,858 3,711 10,147 Defined benefit plans: Net actuarial gains arising during the period 427 114 313 Amortization of net actuarial loss 268 72 196 Amortization of net transition obligation 5 1 4 Amortization of prior service cost 4 1 3 Defined benefit plans, net 704 188 516 Other comprehensive income $ 14,562 $ 3,899 $ 10,663 (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2019 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 15,024 $ 4,028 $ 10,996 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 15,024 4,028 10,996 Defined benefit plans: Amortization of net actuarial loss 263 29 234 Amortization of net transition obligation 5 1 4 Amortization of prior service cost 5 1 4 Defined benefit plans, net 273 31 242 Other comprehensive income $ 15,297 $ 4,059 $ 11,238 The following tables present the changes in each component of AOCI, net of tax, for the three months ended March 31, 2020 and 2019: (dollars in thousands) Investment Defined AOCI Three Months Ended March 31, 2020 Balance at beginning of period 14,825 (6,416) 8,409 Other comprehensive income before reclassifications 10,147 313 10,460 Reclassification adjustments from AOCI — 203 203 Total other comprehensive income 10,147 516 10,663 Balance at end of period $ 24,972 $ (5,900) $ 19,072 (dollars in thousands) Investment Defined AOCI Three Months Ended March 31, 2019 Balance at beginning of period $ (9,643) $ (6,450) $ (16,093) Impact of the adoption of new accounting standards (3,100) — (3,100) Adjusted balance at beginning of period (12,743) (6,450) (19,193) Other comprehensive loss before reclassifications 10,996 — 10,996 Reclassification adjustments from AOCI — 242 242 Total other comprehensive income 10,996 242 11,238 Balance at end of period $ (1,747) $ (6,208) $ (7,955) The following table presents the amounts reclassified out of each component of AOCI for the three months ended March 31, 2020 and 2019: Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Three months ended March 31, (dollars in thousands) 2020 2019 Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (268) $ (263) Salaries and employee benefits Amortization of net transition obligation (5) (5) Salaries and employee benefits Amortization of prior service cost (4) (5) Salaries and employee benefits Total before tax (277) (273) Tax effect 74 31 Income tax benefit (expense) Net of tax $ (203) $ (242) Total reclassification adjustments from AOCI for the period, net of tax $ (203) $ (242) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 14. EARNINGS PER SHARE The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated: Three Months Ended (dollars in thousands, except per share data) 2020 2019 Net income $ 8,326 $ 16,037 Weighted average common shares outstanding - basic 28,126,400 28,758,310 Dilutive effect of employee stock options and awards 151,353 221,545 Weighted average common shares outstanding - diluted 28,277,753 28,979,855 Basic earnings per common share $ 0.30 $ 0.56 Diluted earnings per common share $ 0.29 $ 0.55 Anti-dilutive employee stock options and awards outstanding — — |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 15. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Disclosures about Fair Value of Financial Instruments Fair value estimates, methods and assumptions are set forth below for our financial instruments. Short-Term Financial Instruments The carrying values of short-term financial instruments are deemed to approximate fair values. Such instruments are considered readily convertible to cash and include cash and due from financial institutions, interest-bearing deposits in other financial institutions, accrued interest receivable, the majority of Federal Home Loan Bank advances and other short-term borrowings, and accrued interest payable. Investment Securities The fair value of investment securities is based on market price quotations received from third-party pricing services. The third-party pricing services utilize pricing models supported with timely market data information. Where quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Loans Fair values of loans are estimated based on discounted cash flows of portfolios of loans with similar financial characteristics including the type of loan, interest terms and repayment history. Fair values are calculated by discounting scheduled cash flows through estimated maturities using estimated market discount rates. Estimated market discount rates are reflective of credit and interest rate risks inherent in the Company's various loan types and are derived from available market information, as well as specific borrower information. As of March 31, 2020, the weighted average discount rate used in the valuation of loans was 4.63%. In accordance with ASU 2016-01, the fair value of loans are measured based on the notion of exit price. Loans Held for Sale The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. We report the fair values of Hawaii and U.S. Mainland construction and commercial real estate loans, if any, net of applicable selling costs on our consolidated balance sheets. Deposit Liabilities The fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand and savings accounts, are equal to the amount payable on demand. The fair value of time deposits is estimated using discounted cash flow analyses. As of March 31, 2020, the weighted average discount rate used in the valuation of time deposits was 0.52%. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Long-Term Debt The fair value of our long-term debt is estimated by discounting scheduled cash flows over the contractual borrowing period at the estimated market rate for similar borrowing arrangements. Derivatives The fair values of derivative financial instruments are based upon current market values, if available. If there are no relevant comparables, fair values are based on pricing models using current assumptions for interest rate swaps and options. Off-Balance Sheet Financial Instruments The fair values of off-balance sheet financial instruments are estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties, current settlement values or quoted market prices of comparable instruments. Limitations Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of future business and the value of assets and liabilities that are not considered financial instruments. For example, significant assets and liabilities that are not considered financial assets or liabilities include deferred tax assets, premises and equipment and intangible assets. Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices Significant Significant March 31, 2020 Financial assets: Cash and due from banks $ 81,972 $ 81,972 $ 81,972 $ — $ — Interest-bearing deposits in other banks 11,021 11,021 11,021 — — Investment securities 1,185,025 1,185,025 1,002 1,172,451 11,572 Loans held for sale 3,910 3,910 — 3,910 — Net loans and leases 4,452,353 4,204,383 — — 4,204,383 Accrued interest receivable (included in other assets) 16,851 16,851 16,851 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,430,540 1,430,540 1,430,540 — — Interest-bearing demand and savings and money market 2,711,788 2,711,788 2,711,788 — — Time 993,741 996,284 — — 996,284 Short-term borrowings 222,000 222,000 — 222,000 — Long-term debt 101,547 91,032 — 91,032 — Accrued interest payable (included in other liabilities) 4,132 4,132 4,132 — — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices Significant Significant March 31, 2020 Derivatives: Interest rate lock commitments $ 4,237 $ 115 $ 115 $ — $ 115 $ — Forward sale commitments 8,118 (37) (37) — (37) — Off-balance sheet financial instruments: Commitments to extend credit 1,186,476 1,414 1,414 — 1,414 — Standby letters of credit and financial guarantees written 9,424 141 141 — 141 — Risk participation agreement 28,800 32 32 — — 32 Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices Significant Significant December 31, 2019 Financial assets: Cash and due from banks $ 78,418 $ 78,418 $ 78,418 $ — $ — Interest-bearing deposits in other banks 24,554 24,554 24,554 — — Investment securities 1,128,110 1,128,110 1,127 1,115,728 11,255 Loans held for sale 9,083 9,083 — 9,083 — Net loans and leases 4,401,569 4,392,477 — — 4,392,477 Accrued interest receivable (included in other assets) 16,500 16,500 16,500 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,450,532 1,450,532 1,450,532 — — Interest-bearing demand and savings and money market 2,643,038 2,643,038 2,643,038 — — Time 1,026,453 1,023,362 — — 1,023,362 Short-term borrowings 150,000 150,000 — 150,000 — Long-term debt 101,547 97,827 — 97,827 — Accrued interest payable (included in other liabilities) 4,288 4,288 4,288 — — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices Significant Significant December 31, 2019 Derivatives: Interest rate lock commitments $ 625 $ 8 $ 8 $ — $ 8 $ — Forward sale commitments 8,968 (28) (28) — (28) — Off-balance sheet financial instruments: Commitments to extend credit 1,089,135 1,230 1,230 — 1,230 — Standby letters of credit and financial guarantees written 10,526 158 158 — 158 — Fair Value Measurements We group our financial assets and liabilities at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: • Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that requires the use of significant judgment or estimation. We base our fair values on the price that we would expect to receive if an asset were sold, or the price that we would expect to pay to transfer a liability in an orderly transaction between market participants at the measurement date. We also maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. We use fair value measurements to record adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available-for-sale and equity securities and derivatives are recorded at fair value on a recurring basis. From time to time, we may be required to record other financial assets at fair value on a nonrecurring basis such as loans held for sale, impaired loans, mortgage servicing rights, and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. There were no transfers of financial assets and liabilities into or out of Level 3 of the fair value hierarchy during the three months ended March 31, 2020. The following tables present the fair value of assets and liabilities measured on a recurring basis as of March 31, 2020 and December 31, 2019: Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Prices Significant Significant March 31, 2020 Available-for-sale securities: Debt securities: States and political subdivisions $ 134,210 $ — $ 122,638 $ 11,572 Corporate securities 30,227 — 30,227 — U.S. Treasury obligations and direct obligations of U.S Government agencies 37,506 — 37,506 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 735,050 — 735,050 — Commercial - U.S. Government agencies and sponsored entities 80,319 — 80,319 — Residential - Non-government agencies 34,672 — 34,672 — Commercial - Non-government agencies 132,039 — 132,039 — Total available-for-sale securities 1,184,023 — 1,172,451 11,572 Equity securities 1,002 1,002 — — Derivatives: Interest rate lock and forward sale commitments 78 — 78 — Total $ 1,185,103 $ 1,002 $ 1,172,529 $ 11,572 Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Prices Significant Significant December 31, 2019 Available-for-sale securities: Debt securities: States and political subdivisions $ 122,018 $ — $ 110,763 $ 11,255 Corporate securities 30,529 — 30,529 — U.S. Treasury obligations and direct obligations of U.S Government agencies 40,381 — 40,381 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 677,822 — 677,822 — Commercial - U.S. Government agencies and sponsored entities 81,225 — 81,225 — Residential - Non-government agencies 37,191 — 37,191 — Commercial - Non-government agencies 137,817 — 137,817 — Total available-for-sale securities 1,126,983 — 1,115,728 11,255 Equity securities 1,127 1,127 — — Derivatives: Interest rate lock and forward sale commitments (20) — (20) — Total $ 1,128,090 $ 1,127 $ 1,115,708 $ 11,255 For the three months ended March 31, 2020 and 2019, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: (dollars in thousands) Available-For-Sale Balance at December 31, 2019 $ 11,255 Principal payments received (109) Unrealized net gain included in other comprehensive income 426 Balance at March 31, 2020 $ 11,572 Balance at December 31, 2018 $ 11,169 Principal payments received (105) Unrealized net loss included in other comprehensive income 200 Balance at March 31, 2019 $ 11,264 Within the states and political subdivisions available-for-sale debt securities category, the Company holds four mortgage revenue bonds issued by the City & County of Honolulu with an aggregate fair value of $11.6 million and $11.3 million at March 31, 2020 and March 31, 2019, respectively. The Company estimates the fair value of its mortgage revenue bonds by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The significant unobservable input used in the fair value measurement of the Company's mortgage revenue bonds is the weighted average discount rate. As of March 31, 2020, the weighted average discount rate utilized was 3.25% compared to 4.71% at March 31, 2019 and 4.08% at December 31, 2019, which was derived by incorporating a credit spread over the FHLB Fixed-Rate Advance curve. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. The following table presents the fair value of assets measured on a nonrecurring basis and the level of valuation assumptions used to determine the respective fair values as of March 31, 2020 and December 31, 2019: Fair Value Measurements Using (dollars in thousands) Fair Value Quoted Prices Significant Significant March 31, 2020 Other real estate (1) $ 100 $ — $ 100 $ — December 31, 2019 Other real estate (1) $ 164 $ — $ 164 $ — (1) Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 3 Months Ended |
Mar. 31, 2020 | |
Legal Proceedings [Abstract] | |
LEGAL PROCEEDINGS | 16. LEGAL PROCEEDINGS We are involved in legal actions arising in the ordinary course of business. Management, after consultation with our legal counsel, believes the ultimate disposition of those matters will not have a material adverse effect on our consolidated financial statements. |
SUBSEQUENT EVENTS SUBSEQUENT EV
SUBSEQUENT EVENTS SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security ("CARES") Act was signed into law. It contains substantial tax and spending provisions intended to address the impact of the COVID-19 pandemic. The CARES Act included an allocation of $349 billion for loans to be issued by financial institutions through the Small Business Administration (“SBA”). This program is known as the Paycheck Protection Program (“PPP”). PPP loans are forgivable, in whole or in part, if the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and a term of two years, if not forgiven, in whole or in part. Payments are deferred for the first six months of the loan. The loans are 100% guaranteed by the SBA. The SBA pays the originating bank a processing fee ranging from 1% to 5%, based on the size of the loan. From April 3, 2020, the date the SBA began accepting submissions for the initial round of PPP loans through April 16, 2020, the date the SBA reached the limit of funds available to disburse under the initial round of the program, the Company received approval from the SBA on over 4,100 loans totaling approximately $475 million. As the initial $349 billion allotted for PPP loans ran out in less than two weeks, an additional $310 billion was added to the program. From April 27, 2020, the date the SBA began accepting submissions for the second round of PPP loans through April 30, 2020, the Company received approval from the SBA on over 1,500 loans totaling approximately $66 million. Certain PPP loans approved by the SBA may be cancelled or withdrawn prior to closing and funding. Although the Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program, there could be risks and liability to the Company associated with participation in the program that cannot be determined at this time . In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by COVID-19 and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the CARES Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. In response to the COVID-19 pandemic, the Company is providing 3-month principal and interest payment deferrals for its residential mortgage and consumer customers. The Company is also deferring either the full loan payment or the principal component of the loan payment for 3 to 6 months for its commercial real estate and commercial and industrial customers on a case-by-case basis depending on need. The Company executed loan deferrals on outstanding balances of approximately $65 million through March 31, 2020. As of April 30, 2020, the Company executed loan deferrals on outstanding balances of approximately $453 million, which includes the loans deferred during the first quarter of 2020, and is approximately 10% of the Company’s total loan portfolio. In accordance with the revised interagency guidance issued in April 2020, these short-term deferrals are not presently considered TDRs and at this time interest has continued to accrue. Collectibility of the accrued interest on deferred loans is uncertain and the Company may need to reverse the accrued interest which may negatively impact interest income in future periods. Additional loan modifications to capitalize interest and/or extend loan terms may also be necessary. The Company anticipates increased requests for loan deferrals in the second quarter of 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us" or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2019. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In January 2020, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment has been consolidated into our financial statements. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. Our investments in unconsolidated subsidiaries accounted for under the equity, proportional amortization and cost methods were $0.1 million, $15.0 million and $1.6 million, respectively, at March 31, 2020 and $0.2 million, $15.3 million and $1.6 million, respectively, at December 31, 2019. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements. |
Reclassification, Policy [Policy Text Block] | Reclassifications In the first quarter of 2020, the Company reassessed the alignment of its reportable segments and combined its three reportable segments (Banking Operations, Treasury and All Others segments) into a single operating segment. We believe this change better reflects how the Company's Executive Committee, or its chief operating decision maker ("CODM"), manages, allocates resources and assesses performance of the activities of the Company. The Company also believes that this change is better aligned with how the Company's CODM manages its business. Segment results for 2019 have been reclassified to reflect the realignment of the Company’s reportable segments and be comparable to the segment results for 2020. This change in reportable segments did not have an impact on the Company's previously reported historical consolidated financial statements. Investment Securities Investments in debt securities are designated as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). Investments in debt securities are designated as HTM only if we have the positive intent and ability to hold these securities to maturity. HTM securities are reported at amortized cost in the consolidated balance sheets. Trading securities are reported at fair value, with changes in fair value included in net income. Debt securities not classified as HTM or trading are classified as AFS and are reported at fair value, with net unrealized gains and losses, net of applicable taxes, excluded from net income and included in accumulated other comprehensive income (loss) ("AOCI"). Equity securities with readily determinable fair values are carried at fair value, with changes in fair value included in net income. Equity securities without readily determinable fair values are carried 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. The Company classifies its investment securities portfolio into the following major security types: mortgage-backed securities ("MBS"), other debt securities and equity securities. The Company’s MBS portfolio is comprised primarily of residential MBS issued by United States of America ("U.S.") government entities and agencies. These securities are either explicitly or implicitly guaranteed by an agency of the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The remainder of the MBS portfolio are commercial MBS issued by U.S government entities and agencies (which there is no minimum credit rating), non-agency residential MBS (which shall meet a minimum credit rating of AAA) and non-agency commercial MBS (which shall meet a minimum credit rating of BBB and meet minimum internal credit guidelines). The Company’s other debt securities portfolio is comprised of obligations issued by U.S. government entities and agencies, obligations issued by states and political subdivisions (which shall meet a minimum credit rating of BBB), and corporate bonds (which shall meet a minimum credit rating of BBB-). Interest income on investment securities includes amortization of premiums and accretion of discounts. We amortize premiums to the earliest call date. We accrete discounts associated with investment securities using the effective interest method over the life of the respective security instrument. Gains and losses on the sale of investment securities are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual status is reversed against current period interest income. There were no investment securities on nonaccrual status as of March 31, 2020 and the Company did not reverse any accrued interest against interest income during the three months ended March 31, 2020. Allowance for Credit Losses (“ACL”) for AFS Debt Securities AFS debt securities in an unrealized loss position are evaluated for impairment at least quarterly. For AFS debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment security’s amortized cost basis is written down to fair value through net income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In conducting this assessment for debt securities in an unrealized loss position, management evaluates the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in AOCI. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of March 31, 2020, the declines in market values of our AFS debt securities were primarily attributable to changes in interest rates and volatility in the credit and financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not believe a credit loss exists and an ACL was not recorded. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities and report accrued interest receivable together with accrued interest on loans in the consolidated balance sheets. Accrued interest receivable on AFS debt securities totaled $4.5 million as of March 31, 2020. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. ACL for HTM Debt Securities Management measures expected credit losses on HTM debt securities on a collective basis by major security type. For pools of such securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources. Expected credit losses for these securities are estimated using a loss rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Expected credit loss on each security in the HTM portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. Accrued interest on HTM debt securities is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. The Company did not have any HTM debt securities as of March 31, 2020. Federal Home Loan Bank Stock We are a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). The bank is required to obtain and hold a specific number of shares of capital stock of the FHLB equal to the sum of a membership investment requirement and an activity-based investment requirement. The securities are reported at cost and are presented separately in the consolidated balance sheets. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the unpaid principal amount outstanding, net of unamortized purchase premiums and discounts, unamortized deferred loan origination fees and costs and cumulative principal charge-offs. Purchase premiums and discounts are generally amortized into interest income over the contractual terms of the underlying loans using the effective interest method. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the related loan as an adjustment to yield and are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Deferred loan fees and costs on loans paid in full are recognized as a component of interest income on loans. Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $12.4 million at March 31, 2020 and is reported together with accrued interest on AFS debt securities on the consolidated balance sheets. Accrued interest receivable on loans is excluded from the estimate of credit losses. Nonaccrual Loans The Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Loans are generally placed on nonaccrual status when interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectibility of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition and the loan is restored to accrual status. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current for a predetermined period, normally at least six months, and full payment of principal and interest is reasonably assured. Troubled Debt Restructuring (“TDR”) A loan is accounted for and reported as a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) the Company grants a concession to the borrower experiencing financial difficulty that it would not otherwise consider for a borrower or transaction with similar credit risk characteristics. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. However, if the TDR loan has been modified in a subsequent restructure with market terms and the borrower is not currently experiencing financial difficulty, then the loan may be de-designated as a TDR. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed TDRs are evaluated individually to determine the required ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan. TDRs performing in accordance with their modified contractual terms for a reasonable period of time may be included in the Company’s existing pools based on the underlying risk characteristics of the loan to measure the ACL. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 pandemic and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the CARES Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. This interagency guidance is expected to reduce the number of TDRs that will be reported in future periods, however, the amount is indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic . ACL for Loans Under the current expected credit loss methodology, the ACL for loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Our policy is to charge off a loan in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to unaccrued interest. The ACL for loans represents management's estimate of all expected credit losses over the expected contractual life of our existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information. The Company's methodologies incorporate a reasonable and supportable forecast period of one year and revert to historical loss information on straight-line basis over one year when its forecast is no longer deemed reasonable and supportable. The Company maintains an ACL at an appropriate level as of a given balance sheet date to absorb management’s best estimate of expected life of loan credit losses. Historical credit loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated. The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for losses in the loan portfolio that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration and other internal and external factors. The Company uses the Moody’s forecasting service for the economic forecast used in the ACL methodology. The Moody’s forecast includes both National and Hawaii specific economic indicators. The Moody’s forecast is widely used in the industry and is reasonable and supportable. The Moody’s forecast is updated at least monthly and includes a variety of economic scenarios. Generally the Company will use the most recent consensus forecast from Moody’s as of the balance sheet date. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision that factors in other potential economic scenarios provided by Moody’s. Had the Company used a different forecast scenario, or utilized updated forecasts released after the balance sheet date, the provision for expected credit losses could be materially different. The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes. Loan pools are further segmented by risk utilizing risk ratings or bands of payment delinquency (including TDR or non-accrual status), depending on what is most appropriate for each segment. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio. The Company relies on a third-party platform which offers multiple methodologies to measure historical life losses. The Company has also developed models internally to incorporate future economic conditions and forecast future credit losses based on various macro-economic indicators. The Company has identified the following portfolio segments to measure the allowance for credit losses: Loan Segment Historical Lifetime Historical Economic Forecast Length Reversion Method Construction Probability of Default/Loss Given Default ("PD/LGD") 2008-Present One Year One Year (straight-line basis) Commercial real estate Loss-Rate Migration 2008-Present Multi-family mortgage PD/LGD 2008-Present Commercial, financial and agricultural Loss-Rate Migration 2008-Present Home equity lines of credit Loss-Rate Migration 2008-Present Residential mortgage Loss-Rate Migration 2008-Present Consumer - other revolving Loss-Rate Migration 2008-Present Consumer - non-revolving Loss-Rate Migration 2008-Present Other consumer Loss-Rate Migration 2008-Present Purchased dealer loans Weighted-Average Remaining Maturity ("WARM") 2008-Present Purchased consumer unsecured loans Loss-Rate Migration/WARM 2008-Present Below is a description and the risk characteristics of each segment: Construction loans Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment. Commercial real estate loans Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels. Multi-family mortgage loans Multi-family mortgage loans can comprise multi-building properties with extensive amenities to a single building with no amenities. The primary risk characteristic of this segment is operating risk or the ability to generate sufficient rental cash flows from the operation of the property within the owner’s strategy and resources. Commercial, financial and agricultural loans Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. The borrower’s business is typically regarded as the principal source of repayment, though our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk. Home equity lines of credit Home equity lines of credit include fixed or floating interest rate loans and are secured by single-family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity. Residential mortgage loans Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates and other market factors impact the level of credit risk inherent in the portfolio. Consumer loans - other revolving This segment consists of consumer unsecured lines of credit. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Consumer loans - non-revolving This segment consists of consumer non-revolving loans, including dealer loans. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Purchased consumer portfolios Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of purchased consumer loans include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans. Below is a description of the methodologies mentioned above: PD/LGD The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools and then further sub-segmented by risk characteristics such as Risk Rating to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total loss rate is calculated using the formula ‘PD times LGD’. Migration Migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Migration analysis requires a portfolio segmented by risk characteristics such as risk rating to measure loss rates accurately. The key inputs to run a migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula 'net charge-offs over the period divided by beginning loan balance'. WARM Under the WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool and then applying a loss rate which includes a forecast component over this remaining life. The methodology considers historical loss experience as well as a loss forecast expectation to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses. Other If a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as discounted cash flow (“DCF”) techniques. Loans evaluated individually are not also included in the collective evaluation. Determining the Contractual Term Expected credit losses are estimated over the contractual term of the loans and are adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. If such renewal options or extensions are present, these options are evaluated in determining the contractual term. Reserve for Off-Balance Sheet Credit Exposures The Company maintains a separate and distinct reserve for off-balance-sheet credit exposures which is included in other liabilities on the Company’s consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor for letters of credit, non-revolving lines of credit, and revolving lines of credit over the remaining life during which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. Letters of credit are generally unlikely to advance since they are typically in place only to ensure various forms of performance of the borrowers. Many of the letters of credit are cash secured. Non-revolving lines of credit are determined to be likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole. The estimate also applies the loss factors for each loan type used in the ACL for loans methodology, which is based on historical losses, economic conditions and reasonable and supportable forecasts. The reserve for off-balance sheet credit exposures is adjusted as a provision for off-balance sheet credit exposures in other operating expense. No credit loss estimate is reported for off-balance-sheet credit exposures that are unconditionally cancellable by the bank. Purchased Credit Deteriorated (“PCD”) Financial Assets The Company has purchased financial assets, none of which were credit deteriorated since origination, at the time of purchase. The Company does not purchase any financial assets that are greater than 30 days delinquent at the time of purchase. PCD financial assets, if any, are recorded at the amount paid. An ACL for PCD financial assets will be determined using the same methodology as other financial assets. The initial ACL determined on a collective basis is allocated to individual financial assets. The sum of the financial asset’s purchase price and the ACL becomes its initial amortized cost. The difference between the initial amortized costs basis and the par value of the financial asset is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through the provision for credit losses. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2020 On January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology (Allowance for Loan and Leases Losses or "ALLL") with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to accounting for AFS debt securities. One such change is to require credit losses to be presented as an allowance rather than a write-down on AFS debt securities if management intends to sell or believes that it is more likely than not they will be required to sell the debt security before recovery of the amortized cost basis. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles (“GAAP”). The Company recorded a net decrease to retained earnings (or a net increase to accumulated deficit) of $3.2 million as of January 1, 2020 for the cumulative effect of adopting ASU 2016-13. The transition adjustment includes increases of $3.6 million to the ACL for loans and $0.7 million to other liabilities, which includes the reserve for off-balance sheet credit exposures, offset by a $1.1 million increase to other assets for the related impact to net deferred tax assets. The following table illustrates the impact of ASC 326: January 1, 2020 (dollars in thousands) As Reported Pre-ASC 326 Impact of Assets: Allowance for credit losses on loans: Commercial, financial & industrial $ (7,509) $ (8,136) $ 627 Real estate: Construction (2,271) (1,792) (479) Residential mortgage (13,935) (13,327) (608) Home equity (2,592) (4,206) 1,614 Commercial mortgage (13,737) (11,113) (2,624) Consumer (11,493) (9,397) (2,096) Subtotal $ (51,537) $ (47,971) $ (3,566) Net deferred tax assets (included in other assets) $ 17,692 $ 16,541 $ 1,151 Liabilities: Reserve for off-balance sheet credit exposures (included in other liabilities) $ (2,012) $ (1,272) $ (740) Equity: Accumulated deficit $ 22,257 $ 19,102 $ 3,155 In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The ASU is part of the FASB's disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles. The ASU modifies disclosure requirements on fair value measurements in Topic 820. The Company adopted ASU 2018-13 effective January 1, 2020. ASU 2018-13 did not have a material impact on disclosures in our consolidated financial statements. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the novel coronavirus pandemic ("COVID-19") and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as troubled debt restructurings (TDRs). The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. This interagency guidance is expected to reduce the number of TDR's that will be reported in future periods, however, the amount is indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic . Impact of Other Recently Issued Accounting Pronouncements on Future Filings In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." Like ASU 2018-13, this ASU is part of the FASB's disclosure framework project. This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for the Company's reporting period beginning January 1, 2021. Early adoption is permitted. Based on preliminary evaluation, the ASU will not have a material impact on disclosures in our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table illustrates the impact of ASC 326: January 1, 2020 (dollars in thousands) As Reported Pre-ASC 326 Impact of Assets: Allowance for credit losses on loans: Commercial, financial & industrial $ (7,509) $ (8,136) $ 627 Real estate: Construction (2,271) (1,792) (479) Residential mortgage (13,935) (13,327) (608) Home equity (2,592) (4,206) 1,614 Commercial mortgage (13,737) (11,113) (2,624) Consumer (11,493) (9,397) (2,096) Subtotal $ (51,537) $ (47,971) $ (3,566) Net deferred tax assets (included in other assets) $ 17,692 $ 16,541 $ 1,151 Liabilities: Reserve for off-balance sheet credit exposures (included in other liabilities) $ (2,012) $ (1,272) $ (740) Equity: Accumulated deficit $ 22,257 $ 19,102 $ 3,155 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of available for sale and held to maturity investment securities | are as follows: (dollars in thousands) Amortized Gross Gross Fair ACL March 31, 2020 Available-for-sale: Debt securities: States and political subdivisions $ 131,539 $ 2,955 $ (284) $ 134,210 $ — Corporate securities 30,116 111 — 30,227 — U.S. Treasury obligations and direct obligations of U.S Government agencies 38,244 43 (781) 37,506 — Mortgage-backed securities: Residential - U.S. Government-sponsored entities 716,398 18,861 (209) 735,050 — Commercial - U.S. Government agencies and sponsored entities 77,612 2,707 — 80,319 — Residential - Non-government agencies 34,113 608 (49) 34,672 — Commercial - Non-government agencies 131,705 1,265 (931) 132,039 — Total available-for-sale securities $ 1,159,727 $ 26,550 $ (2,254) $ 1,184,023 $ — The amortized cost, gross unrealized gains and losses and fair value of AFS debt securities are as follows: (dollars in thousands) Amortized Gross Gross Fair December 31, 2019 Available-for-sale: Debt securities: States and political subdivisions $ 119,755 $ 2,303 $ (40) $ 122,018 Corporate securities 30,277 252 — 30,529 U.S. Treasury obligations and direct obligations of U.S Government agencies 40,769 10 (398) 40,381 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 673,918 6,003 (2,099) 677,822 Commercial - U.S. Government agencies and sponsored entities 80,773 1,198 (746) 81,225 Residential - Non-government agencies 36,377 830 (16) 37,191 Commercial - Non-government agencies 134,676 3,141 — 137,817 Total available-for-sale securities $ 1,116,545 $ 13,737 $ (3,299) $ 1,126,983 The amortized cost and fair value of our equity investment securities is as follows: (dollars in thousands) Amortized Cost Fair Value March 31, 2020 Equity securities $ 961 $ 1,002 December 31, 2019 Equity securities 935 1,127 |
Schedule of amortized cost and estimated fair value of investment securities by contractual maturity | The amortized cost and estimated fair value of our AFS debt securities at March 31, 2020 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. March 31, 2020 (dollars in thousands) Amortized Cost Fair Value Available-for-sale: Due in one year or less $ 48,598 $ 48,784 Due after one year through five years 46,887 47,163 Due after five years through ten years 63,133 64,548 Due after ten years 41,281 41,448 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 716,398 735,050 Commercial - U.S. Government agencies and sponsored entities 77,612 80,319 Residential - Non-government agencies 34,113 34,672 Commercial - Non-government agencies 131,705 132,039 Total available-for-sale securities $ 1,159,727 $ 1,184,023 |
Schedule of investment securities in an unrealized loss position | There were a total of 50 and 81 AFS debt securities which were in an unrealized or unrecognized loss position, without an ACL, at March 31, 2020 and December 31, 2019, respectively. The following tables summarize AFS debt securities which were in an unrealized loss position at March 31, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized or unrecognized loss position. Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2020 Debt securities: States and political subdivisions $ 6,953 $ (278) $ 803 $ (6) $ 7,756 $ (284) Corporate securities — — — — — — U.S. Treasury obligations and direct obligations of U.S Government agencies 14,879 (325) 17,437 (456) 32,316 (781) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 4,764 (28) 17,967 (181) 22,731 (209) Residential - Non-government agencies 7,495 (49) — — 7,495 (49) Commercial - U.S. Government agencies and sponsored entities — — — — — — Commercial - Non-government agencies 78,904 (931) — — 78,904 (931) Total temporarily impaired securities $ 112,995 $ (1,611) $ 36,207 $ (643) $ 149,202 $ (2,254) Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Debt securities: States and political subdivisions $ 1,754 $ (9) $ 801 $ (31) $ 2,555 $ (40) Corporate securities — — — — — — U.S. Treasury obligations and direct obligations of U.S Government agencies 18,882 (143) 19,031 (255) 37,913 (398) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 54,335 (283) 214,295 (1,816) 268,630 (2,099) Residential - Non-government agencies 8,206 (16) — — 8,206 (16) Commercial - U.S. Government-sponsored entities 32,067 (746) — — 32,067 (746) Total temporarily impaired securities $ 115,244 $ (1,197) $ 234,127 $ (2,102) $ 349,371 $ (3,299) |
LOANS AND CREDIT QUALITY (Table
LOANS AND CREDIT QUALITY (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of loans and leases, excluding loans held for sale | Loans, excluding loans held for sale, net of ACL under ASC 326 as of March 31, 2020 and loans, excluding loans held for sale, net of ACL under previous GAAP as of December 31, 2019 consisted of the following: (dollars in thousands) March 31, 2020 December 31, 2019 Commercial, financial and agricultural $ 575,169 $ 570,089 Real estate: Construction 100,959 96,139 Residential mortgage 1,628,502 1,595,801 Home equity 504,061 490,239 Commercial mortgage 1,140,611 1,124,911 Consumer 559,765 569,516 Gross loans and leases 4,509,067 4,446,695 Net deferred costs 2,931 2,845 Loans 4,511,998 4,449,540 Allowance for credit losses (59,645) (47,971) Loans, net of allowance for credit losses $ 4,452,353 $ 4,401,569 |
Financing Receivable, Purchased With Credit Deterioration | The following table presents loans purchased by class for the periods presented: (dollars in thousands) Consumer - Unsecured Three Months Ended March 31, 2020 Purchases: Outstanding balance $ 22,953 Purchase premium (discount) (613) Purchase price $ 22,340 Three Months Ended March 31, 2019 Purchases: Outstanding balance $ 18,286 Purchase premium (discount) — Purchase price $ 18,286 |
Financing Receivable, Collateral-Dependent | The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of March 31, 2020: (dollars in thousands) Secured by Secured by Secured by Total Allocated Three Months Ended March 31, 2020 Commercial, financial and agricultural $ — $ — $ 667 $ 667 $ 231 Real estate: Residential mortgage 7,718 — — 7,718 — Home equity 545 — — 545 — Commercial mortgage — 512 — 512 — Total $ 8,263 $ 512 $ 667 $ 9,442 $ 231 |
Schedule of impaired loans, by class | December 31, 2019 (dollars in thousands) Unpaid Recorded ACL Impaired loans: Commercial, financial and agricultural $ 246 $ 135 $ — Real estate: Residential mortgage 7,230 6,516 — Home equity 92 92 — Commercial mortgage 1,839 1,839 — Total 9,407 8,582 — Impaired loans with an ACL recorded: Commercial, financial and agricultural 467 467 218 Consumer 17 17 17 Total 484 484 235 Total impaired loans $ 9,891 $ 9,066 $ 235 |
Schedule of average recorded investment and interest income recognized on impaired loans, by class | The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three months ended March 31, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13: Three Months Ended March 31, 2019 (dollars in thousands) Average Interest Commercial, financial and agricultural $ 209 $ 3 Real estate: Construction 2,233 30 Residential mortgage 9,818 106 Home equity 497 — Commercial mortgage 2,285 23 Total $ 15,042 $ 162 |
Schedule of aging of the recorded investment in past due loans and leases, by class | The following tables present by class, the aging of the recorded investment in past due loans and leases as of March 31, 2020 and December 31, 2019. The following tables also present the amortized cost of loans on onaccrual status for which there was no related ACL under ASC 326 as of March 31, 2020 and under previous GAAP as of December 31, 2019. (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total Nonaccrual March 31, 2020 Commercial, financial and agricultural $ 7,050 $ 712 $ — $ 667 $ 8,429 $ 566,895 $ 575,324 $ — Real estate: Construction 478 — — — 478 100,139 100,617 — Residential mortgage 4,371 82 1,221 2,287 7,961 1,624,575 1,632,536 2,287 Home equity 573 — — 545 1,118 503,568 504,686 545 Commercial mortgage 287 — — — 287 1,138,850 1,139,137 — Consumer 4,739 1,167 352 48 6,306 553,392 559,698 — Total $ 17,498 $ 1,961 $ 1,573 $ 3,547 $ 24,579 $ 4,487,419 $ 4,511,998 $ 2,832 (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total Nonaccrual December 31, 2019 Commercial, financial and agricultural $ 476 $ 865 $ — $ 467 $ 1,808 $ 568,496 $ 570,304 $ — Real estate: Construction 643 — — — 643 95,211 95,854 — Residential mortgage 1,830 589 724 979 4,122 1,595,679 1,599,801 979 Home equity 759 207 — 92 1,058 489,676 490,734 92 Commercial mortgage — 397 — — 397 1,123,018 1,123,415 — Consumer 3,223 943 286 17 4,469 564,963 569,432 — Total $ 6,931 $ 3,001 $ 1,010 $ 1,555 $ 12,497 $ 4,437,043 $ 4,449,540 $ 1,071 |
Schedule of information related to loans modified in a TDR, by class | No loans were modified in a TDR during the three months ended March 31, 2020 and 2019. |
Schedule of recorded investment in loans and leases, by class and credit indicator | The following table presents the amortized cost basis of the Company's loans by class, credit quality indicator and origination year as of March 31, 2020. Revolving loans converted to term as of and during the three months ended March 31, 2020 were not material to the total loan portfolio. Amortized Cost of Term Loans by Origination Year 2020 2019 2018 2017 2016 Prior Amortized Cost of Revolving Loans Total (dollars in thousands) March 31, 2020 Commercial, financial and agricultural Risk Rating Pass $ 40,976 $ 77,593 $ 64,288 $ 59,642 $ 50,144 $ 125,599 $ 97,073 $ 515,315 Special Mention 2,865 9,777 5,627 15,376 1,006 9,153 3,280 47,084 Substandard — 7,497 526 1,229 2,097 1,576 — 12,925 Subtotal 43,841 94,867 70,441 76,247 53,247 136,328 100,353 575,324 Construction Risk Rating Pass 7,923 12,157 50,181 6,920 2,277 21,159 — 100,617 Residential mortgage Risk Rating Pass 80,293 364,858 186,851 201,685 227,341 566,829 — 1,627,857 Special Mention — — — — 159 835 — 994 Substandard — — 550 929 302 1,904 — 3,685 Subtotal 80,293 364,858 187,401 202,614 227,802 569,568 — 1,632,536 Home equity Risk Rating Pass 4,927 21,426 22,858 493 249 3,951 450,237 504,141 Substandard — — — — 207 338 — 545 Subtotal 4,927 21,426 22,858 493 456 4,289 450,237 504,686 Commercial mortgage Risk Rating Pass 36,503 153,355 170,779 172,937 118,087 396,221 17,463 1,065,345 Special Mention — — 2,392 12,597 13,220 32,666 — 60,875 Substandard — 7,434 — — — 5,483 — 12,917 Subtotal 36,503 160,789 173,171 185,534 131,307 434,370 17,463 1,139,137 Consumer Risk Rating Pass 47,522 206,573 111,490 68,480 31,287 17,520 76,277 559,149 Special Mention — — — — — — 150 150 Substandard — 11 26 11 — 237 — 285 Loss — — — — — 114 — 114 Subtotal 47,522 206,584 111,516 68,491 31,287 17,871 76,427 559,698 Total $ 221,009 $ 860,681 $ 615,568 $ 540,299 $ 446,376 $ 1,183,585 $ 644,480 $ 4,511,998 The following table presents the Company's loans by class and credit quality indicator as of December 31, 2019: (dollars in thousands) Pass Special Substandard Loss Subtotal Net Total December 31, 2019 Commercial, financial and agricultural $ 523,342 $ 20,677 $ 26,070 $ — $ 570,089 $ 215 $ 570,304 Real estate: Construction 96,139 — — — 96,139 (285) 95,854 Residential mortgage 1,593,072 840 1,889 — 1,595,801 4,000 1,599,801 Home equity 490,147 — 92 — 490,239 495 490,734 Commercial mortgage 1,094,364 17,440 13,107 — 1,124,911 (1,496) 1,123,415 Consumer 569,212 — 193 111 569,516 (84) 569,432 Total $ 4,366,276 $ 38,957 $ 41,351 $ 111 $ 4,446,695 $ 2,845 $ 4,449,540 |
ALLOWANCE FOR CREDIT LOSSES A_2
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | |
Schedule of activity in the allowance, by class | The following table presents by class, the activity in the ACL for loans under ASC 326 during the three months ended March 31, 2020 and under previous GAAP during the three months ended March 31, 2019: Real Estate (dollars in thousands) Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Total Three Months Ended March 31, 2020 Beginning balance prior to ASC 326 $ 8,136 $ 1,792 $ 13,327 $ 4,206 $ 11,113 $ 9,397 $ 47,971 Impact of adoption of ASC 326 (627) 479 608 (1,614) 2,624 2,096 3,566 Balance after adoption of ASC 326 7,509 2,271 13,935 2,592 13,737 11,493 51,537 Provision for credit losses 1,231 655 (935) (314) 5,779 2,913 9,329 Charge-offs 437 — — — — 2,217 2,654 Recoveries 342 131 181 31 2 746 1,433 Net charge-offs (recoveries) 95 (131) (181) (31) (2) 1,471 1,221 Ending balance $ 8,645 $ 3,057 $ 13,181 $ 2,309 $ 19,518 $ 12,935 $ 59,645 Three Months Ended March 31, 2019 Beginning balance $ 8,027 $ 1,202 $ 14,349 $ 3,788 $ 13,358 $ 7,192 $ 47,916 Provision for credit losses 50 91 (1,520) 481 (1,322) 3,503 1,283 8,077 1,293 12,829 4,269 12,036 10,695 49,199 Charge-offs 463 — — — — 2,251 2,714 Recoveries 233 6 22 9 — 512 782 Net charge-offs (recoveries) 230 (6) (22) (9) — 1,739 1,932 Ending balance $ 7,847 $ 1,299 $ 12,851 $ 4,278 $ 12,036 $ 8,956 $ 47,267 The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, under ASC 326 during the three months ended March 31, 2020 and under previous GAAP during the three months ended March 31, 2019. Three Months Ended March 31, 2020 Beginning balance prior to ASC 326 $ 1,272 Impact of adoption of ASC 326 740 Balance after adoption of ASC 326 2,012 Provision for off-balance sheet credit exposures 1,798 Ending Balance $ 3,810 Three Months Ended March 31, 2019 Beginning balance $ 1,242 Provision for off-balance sheet credit exposures 167 Ending balance $ 1,409 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Schedule of investment in unconsolidated subsidiaries | The components of the Company's investments in unconsolidated subsidiaries were as follows: (dollars in thousands) March 31, 2020 December 31, 2019 Investments in low income housing tax credit partnerships $ 14,974 $ 15,322 Investments in common securities of statutory trusts 1,547 1,547 Investments in affiliates 146 192 Other 54 54 Total $ 16,721 $ 17,115 The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three months ended March 31, 2020 and March 31, 2019: (dollars in thousands) Three Months Ended Three Months Ended Proportional amortization method: Amortization expense recognized in income tax expense $ 348 $ 258 Tax credits recognized in income tax expense 400 277 |
Other Commitments | e expected payments for the unfunded commitments as of March 31, 2020 for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2020 (remainder) $ 6,452 2021 1,494 2022 3,010 2023 10 2024 26 2025 6 Thereafter 42 Total unfunded commitments $ 11,040 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
OTHER INTANGIBLE ASSETS | |
Schedule of gross carrying value and accumulated amortization related to intangible assets | The following table presents changes in mortgage servicing rights for the periods presented: (dollars in thousands) Mortgage Balance, January 1, 2019 $ 15,596 Additions 222 Amortization (471) Balance, March 31, 2019 $ 15,347 Balance, January 1, 2020 $ 14,718 Additions 174 Amortization (1,547) Balance, March 31, 2020 $ 13,345 The gross carrying value and accumulated amortization related to our mortgage servicing rights are presented below: March 31, 2020 December 31, 2019 (dollars in thousands) Gross Accumulated Net Gross Accumulated Net Mortgage servicing rights $ 67,769 $ (54,424) $ 13,345 $ 67,595 $ (52,877) $ 14,718 |
Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights | The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: Three Months Ended Three Months Ended (dollars in thousands) March 31, 2020 March 31, 2019 Fair market value, beginning of period $ 15,820 $ 17,696 Fair market value, end of period 13,525 16,541 Weighted average discount rate 9.5 % 9.5 % Forecasted constant prepayment rate assumption (1) 16.1 % 16.2 % |
Schedule of estimated amortization expense | Based on the mortgage servicing rights held as of March 31, 2020, estimated amortization expense for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2020 (remainder) $ 4,400 2021 4,764 2022 3,856 2023 325 2024 — 2025 — Thereafter — Total $ 13,345 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the location of all assets and liabilities associated with derivative instruments within the consolidated balance sheets | The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets: Derivatives Financial Instruments Not Designated as Hedging Instruments Asset Derivatives Liability Derivatives Fair Value at Fair Value at (dollars in thousands) Balance Sheet Location March 31, December 31, March 31, December 31, Interest rate lock and forward sale commitments Other assets / other liabilities $ 115 $ 8 $ 37 $ 28 |
Schedule of the impact of derivative instruments and their location within the consolidated statements of income | The following table presents the impact of derivative instruments and their location within the consolidated statements of income: Derivatives Financial Instruments Location of Gain (Loss) Amount of Gain (Loss) (dollars in thousands) Three Months Ended March 31, 2020 Interest rate lock and forward sale commitments Mortgage banking income $ 99 Risk participation agreement Other service charges and fees 1,288 Three Months Ended March 31, 2019 Interest rate lock and forward sale commitments Mortgage banking income 39 |
SHORT-TERM BORROWINGS AND LON_2
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Borrowing | At March 31, 2020 and December 31, 2019, the Company had the following junior subordinated debentures outstanding, which is recorded in long-term debt on the Company's consolidated balance sheets: (dollars in thousands) March 31, 2020 Name of Trust Subordinated Debentures Interest Rate Trust IV $ 30,928 Three month LIBOR + 2.45% Trust V 20,619 Three month LIBOR + 1.87% Total $ 51,547 December 31, 2019 Name of Trust Subordinated Debentures Interest Rate Trust IV 30,928 Three month LIBOR + 2.45% Trust V 20,619 Three month LIBOR + 1.87% Total $ 51,547 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Other operating income segregated by revenue streams | The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three months ended March 31, 2020 and 2019. Three Months Ended (dollars in thousands) 2020 2019 Other operating income: In-scope of ASC 606 Mortgage banking income $ 229 $ 149 Service charges on deposit accounts 2,050 2,081 Other service charges and fees 2,996 2,594 Income on fiduciary activities 1,297 965 In-scope other operating income 6,572 5,789 Out-of-scope other operating income 2,314 5,884 Total other operating income $ 8,886 $ 11,673 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of activity of restricted stock awards and units | The table below presents the activity of restricted stock units for the three months ended March 31, 2020: Shares Weighted Average Grant Date Fair Value Non-vested restricted stock units, beginning of period 366,467 $ 28.89 Changes during the period: Granted 78,697 28.10 Vested (46,050) 30.43 Forfeited (5,813) 29.55 Non-vested restricted stock units, end of period 393,301 28.54 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended (dollars in thousands) 2020 2019 Lease cost: Operating lease cost $ 1,653 $ 1,628 Variable lease cost 678 647 Less: sublease income (12) (11) Total lease cost $ 2,319 2,264 Other information: Operating cash flows from operating leases $ (1,594) $ (1,549) Weighted-average remaining lease term - operating leases 13.36 years 14.10 years Weighted-average discount rate - operating leases 3.92 % 3.92 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter (dollars in thousands): Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2020 (remainder) $ 4,622 $ 1,462 $ 3,160 2021 5,907 1,808 4,099 2022 5,472 1,659 3,813 2023 5,175 1,519 3,656 2024 4,947 1,385 3,562 2025 4,634 1,247 3,387 Thereafter 36,285 6,421 29,864 Total $ 67,042 $ 15,501 $ 51,541 |
Operating Lease, Lease Income [Table Text Block] | The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended (dollars in thousands) 2020 2019 Total rental income recognized $ 533 535 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Based on the Company's leases as lessor as of March 31, 2020, estimated lease payments for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2020 (remainder) $ 1,710 2021 2,263 2022 1,657 2023 644 2024 155 2025 72 Thereafter 190 Total $ 6,691 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of components of other comprehensive income (loss) | The following tables present the components of other comprehensive income for the three months ended March 31, 2020 and 2019, by component: (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2020 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 13,858 $ 3,711 $ 10,147 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 13,858 3,711 10,147 Defined benefit plans: Net actuarial gains arising during the period 427 114 313 Amortization of net actuarial loss 268 72 196 Amortization of net transition obligation 5 1 4 Amortization of prior service cost 4 1 3 Defined benefit plans, net 704 188 516 Other comprehensive income $ 14,562 $ 3,899 $ 10,663 (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2019 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 15,024 $ 4,028 $ 10,996 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 15,024 4,028 10,996 Defined benefit plans: Amortization of net actuarial loss 263 29 234 Amortization of net transition obligation 5 1 4 Amortization of prior service cost 5 1 4 Defined benefit plans, net 273 31 242 Other comprehensive income $ 15,297 $ 4,059 $ 11,238 |
Schedule of changes in each component of AOCI, net of tax | The following tables present the changes in each component of AOCI, net of tax, for the three months ended March 31, 2020 and 2019: (dollars in thousands) Investment Defined AOCI Three Months Ended March 31, 2020 Balance at beginning of period 14,825 (6,416) 8,409 Other comprehensive income before reclassifications 10,147 313 10,460 Reclassification adjustments from AOCI — 203 203 Total other comprehensive income 10,147 516 10,663 Balance at end of period $ 24,972 $ (5,900) $ 19,072 (dollars in thousands) Investment Defined AOCI Three Months Ended March 31, 2019 Balance at beginning of period $ (9,643) $ (6,450) $ (16,093) Impact of the adoption of new accounting standards (3,100) — (3,100) Adjusted balance at beginning of period (12,743) (6,450) (19,193) Other comprehensive loss before reclassifications 10,996 — 10,996 Reclassification adjustments from AOCI — 242 242 Total other comprehensive income 10,996 242 11,238 Balance at end of period $ (1,747) $ (6,208) $ (7,955) |
Schedule of amounts reclassified out of each component of AOCI | The following table presents the amounts reclassified out of each component of AOCI for the three months ended March 31, 2020 and 2019: Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Three months ended March 31, (dollars in thousands) 2020 2019 Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (268) $ (263) Salaries and employee benefits Amortization of net transition obligation (5) (5) Salaries and employee benefits Amortization of prior service cost (4) (5) Salaries and employee benefits Total before tax (277) (273) Tax effect 74 31 Income tax benefit (expense) Net of tax $ (203) $ (242) Total reclassification adjustments from AOCI for the period, net of tax $ (203) $ (242) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of information used to compute basic and diluted earnings per share | The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated: Three Months Ended (dollars in thousands, except per share data) 2020 2019 Net income $ 8,326 $ 16,037 Weighted average common shares outstanding - basic 28,126,400 28,758,310 Dilutive effect of employee stock options and awards 151,353 221,545 Weighted average common shares outstanding - diluted 28,277,753 28,979,855 Basic earnings per common share $ 0.30 $ 0.56 Diluted earnings per common share $ 0.29 $ 0.55 Anti-dilutive employee stock options and awards outstanding — — |
FAIR VALUE OF FINANCIAL ASSET_2
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value of financial instruments | Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices Significant Significant March 31, 2020 Financial assets: Cash and due from banks $ 81,972 $ 81,972 $ 81,972 $ — $ — Interest-bearing deposits in other banks 11,021 11,021 11,021 — — Investment securities 1,185,025 1,185,025 1,002 1,172,451 11,572 Loans held for sale 3,910 3,910 — 3,910 — Net loans and leases 4,452,353 4,204,383 — — 4,204,383 Accrued interest receivable (included in other assets) 16,851 16,851 16,851 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,430,540 1,430,540 1,430,540 — — Interest-bearing demand and savings and money market 2,711,788 2,711,788 2,711,788 — — Time 993,741 996,284 — — 996,284 Short-term borrowings 222,000 222,000 — 222,000 — Long-term debt 101,547 91,032 — 91,032 — Accrued interest payable (included in other liabilities) 4,132 4,132 4,132 — — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices Significant Significant March 31, 2020 Derivatives: Interest rate lock commitments $ 4,237 $ 115 $ 115 $ — $ 115 $ — Forward sale commitments 8,118 (37) (37) — (37) — Off-balance sheet financial instruments: Commitments to extend credit 1,186,476 1,414 1,414 — 1,414 — Standby letters of credit and financial guarantees written 9,424 141 141 — 141 — Risk participation agreement 28,800 32 32 — — 32 Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices Significant Significant December 31, 2019 Financial assets: Cash and due from banks $ 78,418 $ 78,418 $ 78,418 $ — $ — Interest-bearing deposits in other banks 24,554 24,554 24,554 — — Investment securities 1,128,110 1,128,110 1,127 1,115,728 11,255 Loans held for sale 9,083 9,083 — 9,083 — Net loans and leases 4,401,569 4,392,477 — — 4,392,477 Accrued interest receivable (included in other assets) 16,500 16,500 16,500 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,450,532 1,450,532 1,450,532 — — Interest-bearing demand and savings and money market 2,643,038 2,643,038 2,643,038 — — Time 1,026,453 1,023,362 — — 1,023,362 Short-term borrowings 150,000 150,000 — 150,000 — Long-term debt 101,547 97,827 — 97,827 — Accrued interest payable (included in other liabilities) 4,288 4,288 4,288 — — |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the fair value of assets and liabilities measured on a recurring basis as of March 31, 2020 and December 31, 2019: Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Prices Significant Significant March 31, 2020 Available-for-sale securities: Debt securities: States and political subdivisions $ 134,210 $ — $ 122,638 $ 11,572 Corporate securities 30,227 — 30,227 — U.S. Treasury obligations and direct obligations of U.S Government agencies 37,506 — 37,506 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 735,050 — 735,050 — Commercial - U.S. Government agencies and sponsored entities 80,319 — 80,319 — Residential - Non-government agencies 34,672 — 34,672 — Commercial - Non-government agencies 132,039 — 132,039 — Total available-for-sale securities 1,184,023 — 1,172,451 11,572 Equity securities 1,002 1,002 — — Derivatives: Interest rate lock and forward sale commitments 78 — 78 — Total $ 1,185,103 $ 1,002 $ 1,172,529 $ 11,572 Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Prices Significant Significant December 31, 2019 Available-for-sale securities: Debt securities: States and political subdivisions $ 122,018 $ — $ 110,763 $ 11,255 Corporate securities 30,529 — 30,529 — U.S. Treasury obligations and direct obligations of U.S Government agencies 40,381 — 40,381 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 677,822 — 677,822 — Commercial - U.S. Government agencies and sponsored entities 81,225 — 81,225 — Residential - Non-government agencies 37,191 — 37,191 — Commercial - Non-government agencies 137,817 — 137,817 — Total available-for-sale securities 1,126,983 — 1,115,728 11,255 Equity securities 1,127 1,127 — — Derivatives: Interest rate lock and forward sale commitments (20) — (20) — Total $ 1,128,090 $ 1,127 $ 1,115,708 $ 11,255 |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the three months ended March 31, 2020 and 2019, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: (dollars in thousands) Available-For-Sale Balance at December 31, 2019 $ 11,255 Principal payments received (109) Unrealized net gain included in other comprehensive income 426 Balance at March 31, 2020 $ 11,572 Balance at December 31, 2018 $ 11,169 Principal payments received (105) Unrealized net loss included in other comprehensive income 200 Balance at March 31, 2019 $ 11,264 |
Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis | the level of valuation assumptions used to determine the respective fair values as of March 31, 2020 and December 31, 2019: Fair Value Measurements Using (dollars in thousands) Fair Value Quoted Prices Significant Significant March 31, 2020 Other real estate (1) $ 100 $ — $ 100 $ — December 31, 2019 Other real estate (1) $ 164 $ — $ 164 $ — (1) Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | Dec. 31, 2019USD ($)segment | Mar. 31, 2020USD ($)segment | Jan. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 0.2 | $ 0.1 | |
Proportional Amortization Investments | 15.3 | 15 | |
Cost Method Investments | $ 1.6 | $ 1.6 | |
Number of operating segments | segment | 3 | 1 | |
Available for sale accrued interest receivable | $ 4.5 | ||
Financing receivable accrued interest receivable | $ 12.4 | ||
Oahu HomeLoans, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, ownership percentage | 50.00% |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | $ 59,645 | $ (47,971) | $ 47,971 | ||
Net deferred tax assets (included in other assets) | 16,541 | ||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | (3,810) | (1,272) | (1,272) | $ (1,409) | $ (1,242) |
Accumulated deficit | $ 20,428 | 19,102 | 19,102 | ||
Commercial Financial And Agricultural Portfolio Segment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (8,136) | ||||
Real Estate | Construction | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (1,792) | ||||
Real Estate | Residential Mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (13,327) | ||||
Real Estate | Home Equity | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (4,206) | ||||
Real Estate | Commercial Mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (11,113) | ||||
Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (9,397) | ||||
Adjusted balance at beginning of period | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (51,537) | ||||
Net deferred tax assets (included in other assets) | 17,692 | ||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | (2,012) | (2,012) | |||
Accumulated deficit | 22,257 | ||||
Adjusted balance at beginning of period | Commercial Financial And Agricultural Portfolio Segment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (7,509) | ||||
Adjusted balance at beginning of period | Real Estate | Construction | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (2,271) | ||||
Adjusted balance at beginning of period | Real Estate | Residential Mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (13,935) | ||||
Adjusted balance at beginning of period | Real Estate | Home Equity | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (2,592) | ||||
Adjusted balance at beginning of period | Real Estate | Commercial Mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (13,737) | ||||
Adjusted balance at beginning of period | Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (11,493) | ||||
Impact of the adoption of new accounting standards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (3,566) | ||||
Net deferred tax assets (included in other assets) | 1,151 | ||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | (740) | (740) | |||
Accumulated deficit | 3,155 | 3,200 | |||
Impact of the adoption of new accounting standards | Commercial Financial And Agricultural Portfolio Segment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | 627 | ||||
Impact of the adoption of new accounting standards | Real Estate | Construction | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (479) | ||||
Impact of the adoption of new accounting standards | Real Estate | Residential Mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (608) | ||||
Impact of the adoption of new accounting standards | Real Estate | Home Equity | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | 1,614 | ||||
Impact of the adoption of new accounting standards | Real Estate | Commercial Mortgage | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | (2,624) | ||||
Impact of the adoption of new accounting standards | Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | $ (2,096) | ||||
Accounting Standards Update 2016-13 [Member] | Impact of the adoption of new accounting standards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing receivable, allowance for credit loss | 3,600 | ||||
Net deferred tax assets (included in other assets) | 1,100 | ||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | $ (700) |
INVESTMENT SECURITIES (Availabl
INVESTMENT SECURITIES (Available for Sale and Held to Maturity Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available for Sale | ||
Amortized cost | $ 1,159,727 | $ 1,116,545 |
Gross unrealized gains | 26,550 | 13,737 |
Gross unrealized losses | (2,254) | (3,299) |
Fair value | 1,184,023 | 1,126,983 |
Available-for-sale, allowance for credit loss | 0 | |
Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Available for Sale | ||
Amortized cost | 716,398 | 673,918 |
Gross unrealized gains | 18,861 | 6,003 |
Gross unrealized losses | (209) | (2,099) |
Fair value | 735,050 | 677,822 |
Available-for-sale, allowance for credit loss | 0 | |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale | ||
Amortized cost | 77,612 | 80,773 |
Gross unrealized gains | 2,707 | 1,198 |
Gross unrealized losses | 0 | (746) |
Fair value | 80,319 | 81,225 |
Available-for-sale, allowance for credit loss | 0 | |
States and political subdivisions | ||
Available for Sale | ||
Amortized cost | 131,539 | 119,755 |
Gross unrealized gains | 2,955 | 2,303 |
Gross unrealized losses | (284) | (40) |
Fair value | 134,210 | 122,018 |
Available-for-sale, allowance for credit loss | 0 | |
Corporate securities | ||
Available for Sale | ||
Amortized cost | 30,116 | 30,277 |
Gross unrealized gains | 111 | 252 |
Gross unrealized losses | 0 | 0 |
Fair value | 30,227 | 30,529 |
Available-for-sale, allowance for credit loss | 0 | |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Available for Sale | ||
Amortized cost | 38,244 | 40,769 |
Gross unrealized gains | 43 | 10 |
Gross unrealized losses | (781) | (398) |
Fair value | 37,506 | 40,381 |
Available-for-sale, allowance for credit loss | 0 | |
Residential - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 34,113 | 36,377 |
Gross unrealized gains | 608 | 830 |
Gross unrealized losses | (49) | (16) |
Fair value | 34,672 | 37,191 |
Available-for-sale, allowance for credit loss | 0 | |
Commercial - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 131,705 | 134,676 |
Gross unrealized gains | 1,265 | 3,141 |
Gross unrealized losses | (931) | 0 |
Fair value | 132,039 | $ 137,817 |
Available-for-sale, allowance for credit loss | $ 0 |
INVESTMENT SECURITIES (Amortize
INVESTMENT SECURITIES (Amortized Cost and Estimated Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 48,598 | |
Due after one year through five years | 46,887 | |
Due after five years through ten years | 63,133 | |
Due after ten years | 41,281 | |
Total | 1,159,727 | |
Available for Sale, Estimated Fair Value | ||
Due in one year or less | 48,784 | |
Due after one year through five years | 47,163 | |
Due after five years through ten years | 64,548 | |
Due after ten years | 41,448 | |
Available-for-sale debt securities, at fair value | 1,184,023 | $ 1,126,983 |
Equity securities, at fair value | 1,002 | 1,127 |
Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 716,398 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 735,050 | |
Available-for-sale debt securities, at fair value | 735,050 | 677,822 |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 77,612 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 80,319 | |
Available-for-sale debt securities, at fair value | 80,319 | 81,225 |
Residential - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 34,113 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 34,672 | |
Available-for-sale debt securities, at fair value | 34,672 | 37,191 |
Commercial - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 131,705 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 132,039 | |
Available-for-sale debt securities, at fair value | 132,039 | 137,817 |
Equity securities | ||
Available for Sale, Estimated Fair Value | ||
Equity securities, at amortized cost | 961 | 935 |
Equity securities, at fair value | $ 1,002 | $ 1,127 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020USD ($)securityshares | Mar. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)security | Jan. 01, 2019USD ($) | |
Class of Stock [Line Items] | ||||
Proceeds from sale of MasterCard stock | $ 0 | $ 2,555 | ||
Available-for-sale securities, sold at par | $ 0 | |||
Investment securities pledged as collateral | $ 617,900 | $ 719,800 | ||
Number of investment securities in an unrealized loss position | security | 50 | 81 | ||
Visa [Member] | Common Class B [Member] | ||||
Class of Stock [Line Items] | ||||
Shares owned (in shares) | shares | 34,631 | |||
Credit Card Intermediary [Member] | Common Class B [Member] | ||||
Class of Stock [Line Items] | ||||
Shares owned (in shares) | shares | 11,170 | |||
Proceeds from sale of MasterCard stock | $ 2,600 | |||
Accounting Standards Update 2017-12 [Member] | ||||
Class of Stock [Line Items] | ||||
Debt Securities, Held-to-maturity | $ 148,500 | |||
Fair value | $ 144,300 |
INVESTMENT SECURITIES (Investme
INVESTMENT SECURITIES (Investment Securities at an Unrealized Loss Position) (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of investment securities in an unrealized loss position | security | 50 | 81 |
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | $ 112,995 | $ 115,244 |
Less than 12 months, Unrealized Losses | (1,611) | (1,197) |
12 months or longer, Fair Value | 36,207 | 234,127 |
12 months or longer, Unrealized Losses | (643) | (2,102) |
Total, Fair Value | 149,202 | 349,371 |
Total, Unrealized Losses | (2,254) | (3,299) |
States and political subdivisions | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 6,953 | 1,754 |
Less than 12 months, Unrealized Losses | (278) | (9) |
12 months or longer, Fair Value | 803 | 801 |
12 months or longer, Unrealized Losses | (6) | (31) |
Total, Fair Value | 7,756 | 2,555 |
Total, Unrealized Losses | (284) | (40) |
Corporate securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 0 |
Total, Unrealized Losses | 0 | 0 |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 14,879 | 18,882 |
Less than 12 months, Unrealized Losses | (325) | (143) |
12 months or longer, Fair Value | 17,437 | 19,031 |
12 months or longer, Unrealized Losses | (456) | (255) |
Total, Fair Value | 32,316 | 37,913 |
Total, Unrealized Losses | (781) | (398) |
Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 4,764 | 54,335 |
Less than 12 months, Unrealized Losses | (28) | (283) |
12 months or longer, Fair Value | 17,967 | 214,295 |
12 months or longer, Unrealized Losses | (181) | (1,816) |
Total, Fair Value | 22,731 | 268,630 |
Total, Unrealized Losses | (209) | (2,099) |
Residential - Non-government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 7,495 | 8,206 |
Less than 12 months, Unrealized Losses | (49) | (16) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 7,495 | 8,206 |
Total, Unrealized Losses | (49) | (16) |
Mortgage Backed Securities Commercial U S Government Sponsored Entities [Member] | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 0 | 32,067 |
Less than 12 months, Unrealized Losses | 0 | (746) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 32,067 |
Total, Unrealized Losses | 0 | $ (746) |
Commercial - Non-government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 78,904 | |
Less than 12 months, Unrealized Losses | (931) | |
12 months or longer, Fair Value | 0 | |
12 months or longer, Unrealized Losses | 0 | |
Total, Fair Value | 78,904 | |
Total, Unrealized Losses | $ (931) |
LOANS AND CREDIT QUALITY (Loans
LOANS AND CREDIT QUALITY (Loans and Leases) (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)contractloan | Mar. 31, 2019contractloan | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
LOANS AND LEASES | ||||
Impaired loans, allowance allocated | $ 235,000 | |||
Loans and leases, gross | $ 4,509,067,000 | 4,446,695,000 | ||
Net deferred costs | 2,931,000 | 2,845,000 | ||
Loans, net of allowance for credit losses | $ 4,511,998,000 | 4,449,540,000 | ||
Number of loans transferred to held-for-sale | loan | 0 | 0 | ||
Number of loans sold | loan | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss | $ (59,645,000) | $ 47,971,000 | (47,971,000) | |
Loans and Leases Receivable, Net Amount | $ 4,452,353,000 | 4,401,569,000 | ||
Commercial, Financial & Agricultural | ||||
LOANS AND LEASES | ||||
Impaired loans, allowance allocated | 218,000 | |||
Number of TDRs included in nonperforming assets | contract | 0 | 0 | ||
Financing Receivable, Commitments, Number of Contracts | contract | 0 | 0 | ||
Loans and leases, gross | $ 575,169,000 | 570,089,000 | ||
Net deferred costs | 215,000 | |||
Loans, net of allowance for credit losses | 575,324,000 | 570,304,000 | ||
Financing Receivable, Allowance for Credit Loss | 8,136,000 | |||
Real Estate | Construction | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 100,959,000 | 96,139,000 | ||
Net deferred costs | (285,000) | |||
Loans, net of allowance for credit losses | 100,617,000 | 95,854,000 | ||
Financing Receivable, Allowance for Credit Loss | 1,792,000 | |||
Real Estate | Home Equity | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 504,061,000 | 490,239,000 | ||
Net deferred costs | 495,000 | |||
Loans, net of allowance for credit losses | 504,686,000 | 490,734,000 | ||
Financing Receivable, Allowance for Credit Loss | 4,206,000 | |||
Real Estate | Residential Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 1,628,502,000 | 1,595,801,000 | ||
Net deferred costs | 4,000,000 | |||
Loans, net of allowance for credit losses | 1,632,536,000 | 1,599,801,000 | ||
Loans in the process of foreclosure | 700,000 | 600,000 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss | 13,327,000 | |||
Real Estate | Commercial Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 1,140,611,000 | 1,124,911,000 | ||
Net deferred costs | (1,496,000) | |||
Loans, net of allowance for credit losses | 1,139,137,000 | 1,123,415,000 | ||
Financing Receivable, Allowance for Credit Loss | 11,113,000 | |||
Consumer | ||||
LOANS AND LEASES | ||||
Impaired loans, allowance allocated | 17,000 | |||
Financing Receivable, Allowance for Credit Loss | $ 9,397,000 | |||
Consumer | Consumer | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 559,765,000 | 569,516,000 | ||
Net deferred costs | (84,000) | |||
Loans, net of allowance for credit losses | $ 559,698,000 | 569,432,000 | ||
Special Mention | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 38,957,000 | |||
Special Mention | Commercial, Financial & Agricultural | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 20,677,000 | |||
Special Mention | Real Estate | Construction | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Special Mention | Real Estate | Home Equity | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Special Mention | Real Estate | Residential Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 840,000 | |||
Special Mention | Real Estate | Commercial Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 17,440,000 | |||
Special Mention | Consumer | Consumer | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Substandard | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 41,351,000 | |||
Substandard | Commercial, Financial & Agricultural | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 26,070,000 | |||
Substandard | Real Estate | Construction | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Substandard | Real Estate | Home Equity | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 92,000 | |||
Substandard | Real Estate | Residential Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 1,889,000 | |||
Substandard | Real Estate | Commercial Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 13,107,000 | |||
Substandard | Consumer | Consumer | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 193,000 | |||
Loss | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 111,000 | |||
Loss | Commercial, Financial & Agricultural | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Loss | Real Estate | Construction | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Loss | Real Estate | Home Equity | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Loss | Real Estate | Residential Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Loss | Real Estate | Commercial Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 0 | |||
Loss | Consumer | Consumer | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 111,000 | |||
Pass | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 4,366,276,000 | |||
Pass | Commercial, Financial & Agricultural | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 523,342,000 | |||
Pass | Real Estate | Construction | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 96,139,000 | |||
Pass | Real Estate | Home Equity | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 490,147,000 | |||
Pass | Real Estate | Residential Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 1,593,072,000 | |||
Pass | Real Estate | Commercial Mortgage | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | 1,094,364,000 | |||
Pass | Consumer | Consumer | ||||
LOANS AND LEASES | ||||
Loans and leases, gross | $ 569,212,000 |
LOANS AND CREDIT QUALITY (Purch
LOANS AND CREDIT QUALITY (Purchases) (Details) - Consumer - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Outstanding balance | $ 22,953 | $ 18,286 |
Purchase premium (discount) | (613) | 0 |
Purchase price | $ 22,340 | $ 18,286 |
LOANS AND CREDIT QUALITY (Detai
LOANS AND CREDIT QUALITY (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | $ 9,442 |
Allocated ACL | 231 |
Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 8,263 |
Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 512 |
Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 667 |
Commercial Financial And Agricultural Portfolio Segment [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 667 |
Allocated ACL | 231 |
Commercial Financial And Agricultural Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Commercial Financial And Agricultural Portfolio Segment [Member] | Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Commercial Financial And Agricultural Portfolio Segment [Member] | Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 667 |
Real Estate | Residential Mortgage | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 7,718 |
Allocated ACL | 0 |
Real Estate | Residential Mortgage | Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 7,718 |
Real Estate | Residential Mortgage | Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Residential Mortgage | Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Home Equity | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 545 |
Allocated ACL | 0 |
Real Estate | Home Equity | Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 545 |
Real Estate | Home Equity | Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Home Equity | Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Commercial Mortgage | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 512 |
Allocated ACL | 0 |
Real Estate | Commercial Mortgage | Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Commercial Mortgage | Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 512 |
Real Estate | Commercial Mortgage | Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | $ 0 |
LOANS AND CREDIT QUALITY (Allow
LOANS AND CREDIT QUALITY (Allowance for Loan and Lease Losses) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
ACL: | ||||
Total ending balance | $ 59,645,000 | $ 47,971,000 | $ 47,267,000 | $ 47,916,000 |
Loans and leases : | ||||
Loans and leases, gross | 4,509,067,000 | 4,446,695,000 | ||
Net deferred costs | 2,931,000 | 2,845,000 | ||
Loans, net of allowance for credit losses | 4,511,998,000 | 4,449,540,000 | ||
Commercial, Financial & Agricultural | ||||
ACL: | ||||
Total ending balance | 8,645,000 | 8,136,000 | 7,847,000 | 8,027,000 |
Loans and leases : | ||||
Loans and leases, gross | 575,169,000 | 570,089,000 | ||
Net deferred costs | 215,000 | |||
Loans, net of allowance for credit losses | 575,324,000 | 570,304,000 | ||
Construction | Real Estate | ||||
ACL: | ||||
Total ending balance | 3,057,000 | 1,792,000 | 1,299,000 | 1,202,000 |
Loans and leases : | ||||
Loans and leases, gross | 100,959,000 | 96,139,000 | ||
Net deferred costs | (285,000) | |||
Loans, net of allowance for credit losses | 100,617,000 | 95,854,000 | ||
Residential Mortgage | Real Estate | ||||
ACL: | ||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||
Total ending balance | 13,181,000 | 13,327,000 | 12,851,000 | 14,349,000 |
Loans and leases : | ||||
Loans and leases, gross | 1,628,502,000 | 1,595,801,000 | ||
Net deferred costs | 4,000,000 | |||
Loans, net of allowance for credit losses | 1,632,536,000 | 1,599,801,000 | ||
Home Equity | Real Estate | ||||
ACL: | ||||
Total ending balance | 2,309,000 | 4,206,000 | 4,278,000 | 3,788,000 |
Loans and leases : | ||||
Loans and leases, gross | 504,061,000 | 490,239,000 | ||
Net deferred costs | 495,000 | |||
Loans, net of allowance for credit losses | 504,686,000 | 490,734,000 | ||
Commercial Mortgage | Real Estate | ||||
ACL: | ||||
Total ending balance | 19,518,000 | 11,113,000 | 12,036,000 | 13,358,000 |
Loans and leases : | ||||
Loans and leases, gross | 1,140,611,000 | 1,124,911,000 | ||
Net deferred costs | (1,496,000) | |||
Loans, net of allowance for credit losses | 1,139,137,000 | 1,123,415,000 | ||
Consumer | Consumer | ||||
ACL: | ||||
Total ending balance | 12,935,000 | 9,397,000 | $ 8,956,000 | $ 7,192,000 |
Loans and leases : | ||||
Loans and leases, gross | 559,765,000 | 569,516,000 | ||
Net deferred costs | (84,000) | |||
Loans, net of allowance for credit losses | $ 559,698,000 | $ 569,432,000 |
LOANS AND CREDIT QUALITY (Impai
LOANS AND CREDIT QUALITY (Impaired Loans) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Unpaid Principal Balance | |||
Impaired loans with no related allowance recorded | $ 9,407,000 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 484,000 | ||
Total | 9,891,000 | ||
Recorded Investment | |||
Impaired loans with no related allowance recorded | 8,582,000 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 484,000 | ||
Total | 9,066,000 | ||
Allowance Allocated | |||
Impaired loans, allowance allocated | 235,000 | ||
Average recorded investment on impaired loans | |||
Average Recorded Investment | $ 15,042,000 | ||
Interest income recognized on impaired loans | |||
Interest Income Recognized | 162,000 | ||
Commercial, Financial & Agricultural | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance recorded | 246,000 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 467,000 | ||
Recorded Investment | |||
Impaired loans with no related allowance recorded | 135,000 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 467,000 | ||
Allowance Allocated | |||
Impaired loans, allowance allocated | 218,000 | ||
Average recorded investment on impaired loans | |||
Average Recorded Investment | 209,000 | ||
Interest income recognized on impaired loans | |||
Interest Income Recognized | 3,000 | ||
Consumer | |||
Unpaid Principal Balance | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 17,000 | ||
Recorded Investment | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 17,000 | ||
Allowance Allocated | |||
Impaired loans, allowance allocated | 17,000 | ||
Construction | Real Estate | |||
Average recorded investment on impaired loans | |||
Average Recorded Investment | 2,233,000 | ||
Interest income recognized on impaired loans | |||
Interest Income Recognized | 30,000 | ||
Residential Mortgage | Real Estate | |||
Impaired Loans | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 0 | 0 | |
Unpaid Principal Balance | |||
Impaired loans with no related allowance recorded | 7,230,000 | ||
Recorded Investment | |||
Impaired loans with no related allowance recorded | 6,516,000 | ||
Average recorded investment on impaired loans | |||
Average Recorded Investment | 9,818,000 | ||
Interest income recognized on impaired loans | |||
Interest Income Recognized | 106,000 | ||
Loans in the process of foreclosure | $ 700,000 | 600,000 | |
Home Equity | Real Estate | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance recorded | 92,000 | ||
Recorded Investment | |||
Impaired loans with no related allowance recorded | 92,000 | ||
Average recorded investment on impaired loans | |||
Average Recorded Investment | 497,000 | ||
Interest income recognized on impaired loans | |||
Interest Income Recognized | 0 | ||
Commercial Mortgage | Real Estate | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance recorded | 1,839,000 | ||
Recorded Investment | |||
Impaired loans with no related allowance recorded | $ 1,839,000 | ||
Average recorded investment on impaired loans | |||
Average Recorded Investment | 2,285,000 | ||
Interest income recognized on impaired loans | |||
Interest Income Recognized | $ 23,000 |
LOANS AND CREDIT QUALITY (Aging
LOANS AND CREDIT QUALITY (Aging of Recorded Investment) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | $ 3,547 | $ 1,555 |
Total Past Due and Nonaccrual | 24,579 | 12,497 |
Loans and Leases Not Past Due | 4,487,419 | 4,437,043 |
Loans, net of allowance for credit losses | 4,511,998 | 4,449,540 |
Nonaccrual Loans With No ACL | 2,832 | 1,071 |
Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 667 | 467 |
Total Past Due and Nonaccrual | 8,429 | 1,808 |
Loans and Leases Not Past Due | 566,895 | 568,496 |
Loans, net of allowance for credit losses | 575,324 | 570,304 |
Nonaccrual Loans With No ACL | 0 | 0 |
Accruing Loans 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 17,498 | 6,931 |
Accruing Loans 30 - 59 Days Past Due | Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 7,050 | 476 |
Accruing Loans 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,961 | 3,001 |
Accruing Loans 60 - 89 Days Past Due | Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 712 | 865 |
Accruing Loans Greater Than 90 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,573 | 1,010 |
Accruing Loans Greater Than 90 Days Past Due | Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Residential Mortgage | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 2,287 | 979 |
Total Past Due and Nonaccrual | 7,961 | 4,122 |
Loans and Leases Not Past Due | 1,624,575 | 1,595,679 |
Loans, net of allowance for credit losses | 1,632,536 | 1,599,801 |
Nonaccrual Loans With No ACL | 2,287 | 979 |
Residential Mortgage | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 4,371 | 1,830 |
Residential Mortgage | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 82 | 589 |
Residential Mortgage | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,221 | 724 |
Construction | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 478 | 643 |
Loans and Leases Not Past Due | 100,139 | 95,211 |
Loans, net of allowance for credit losses | 100,617 | 95,854 |
Nonaccrual Loans With No ACL | 0 | 0 |
Construction | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 478 | 643 |
Construction | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Construction | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Home Equity | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 545 | 92 |
Total Past Due and Nonaccrual | 1,118 | 1,058 |
Loans and Leases Not Past Due | 503,568 | 489,676 |
Loans, net of allowance for credit losses | 504,686 | 490,734 |
Nonaccrual Loans With No ACL | 545 | 92 |
Home Equity | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 573 | 759 |
Home Equity | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 207 |
Home Equity | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Commercial Mortgage | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 287 | 397 |
Loans and Leases Not Past Due | 1,138,850 | 1,123,018 |
Loans, net of allowance for credit losses | 1,139,137 | 1,123,415 |
Nonaccrual Loans With No ACL | 0 | 0 |
Commercial Mortgage | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 287 | 0 |
Commercial Mortgage | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 397 |
Commercial Mortgage | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Consumer | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 48 | 17 |
Total Past Due and Nonaccrual | 6,306 | 4,469 |
Loans and Leases Not Past Due | 553,392 | 564,963 |
Loans, net of allowance for credit losses | 559,698 | 569,432 |
Nonaccrual Loans With No ACL | 0 | 0 |
Consumer | Accruing Loans 30 - 59 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 4,739 | 3,223 |
Consumer | Accruing Loans 60 - 89 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,167 | 943 |
Consumer | Accruing Loans Greater Than 90 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | $ 352 | $ 286 |
LOANS AND CREDIT QUALITY (Modif
LOANS AND CREDIT QUALITY (Modifications) (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020USD ($)contractloan | Mar. 31, 2019contract | Apr. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Information related to loans modified in a TDR | ||||
Debt Instrument, Deferrals, Amount | $ 65,000 | |||
Loans modified as a TDR within the previous twelve months that subsequently defaulted | ||||
Number of loans were modified as a TDR within the previous twelve months that subsequently defaulted | loan | 0 | |||
Subsequent Event | ||||
Information related to loans modified in a TDR | ||||
Debt Instrument, Deferrals, Amount | $ 453,000 | |||
Accruing Loans Greater Than 90 Days Past Due | ||||
Information related to loans modified in a TDR | ||||
Financing Receivable, Past Due | $ 1,573 | $ 1,010 | ||
Commercial, Financial & Agricultural | ||||
Information related to loans modified in a TDR | ||||
Number of TDRs included in nonperforming assets | contract | 0 | 0 | ||
Commercial, Financial & Agricultural | Accruing Loans Greater Than 90 Days Past Due | ||||
Information related to loans modified in a TDR | ||||
Financing Receivable, Past Due | $ 0 | 0 | ||
Nonperforming Financial Instruments | ||||
Information related to loans modified in a TDR | ||||
Amount of TDRs still accruing interest | $ 7,300 | 7,500 | ||
Nonperforming Financial Instruments | Resi Mortgage | HAWAII | ||||
Information related to loans modified in a TDR | ||||
Number of TDRs included in nonperforming assets | loan | 1 | |||
Principal balances of troubled debt restructurings included in nonperforming assets | $ 300 | |||
Residential Mortgage | Real Estate | Accruing Loans Greater Than 90 Days Past Due | ||||
Information related to loans modified in a TDR | ||||
Financing Receivable, Past Due | 1,221 | 724 | ||
Commercial Mortgage | Real Estate | Accruing Loans Greater Than 90 Days Past Due | ||||
Information related to loans modified in a TDR | ||||
Financing Receivable, Past Due | $ 0 | $ 0 |
LOANS AND CREDIT QUALITY (Class
LOANS AND CREDIT QUALITY (Class and Credit Indicator) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | $ 221,009 | |
2019 | 860,681 | |
2018 | 615,568 | |
2017 | 540,299 | |
2016 | 446,376 | |
Prior | 1,183,585 | |
Amortized Cost of Revolving Loans | 644,480 | |
Total | 4,511,998 | |
Loans and leases, gross | 4,509,067 | $ 4,446,695 |
Net deferred costs | 2,931 | 2,845 |
Loans, net of allowance for credit losses | 4,511,998 | 4,449,540 |
Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 43,841 | |
2019 | 94,867 | |
2018 | 70,441 | |
2017 | 76,247 | |
2016 | 53,247 | |
Prior | 136,328 | |
Amortized Cost of Revolving Loans | 100,353 | |
Total | 575,324 | |
Loans and leases, gross | 575,169 | 570,089 |
Net deferred costs | 215 | |
Loans, net of allowance for credit losses | 575,324 | 570,304 |
Pass | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 4,366,276 | |
Pass | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 40,976 | |
2019 | 77,593 | |
2018 | 64,288 | |
2017 | 59,642 | |
2016 | 50,144 | |
Prior | 125,599 | |
Amortized Cost of Revolving Loans | 97,073 | |
Total | 515,315 | |
Loans and leases, gross | 523,342 | |
Special Mention | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 38,957 | |
Special Mention | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 2,865 | |
2019 | 9,777 | |
2018 | 5,627 | |
2017 | 15,376 | |
2016 | 1,006 | |
Prior | 9,153 | |
Amortized Cost of Revolving Loans | 3,280 | |
Total | 47,084 | |
Loans and leases, gross | 20,677 | |
Substandard | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 41,351 | |
Substandard | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 7,497 | |
2018 | 526 | |
2017 | 1,229 | |
2016 | 2,097 | |
Prior | 1,576 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 12,925 | |
Loans and leases, gross | 26,070 | |
Loss | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 111 | |
Loss | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Construction | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 100,959 | 96,139 |
Net deferred costs | (285) | |
Loans, net of allowance for credit losses | 100,617 | 95,854 |
Construction | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 7,923 | |
2019 | 12,157 | |
2018 | 50,181 | |
2017 | 6,920 | |
2016 | 2,277 | |
Prior | 21,159 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 100,617 | |
Loans and leases, gross | 96,139 | |
Construction | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Construction | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Construction | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Residential Mortgage | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 80,293 | |
2019 | 364,858 | |
2018 | 187,401 | |
2017 | 202,614 | |
2016 | 227,802 | |
Prior | 569,568 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 1,632,536 | |
Loans and leases, gross | 1,628,502 | 1,595,801 |
Net deferred costs | 4,000 | |
Loans, net of allowance for credit losses | 1,632,536 | 1,599,801 |
Residential Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 80,293 | |
2019 | 364,858 | |
2018 | 186,851 | |
2017 | 201,685 | |
2016 | 227,341 | |
Prior | 566,829 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 1,627,857 | |
Loans and leases, gross | 1,593,072 | |
Residential Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 159 | |
Prior | 835 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 994 | |
Loans and leases, gross | 840 | |
Residential Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 550 | |
2017 | 929 | |
2016 | 302 | |
Prior | 1,904 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 3,685 | |
Loans and leases, gross | 1,889 | |
Residential Mortgage | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Home Equity | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 4,927 | |
2019 | 21,426 | |
2018 | 22,858 | |
2017 | 493 | |
2016 | 456 | |
Prior | 4,289 | |
Amortized Cost of Revolving Loans | 450,237 | |
Total | 504,686 | |
Loans and leases, gross | 504,061 | 490,239 |
Net deferred costs | 495 | |
Loans, net of allowance for credit losses | 504,686 | 490,734 |
Home Equity | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 4,927 | |
2019 | 21,426 | |
2018 | 22,858 | |
2017 | 493 | |
2016 | 249 | |
Prior | 3,951 | |
Amortized Cost of Revolving Loans | 450,237 | |
Total | 504,141 | |
Loans and leases, gross | 490,147 | |
Home Equity | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Home Equity | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 207 | |
Prior | 338 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 545 | |
Loans and leases, gross | 92 | |
Home Equity | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Commercial Mortgage | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 36,503 | |
2019 | 160,789 | |
2018 | 173,171 | |
2017 | 185,534 | |
2016 | 131,307 | |
Prior | 434,370 | |
Amortized Cost of Revolving Loans | 17,463 | |
Total | 1,139,137 | |
Loans and leases, gross | 1,140,611 | 1,124,911 |
Net deferred costs | (1,496) | |
Loans, net of allowance for credit losses | 1,139,137 | 1,123,415 |
Commercial Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 36,503 | |
2019 | 153,355 | |
2018 | 170,779 | |
2017 | 172,937 | |
2016 | 118,087 | |
Prior | 396,221 | |
Amortized Cost of Revolving Loans | 17,463 | |
Total | 1,065,345 | |
Loans and leases, gross | 1,094,364 | |
Commercial Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 2,392 | |
2017 | 12,597 | |
2016 | 13,220 | |
Prior | 32,666 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 60,875 | |
Loans and leases, gross | 17,440 | |
Commercial Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 7,434 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 5,483 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 12,917 | |
Loans and leases, gross | 13,107 | |
Commercial Mortgage | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Consumer | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 47,522 | |
2019 | 206,584 | |
2018 | 111,516 | |
2017 | 68,491 | |
2016 | 31,287 | |
Prior | 17,871 | |
Amortized Cost of Revolving Loans | 76,427 | |
Total | 559,698 | |
Loans and leases, gross | 559,765 | 569,516 |
Net deferred costs | (84) | |
Loans, net of allowance for credit losses | 559,698 | 569,432 |
Consumer | Pass | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 47,522 | |
2019 | 206,573 | |
2018 | 111,490 | |
2017 | 68,480 | |
2016 | 31,287 | |
Prior | 17,520 | |
Amortized Cost of Revolving Loans | 76,277 | |
Total | 559,149 | |
Loans and leases, gross | 569,212 | |
Consumer | Special Mention | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 150 | |
Total | 150 | |
Loans and leases, gross | 0 | |
Consumer | Substandard | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 11 | |
2018 | 26 | |
2017 | 11 | |
2016 | 0 | |
Prior | 237 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 285 | |
Loans and leases, gross | 193 | |
Consumer | Loss | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 114 | |
Amortized Cost of Revolving Loans | 0 | |
Total | $ 114 | |
Loans and leases, gross | $ 111 |
ALLOWANCE FOR CREDIT LOSSES A_3
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Changes in the allowance | ||
Beginning balance | $ 47,971 | $ 47,916 |
Provision for credit losses | 9,329 | 1,283 |
Subtotal | 49,199 | |
Charge-offs | 2,654 | 2,714 |
Recoveries | 1,433 | 782 |
Net charge-offs (recoveries) | 1,221 | 1,932 |
Ending balance | 59,645 | 47,267 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Off-balance sheet, credit loss, liability, beginning balance | 1,272 | 1,242 |
Provision for off-balance sheet credit exposures | 1,798 | 167 |
Off-balance sheet, credit loss, liability, ending balance | 3,810 | 1,409 |
Commercial, Financial & Agricultural | ||
Changes in the allowance | ||
Beginning balance | 8,136 | 8,027 |
Provision for credit losses | 1,231 | 50 |
Subtotal | 8,077 | |
Charge-offs | 437 | 463 |
Recoveries | 342 | 233 |
Net charge-offs (recoveries) | 95 | 230 |
Ending balance | 8,645 | 7,847 |
Construction | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 1,792 | 1,202 |
Provision for credit losses | 655 | 91 |
Subtotal | 1,293 | |
Charge-offs | 0 | 0 |
Recoveries | 131 | 6 |
Net charge-offs (recoveries) | (131) | (6) |
Ending balance | 3,057 | 1,299 |
Residential Mortgage | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 13,327 | 14,349 |
Provision for credit losses | (935) | (1,520) |
Subtotal | 12,829 | |
Charge-offs | 0 | 0 |
Recoveries | 181 | 22 |
Net charge-offs (recoveries) | (181) | (22) |
Ending balance | 13,181 | 12,851 |
Home Equity | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 4,206 | 3,788 |
Provision for credit losses | (314) | 481 |
Subtotal | 4,269 | |
Charge-offs | 0 | 0 |
Recoveries | 31 | 9 |
Net charge-offs (recoveries) | (31) | (9) |
Ending balance | 2,309 | 4,278 |
Commercial Mortgage | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 11,113 | 13,358 |
Provision for credit losses | 5,779 | (1,322) |
Subtotal | 12,036 | |
Charge-offs | 0 | 0 |
Recoveries | 2 | 0 |
Net charge-offs (recoveries) | (2) | 0 |
Ending balance | 19,518 | 12,036 |
Consumer | Consumer | ||
Changes in the allowance | ||
Beginning balance | 9,397 | 7,192 |
Provision for credit losses | 2,913 | 3,503 |
Subtotal | 10,695 | |
Charge-offs | 2,217 | 2,251 |
Recoveries | 746 | 512 |
Net charge-offs (recoveries) | 1,471 | 1,739 |
Ending balance | 12,935 | $ 8,956 |
Impact of the adoption of new accounting standards | ||
Changes in the allowance | ||
Beginning balance | 3,566 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Off-balance sheet, credit loss, liability, beginning balance | 740 | |
Impact of the adoption of new accounting standards | Commercial, Financial & Agricultural | ||
Changes in the allowance | ||
Beginning balance | (627) | |
Impact of the adoption of new accounting standards | Construction | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 479 | |
Impact of the adoption of new accounting standards | Residential Mortgage | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 608 | |
Impact of the adoption of new accounting standards | Home Equity | Real Estate | ||
Changes in the allowance | ||
Beginning balance | (1,614) | |
Impact of the adoption of new accounting standards | Commercial Mortgage | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 2,624 | |
Impact of the adoption of new accounting standards | Consumer | Consumer | ||
Changes in the allowance | ||
Beginning balance | 2,096 | |
Adjusted balance at beginning of period | ||
Changes in the allowance | ||
Beginning balance | 51,537 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Off-balance sheet, credit loss, liability, beginning balance | 2,012 | |
Adjusted balance at beginning of period | Commercial, Financial & Agricultural | ||
Changes in the allowance | ||
Beginning balance | 7,509 | |
Adjusted balance at beginning of period | Construction | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 2,271 | |
Adjusted balance at beginning of period | Residential Mortgage | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 13,935 | |
Adjusted balance at beginning of period | Home Equity | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 2,592 | |
Adjusted balance at beginning of period | Commercial Mortgage | Real Estate | ||
Changes in the allowance | ||
Beginning balance | 13,737 | |
Adjusted balance at beginning of period | Consumer | Consumer | ||
Changes in the allowance | ||
Beginning balance | $ 11,493 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||
2020 (remainder) | $ 6,452 | ||
2020 | 1,494 | ||
2021 | 3,010 | ||
2022 | 10 | ||
2023 | 26 | ||
2024 | 6 | ||
Thereafter | 42 | ||
Total unfunded commitments | 11,040 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Investments in Low Income Housing Tax Credit Partnerships | 14,974 | $ 15,322 | |
Investments in common securities of statutory trusts | 1,547 | 1,547 | |
Investments in affiliates | 146 | 192 | |
Other | 54 | 54 | |
Investment in unconsolidated subsidiaries | 16,721 | 17,115 | |
Amortization expense in pretax income | 348 | $ 258 | |
Income tax credits and adjustments | 400 | $ 277 | |
Unfunded commitments, LIHTC | $ 11,000 | $ 11,500 |
MORTGAGE SERVICING RIGHTS (Deta
MORTGAGE SERVICING RIGHTS (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
OTHER INTANGIBLE ASSETS | |||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | $ 727 | $ 611 | |||
Mortgage Servicing Rights | |||||
OTHER INTANGIBLE ASSETS | |||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | 200 | 200 | |||
Changes in other intangible assets | |||||
Balance, beginning of period | 14,718 | 15,596 | |||
Additions | 174 | 222 | |||
Amortization | (1,547) | (471) | |||
Balance, end of period | 13,345 | 15,347 | |||
Fair market value and key assumptions used in determining the fair market value | |||||
Fair market value, beginning of period | 15,820 | 17,696 | |||
Fair market value, end of period | 13,525 | 16,541 | |||
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||
Gross Carrying Value | $ 67,769 | $ 67,595 | |||
Accumulated Amortization | (54,424) | (52,877) | |||
Other intangible assets | 14,718 | 15,347 | 13,345 | 14,718 | $ 15,347 |
Estimated Amortization Expense | |||||
2020 (remainder) | 4,400 | ||||
2019 | 4,764 | ||||
2020 | 3,856 | ||||
2021 | 325 | ||||
2022 | 0 | ||||
2023 | 0 | ||||
Thereafter | 0 | ||||
Other intangible assets | $ 14,718 | $ 15,347 | $ 13,345 | $ 14,718 | $ 15,347 |
Measurement Input, Discount Rate | Mortgage Servicing Rights | |||||
Fair market value and key assumptions used in determining the fair market value | |||||
Forecasted constant prepayment rate assumption (1) | 0.095 | 0.095 | |||
Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | |||||
Fair market value and key assumptions used in determining the fair market value | |||||
Forecasted constant prepayment rate assumption (1) | 0.161 | 0.162 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Derivatives Not Designated as Hedging Instruments $ in Millions | Mar. 31, 2020USD ($) |
Interest rate lock commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 4.2 |
Forward sale commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 8.1 |
DERIVATIVES (Balance Sheet) (De
DERIVATIVES (Balance Sheet) (Details) - Derivatives Not Designated as Hedging Instruments - Interest rate lock and forward sale commitments - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Asset Derivatives | ||
Fair Value | $ 115 | $ 8 |
Liability Derivatives | ||
Fair Value | $ 37 | $ 28 |
DERIVATIVES (Income Statement)
DERIVATIVES (Income Statement) (Details) - Derivatives Not Designated as Hedging Instruments - Derivatives Not in Cash Flow Hedging Relationship - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Mortgage banking income | Interest rate lock and forward sale commitments | ||
DERIVATIVES | ||
Unrealized gain (loss) on interest rate locks | $ 99 | $ 39 |
Other service charges and fees | Risk participation agreement | ||
DERIVATIVES | ||
Unrealized gain (loss) on interest rate locks | $ 1,288 |
SHORT-TERM BORROWINGS AND LON_3
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Narrative (Details) | Jan. 07, 2019USD ($) | Dec. 17, 2018USD ($) | Dec. 31, 2004USD ($) | Sep. 30, 2004USD ($) | Oct. 31, 2003USD ($)trust | Mar. 31, 2020USD ($)period | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||||
Short-term borrowings | $ 222,000,000 | $ 150,000,000 | |||||
Long term borrowings | 101,547,000 | 101,547,000 | |||||
Number of wholly owned statutory trusts created | trust | 2 | ||||||
Federal Home Loan Bank Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit, maximum borrowing capacity | 1,870,000,000 | 1,840,000,000 | |||||
Letters of Credit, outstanding | 187,400,000 | 78,900,000 | |||||
Unused borrowings available | 1,410,000,000 | 1,570,000,000 | |||||
Short-term borrowings | 222,000,000 | 150,000,000 | |||||
Commercial real estate and commercial loans pledged as collateral | 2,510,000,000 | ||||||
Federal Reserve discount window line of credit | |||||||
Debt Instrument [Line Items] | |||||||
Unused borrowings available | 60,300,000 | 65,300,000 | |||||
Commercial real estate and commercial loans pledged as collateral | 125,200,000 | 126,100,000 | |||||
C P B Capital Trust I I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Common securities issued | $ 600,000 | ||||||
Trust preferred securities issued value | $ 20,000,000 | $ 20,000,000 | |||||
Trust Preferred Securities Issued Value, Held By Company | 600,000 | ||||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||||
Trust preferred securities, basis spread on variable rate | 2.85% | ||||||
C P B Capital Trust I I I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Common securities issued | $ 600,000 | ||||||
Trust preferred securities issued value | $ 20,000,000 | $ 20,000,000 | |||||
Trust Preferred Securities Issued Value, Held By Company | 600,000 | ||||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||||
Trust preferred securities, basis spread on variable rate | 2.85% | ||||||
C P B Capital Trust I V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Common securities issued | $ 900,000 | ||||||
Trust preferred securities issued value | $ 30,000,000 | ||||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||||
Trust preferred securities, basis spread on variable rate | 2.45% | ||||||
C P B Capital Trust V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Common securities issued | $ 600,000 | ||||||
Trust preferred securities issued value | $ 20,000,000 | ||||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||||
Trust preferred securities, basis spread on variable rate | 1.87% | ||||||
Federal Home Loan Bank Advances [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 50,000,000 | $ 50,000,000 | |||||
Subordinated Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of periods interest can be deferred | period | 20 | ||||||
Subordinated Debt [Member] | C P B Capital Trust I I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 20,600,000 | $ 20,600,000 | |||||
Subordinated Debt [Member] | C P B Capital Trust I I I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 20,600,000 | 20,600,000 | |||||
Subordinated Debt [Member] | C P B Capital Trust I V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | 30,900,000 | ||||||
Subordinated Debt [Member] | C P B Capital Trust V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 20,600,000 | ||||||
Maximum [Member] | Subordinated Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Redemption period | 90 days |
SHORT-TERM BORROWINGS AND LON_4
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Subordinated Debentures (Details) - Junior Subordinated Debt - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 51,547 | $ 51,547 |
Trust IV | ||
Debt Instrument [Line Items] | ||
Subordinated Debentures | 30,928 | 30,928 |
Trust V | ||
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 20,619 | $ 20,619 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from External Customer [Line Items] | ||
In-scope other operating income | $ 6,572 | $ 5,789 |
Out-of-scope other operating income | 2,314 | 5,884 |
Total other operating income | 8,886 | 11,673 |
Service charges on deposit accounts | ||
Revenue from External Customer [Line Items] | ||
In-scope other operating income | 2,050 | 2,081 |
Other service charges and fees | ||
Revenue from External Customer [Line Items] | ||
In-scope other operating income | 2,996 | 2,594 |
Income from fiduciary activities | ||
Revenue from External Customer [Line Items] | ||
In-scope other operating income | 1,297 | 965 |
Loan placement fees | ||
Revenue from External Customer [Line Items] | ||
In-scope other operating income | $ 229 | $ 149 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - Restricted Stock Awards and Units | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Activity of nonvested shares | |
Nonvested restricted stock awards and units, beginning of period (in shares) | shares | 366,467 |
Changes during the period: | |
Granted (in shares) | shares | 78,697 |
Vested (in shares) | shares | (46,050) |
Forfeited (in shares) | shares | (5,813) |
Nonvested restricted stock awards and units, end of period (in shares) | shares | 393,301 |
Weighted Average Grant Date Fair Value | |
Nonvested restricted stock awards and units, beginning of period (in dollars per share) | $ / shares | $ 28.89 |
Changes during the period: | |
Granted (in dollars per share) | $ / shares | 28.10 |
Vested (in dollars per share) | $ / shares | 30.43 |
Forfeited (in dollars per share) | $ / shares | 29.55 |
Nonvested restricted stock awards and units, end of period (in dollars per share) | $ / shares | $ 28.54 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 1,653 | $ 1,628 |
Variable Lease, Cost | 678 | 647 |
Sublease Income | (12) | (11) |
Lease, Cost | 2,319 | 2,264 |
Cash flows from operating leases | $ (1,594) | $ (1,549) |
Operating Lease, Weighted Average Remaining Lease Term | 13 years 4 months 9 days | 14 years 1 month 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.92% | 3.92% |
LEASES - Lessee, Operating Leas
LEASES - Lessee, Operating Lease Maturities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Undiscounted Cash Flows | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 4,622 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 5,907 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 5,472 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 5,175 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 4,947 |
Lessee, Operating Lease, Liability, Payments, Due Year Six | 4,634 |
Lessee, Operating Lease, Liability, Payments, Due after Year Six | 36,285 |
Lessee, Operating Lease, Liability, Payments, Due | 67,042 |
Lease Liability Expense | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Remainder Of The Year | 1,462 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Two | 1,808 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Three | 1,659 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Four | 1,519 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Five | 1,385 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Six | 1,247 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due After Year Six | 6,421 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 15,501 |
Lease Liability Reduction | |
Lessee, Operating Lease, Lease Liability Reduction, Due Remainder Of The Year | 3,160 |
Lessee, Operating Lease, Lease Liability Reduction, Year Two | 4,099 |
Lessee, Operating Lease, Lease Liability Reduction, Year Three | 3,813 |
Lessee, Operating Lease, Lease Liability Reduction, Year Four | 3,656 |
Lessee, Operating Lease, Lease Liability Reduction, Year Five | 3,562 |
Lessee, Operating Lease, Lease Liability Reduction, Year Six | 3,387 |
Lessee, Operating Lease, Lease Liability Reduction, After Year Six | 29,864 |
Lessee, Operating Lease, Lease Liability Reduction | $ 51,541 |
LEASES - Rental Income (Details
LEASES - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Lease Income | $ 533 | $ 535 |
LEASES - Lessor, Operating Leas
LEASES - Lessor, Operating Lease Maturities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Remainder of Fiscal Year | $ 1,710 |
Lessor, Operating Lease, Payments to be Received, Two Years | 2,263 |
Lessor, Operating Lease, Payments to be Received, Three Years | 1,657 |
Lessor, Operating Lease, Payments to be Received, Four Years | 644 |
Lessor, Operating Lease, Payments to be Received, Five Years | 155 |
Lessor, Operating Lease, Payments to be Received, Six Years | 72 |
Lessor, Operating Lease, Payments to be Received, Thereafter | 190 |
Lessor, Operating Lease, Payments to be Received | $ 6,691 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Before Tax | ||
Other comprehensive income (loss), before tax | $ 14,562 | $ 15,297 |
Tax Effect | ||
Other comprehensive income, tax | 3,899 | 4,059 |
Net of Tax | ||
Total other comprehensive income, net of tax | 10,663 | 11,238 |
Net unrealized gains on investment securities | ||
Before Tax | ||
Other comprehensive income (loss) before reclassification, before tax | 13,858 | 15,024 |
Reclassification from AOCI, before tax | 0 | 0 |
Other comprehensive income (loss), before tax | 13,858 | 15,024 |
Tax Effect | ||
Other comprehensive income (loss) before reclassifications, tax | 3,711 | 4,028 |
Reclassification from AOCI, tax | 0 | 0 |
Other comprehensive income, tax | 3,711 | 4,028 |
Net of Tax | ||
Other comprehensive income (loss), before reclassifications, net of tax | 10,147 | 10,996 |
Reclassification from AOCI, net of tax | 0 | 0 |
Total other comprehensive income, net of tax | 10,147 | 10,996 |
Net actuarial gains arising during the period | ||
Before Tax | ||
Reclassification from AOCI, before tax | 427 | |
Tax Effect | ||
Reclassification from AOCI, tax | 114 | |
Net of Tax | ||
Reclassification from AOCI, net of tax | 313 | |
Amortization of net actuarial loss | ||
Before Tax | ||
Reclassification from AOCI, before tax | 268 | 263 |
Tax Effect | ||
Reclassification from AOCI, tax | 72 | 29 |
Net of Tax | ||
Reclassification from AOCI, net of tax | 196 | 234 |
Amortization of net transition obligation | ||
Before Tax | ||
Reclassification from AOCI, before tax | 5 | 5 |
Tax Effect | ||
Reclassification from AOCI, tax | 1 | 1 |
Net of Tax | ||
Reclassification from AOCI, net of tax | 4 | 4 |
Amortization of prior service cost | ||
Before Tax | ||
Reclassification from AOCI, before tax | 4 | 5 |
Tax Effect | ||
Reclassification from AOCI, tax | 1 | 1 |
Net of Tax | ||
Reclassification from AOCI, net of tax | 3 | 4 |
Defined benefit plans, net | ||
Before Tax | ||
Other comprehensive income (loss), before tax | (704) | (273) |
Tax Effect | ||
Other comprehensive income, tax | (188) | (31) |
Net of Tax | ||
Other comprehensive income (loss), before reclassifications, net of tax | 313 | 0 |
Reclassification from AOCI, net of tax | 203 | 242 |
Total other comprehensive income, net of tax | $ 516 | $ 242 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | $ 528,520 | ||||
Adjusted balance | $ 525,364 | $ 488,625 | |||
Total other comprehensive income, net of tax | 10,663 | $ 11,238 | |||
Balance at end of period | 533,781 | ||||
Investment Securities | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (9,643) | ||||
Adjusted balance | $ 14,825 | ||||
Other comprehensive income before reclassifications | 10,147 | 10,996 | |||
Reclassification adjustments from AOCI | 0 | 0 | |||
Total other comprehensive income, net of tax | 10,147 | 10,996 | |||
Balance at end of period | 24,972 | (1,747) | |||
Defined Benefit Plans | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (6,450) | ||||
Adjusted balance | (6,416) | ||||
Other comprehensive income before reclassifications | 313 | 0 | |||
Reclassification adjustments from AOCI | 203 | 242 | |||
Total other comprehensive income, net of tax | 516 | 242 | |||
Balance at end of period | (5,900) | (6,208) | |||
Accum. Other Comp. Income (Loss) | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (16,093) | ||||
Adjusted balance | $ 8,409 | $ 8,409 | $ (19,193) | ||
Other comprehensive income before reclassifications | 10,460 | 10,996 | |||
Reclassification adjustments from AOCI | 203 | 242 | |||
Total other comprehensive income, net of tax | 10,663 | 11,238 | |||
Balance at end of period | $ 19,072 | (7,955) | |||
Impact of the adoption of new accounting standards | Investment Securities | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (3,100) | ||||
Impact of the adoption of new accounting standards | Defined Benefit Plans | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | 0 | ||||
Impact of the adoption of new accounting standards | Accum. Other Comp. Income (Loss) | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (3,100) | ||||
Adjusted balance at beginning of period | Investment Securities | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (12,743) | ||||
Adjusted balance at beginning of period | Defined Benefit Plans | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (6,450) | ||||
Adjusted balance at beginning of period | Accum. Other Comp. Income (Loss) | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | $ (19,193) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified out of AOCI) (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Income tax benefit (expense) | $ (2,821) | $ (5,118) |
Net income | 8,326 | 16,037 |
Amount Reclassified from AOCI | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Net income | (203) | (242) |
Investment Securities | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Reclassification from AOCI, net of tax | 0 | 0 |
Defined Benefit Plans | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Reclassification from AOCI, net of tax | (203) | (242) |
Defined Benefit Plans | Amount Reclassified from AOCI | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Amortization of defined benefit plan items, before tax | (277) | (273) |
Amortization of defined benefit plan items, tax | 74 | 31 |
Reclassification from AOCI, net of tax | (203) | (242) |
Amortization of net actuarial loss | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Amortization of defined benefit plan items, before tax | (268) | (263) |
Amortization of defined benefit plan items, tax | 72 | 29 |
Reclassification from AOCI, net of tax | (196) | (234) |
Amortization of net actuarial loss | Amount Reclassified from AOCI | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Amortization of defined benefit plan items, before tax | (268) | (263) |
Amortization of net transition obligation | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Amortization of defined benefit plan items, before tax | (5) | (5) |
Amortization of defined benefit plan items, tax | 1 | 1 |
Reclassification from AOCI, net of tax | (4) | (4) |
Amortization of net transition obligation | Amount Reclassified from AOCI | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Amortization of defined benefit plan items, before tax | (5) | (5) |
Amortization of prior service cost | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Amortization of defined benefit plan items, before tax | (4) | (5) |
Amortization of defined benefit plan items, tax | 1 | 1 |
Reclassification from AOCI, net of tax | (3) | (4) |
Amortization of prior service cost | Amount Reclassified from AOCI | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Amortization of defined benefit plan items, before tax | $ (4) | $ (5) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
SHARE-BASED COMPENSATION | ||
Net income | $ 8,326 | $ 16,037 |
Weighted average shares outstanding - basic | 28,126,400 | 28,758,310 |
Weighted average shares outstanding - diluted | 28,277,753 | 28,979,855 |
Basic earnings per common share (in dollars per share) | $ 0.30 | $ 0.56 |
Diluted earnings per common share (in dollars per share) | $ 0.29 | $ 0.55 |
Antidilutive securities excluded from the dilutive share calculation (in shares) | 0 | 0 |
Stock Option | ||
SHARE-BASED COMPENSATION | ||
Dilutive effect of share-based compensation arrangements | 151,353 | 221,545 |
FAIR VALUE OF FINANCIAL ASSET_3
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Loans, weighted average discount rate, percent | 4.63% | |
Time deposits, weighted average discount rate, percent | 0.52% | |
Financial assets | ||
Cash and due from banks | $ 81,972,000 | $ 78,418,000 |
Interest-bearing deposits in other banks | 11,021,000 | 24,554,000 |
Loans held for sale | 3,910,000 | 9,083,000 |
Accrued interest receivable | 16,851,000 | 16,500,000 |
Deposits: | ||
Noninterest-bearing deposits | 1,430,540,000 | 1,450,532,000 |
Time deposits | 993,741,000 | 1,026,453,000 |
Transfers of financial assets from Level 2 to Level 1 | 0 | |
Transfers of financial liabilities from Level 1 to Level 2 | 0 | |
Transfers of financial liabilities from Level 2 to Level 1 | 0 | |
Transfers of financial assets out of Level 3 | 0 | |
Transfers of financial liabilities out of Level 3 | 0 | |
Interest rate lock commitments | ||
Deposits: | ||
Derivatives, Notional Amount | 4,237,000 | 625,000 |
Forward sale commitments | ||
Deposits: | ||
Derivatives, Notional Amount | 8,118,000 | 8,968,000 |
Commitments to extend credit | ||
Deposits: | ||
Off-balance sheet financial instruments, Notional Amount | 1,186,476,000 | 1,089,135,000 |
Standby letters of credit and financial guarantees written | ||
Deposits: | ||
Off-balance sheet financial instruments, Notional Amount | 9,424,000 | 10,526,000 |
Risk participation agreement | ||
Deposits: | ||
Off-balance sheet financial instruments, Notional Amount | 28,800,000 | |
Carrying Amount | ||
Financial assets | ||
Cash and due from banks | 81,972,000 | 78,418,000 |
Interest-bearing deposits in other banks | 11,021,000 | 24,554,000 |
Investment securities | 1,185,025,000 | 1,128,110,000 |
Loans held for sale | 3,910,000 | 9,083,000 |
Net loans and leases | 4,452,353,000 | 4,401,569,000 |
Accrued interest receivable | 16,851,000 | 16,500,000 |
Deposits: | ||
Noninterest-bearing deposits | 1,430,540,000 | 1,450,532,000 |
Interest-bearing demand and savings deposits | 2,711,788,000 | 2,643,038,000 |
Time deposits | 993,741,000 | 1,026,453,000 |
Short-term debt | 222,000,000 | 150,000,000 |
Long-term debt | 101,547,000 | 101,547,000 |
Interest Payable | 4,132,000 | 4,288,000 |
Carrying Amount | Interest rate lock commitments | ||
Deposits: | ||
Derivative liabilities | 115,000 | 8,000 |
Carrying Amount | Commitments to extend credit | ||
Deposits: | ||
Off-balance sheet financial instruments | 1,414,000 | 1,230,000 |
Carrying Amount | Standby letters of credit and financial guarantees written | ||
Deposits: | ||
Off-balance sheet financial instruments | 141,000 | 158,000 |
Carrying Amount | Risk participation agreement | ||
Deposits: | ||
Off-balance sheet financial instruments | 32,000 | |
Estimated Fair Value | ||
Financial assets | ||
Cash and due from banks | 81,972,000 | 78,418,000 |
Interest-bearing deposits in other banks | 11,021,000 | 24,554,000 |
Investment securities | 1,185,025,000 | 1,128,110,000 |
Loans held for sale | 3,910,000 | 9,083,000 |
Net loans and leases | 4,204,383,000 | 4,392,477,000 |
Accrued interest receivable | 16,851,000 | 16,500,000 |
Deposits: | ||
Noninterest-bearing deposits | 1,430,540,000 | 1,450,532,000 |
Interest-bearing demand and savings deposits | 2,711,788,000 | 2,643,038,000 |
Time deposits | 996,284,000 | 1,023,362,000 |
Short-term debt | 222,000,000 | 150,000,000 |
Long-term debt | 91,032,000 | 97,827,000 |
Interest Payable | 4,132,000 | 4,288,000 |
Estimated Fair Value | Interest rate lock commitments | ||
Deposits: | ||
Derivative liabilities | 115,000 | 8,000 |
Estimated Fair Value | Commitments to extend credit | ||
Deposits: | ||
Off-balance sheet financial instruments | 1,414,000 | 1,230,000 |
Estimated Fair Value | Standby letters of credit and financial guarantees written | ||
Deposits: | ||
Off-balance sheet financial instruments | 141,000 | 158,000 |
Estimated Fair Value | Risk participation agreement | ||
Deposits: | ||
Off-balance sheet financial instruments | 32,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Cash and due from banks | 81,972,000 | 78,418,000 |
Interest-bearing deposits in other banks | 11,021,000 | 24,554,000 |
Investment securities | 1,002,000 | 1,127,000 |
Loans held for sale | 0 | 0 |
Net loans and leases | 0 | 0 |
Accrued interest receivable | 16,851,000 | 16,500,000 |
Deposits: | ||
Noninterest-bearing deposits | 1,430,540,000 | 1,450,532,000 |
Interest-bearing demand and savings deposits | 2,711,788,000 | 2,643,038,000 |
Time deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Interest Payable | 4,132,000 | 4,288,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments | ||
Deposits: | ||
Derivative liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commitments to extend credit | ||
Deposits: | ||
Off-balance sheet financial instruments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Standby letters of credit and financial guarantees written | ||
Deposits: | ||
Off-balance sheet financial instruments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Risk participation agreement | ||
Deposits: | ||
Off-balance sheet financial instruments | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Investment securities | 1,172,451,000 | 1,115,728,000 |
Loans held for sale | 3,910,000 | 9,083,000 |
Net loans and leases | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 |
Time deposits | 0 | 0 |
Short-term debt | 222,000,000 | 150,000,000 |
Long-term debt | 91,032,000 | 97,827,000 |
Interest Payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | ||
Deposits: | ||
Derivative liabilities | 115,000 | 8,000 |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | ||
Deposits: | ||
Off-balance sheet financial instruments | 1,414,000 | 1,230,000 |
Significant Other Observable Inputs (Level 2) | Standby letters of credit and financial guarantees written | ||
Deposits: | ||
Off-balance sheet financial instruments | 141,000 | 158,000 |
Significant Other Observable Inputs (Level 2) | Risk participation agreement | ||
Deposits: | ||
Off-balance sheet financial instruments | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 |
Investment securities | 11,572,000 | 11,255,000 |
Loans held for sale | 0 | 0 |
Net loans and leases | 4,204,383,000 | 4,392,477,000 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 |
Time deposits | 996,284,000 | 1,023,362,000 |
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Interest Payable | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | ||
Deposits: | ||
Derivative liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commitments to extend credit | ||
Deposits: | ||
Off-balance sheet financial instruments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Standby letters of credit and financial guarantees written | ||
Deposits: | ||
Off-balance sheet financial instruments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Risk participation agreement | ||
Deposits: | ||
Off-balance sheet financial instruments | 32,000 | |
Recurring basis | Carrying Amount | Forward sale commitments | ||
Deposits: | ||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (37,000) | (28,000) |
Recurring basis | Estimated Fair Value | Forward sale commitments | ||
Deposits: | ||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (37,000) | (28,000) |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward sale commitments | ||
Deposits: | ||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Forward sale commitments | ||
Deposits: | ||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (37,000) | (28,000) |
Recurring basis | Significant Unobservable Inputs (Level 3) | Forward sale commitments | ||
Deposits: | ||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL ASSET_4
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | $ 1,184,023 | $ 1,126,983 |
Equity securities, at fair value | 1,002 | 1,127 |
States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 134,210 | 122,018 |
Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 30,227 | 30,529 |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 37,506 | 40,381 |
Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 735,050 | 677,822 |
Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 80,319 | 81,225 |
Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 34,672 | 37,191 |
Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 132,039 | 137,817 |
Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,002 | 1,127 |
Recurring basis | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,184,023 | 1,126,983 |
Total | 1,185,103 | 1,128,090 |
Recurring basis | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 78 | (20) |
Recurring basis | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 134,210 | 122,018 |
Recurring basis | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 30,227 | 30,529 |
Recurring basis | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 37,506 | 40,381 |
Recurring basis | Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 735,050 | 677,822 |
Recurring basis | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 80,319 | 81,225 |
Recurring basis | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 34,672 | 37,191 |
Recurring basis | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 132,039 | 137,817 |
Recurring basis | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,002 | 1,127 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Total | 1,002 | 1,127 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,002 | 1,127 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,172,451 | 1,115,728 |
Total | 1,172,529 | 1,115,708 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 78 | (20) |
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 122,638 | 110,763 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 30,227 | 30,529 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 37,506 | 40,381 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 735,050 | 677,822 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 80,319 | 81,225 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 34,672 | 37,191 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 132,039 | 137,817 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 11,572 | 11,255 |
Total | 11,572 | 11,255 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 11,572 | 11,255 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL ASSET_5
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Change in Level 3 Assets and Liabilities) (Details 3) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)security | Mar. 31, 2019USD ($) | Dec. 31, 2019 | |
States and political subdivisions | |||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the beginning of the period | $ 11,255 | $ 11,169 | |
Principal payments received | (109) | (105) | |
Unrealized net gain included in other comprehensive income | 426 | 200 | |
Mortgage revenue bonds | |||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the end of the period | $ 11,572 | $ 11,264 | |
Additional disclosures | |||
Number of investment securities held | security | 4 | ||
Measurement Input, Discount Rate | Mortgage revenue bonds | Weighted average | |||
Fair Value Of Financial Assets And Liabilities | |||
Forecasted constant prepayment rate assumption (1) | 0.0325 | 0.0471 | 0.0408 |
FAIR VALUE OF FINANCIAL ASSET_6
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | $ 100 | $ 164 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | 100 | 164 |
Significant Unobservable Inputs (Level 3) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Mar. 27, 2020USD ($) | Apr. 30, 2020USD ($)segment | Apr. 16, 2020USD ($)segment | Mar. 31, 2020USD ($) |
Subsequent Event [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||
Debt Instrument, Term | 2 years | |||
Debt Instrument, Deferred Payment Term | 6 months | |||
Debt Instrument, Deferrals, Amount | $ 65 | |||
Increase In Loans Issued By Financial Institutions Through The SBA | $ 310,000 | |||
Debt Instrument, Guaranteed By SBA, Percent | 100.00% | |||
Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Issuance Costs, Percent | 1.00% | |||
Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Loans issued by financial institutions through the SBA | $ 349,000 | |||
Debt Issuance Costs, Percent | 5.00% | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Loans issued by financial institutions through the SBA | $ 66 | $ 475 | ||
Number Of Loans Issued By Financial Institutions Through The SBA | segment | 1,500 | 4,100 | ||
Debt Instrument, Deferrals, Amount | $ 453 |
Uncategorized Items - cpf-20200
Label | Element | Value | |
Additional Paid-in Capital [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 88,876,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 91,611,000 | |
Common Shares Outstanding [Member] | |||
Common Stock, Shares, Outstanding, Adjusted Balance | cpf_CommonStockSharesOutstandingAdjustedBalance | 28,289,257 | |
Common Stock, Shares, Outstanding, Adjusted Balance | cpf_CommonStockSharesOutstandingAdjustedBalance | 28,967,715 | |
Noncontrolling Interest [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 0 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 0 | |
Common Stock [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 470,660,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 447,602,000 | |
Retained Earnings [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (51,718,000) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (22,258,000) | |
Accounting Standards Update 2016-13 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,156,000) | [1] |
Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,156,000) | |
Accounting Standards Update 2017-12 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,100,000) | [2] |
Accounting Standards Update 2017-12 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,100,000) | [2] |
[1] | (1) Represents the impact of the adoption of Accounting Standards Update ("ASU") ASU 2016-13. See Note 2 to the consolidated financial statements for additional information. | ||
[2] | (2) Represents the impact of the adoption of ASU 2017-12. |