Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 08, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | HORIZON BANCORP INC /IN/ | |
Entity Central Index Key | 0000706129 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | HBNC | |
Entity Common Stock, Shares Outstanding | 45,052,747 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 86,131 | $ 58,492 |
Interest-earning time deposits | 15,987 | 15,744 |
Investment securities, available for sale | 687,142 | 600,348 |
Investment securities, held to maturity (fair value of $210,106 and $208,273) | 206,327 | 210,112 |
Loans held for sale | 1,979 | 1,038 |
Loans, net of allowance for loan losses of $17,821 and $17,820 | 3,603,236 | 2,995,512 |
Premises and equipment, net | 93,822 | 74,331 |
Federal Home Loan Bank stock | 22,447 | 18,073 |
Goodwill | 145,690 | 119,880 |
Other intangible assets | 31,174 | 10,390 |
Interest receivable | 17,423 | 14,239 |
Cash value of life insurance | 94,449 | 88,062 |
Other assets | 45,832 | 40,467 |
Total assets | 5,051,639 | 4,246,688 |
Liabilities | ||
Non-interest bearing | 811,768 | 642,129 |
Interest bearing | 3,076,255 | 2,497,247 |
Total deposits | 3,888,023 | 3,139,376 |
Borrowings | 457,788 | 550,384 |
Subordinated debentures | 55,310 | 37,837 |
Interest payable | 2,471 | 2,031 |
Other liabilities | 38,579 | 25,068 |
Total liabilities | 4,442,171 | 3,754,696 |
Commitments and contingent liabilities | ||
Stockholders' Equity | ||
Preferred stock, Authorized, 1,000,000 shares, Issued 0 shares | ||
Common stock, no par value, Authorized 99,000,000 shares (Restated - See Note 1) Issued 45,077,816 and 38,400,476 shares (Restated - See Note 1), Outstanding 45,052,747 and 38,375,407 shares (Restated - See Note 1) | ||
Additional paid-in capital | 378,963 | 276,101 |
Retained earnings | 230,327 | 224,035 |
Accumulated other comprehensive income (loss) | 178 | (8,144) |
Total stockholders' equity | 609,468 | 491,992 |
Total liabilities and stockholders' equity | $ 5,051,639 | $ 4,246,688 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities, held to maturity fair value | $ 210,106 | $ 208,273 |
Allowance for loan losses | $ 17,821 | $ 17,820 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | ||
Common stock, shares authorized | 99,000,000 | 99,000,000 |
Common stock, shares issued | 45,077,816 | 38,400,476 |
Common stock, shares outstanding | 45,052,747 | 38,375,407 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Income | ||
Loans receivable | $ 39,623 | $ 35,131 |
Investment securities | ||
Taxable | 3,122 | 2,430 |
Tax exempt | 2,628 | 1,865 |
Total interest income | 45,373 | 39,426 |
Interest Expense | ||
Deposits | 6,876 | 2,871 |
Borrowed funds | 3,621 | 2,572 |
Subordinated debentures | 596 | 572 |
Total interest expense | 11,093 | 6,015 |
Net Interest Income | 34,280 | 33,411 |
Provision for loan losses | 364 | 567 |
Net Interest Income after Provision for Loan Losses | 33,916 | 32,844 |
Non-interest Income | ||
Service charges on deposit accounts | 1,877 | 1,888 |
Wire transfer fees | 118 | 150 |
Interchange fees | 1,361 | 1,328 |
Fiduciary activities | 2,089 | 1,925 |
Gains on sale of investment securities (includes $15 and $11 for the three months ended March 31, 2019 and 2018, respectively, related to accumulated other comprehensive earnings | 15 | 11 |
Gain on sale of mortgage loans | 1,309 | 1,423 |
Mortgage servicing income net of impairment | 606 | 349 |
Increase in cash value of bank owned life insurance | 513 | 435 |
Other income | 824 | 809 |
Total non-interest income | 8,712 | 8,318 |
Non-interest Expense | ||
Salaries and employee benefits | 14,466 | 14,373 |
Net occupancy expenses | 2,772 | 2,966 |
Data processing | 1,966 | 1,696 |
Professional fees | 493 | 501 |
Outside services and consultants | 3,530 | 1,264 |
Loan expense | 1,949 | 1,257 |
FDIC insurance expense | 160 | 310 |
Other losses | 104 | 146 |
Other expense | 4,298 | 3,324 |
Total non-interest expense | 29,738 | 25,837 |
Income Before Income Taxes | 12,890 | 15,325 |
Income tax expense (includes $3 and $2 for the three months ended March 31, 2019 and 2018, respectively, related to income tax expense from reclassification items) | 2,074 | 2,521 |
Net Income | $ 10,816 | $ 12,804 |
Basic Earnings Per Share (Restated - See Note 1) | $ 0.28 | $ 0.33 |
Diluted Earnings Per Share (Restated - See Note 1) | $ 0.28 | $ 0.33 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Accumulated other comprehensive earnings reclassifications | $ 15 | $ 11 |
Income tax expense from reclassification | $ 3 | $ 2 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 10,816 | $ 12,804 |
Change in fair value of derivative instruments: | ||
Change in fair value of derivative instruments for the period | (1,106) | 759 |
Income tax effect | 232 | (159) |
Changes from derivative instruments | (874) | 600 |
Change in securities: | ||
Unrealized appreciation (depreciation) for the period on AFS securities | 11,694 | (8,114) |
Amortization from transfer of securities from available for sale to held to maturity securities | (38) | (52) |
Reclassification adjustment for securities (gains) losses realized in income | (15) | (11) |
Income tax effect | (2,445) | 1,716 |
Unrealized gains (losses) on securities | 9,196 | (6,461) |
Other Comprehensive Income (Loss), Net of Tax | 8,322 | (5,861) |
Comprehensive Income | $ 19,138 | $ 6,943 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balances at Dec. 31, 2017 | $ 457,078 | $ 275,059 | $ 185,570 | $ (3,551) |
Net income | 12,804 | 12,804 | ||
Other comprehensive income (loss), net of tax | (5,861) | (5,861) | ||
Amortization of unearned compensation | 61 | 61 | ||
Exercise of stock options | 100 | 100 | ||
Stock option expense | 82 | 82 | ||
Reclassification of tax adjustment on accumulated other comprehensive loss | 766 | (766) | ||
Cash dividends on common stock ($0.10 per share) | (3,848) | (3,848) | ||
Ending Balances at Mar. 31, 2018 | 460,416 | 275,302 | 195,292 | (10,178) |
Beginning Balances at Dec. 31, 2018 | 491,992 | 276,101 | 224,035 | (8,144) |
Net income | 10,816 | 10,816 | ||
Other comprehensive income (loss), net of tax | 8,322 | 8,322 | ||
Amortization of unearned compensation | 91 | 91 | ||
Exercise of stock options | 117 | 117 | ||
Stock option expense | 57 | 57 | ||
Stock issued stock plans | (125) | (125) | ||
Stock issued in Salin acquisition | 102,722 | 102,722 | ||
Cash dividends on common stock ($0.10 per share) | (4,524) | (4,524) | ||
Ending Balances at Mar. 31, 2019 | $ 609,468 | $ 378,963 | $ 230,327 | $ 178 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash dividends on common stock, per share | $ 0.10 | $ 0.10 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net income | $ 10,816 | $ 12,804 |
Items not requiring (providing) cash | ||
Provision for loan losses | 364 | 567 |
Depreciation and amortization | 1,549 | 1,814 |
Share based compensation | 57 | 82 |
Mortgage servicing rights, net impairment | (14) | 6 |
Premium amortization on securities, net | 1,285 | 1,476 |
Loss (gain) on sale of investment securities | (15) | (11) |
Gain on sale of mortgage loans | (1,309) | (1,423) |
Proceeds from sales of loans | 30,801 | 43,307 |
Loans originated for sale | (30,433) | (35,770) |
Change in cash value life insurance | (513) | (435) |
(Gain)/loss on sale of other real estate owned | 26 | |
Net change in: | ||
Interest receivable | (696) | 4,200 |
Interest payable | (386) | 330 |
Other assets | 97,788 | 6,595 |
Other liabilities | 2,246 | (3,556) |
Net cash provided by operating activities | 111,566 | 29,986 |
Investing Activities | ||
Purchases of securities available for sale | (63,574) | (36,389) |
Proceeds from sales, maturities, calls and principal repayments of securities available for sale | 42,715 | 30,415 |
Purchases of securities held to maturity | (8,703) | |
Proceeds from maturities of securities held to maturity | 2,927 | 721 |
Net change in interest-earning time deposits | (243) | (289) |
Change in Federal Reserve and FHLB stock | (803) | |
Net change in loans | (37,028) | (33,312) |
Proceeds on the sale of OREO and repossessed assets | 487 | 392 |
Change in premises and equipment, net | 3,260 | (1,074) |
Net cash used in investing activities | 76,486 | (48,239) |
Net change in: | ||
Deposits | 7,180 | 52,673 |
Borrowings | (163,061) | (43,811) |
Proceeds from issuance of stock | (8) | 100 |
Dividends paid on common stock | (4,524) | (3,848) |
Net cash provided by (used in) financing activities | (160,413) | 5,114 |
Net Change in Cash and Cash Equivalents | 27,639 | (13,139) |
Cash and Cash Equivalents at Beginning of Year | 58,492 | 59,980 |
Cash and Cash Equivalents at End of Year | 86,131 | 46,841 |
Additional Supplemental Information | ||
Interest paid | 10,653 | 5,685 |
Transfer of loans to other real estate | 759 | $ 266 |
Right-of-use assets exchanged for lease obligations | 3,411 | |
Salin Bank and Trust Company [Member] | ||
Investing Activities | ||
Net cash received in acquisition | $ 128,745 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 1 - Accounting Policies The accompanying unaudited condensed consolidated financial statements include the accounts of Horizon Bancorp, Inc. (“Horizon” or the “Company”) and its wholly-owned subsidiaries, including Horizon Bank (“Horizon Bank” or the “Bank”). Horizon Bank (formerly known as “Horizon Bank, N.A.”) was a national association until its conversion to an Indiana commercial bank effective June 23, 2017. All inter-company balances and transactions have been eliminated. The results of operations for the periods ended March 31, 2019 and March 31, 2018 are not necessarily indicative of the operating results for the full year of 2019 or 2018. The accompanying unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of Horizon’s management, necessary to fairly present the financial position, results of operations and cash flows of Horizon for the periods presented. Those adjustments consist only of normal recurring adjustments. Certain information and note disclosures normally included in Horizon’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Horizon’s Annual Report on Form 10-K for 2018 filed with the Securities and Exchange Commission on February 28, 2019. The condensed consolidated balance sheet of Horizon as of December 31, 2018 has been derived from the audited balance sheet as of that date. On May 15, 2018, the Board of Directors of the Company approved a three-for-two stock split of the Company’s authorized common stock, no par value. All share and per share amounts in the condensed consolidated financial statements and notes thereto have been retroactively adjusted, where necessary, to reflect this three-for-two stock split. The effect of the three-for-two stock split on the outstanding common shares is that shareholders of record as of the close of business on May 31, 2018, the record date, received an additional half share for each share of common stock held, with shareholders receiving cash in lieu of any fractional shares. The additional shares issued in the stock split were payable and issued on June 15, 2018, and the common shares began trading on a split-adjusted basis on June 19, 2018. Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted-average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The following table shows computation of basic and diluted earnings per share. Three Months Ended March 31 2019 2018 Basic earnings per share Net income $ 10,816 $ 12,804 Weighted average common shares outstanding (1) 38,822,543 38,306,395 Basic earnings per share $ 0.28 $ 0.33 Diluted earnings per share Net income available to common shareholders $ 10,816 $ 12,804 Weighted average common shares outstanding (1) 38,822,543 38,306,395 Effect of dilutive securities: Restricted stock — 35,356 Stock options 83,629 127,059 Weighted average common shares outstanding 38,906,172 38,468,810 $ 0.28 $ 0.33 (1) Adjusted for 3:2 stock split on June 15, 2018 There were 350,618 and 44,053 shares for the three months ended March 31, 2019 and 2018, respectively, which were not included in the computation of diluted earnings per share because they were non-dilutive. Horizon has share-based employee compensation plans, which are described in the notes to the financial statements included in the December 31, 2018 Annual Report on Form 10-K. Adoption of New Accounting Standards Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities The FASB has issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. FASB Accounting Standards Updates No. 2016-02, Leases (Topic 842) The FASB has issued Accounting Standards Update (ASU) No. 2016-02, Leases. Revenue Recognition Accounting Standards Codification 606, “ Revenue from Contracts with Customers” (ASC 606) provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance enumerates five steps that entities should follow in achieving this core principle. Revenue generated from financial instruments, including loans and investment securities, are not included in the scope of ASC 606. The adoption of ASC 606 did not result in a change to the accounting for any of the Company’s revenue streams that are within the scope of the amendments. Revenue-generating activities that are within the scope of ASC 606 and that are presented as non-interest income in the Company’s consolidated statements of income include: • Service charges and fees on deposit accounts – these include general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer or overdraft activities. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. • Fiduciary activities – this includes periodic fees due from trust and wealth management customers for managing the customers’ financial assets. Fees are charged based on a standard agreement and are recognized as they are earned. Reclassifications Certain reclassifications have been made to the 2018 condensed consolidated financial statements to be comparable to 2019. These reclassifications had no effect on net income. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2 – Acquisitions Salin Bancshares, Inc. On March 26, 2019, Horizon completed the acquisition of Salin Bancshares, Inc. (“Salin”), an Indiana corporation, and Horizon Bank’s acquisition of Salin Bank and Trust Company (“Salin Bank”), an Indiana commercial bank and wholly-owned subsidiary of Salin, through mergers effective March 26, 2019. Under the terms of the Merger Agreement, shareholders of Salin received 23,907.5 87,417.17 upon the March 25, 2019 closing price of $15.65 per share of Horizon common stock immediately prior to the effectiveness of the merger the transaction has an implied valuation of approximately $126.7 million. The Company incurred approximately $4.6 million in costs related to the acquisition. These expenses are classified in the non-interest expense section of the income statement and are primarily located in the data processing, professional fees, outside services and consultants and other expense line items. As a result of the acquisition, the Company was able to increase its deposit base and reduce transaction costs. The Company also expects to reduce costs through economies of scale. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions that are subject to change, the preliminary purchase price for the Salin acquisition is detailed in the following table. Final estimates of fair value on the date of acquisition have not been received yet. Prior to the end of the one year measurement period for finalizing the purchase price allocation, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation prospectively. If any adjustments are made to the preliminary assumptions (provisional amounts), disclosures will be made in the notes to the financial statements of the amounts recorded in the current period earnings by line item that have been recorded in previous reporting periods if the adjustments to the provisional amounts had been recognized as of the acquisition date. Assets Cash and due from banks $ 152,745 Investment securities, available for sale 54,706 Loans Commercial 350,916 Residential mortgage 136,089 Consumer 84,814 Total loans 571,819 Premises and equipment, net 23,882 FRB and FHLB stock 3,571 Goodwill 25,810 Core deposit intangible 21,111 Interest receivable 2,488 Other assets 107,611 Total assets purchased $ 963,743 Common shares issued $ 102,722 Cash paid 24,000 Total purchase price $ 126,722 Liabilities Deposits Non-interest bearing $ 188,744 NOW accounts 207,567 Savings and money market 274,504 Certificates of deposit 70,652 Total deposits 741,467 Borrowings 70,495 Subordinated debentures 17,443 Interest payable 826 Other liabilities 6,790 Total liabilities assumed $ 837,021 Of the total purchase price of $126.7 million, $21.1 million has been allocated to core deposit intangible. Additionally, $25.8 million has been allocated to goodwill and none of the purchase price is deductible. The core deposit intangible is being amortized over 10 years on a straight line basis. The Company acquired various loans in the acquisition that had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310- 30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current assumptions, such as default rates, severity and prepayment speeds. The following table details an estimate of the acquired loans that are accounted for in accordance with ASC 310-30 as of March 26, 2019. Final valuation estimates have not yet been determined for acquired loans as of March 31, 2019. If information becomes available which would indicate adjustment to the purchase price allocation, such adjustments would be made prospectively. Contractually required principal and interest at acquisition $ 22,209 Contractual cash flows not expected to be collected (nonaccretable differences) 8,632 Expected cash flows at acquisition 13,577 Interest component of expected cash flows (accretable discount) 1,333 Fair value of acquired loans accounted for under ASC 310-30 $ 12,244 Estimates of certain loans, those for which specific credit-related deterioration, since origination, are recorded at fair value, reflecting the present value of the amounts expected to be collected. Income recognition of these loans is based on reasonable expectation about the timing and amount of cash flows to be collected. The results of operations of Salin have been included in the Company’s consolidated financial statements since the acquisition date. The following schedule includes pro-forma results for the three months ended March 31, 2019 and 2018 as if the Salin acquisition had occurred as of the beginning of the comparable prior reporting periods. Three Months Ended March 31 March 31 2019 2018 Summary of Operations: Net Interest Income $ 42,182 $ 40,619 Provision for Loan Losses 664 1,167 Net Interest Income after Provision for Loan Losses 41,518 39,452 Non-interest Income 9,126 9,999 Non-interest Expense 42,152 33,169 Income before Income Taxes 8,492 16,282 Income Tax Expense 2,017 2,465 Net Income 6,475 13,817 Net Income Available to Common Shareholders $ 6,475 $ 13,817 Basic Earnings per Share $ 0.17 $ 0.36 Diluted Earnings per Share $ 0.17 $ 0.36 The pro-forma information includes adjustments for interest income on loans, amortization of intangibles arising from the transaction, interest expense on deposits acquired, premises expense for the banking centers acquired and the related income tax effects. The pro-forma financial information is presented for information purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time, nor is it intended to be a projection of future results. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3 – Securities The fair value of securities is as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale U.S. Treasury and federal agencies $ 14,087 $ — $ (92 ) $ 13,995 State and municipal 245,577 5,266 (1,083 ) 249,760 Federal agency collateralized mortgage obligations 212,829 1,774 (1,560 ) 213,043 Federal agency mortgage-backed pools 193,932 294 (1,961 ) 192,265 Corporate notes 17,598 481 — 18,079 Total available for sale investment securities $ 684,023 $ 7,815 $ (4,696 ) $ 687,142 Held to maturity State and municipal $ 187,847 $ 4,053 $ (330 ) $ 191,570 Federal agency collateralized mortgage obligations 5,019 8 (48 ) 4,979 Federal agency mortgage-backed pools 13,461 152 (56 ) 13,557 Total held to maturity investment securities $ 206,327 $ 4,213 $ (434 ) $ 210,106 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale U.S. Treasury and federal agencies $ 16,815 $ 1 $ (208 ) $ 16,608 State and municipal 210,386 1,495 (2,578 ) 209,303 Federal agency collateralized mortgage obligations 187,563 625 (3,185 ) 185,003 Federal agency mortgage-backed pools 183,479 80 (4,823 ) 178,736 Corporate notes 10,666 107 (75 ) 10,698 Total available for sale investment securities $ 608,909 $ 2,308 $ (10,869 ) $ 600,348 Held to maturity State and municipal $ 191,269 $ 1,773 $ (3,366 ) $ 189,676 Federal agency collateralized mortgage obligations 5,144 6 (120 ) 5,030 Federal agency mortgage-backed pools 13,699 74 (206 ) 13,567 Total held to maturity investment securities $ 210,112 $ 1,853 $ (3,692 ) $ 208,273 Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information, and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. While these securities are held in the available for sale portfolio and held-to-maturity, Horizon intends, and has the ability, to hold them until the earlier of a recovery in fair value or maturity. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. At March 31, 2019, no individual investment security had an unrealized loss that was determined to be other-than-temporary. The unrealized losses on the Company’s investments in securities of state and municipal governmental agencies, U.S. Treasury and federal agencies, federal agency collateralized mortgage obligations, and federal agency mortgage-backed pools were caused by interest rate volatility and not a decline in credit quality. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company expects to recover the amortized cost basis over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at March 31, 2019. The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2019 and December 31, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Within one year $ 29,589 $ 29,552 $ 20,532 $ 20,448 One to five years 52,250 51,759 42,476 41,705 Five to ten years 100,190 102,334 107,839 107,107 After ten years 95,233 98,189 67,020 67,349 277,262 281,834 237,867 236,609 Federal agency collateralized mortgage obligations 212,829 213,043 187,563 185,003 Federal agency mortgage-backed pools 193,932 192,265 183,479 178,736 Private labeled mortgage-backed pools — — — — Total available for sale investment securities $ 684,023 $ 687,142 $ 608,909 $ 600,348 Held to maturity Within one year $ 150 $ 150 $ 70 $ 70 One to five years 50,317 51,152 48,732 49,324 Five to ten years 99,413 101,178 101,809 101,533 After ten years 37,967 37,207 40,658 38,749 187,847 189,687 191,269 189,676 Federal agency collateralized mortgage obligations 5,019 4,979 5,144 5,030 Federal agency mortgage-backed pools 13,461 13,557 13,699 13,567 Total held to maturity investment securities $ 206,327 $ 208,223 $ 210,112 $ 208,273 The following table shows the gross unrealized losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. March 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investment Securities U.S. Treasury and federal agencies $ — $ — $ 9,823 $ (92 ) $ 9,823 $ (92 ) State and municipal 65,265 (697 ) 44,783 (2,500 ) 110,048 (3,197 ) Federal agency collateralized mortgage obligations 431 (1 ) 100,886 (1,607 ) 101,317 (1,608 ) Federal agency mortgage-backed pools — — 152,582 (2,017 ) 152,582 (2,017 ) Corporate notes — — — — — — Total temporarily impaired securities $ 65,696 $ (698 ) $ 308,074 $ (6,216 ) $ 373,770 $ (6,914 ) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investment Securities U.S. Treasury and federal agencies $ — $ — $ 9,707 $ (208 ) $ 9,707 $ (208 ) State and municipal 75,163 (1,628 ) 106,335 (4,316 ) 181,498 (5,944 ) Federal agency collateralized mortgage obligations 6,450 (25 ) 106,257 (3,280 ) 112,707 (3,305 ) Federal agency mortgage-backed pools 5,739 (39 ) 175,865 (4,990 ) 181,604 (5,029 ) Corporate notes 5,263 (75 ) — — 5,263 (75 ) Total temporarily impaired securities $ 92,615 $ (1,767 ) $ 398,164 $ (12,794 ) $ 490,779 $ (14,561 ) Information regarding security proceeds, gross gains and gross losses are presented below. Three Months Ended March 31 2019 2018 Sales of securities available for sale Proceeds $ 17,587 $ 9,836 Gross gains 59 37 Gross losses (44 ) (26 ) |
Loans
Loans | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans | Note 4 – Loans March 31 2019 December 31 2018 Commercial Working capital and equipment $ 924,435 $ 804,083 Real estate, including agriculture 1,076,077 834,037 Tax exempt 60,062 48,975 Other 29,005 34,495 Total 2,089,579 1,721,590 Real estate 1-4 family 808,401 659,754 Other 11,423 8,387 Total 819,824 668,141 Consumer Auto 331,572 327,413 Recreation 14,262 13,975 Real estate/home improvement 40,998 39,587 Home equity 245,940 163,209 Unsecured 4,124 4,043 Other 2,814 1,254 Total 639,710 549,481 Mortgage warehouse 71,944 74,120 Total loans 3,621,057 3,013,332 Allowance for loan losses (17,821 ) (17,820 ) Loans, net $ 3,603,236 $ 2,995,512 Commercial Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves larger loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets, the general economy or fluctuations in interest rates. The properties securing the Company’s commercial real estate portfolio are diverse in terms of property type, and are monitored for concentrations of credit. Management monitors and evaluates commercial real estate loans based on collateral, cash flow and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Real Estate and Consumer With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Mortgage Warehousing Horizon’s mortgage warehouse lending has specific mortgage companies as customers of Horizon Bank. Individual mortgage loans originated by these mortgage companies are funded as a secured borrowing with a pledge of collateral under Horizon’s agreement with the mortgage company. Each mortgage loan funded by Horizon undergoes an underwriting review by Horizon to the end investor guidelines and is assigned to Horizon until the loan is sold to the secondary market by the mortgage company. In addition, Horizon takes possession of each original note and forwards such note to the end investor once the mortgage company has sold the loan. At the time a loan is transferred to the secondary market, the mortgage company reacquires the loan under its option within the agreement. Due to the reacquire feature contained in the agreement, the transaction does not qualify as a sale and therefore is accounted for as a secured borrowing with a pledge of collateral pursuant to the agreement with the mortgage company. When the individual loan is sold to the end investor by the mortgage company, the proceeds from the sale of the loan are received by Horizon and used to pay off the loan balance with Horizon along with any accrued interest and any related fees. The remaining balance from the sale is forwarded to the mortgage company. These individual loans typically are sold by the mortgage company within 30 days and are seldom held more than 90 days. Interest income is accrued during this period and collected at the time each loan is sold. Fee income for each loan sold is collected when the loan is sold, and no costs are deferred due to the term between each loan funding and related payoff, which is typically less than 30 days. Based on the agreements with each mortgage company, at any time a mortgage company can reacquire from Horizon its outstanding loan balance on an individual mortgage and regain possession of the original note. Horizon also has the option to request that the mortgage company reacquire an individual mortgage. Should this occur, Horizon would return the original note and reassign the assignment of the mortgage to the mortgage company. Also, in the event that the end investor would not be able to honor the purchase commitment and the mortgage company would not be able to reacquire its loan on an individual mortgage, Horizon would be able to exercise its rights under the agreement. The following table shows the recorded investment of individual loan categories. March 31, 2019 Loan Balance Interest Due Deferred Costs/(Fees) Recorded Investment Owner occupied real estate $ 676,517 $ 975 $ (1,687 ) $ 675,805 Non-owner occupied real estate 833,803 1,645 (1,666 ) 833,782 Residential spec homes 10,221 27 (3 ) 10,245 Development & spec land 75,079 249 (16 ) 75,312 Commercial and industrial 497,624 4,291 (293 ) 501,622 Total commercial 2,093,244 7,187 (3,665 ) 2,096,766 Residential mortgage 797,174 2,346 (1,943 ) 797,577 Residential construction 24,593 43 — 24,636 Mortgage warehouse 71,944 480 — 72,424 Total real estate 893,711 2,869 (1,943 ) 894,637 Direct installment 37,417 135 560 38,112 Indirect installment 317,629 750 — 318,379 Home equity 282,160 1,504 1,944 285,608 Total consumer 637,206 2,389 2,504 642,099 Total loans 3,624,161 12,445 (3,104 ) 3,633,502 Allowance for loan losses (17,821 ) — — (17,821 ) Net loans $ 3,606,340 $ 12,445 $ (3,104 ) $ 3,615,681 December 31, 2018 Loan Balance Interest Due Deferred Costs/(Fees) Recorded Investment Owner occupied real estate $ 561,463 $ 1,240 $ (1,629 ) $ 561,074 Non-owner occupied real estate 717,814 1,063 (1,839 ) 717,038 Residential spec homes 5,199 13 (2 ) 5,210 Development & spec land 46,547 131 (12 ) 46,666 Commercial and industrial 394,346 3,149 (297 ) 397,198 Total commercial 1,725,369 5,596 (3,779 ) 1,727,186 Residential mortgage 646,136 1,861 (2,025 ) 645,972 Residential construction 24,030 42 — 24,072 Mortgage warehouse 74,120 480 — 74,600 Total real estate 744,286 2,383 (2,025 ) 744,644 Direct installment 38,173 103 566 38,842 Indirect installment 314,177 738 — 314,915 Home equity 194,766 973 1,799 197,538 Total consumer 547,116 1,814 2,365 551,295 Total loans 3,016,771 9,793 (3,439 ) 3,023,125 Allowance for loan losses (17,820 ) — — (17,820 ) Net loans $ 2,998,951 $ 9,793 $ (3,439 ) $ 3,005,305 |
Accounting for Certain Loans Ac
Accounting for Certain Loans Acquired in a Transfer | 3 Months Ended |
Mar. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Accounting for Certain Loans Acquired in a Transfer | Note 5 – Accounting for Certain Loans Acquired in a Transfer The Company acquired loans in acquisitions and the transferred loans had evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310- 30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds. The carrying amounts of those loans included in the balance sheet amounts of loans receivable are as follows: March 31, 2019 Commercial Real Estate Consumer Outstanding Balance Allowance for Loan Losses Carrying Amount Heartland $ 229 $ 164 $ — $ 393 $ — $ 393 Summit 220 535 — 755 — 755 Peoples 260 44 — 304 — 304 Kosciusko 712 163 — 875 296 579 LaPorte 708 836 26 1,570 — 1,570 Lafayette 2,204 — — 2,204 — 2,204 Wolverine 5,736 — — 5,736 — 5,736 Salin 10,329 1,986 1,262 13,577 — 13,577 Total $ 20,398 $ 3,728 $ 1,288 $ 25,414 $ 296 $ 25,118 December 31, 2018 Commercial Real Estate Consumer Outstanding Balance Allowance for Loan Losses Carrying Amount Heartland $ 232 $ 175 $ — $ 407 $ — $ 407 Summit 323 555 — 878 — 878 Peoples 270 58 — 328 — 328 Kosciusko 746 155 — 901 — 901 LaPorte 753 947 27 1,727 60 1,667 Lafayette 3,080 — — 3,080 — 3,080 Wolverine 7,841 — — 7,841 — 7,841 Total $ 13,245 $ 1,890 $ 27 $ 15,162 $ 60 $ 15,102 Accretable yield, or income expected to be collected for the three months ended March 31, is as follows: Three Months Ended March 31, 2019 Beginning balance Additions Accretion Reclassification from nonaccretable difference Disposals Ending balance Heartland $ 174 $ — $ (8 ) $ — $ — $ 166 Summit 42 — (3 ) — (11 ) 28 Kosciusko 300 — (17 ) — — 283 LaPorte 829 — (29 ) — — 800 Lafayette 609 — (35 ) — (171 ) 403 Wolverine 698 — (123 ) — (8 ) 567 Salin — 3,368 — — — 3,368 Total $ 2,652 $ 3,368 $ (215 ) $ — $ (190 ) $ 5,615 Three Months Ended March 31, 2018 Beginning balance Additions Accretion Reclassification from nonaccretable difference Disposals Ending balance Heartland $ 452 $ — $ (59 ) $ — $ — $ 393 Summit 147 — (18 ) — (2 ) 127 Kosciusko 386 — (20 ) — — 366 LaPorte 980 — (40 ) — (7 ) 933 Lafayette 933 — (118 ) — (2 ) 813 Wolverine 2,267 — (387 ) — (42 ) 1,838 Total $ 5,165 $ — $ (642 ) $ — $ (53 ) $ 4,470 During the three months ended March 31, 2019 and 2018 the Company increased the allowance for loan losses on purchased loans by a charge to the income statement of $296,000 and $0, respectively. |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Note 6 – Allowance for Loan Losses The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior one to five years. Management believes using the highest of the one, two or five-year historical loss experience is an appropriate methodology in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. The actual allowance for loan loss activity is provided below. Three Months Ended March 31 2019 2018 (Unaudited) (Unaudited) Balance at beginning of the period $ 17,820 $ 16,394 Loans charged-off: Commercial Owner occupied real estate 1 13 Non-owner occupied real estate 64 — Residential spec homes — — Development & spec land — — Commercial and industrial 12 — Total commercial 77 13 Real estate Residential mortgage — 12 Residential construction — — Mortgage warehouse — — Total real estate — 12 Consumer Direct installment 28 55 Indirect installment 540 505 Home equity 16 131 Total consumer 584 691 Total loans charged-off 661 716 Recoveries of loans previously charged-off: Commercial Owner occupied real estate — 12 Non-owner occupied real estate 6 5 Residential spec homes 2 2 Development & spec land — — Commercial and industrial 8 32 Total commercial 16 51 Real estate Residential mortgage 27 6 Residential construction — — Mortgage warehouse — — Total real estate 27 6 Consumer Direct installment 11 11 Indirect installment 201 139 Home equity 43 22 Total consumer 255 172 Total loan recoveries 298 229 Net loans charged-off 363 487 Provision charged to operating expense Commercial 1,122 (1,291 ) Real estate (107 ) (252 ) Consumer (651 ) 2,110 Total provision charged to operating expense 364 567 Balance at the end of the period $ 17,821 $ 16,474 Certain loans are individually evaluated for impairment, and the Company’s general practice is to proactively charge down impaired loans to the fair value of the underlying collateral, which is the appraised value less estimated selling costs. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down or specific allocation of 1- 4 family first and junior lien mortgages to the net realizable value less costs to sell when the value is known but no later than when a loan is 180 days past due. Pursuant to such guidelines, the Company also charges-off unsecured open-end loans when the loan is contractually 90 days past due, and charges down to the net realizable value other secured loans when they are contractually 90 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection in full will occur regardless of delinquency status, are not charged off. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment analysis: March 31, 2019 Commercial Real Estate Mortgage Warehousing Consumer Total Allowance For Loan Losses Ending allowance balance attributable to loans: Individually evaluated for impairment $ 915 $ — $ — $ — $ 915 Collectively evaluated for impairment 10,641 1,588 1,014 3,663 16,906 Loans acquired with deteriorated credit quality — — — — — Total ending allowance balance $ 11,556 $ 1,588 $ 1,014 $ 3,663 $ 17,821 Loans: Individually evaluated for impairment $ 6,233 $ — $ — $ — $ 6,233 Collectively evaluated for impairment 2,087,011 821,767 71,944 637,206 3,617,928 Loans acquired with deteriorated credit quality — — — — — Total ending loans balance $ 2,093,244 $ 821,767 $ 71,944 $ 637,206 $ 3,624,161 December 31, 2018 Commercial Real Estate Mortgage Warehousing Consumer Total Allowance For Loan Losses Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,035 $ — $ — $ — $ 1,035 Collectively evaluated for impairment 9,460 1,676 1,006 4,643 16,785 Loans acquired with deteriorated credit quality — — — — — Total ending allowance balance $ 10,495 $ 1,676 $ 1,006 $ 4,643 $ 17,820 Loans: Individually evaluated for impairment $ 6,708 $ — $ — $ — $ 6,708 Collectively evaluated for impairment 1,718,661 670,166 74,120 547,116 3,010,063 Loans acquired with deteriorated credit quality — — — — — Total ending loans balance $ 1,725,369 $ 670,166 $ 74,120 $ 547,116 $ 3,016,771 |
Non-performing Loans and Impair
Non-performing Loans and Impaired Loans | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Non-performing Loans and Impaired Loans | Note 7 – Non-performing Loans and Impaired Loans The following table presents the non-accrual, loans past due over 90 days still on accrual, and troubled debt restructured (“TDRs”) by class of loans: March 31, 2019 Non-accrual Loans Past Due Over 90 Days Still Accruing Non-peforming TDRs Performing TDRs Total Non-performing Loans Commercial Owner occupied real estate $ 3,372 $ — $ 389 $ 139 $ 3,900 Non-owner occupied real estate 3,041 — 404 314 3,759 Residential spec homes 261 — — — 261 Development & spec land 177 — — — 177 Commercial and industrial 1,653 — — — 1,653 Total commercial 8,504 — 793 453 9,750 Real estate Residential mortgage 3,691 140 416 1,748 5,995 Residential construction — — — — — Mortgage warehouse — — — — — Total real estate 3,691 140 416 1,748 5,995 Consumer Direct installment 55 17 — — 72 Indirect installment 986 30 — — 1,016 Home equity 2,077 5 140 331 2,553 Total consumer 3,118 52 140 331 3,641 Total $ 15,313 $ 192 $ 1,349 $ 2,532 $ 19,386 December 31, 2018 Non-accrual Loans Past Due Over 90 Days Still Accruing Non-peforming TDRs Performing TDRs Total Non-performing Loans Commercial Owner occupied real estate $ 3,413 $ — $ — $ 109 $ 3,522 Non-owner occupied real estate 554 — 492 — 1,046 Residential spec homes — — — — — Development & spec land 68 — — — 68 Commercial and industrial 2,059 208 — — 2,267 Total commercial 6,094 208 492 109 6,903 Real estate Residential mortgage 2,846 180 423 1,558 5,007 Residential construction — — — — — Mortgage warehouse — — — — — Total real estate 2,846 180 423 1,558 5,007 Consumer Direct installment 35 — — — 35 Indirect installment 916 173 — — 1,089 Home equity 1,657 7 142 335 2,141 Total consumer 2,608 180 142 335 3,265 Total $ 11,548 $ 568 $ 1,057 $ 2,002 $ 15,175 Included in the $19.4 million of non-accrual loans and the $1.3 million of non-performing TDRs at March 31, 2019 were $3.1 million and $629,000, respectively, of loans acquired for which accretable yield was recognized. From time to time, the Bank obtains information that may lead management to believe that the collection of payments may be doubtful on a particular loan. In recognition of this, it is management’s policy to convert the loan from an “earning asset” to a non-accruing loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Further, it is management’s policy to generally place a loan on a non-accrual status when the payment is delinquent in excess of 90 days or the loan has had the accrual of interest discontinued by management. The officer responsible for the loan and the Chief Commercial Banking Officer and/or the Chief Operations Officer must review all loans placed on non-accrual status. Subsequent payments on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Non-accrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal in accordance with the loan terms. The Company requires a period of satisfactory performance of not less than six months before returning a non-accrual loan to accrual status. A loan becomes impaired when, based on current information, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is classified as impaired, the degree of impairment must be recognized by estimating future cash flows from the debtor. The present value of these cash flows is computed at a discount rate based on the interest rate contained in the loan agreement. However, if a particular loan has a determinable market value for its collateral, the creditor may use that value. Also, if the loan is secured and considered collateral dependent, the creditor may use the fair value of the collateral. Interest income on loans individually classified as impaired is recognized on a cash basis after all past due and current principal payments have been made. Smaller-balance, homogeneous loans are evaluated for impairment in total. Such loans include residential first mortgage loans secured by 1–4 family residences, residential construction loans, automobile, home equity, second mortgage loans and mortgage warehouse loans. Commercial loans and mortgage loans secured by other properties are evaluated individually for impairment. When analysis of borrower operating results and financial condition indicate that underlying cash flows of a borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 30 days or more. Loans are generally moved to non-accrual status when they are 90 days or more past due. These loans are often considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms, including TDRs, are measured for impairment. Allowable methods for determining the amount of impairment include the three methods described above. The Company’s TDRs are considered impaired loans and included in the allowance methodology using the guidance for impaired loans. At March 31, 2019, the type of concessions the Company has made on restructured loans has been temporary rate reductions and/or reductions in monthly payments and there have been no restructured loans with modified recorded balances. Any modification to a loan that is a concession and is not in the normal course of lending is considered a restructured loan. A restructured loan is returned to accruing status after six consecutive payments but is still reported as TDR unless the loan bears interest at a market rate. As of March 31, 2019, the Company had $3.9 million in TDRs and $2.5 million were performing according to the restructured terms and $ in TDRs were returned to accrual status during the first three months of 2019. There were $20,000 specific reserves allocated to TDRs at March 31, 2019 based on the discounted cash flows or when appropriate the fair value of the collateral. The following table presents commercial loans individually evaluated for impairment by class of loan: March 31, 2019 Three Months Ended Unpaid Principal Balance Recorded Investment Allowance for Loan Loss Allocated Average Balance in Impaired Loans Cash/Accrual Interest Income Recognized With no recorded allowance Commercial Owner occupied real estate $ 3,275 $ 3,269 $ — $ 3,650 $ 60 Non-owner occupied real estate 840 869 — 875 32 Residential spec homes 261 261 — 261 3 Development & spec land 66 64 — 65 — Commercial and industrial 656 648 — 668 7 Total commercial 5,098 5,111 — 5,519 102 With an allowance recorded Commercial Owner occupied real estate 355 355 25 358 — Non-owner occupied real estate 135 135 40 135 — Residential spec homes — — — — — Development & spec land — — — — — Commercial and industrial 632 632 850 632 — Total commercial 1,122 1,122 915 1,125 — Total $ 6,220 $ 6,233 $ 915 $ 6,644 $ 102 March 31, 2018 Three Months Ended Unpaid Principal Balance Recorded Investment Allowance for Loan Loss Allocated Average Balance in Impaired Loans Cash/Accrual Interest Income Recognized With no recorded allowance Commercial Owner occupied real estate $ 4,038 $ 4,063 $ — $ 4,590 $ 37 Non-owner occupied real estate 1,033 1,049 — 975 5 Residential spec homes — — — — — Development & spec land 76 74 — 75 — Commercial and industrial 737 745 — 1,447 — Total commercial 5,884 5,931 — 7,087 42 With an allowance recorded Commercial Owner occupied real estate 893 893 184 900 — Non-owner occupied real estate — — — — — Residential spec homes — — — — — Development & spec land — — — — — Commercial and industrial — — — — — Total commercial 893 893 184 900 — Total $ 6,777 $ 6,824 $ 184 $ 7,987 $ 42 The following table presents the payment status by class of loan: March 31, 2019 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Non-accrual Total Past Due & Non-accrual Loans Total Commercial Owner occupied real estate $ 672,729 $ 27 $ — $ — $ 3,761 $ 3,788 $ 676,517 Non-owner occupied real estate 827,610 2,386 362 — 3,445 6,193 833,803 Residential spec homes 9,469 491 — — 261 752 10,221 Development & spec land 74,885 17 — — 177 194 75,079 Commercial and industrial 493,723 1,616 632 — 1,653 3,901 497,624 Total commercial 2,078,416 4,537 994 — 9,297 14,828 2,093,244 Real estate Residential mortgage 790,848 1,910 169 140 4,107 6,326 797,174 Residential construction 24,593 — — — — — 24,593 Mortgage warehouse 71,944 — — — — — 71,944 Total real estate 887,385 1,910 169 140 4,107 6,326 893,711 Consumer Direct installment 37,345 67 48 17 55 72 37,417 Indirect installment 316,613 906 129 30 986 1,016 317,629 Home equity 279,938 956 264 5 2,217 2,222 282,160 Total consumer 633,896 1,929 441 52 3,258 3,310 637,206 Total $ 3,599,697 $ 8,376 $ 1,604 $ 192 $ 16,662 $ 24,464 $ 3,624,161 Percentage of total loans 99.32 % 0.23 % 0.04 % 0.01 % 0.46 % 0.68 % December 31, 2018 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Non-accrual Total Past Due & Non-accrual Loans Total Commercial Owner occupied real estate $ 556,516 $ 537 $ 997 $ — $ 3,413 $ 4,947 $ 561,463 Non-owner occupied real estate 716,574 175 19 — 1,046 1,240 717,814 Residential spec homes 4,707 492 — — — 492 5,199 Development & spec land 46,479 — — — 68 68 46,547 Commercial and industrial 390,828 515 736 208 2,059 3,518 394,346 Total commercial 1,715,104 1,719 1,752 208 6,586 10,265 1,725,369 Real estate Residential mortgage 641,500 1,131 56 180 3,269 4,636 646,136 Residential construction 24,030 — — — — — 24,030 Mortgage warehouse 74,120 — — — — — 74,120 Total real estate 739,650 1,131 56 180 3,269 4,636 744,286 Consumer Direct installment 38,138 93 18 — 35 146 38,284 Indirect installment 313,088 1,396 198 173 916 2,683 315,771 Home equity 192,960 761 37 7 1,799 2,604 195,564 Total consumer 544,186 2,250 253 180 2,750 5,433 549,619 Total $ 2,998,940 $ 5,100 $ 2,061 $ 568 $ 12,605 $ 20,334 $ 3,019,274 Percentage of total loans 99.33 % 0.17 % 0.07 % 0.02 % 0.42 % 0.67 % The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Horizon Bank’s processes for determining credit quality differ slightly depending on whether a new loan or a renewed loan is being underwritten, or whether an existing loan is being re-evaluated for credit quality. The latter usually occurs upon receipt of current financial information or other pertinent data that would trigger a change in the loan grade. • For new and renewed commercial loans, the Bank’s Credit Department, which acts independently of the loan officer, assigns the credit quality grade to the loan. Loan grades for loans with an aggregate credit exposure that exceeds the authorities in the respective markets (ranging from $ 1,000,000 3,500,000 • Commercial loan officers are responsible for reviewing their loan portfolios and reporting any adverse material change to the CCBO or Loan Committee. When circumstances warrant a change in the credit quality grade, loan officers are required to notify the CCBO and the Credit Department of the change in the loan grade. Downgrades are accepted immediately by the CCBO, however, lenders must present their factual information to either the Loan Committee or the CCBO when recommending an upgrade. • The CCBO, or his designee, meets weekly with loan officers to discuss the status of past-due loans and classified loans. These meetings are also designed to give the loan officers an opportunity to identify an existing loan that should be downgraded to a classified grade. • Monthly, senior management meets with the Watch Committee, which reviews all of the past due, classified, and impaired loans and the relative trends of these assets. This committee also reviews the actions taken by management regarding foreclosure mitigation, loan extensions, troubled debt restructures, other real estate owned and personal property repossessions. The information reviewed in this meeting acts as a precursor for developing management’s analysis of the adequacy of the Allowance for Loan and Lease Losses. For residential real estate and consumer loans, Horizon uses a grading system based on delinquency. Loans that are 90 days or more past due, on non-accrual, or are classified as a TDR are graded “Substandard.” After being 90 to 120 days delinquent a loan is charged off unless it is well secured and in the process of collection. If the latter case exists, the loan is placed on non-accrual. Occasionally a mortgage loan may be graded as “Special Mention.” When this situation arises, it is because the characteristics of the loan and the borrower fit the definition of a Risk Grade 5 described below, which is normally used for grading commercial loans. Loans not graded Substandard are considered Pass. Horizon Bank employs a nine-grade rating system to determine the credit quality of commercial loans. The first five grades represent acceptable quality, and the last four grades mirror the criticized and classified grades used by the bank regulatory agencies (special mention, substandard, doubtful, and loss). The loan grade definitions are detailed below. Risk Grade 1: Excellent (Pass) Loans secured by liquid collateral, such as certificates of deposit, reputable bank letters of credit, or other cash equivalents; loans that are guaranteed or otherwise backed by the full faith and credit of the United States government or an agency thereof, such as the Small Business Administration; or loans to any publicly held company with a current long-term debt rating of A or better. Risk Grade 2: Good (Pass) Loans to businesses that have strong financial statements containing an unqualified opinion from a CPA firm and at least three consecutive years of profits; loans supported by unaudited financial statements containing strong balance sheets, five consecutive years of profits, a five-year satisfactory relationship with the Bank, and key balance sheet and income statement trends that are either stable or positive; loans secured by publicly traded marketable securities where there is no impediment to liquidation; loans to individuals backed by liquid personal assets and unblemished credit history; or loans to publicly held companies with current long-term debt ratings of Baa or better. Risk Grade 3: Satisfactory (Pass) Loans supported by financial statements (audited or unaudited) that indicate average or slightly below average risk and having some deficiency or vulnerability to changing economic conditions; loans with some weakness but offsetting features of other support are readily available; loans that are meeting the terms of repayment, but which may be susceptible to deterioration if adverse factors are encountered. Loans may be graded Satisfactory when there is no recent information on which to base a current risk evaluation and the following conditions apply: • At inception, the loan was properly underwritten, did not possess an unwarranted level of credit risk, and the loan met the above criteria for a risk grade of Excellent, Good, or Satisfactory; • At inception, the loan was secured with collateral possessing a loan value adequate to protect the Bank from loss. • The loan has exhibited two or more years of satisfactory repayment with a reasonable reduction of the principal balance. • During the period that the loan has been outstanding, there has been no evidence of any credit weakness. Some examples of weakness include slow payment, lack of cooperation by the borrower, breach of loan covenants, or the borrower is in an industry known to be experiencing problems. If any of these credit weaknesses is observed, a lower risk grade may be warranted. Risk Grade 4 Satisfactory/Monitored: Loans in this category are considered to be of acceptable credit quality, but contain greater credit risk than Satisfactory loans. Borrower displays acceptable liquidity, leverage, and earnings performance within the Bank’s minimum underwriting guidelines. The level of risk is acceptable but conditioned on the proper level of loan officer supervision. Loans that normally fall into this grade include acquisition, construction and development loans and income producing properties that have not reached stabilization. Risk Grade 4W Management Watch: Loans in this category are considered to be of acceptable quality, but with above normal risk. Borrower displays potential indicators of weakness in the primary source of repayment resulting in a higher reliance on secondary sources of repayment. Balance sheet may exhibit weak liquidity and/or high leverage. There is inconsistent earnings performance without the ability to sustain adverse economic conditions. Borrower may be operating in a declining industry or the property type, as for a commercial real estate loan, may be unstablized, high risk or in decline. These loans require an increased level of loan officer supervision and monitoring to assure that any deterioration is addressed in a timely fashion. Risk Grade 5: Special Mention Loans which possess some credit deficiency or potential weakness which deserves close attention. Such loans pose an unwarranted financial risk that, if not corrected, could weaken the loan by adversely impacting the future repayment ability of the borrower. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk and (2) weaknesses are considered “potential,” not “defined,” impairments to the primary source of repayment. These loans may be to borrowers with adverse trends in financial performance, collateral value and/or marketability, or balance sheet strength. Risk Grade 6: Substandard One or more of the following characteristics may be exhibited in loans classified Substandard: • Loans which possess a defined credit weakness. The likelihood that a loan will be paid from the primary source of repayment is uncertain. Financial deterioration is under way and very close attention is warranted to ensure that the loan is collected without loss. • Loans are inadequately protected by the current net worth and paying capacity of the obligor. • The primary source of repayment is gone, and the Bank is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees. • Loans have a distinct possibility that the Bank will sustain some loss if deficiencies are not corrected. • Unusual courses of action are needed to maintain a high probability of repayment. • The borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments. • The lender is forced into a subordinated or unsecured position due to flaws in documentation. • Loans have been restructured so that payment schedules, terms, and collateral represent concessions to the borrower when compared to the normal loan terms. • The lender is seriously contemplating foreclosure or legal action due to the apparent deterioration in the loan. • There is a significant deterioration in market conditions to which the borrower is highly vulnerable. Risk Grade 7: Doubtful One or more of the following characteristics may be present in loans classified Doubtful: • Loans have all of the weaknesses of those classified as Substandard. However, based on existing conditions, these weaknesses make full collection of principal highly improbable. • The primary source of repayment is gone, and there is considerable doubt as to the quality of the secondary source of repayment. • The possibility of loss is high but because of certain important pending factors which may strengthen the loan, loss classification is deferred until the exact status of repayment is known. Risk Grade 8: Loss Loans are considered uncollectible and of such little value that continuing to carry them as assets is not feasible. Loans will be classified Loss when it is neither practical nor desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following table presents loans by credit grades. March 31, 2019 Pass Special Mention Substandard Doubtful Total Commercial Owner occupied real estate $ 656,354 $ 5,046 $ 15,117 $ — $ 676,517 Non-owner occupied real estate 815,974 9,048 8,781 — 833,803 Residential spec homes 9,960 — 261 — 10,221 Development & spec land 74,805 97 177 — 75,079 Commercial and industrial 482,091 7,074 8,459 — 497,624 Total commercial 2,039,184 21,265 32,795 — 2,093,244 Real estate Residential mortgage 791,663 — 5,511 — 797,174 Residential construction 24,593 — — — 24,593 Mortgage warehouse 71,944 — — — 71,944 Total real estate 888,200 — 5,511 — 893,711 Consumer Direct installment 37,345 — 72 — 37,417 Indirect installment 316,613 — 1,016 — 317,629 Home equity 279,826 — 2,334 — 282,160 Total consumer 633,784 — 3,422 — 637,206 Total $ 3,561,168 $ 21,265 $ 41,728 $ — $ 3,624,161 Percentage of total loans 98.26 % 0.59 % 1.15 % 0.00 % December 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial Owner occupied real estate $ 538,177 $ 6,618 $ 16,668 $ — $ 561,463 Non-owner occupied real estate 702,269 9,682 5,863 — 717,814 Residential spec homes 5,199 — — — 5,199 Development & spec land 46,382 97 68 — 46,547 Commercial and industrial 379,607 6,655 8,084 — 394,346 Total commercial 1,671,634 23,052 30,683 — 1,725,369 Real estate Residential mortgage 641,309 — 4,827 — 646,136 Residential construction 24,030 — — — 24,030 Mortgage warehouse 74,120 — — — 74,120 Total real estate 739,459 — 4,827 — 744,286 Consumer Direct installment 38,138 — 35 — 38,173 Indirect installment 313,088 — 1,089 — 314,177 Home equity 192,625 — 2,141 — 194,766 Total consumer 543,851 — 3,265 — 547,116 Total $ 2,954,944 $ 23,052 $ 38,775 $ — $ 3,016,771 Percentage of total loans 97.95 % 0.76 % 1.29 % 0.00 % |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 8 – Leases Operating leases are recorded as a right-of-use (“ROU”) asset and operating lease liability, included in other assets and other liabilities, respectively, on the consolidated balance sheet beginning January 1, 2019 when the Company adopted ASU 2016-02 prospectively. Operating lease ROU assets represent the right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating liability, is recognized on a straight-line basis over the lease term, and is recorded primarily in net occupancy expense in the consolidated statements of income. The Company adopted the guidance on January 1, 2019 by electing the optional alternative transition method permitted by ASU 2018-11 allowing for recognition of applicable leases as of January 1, 2019. Additionally, the Company elected the following accounting policies: • The practical expedient package that forgoes: • Reassessment of any expired or existing contracts for a lease • Reassessment of lease classification for expired or existing leases • Reassessment of initial direct costs for existing leases • The hindsight practical expedient to determine lease term and impairment of ROU assets • Other practical expedients regarding combination of lease and non-lease components and the exclusion of short-term leases • The practical expedient for land easements and the portfolio approach were not elected Operating leases relate primarily to bank branches and office space with remaining average lease terms of seven years. The weighted average discount rate utilized to calculate the ROU asset and operating lease liability was approximately 2.57%, which represents the incremental borrowing rate. At inception, the Company recorded a ROU asset and operating lease liability of $3.5 million. At March 31, 2019, a ROU asset of $3.3 million is included in other assets and an operating lease liability of $3.4 million is included in other liabilities, respectively. Options to extend a lease were considered in the remaining lease term determination. The lease expense for operating leases was $148,000 for the three months ended March 31, 2019. Future minimum operating lease payments under non-cancellable leases with initial or remaining lease terms at March 31, 2019 were as follows: Year Amount 2020 $ 484 2021 476 2022 483 2023 504 2024 and thereafter 1,483 Total lease payments $ 3,430 Less: Interest (180 ) Present value of lease liabilities $ 3,250 |
Repurchase Agreements
Repurchase Agreements | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Repurchase Agreements | Note 9 – Repurchase Agreements The Company transfers various securities to customers in exchange for cash at the end of each business day and agrees to acquire the securities at the end of the next business day for the cash exchanged plus interest. The process is repeated at the end of each business day until the agreement is terminated. The securities underlying the agreement remained under the Bank’s control. The following table shows repurchase agreements accounted for as secured borrowings: March 31, 2019 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to one year One to three years Three to five years Five to ten years Beyond ten years Total Repurchase Agreements and repurchase-to-maturity transactions Repurchase Agreements $ 90,885 $ — $ — $ — $ — $ — $ 90,885 Securities pledged for Repurchase Agreements Federal agency collateralized mortgage obligations $ 33,798 $ — $ — $ — $ — $ — $ 33,798 Federal agency mortgage-backed pools 87,795 — — — — — 87,795 Total $ 121,593 $ — $ — $ — $ — $ — $ 121,593 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 10 – Derivative Financial Instruments Cash Flow Hedges – As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flow due to interest rate fluctuations, the Company entered into interest rate swap agreements for a portion of its floating rate debt. The agreements provide for the Company to receive interest from the counterparty at three month LIBOR and to pay interest to the counterparty at a weighted average fixed rate of 5.81% on a notional amount of $30.5 million at March 31, 2019 and December 31, 2018. Under the agreements, the Company pays or receives the net interest amount monthly, with the monthly settlements included in interest expense. The Company assumed additional interest rate swap agreements as the result of the LaPorte acquisition in July 2016. The agreements provide for the Company to receive interest from the counterparty at one month LIBOR and to pay interest to the counterparty at a weighted average fixed rate of 2.31% on a notional amount of $30.0 million at March 31, 2019 and December 31, 2018. Under the agreements, the Company pays or receives the net interest amount monthly, with the monthly settlements included in interest expense. On July 20, 2018, the Company entered into an interest rate swap agreement for an additional portion of its floating rate debt. The agreement provides for the Company to receive interest from the counterparty at one month LIBOR and to pay interest to the counterparty at a rate of 2.81% on a notional amount of $50.0 million at March 31, 2019. Under the agreement, the Company pays or receives the net interest amount monthly, with the monthly settlements included in interest expense. Management has designated the interest rate swap agreement as a cash flow hedging instrument. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. At September 30, 2018, the Company’s cash flow hedge was effective and is not expected to have a significant impact on the Company’s net income over the next 12 months. Fair Value Hedges Fair value hedges are intended to reduce the interest rate risk associated with the underlying hedged item. The Company enters into fixed rate loan agreements as part of its lending policy. To mitigate the risk of changes in fair value based on fluctuations in interest rates, the Company has entered into interest rate swap agreements on individual loans, converting the fixed rate loans to a variable rate. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in current earnings. At March 31, 2019, the Company’s fair value hedges were effective and are not expected to have a significant impact on the Company’s net income over the next 12 months. The change in fair value of both the hedge instruments and the underlying loan agreements are recorded as gains or losses in interest income. The fair value hedges are considered to be highly effective and any hedge ineffectiveness was deemed not material. The notional amounts of the loan agreements being hedged were $234.3 million at March 31, 2019 and $209.2 million at December 31, 2018. Other Derivative Instruments The Company enters into non-hedging derivatives in the form of mortgage loan forward sale commitments with investors and commitments to originate mortgage loans as part of its mortgage banking business. At March 31, 2019, the Company’s fair value of these derivatives were recorded and over the next 12 months are not expected to have a significant impact on the Company’s net income. The change in fair value of both the forward sale commitments and commitments to originate mortgage loans were recorded and the net gains or losses included in the Company’s gain on sale of loans. The following tables summarize the fair value of derivative financial instruments utilized by Horizon: Asset Derivatives Liability Derivatives March 31, 2019 March 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Loans $ — Loans $ 4,093 Interest rate contracts Other Assets 4,093 Other liabilities 2,866 Total derivatives desginated as hedging instruments 4,093 6,959 Derivatives not designated as hedging instruments Mortgage loan contracts Other assets 392 Other liabilities — Total derivatives not designated as hedging instruments 392 — Total derivatives $ 4,485 $ 6,959 Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Loans $ — Loans $ 42 Interest rate contracts Other Assets 42 Other liabilities 1,760 Total derivatives desginated as hedging instruments 42 1,802 Derivatives not designated as hedging instruments Mortgage loan contracts Other assets 135 Other liabilities — Total derivatives not designated as hedging instruments 135 — Total derivatives $ 177 $ 1,802 The effect of the derivative instruments on the condensed consolidated statements of income for the three-month periods ending March 31 is as follows: Amount of Loss Recognized in Other (Effective Portion) Three Months Ended March 31, 2019 March 31, 2018 Derivatives in cash flow hedging relationship Interest rate contracts $ (874 ) $ 358 FASB Accounting Standards Codification (“ASC”) Topic 820-10-20 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820-10-55 establishes a fair value hierarchy that emphasizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Location of gain Amount of Gain (Loss) (loss) recognized on Three Months Ended derivative March 31, 2019 March 31, 2018 Derivative in fair value hedging relationship Interest rate contracts Interest income -loans $ (4,051 ) $ 2,768 Interest rate contracts Interest income -loans 4,051 (2,768 ) Total $ — $ — Location of gain Amount of Gain (Loss) (loss) recognized on Three Months Ended derivative March 31, 2019 March 31, 2018 Derivative not designated as hedging relationship Mortgage contracts Other on sale of loans $ 257 $ 112 |
Disclosures about fair value of
Disclosures about fair value of assets and liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Disclosures about fair value of assets and liabilities | Note 11 – Disclosures about Fair Value of Assets and Liabilities The Fair Value Measurements topic of the FASB ASC defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. There are three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated financial statements, as well as the general classification of such instruments pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended September 30, 2018. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Available for sale securities When quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include U.S. Treasury and federal agency securities, state and municipal securities, federal agency collateralized mortgage obligations and mortgage-backed pools and corporate notes. Level 2 securities are valued by a third party pricing service commonly used in the banking industry utilizing observable inputs. Observable inputs include dealer quotes, market spreads, cash flow analysis, the U.S. Treasury yield curve, trade execution data, market consensus prepayment spreads and available credit information and the bond’s terms and conditions. The pricing provider utilizes evaluated pricing models that vary based on asset class. These models incorporate available market information including quoted prices of securities with similar characteristics and, because many fixed-income securities do not trade on a daily basis, apply available information through processes such as benchmark curves, benchmarking of like securities, sector grouping, and matrix pricing. In addition, model processes, such as an option adjusted spread model, is used to develop prepayment and interest rate scenarios for securities with prepayment features. Hedged loans Certain fixed rate loans have been converted to variable rate loans by entering into interest rate swap agreements. The fair value of those fixed rate loans is based on discounting the estimated cash flows using interest rates determined by the respective interest rate swap agreement. Loans are classified within Level 2 of the valuation hierarchy based on the unobservable inputs used. Interest rate swap agreements The fair value of the Company’s interest rate swap agreements is estimated by a third party using inputs that are primarily unobservable including a yield curve, adjusted for liquidity and credit risk, contracted terms and discounted cash flow analysis, and therefore, are classified within Level 2 of the valuation hierarchy. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following: March 31, 2019 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities U.S. Treasury and federal agencies $ 13,995 $ — $ 13,995 $ — State and municipal 249,760 — 249,760 — Federal agency collateralized mortgage obligations 213,043 — 213,043 — Federal agency mortgage-backed pools 192,265 — 192,265 — Corporate notes 18,079 — 18,079 — Total available for sale securities 687,142 — 687,142 — Hedged loans 234,325 — 234,325 — Forward sale commitments 392 — 392 — Interest rate swap agreements (6,958 ) — (6,958 ) — Commitments to originate loans — — — — December 31, 2018 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities U.S. Treasury and federal agencies $ 16,608 $ — $ 16,608 $ — State and municipal 209,303 — 209,303 — Federal agency collateralized mortgage obligations 185,003 — 185,003 — Federal agency mortgage-backed pools 178,736 — 178,736 — Corporate notes 10,698 — 10,698 — Total available for sale securities 600,348 — 600,348 — Hedged loans 209,161 — 209,161 — Forward sale commitments 135 — 135 — Interest rate swap agreements (1,801 ) — (1,801 ) — Commitments to originate loans — — — — Realized gains and losses included in net income for the periods are reported in the condensed consolidated statements of income as follows: Non-interest Income Three Months Ended Total gains and losses from: March 31, 2019 March 31, 2018 Hedged loans $ (4,051 ) $ 2,768 Fair value interest rate swap agreements 4,051 (2,768 ) Derivative loan commitments 257 112 $ 257 $ 112 Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2019 Impaired loans $ 5,318 $ — $ — $ 5,318 Mortgage servicing rights 13,366 — — 13,366 December 31, 2018 Impaired loans $ 5,661 $ — $ — $ 5,661 Mortgage servicing rights 12,349 — — 12,349 Impaired (collateral dependent): Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. Mortgage Servicing Rights (MSRs): MSRs do not trade in an active market with readily observable prices. Accordingly, the fair value of these assets is classified as Level 3. The Company determines the fair value of MSRs using an income approach model based upon the Company’s month-end interest rate curve and prepayment assumptions. The model utilizes assumptions to estimate future net servicing income cash flows, including estimates of time decay, payoffs and changes in valuation inputs and assumptions. The Company reviews the valuation assumptions against this market data for reasonableness and adjusts the assumptions if deemed appropriate. The carrying amount of the MSRs’ fair value due to impairment increased by $14,000 during the first three months of 2019 and decreased by $6,000 during the first three months of 2018. The following table presents qualitative information about unobservable inputs used in recurring and non-recurring Level 3 fair value measurements, other than goodwill. March 31, 2019 Fair Valuation Unobservable Range Value Technique Inputs (Weighted Average) Impaired loans $ 5,318 Collateral based measurement Discount to reflect current market 0 100 14.7 Mortgage servicing rights 13,366 Discounted cash flows Discount rate, 9.7%-10.0% ( 9.7 9.0 0.6 December 31, 2018 Fair Valuation Unobservable Range Value Technique Inputs (Weighted Average) Impaired loans $ 5,661 Collateral based Discount to reflect current market 0%-100% ( 15.5 Mortgage servicing rights 12,349 Discounted Discount rate, 10.2%-11.0% ( 10.3 9.3 0.6 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 12 – Fair Value of Financial Instruments The estimated fair value amounts of the Company’s financial instruments were determined using available market information, current pricing information applicable to Horizon and various valuation methodologies. Where market quotations were not available, considerable management judgment was involved in the determination of estimated fair values. Therefore, the estimated fair value of financial instruments shown below may not be representative of the amounts at which they could be exchanged in a current or future transaction. Due to the inherent uncertainties of expected cash flows of financial instruments, the use of alternate valuation assumptions and methods could have a significant effect on the estimated fair value amounts. The estimated fair values of financial instruments, as shown below, are not intended to reflect the estimated liquidation or market value of Horizon taken as a whole. The disclosed fair value estimates are limited to Horizon’s significant financial instruments at March 31, 2019 and December 31, 2018. These include financial instruments recognized as assets and liabilities on the condensed consolidated balance sheet as well as certain off-balance sheet financial instruments. The estimated fair values shown below do not include any valuation of assets and liabilities, which are not financial instruments as defined by the FASB ASC fair value hierarchy. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Cash and Due from Banks Held- to-Maturity Securities Loans Held for Sale Net Loans FHLB and FRB Stock Interest Receivable/Payable Deposits Borrowings Subordinated Debentures Commitments to Extend Credit and Standby Letters of Credit — The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. Due to the short-term nature of these agreements, carrying amounts approximate fair value. The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall (unaudited). March 31, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 86,131 $ 86,131 $ — $ — Interest-earning time deposits 15,987 — — — Investment securities, held to maturity 206,327 — 210,106 — Loans held for sale 1,979 — — 1,979 Loans (excluding loan level hedges), net 3,368,911 — — 3,267,463 Stock in FHLB 22,447 — 22,447 — Interest receivable 17,423 — 17,423 — Liabilities Non-interest bearing deposits $ 811,768 $ 811,768 $ — $ — Interest bearing deposits 3,076,255 — 3,005,839 — Borrowings 457,788 — 412,884 — Subordinated debentures 55,310 — 49,568 — Interest payable 2,471 — 2,471 — December 31, 2018 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 58,492 $ 58,492 $ — $ — Interest-earning time deposits 15,744 — 15,542 — Investment securities, held to maturity 210,112 — 208,273 — Loans held for sale 1,038 — — 1,038 Loans (excluding loan level hedges), net 2,786,351 — — 2,681,741 Stock in FHLB 18,073 — 18,073 — Interest receivable 14,239 — 14,239 — Liabilities Non-interest bearing deposits $ 642,129 $ 642,129 $ — $ — Interest bearing deposits 2,497,247 — 2,377,274 — Borrowings 550,384 — 542,311 — Subordinated debentures 37,837 — 35,711 — Interest payable 2,031 — 2,031 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 13 – Accumulated Other Comprehensive Income March 31 December 31 2019 2018 Unrealized gain (loss) on securities available for sale $ 3,118 $ (8,561 ) Unamortized gain (loss) on securities held to maturity, previously transferred from AFS (28 ) 10 Unrealized loss on derivative instruments (2,866 ) (1,760 ) Tax effect (46 ) 2,167 Total accumulated other comprehensive income (loss) $ 178 $ (8,144 ) |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Note 14 – Regulatory Capital Horizon and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies and are assigned to a capital category. Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators, which if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective actions, the Bank must meet specific capital guidelines involving quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined), or leverage ratio. Basel III rules require the Bank to maintain minimum amounts and ratios of common equity Tier I capital (as defined in the regulation) to risk-weighted assets (as defined). Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. To be categorized as well capitalized, the Bank must maintain minimum Total risk-based, Tier I risk-based, common equity Tier I risk-based and Tier I leverage ratios as set forth in the table below. As of March 31, 2019 and December 31, 2018, the Bank met all capital adequacy requirements to be considered well capitalized. There have been no conditions or events since the end of the first quarter of 2019 that management believes have changed the Bank’s classification as well capitalized. There is no threshold for well-capitalized status for bank holding companies. Horizon and the Bank’s actual and required capital ratios as of March 31, 2019 and December 31, 2018 were as follows: Actual Required for Capital 1 Adequacy Purposes Required For Capital 1 Adequacy Purposes Well Capitalized 1 Corrective Action Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total capital 1 Consolidated $ 509,214 13.25 % $ 307,362 8.00 % $ 403,412 10.50 % N/A N/A Bank 472,621 12.30 % 307,361 8.00 % 403,411 10.50 % $ 384,201 10.00 % Tier 1 capital 1 Consolidated 491,302 12.79 % 230,521 6.00 % 326,572 8.50 % N/A N/A Bank 454,709 11.84 % 230,520 6.00 % 326,570 8.50 % 307,360 8.00 % Common equity tier 1 capital 1 Consolidated 433,809 11.29 % 172,890 4.50 % 268,941 7.00 % N/A N/A Bank 454,709 11.84 % 172,890 4.50 % 268,940 7.00 % 249,730 6.50 % Tier 1 capital 1 Consolidated 491,302 11.85 % 165,789 4.00 % 165,789 4.00 % N/A N/A Bank 454,709 10.99 % 165,523 4.00 % 165,523 4.000 % 206,904 5.00 % December 31, 2018 Total capital 1 Consolidated $ 427,616 13.39 % $ 255,419 8.00 % $ 315,283 9.875 % N/A N/A Bank 396,755 12.43 % 255,419 8.00 % 315,283 9.875 % $ 319,274 10.00 % Tier 1 capital 1 Consolidated 409,760 12.83 % 191,565 6.00 % 251,429 7.875 % N/A N/A Bank 378,899 11.87 % 191,565 6.00 % 251,429 7.875 % 255,420 8.00 % Common equity tier 1 capital 1 Consolidated 371,297 11.63 % 143,673 4.50 % 203,537 6.375 % N/A N/A Bank 378,899 11.87 % 143,674 4.50 % 203,537 6.375 % 207,528 6.50 % Tier 1 capital 1 Consolidated 409,760 10.12 % 162,033 4.00 % 162,033 4.000 % N/A N/A Bank 378,899 9.34 % 162,327 4.00 % 162,327 4.000 % 202,908 5.00 % |
Future Accounting Matters
Future Accounting Matters | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Future Accounting Matters | Note 15 – Future Accounting Matters Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement The FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement . These amendments modify the disclosure requirements in Topic 820 as follows: Removals : the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. Modifications : for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and the amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additions : the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should all be applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU No. 2018-13 and delay adoption of the additional disclosures until their effective date. We are currently evaluating the impact of adoption of ASU 2018-13 and the impact on our accounting and disclosures. FASB ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The FASB has issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new guidance is intended to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the qualitative impairment test is necessary. The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update should be adopted for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted on testing dates after January 1, 2017. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements, but it is not expected to have a material impact. FASB ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The FASB has issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. |
General Litigation
General Litigation | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation | Note 16 – General Litigation The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operation and cash flows of the Company. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Earnings per Common Share | Basic earnings per share is computed by dividing net income available to common shareholders (net income less dividend requirements for preferred stock and accretion of preferred stock discount) by the weighted-average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The following table shows computation of basic and diluted earnings per share. Three Months Ended March 31 2019 2018 Basic earnings per share Net income $ 10,816 $ 12,804 Weighted average common shares outstanding (1) 38,822,543 38,306,395 Basic earnings per share $ 0.28 $ 0.33 Diluted earnings per share Net income available to common shareholders $ 10,816 $ 12,804 Weighted average common shares outstanding (1) 38,822,543 38,306,395 Effect of dilutive securities: Restricted stock — 35,356 Stock options 83,629 127,059 Weighted average common shares outstanding 38,906,172 38,468,810 $ 0.28 $ 0.33 (1) Adjusted for 3:2 stock split on June 15, 2018 There were 350,618 and 44,053 shares for the three months ended March 31, 2019 and 2018, respectively, which were not included in the computation of diluted earnings per share because they were non-dilutive. Horizon has share-based employee compensation plans, which are described in the notes to the financial statements included in the December 31, 2018 Annual Report on Form 10-K. |
Recent Accounting Pronouncements | Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities The FASB has issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. FASB Accounting Standards Updates No. 2016-02, Leases (Topic 842) The FASB has issued Accounting Standards Update (ASU) No. 2016-02, Leases. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification 606, “ Revenue from Contracts with Customers” (ASC 606) provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance enumerates five steps that entities should follow in achieving this core principle. Revenue generated from financial instruments, including loans and investment securities, are not included in the scope of ASC 606. The adoption of ASC 606 did not result in a change to the accounting for any of the Company’s revenue streams that are within the scope of the amendments. Revenue-generating activities that are within the scope of ASC 606 and that are presented as non-interest income in the Company’s consolidated statements of income include: • Service charges and fees on deposit accounts – these include general service fees charged for deposit account maintenance and activity and transaction-based fees charged for certain services, such as debit card, wire transfer or overdraft activities. Revenue is recognized when the performance obligation is completed, which is generally after a transaction is completed or monthly for account maintenance services. • Fiduciary activities – this includes periodic fees due from trust and wealth management customers for managing the customers’ financial assets. Fees are charged based on a standard agreement and are recognized as they are earned. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2018 condensed consolidated financial statements to be comparable to 2019. These reclassifications had no effect on net income. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Computation of Basic and Diluted Earnings Per Share | The following table shows computation of basic and diluted earnings per share. Three Months Ended March 31 2019 2018 Basic earnings per share Net income $ 10,816 $ 12,804 Weighted average common shares outstanding (1) 38,822,543 38,306,395 Basic earnings per share $ 0.28 $ 0.33 Diluted earnings per share Net income available to common shareholders $ 10,816 $ 12,804 Weighted average common shares outstanding (1) 38,822,543 38,306,395 Effect of dilutive securities: Restricted stock — 35,356 Stock options 83,629 127,059 Weighted average common shares outstanding 38,906,172 38,468,810 $ 0.28 $ 0.33 (1) Adjusted for 3:2 stock split on June 15, 2018 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Pro Forma Result of Comparable Prior Reporting Period | The following schedule includes pro-forma results for the three months ended March 31, 2019 and 2018 as if the Salin acquisition had occurred as of the beginning of the comparable prior reporting periods. Three Months Ended March 31 March 31 2019 2018 Summary of Operations: Net Interest Income $ 42,182 $ 40,619 Provision for Loan Losses 664 1,167 Net Interest Income after Provision for Loan Losses 41,518 39,452 Non-interest Income 9,126 9,999 Non-interest Expense 42,152 33,169 Income before Income Taxes 8,492 16,282 Income Tax Expense 2,017 2,465 Net Income 6,475 13,817 Net Income Available to Common Shareholders $ 6,475 $ 13,817 Basic Earnings per Share $ 0.17 $ 0.36 Diluted Earnings per Share $ 0.17 $ 0.36 |
Salin Bancshares, Inc [Member] | |
Schedule of Purchase Price of Assets Acquired and Liabilities Assumed | Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions that are subject to change, the preliminary purchase price for the Salin acquisition is detailed in the following table. Assets Cash and due from banks $ 152,745 Investment securities, available for sale 54,706 Loans Commercial 350,916 Residential mortgage 136,089 Consumer 84,814 Total loans 571,819 Premises and equipment, net 23,882 FRB and FHLB stock 3,571 Goodwill 25,810 Core deposit intangible 21,111 Interest receivable 2,488 Other assets 107,611 Total assets purchased $ 963,743 Common shares issued $ 102,722 Cash paid 24,000 Total purchase price $ 126,722 Liabilities Deposits Non-interest bearing $ 188,744 NOW accounts 207,567 Savings and money market 274,504 Certificates of deposit 70,652 Total deposits 741,467 Borrowings 70,495 Subordinated debentures 17,443 Interest payable 826 Other liabilities 6,790 Total liabilities assumed $ 837,021 |
Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30 | The following table details an estimate of the acquired loans that are accounted for in accordance with ASC 310-30 as of March 26, 2019. Final valuation estimates have not yet been determined for acquired loans as of March 31, 2019. If information becomes available which would indicate adjustment to the purchase price allocation, such adjustments would be made prospectively. Contractually required principal and interest at acquisition $ 22,209 Contractual cash flows not expected to be collected (nonaccretable differences) 8,632 Expected cash flows at acquisition 13,577 Interest component of expected cash flows (accretable discount) 1,333 Fair value of acquired loans accounted for under ASC 310-30 $ 12,244 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value of Securities | The fair value of securities is as follows: March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale U.S. Treasury and federal agencies $ 14,087 $ — $ (92 ) $ 13,995 State and municipal 245,577 5,266 (1,083 ) 249,760 Federal agency collateralized mortgage obligations 212,829 1,774 (1,560 ) 213,043 Federal agency mortgage-backed pools 193,932 294 (1,961 ) 192,265 Corporate notes 17,598 481 — 18,079 Total available for sale investment securities $ 684,023 $ 7,815 $ (4,696 ) $ 687,142 Held to maturity State and municipal $ 187,847 $ 4,053 $ (330 ) $ 191,570 Federal agency collateralized mortgage obligations 5,019 8 (48 ) 4,979 Federal agency mortgage-backed pools 13,461 152 (56 ) 13,557 Total held to maturity investment securities $ 206,327 $ 4,213 $ (434 ) $ 210,106 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale U.S. Treasury and federal agencies $ 16,815 $ 1 $ (208 ) $ 16,608 State and municipal 210,386 1,495 (2,578 ) 209,303 Federal agency collateralized mortgage obligations 187,563 625 (3,185 ) 185,003 Federal agency mortgage-backed pools 183,479 80 (4,823 ) 178,736 Corporate notes 10,666 107 (75 ) 10,698 Total available for sale investment securities $ 608,909 $ 2,308 $ (10,869 ) $ 600,348 Held to maturity State and municipal $ 191,269 $ 1,773 $ (3,366 ) $ 189,676 Federal agency collateralized mortgage obligations 5,144 6 (120 ) 5,030 Federal agency mortgage-backed pools 13,699 74 (206 ) 13,567 Total held to maturity investment securities $ 210,112 $ 1,853 $ (3,692 ) $ 208,273 |
Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity | The amortized cost and fair value of securities available for sale and held to maturity at March 31, 2019 and December 31, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Available for sale Within one year $ 29,589 $ 29,552 $ 20,532 $ 20,448 One to five years 52,250 51,759 42,476 41,705 Five to ten years 100,190 102,334 107,839 107,107 After ten years 95,233 98,189 67,020 67,349 277,262 281,834 237,867 236,609 Federal agency collateralized mortgage obligations 212,829 213,043 187,563 185,003 Federal agency mortgage-backed pools 193,932 192,265 183,479 178,736 Private labeled mortgage-backed pools — — — — Total available for sale investment securities $ 684,023 $ 687,142 $ 608,909 $ 600,348 Held to maturity Within one year $ 150 $ 150 $ 70 $ 70 One to five years 50,317 51,152 48,732 49,324 Five to ten years 99,413 101,178 101,809 101,533 After ten years 37,967 37,207 40,658 38,749 187,847 189,687 191,269 189,676 Federal agency collateralized mortgage obligations 5,019 4,979 5,144 5,030 Federal agency mortgage-backed pools 13,461 13,557 13,699 13,567 Total held to maturity investment securities $ 206,327 $ 208,223 $ 210,112 $ 208,273 |
Gross Unrealized Losses and Fair Value of Company's Investments | The following table shows the gross unrealized losses and the fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. March 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investment Securities U.S. Treasury and federal agencies $ — $ — $ 9,823 $ (92 ) $ 9,823 $ (92 ) State and municipal 65,265 (697 ) 44,783 (2,500 ) 110,048 (3,197 ) Federal agency collateralized mortgage obligations 431 (1 ) 100,886 (1,607 ) 101,317 (1,608 ) Federal agency mortgage-backed pools — — 152,582 (2,017 ) 152,582 (2,017 ) Corporate notes — — — — — — Total temporarily impaired securities $ 65,696 $ (698 ) $ 308,074 $ (6,216 ) $ 373,770 $ (6,914 ) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Investment Securities U.S. Treasury and federal agencies $ — $ — $ 9,707 $ (208 ) $ 9,707 $ (208 ) State and municipal 75,163 (1,628 ) 106,335 (4,316 ) 181,498 (5,944 ) Federal agency collateralized mortgage obligations 6,450 (25 ) 106,257 (3,280 ) 112,707 (3,305 ) Federal agency mortgage-backed pools 5,739 (39 ) 175,865 (4,990 ) 181,604 (5,029 ) Corporate notes 5,263 (75 ) — — 5,263 (75 ) Total temporarily impaired securities $ 92,615 $ (1,767 ) $ 398,164 $ (12,794 ) $ 490,779 $ (14,561 ) |
Sales of Securities Available for Sale | Information regarding security proceeds, gross gains and gross losses are presented below. Three Months Ended March 31 2019 2018 Sales of securities available for sale Proceeds $ 17,587 $ 9,836 Gross gains 59 37 Gross losses (44 ) (26 ) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Amounts of Loans | March 31 2019 December 31 2018 Commercial Working capital and equipment $ 924,435 $ 804,083 Real estate, including agriculture 1,076,077 834,037 Tax exempt 60,062 48,975 Other 29,005 34,495 Total 2,089,579 1,721,590 Real estate 1-4 family 808,401 659,754 Other 11,423 8,387 Total 819,824 668,141 Consumer Auto 331,572 327,413 Recreation 14,262 13,975 Real estate/home improvement 40,998 39,587 Home equity 245,940 163,209 Unsecured 4,124 4,043 Other 2,814 1,254 Total 639,710 549,481 Mortgage warehouse 71,944 74,120 Total loans 3,621,057 3,013,332 Allowance for loan losses (17,821 ) (17,820 ) Loans, net $ 3,603,236 $ 2,995,512 |
Recorded Investment of Individual Loan Categories | The following table shows the recorded investment of individual loan categories. March 31, 2019 Loan Balance Interest Due Deferred Costs/(Fees) Recorded Investment Owner occupied real estate $ 676,517 $ 975 $ (1,687 ) $ 675,805 Non-owner occupied real estate 833,803 1,645 (1,666 ) 833,782 Residential spec homes 10,221 27 (3 ) 10,245 Development & spec land 75,079 249 (16 ) 75,312 Commercial and industrial 497,624 4,291 (293 ) 501,622 Total commercial 2,093,244 7,187 (3,665 ) 2,096,766 Residential mortgage 797,174 2,346 (1,943 ) 797,577 Residential construction 24,593 43 — 24,636 Mortgage warehouse 71,944 480 — 72,424 Total real estate 893,711 2,869 (1,943 ) 894,637 Direct installment 37,417 135 560 38,112 Indirect installment 317,629 750 — 318,379 Home equity 282,160 1,504 1,944 285,608 Total consumer 637,206 2,389 2,504 642,099 Total loans 3,624,161 12,445 (3,104 ) 3,633,502 Allowance for loan losses (17,821 ) — — (17,821 ) Net loans $ 3,606,340 $ 12,445 $ (3,104 ) $ 3,615,681 December 31, 2018 Loan Balance Interest Due Deferred Costs/(Fees) Recorded Investment Owner occupied real estate $ 561,463 $ 1,240 $ (1,629 ) $ 561,074 Non-owner occupied real estate 717,814 1,063 (1,839 ) 717,038 Residential spec homes 5,199 13 (2 ) 5,210 Development & spec land 46,547 131 (12 ) 46,666 Commercial and industrial 394,346 3,149 (297 ) 397,198 Total commercial 1,725,369 5,596 (3,779 ) 1,727,186 Residential mortgage 646,136 1,861 (2,025 ) 645,972 Residential construction 24,030 42 — 24,072 Mortgage warehouse 74,120 480 — 74,600 Total real estate 744,286 2,383 (2,025 ) 744,644 Direct installment 38,173 103 566 38,842 Indirect installment 314,177 738 — 314,915 Home equity 194,766 973 1,799 197,538 Total consumer 547,116 1,814 2,365 551,295 Total loans 3,016,771 9,793 (3,439 ) 3,023,125 Allowance for loan losses (17,820 ) — — (17,820 ) Net loans $ 2,998,951 $ 9,793 $ (3,439 ) $ 3,005,305 |
Accounting for Certain Loans _2
Accounting for Certain Loans Acquired in a Transfer (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Carrying Amounts of Loans | The carrying amounts of those loans included in the balance sheet amounts of loans receivable are as follows: March 31, 2019 Commercial Real Estate Consumer Outstanding Balance Allowance for Loan Losses Carrying Amount Heartland $ 229 $ 164 $ — $ 393 $ — $ 393 Summit 220 535 — 755 — 755 Peoples 260 44 — 304 — 304 Kosciusko 712 163 — 875 296 579 LaPorte 708 836 26 1,570 — 1,570 Lafayette 2,204 — — 2,204 — 2,204 Wolverine 5,736 — — 5,736 — 5,736 Salin 10,329 1,986 1,262 13,577 — 13,577 Total $ 20,398 $ 3,728 $ 1,288 $ 25,414 $ 296 $ 25,118 December 31, 2018 Commercial Real Estate Consumer Outstanding Balance Allowance for Loan Losses Carrying Amount Heartland $ 232 $ 175 $ — $ 407 $ — $ 407 Summit 323 555 — 878 — 878 Peoples 270 58 — 328 — 328 Kosciusko 746 155 — 901 — 901 LaPorte 753 947 27 1,727 60 1,667 Lafayette 3,080 — — 3,080 — 3,080 Wolverine 7,841 — — 7,841 — 7,841 Total $ 13,245 $ 1,890 $ 27 $ 15,162 $ 60 $ 15,102 |
Accretable Yield or Income Expected to be Collected | Accretable yield, or income expected to be collected for the three months ended March 31, is as follows: Three Months Ended March 31, 2019 Beginning balance Additions Accretion Reclassification from nonaccretable difference Disposals Ending balance Heartland $ 174 $ — $ (8 ) $ — $ — $ 166 Summit 42 — (3 ) — (11 ) 28 Kosciusko 300 — (17 ) — — 283 LaPorte 829 — (29 ) — — 800 Lafayette 609 — (35 ) — (171 ) 403 Wolverine 698 — (123 ) — (8 ) 567 Salin — 3,368 — — — 3,368 Total $ 2,652 $ 3,368 $ (215 ) $ — $ (190 ) $ 5,615 Three Months Ended March 31, 2018 Beginning balance Additions Accretion Reclassification from nonaccretable difference Disposals Ending balance Heartland $ 452 $ — $ (59 ) $ — $ — $ 393 Summit 147 — (18 ) — (2 ) 127 Kosciusko 386 — (20 ) — — 366 LaPorte 980 — (40 ) — (7 ) 933 Lafayette 933 — (118 ) — (2 ) 813 Wolverine 2,267 — (387 ) — (42 ) 1,838 Total $ 5,165 $ — $ (642 ) $ — $ (53 ) $ 4,470 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior one to five years. Management believes using the highest of the one, two or five-year historical loss experience is an appropriate methodology in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. The actual allowance for loan loss activity is provided below. Three Months Ended March 31 2019 2018 (Unaudited) (Unaudited) Balance at beginning of the period $ 17,820 $ 16,394 Loans charged-off: Commercial Owner occupied real estate 1 13 Non-owner occupied real estate 64 — Residential spec homes — — Development & spec land — — Commercial and industrial 12 — Total commercial 77 13 Real estate Residential mortgage — 12 Residential construction — — Mortgage warehouse — — Total real estate — 12 Consumer Direct installment 28 55 Indirect installment 540 505 Home equity 16 131 Total consumer 584 691 Total loans charged-off 661 716 Recoveries of loans previously charged-off: Commercial Owner occupied real estate — 12 Non-owner occupied real estate 6 5 Residential spec homes 2 2 Development & spec land — — Commercial and industrial 8 32 Total commercial 16 51 Real estate Residential mortgage 27 6 Residential construction — — Mortgage warehouse — — Total real estate 27 6 Consumer Direct installment 11 11 Indirect installment 201 139 Home equity 43 22 Total consumer 255 172 Total loan recoveries 298 229 Net loans charged-off 363 487 Provision charged to operating expense Commercial 1,122 (1,291 ) Real estate (107 ) (252 ) Consumer (651 ) 2,110 Total provision charged to operating expense 364 567 Balance at the end of the period $ 17,821 $ 16,474 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment analysis: March 31, 2019 Commercial Real Estate Mortgage Warehousing Consumer Total Allowance For Loan Losses Ending allowance balance attributable to loans: Individually evaluated for impairment $ 915 $ — $ — $ — $ 915 Collectively evaluated for impairment 10,641 1,588 1,014 3,663 16,906 Loans acquired with deteriorated credit quality — — — — — Total ending allowance balance $ 11,556 $ 1,588 $ 1,014 $ 3,663 $ 17,821 Loans: Individually evaluated for impairment $ 6,233 $ — $ — $ — $ 6,233 Collectively evaluated for impairment 2,087,011 821,767 71,944 637,206 3,617,928 Loans acquired with deteriorated credit quality — — — — — Total ending loans balance $ 2,093,244 $ 821,767 $ 71,944 $ 637,206 $ 3,624,161 December 31, 2018 Commercial Real Estate Mortgage Warehousing Consumer Total Allowance For Loan Losses Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,035 $ — $ — $ — $ 1,035 Collectively evaluated for impairment 9,460 1,676 1,006 4,643 16,785 Loans acquired with deteriorated credit quality — — — — — Total ending allowance balance $ 10,495 $ 1,676 $ 1,006 $ 4,643 $ 17,820 Loans: Individually evaluated for impairment $ 6,708 $ — $ — $ — $ 6,708 Collectively evaluated for impairment 1,718,661 670,166 74,120 547,116 3,010,063 Loans acquired with deteriorated credit quality — — — — — Total ending loans balance $ 1,725,369 $ 670,166 $ 74,120 $ 547,116 $ 3,016,771 |
Non-performing Loans and Impa_2
Non-performing Loans and Impaired Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Non-accrual, Loans Past Due Over 90 Days Still on Accrual, and Troubled Debt Restructured ("TDRs") by Class of Loans | The following table presents the non-accrual, loans past due over 90 days still on accrual, and troubled debt restructured (“TDRs”) by class of loans: March 31, 2019 Non-accrual Loans Past Due Over 90 Days Still Accruing Non-peforming TDRs Performing TDRs Total Non-performing Loans Commercial Owner occupied real estate $ 3,372 $ — $ 389 $ 139 $ 3,900 Non-owner occupied real estate 3,041 — 404 314 3,759 Residential spec homes 261 — — — 261 Development & spec land 177 — — — 177 Commercial and industrial 1,653 — — — 1,653 Total commercial 8,504 — 793 453 9,750 Real estate Residential mortgage 3,691 140 416 1,748 5,995 Residential construction — — — — — Mortgage warehouse — — — — — Total real estate 3,691 140 416 1,748 5,995 Consumer Direct installment 55 17 — — 72 Indirect installment 986 30 — — 1,016 Home equity 2,077 5 140 331 2,553 Total consumer 3,118 52 140 331 3,641 Total $ 15,313 $ 192 $ 1,349 $ 2,532 $ 19,386 December 31, 2018 Non-accrual Loans Past Due Over 90 Days Still Accruing Non-peforming TDRs Performing TDRs Total Non-performing Loans Commercial Owner occupied real estate $ 3,413 $ — $ — $ 109 $ 3,522 Non-owner occupied real estate 554 — 492 — 1,046 Residential spec homes — — — — — Development & spec land 68 — — — 68 Commercial and industrial 2,059 208 — — 2,267 Total commercial 6,094 208 492 109 6,903 Real estate Residential mortgage 2,846 180 423 1,558 5,007 Residential construction — — — — — Mortgage warehouse — — — — — Total real estate 2,846 180 423 1,558 5,007 Consumer Direct installment 35 — — — 35 Indirect installment 916 173 — — 1,089 Home equity 1,657 7 142 335 2,141 Total consumer 2,608 180 142 335 3,265 Total $ 11,548 $ 568 $ 1,057 $ 2,002 $ 15,175 |
Commercial Loans Individually Evaluated for Impairment by Class of Loans | The following table presents commercial loans individually evaluated for impairment by class of loan: March 31, 2019 Three Months Ended Unpaid Principal Balance Recorded Investment Allowance for Loan Loss Allocated Average Balance in Impaired Loans Cash/Accrual Interest Income Recognized With no recorded allowance Commercial Owner occupied real estate $ 3,275 $ 3,269 $ — $ 3,650 $ 60 Non-owner occupied real estate 840 869 — 875 32 Residential spec homes 261 261 — 261 3 Development & spec land 66 64 — 65 — Commercial and industrial 656 648 — 668 7 Total commercial 5,098 5,111 — 5,519 102 With an allowance recorded Commercial Owner occupied real estate 355 355 25 358 — Non-owner occupied real estate 135 135 40 135 — Residential spec homes — — — — — Development & spec land — — — — — Commercial and industrial 632 632 850 632 — Total commercial 1,122 1,122 915 1,125 — Total $ 6,220 $ 6,233 $ 915 $ 6,644 $ 102 March 31, 2018 Three Months Ended Unpaid Principal Balance Recorded Investment Allowance for Loan Loss Allocated Average Balance in Impaired Loans Cash/Accrual Interest Income Recognized With no recorded allowance Commercial Owner occupied real estate $ 4,038 $ 4,063 $ — $ 4,590 $ 37 Non-owner occupied real estate 1,033 1,049 — 975 5 Residential spec homes — — — — — Development & spec land 76 74 — 75 — Commercial and industrial 737 745 — 1,447 — Total commercial 5,884 5,931 — 7,087 42 With an allowance recorded Commercial Owner occupied real estate 893 893 184 900 — Non-owner occupied real estate — — — — — Residential spec homes — — — — — Development & spec land — — — — — Commercial and industrial — — — — — Total commercial 893 893 184 900 — Total $ 6,777 $ 6,824 $ 184 $ 7,987 $ 42 |
Payment Status by Class of Loan | The following table presents the payment status by class of loan: March 31, 2019 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Non-accrual Total Past Due & Non-accrual Loans Total Commercial Owner occupied real estate $ 672,729 $ 27 $ — $ — $ 3,761 $ 3,788 $ 676,517 Non-owner occupied real estate 827,610 2,386 362 — 3,445 6,193 833,803 Residential spec homes 9,469 491 — — 261 752 10,221 Development & spec land 74,885 17 — — 177 194 75,079 Commercial and industrial 493,723 1,616 632 — 1,653 3,901 497,624 Total commercial 2,078,416 4,537 994 — 9,297 14,828 2,093,244 Real estate Residential mortgage 790,848 1,910 169 140 4,107 6,326 797,174 Residential construction 24,593 — — — — — 24,593 Mortgage warehouse 71,944 — — — — — 71,944 Total real estate 887,385 1,910 169 140 4,107 6,326 893,711 Consumer Direct installment 37,345 67 48 17 55 72 37,417 Indirect installment 316,613 906 129 30 986 1,016 317,629 Home equity 279,938 956 264 5 2,217 2,222 282,160 Total consumer 633,896 1,929 441 52 3,258 3,310 637,206 Total $ 3,599,697 $ 8,376 $ 1,604 $ 192 $ 16,662 $ 24,464 $ 3,624,161 Percentage of total loans 99.32 % 0.23 % 0.04 % 0.01 % 0.46 % 0.68 % December 31, 2018 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Non-accrual Total Past Due & Non-accrual Loans Total Commercial Owner occupied real estate $ 556,516 $ 537 $ 997 $ — $ 3,413 $ 4,947 $ 561,463 Non-owner occupied real estate 716,574 175 19 — 1,046 1,240 717,814 Residential spec homes 4,707 492 — — — 492 5,199 Development & spec land 46,479 — — — 68 68 46,547 Commercial and industrial 390,828 515 736 208 2,059 3,518 394,346 Total commercial 1,715,104 1,719 1,752 208 6,586 10,265 1,725,369 Real estate Residential mortgage 641,500 1,131 56 180 3,269 4,636 646,136 Residential construction 24,030 — — — — — 24,030 Mortgage warehouse 74,120 — — — — — 74,120 Total real estate 739,650 1,131 56 180 3,269 4,636 744,286 Consumer Direct installment 38,027 93 18 — 35 146 38,173 Indirect installment 311,494 1,396 198 173 916 2,683 314,177 Home equity 192,162 761 37 7 1,799 2,604 194,766 Total consumer 541,794 2,250 253 180 2,750 5,433 547,116 Total $ 2,996,548 $ 5,100 $ 2,061 $ 568 $ 12,605 $ 20,334 $ 3,016,771 Percentage of total loans 99.33 % 0.17 % 0.07 % 0.02 % 0.42 % 0.67 % |
Loans by Credit Grades | The following table presents loans by credit grades. March 31, 2019 Pass Special Mention Substandard Doubtful Total Commercial Owner occupied real estate $ 656,354 $ 5,046 $ 15,117 $ — $ 676,517 Non-owner occupied real estate 815,974 9,048 8,781 — 833,803 Residential spec homes 9,960 — 261 — 10,221 Development & spec land 74,805 97 177 — 75,079 Commercial and industrial 482,091 7,074 8,459 — 497,624 Total commercial 2,039,184 21,265 32,795 — 2,093,244 Real estate Residential mortgage 791,663 — 5,511 — 797,174 Residential construction 24,593 — — — 24,593 Mortgage warehouse 71,944 — — — 71,944 Total real estate 888,200 — 5,511 — 893,711 Consumer Direct installment 37,345 — 72 — 37,417 Indirect installment 316,613 — 1,016 — 317,629 Home equity 279,826 — 2,334 — 282,160 Total consumer 633,784 — 3,422 — 637,206 Total $ 3,561,168 $ 21,265 $ 41,728 $ — $ 3,624,161 Percentage of total loans 98.26 % 0.59 % 1.15 % 0.00 % December 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial Owner occupied real estate $ 538,177 $ 6,618 $ 16,668 $ — $ 561,463 Non-owner occupied real estate 702,269 9,682 5,863 — 717,814 Residential spec homes 5,199 — — — 5,199 Development & spec land 46,382 97 68 — 46,547 Commercial and industrial 379,607 6,655 8,084 — 394,346 Total commercial 1,671,634 23,052 30,683 — 1,725,369 Real estate Residential mortgage 641,309 — 4,827 — 646,136 Residential construction 24,030 — — — 24,030 Mortgage warehouse 74,120 — — — 74,120 Total real estate 739,459 — 4,827 — 744,286 Consumer Direct installment 38,138 — 35 — 38,173 Indirect installment 313,088 — 1,089 — 314,177 Home equity 192,625 — 2,141 — 194,766 Total consumer 543,851 — 3,265 — 547,116 Total $ 2,954,944 $ 23,052 $ 38,775 $ — $ 3,016,771 Percentage of total loans 97.95 % 0.76 % 1.29 % 0.00 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule Of Future Minimum Rental Payments For Operating Leases | Future minimum operating lease payments under non-cancellable leases with initial or remaining lease terms at March 31, 2019 were as follows: Year Amount 2020 $ 484 2021 476 2022 483 2023 504 2024 and thereafter 1,483 Total lease payments $ 3,430 Less: Interest (180 ) Present value of lease liabilities $ 3,250 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Summary of Repurchase Agreements Accounted as Secured Borrowings | The following table shows repurchase agreements accounted for as secured borrowings: March 31, 2019 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to one year One to three years Three to five years Five to ten years Beyond ten years Total Repurchase Agreements and repurchase-to-maturity transactions Repurchase Agreements $ 90,885 $ — $ — $ — $ — $ — $ 90,885 Securities pledged for Repurchase Agreements Federal agency collateralized mortgage obligations $ 33,798 $ — $ — $ — $ — $ — $ 33,798 Federal agency mortgage-backed pools 87,795 — — — — — 87,795 Total $ 121,593 $ — $ — $ — $ — $ — $ 121,593 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments | The following tables summarize the fair value of derivative financial instruments utilized by Horizon: Asset Derivatives Liability Derivatives March 31, 2019 March 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Loans $ — Loans $ 4,093 Interest rate contracts Other Assets 4,093 Other liabilities 2,866 Total derivatives desginated as hedging instruments 4,093 6,959 Derivatives not designated as hedging instruments Mortgage loan contracts Other assets 392 Other liabilities — Total derivatives not designated as hedging instruments 392 — Total derivatives $ 4,485 $ 6,959 Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Loans $ — Loans $ 42 Interest rate contracts Other Assets 42 Other liabilities 1,760 Total derivatives desginated as hedging instruments 42 1,802 Derivatives not designated as hedging instruments Mortgage loan contracts Other assets 135 Other liabilities — Total derivatives not designated as hedging instruments 135 — Total derivatives $ 177 $ 1,802 |
Effect of Derivative Instruments on Condensed Consolidated Statement of Income Derivative in Cash Flow Hedging Relationship | The effect of the derivative instruments on the condensed consolidated statements of income for the three-month periods ending March 31 is as follows: Amount of Loss Recognized in Other (Effective Portion) Three Months Ended March 31, 2019 March 31, 2018 Derivatives in cash flow hedging relationship Interest rate contracts $ (874 ) $ 358 |
Effect of Derivative Instruments on Consolidated Statement of Income Derivative in Fair Value Hedging Relationship | Location of gain Amount of Gain (Loss) (loss) recognized on Three Months Ended derivative March 31, 2019 March 31, 2018 Derivative in fair value hedging relationship Interest rate contracts Interest income -loans $ (4,051 ) $ 2,768 Interest rate contracts Interest income -loans 4,051 (2,768 ) Total $ — $ — Location of gain Amount of Gain (Loss) (loss) recognized on Three Months Ended derivative March 31, 2019 March 31, 2018 Derivative not designated as hedging relationship Mortgage contracts Other on sale of loans $ 257 $ 112 |
Disclosures about fair value _2
Disclosures about fair value of assets and liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following: March 31, 2019 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities U.S. Treasury and federal agencies $ 13,995 $ — $ 13,995 $ — State and municipal 249,760 — 249,760 — Federal agency collateralized mortgage obligations 213,043 — 213,043 — Federal agency mortgage-backed pools 192,265 — 192,265 — Corporate notes 18,079 — 18,079 — Total available for sale securities 687,142 — 687,142 — Hedged loans 234,325 — 234,325 — Forward sale commitments 392 — 392 — Interest rate swap agreements (6,958 ) — (6,958 ) — Commitments to originate loans — — — — December 31, 2018 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities U.S. Treasury and federal agencies $ 16,608 $ — $ 16,608 $ — State and municipal 209,303 — 209,303 — Federal agency collateralized mortgage obligations 185,003 — 185,003 — Federal agency mortgage-backed pools 178,736 — 178,736 — Corporate notes 10,698 — 10,698 — Total available for sale securities 600,348 — 600,348 — Hedged loans 209,161 — 209,161 — Forward sale commitments 135 — 135 — Interest rate swap agreements (1,801 ) — (1,801 ) — Commitments to originate loans — — — — |
Realized Gains and Losses Included in Net Income for Periods in Consolidated Statements of Income | Realized gains and losses included in net income for the periods are reported in the condensed consolidated statements of income as follows: Non-interest Income Three Months Ended Total gains and losses from: March 31, 2019 March 31, 2018 Hedged loans $ (4,051 ) $ 2,768 Fair value interest rate swap agreements 4,051 (2,768 ) Derivative loan commitments 257 112 $ 257 $ 112 |
Other Assets Measured at Fair Value on Nonrecurring Basis | Certain other assets are measured at fair value on a non-recurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2019 Impaired loans $ 5,318 $ — $ — $ 5,318 Mortgage servicing rights 13,366 — — 13,366 December 31, 2018 Impaired loans $ 5,661 $ — $ — $ 5,661 Mortgage servicing rights 12,349 — — 12,349 |
Qualitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill | The following table presents qualitative information about unobservable inputs used in recurring and non-recurring Level 3 fair value measurements, other than goodwill. March 31, 2019 Fair Valuation Unobservable Range Value Technique Inputs (Weighted Average) Impaired loans $ 5,318 Collateral based measurement Discount to reflect current market 0 100 14.7 Mortgage servicing rights 13,366 Discounted cash flows Discount rate, 9.7%-10.0% ( 9.7 9.0 0.6 December 31, 2018 Fair Valuation Unobservable Range Value Technique Inputs (Weighted Average) Impaired loans $ 5,661 Collateral based Discount to reflect current market 0%-100% ( 15.5 Mortgage servicing rights 12,349 Discounted Discount rate, 10.2%-11.0% ( 10.3 9.3 0.6 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall (unaudited). March 31, 2019 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 86,131 $ 86,131 $ — $ — Interest-earning time deposits 15,987 — — — Investment securities, held to maturity 206,327 — 210,106 — Loans held for sale 1,979 — — 1,979 Loans (excluding loan level hedges), net 3,368,911 — — 3,267,463 Stock in FHLB 22,447 — 22,447 — Interest receivable 17,423 — 17,423 — Liabilities Non-interest bearing deposits $ 811,768 $ 811,768 $ — $ — Interest bearing deposits 3,076,255 — 3,005,839 — Borrowings 457,788 — 412,884 — Subordinated debentures 55,310 — 49,568 — Interest payable 2,471 — 2,471 — December 31, 2018 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Assets Cash and due from banks $ 58,492 $ 58,492 $ — $ — Interest-earning time deposits 15,744 — 15,542 — Investment securities, held to maturity 210,112 — 208,273 — Loans held for sale 1,038 — — 1,038 Loans (excluding loan level hedges), net 2,786,351 — — 2,681,741 Stock in FHLB 18,073 — 18,073 — Interest receivable 14,239 — 14,239 — Liabilities Non-interest bearing deposits $ 642,129 $ 642,129 $ — $ — Interest bearing deposits 2,497,247 — 2,377,274 — Borrowings 550,384 — 542,311 — Subordinated debentures 37,837 — 35,711 — Interest payable 2,031 — 2,031 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | March 31 December 31 2019 2018 Unrealized gain (loss) on securities available for sale $ 3,118 $ (8,561 ) Unamortized gain (loss) on securities held to maturity, previously transferred from AFS (28 ) 10 Unrealized loss on derivative instruments (2,866 ) (1,760 ) Tax effect (46 ) 2,167 Total accumulated other comprehensive income (loss) $ 178 $ (8,144 ) |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Summary of Regulatory Capital Requirement | Horizon and the Bank’s actual and required capital ratios as of March 31, 2019 and December 31, 2018 were as follows: Actual Required for Capital 1 Adequacy Purposes Required For Capital 1 Adequacy Purposes Well Capitalized 1 Corrective Action Amount Ratio Amount Ratio Amount Ratio Amount Ratio March 31, 2019 Total capital 1 Consolidated $ 509,214 13.25 % $ 307,362 8.00 % $ 403,412 10.50 % N/A N/A Bank 472,621 12.30 % 307,361 8.00 % 403,411 10.50 % $ 384,201 10.00 % Tier 1 capital 1 Consolidated 491,302 12.79 % 230,521 6.00 % 326,572 8.50 % N/A N/A Bank 454,709 11.84 % 230,520 6.00 % 326,570 8.50 % 307,360 8.00 % Common equity tier 1 capital 1 Consolidated 433,809 11.29 % 172,890 4.50 % 268,941 7.00 % N/A N/A Bank 454,709 11.84 % 172,890 4.50 % 268,940 7.00 % 249,730 6.50 % Tier 1 capital 1 Consolidated 491,302 11.85 % 165,789 4.00 % 165,789 4.00 % N/A N/A Bank 454,709 10.99 % 165,523 4.00 % 165,523 4.000 % 206,904 5.00 % December 31, 2018 Total capital 1 Consolidated $ 427,616 13.39 % $ 255,419 8.00 % $ 315,283 9.875 % N/A N/A Bank 396,755 12.43 % 255,419 8.00 % 315,283 9.875 % $ 319,274 10.00 % Tier 1 capital 1 Consolidated 409,760 12.83 % 191,565 6.00 % 251,429 7.875 % N/A N/A Bank 378,899 11.87 % 191,565 6.00 % 251,429 7.875 % 255,420 8.00 % Common equity tier 1 capital 1 Consolidated 371,297 11.63 % 143,673 4.50 % 203,537 6.375 % N/A N/A Bank 378,899 11.87 % 143,674 4.50 % 203,537 6.375 % 207,528 6.50 % Tier 1 capital 1 Consolidated 409,760 10.12 % 162,033 4.00 % 162,033 4.000 % N/A N/A Bank 378,899 9.34 % 162,327 4.00 % 162,327 4.000 % 202,908 5.00 % |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | May 15, 2018 | |
Schedule Of Accounting Policies [Line Items] | ||||
Shares, non-dilutive | 350,618 | 44,053 | ||
Reclassifications effect on net income | $ 0 | |||
Common stock, par value | $ 0 | |||
Operating Lease, Liability | $ 3,250 | $ 3,400 | ||
Operating Lease, Right-of-Use Asset | 3,500 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Schedule Of Accounting Policies [Line Items] | ||||
Operating Lease, Liability | 3,500 | |||
Operating Lease, Right-of-Use Asset | $ 3,500 |
Accounting Policies - Summary o
Accounting Policies - Summary of Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic earnings per share | ||
Net income | $ (10,816) | $ (12,804) |
Weighted average common shares outstanding | 38,822,543 | 38,306,395 |
Basic Earnings Per Share | $ 0.28 | $ 0.33 |
Diluted earnings per share | ||
Net income available to common shareholders | $ 10,816 | $ 12,804 |
Weighted average common shares outstanding | 38,822,543 | 38,306,395 |
Effect of dilutive securities: | ||
Weighted average common shares outstanding | 38,906,172 | 38,468,810 |
Diluted Earnings Per Share | $ 0.28 | $ 0.33 |
Restricted Stock [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive securities | 0 | 35,356 |
Stock Options [Member] | ||
Effect of dilutive securities: | ||
Effect of dilutive securities | 83,629 | 127,059 |
Accounting Policies - Summary_2
Accounting Policies - Summary of Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) | Jun. 15, 2018 | May 15, 2018 |
Accounting Policies [Abstract] | ||
Stock split ratio | 0.015 | 0.015 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 26, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Common stock, shares outstanding | 45,052,747 | 38,375,407 | |
Acquisition of goodwill | $ 145,690 | $ 119,880 | |
Salin Bank and Trust Company [Member] | |||
Business Acquisition [Line Items] | |||
Exchange ratio per share | 23907.50% | ||
Cash paid for each share | $ 87,417.17 | ||
Common stock, shares outstanding | 275,000 | ||
Common stock issued | 6,563,697 | ||
Market closing price per share | $ 15.65 | ||
Estimated transaction value | $ 126,700 | ||
Costs related to the acquisition | 4,600 | ||
Total purchase price | 126,722 | ||
Net intangible assets acquired | 21,111 | ||
Acquisition of goodwill | $ 25,810 | ||
Core deposit intangible amortization period | 10 years |
Acquisitions - Schedule of Fina
Acquisitions - Schedule of Final Purchase Price of Assets Acquired and Liabilities Assumed for Salin (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Mar. 26, 2019 | Dec. 31, 2018 |
Loans | |||
Goodwill | $ 145,690 | $ 119,880 | |
Salin Bancshares, Inc [Member] | |||
Assets | |||
Cash and due from banks | $ 152,745 | ||
Investment securities, available for sale | 54,706 | ||
Loans | |||
Total loans | 571,819 | ||
Premises and equipment, net | 23,882 | ||
FRB and FHLB stock | 3,571 | ||
Goodwill | 25,810 | ||
Core deposit intangible | 21,111 | ||
Interest receivable | 2,488 | ||
Other assets | 107,611 | ||
Total assets purchased | 963,743 | ||
Common shares issued | 102,722 | ||
Cash paid | 24,000 | ||
Total purchase price | 126,722 | ||
Deposits | |||
Non-interest bearing | 188,744 | ||
NOW accounts | 207,567 | ||
Savings and money market | 274,504 | ||
Certificates of deposit | 70,652 | ||
Total deposits | 741,467 | ||
Borrowings | 70,495 | ||
Subordinated debentures | 17,443 | ||
Interest payable | 826 | ||
Other liabilities | 6,790 | ||
Total liabilities assumed | 837,021 | ||
Salin Bancshares, Inc [Member] | Residential Mortgage [Member] | |||
Loans | |||
Total loans | 136,089 | ||
Salin Bancshares, Inc [Member] | Commercial [Member] | |||
Loans | |||
Total loans | 350,916 | ||
Salin Bancshares, Inc [Member] | Consumer [Member] | |||
Loans | |||
Total loans | $ 84,814 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquired Loans Accounted for in Accordance with ASC 310-30 (Detail) - Salin Bancshares, Inc [Member] $ in Thousands | Mar. 26, 2019USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually required principal and interest at acquisition | $ 22,209 |
Contractual cash flows not expected to be collected (nonaccretable differences) | 8,632 |
Expected cash flows at acquisition | 13,577 |
Interest component of expected cash flows (accretable discount) | 1,333 |
Fair value of acquired loans accounted for under ASC 310-30 | $ 12,244 |
Acquisitions - Pro Forma Result
Acquisitions - Pro Forma Result of Comparable Prior Reporting Period (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Net Interest Income | $ 42,182 | $ 40,619 |
Provision for loan losses | 664 | 1,167 |
Net Interest Income after Provision for Loan Losses | 41,518 | 39,452 |
Non-interest Income | 9,126 | 9,999 |
Non-interest Expense | 42,152 | 33,169 |
Income before Income Taxes | 8,492 | 16,282 |
Income Tax Expense | 2,017 | 2,465 |
Net Income | 6,475 | 13,817 |
Net Income Available to Common Shareholders | $ 6,475 | $ 13,817 |
Basic Earnings Per Share | $ 0.17 | $ 0.36 |
Diluted Earnings Per Share | $ 0.17 | $ 0.36 |
Securities - Fair Value of Secu
Securities - Fair Value of Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | $ 684,023 | $ 608,909 |
Gross Unrealized Gains | 7,815 | 2,308 |
Gross Unrealized Losses | (4,696) | (10,869) |
Available-for-sale Securities, Fair Value | 687,142 | 600,348 |
Held-to-maturity, Amortized Cost | 206,327 | 210,112 |
Held-to-maturity, Gross Unrealized Gains | 4,213 | 1,853 |
Held-to-maturity, Gross Unrealized Losses | (434) | (3,692) |
Held-to-maturity, Fair Value | 210,106 | 208,273 |
State and Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 245,577 | 210,386 |
Gross Unrealized Gains | 5,266 | 1,495 |
Gross Unrealized Losses | (1,083) | (2,578) |
Available-for-sale Securities, Fair Value | 249,760 | 209,303 |
Held-to-maturity, Amortized Cost | 187,847 | 191,269 |
Held-to-maturity, Gross Unrealized Gains | 4,053 | 1,773 |
Held-to-maturity, Gross Unrealized Losses | (330) | (3,366) |
Held-to-maturity, Fair Value | 191,570 | 189,676 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 212,829 | 187,563 |
Gross Unrealized Gains | 1,774 | 625 |
Gross Unrealized Losses | (1,560) | (3,185) |
Available-for-sale Securities, Fair Value | 213,043 | 185,003 |
Held-to-maturity, Amortized Cost | 5,019 | 5,144 |
Held-to-maturity, Gross Unrealized Gains | 8 | 6 |
Held-to-maturity, Gross Unrealized Losses | (48) | (120) |
Held-to-maturity, Fair Value | 4,979 | 5,030 |
Federal Agency Mortgage-backed Pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 193,932 | 183,479 |
Gross Unrealized Gains | 294 | 80 |
Gross Unrealized Losses | (1,961) | (4,823) |
Available-for-sale Securities, Fair Value | 192,265 | 178,736 |
Held-to-maturity, Amortized Cost | 13,461 | 13,699 |
Held-to-maturity, Gross Unrealized Gains | 152 | 74 |
Held-to-maturity, Gross Unrealized Losses | (56) | (206) |
Held-to-maturity, Fair Value | 13,557 | 13,567 |
U.S. Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 14,087 | 16,815 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (92) | (208) |
Available-for-sale Securities, Fair Value | 13,995 | 16,608 |
Corporate Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 17,598 | 10,666 |
Gross Unrealized Gains | 481 | 107 |
Gross Unrealized Losses | (75) | |
Available-for-sale Securities, Fair Value | $ 18,079 | $ 10,698 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities Available for Sale and Held to Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost within one year | $ 29,589 | $ 20,532 |
Amortized cost one to five years | 52,250 | 42,476 |
Amortized cost for five to ten years | 100,190 | 107,839 |
Amortized cost for after ten years | 95,233 | 67,020 |
Total amortized cost | 277,262 | 237,867 |
Total available for sale investment securities, Amortized Cost | 684,023 | 608,909 |
Within one year, amortized cost | 150 | 70 |
One to five years, amortized cost | 50,317 | 48,732 |
Five to ten years, amortized cost | 99,413 | 101,809 |
After ten years, amortized cost | 37,967 | 40,658 |
Total amortized cost | 187,847 | 191,269 |
Total held to maturity investment securities, amortized cost | 206,327 | 210,112 |
Fair value within one year | 29,552 | 20,448 |
Fair value for one to five years | 51,759 | 41,705 |
Fair value for five to ten years | 102,334 | 107,107 |
Fair value for after ten years | 98,189 | 67,349 |
Total fair value | 281,834 | 236,609 |
Investment securities, available for sale | 687,142 | 600,348 |
Within one year, fair value | 150 | 70 |
One to five years, fair value | 51,152 | 49,324 |
five to ten years, fair value | 101,178 | 101,533 |
After ten years, fair value | 37,207 | 38,749 |
Total fair value | 189,687 | 189,676 |
Held-to-maturity, Fair Value | 210,106 | 208,273 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 212,829 | 187,563 |
Total held to maturity investment securities, amortized cost | 5,019 | 5,144 |
Investment securities, available for sale | 213,043 | 185,003 |
Held-to-maturity, Fair Value | 4,979 | 5,030 |
Federal Agency Mortgage-backed Pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total available for sale investment securities, Amortized Cost | 193,932 | 183,479 |
Total held to maturity investment securities, amortized cost | 13,461 | 13,699 |
Investment securities, available for sale | 192,265 | 178,736 |
Held-to-maturity, Fair Value | $ 13,557 | $ 13,567 |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses and Fair Value of Company's Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | $ 65,696 | $ 92,615 |
Fair value more than 12 months | 308,074 | 398,164 |
Total fair value | 373,770 | 490,779 |
Unrealized losses less than 12 months | (698) | (1,767) |
Unrealized losses more than 12 months | (6,216) | (12,794) |
Total unrealized losses | (6,914) | (14,561) |
U.S. Treasury and Federal Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value more than 12 months | 9,823 | 9,707 |
Total fair value | 9,823 | 9,707 |
Unrealized losses more than 12 months | (92) | (208) |
Total unrealized losses | (92) | (208) |
State and Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 65,265 | 75,163 |
Fair value more than 12 months | 44,783 | 106,335 |
Total fair value | 110,048 | 181,498 |
Unrealized losses less than 12 months | (697) | (1,628) |
Unrealized losses more than 12 months | (2,500) | (4,316) |
Total unrealized losses | (3,197) | (5,944) |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 431 | 6,450 |
Fair value more than 12 months | 100,886 | 106,257 |
Total fair value | 101,317 | 112,707 |
Unrealized losses less than 12 months | (1) | (25) |
Unrealized losses more than 12 months | (1,607) | (3,280) |
Total unrealized losses | (1,608) | (3,305) |
Federal Agency Mortgage-backed Pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 5,739 | |
Fair value more than 12 months | 152,582 | 175,865 |
Total fair value | 152,582 | 181,604 |
Unrealized losses less than 12 months | (39) | |
Unrealized losses more than 12 months | (2,017) | (4,990) |
Total unrealized losses | $ (2,017) | (5,029) |
Corporate Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value less than 12 months | 5,263 | |
Total fair value | 5,263 | |
Unrealized losses less than 12 months | (75) | |
Total unrealized losses | $ (75) |
Securities - Sales of Securitie
Securities - Sales of Securities Available for Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 17,587 | $ 9,836 |
Gross gains | 59 | 37 |
Gross losses | $ (44) | $ (26) |
Loans - Amounts of Loans (Detai
Loans - Amounts of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage warehouse | $ 71,944 | $ 74,120 | ||
Total loans | 3,621,057 | 3,013,332 | ||
Allowance for loan losses | (17,821) | (17,820) | $ (16,474) | $ (16,394) |
Loans, net | 3,603,236 | 2,995,512 | ||
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 2,089,579 | 1,721,590 | ||
Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Real Estate, Total | 819,824 | 668,141 | ||
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 639,710 | 549,481 | ||
Working Capital and Equipment [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 924,435 | 804,083 | ||
Real Estate Including Agriculture [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 1,076,077 | 834,037 | ||
Tax Exempt Loans Receivable [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 60,062 | 48,975 | ||
Other Commercial Loans [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 29,005 | 34,495 | ||
1-4 Family [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Real Estate, Total | 808,401 | 659,754 | ||
Other Real Estate Loans [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Real Estate, Total | 11,423 | 8,387 | ||
Auto [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 331,572 | 327,413 | ||
Recreation Consumer Loans Receivable [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 14,262 | 13,975 | ||
Real Estate Home Improvement Loans Receivable [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 40,998 | 39,587 | ||
Home Equity Loan [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 245,940 | 163,209 | ||
Unsecured Debt [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | 4,124 | 4,043 | ||
Other Consumer Loans [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial/Consumer, Total | $ 2,814 | $ 1,254 |
Loans - Additional Information
Loans - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Period of loan sold | 30 days |
Minimum period seldom held | 90 days |
Mortgage warehousing maximum pay off period | 30 days |
Loans - Recorded Investment of
Loans - Recorded Investment of Individual Loan Categories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | $ 3,624,161 | $ 3,016,771 | ||
Net loans | 3,606,340 | 2,998,951 | ||
Interest Due | 12,445 | 9,793 | ||
Deferred Fees / (Costs) | (3,104) | (3,439) | ||
Recorded Investment | 3,633,502 | 3,023,125 | ||
Recorded Investment | 3,615,681 | 3,005,305 | ||
Allowance for loan losses | (17,821) | (17,820) | $ (16,474) | $ (16,394) |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 2,093,244 | 1,725,369 | ||
Interest Due | 7,187 | 5,596 | ||
Deferred Fees / (Costs) | (3,665) | (3,779) | ||
Recorded Investment | 2,096,766 | 1,727,186 | ||
Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 893,711 | 744,286 | ||
Interest Due | 2,869 | 2,383 | ||
Deferred Fees / (Costs) | (1,943) | (2,025) | ||
Recorded Investment | 894,637 | 744,644 | ||
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 637,206 | 547,116 | ||
Interest Due | 2,389 | 1,814 | ||
Deferred Fees / (Costs) | 2,504 | 2,365 | ||
Recorded Investment | 642,099 | 551,295 | ||
Owner Occupied Real Estate [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 676,517 | 561,463 | ||
Interest Due | 975 | 1,240 | ||
Deferred Fees / (Costs) | (1,687) | (1,629) | ||
Recorded Investment | 675,805 | 561,074 | ||
Non Owner Occupied Real Estate [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 833,803 | 717,814 | ||
Interest Due | 1,645 | 1,063 | ||
Deferred Fees / (Costs) | (1,666) | (1,839) | ||
Recorded Investment | 833,782 | 717,038 | ||
Residential Spec Homes [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 10,221 | 5,199 | ||
Interest Due | 27 | 13 | ||
Deferred Fees / (Costs) | (3) | (2) | ||
Recorded Investment | 10,245 | 5,210 | ||
Development & Spec Land [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 75,079 | 46,547 | ||
Interest Due | 249 | 131 | ||
Deferred Fees / (Costs) | (16) | (12) | ||
Recorded Investment | 75,312 | 46,666 | ||
Commercial and Industrial [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 497,624 | 394,346 | ||
Interest Due | 4,291 | 3,149 | ||
Deferred Fees / (Costs) | (293) | (297) | ||
Recorded Investment | 501,622 | 397,198 | ||
Residential Mortgage [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 797,174 | 646,136 | ||
Interest Due | 2,346 | 1,861 | ||
Deferred Fees / (Costs) | (1,943) | (2,025) | ||
Recorded Investment | 797,577 | 645,972 | ||
Residential Construction [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 24,593 | 24,030 | ||
Interest Due | 43 | 42 | ||
Recorded Investment | 24,636 | 24,072 | ||
Mortgage Warehousing [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 71,944 | 74,120 | ||
Interest Due | 480 | 480 | ||
Recorded Investment | 72,424 | 74,600 | ||
Direct Installment [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 37,417 | 38,173 | ||
Interest Due | 135 | 103 | ||
Deferred Fees / (Costs) | 560 | 566 | ||
Recorded Investment | 38,112 | 38,842 | ||
Indirect Installment [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 317,629 | 314,177 | ||
Interest Due | 750 | 738 | ||
Recorded Investment | 318,379 | 314,915 | ||
Home Equity Loan [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan Balance | 282,160 | 194,766 | ||
Interest Due | 1,504 | 973 | ||
Deferred Fees / (Costs) | 1,944 | 1,799 | ||
Recorded Investment | $ 285,608 | $ 197,538 |
Accounting for Certain Loans _3
Accounting for Certain Loans Acquired in a Transfer - Amounts of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | $ 3,621,057 | $ 3,013,332 | ||
Allowance for loan losses | 17,821 | 17,820 | $ 16,474 | $ 16,394 |
Carrying Amount | 3,606,340 | 2,998,951 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 25,414 | 15,162 | ||
Allowance for loan losses | 296 | 60 | ||
Carrying Amount | 25,118 | 15,102 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 20,398 | 13,245 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 3,728 | 1,890 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 1,288 | 27 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Heartland [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 393 | 407 | ||
Carrying Amount | 393 | 407 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Heartland [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 229 | 232 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Heartland [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 164 | 175 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Summit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 755 | 878 | ||
Carrying Amount | 755 | 878 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Summit [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 220 | 323 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Summit [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 535 | 555 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Peoples Bancorp Inc [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 304 | 328 | ||
Carrying Amount | 304 | 328 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Peoples Bancorp Inc [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 260 | 270 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Peoples Bancorp Inc [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 44 | 58 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Kosciusko Financial Inc [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 875 | 901 | ||
Allowance for loan losses | 296 | |||
Carrying Amount | 579 | 901 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Kosciusko Financial Inc [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 712 | 746 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Kosciusko Financial Inc [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 163 | 155 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | LaPorte Bancorp Inc [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 1,570 | 1,727 | ||
Allowance for loan losses | 60 | |||
Carrying Amount | 1,570 | 1,667 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | LaPorte Bancorp Inc [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 708 | 753 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | LaPorte Bancorp Inc [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 836 | 947 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | LaPorte Bancorp Inc [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 26 | 27 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Lafayette Community Bancorp [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 2,204 | 3,080 | ||
Carrying Amount | 2,204 | 3,080 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Lafayette Community Bancorp [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 2,204 | 3,080 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Wolverine Bancorp Inc [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 5,736 | 7,841 | ||
Carrying Amount | 5,736 | 7,841 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Wolverine Bancorp Inc [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 5,736 | $ 7,841 | ||
Loans Purchased With Evidence of Credit Deterioration [Member] | Salin Bank and Trust Company [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 13,577 | |||
Carrying Amount | 13,577 | |||
Loans Purchased With Evidence of Credit Deterioration [Member] | Salin Bank and Trust Company [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 10,329 | |||
Loans Purchased With Evidence of Credit Deterioration [Member] | Salin Bank and Trust Company [Member] | Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 1,986 | |||
Loans Purchased With Evidence of Credit Deterioration [Member] | Salin Bank and Trust Company [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | $ 1,262 |
Accounting for Certain Loans _4
Accounting for Certain Loans Acquired in a Transfer - Accretable Yield or Income Expected to be Collected (Detail) - Loans Purchased With Evidence of Credit Deterioration [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | $ 2,652 | $ 5,165 |
Additions | 3,368 | |
Accretion | (215) | (642) |
Disposals | (190) | (53) |
Ending balance | 5,615 | 4,470 |
Heartland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 174 | 452 |
Accretion | (8) | (59) |
Ending balance | 166 | 393 |
Summit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 42 | 147 |
Accretion | (3) | (18) |
Disposals | (11) | (2) |
Ending balance | 28 | 127 |
Kosciusko Financial Inc [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 300 | 386 |
Accretion | (17) | (20) |
Ending balance | 283 | 366 |
LaPorte Bancorp Inc [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 829 | 980 |
Accretion | (29) | (40) |
Disposals | (7) | |
Ending balance | 800 | 933 |
Lafayette Community Bancorp [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 609 | 933 |
Accretion | (35) | (118) |
Disposals | (171) | (2) |
Ending balance | 403 | 813 |
Wolverine Bancorp Inc [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 698 | 2,267 |
Accretion | (123) | (387) |
Disposals | (8) | (42) |
Ending balance | 567 | $ 1,838 |
Salin Bank and Trust Company [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Additions | 3,368 | |
Ending balance | $ 3,368 |
Accounting for Certain Loans _5
Accounting for Certain Loans Acquired in a Transfer - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Total provision charged to operating expense | $ 364,000 | $ 567,000 |
Loans Purchased With Evidence of Credit Deterioration [Member] | ||
Business Acquisition [Line Items] | ||
Total provision charged to operating expense | $ 296,000 | $ 0 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Actual loss history experienced by the Company | 1 year |
Maximum [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Actual loss history experienced by the Company | 5 years |
Allowance for loan losses charge down family first and junior lien mortgages past due period | 180 days |
Allowance for loan losses charge down unsecured open end loans past due period | 90 days |
Allowance for loan losses charge down other secured loans past due period | 90 days |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Balance at beginning of the period | $ 17,820 | $ 16,394 |
Total loans charged-off | 661 | 716 |
Total loan recoveries | 298 | 229 |
Net loans charged-off | 363 | 487 |
Total provision charged to operating expense | 364 | 567 |
Balance at the end of the period | 17,821 | 16,474 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 77 | 13 |
Total loan recoveries | 16 | 51 |
Total provision charged to operating expense | 1,122 | (1,291) |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 1 | 13 |
Total loan recoveries | 12 | |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 64 | |
Total loan recoveries | 6 | 5 |
Commercial [Member] | Residential Spec Homes [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loan recoveries | 2 | 2 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 12 | |
Total loan recoveries | 8 | 32 |
Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 12 | |
Total loan recoveries | 27 | 6 |
Total provision charged to operating expense | (107) | (252) |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 12 | |
Total loan recoveries | 27 | 6 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 584 | 691 |
Total loan recoveries | 255 | 172 |
Total provision charged to operating expense | (651) | 2,110 |
Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 28 | 55 |
Total loan recoveries | 11 | 11 |
Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 540 | 505 |
Total loan recoveries | 201 | 139 |
Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans charged-off | 16 | 131 |
Total loan recoveries | $ 43 | $ 22 |
Allowance for Loan Losses - A_2
Allowance for Loan Losses - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total ending allowance balance | $ 17,821 | $ 17,820 | $ 16,474 | $ 16,394 |
Total ending loans balance | 6,233 | $ 6,824 | ||
Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Individually evaluated for impairment | 915 | 1,035 | ||
Allowance For Loan Losses, Collectively evaluated for impairment | 16,906 | 16,785 | ||
Total ending allowance balance | 17,821 | 17,820 | ||
Commercial [Member] | Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Individually evaluated for impairment | 915 | 1,035 | ||
Allowance For Loan Losses, Collectively evaluated for impairment | 10,641 | 9,460 | ||
Total ending allowance balance | 11,556 | 10,495 | ||
Real Estate [Member] | Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Collectively evaluated for impairment | 1,588 | 1,676 | ||
Total ending allowance balance | 1,588 | 1,676 | ||
Consumer [Member] | Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Collectively evaluated for impairment | 3,663 | 4,643 | ||
Total ending allowance balance | 3,663 | 4,643 | ||
Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Individually evaluated for impairment | 6,233 | 6,708 | ||
Loans: Collectively evaluated for impairment | 3,617,928 | 3,010,063 | ||
Total ending loans balance | 3,624,161 | 3,016,771 | ||
Loans [Member] | Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Individually evaluated for impairment | 6,233 | 6,708 | ||
Loans: Collectively evaluated for impairment | 2,087,011 | 1,718,661 | ||
Total ending loans balance | 2,093,244 | 1,725,369 | ||
Loans [Member] | Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Collectively evaluated for impairment | 821,767 | 670,166 | ||
Total ending loans balance | 821,767 | 670,166 | ||
Loans [Member] | Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Collectively evaluated for impairment | 637,206 | 547,116 | ||
Total ending loans balance | 637,206 | 547,116 | ||
Mortgage Warehousing [Member] | Allowance for Loan Losses [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance For Loan Losses, Collectively evaluated for impairment | 1,014 | 1,006 | ||
Total ending allowance balance | 1,014 | 1,006 | ||
Mortgage Warehousing [Member] | Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans: Collectively evaluated for impairment | 71,944 | 74,120 | ||
Total ending loans balance | $ 71,944 | $ 74,120 |
Non-performing Loans and Impa_3
Non-performing Loans and Impaired Loans - Non-accrual, Loans Past Due Over 90 Days Still on Accrual, and Troubled Debt Restructured ("TDRs") by Class of Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | $ 15,313 | $ 11,548 |
Loans Past Due Over 90 Days Still Accruing | 192 | 568 |
Non-Performing TDRs | 1,349 | 1,057 |
Performing TDRs | 2,532 | 2,002 |
Total Non-Performing Loans | 19,386 | 15,175 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 8,504 | 6,094 |
Loans Past Due Over 90 Days Still Accruing | 208 | |
Non-Performing TDRs | 793 | 492 |
Performing TDRs | 453 | 109 |
Total Non-Performing Loans | 9,750 | 6,903 |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 3,372 | 3,413 |
Non-Performing TDRs | 389 | |
Performing TDRs | 139 | 109 |
Total Non-Performing Loans | 3,900 | 3,522 |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 3,041 | 554 |
Non-Performing TDRs | 404 | 492 |
Performing TDRs | 314 | |
Total Non-Performing Loans | 3,759 | 1,046 |
Commercial [Member] | Development & Spec Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 177 | 68 |
Total Non-Performing Loans | 177 | 68 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 1,653 | 2,059 |
Loans Past Due Over 90 Days Still Accruing | 208 | |
Total Non-Performing Loans | 1,653 | 2,267 |
Commercial [Member] | Residential Spec Homes [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 261 | |
Total Non-Performing Loans | 261 | |
Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 3,691 | 2,846 |
Loans Past Due Over 90 Days Still Accruing | 140 | 180 |
Non-Performing TDRs | 416 | 423 |
Performing TDRs | 1,748 | 1,558 |
Total Non-Performing Loans | 5,995 | 5,007 |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 3,691 | 2,846 |
Loans Past Due Over 90 Days Still Accruing | 140 | 180 |
Non-Performing TDRs | 416 | 423 |
Performing TDRs | 1,748 | 1,558 |
Total Non-Performing Loans | 5,995 | 5,007 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 3,118 | 2,608 |
Loans Past Due Over 90 Days Still Accruing | 52 | 180 |
Non-Performing TDRs | 140 | 142 |
Performing TDRs | 331 | 335 |
Total Non-Performing Loans | 3,641 | 3,265 |
Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 55 | 35 |
Loans Past Due Over 90 Days Still Accruing | 17 | |
Total Non-Performing Loans | 72 | 35 |
Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 986 | 916 |
Loans Past Due Over 90 Days Still Accruing | 30 | 173 |
Total Non-Performing Loans | 1,016 | 1,089 |
Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 2,077 | 1,657 |
Loans Past Due Over 90 Days Still Accruing | 5 | 7 |
Non-Performing TDRs | 140 | 142 |
Performing TDRs | 331 | 335 |
Total Non-Performing Loans | $ 2,553 | $ 2,141 |
Non-performing Loans and Impa_4
Non-performing Loans and Impaired Loans - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2019USD ($)ConsecutivePayment | Dec. 31, 2018USD ($) | |
Financing Receivable, Modifications [Line Items] | ||
Non-accrual loans | $ 15,313,000 | $ 11,548,000 |
Non-performing TDRs | $ 1,300,000 | |
Loan delinquency period | 90 days | |
Minimum period required for satisfactory performance to return loan from non-accrual to accrual status | 6 months | |
Restructured loan reported in TDRs | $ 3,900,000 | |
Restructured loan returned to accruing status number of Consecutive Payments of loan | ConsecutivePayment | 6 | |
Specific reserves allocated to troubled debt restructuring | $ 20,000 | |
Number TDRs returned to accrual status | ConsecutivePayment | 315,000 | |
Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured loan reported in TDRs | $ 2,500,000 | |
Loans Purchased With Evidence of Credit Deterioration [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Non-accrual loans | 3,100,000 | |
Non-performing TDRs | $ 629,000,000,000 | |
Minimum [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Loan delinquency period | 90 days | |
Delay or shortfall in payments of loan | 30 days | |
Loans with an aggregate credit exposure | $ 1,000,000 | |
Loans classified as TDR after a period | 90 days | |
Minimum [Member] | Good Pass [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of consecutive years of profit Unaudited Financial Information for Good Pass Rating | 5 years | |
Number of years of Satisfactory Relationship with bank for Good Pass Rating | 5 years | |
Minimum [Member] | Satisfactory Pass [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of consecutive years of profit for Good Pass Rating | 3 years | |
Maximum [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Loans with an aggregate credit exposure | $ 3,500,000 | |
Loans classified as TDR after a period | 120 days | |
Minimum number of years of Satisfactory Repayment required for Satisfactory Pass Rating | 2 years |
Non-performing Loans and Impa_5
Non-performing Loans and Impaired Loans - Commercial Loans Individually Evaluated for Impairment by Class of Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance total | $ 6,220 | $ 6,777 |
Total ending loans balance | 6,233 | 6,824 |
Allowance For Loan Loss Allocated | 915 | 184 |
Average Balance in Impaired Loans total | 6,644 | 7,987 |
Cash/Accrual Interest Income Recognized, Total | 102 | 42 |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance With no recorded allowance | 5,098 | 5,884 |
Recorded Investment With no recorded allowance | 5,111 | 5,931 |
Average Balance in Impaired Loans With no recorded allowance | 5,519 | 7,087 |
Cash/Accrual Interest Income Recognized, With no recorded allowance | 102 | 42 |
Unpaid Principal Balance With an allowance recorded | 1,122 | |
Recorded Investment With an allowance recorded | 1,122 | |
Allowance For Loan Loss Allocated | 915 | |
Average Balance in Impaired Loans With an allowance recorded | 1,125 | |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance With no recorded allowance | 3,275 | 4,038 |
Recorded Investment With no recorded allowance | 3,269 | 4,063 |
Average Balance in Impaired Loans With no recorded allowance | 3,650 | 4,590 |
Cash/Accrual Interest Income Recognized, With no recorded allowance | 60 | 37 |
Unpaid Principal Balance With an allowance recorded | 355 | 893 |
Recorded Investment With an allowance recorded | 355 | 893 |
Allowance For Loan Loss Allocated | 25 | 184 |
Average Balance in Impaired Loans With an allowance recorded | 358 | 900 |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance With no recorded allowance | 840 | 1,033 |
Recorded Investment With no recorded allowance | 869 | 1,049 |
Average Balance in Impaired Loans With no recorded allowance | 875 | 975 |
Cash/Accrual Interest Income Recognized, With no recorded allowance | 32 | 5 |
Unpaid Principal Balance With an allowance recorded | 135 | |
Recorded Investment With an allowance recorded | 135 | |
Allowance For Loan Loss Allocated | 40 | |
Average Balance in Impaired Loans With an allowance recorded | 135 | |
Commercial [Member] | Development & Spec Land [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance With no recorded allowance | 66 | 76 |
Recorded Investment With no recorded allowance | 64 | 74 |
Average Balance in Impaired Loans With no recorded allowance | 65 | 75 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance With no recorded allowance | 656 | 737 |
Recorded Investment With no recorded allowance | 648 | 745 |
Average Balance in Impaired Loans With no recorded allowance | 668 | 1,447 |
Cash/Accrual Interest Income Recognized, With no recorded allowance | 7 | 0 |
Unpaid Principal Balance With an allowance recorded | 632 | 893 |
Recorded Investment With an allowance recorded | 632 | 893 |
Allowance For Loan Loss Allocated | 850 | 184 |
Average Balance in Impaired Loans With an allowance recorded | 632 | $ 900 |
Commercial [Member] | Residential Spec Homes [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance With no recorded allowance | 261 | |
Recorded Investment With no recorded allowance | 261 | |
Average Balance in Impaired Loans With no recorded allowance | 261 | |
Cash/Accrual Interest Income Recognized, With no recorded allowance | $ 3 |
Non-performing Loans and Impa_6
Non-performing Loans and Impaired Loans - Payment Status by Class of Loan (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 3,599,697 | $ 2,996,548 |
Total Past Due | 16,662 | 12,605 |
Loans Not Past Due | 24,464 | 20,334 |
Total | $ 3,624,161 | $ 3,016,771 |
Total Past Due, Percentage of Total Loans | 0.46% | 0.42% |
Loans Not Past Due, Percentage of Total Loans | 0.68% | 0.67% |
Current,Percentage of total loans | 99.32% | 99.33% |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 2,078,416 | $ 1,715,104 |
Total Past Due | 9,297 | 6,586 |
Loans Not Past Due | 14,828 | 10,265 |
Total | 2,093,244 | 1,725,369 |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 672,729 | 556,516 |
Total Past Due | 3,761 | 3,413 |
Loans Not Past Due | 3,788 | 4,947 |
Total | 676,517 | 561,463 |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 827,610 | 716,574 |
Total Past Due | 3,445 | 1,046 |
Loans Not Past Due | 6,193 | 1,240 |
Total | 833,803 | 717,814 |
Commercial [Member] | Residential Spec Homes [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 9,469 | 4,707 |
Total Past Due | 261 | |
Loans Not Past Due | 752 | 492 |
Total | 10,221 | 5,199 |
Commercial [Member] | Development & Spec Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 74,885 | 46,479 |
Total Past Due | 177 | 68 |
Loans Not Past Due | 194 | 68 |
Total | 75,079 | 46,547 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 493,723 | 390,828 |
Total Past Due | 1,653 | 2,059 |
Loans Not Past Due | 3,901 | 3,518 |
Total | 497,624 | 394,346 |
Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 887,385 | 739,650 |
Total Past Due | 4,107 | 3,269 |
Loans Not Past Due | 6,326 | 4,636 |
Total | 893,711 | 744,286 |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 790,848 | 641,500 |
Total Past Due | 4,107 | 3,269 |
Loans Not Past Due | 6,326 | 4,636 |
Total | 797,174 | 646,136 |
Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 24,593 | 24,030 |
Total | 24,593 | 24,030 |
Real Estate [Member] | Mortgage Warehousing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 71,944 | 74,120 |
Total | 71,944 | 74,120 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 633,896 | 541,794 |
Total Past Due | 3,258 | 2,750 |
Loans Not Past Due | 3,310 | 5,433 |
Total | 637,206 | 547,116 |
Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 37,345 | 38,027 |
Total Past Due | 55 | 35 |
Loans Not Past Due | 72 | 146 |
Total | 37,417 | 38,173 |
Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 316,613 | 311,494 |
Total Past Due | 986 | 916 |
Loans Not Past Due | 1,016 | 2,683 |
Total | 317,629 | 314,177 |
Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 279,938 | 192,162 |
Total Past Due | 2,217 | 1,799 |
Loans Not Past Due | 2,222 | 2,604 |
Total | 282,160 | 194,766 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 8,376 | $ 5,100 |
Total Past Due, Percentage of Total Loans | 0.23% | 0.17% |
30 - 59 Days Past Due [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 4,537 | $ 1,719 |
30 - 59 Days Past Due [Member] | Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 27 | 537 |
30 - 59 Days Past Due [Member] | Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,386 | 175 |
30 - 59 Days Past Due [Member] | Commercial [Member] | Residential Spec Homes [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 491 | 492 |
30 - 59 Days Past Due [Member] | Commercial [Member] | Development & Spec Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17 | |
30 - 59 Days Past Due [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,616 | 515 |
30 - 59 Days Past Due [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,910 | 1,131 |
30 - 59 Days Past Due [Member] | Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,910 | 1,131 |
30 - 59 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,929 | 2,250 |
30 - 59 Days Past Due [Member] | Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 67 | 93 |
30 - 59 Days Past Due [Member] | Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 906 | 1,396 |
30 - 59 Days Past Due [Member] | Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 956 | 761 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 1,604 | $ 2,061 |
Total Past Due, Percentage of Total Loans | 0.04% | 0.07% |
60 - 89 Days Past Due [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 994 | $ 1,752 |
60 - 89 Days Past Due [Member] | Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 997 | |
60 - 89 Days Past Due [Member] | Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 362 | 19 |
60 - 89 Days Past Due [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 632 | 736 |
60 - 89 Days Past Due [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 169 | 56 |
60 - 89 Days Past Due [Member] | Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 169 | 56 |
60 - 89 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 441 | 253 |
60 - 89 Days Past Due [Member] | Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 48 | 18 |
60 - 89 Days Past Due [Member] | Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 129 | 198 |
60 - 89 Days Past Due [Member] | Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 264 | 37 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 192 | $ 568 |
Total Past Due, Percentage of Total Loans | 0.01% | 0.02% |
Greater than 90 Days Past Due [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 208 | |
Greater than 90 Days Past Due [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 208 | |
Greater than 90 Days Past Due [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 140 | 180 |
Greater than 90 Days Past Due [Member] | Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 140 | 180 |
Greater than 90 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 52 | 180 |
Greater than 90 Days Past Due [Member] | Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17 | |
Greater than 90 Days Past Due [Member] | Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 30 | 173 |
Greater than 90 Days Past Due [Member] | Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 5 | $ 7 |
Non-performing Loans and Impa_7
Non-performing Loans and Impaired Loans - Loans by Credit Grades (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 3,624,161 | $ 3,016,771 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,093,244 | 1,725,369 |
Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 676,517 | 561,463 |
Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 833,803 | 717,814 |
Commercial [Member] | Residential Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,221 | 5,199 |
Commercial [Member] | Development & Spec Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 75,079 | 46,547 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 497,624 | 394,346 |
Commercial [Member] | Residential Spec Homes [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,221 | 5,199 |
Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 893,711 | 744,286 |
Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 797,174 | 646,136 |
Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 24,593 | 24,030 |
Real Estate [Member] | Mortgage Warehousing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 71,944 | 74,120 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 637,206 | 547,116 |
Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 37,417 | 38,173 |
Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 317,629 | 314,177 |
Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 282,160 | 194,766 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 3,561,168 | $ 2,954,944 |
Percentage of total loans | 98.26% | 97.95% |
Pass [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 2,039,184 | $ 1,671,634 |
Pass [Member] | Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 656,354 | 538,177 |
Pass [Member] | Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 815,974 | 702,269 |
Pass [Member] | Commercial [Member] | Residential Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9,960 | 5,199 |
Pass [Member] | Commercial [Member] | Development & Spec Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 74,805 | 46,382 |
Pass [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 482,091 | 379,607 |
Pass [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 888,200 | 739,459 |
Pass [Member] | Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 791,663 | 641,309 |
Pass [Member] | Real Estate [Member] | Residential Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 24,593 | 24,030 |
Pass [Member] | Real Estate [Member] | Mortgage Warehousing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 71,944 | 74,120 |
Pass [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 633,784 | 543,851 |
Pass [Member] | Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 37,345 | 38,138 |
Pass [Member] | Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 316,613 | 313,088 |
Pass [Member] | Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 279,826 | 192,625 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 21,265 | $ 23,052 |
Percentage of total loans | 0.59% | 0.76% |
Special Mention [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 21,265 | $ 23,052 |
Special Mention [Member] | Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,046 | 6,618 |
Special Mention [Member] | Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9,048 | 9,682 |
Special Mention [Member] | Commercial [Member] | Development & Spec Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 97 | 97 |
Special Mention [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,074 | 6,655 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 41,728 | $ 38,775 |
Percentage of total loans | 1.15% | 1.29% |
Substandard [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 32,795 | $ 30,683 |
Substandard [Member] | Commercial [Member] | Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 15,117 | 16,668 |
Substandard [Member] | Commercial [Member] | Non Owner Occupied Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,781 | 5,863 |
Substandard [Member] | Commercial [Member] | Development & Spec Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 177 | 68 |
Substandard [Member] | Commercial [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,459 | 8,084 |
Substandard [Member] | Commercial [Member] | Residential Spec Homes [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 261 | |
Substandard [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,511 | 4,827 |
Substandard [Member] | Real Estate [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,511 | 4,827 |
Substandard [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,422 | 3,265 |
Substandard [Member] | Consumer [Member] | Direct Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 72 | 35 |
Substandard [Member] | Consumer [Member] | Indirect Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,016 | 1,089 |
Substandard [Member] | Consumer [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 2,334 | $ 2,141 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percentage of total loans | 0.00% | 0.00% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Operating Lease, Right-of-Use Asset | $ 3,500,000 | |
Operating Lease, Liability | $ 3,250,000 | $ 3,400,000 |
Operating Lease, Expense | $ 148,000 | |
Operating leases terms | 7 years | |
Weighted average discount rate, percentage | 2.57% | |
Other Assets [Member] | ||
Operating Lease, Right-of-Use Asset | $ 3,300,000 | |
Other Liabilities [Member] | ||
Operating Lease, Liability | $ 3,400,000 |
Leases - Schedule Of Future Min
Leases - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
2020 | $ 484 | |
2021 | 476 | |
2022 | 483 | |
2023 | 504 | |
2024 and thereafter | 1,483 | |
Total lease payments | 3,430 | |
Less: Interest | (180) | |
Present value of lease liabilities | $ 3,250 | $ 3,400 |
Repurchase Agreements - Summary
Repurchase Agreements - Summary of Repurchase Agreements Accounted as Secured Borrowings (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | $ 90,885 |
Securities pledged for Repurchase Agreements, Total | 121,593 |
Federal Agency Collateralized Mortgage Obligations [Member] | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements, Total | 33,798 |
Federal Agency Mortgage-backed Pools [Member] | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements, Total | 87,795 |
Remaining Contractual Maturity of the Agreements, Overnight and Continuous [Member] | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Repurchase Agreements | 90,885 |
Securities pledged for Repurchase Agreements, Total | 121,593 |
Remaining Contractual Maturity of the Agreements, Overnight and Continuous [Member] | Federal Agency Collateralized Mortgage Obligations [Member] | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements, Total | 33,798 |
Remaining Contractual Maturity of the Agreements, Overnight and Continuous [Member] | Federal Agency Mortgage-backed Pools [Member] | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities pledged for Repurchase Agreements, Total | $ 87,795 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
LIBOR period | 3 months | |
Weighted average fixed rate | 5.81% | |
Recorded period of effectiveness of cash flow hedges on net income | 12 months | |
Recorded period of effectiveness of fair value hedges on net income | 12 months | |
Recorded period of effectiveness of fair value of derivatives on net income | 12 months | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
LIBOR period | 1 month | |
Weighted average fixed rate | 2.81% | |
LaPorte Bancorp Inc [Member] | ||
Derivative [Line Items] | ||
LIBOR period | 1 month | |
Weighted average fixed rate | 2.31% | |
Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional amount of interest | $ 30.5 | $ 30.5 |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount of interest | 50 | |
Cash Flow Hedging [Member] | LaPorte Bancorp Inc [Member] | ||
Derivative [Line Items] | ||
Notional amount of interest | 30 | 30 |
Derivative in Fair Value Hedging Relationship [Member] | ||
Derivative [Line Items] | ||
Notional amount of interest | $ 234.3 | $ 209.2 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | $ 4,485 | $ 177 |
Total Liability Derivatives | 6,959 | 1,802 |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | 4,093 | 42 |
Total Liability Derivatives | 6,959 | 1,802 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contracts One [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liability Derivatives | 4,093 | 42 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contracts Two [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liability Derivatives | 2,866 | 1,760 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Contracts Two [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | 4,093 | 42 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | 392 | 135 |
Total Liability Derivatives | 0 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | Mortgage Loan Contracts [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Liability Derivatives | 0 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | Mortgage Loan Contracts [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total Asset Derivatives | $ 392 | $ 135 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Derivative Instruments on Condensed Consolidated Statements of Income Derivative in Cash Flow Hedging Relationship (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Comprehensive Income on Derivative (Effective Portion) | $ (1,106) | $ 759 |
Cash Flow Hedging [Member] | Interest Rate Contracts One [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Comprehensive Income on Derivative (Effective Portion) | $ (874) | $ 358 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Income Derivative in Fair Value Hedging Relationship (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Income - Loans [Member] | Derivative in Fair Value Hedging Relationship [Member] | Interest Rate Contracts One [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized on Derivative | $ (4,051) | $ 2,768 |
Interest Income - Loans [Member] | Derivative in Fair Value Hedging Relationship [Member] | Interest Rate Contracts Two [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized on Derivative | 4,051 | (2,768) |
Derivatives Not Designated as Hedging Instruments [Member] | Other income - Gain on Sale of Loans [Member] | Mortgage Loan Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized on Derivative | $ 257 | $ 112 |
Disclosures about Fair Value _3
Disclosures about Fair Value of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | $ 687,142 | $ 600,348 |
U.S. Treasury and Federal Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 13,995 | 16,608 |
State and Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 249,760 | 209,303 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 213,043 | 185,003 |
Federal Agency Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 192,265 | 178,736 |
Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 18,079 | 10,698 |
Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 687,142 | 600,348 |
Recurring Basis [Member] | U.S. Treasury and Federal Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 13,995 | 16,608 |
Recurring Basis [Member] | State and Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 249,760 | 209,303 |
Recurring Basis [Member] | Federal Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 213,043 | 185,003 |
Recurring Basis [Member] | Federal Agency Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 192,265 | 178,736 |
Recurring Basis [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 18,079 | 10,698 |
Recurring Basis [Member] | Hedged Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 234,325 | 209,161 |
Recurring Basis [Member] | Forward Sale Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 392 | 135 |
Recurring Basis [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | (6,958) | (1,801) |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 687,142 | 600,348 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury and Federal Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 13,995 | 16,608 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 249,760 | 209,303 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 213,043 | 185,003 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Federal Agency Mortgage-backed Pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 192,265 | 178,736 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities, Fair Value | 18,079 | 10,698 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Hedged Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 234,325 | 209,161 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Forward Sale Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | 392 | 135 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, fair value | $ (6,958) | $ (1,801) |
Disclosures about Fair Value _4
Disclosures about Fair Value of Assets and Liabilities - Realized Gains and Losses included in Net Income for Periods in Consolidated Statements of Income (Detail) - Non Interest Income Total Gains and Losses [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Included in net income | $ 257 | $ 112 |
Hedged Loans [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Included in net income | (4,051) | 2,768 |
Interest Rate Swap [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Included in net income | 4,051 | (2,768) |
Derivative Loan Commitments [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Included in net income | $ 257 | $ 112 |
Disclosures about Fair Value _5
Disclosures about Fair Value of Assets and Liabilities - Other Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | $ 5,318 | $ 5,661 |
Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | 13,366 | 12,349 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | 5,318 | 5,661 |
Fair Value, Measurements, Nonrecurring [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | 13,366 | 12,349 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | 5,318 | 5,661 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans | $ 13,366 | $ 12,349 |
Disclosures about Fair Value _6
Disclosures about Fair Value of Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Reduced in carrying amount of mortgage servicing rights | $ 14,000 | $ 6,000 |
Disclosures about Fair Value _7
Disclosures about Fair Value of Assets and Liabilities - Qualitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)ConsecutivePayment | Dec. 31, 2018USD ($)ConsecutivePayment | |
Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 10 | |
Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ | $ 5,318 | $ 5,661 |
Valuation Technique | Collateral based measurement | Collateral based measurement |
Impaired loans | Discount to reflect current market conditions and ultimate collectability | Discount to reflect current market conditions and ultimate collectability |
Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ | $ 13,366 | $ 12,349 |
Valuation Technique | Discounted cash flows | Discounted cash flows |
Impaired loans | Discount rate, Constant prepayment rate, Probability of default | Discount rate, Constant prepayment rate, Probability of default |
Minimum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.00% | 0.00% |
Minimum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 9.7 | 10.2 |
Minimum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Constant Prepayment Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 8.9 | 9.1 |
Minimum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Default Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 0.1 | 0.1 |
Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 100.00% | 100.00% |
Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 10 | 11 |
Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Constant Prepayment Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 21.8 | 21.9 |
Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Default Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 3.1 | 2.8 |
Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 14.70% | 15.50% |
Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Discount Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 9.7 | 10.3 |
Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Constant Prepayment Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 9 | 9.3 |
Weighted Average [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage Servicing Rights [Member] | Measurement Input, Default Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Unobservable inputs | 0.6 | 0.6 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 86,131 | $ 58,492 |
Interest-earning time deposits | 15,987 | 15,744 |
Investment securities, held to maturity | 206,327 | 210,112 |
Loans held for sale | 1,979 | 1,038 |
Loans (excluding loan level hedges), net | 3,615,681 | 3,005,305 |
Stock in FHLB | 22,447 | 18,073 |
Interest receivable | 17,423 | 14,239 |
Liabilities | ||
Non-interest bearing deposits | 811,768 | 642,129 |
Interest bearing deposits | 3,076,255 | 2,497,247 |
Borrowings | 457,788 | 550,384 |
Subordinated debentures | 55,310 | 37,837 |
Interest payable | 2,471 | 2,031 |
Carrying Amount [Member] | ||
Assets | ||
Cash and due from banks | 86,131 | 58,492 |
Interest-earning time deposits | 15,987 | 15,744 |
Investment securities, held to maturity | 206,327 | 210,112 |
Loans held for sale | 1,979 | 1,038 |
Loans (excluding loan level hedges), net | 3,368,911 | 2,786,351 |
Stock in FHLB | 22,447 | 18,073 |
Interest receivable | 17,423 | 14,239 |
Liabilities | ||
Non-interest bearing deposits | 811,768 | 642,129 |
Interest bearing deposits | 3,076,255 | 2,497,247 |
Borrowings | 457,788 | 550,384 |
Subordinated debentures | 55,310 | 37,837 |
Interest payable | 2,471 | 2,031 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Cash and due from banks | 86,131 | 58,492 |
Liabilities | ||
Non-interest bearing deposits | 811,768 | 642,129 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Interest-earning time deposits | 15,542 | |
Investment securities, held to maturity | 210,106 | 208,273 |
Stock in FHLB | 22,447 | 18,073 |
Interest receivable | 17,423 | 14,239 |
Liabilities | ||
Interest bearing deposits | 3,005,839 | 2,377,274 |
Borrowings | 412,884 | 542,311 |
Subordinated debentures | 49,568 | 35,711 |
Interest payable | 2,471 | 2,031 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Loans held for sale | 1,979 | 1,038 |
Loans (excluding loan level hedges), net | $ 3,267,463 | $ 2,681,741 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax effect | $ (46) | $ 2,167 |
Total accumulated other comprehensive income (loss) | 178 | (8,144) |
Unrealized gain (loss) on securities available for sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | 3,118 | (8,561) |
Unamortized gain (loss) on securities held to maturity, previously transferred from AFS [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | (28) | 10 |
Unrealized loss on derivative instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), before tax | $ (2,866) | $ (1,760) |
Regulatory Capital - Summary of
Regulatory Capital - Summary of Regulatory Capital Requirement (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 509,214 | $ 427,616 |
Total capital (to risk-weighted assets), Actual, Ratio | 13.25% | 13.39% |
Total capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 307,362 | $ 255,419 |
Total capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 403,412 | $ 315,283 |
Total capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 10.50% | 9.875% |
Tier 1 capital (to average assets), Actual, Amount | $ 491,302 | $ 409,760 |
Tier 1 capital (to average assets), Actual, Ratio | 12.79% | 12.83% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 230,521 | $ 191,565 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 326,572 | $ 251,429 |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 8.50% | 7.875% |
Common equity tier 1 capital, Actual Amount | $ 433,809 | $ 371,297 |
Common equity tier 1 capital, Actual Ratio | 11.29% | 11.63% |
Common equity tier 1 capital,For capital adequacy purposes, Amount | $ 172,890 | $ 143,673 |
Common equity tier 1 capital, For capital adequacy purpose, Ratio | 4.50% | 4.50% |
Common equity tier 1 capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 268,941 | $ 203,537 |
Common equity tier 1 capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 7.00% | 6.375% |
Tier 1 capital (to average assets), Actual, Amount | $ 491,302 | $ 409,760 |
Tier 1 capital (to average assets), Actual, Ratio | 11.85% | 10.12% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 165,789 | $ 162,033 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 165,789 | $ 162,033 |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 4.00% | 4.00% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 472,621 | $ 396,755 |
Total capital (to risk-weighted assets), Actual, Ratio | 12.30% | 12.43% |
Total capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 307,361 | $ 255,419 |
Total capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 403,411 | $ 315,283 |
Total capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 10.50% | 9.875% |
Total capital (to risk-weighted assets), For well capitalized purpose, Amount | $ 384,201 | $ 319,274 |
Total capital (to risk-weighted assets), For well capitalized purpose, Ratio | 10.00% | 10.00% |
Tier 1 capital (to average assets), Actual, Amount | $ 454,709 | $ 378,899 |
Tier 1 capital (to average assets), Actual, Ratio | 11.84% | 11.87% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 230,520 | $ 191,565 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 326,570 | $ 251,429 |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 8.50% | 7.875% |
Tier 1 capital (to average assets), For well capitalized purpose, Amount | $ 307,360 | $ 255,420 |
Tier 1 capital (to average assets), For well capitalized purposes, Ratio | 8.00% | 8.00% |
Common equity tier 1 capital, Actual Amount | $ 454,709 | $ 378,899 |
Common equity tier 1 capital, Actual Ratio | 11.84% | 11.87% |
Common equity tier 1 capital,For capital adequacy purposes, Amount | $ 172,890 | $ 143,674 |
Common equity tier 1 capital, For capital adequacy purpose, Ratio | 4.50% | 4.50% |
Common equity tier 1 capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 268,940 | $ 203,537 |
Common equity tier 1 capital (to risk-weighted assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 7.00% | 6.375% |
Common equity tier 1 capital, For well capitalized purpose, Amount | $ 249,730 | $ 207,528 |
Common equity tier 1 capital, For well capitalized purposes, Ratio | 6.50% | 6.50% |
Tier 1 capital (to average assets), Actual, Amount | $ 454,709 | $ 378,899 |
Tier 1 capital (to average assets), Actual, Ratio | 10.99% | 9.34% |
Tier 1 capital (to average assets), For capital adequacy purposes, Amount | $ 165,523 | $ 162,327 |
Tier 1 capital (to average assets), For capital adequacy purpose, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Amount | $ 165,523 | $ 162,327 |
Tier 1 capital (to average assets), Required for capital1 adequacy purposes with capital buffer, Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), For well capitalized purpose, Amount | $ 206,904 | $ 202,908 |
Tier 1 capital (to average assets), For well capitalized purposes, Ratio | 5.00% | 5.00% |