Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST MERCHANTS CORP | |
Entity Central Index Key | 712,534 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FRME | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 49,658,419 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 142,501 | $ 154,905 |
Interest-bearing time deposits | 66,763 | 35,027 |
Investment securities available for sale | 1,149,162 | 999,947 |
Investment securities held to maturity (fair value of $468,452 and $568,208) | 476,089 | 560,655 |
Loans held for sale | 3,022 | 7,216 |
Loans, net of allowance for loan losses of $78,406 and $75,032 | 7,009,665 | 6,676,167 |
Premises and equipment | 93,728 | 95,852 |
Federal Home Loan Bank stock | 24,588 | 23,825 |
Interest receivable | 38,531 | 37,130 |
Goodwill | 445,355 | 445,355 |
Other intangibles | 26,054 | 31,148 |
Cash surrender value of life insurance | 223,865 | 223,557 |
Other real estate owned | 8,859 | 10,373 |
Tax asset, deferred and receivable | 25,933 | 23,983 |
Other assets | 53,167 | 42,338 |
TOTAL ASSETS | 9,787,282 | 9,367,478 |
Deposits: | ||
Noninterest-bearing | 1,464,190 | 1,761,553 |
Interest-bearing | 6,168,962 | 5,410,977 |
Total Deposits | 7,633,152 | 7,172,530 |
Borrowings: | ||
Federal funds purchased | 90,000 | 144,038 |
Securities sold under repurchase agreements | 118,824 | 136,623 |
Federal Home Loan Bank advances | 385,458 | 414,377 |
Subordinated debentures and term loans | 138,408 | 139,349 |
Total Borrowings | 732,690 | 834,387 |
Interest payable | 5,920 | 4,390 |
Other liabilities | 54,094 | 52,708 |
Total Liabilities | 8,425,856 | 8,064,015 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY | ||
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: Authorized - 600 shares; Issued and outstanding - 125 shares | 125 | 125 |
Common Stock, $.125 stated value: Authorized - 50,000,000 shares; Issued and outstanding - 49,280,188 and 49,158,238 shares | 6,163 | 6,145 |
Additional paid-in capital | 837,996 | 834,870 |
Retained earnings | 552,551 | 465,231 |
Accumulated other comprehensive loss | (35,409) | (2,908) |
Total Stockholders' Equity | 1,361,426 | 1,303,463 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 9,787,282 | $ 9,367,478 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity - fair value | $ 468,452 | $ 568,208 |
Loans - allowance for loan losses | $ 78,406 | $ 75,032 |
Preferred Stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, liquidation value per share (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, authorized (in shares) | 600 | 600 |
Preferred Stock, issued (in shares) | 125 | 125 |
Preferred Stock, outstanding (in shares) | 125 | 125 |
Common Stock, stated value (in dollars per share) | $ 0.125 | $ 0.125 |
Common Stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 49,304,542 | 49,158,238 |
Common Stock, outstanding (in shares) | 49,304,542 | 49,158,238 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Loans receivable: | ||||
Taxable | $ 88,479 | $ 71,491 | $ 251,409 | $ 187,234 |
Tax exempt | 3,761 | 2,851 | 10,989 | 7,676 |
Investment securities: | ||||
Taxable | 5,514 | 4,524 | 16,044 | 13,012 |
Tax exempt | 6,493 | 5,455 | 18,865 | 15,549 |
Deposits with financial institutions | 270 | 284 | 1,034 | 442 |
Federal Home Loan Bank stock | 283 | 242 | 950 | 635 |
Total Interest Income | 104,800 | 84,847 | 299,291 | 224,548 |
INTEREST EXPENSE | ||||
Deposits | 13,685 | 6,710 | 34,852 | 15,971 |
Federal funds purchased | 229 | 175 | 670 | 506 |
Securities sold under repurchase agreements | 174 | 133 | 519 | 331 |
Federal Home Loan Bank advances | 2,137 | 1,464 | 6,141 | 3,619 |
Subordinated debentures and term loans | 2,089 | 1,945 | 6,136 | 5,602 |
Total Interest Expense | 18,314 | 10,427 | 48,318 | 26,029 |
NET INTEREST INCOME | 86,486 | 74,420 | 250,973 | 198,519 |
Provision for loan losses | 1,400 | 2,083 | 5,563 | 7,343 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 85,086 | 72,337 | 245,410 | 191,176 |
OTHER INCOME | ||||
Increase in cash surrender value of life insurance | 961 | 1,058 | 2,946 | 2,773 |
Gains on life insurance benefits | 0 | 517 | 198 | 2,671 |
Net gains and fees on sales of loans | 1,841 | 2,317 | 5,262 | 5,209 |
Net realized gains on sales of available for sale securities | 1,285 | 332 | 4,016 | 1,497 |
Other income | 1,110 | 1,064 | 3,368 | 2,288 |
Total Other Income | 19,527 | 18,668 | 57,279 | 51,948 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 32,936 | 33,244 | 97,354 | 86,052 |
Net occupancy | 4,586 | 4,371 | 13,604 | 12,552 |
Equipment | 3,483 | 3,478 | 10,707 | 9,192 |
Marketing | 1,216 | 1,021 | 3,574 | 2,378 |
Outside data processing fees | 3,422 | 3,162 | 9,848 | 8,864 |
Printing and office supplies | 334 | 366 | 992 | 905 |
Intangible asset amortization | 1,650 | 1,698 | 5,094 | 3,592 |
FDIC assessments | 856 | 704 | 2,286 | 1,853 |
Other real estate owned and foreclosure expenses | 455 | 330 | 1,219 | 1,592 |
Professional and other outside services | 1,844 | 5,843 | 5,174 | 10,843 |
Other expenses | 4,240 | 4,491 | 12,361 | 11,300 |
Total Other Expenses | 55,022 | 58,708 | 162,213 | 149,123 |
INCOME BEFORE INCOME TAX | 49,591 | 32,297 | 140,476 | 94,001 |
Income tax expense | 8,478 | 7,939 | 23,050 | 22,314 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 41,113 | $ 24,358 | $ 117,426 | $ 71,687 |
Per Share Data: | ||||
Basic Net Income Available to Common Stockholders (in dollars per share) | $ 0.83 | $ 0.50 | $ 2.38 | $ 1.64 |
Diluted Net Income Available to Common Stockholders (in dollars per share) | 0.83 | 0.50 | 2.37 | 1.63 |
Cash Dividends Paid (in dollars per share) | $ 0.22 | $ 0.18 | $ 0.62 | $ 0.51 |
Average Diluted Shares Outstanding (in shares) | 49,492,019 | 48,643,774 | 49,458,185 | 44,063,219 |
Service charges on deposit accounts | ||||
OTHER INCOME | ||||
Other income | $ 5,619 | $ 5,044 | $ 15,434 | $ 13,656 |
Fiduciary and wealth management fees | ||||
OTHER INCOME | ||||
Other income | 3,673 | 3,783 | 11,064 | 10,556 |
Other customer fees | ||||
OTHER INCOME | ||||
Other income | $ 5,038 | $ 4,553 | $ 14,991 | $ 13,298 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 41,113 | $ 24,358 | $ 117,426 | $ 71,687 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized holding gain (loss) on securities available for sale arising during the period, net of tax of $2,596, $4,101, $7,470 and $4,374 | (9,765) | (7,617) | (30,032) | 8,124 |
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $44, $3, $212 and $134 | 166 | (7) | 1,039 | (246) |
Reclassification adjustment for net gains included in net income, net of tax of $250, $32, $766 and $258 | (942) | (60) | (2,882) | (480) |
Defined benefit pension plan amortization of prior service cost, net of tax of $31 and $94 | 0 | (58) | 0 | (175) |
Total other comprehensive income (loss), net of tax | (10,541) | (7,742) | (31,875) | 7,223 |
Comprehensive income | $ 30,572 | $ 16,616 | $ 85,551 | $ 78,910 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gain (loss) on securities available for sale arising during the period, tax | $ (2,596) | $ (4,101) | $ (7,470) | $ 4,374 |
Unrealized gain (loss) on cash flow hedges arising during the period, tax | 44 | (3) | 212 | (134) |
Reclassification adjustment for net losses (gains) included in net income, tax | 250 | 32 | 766 | 258 |
Defined benefit pension plan amortization of prior service cost, tax | $ 31 | $ 94 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2016 | $ (13,581) | |||||
Comprehensive income: | ||||||
Net income | $ 71,687 | |||||
Other comprehensive loss, net of tax | 7,223 | |||||
Ending balance at Sep. 30, 2017 | (6,358) | |||||
Beginning balance (in shares) at Dec. 31, 2017 | 125 | 49,158,238 | ||||
Beginning balance at Dec. 31, 2017 | 1,303,463 | $ 125 | $ 6,145 | $ 834,870 | $ 465,231 | (2,908) |
Comprehensive income: | ||||||
Net income | 117,426 | 117,426 | ||||
Other comprehensive loss, net of tax | (31,875) | (31,875) | ||||
Cash dividends on common stock ($.62 per share) | (30,732) | (30,732) | ||||
Reclassification adjustment under ASU 2018-02 | 0 | 626 | (626) | |||
Share-based compensation (in shares) | 106,833 | |||||
Share-based compensation | 2,546 | $ 13 | 2,533 | |||
Stock issued under employee benefit plans (in shares) | 13,448 | |||||
Stock issued under employee benefit plans | 515 | $ 2 | 513 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 18,761 | |||||
Stock issued under dividend reinvestment and stock purchase plan | $ 879 | $ 2 | 877 | |||
Stock options exercised (in shares) | 51,243 | 51,243 | ||||
Stock options exercised | $ 1,093 | $ 6 | 1,087 | |||
Stock redeemed (in shares) | (43,981) | |||||
Stock redeemed | (1,889) | $ (5) | (1,884) | |||
Ending balance (in shares) at Sep. 30, 2018 | 125 | 49,304,542 | ||||
Ending balance at Sep. 30, 2018 | $ 1,361,426 | $ 125 | $ 6,163 | $ 837,996 | $ 552,551 | $ (35,409) |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends on common stock (in dollars per share) | $ 0.22 | $ 0.18 | $ 0.62 | $ 0.51 |
CONSOLIDATED CONDENSED STATEM_6
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flow From Operating Activities: | ||
Net income | $ 117,426 | $ 71,687 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 5,563 | 7,343 |
Depreciation and amortization | 6,630 | 5,696 |
Change in deferred taxes | 3,750 | 3,542 |
Share-based compensation | 2,546 | 1,884 |
Loans originated for sale | (277,312) | (246,979) |
Proceeds from sales of loans held for sale | 285,297 | 257,695 |
Gains on sales of loans held for sale | (3,791) | (4,081) |
Gains on sales of securities available for sale | (4,016) | (1,497) |
Increase in cash surrender of life insurance | (2,946) | (2,773) |
Gains on life insurance benefits | (198) | (2,671) |
Change in interest receivable | (1,401) | (2,074) |
Change in interest payable | 1,530 | 597 |
Other adjustments | 3,077 | (9,006) |
Net cash provided by operating activities | 136,155 | 79,363 |
Cash Flows from Investing Activities: | ||
Net change in interest-bearing deposits | (31,736) | 200,013 |
Purchases of: | ||
Securities available for sale | (341,433) | (307,220) |
Securities held to maturity | (30,220) | |
Proceeds from sales of securities available for sale | 126,136 | 54,513 |
Proceeds from maturities of: | ||
Securities available for sale | 56,533 | 52,176 |
Securities held to maturity | 52,258 | 55,276 |
Change in Federal Home Loan Bank stock | (763) | 40 |
Net change in loans | (347,054) | (401,977) |
Net cash and cash equivalents received in acquisition | 54,536 | |
Proceeds from the sale of other real estate owned | 2,069 | 5,046 |
Proceeds from life insurance benefits | 2,836 | 11,642 |
Other adjustments | 2,708 | (1,656) |
Net cash used in investing activities | (478,446) | (307,831) |
Net change in : | ||
Demand and savings deposits | 342,471 | 132,145 |
Certificates of deposit and other time deposits | 118,151 | 107,322 |
Borrowings | 1,451,467 | 894,674 |
Repayment of borrowings | (1,552,068) | (866,231) |
Cash dividends on common stock | (30,732) | (22,909) |
Stock issued under employee benefit plans | 515 | 367 |
Stock issued under dividend reinvestment and stock purchase plans | 879 | 714 |
Stock options exercised | 1,093 | 2,323 |
Stock redeemed | (1,889) | (1,257) |
Net cash provided by financing activities | 329,887 | 247,148 |
Net Change in Cash and Cash Equivalents | (12,404) | 18,680 |
Cash and Cash Equivalents, January 1 | 154,905 | 127,927 |
Cash and Cash Equivalents, September 30 | 142,501 | 146,607 |
Additional cash flow information: | ||
Interest paid | 46,788 | 24,183 |
Income tax paid | 13,719 | 18,000 |
Loans transferred to other real estate owned | 405 | 8,210 |
Fixed assets transferred to other real estate owned | 374 | |
Non-cash investing activities using trade date accounting | 828 | 3,798 |
Investments transferred from held to maturity to available for sale in accordance with ASU 2017-12 | 30,794 | |
In conjunction with the acquisitions, liabilities were assumed as follows: | ||
Fair value of assets acquired | 1,531,397 | |
Cash paid in acquisition | (12) | |
Less: Common stock issued | 321,431 | |
Liabilities assumed | $ 0 | $ 1,209,954 |
General
General | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL Financial Statement Preparation The significant accounting policies followed by the Corporation and its wholly-owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying Consolidated Condensed Financial Statements. The Consolidated Condensed Balance Sheet of the Corporation as of December 31, 2017 , has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation’s annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and Exchange Commission. The results of operations for the three and nine months ended September 30, 2018 , are not necessarily indicative of the results to be expected for the year. Reclassifications have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. Recent Accounting Changes ASU 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02") allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for the stranded tax effects caused by the revaluation of deferred taxes resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act. The ASU is effective in years beginning after December 15, 2018, but permits early adoption in a period for which financial statements have not yet been issued. The Corporation elected to early adopt the ASU as of January 1, 2018. The adoption of the guidance resulted in an insignificant cumulative-effect adjustment that decreased accumulated other comprehensive income (loss) and increased retained earnings in 2018. ASU 2017-12 - "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12") is intended to improve and simplify accounting rules around hedge accounting. The ASU is effective for public companies in 2019 and private companies in 2020. Early adoption is permitted. The new standard refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes, for investors and analysts. The new standard takes effect for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, for public companies and for fiscal years beginning after December 15, 2019 (and interim periods for fiscal years beginning after December 15, 2020), for private companies. Early adoption is permitted in any interim period or fiscal years before the effective date of the standard. ASU 2017-12 requires a modified retrospective transition method in which a cumulative effect of the change on the opening balance of each affected component of equity is recognized in the statement of financial position as of the date of adoption. The Corporation adopted this standard in the third quarter of 2018. As permitted by the ASU, the Corporation reclassified $30.8 million of state and municipal securities with unrealized gains of $450,000 from the held to maturity portfolio to the available for sale portfolio. Other than this reclassification of securities, adoption of the standard did not have a significant impact on the Corporation’s consolidated financial statements. ASU 2017-07 " Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" ("ASU 2017-07") applies to all employers, including not-for-profit entities, that offer to their employees defined benefit pension plans, other postretirement benefit plans, or other types of benefits accounted for under Topic 715, Compensation - Retirement Benefits . The amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments also allow only the service cost component to be eligible for capitalization when applicable (e.g., as a cost of internally manufactured inventory or a self-constructed asset). The amendments are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. For other entities, the amendments are effective for annual periods beginning after December 15, 2018, and interim periods within annual periods beginning after December 15, 2019. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. The Corporation adopted this ASU in 2018. Adoption of the standard did not have a significant impact on the Corporation’s consolidated financial statements. ASU 2016-15 "Statement of Cash Flows (Topic 230)" ("ASU 2016-15") is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. ASU 2016-15 became effective for the Corporation on January 1, 2018 and did not have a significant impact on the Corporation's financial statements. ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities" ("ASU 2016-01") makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in accumulated other comprehensive income (loss). ASU 2016-01 became effective for the Corporation on January 1, 2018. The adoption of the guidance did not result in any cumulative effect adjustment in 2018. ASU 2016-01 also emphasizes the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of a practicability exception in determining the fair value of loans. Accordingly, the Corporation refined the calculation used to determine the disclosed fair value of loans held for investment as part of adopting this standard. The refined calculation did not have a significant impact on the fair value disclosures included in NOTE 9. DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES of these Notes to Consolidated Condensed Financial Statements. ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is 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. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. The guidance does not apply to revenue associated with financial instruments, including loans and investment securities that are accounted for under other GAAP, which comprises a significant portion of our revenue stream. ASU 2014-09 became effective for the Corporation on January 1, 2018. The adoption of ASU 2014-09 did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded. Additional information related to revenue generated from contracts with customers is detailed below. Revenue Recognition ASU 2014-09 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Corporation's revenue-generating transactions are not subject to ASU 2014-09, including revenue generated from financial instruments, such as loans, letters of credit, derivatives and investment securities, as well as revenue related to mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within the disclosures. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Condensed Statements of Income was not necessary. Descriptions of revenue-generating activities that are within the scope of ASU 2014-09, which are presented in our income statements are as follows: Service charges on deposit accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed, which is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned monthly, representing the period which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Fiduciary activities : This represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services and similar fiduciary activities. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on the market value of assets under management at month-end. Fees that are transaction-based are recognized at the point in time that the transaction is executed. Investment Brokerage Fees : The Corporation earns fees from investment brokerage services provided to its customers by a third-party service provider. The Corporation receives commissions from the third-party provider on a monthly basis based upon customer activity for the month. The fees are paid to us by the third party on a monthly basis and are recognized when received. Interchange income : The Corporation earns interchange fees from debit and credit cardholder transactions conducted through the Visa and MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized concurrent with the transaction processing services provided to the cardholder. Gains (Losses) on Sales of OREO : The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Independent Alliance Banks, Inc. On November 21, 2016, the Corporation purchased 495,112 shares, or 12.1 percent, of IAB's outstanding common stock from an IAB shareholder for $19.8 million , or $40.00 per share. On July 14, 2017, the Corporation acquired the remaining shares of IAB common stock. IAB, an Indiana Corporation, merged with and into the Corporation, whereupon the separate corporate existence of IAB ceased and the Corporation survived. Immediately following the merger, IAB's wholly-owned subsidiary, iAB Financial Bank, merged with and into the Bank, with the Bank continuing as the surviving bank. IAB was headquartered in Fort Wayne, Indiana and had 16 banking centers serving the Fort Wayne market. Pursuant to the merger agreement, each IAB shareholder received 1.653 shares of the Corporation's common stock for each outstanding share of IAB common stock held. The Corporation issued approximately 6.0 million shares of common stock. The transaction value for the remaining shares of common stock, not owned by the Corporation, was approximately $238.8 million , resulting in a total purchase price of $258.6 million . The Corporation engaged in this transaction with the expectation that it would be accretive to income and add a new market area with a demographic profile consistent with many of the current Indiana markets served by the Bank. Goodwill resulted from this transaction due to the expected synergies and economies of scale. In the third quarter of 2017, ASC 805-10 - Business Combinations, required the Corporation to remeasure the 12.1 percent equity interest in IAB's common stock and recognize the resulting gain or loss, if any, in earnings. The remeasurement was based upon the closing price of IAB's common stock immediately prior to the acquisition announcement, and prior to the Corporation obtaining control of IAB. The trading price of IAB's common stock subsequent to the acquisition announcement included a control or acquisition premium and was not indicative of the fair value of the Corporation's pre-existing equity interest immediately prior to the acquisition announcement. The fair value of the equity interest in IAB's common stock after the remeasurement was $19.8 million . The Corporation recorded a $50,000 loss in the third quarter of 2017 as a result of the remeasurement. 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 valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the IAB acquisition is detailed in the following table. Fair Value Cash and cash equivalents $ 6,016 Interest-bearing time deposits 248,212 Investment securities 4,078 Loans held for sale 594 Loans 725,382 Premises and equipment 10,107 Federal Home Loan Bank stock 4,810 Interest receivable 3,445 Cash surrender value of life insurance 26,964 Other assets 11,780 Deposits (862,271 ) Securities sold under repurchase agreements (17,915 ) Federal Home Loan Bank Advances (47,575 ) Subordinated debentures (10,583 ) Interest payable (1,005 ) Other liabilities (14,472 ) Net tangible assets acquired 87,567 Other Intangible assets 17,403 Goodwill 153,636 Purchase price $ 258,606 Of the total purchase price, $17,403,000 has been allocated to other intangible assets. Approximately $13.6 million was allocated to a core deposit intangible, which will be amortized over its estimated life of 10 years. Approximately $3.8 million was allocated to a non-compete intangible, which will be amortized over its estimated life of 2 years. The remaining purchase price was allocated to goodwill, which is not deductible for tax purposes. Acquired loan data for IAB can be found in the table below: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 4,838 $ 14,131 $ 8,352 Acquired receivables not subject to ASC 310-30 $ 720,544 $ 864,613 $ 9,786 Purchased loans with evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments are accounted for under ASC 310-30, Loans Acquired with Deteriorated Credit Quality . The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans. The Arlington Bank On May 19, 2017, the Corporation acquired 100 percent of Arlington Bank. Arlington Bank, an Ohio savings bank, merged with and into the Bank, with the Bank continuing as the surviving bank. Arlington Bank was headquartered in Columbus, Ohio and had 3 banking centers serving the Columbus, Ohio market. Pursuant to the merger agreement, each Arlington Bank shareholder received 2.7245 shares of the Corporation's common stock for each outstanding share of Arlington Bank common stock held. The Corporation issued approximately 2.1 million shares of common stock, which was valued at approximately $82.6 million . The Corporation engaged in this transaction with the expectation that it would be accretive to income and expand the existing footprint in Columbus, Ohio. Goodwill resulted from this transaction due to the expected synergies and 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 valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Arlington Bank acquisition is detailed in the following table. Fair Value Cash and cash equivalents $ 48,532 Interest-bearing time deposits 292 Loans held for sale 7,626 Loans 224,680 Premises and equipment 1,986 Federal Home Loan Bank stock 1,091 Interest receivable 653 Other assets 1,620 Deposits (252,783 ) Interest payable (244 ) Other liabilities (3,106 ) Net tangible assets acquired 30,347 Core deposit intangible 4,526 Goodwill 47,719 Purchase price $ 82,592 Of the total purchase price, $4,526,000 has been allocated to a core deposit intangible that will be amortized over its estimated life of 10 years. The remaining purchase price was allocated to goodwill, which is not deductible for tax purposes. Acquired loan data for Arlington Bank can be found in the table below: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 2,625 $ 6,183 $ 2,891 Acquired receivables not subject to ASC 310-30 $ 222,055 $ 308,857 $ 2,741 Pro Forma Financial Information The results of operations of Arlington Bank and IAB have been included in the Corporation's consolidated financial statements since the acquisition dates. The following schedule includes pro forma results for the year ended December 31, 2017, as if the Arlington Bank and IAB acquisitions occurred as of the beginning of the period presented. 2017 Total revenue (net interest income plus other income) $ 380,324 Net income $ 95,009 Net income available to common shareholders Earnings per share: Basic $ 1.94 Diluted $ 1.93 The pro forma information includes adjustments for interest income on loans, interest expense on deposits and borrowings, premises expense for banking centers acquired and amortization of intangibles arising from the transactions and the related income tax effects. The pro forma information for the year ended December 31, 2017 includes operating revenue of $9.0 million and $21.4 million from the Arlington Bank and IAB acquisitions since the date of acquisition, respectively. Additionally, $15.4 million , net of tax, of expenses directly attributable to the Arlington Bank and IAB acquisitions were included in the year ended December 31, 2017 pro forma information. The pro forma information is presented for information purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisitions been consummated as of that time, nor is it intended to be a projection of future results. CONSUMMATION OF MERGER MBT Financial Corp. On October 9, 2018, the Corporation and MBT Financial Corp., a Michigan corporation ("MBT"), entered into an Agreement and Plan of Reorganization and Merger, pursuant to which MBT will, subject to the terms and conditions of the merger agreement, merge with and into the Corporation, whereupon the separate corporate existence of MBT will cease and the Corporation will survive. Immediately following the merger, MBT's wholly-owned subsidiary, Monroe Bank & Trust, shall be merged with and into the Bank, with the Bank continuing as the surviving bank. Based on the closing price of the Corporation's common stock on October 9, 2018 of $45.71 per share, the transaction value is estimated at approximately $290.9 million . The transaction is expected to be a tax-free exchange for MBT's shareholders who will be receiving the Corporation's common stock pursuant to the merger. Subject to MBT's shareholders' approval of the merger, regulatory approvals and other customary closing conditions, the parties anticipate completing the merger in the first half of 2019. MBT's total assets as of June 30, 2018 were $1.3 billion . |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses and approximate market value of the Corporation's investment securities at the dates indicated were: Amortized Gross Gross Fair Available for sale at September 30, 2018 U.S. Government-sponsored agency securities $ 18,492 $ 134 $ 18,358 State and municipal 611,528 2,920 14,280 600,168 U.S. Government-sponsored mortgage-backed securities 547,223 71 16,689 530,605 Corporate obligations 31 31 Total available for sale 1,177,274 2,991 31,103 1,149,162 Held to maturity at September 30, 2018 U.S. Government-sponsored agency securities 22,618 833 21,785 State and municipal 192,124 1,161 1,748 191,537 U.S. Government-sponsored mortgage-backed securities 260,347 300 6,514 254,133 Foreign Investments 1,000 3 997 Total held to maturity 476,089 1,461 9,098 468,452 Total Investment Securities $ 1,653,363 $ 4,452 $ 40,201 $ 1,617,614 Amortized Gross Gross Fair Available for sale at December 31, 2017 State and municipal $ 510,852 $ 16,932 $ 1,091 $ 526,693 U.S. Government-sponsored mortgage-backed securities 473,325 964 3,423 470,866 Corporate obligations 31 31 Equity securities 2,357 2,357 Total available for sale 986,565 17,896 4,514 999,947 Held to maturity at December 31, 2017 U.S. Government-sponsored agency securities 22,618 435 22,183 State and municipal 235,594 6,295 244 241,645 U.S. Government-sponsored mortgage-backed securities 301,443 3,341 1,404 303,380 Foreign Investment 1,000 1,000 Total held to maturity 560,655 9,636 2,083 568,208 Total Investment Securities $ 1,547,220 $ 27,532 $ 6,597 $ 1,568,155 The amortized cost and fair value of available for sale and held to maturity securities at September 30, 2018 and December 31, 2017 , 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. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at September 30, 2018: Due in one year or less $ 24,098 $ 24,360 $ 5,161 $ 5,178 Due after one through five years 17,294 17,511 48,155 47,042 Due after five through ten years 75,416 75,498 57,950 58,212 Due after ten years 513,243 501,188 104,476 103,887 630,051 618,557 215,742 214,319 U.S. Government-sponsored mortgage-backed securities 547,223 530,605 260,347 254,133 Total Investment Securities $ 1,177,274 $ 1,149,162 $ 476,089 $ 468,452 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2017 Due in one year or less $ 425 $ 425 $ 12,015 $ 12,158 Due after one through five years 5,040 5,204 76,146 76,334 Due after five through ten years 74,921 78,806 54,441 55,679 Due after ten years 430,497 442,289 116,610 120,657 510,883 526,724 259,212 264,828 U.S. Government-sponsored mortgage-backed securities 473,325 470,866 301,443 303,380 Equity securities 2,357 2,357 Total Investment Securities $ 986,565 $ 999,947 $ 560,655 $ 568,208 The carrying value of securities pledged as collateral, to secure borrowings and for other purposes, was $426,200,000 at September 30, 2018 , and $475,999,000 at December 31, 2017 . The book value of securities sold under agreements to repurchase amounted to $122,789,000 at September 30, 2018 , and $136,639,000 at December 31, 2017 . Gross gains on the sales and redemptions of available for sale securities for the three and nine months ended September 30, 2018 and 2017 are shown below. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Sales and Redemptions of Available for Sale Securities: Gross gains $ 1,285 $ 382 $ 4,016 $ 1,547 Gross losses 50 50 The following tables show the Corporation’s gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at September 30, 2018 , and December 31, 2017 : Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at September 30, 2018 U.S. Government-sponsored agency securities $ 18,358 $ 134 $ 18,358 $ 134 State and municipal 397,852 11,780 $ 30,820 $ 2,500 428,672 14,280 U.S. Government-sponsored mortgage-backed securities 386,632 9,603 134,602 7,086 521,234 16,689 Total Temporarily Impaired Available for Sale Securities 802,842 21,517 165,422 9,586 968,264 31,103 Temporarily Impaired Held to Maturity Securities at September 30, 2018 U.S. Government-sponsored agency securities 97 3 21,688 830 21,785 833 State and municipal 44,857 857 16,326 891 61,183 1,748 U.S. Government-sponsored mortgage-backed securities 168,488 3,473 61,139 3,041 229,627 6,514 Corporate Obligations 997 3 997 3 Total Temporarily Impaired Held to Maturity Securities 214,439 4,336 99,153 4,762 313,592 9,098 Total Temporarily Impaired Investment Securities $ 1,017,281 $ 25,853 $ 264,575 $ 14,348 $ 1,281,856 $ 40,201 Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2017 State and municipal $ 13,296 $ 198 $ 35,324 $ 893 $ 48,620 $ 1,091 U.S. Government-sponsored mortgage-backed securities 182,755 1,520 68,667 1,903 251,422 3,423 Total Temporarily Impaired Available for Sale Securities 196,051 1,718 103,991 2,796 300,042 4,514 Temporarily Impaired Held to Maturity Securities at December 31, 2017 U.S. Government-sponsored agency securities 9,988 131 12,196 304 22,184 435 State and municipal 2,430 36 15,805 208 18,235 244 U.S. Government-sponsored mortgage-backed securities 62,508 485 43,078 919 105,586 1,404 Total Temporarily Impaired Held to Maturity Securities 74,926 652 71,079 1,431 146,005 2,083 Total Temporarily Impaired Investment Securities $ 270,977 $ 2,370 $ 175,070 $ 4,227 $ 446,047 $ 6,597 Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below. September 30, 2018 December 31, 2017 Investments reported at less than historical cost: Historical cost $ 1,322,058 $ 452,644 Fair value $ 1,281,856 $ 446,047 Percent of the Corporation's investment portfolio 78.9 % 28.6 % Management believes the decline in fair value for these securities was temporary. 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 during the period the other-than-temporary-impairment ("OTTI") is identified. The Corporation’s management has evaluated all securities with unrealized losses for OTTI as of September 30, 2018 . The evaluations are based on the nature of the securities, the extent and duration of the loss and the intent and ability of the Corporation to hold these securities either to maturity or through the expected recovery period. In determining the fair value of the investment securities portfolio, the Corporation utilizes a third party for portfolio accounting services, including market value input, for those securities classified as Level 1 and Level 2 in the fair value hierarchy. The Corporation has obtained an understanding of what inputs are being used by the vendor in pricing the portfolio and how the vendor classified these securities based upon these inputs. From these discussions, the Corporation’s management is comfortable that the classifications are proper. The Corporation has gained trust in the data for two reasons: (a) independent spot testing of the data is conducted by the Corporation through obtaining market quotes from various brokers on a periodic basis; and (b) actual gains or loss resulting from the sale of certain securities has proven the data to be accurate over time. Fair value of securities classified as Level 3 in the valuation hierarchy was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. State and Municipal and U.S. Government-Sponsored Agency Securities The unrealized losses on the Corporation's investments in securities of state and political subdivisions and U.S. Government-Sponsored Agency securities were caused by interest rate increases. 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. Because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at September 30, 2018 . The state and municipal securities portfolio contains unrealized losses of $14,280,000 on three hundred thirty-six securities and $1,748,000 on sixty-eight securities in the available for sale and held to maturity portfolios, respectively. The U.S. Government-Sponsored Agency securities portfolio contains unrealized losses of $134,000 on seven securities and $833,000 on five securities in the available for sale and held to maturity portfolios, respectively. U.S. Government-Sponsored Mortgage-Backed Securities The unrealized losses on the Corporation's investment in mortgage-backed securities were a result of interest rate changes. The Corporation expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at September 30, 2018 . The mortgage-backed securities portfolio contains unrealized losses of $16,689,000 on one hundred twenty-five securities and $6,514,000 on one hundred securities in the available for sale and held to maturity portfolios, respectively. All these securities are issued by a U.S. government-sponsored entity. |
Loans and Allowance
Loans and Allowance | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans and Allowance | LOANS AND ALLOWANCE The Corporation’s primary lending focus is small business and middle market commercial, commercial real estate and residential real estate, which results in portfolio diversification. The following tables show the composition of the loan portfolio, the allowance for loan losses and credit quality characteristics by collateral classification, excluding loans held for sale. Loans held for sale as of September 30, 2018 , and December 31, 2017 , were $3,022,000 and $7,216,000 , respectively. The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated: September 30, 2018 December 31, 2017 Commercial and industrial loans $ 1,655,569 $ 1,493,493 Agricultural production financing and other loans to farmers 88,504 121,757 Real estate loans: Construction 668,608 612,219 Commercial and farmland 2,699,629 2,562,691 Residential 965,893 962,765 Home equity 517,303 514,021 Individuals' loans for household and other personal expenditures 98,709 86,935 Lease financing receivables, net of unearned income 1,830 2,527 Other commercial loans 392,026 394,791 Loans $ 7,088,071 $ 6,751,199 Allowance for loan losses (78,406 ) (75,032 ) Net Loans $ 7,009,665 $ 6,676,167 Allowance, Credit Quality and Loan Portfolio The Corporation maintains an allowance for loan losses to cover probable credit losses identified during its loan review process. Management believes the allowance for loan losses is adequate to cover probable losses inherent in the loan portfolio at September 30, 2018 . The process for determining the adequacy of the allowance for loan losses is critical to the Corporation’s financial results. It requires management to make difficult, subjective and complex judgments to estimate the effect of uncertain matters. The allowance for loan losses considers current factors, including economic conditions and ongoing internal and external examinations, and will increase or decrease as deemed necessary to ensure it remains adequate. In addition, the allowance as a percentage of charge-offs and nonperforming loans will change at different points in time based on credit performance, portfolio mix and collateral values. The allowance for loan losses is maintained through the provision for loan losses, which is a charge against earnings. The allowance is increased by provision expense and decreased by charge-offs less recoveries. All charge-offs are approved by the Bank's senior credit officers and in accordance with established policies. The Bank charges off a loan when a determination is made that all or a portion of the loan is uncollectable. The amount provided for loan losses in a given period may be greater than or less than net loan losses experienced during the period, and is based on management’s judgment as to the appropriate level of the allowance for loan losses. The determination of the provision amount is based on management’s ongoing review and evaluation of the loan portfolio, including an internally administered loan "watch" list and independent loan reviews. The evaluation takes into consideration identified credit problems, the possibility of losses inherent in the loan portfolio that are not specifically identified and management’s judgment as to the impact of the current environment and economic conditions on the portfolio. The allowance consists of specific impairment reserves as required by ASC 310-10-35, a component for historical losses in accordance with ASC 450 and the consideration of current environmental factors in accordance with ASC 450. A loan is deemed impaired when, based on current information or events, it is probable that all amounts due of principal and interest according to the contractual terms of the loan agreement will not be collected. The historical loss allocation for loans not deemed impaired according to ASC 450 is the product of the volume of loans within the non-impaired criticized and non-criticized risk grade classifications, each segmented by call code, and the historical loss factor for each respective classification and call code segment. The historical loss factors are based upon actual loss experience within each risk and call code classification. The historical look back period for non-criticized loans looks to the most recent rolling-four-quarter average and aligns with the look back period for non-impaired criticized loans. Each of the rolling four quarter periods used to obtain the average, include all charge-offs for the previous twelve-month period, therefore the historical look back period includes seven quarters. The resulting allocation is reflective of current conditions. Criticized loans are grouped based on the risk grade assigned to the loan. Loans with a special mention grade are assigned a loss factor, and loans with a classified grade but not impaired are assigned a separate loss factor. The loss factor computation for this allocation includes a segmented historical loss migration analysis of risk grades to charge-off. In addition to the specific reserves and historical loss components of the allowance, consideration is given to various environmental factors to ensure that losses inherent in the portfolio are reflected in the allowance for loan losses. The environmental component adjusts the historical loss allocations for non-impaired loans to reflect relevant current conditions that, in management's opinion, have an impact on loss recognition. Environmental factors that management reviews in the analysis include: national and local economic trends and conditions; trends in growth in the loan portfolio and growth in higher risk areas; levels of, and trends in, delinquencies and non-accruals; experience and depth of lending management and staff; adequacy of, and adherence to, lending policies and procedures including those for underwriting; industry concentrations of credit; and adequacy of risk identification systems and controls through the internal loan review and internal audit processes. In conformance with ASC 805 and ASC 820, purchased loans are recorded at the acquisition date fair value. Such loans are included in the allowance to the extent a specific impairment is identified that exceeds the fair value adjustment on an impaired loan or the historical loss and environmental factor analysis indicates losses inherent in a purchased portfolio exceeds the fair value adjustment on the portion of the purchased portfolio not deemed impaired. The following tables summarize changes in the allowance for loan losses by loan segment for the three and nine months ended September 30, 2018 and September 30, 2017 : Three Months Ended September 30, 2018 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, June 30, 2018 $ 31,465 $ 27,731 $ 3,921 $ 14,424 $ 2 $ 77,543 Provision for losses 256 410 159 575 1,400 Recoveries on loans 658 306 46 165 1,175 Loans charged off (313 ) (501 ) (194 ) (704 ) (1,712 ) Balances, September 30, 2018 $ 32,066 $ 27,946 $ 3,932 $ 14,460 $ 2 $ 78,406 Nine Months Ended September 30, 2018 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, December 31, 2017 $ 30,418 $ 27,343 $ 3,732 $ 13,537 $ 2 $ 75,032 Provision for losses 1,567 1,448 493 2,055 5,563 Recoveries on loans 2,060 1,858 233 915 5,066 Loans charged off (1,979 ) (2,703 ) (526 ) (2,047 ) (7,255 ) Balances, September 30, 2018 $ 32,066 $ 27,946 $ 3,932 $ 14,460 $ 2 $ 78,406 Three Months Ended September 30, 2017 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, June 30, 2017 $ 28,906 $ 25,236 $ 3,372 $ 12,955 $ 2 $ 70,471 Provision for losses 921 374 342 446 2,083 Recoveries on loans 324 1,327 51 157 1,859 Loans charged off (468 ) (190 ) (174 ) (227 ) (1,059 ) Balances, September 30, 2017 $ 29,683 $ 26,747 $ 3,591 $ 13,331 $ 2 $ 73,354 Nine Months Ended September 30, 2017 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, December 31, 2016 $ 27,696 $ 23,661 $ 2,923 $ 11,755 $ 2 $ 66,037 Provision for losses 2,279 2,023 877 2,164 7,343 Recoveries on loans 987 2,066 253 547 3,853 Loans charged off (1,279 ) (1,003 ) (462 ) (1,135 ) (3,879 ) Balances, September 30, 2017 $ 29,683 $ 26,747 $ 3,591 $ 13,331 $ 2 $ 73,354 The tables below show the Corporation’s allowance for loan losses and loan portfolio by loan segment as of the periods indicated. There was no related allowance for loan losses for loans acquired with deteriorated credit quality at September 30, 2018 or December 31, 2017. September 30, 2018 Commercial Commercial Consumer Residential Finance Total Allowance Balances: Individually evaluated for impairment $ 433 $ 433 Collectively evaluated for impairment $ 32,066 $ 27,946 $ 3,932 14,027 $ 2 77,973 Total Allowance for Loan Losses $ 32,066 $ 27,946 $ 3,932 $ 14,460 $ 2 $ 78,406 Loan Balances: Individually evaluated for impairment $ 1,614 $ 12,158 $ 8 $ 2,219 $ 15,999 Collectively evaluated for impairment 2,132,193 3,340,898 98,701 1,479,371 $ 1,830 7,052,993 Loans acquired with deteriorated credit quality 2,292 15,181 1,606 19,079 Loans $ 2,136,099 $ 3,368,237 $ 98,709 $ 1,483,196 $ 1,830 $ 7,088,071 December 31, 2017 Commercial Commercial Consumer Residential Finance Total Allowance Balances: Individually evaluated for impairment $ 666 $ 567 $ 404 $ 1,637 Collectively evaluated for impairment 29,752 26,776 $ 3,732 13,133 $ 2 73,395 Total Allowance for Loan Losses $ 30,418 $ 27,343 $ 3,732 $ 13,537 $ 2 $ 75,032 Loan Balances: Individually evaluated for impairment $ 3,345 $ 17,432 $ 5 $ 2,429 $ 23,211 Collectively evaluated for impairment 2,005,275 3,135,481 86,930 1,472,821 $ 2,527 6,703,034 Loans acquired with deteriorated credit quality 1,421 21,997 1,536 24,954 Loans $ 2,010,041 $ 3,174,910 $ 86,935 $ 1,476,786 $ 2,527 $ 6,751,199 Loans individually evaluated for impairment are comprised of commercial and consumer loans deemed impaired in accordance with ASC 310-10 and include loans acquired with deteriorated credit quality totaling $1,568,000 and $315,000 at September 30, 2018 and December 31, 2017, respectively. The risk characteristics of the Corporation’s material portfolio segments are as follows: Commercial Commercial lending is 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 tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. 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 These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher 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 or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Consumer and Residential With respect to residential loans that are secured by 1-4 family residences and are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are 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 and credit rating of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment on loans secured by 1-4 family residences can be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing i n terest. When the interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectable. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. Payments received on impaired accruing or delinquent loans are applied to interest income as accrued. The following table summarizes the Corporation’s non-accrual loans by loan class as of the periods indicated: September 30, 2018 December 31, 2017 Commercial and industrial loans $ 2,287 $ 3,275 Agriculture production financing and other loans to farmers 640 1,027 Real estate loans: Construction 764 65 Commercial and farmland 10,406 12,951 Residential 5,140 9,444 Home equity 1,126 1,928 Individuals' loans for household and other personal expenditures 58 34 Total $ 20,421 $ 28,724 Impaired loans include loans deemed impaired according to the guidance set forth in ASC 310-10. Commercial loans under $500,000 and consumer loans, with the exception of troubled debt restructures, are not individually evaluated 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 for measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. The following tables show the composition of the Corporation’s impaired loans, related allowance and interest income recognized while impaired by loan class as of the periods indicated: September 30, 2018 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 6,133 $ 974 Agriculture production financing and other loans to farmers 660 640 Real estate Loans: Construction 1,352 614 Commercial and farmland 13,717 11,544 Residential 81 62 Individuals' loans for household and other personal expenditures 8 8 Total $ 21,951 $ 13,842 Impaired loans with related allowance: Real estate Loans: Residential $ 1,849 $ 1,794 $ 357 Home equity 382 363 76 Total $ 2,231 $ 2,157 $ 433 Total Impaired Loans $ 24,182 $ 15,999 $ 433 December 31, 2017 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 7,611 $ 1,536 Agriculture production financing and other loans to farmers 732 700 Real estate Loans: Commercial and farmland 16,758 15,162 Residential 833 519 Home equity 40 8 Individuals' loans for household and other personal expenditures 5 5 Total $ 25,979 $ 17,930 Impaired loans with related allowance: Commercial and industrial loans $ 812 $ 782 $ 552 Agriculture production financing and other loans to farmers 357 327 114 Real estate Loans: Commercial and farmland 2,989 2,270 567 Residential 1,616 1,572 327 Home equity 349 330 77 Total $ 6,123 $ 5,281 $ 1,637 Total Impaired Loans $ 32,102 $ 23,211 $ 1,637 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Average Interest Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 979 $ 994 Agriculture production financing and other loans to farmers 640 640 Real estate Loans: Construction 614 930 Commercial and farmland 12,098 $ 40 12,733 $ 128 Residential 62 1 63 2 Individuals' loans for household and other personal expenditures 9 10 Total $ 14,402 $ 41 $ 15,370 $ 130 Impaired loans with related allowance: Real estate Loans: Residential $ 1,797 $ 13 $ 1,812 $ 37 Home equity 364 3 367 8 Total $ 2,161 $ 16 $ 2,179 $ 45 Total Impaired Loans $ 16,563 $ 57 $ 17,549 $ 175 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Average Interest Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 2,103 $ 4,567 Agriculture production financing and other loans to farmers 945 945 Real estate Loans: Commercial and farmland 14,129 $ 89 15,483 $ 267 Residential 588 673 2 Home equity 11 16 Individuals' loans for household and other personal expenditures 6 7 Total $ 17,782 $ 89 $ 21,691 $ 269 Impaired loans with related allowance: Commercial and industrial loans $ 1,796 $ 1,796 Agriculture production financing and other loans to farmers 337 337 Real estate Loans: Commercial and farmland 3,359 3,374 Residential 1,403 $ 8 1,395 $ 25 Home equity 331 2 334 6 Total $ 7,226 $ 10 $ 7,236 $ 31 Total Impaired Loans $ 25,008 $ 99 $ 28,927 $ 300 Impaired loans in the above tables do not include loans accounted for under ASC 310-30, or any other loan, unless deemed impaired in accordance with ASC 310-10. As part of the ongoing monitoring of the credit quality of the Corporation's loan portfolio, management tracks certain credit quality indicators including trends related to: (i) the level of criticized commercial loans, (ii) net charge-offs, (iii) non-performing loans, (iv) covenant failures and (v) the general national and local economic conditions. The Corporation utilizes a risk grading of pass, special mention, substandard, doubtful and loss to assess the overall credit quality of large commercial loans. All large commercial credit grades are reviewed at a minimum of once a year for pass grade loans. Loans with grades below pass are reviewed more frequently depending on the grade. A description of the general characteristics of these grades is as follows: • Pass - Loans that are considered to be of acceptable credit quality. • Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation's credit position at some future date. Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification. The key distinctions of this category's classification are that it is indicative of an unwarranted level of risk; and weaknesses are considered “potential”, not “defined”, impairments to the primary source of repayment. Examples include businesses that may be suffering from inadequate management, loss of key personnel or significant customer or litigation. • Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Other characteristics may include: o the likelihood that a loan will be paid from the primary source of repayment is uncertain or financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss, o the primary source of repayment is gone, and the Corporation is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees, o loans have a distinct possibility that the Corporation will sustain some loss if deficiencies are not corrected, o unusual courses of action are needed to maintain a high probability of repayment, o the borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments, o the Corporation is forced into a subordinated or unsecured position due to flaws in documentation, o loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms, o the Corporation is seriously contemplating foreclosure or legal action due to the apparent deterioration of the loan, and o there is significant deterioration in market conditions to which the borrower is highly vulnerable. • Doubtful - Loans that have all of the weaknesses of those classified as Substandard. However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable. Other credit characteristics may include considerable doubt as to the quality of the secondary sources of repayment. The possibility of loss is high, but because of certain important pending factors that may strengthen the loan, loss classification is deferred until the exact status of repayment is known. • Loss – Loans that are considered uncollectable and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical not 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 tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the periods indicated. Consumer non-performing loans include accruing consumer loans 90-days or more delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. September 30, 2018 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,587,560 $ 18,085 $ 49,924 $ 1,655,569 Agriculture production financing and other loans to farmers 68,556 7,144 12,804 88,504 Real estate Loans: Construction 629,244 2,533 10,200 $ 26,494 $ 137 668,608 Commercial and farmland 2,551,541 67,043 78,694 2,350 1 2,699,629 Residential 175,315 5,119 2,377 778,086 4,996 965,893 Home equity 25,435 750 387 489,631 1,100 517,303 Individuals' loans for household and other personal expenditures 98,600 109 98,709 Lease financing receivables, net of unearned income 1,830 1,830 Other commercial loans 391,673 353 392,026 Loans $ 5,431,154 $ 100,674 $ 154,739 $ 1,395,161 $ 6,343 $ 7,088,071 December 31, 2017 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,418,401 $ 51,336 $ 23,386 $ 370 $ 1,493,493 Agriculture production financing and other loans to farmers 73,800 27,502 20,018 387 $ 50 121,757 Real estate Loans: Construction 587,906 828 981 $ 22,374 $ 130 612,219 Commercial and farmland 2,408,329 70,074 79,769 1,536 2,980 3 2,562,691 Residential 185,725 4,376 4,209 114 759,900 8,441 962,765 Home equity 28,554 457 286 482,661 2,063 514,021 Individuals' loans for household and other personal expenditures 86,875 60 86,935 Lease financing receivables, net of unearned income 2,527 2,527 Other commercial loans 394,222 569 394,791 Loans $ 5,099,464 $ 154,573 $ 129,218 $ 2,407 $ 50 $ 1,354,790 $ 10,697 $ 6,751,199 The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, as of September 30, 2018 , and December 31, 2017 : September 30, 2018 Current 30-59 Days 60-89 Days 90 Days or More Past Due Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,649,538 $ 3,344 $ 400 $ 2,287 $ 6,031 $ 1,655,569 Agriculture production financing and other loans to farmers 87,864 640 640 88,504 Real estate loans: Construction 667,142 702 764 1,466 668,608 Commercial and farmland 2,683,494 1,859 3,870 10,406 16,135 2,699,629 Residential 955,383 4,873 497 5,140 10,510 965,893 Home equity 513,936 1,506 735 1,126 3,367 517,303 Individuals' loans for household and other personal expenditures 98,044 394 163 $ 50 58 665 98,709 Lease financing receivables, net of unearned income 1,830 1,830 Other commercial loans 392,026 392,026 Loans $ 7,049,257 $ 11,976 $ 6,367 $ 50 $ 20,421 $ 38,814 $ 7,088,071 December 31, 2017 Current 30-59 Days 60-89 Days 90 Days or More Past Due Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,487,221 $ 2,967 $ 30 $ 3,275 $ 6,272 $ 1,493,493 Agriculture production financing and other loans to farmers 120,720 10 1,027 1,037 121,757 Real estate loans: Construction 610,896 1,193 $ 65 65 1,323 612,219 Commercial and farmland 2,542,048 6,923 166 603 12,951 20,643 2,562,691 Residential 948,947 4,010 308 56 9,444 13,818 962,765 Home equity 510,362 1,372 184 175 1,928 3,659 514,021 Individuals' loans for household and other personal expenditures 85,744 298 834 25 34 1,191 86,935 Lease financing receivables, net of unearned income 2,527 2,527 Other commercial loans 394,791 394,791 Loans $ 6,703,256 $ 16,773 $ 1,522 $ 924 $ 28,724 $ 47,943 $ 6,751,199 See the information regarding the analysis of loan loss experience in the "LOAN QUALITY/PROVISION FOR LOAN LOSSES" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 2 of this Quarterly Report on Form 10-Q. On occasion, borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays including debt payments. Concurrently, in an effort to preserve and protect its earning assets, specifically troubled loans, the Corporation works to maintain its relationship with certain customers who are experiencing financial difficulty by contractually modifying the borrower's debt agreement with the Corporation. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a trouble debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be paid. The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the periods indicated: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Real estate loans: Residential $ 154 $ 140 4 $ 490 $ 487 11 Home equity 65 65 1 81 81 3 Individuals' loans for household and other personal expenditures 7 8 1 Total $ 219 $ 205 5 $ 578 $ 576 15 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Commercial and industrial loans $ 6 $ 6 1 $ 400 $ 176 2 Real estate loans: Commercial and farmland 357 492 6 Residential 120 122 1 570 520 8 Home equity 68 73 2 190 73 2 Total $ 194 $ 201 4 $ 1,517 $ 1,261 18 The following tables summarize the recorded investment of troubled debt restructures as of September 30, 2018 and 2017 , by modification type, that occurred during the periods indicated: Three Months Ended September 30, 2018 Term Rate Combination Total Real estate loans: Residential $ 47 $ 93 $ 140 Home equity 65 65 Total $ 112 $ 93 $ 205 Nine Months Ended September 30, 2018 Term Rate Combination Total Real estate loans: Residential $ 208 $ 239 $ 447 Home Equity $ 77 76 153 Individuals' loans for household and other personal expenditures 6 6 Total $ 77 $ 290 $ 239 $ 606 Three Months Ended September 30, 2017 Term Rate Combination Total Commercial and industrial loans $ 5 $ 5 Real estate loans: Residential $ 122 122 Home equity 73 73 Total $ 5 $ 195 $ 200 Nine Months Ended September 30, 2017 Term Rate Combination Total Commercial and industrial loans $ 5 $ 168 $ 173 Real estate loans: Commercial and farmland 41 $ 61 232 334 Residential 466 42 508 Home equity 73 73 Total $ 46 $ 600 $ 442 $ 1,088 Loans secured by residential real estate made up 100 percent of the post-modification balance of troubled debt restructured loans made in the three months ended September 30, 2018 . The same loan classification made up 99 percent of the post-modification balance of troubled debt restructured loans made in the nine months ended September 30, 2018. The following tables summarize troubled debt restructures that occurred during the twelve months ended September 30, 2018 that subsequently defaulted during the period indicated and remained in default at period end. There were no troubled debt restructures that occurred during the twelve months ended September 30, 2017 that subsequently defaulted during the three and nine month periods ended September 30, 2017 and remained in default at September 30, 2017. A loan is considered in default if it is 30 or more days past due. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Number of Loans Recorded Balance Number of Loans Recorded Balance Real estate loans: Commercial and farmland 1 $ 262 1 $ 262 Residential 2 83 4 152 Individuals' loans for household and other personal expenditures 1 11 1 11 Total 4 $ 356 6 $ 425 For potential consumer loan restructures, impairment evaluation occurs prior to modification. Any subsequent impairment is typically addressed through the charge-off process, or may be addressed through a specific reserve. Consumer troubled debt loan restructures are generally included in the general historical allowance for loan loss at the post modification balance. Consumer non-accrual and delinquent troubled debt loan restructures are also considered in the calculation of the non-accrual and delinquency trend environmental allowance allocation. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $1,045,000 and $2,302,000 at September 30, 2018 and December 31, 2017, respectively. Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for impairment under ASC 310. Any resulting specific reserves are included in the allowance for loan losses. Commercial troubled debt loan restructures 30 - 89 days delinquent are included in the calculation of the delinquency trend environmental allocation in the allowance for loan losses. With the exception of the acquired loans excluded from the allowance for loan losses, all commercial non-impaired loans, including non-accrual and 90-days or more delinquent, are included in the ASC 450 loss estimate. |
Purchased Credit Impaired Loans
Purchased Credit Impaired Loans | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Purchased Credit Impaired Loans | PURCHASED CREDIT IMPAIRED LOANS Purchased Credit Impaired Loans are included in NOTE 4. LOANS AND ALLOWANCE, in the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q. As described in NOTE 4, purchased loans are recorded at the acquisition date fair value, which could result in a fair value discount or premium. Purchased loans with evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments are accounted for under ASC 310-30, Loans Acquired with Deteriorated Credit Quality . The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans. The carrying amount of Purchased Credit Impaired Loans as of September 30, 2018 and December 31, 2017 was $20.6 million and $25.3 million , respectively; with no required allowance for loan losses. As customer cash flow expectations improve, nonaccretable yield can be reclassified to accretable yield. The accretable yield, or income expected to be collected, and reclassifications from nonaccretable, are identified in the table below. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Beginning balance $ 2,423 $ 2,890 Additions Accretion (1,004 ) (2,441 ) Reclassification from nonaccretable 798 1,768 Disposals (16 ) (16 ) Ending balance $ 2,201 $ 2,201 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Beginning balance $ 2,607 $ 3,951 Additions 941 1,608 Accretion (686 ) (5,082 ) Reclassification from nonaccretable 449 3,501 Disposals (667 ) Ending balance $ 3,311 $ 3,311 The following table presents loans acquired, as of the respective acquisition date, during the nine months ended September 30, 2017, for which it was probable that all contractually required payments would not be collected. There were no loans acquired during the nine months ended September 30, 2018. IAB Arlington Bank Contractually required payments receivable at acquisition date $ 14,131 $ 6,183 Nonaccretable difference 8,352 2,891 Expected cash flows at acquisition date 5,779 3,292 Accretable difference 941 667 Basis in loans at acquisition date $ 4,838 $ 2,625 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Goodwill is recorded on the acquisition date of an entity. During the measurement period, the Corporation may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. The IAB acquisition on July, 14, 2017 resulted in $153,636,000 of goodwill. The Arlington Bank acquisition on May 19, 2017 resulted in $47,719,000 of goodwill, which includes a reduction of $469,000 . This reduction was recorded in the third quarter of 2017 as a measurement period adjustment. Details regarding the IAB and Arlington Bank acquisitions are discussed in NOTE 2. ACQUISITIONS of these Notes to Consolidated Condensed Financial Statements. There have been no changes in goodwill since December 31, 2017 , resulting in a goodwill balance of $445,355,000 as of September 30, 2018 . 2017 Balance, January 1 $ 244,000 Goodwill acquired 201,824 Measurement period adjustment (469 ) Balance, December 31 $ 445,355 |
Other Intangibles
Other Intangibles | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangibles | OTHER INTANGIBLES Core deposit intangibles and other intangibles are recorded on the acquisition date of an entity. During the measurement period, the Corporation may record subsequent adjustments to these intangibles for provisional amounts recorded at the acquisition date. The IAB acquisition on July 14, 2017 resulted in a core deposit intangible of $13,638,000 and other intangibles, consisting of non-compete intangibles, of $3,765,000 . The Arlington Bank acquisition on May 19, 2017 resulted in a core deposit intangible of $4,526,000 . Details regarding the IAB and Arlington Bank acquisitions are discussed in NOTE 2. ACQUISITIONS of these Notes to Consolidated Condensed Financial Statements. The carrying basis and accumulated amortization of recognized core deposit intangibles and other intangibles are noted below. September 30, 2018 December 31, 2017 Gross carrying amount $ 85,869 $ 63,940 Core deposit intangibles acquired 18,164 Other intangibles acquired 3,765 Accumulated amortization (59,815 ) (54,721 ) Total other intangibles $ 26,054 $ 31,148 The core deposit intangibles and other intangibles are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of two to ten years. Estimated future amortization expense is summarized as follows: Amortization Expense 2018 $ 1,625 2019 5,169 2020 3,632 2021 3,427 2022 3,325 After 2022 8,876 $ 26,054 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash payments principally related to certain variable-rate liabilities. The Corporation also has derivatives that are a result of a service the Corporation provides to certain qualifying customers, and, therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. The Corporation manages a matched book with respect to its derivative instruments offered as a part of this service to its customers in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk The Corporation’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of September 30, 2018 , the Corporation had four interest rate swaps with a notional amount of $46.0 million and one interest rate cap with a notional amount of $13.0 million that were designated as cash flow hedges. As of December 31, 2017 , the Corporation had five interest rate swaps with a notional amount of $56.0 million and one interest rate cap with a notional amount of $13.0 million that were designated as cash flow hedges. A $10.0 million interest rate swap used to hedge the variable cash outflows associated with a Federal Home Loan Bank advance matured in the third quarter of 2018. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2018 , $26.0 million of the interest rate swaps and the $13.0 million interest rate cap were used to hedge the variable cash outflows (LIBOR-based) associated with existing trust preferred securities when the outflows converted from a fixed rate to variable rate in September of 2012. In addition, the remaining $20.0 million of interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with two Federal Home Loan Bank advances. During the three and nine months ended September 30, 2018 , and 2017 , the Corporation did not recognize any ineffectiveness. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Corporation's variable-rate liabilities. During the next twelve months, the Corporation expects to reclassify $249,000 from accumulated other comprehensive income to interest expense. Non-designated Hedges The Corporation does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers. The Corporation executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Corporation executes with a third party, such that the Corporation minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of September 30, 2018 , the notional amount of customer-facing swaps was approximately $420,388,000 . This amount is offset with third party counterparties, as described above. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Corporation’s derivative financial instruments, as well as their classification on the Balance Sheet, as of September 30, 2018 , and December 31, 2017 . Asset Derivatives Liability Derivatives September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Balance Fair Balance Fair Balance Fair Balance Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ 548 Other Assets $ 18 Other Liabilities $ 387 Other Liabilities $ 1,383 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 13,763 Other Assets $ 7,305 Other Liabilities $ 13,763 Other Liabilities $ 7,305 The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Interest Rate Products $ 210 $ (10 ) $ 1,009 $ (380 ) Effect of Derivative Instruments on the Income Statement The Corporation did not recognize any gains or losses from derivative financial instruments in the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2018 and 2017 . The amount of gain (loss) reclassified from other comprehensive income into income is included in the table below for the periods indicated. Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Three Months Ended Three Months Ended Interest rate contracts Interest Expense $ (93 ) $ (240 ) Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Nine Months Ended Nine Months Ended Interest rate contracts Interest Expense $ (368 ) $ (759 ) The Corporation’s exposure to credit risk occurs because of nonperformance by its counterparties. The counterparties approved by the Corporation are usually financial institutions, which are well capitalized and have credit ratings through Moody’s and/or Standard & Poor’s at or above investment grade. The Corporation’s control of such risk is through quarterly financial reviews, comparing mark-to-market values with policy limitations, credit ratings and collateral pledging. Credit-risk-related Contingent Features The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well or adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. Additionally, the Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. As of September 30, 2018 , the termination value of derivatives in a net liability position related to these agreements was $394,000 . As of September 30, 2018 , the Corporation has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $3,315,000 . If the Corporation had breached any of these provisions at September 30, 2018 , it could have been required to settle its obligations under the agreements at their termination value. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Disclosures About Fair Value of Assets and Liabilities | DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES The Corporation used fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances. As defined in ASC 820, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. The Corporation values its assets and liabilities in the principal market where it sells the particular asset or transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability). Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of the Corporation. Unobservable inputs are assumptions based on the Corporation’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs for which there is little or no market activity (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation considers an input to be significant if it drives 10 percent or more of the total fair value of a particular asset or liability. RECURRING MEASUREMENTS Assets and liabilities are considered to be measured at fair value on a recurring basis if fair value is measured regularly (i.e., daily, weekly, monthly or quarterly). Recurring valuation occurs at a minimum on the measurement date. Assets and liabilities are considered to be measured at fair value on a nonrecurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the balance sheet. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment or recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying Consolidated Condensed Balance Sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Corporation currently has no securities classified within Level 1 of the hierarchy. Where significant observable inputs, other than Level 1 quoted prices, are available, securities are classified within Level 2 of the valuation hierarchy. Level 2 securities include government-sponsored agency and mortgage backs and state and municipal securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include state and municipal, government-sponsored mortgage backs and corporate obligations securities. Level 3 fair value for securities was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3. Interest Rate Derivative Agreements See information regarding the Corporation’s interest rate derivative products in NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at September 30, 2018 , and December 31, 2017 . Fair Value Measurements Using: September 30, 2018 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Government-sponsored agency securities $ 18,358 $ 18,358 State and municipal 600,168 596,888 $ 3,280 U.S. Government-sponsored mortgage-backed securities 530,605 530,601 4 Corporate obligations 31 31 Interest rate swap asset 13,763 13,763 Interest rate cap 548 548 Interest rate swap liability 14,150 14,150 Fair Value Measurements Using: December 31, 2017 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: State and municipal $ 526,693 $ 522,750 $ 3,943 U.S. Government-sponsored mortgage-backed securities 470,866 470,866 Corporate obligations 31 31 Equity securities 2,357 2,353 4 Interest rate swap asset 7,305 7,305 Interest rate cap 18 18 Interest rate swap liability 8,688 8,688 Level 3 Reconciliation The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2018 and 2017 . Available for Sale Securities Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Balance at beginning of the period $ 3,970 $ 3,330 $ 3,978 $ 5,169 Included in other comprehensive income (35 ) (22 ) (59 ) 38 Principal payments (620 ) 679 (604 ) (1,220 ) Ending balance $ 3,315 $ 3,987 $ 3,315 $ 3,987 There were no gains or losses for the period included in earnings that were attributable to the changes in unrealized gains or losses related to assets or liabilities held at September 30, 2018 or December 31, 2017 . Transfers Between Levels There were no transfers in or out of Level 3 for the three and nine months ended September 30, 2018 and 2017 . Nonrecurring Measurements Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for September 30, 2018 , and December 31, 2017 . Fair Value Measurements Using September 30, 2018 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 5,344 $ 5,344 Other real estate owned 937 937 Fair Value Measurements Using December 31, 2017 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 9,576 $ 9,576 Other real estate owned 859 859 Impaired Loans (collateral dependent) Loans for which it is probable that the Corporation 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 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. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. During 2017 and 2018 , certain impaired loans were partially charged off or re-evaluated. 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. Other Real Estate Owned The fair value for impaired loans and other real estate owned is measured based on the value of the collateral securing those loans or real estate and is determined using several methods. The fair value of real estate is generally determined based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a discounted cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at September 30, 2018 and December 31, 2017 . September 30, 2018 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 3,280 Discounted cash flow Maturity/Call date 1 month to 20 yrs US Muni BQ curve A- to BBB- Discount rate 1% - 5% Corporate obligations and U.S. Government-sponsored mortgage backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Impaired loans (collateral dependent) $ 5,344 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (2%) Other real estate owned $ 937 Appraisals Discount to reflect current market conditions 0% - 24% (3%) December 31, 2017 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 3,943 Discounted cash flow Maturity/Call date 1 month to 20 yrs US Muni BQ curve A- to BBB- Discount rate .69% - 5% Corporate obligations and equity securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Impaired loans (collateral dependent) $ 9,576 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (1%) Other real estate owned $ 859 Appraisals Discount to reflect current market conditions 0% - 10% (2%) The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. State and Municipal Securities, Corporate Obligations, U.S. Government-sponsored Mortgage Backed Securities The significant unobservable inputs used in the fair value measurement of the Corporation's state and municipal securities, corporate obligations and U.S. Government-sponsored mortgage backed securities are premiums for unrated securities and marketability discounts. Significant increases or decreases in either of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, changes in either of those inputs will not affect the other input. Fair Value of Financial Instruments The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 , and December 31, 2017 . September 30, 2018 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 142,501 $ 142,501 Interest-bearing time deposits 66,763 66,763 Investment securities available for sale 1,149,162 $ 1,145,847 $ 3,315 Investment securities held to maturity 476,089 458,087 10,365 Loans held for sale 3,022 3,022 Loans 7,009,665 6,793,227 Federal Home Loan Bank stock 24,588 24,588 Interest rate swap and cap asset 14,311 14,311 Interest receivable 38,531 38,531 Liabilities: Deposits $ 7,633,152 $ 6,083,491 $ 1,522,591 Borrowings: Federal funds purchased 90,000 90,000 Securities sold under repurchase agreements 118,824 118,696 Federal Home Loan Bank advances 385,458 379,309 Subordinated debentures and term loans 138,408 124,806 Interest rate swap liability 14,150 14,150 Interest payable 5,920 5,920 December 31, 2017 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 154,905 $ 154,905 Interest-bearing time deposits 35,027 35,027 Investment securities available for sale 999,947 $ 995,969 $ 3,978 Investment securities held to maturity 560,655 556,305 11,903 Loans held for sale 7,216 7,216 Loans 6,676,167 6,534,877 Federal Home Loan Bank stock 23,825 23,825 Interest rate swap and cap asset 7,323 7,323 Interest receivable 37,130 37,130 Liabilities: Deposits $ 7,172,530 $ 5,741,019 $ 1,406,526 Borrowings: Federal funds purchased 144,038 144,038 Securities sold under repurchase agreements 136,623 136,562 Federal Home Loan Bank advances 414,377 361,085 Subordinated debentures and term loans 139,349 120,085 Interest rate swap liability 8,688 8,688 Interest payable 4,390 4,390 The methods utilized to estimate the fair value of financial instruments at December 31, 2017 did not necessarily represent an exit price. In accordance with the Corporation's adoption of ASU 2016-01 as of January 1, 2018, the methods utilized to measure the fair value of financial instruments at September 30, 2018 represent an approximation of exit price; however, an actual exit price may differ. |
Transfers Accounted for as Secu
Transfers Accounted for as Secured Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Transfers Accounted for as Secured Borrowings | TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of September 30, 2018 and December 31, 2017 were: September 30, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 109,695 $ 1,514 $ 7,615 $ 118,824 December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 126,187 $ 1,340 $ 1,500 $ 7,596 $ 136,623 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of September 30, 2018 and 2017 : Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2017 $ 8,970 $ (1,125 ) $ (10,753 ) $ (2,908 ) Other comprehensive income before reclassifications (30,032 ) 1,039 (28,993 ) Amounts reclassified from accumulated other comprehensive income (3,173 ) 291 (2,882 ) Period change (33,205 ) 1,330 — (31,875 ) Reclassification adjustment under ASU 2018-02 1,932 (242 ) (2,316 ) (626 ) Balance at September 30, 2018 $ (22,303 ) $ (37 ) $ (13,069 ) $ (35,409 ) Balance at December 31, 2016 $ 1,035 $ (1,774 ) $ (12,842 ) $ (13,581 ) Other comprehensive income before reclassifications 8,124 (246 ) 7,878 Amounts reclassified from accumulated other comprehensive income (973 ) 493 (175 ) (655 ) Period change 7,151 247 (175 ) 7,223 Balance at September 30, 2017 $ 8,186 $ (1,527 ) $ (13,017 ) $ (6,358 ) The following tables present the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2018 and 2017 . Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended September 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2018 2017 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 1,285 $ 332 Other income - net realized gains on sales of available for sale securities Related income tax expense (270 ) (116 ) Income tax expense $ 1,015 $ 216 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (93 ) $ (240 ) Interest expense - subordinated debentures and term loans Related income tax benefit 20 84 Income tax expense $ (73 ) $ (156 ) Unrealized gains (losses) on defined benefit plans Amortization of prior service costs $ 89 Other expenses - salaries and employee benefits Related income tax expense (31 ) Income tax expense $ — $ 58 Total reclassifications for the period, net of tax $ 942 $ 118 Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2018 2017 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 4,016 $ 1,497 Other income - net realized gains on sales of available for sale securities Related income tax expense (843 ) (524 ) Income tax expense $ 3,173 $ 973 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (368 ) $ (759 ) Interest expense - subordinated debentures and term loans Related income tax benefit 77 266 Income tax expense $ (291 ) $ (493 ) Unrealized gains (losses) on defined benefit plans Amortization of net loss and prior service costs $ 269 Other expenses - salaries and employee benefits Related income tax expense (94 ) Income tax expense $ — $ 175 Total reclassifications for the period, net of tax $ 2,882 $ 655 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES of these Notes to Consolidated Condensed Financial Statements. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Stock options and RSAs have been issued to directors, officers and other management employees under the Corporation's 1999 Long-term Equity Incentive Plan and the 2009 Long-term Equity Incentive Plan. The stock options, which have a ten year life, become 100 percent vested based on time ranging from six months to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on NASDAQ on the date of grant. The RSAs issued to employees and non-employee directors provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after three years. The RSAs vest only if the employee is actively employed by the Corporation on the vesting date and, therefore, any unvested shares are forfeited. For non-employee directors, the RSAs vest only if the non-employee director remains as an active board member on the vesting date and, therefore, any unvested shares are forfeited. The RSAs for employees and non-employee directors retired from the Corporation are either immediately vested at retirement or continue to vest after retirement, depending on the plan under which the shares were granted. Deferred Stock Units ("DSU") can be credited to non-employee directors who have elected to defer payment of compensation under the Corporation's 2008 Equity Compensation Plan for Non-employee Directors. DSUs credited are equal to the restricted shares that the non-employee director would have received under the plan. As of September 30, 2018 , there were no outstanding DSUs. The Corporation’s 2009 ESPP provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000 . Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the three and nine months ended September 30, 2018 was $894,000 and $2,546,000 , respectively, compared to $823,000 and $1,884,000 , respectively, for the three and nine months ended September 30, 2017 . Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying Consolidated Condensed Statements of Income. Share-based compensation expense recognized in the Consolidated Condensed Statements of Income is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 2.2 percent for the nine months ended September 30, 2018 , based on historical experience. The following table summarizes the components of the Corporation's share-based compensation awards recorded as expense and the income tax benefit of such awards. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock and ESPP Options Pre-tax compensation expense $ 39 $ 23 $ 88 $ 93 Income tax benefit (15 ) (9 ) (153 ) (313 ) Stock and ESPP option expense, net of income taxes $ 24 $ 14 $ (65 ) $ (220 ) Restricted Stock Awards Pre-tax compensation expense $ 855 $ 800 $ 2,458 $ 1,791 Income tax benefit (205 ) (280 ) (952 ) (1,160 ) Restricted stock awards expense, net of income taxes $ 650 $ 520 $ 1,506 $ 631 Total Share-Based Compensation Pre-tax compensation expense $ 894 $ 823 $ 2,546 $ 1,884 Income tax benefit (220 ) (289 ) (1,105 ) (1,473 ) Total share-based compensation expense, net of income taxes $ 674 $ 534 $ 1,441 $ 411 As of September 30, 2018 , unrecognized compensation expense related to RSAs was $8,480,000 and is expected to be recognized over a weighted-average period of 1.68 years. The Corporation did no t have any unrecognized compensation expense related to stock options as of September 30, 2018 . Stock option activity under the Corporation's stock option plans as of September 30, 2018 and changes during the nine months ended September 30, 2018 , were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2018 152,652 $ 16.71 Exercised (51,243 ) $ 21.33 Cancelled (200 ) $ 28.25 Outstanding September 30, 2018 101,209 $ 14.34 2.41 $ 3,101,835 Vested and Expected to Vest at September 30, 2018 101,209 $ 14.34 2.41 $ 3,101,835 Exercisable at September 30, 2018 101,209 $ 14.34 2.41 $ 3,101,835 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of the first nine months of 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their stock options on September 30, 2018 . The amount of aggregate intrinsic value will change based on the fair market value of the Corporation's common stock. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2018 and 2017 was $1,203,000 and $1,675,000 , respectively. Cash receipts of stock options exercised during this same period were $1,093,000 and $2,323,000 , respectively. The following table summarizes information on unvested RSAs outstanding as of September 30, 2018 : Number of Shares Weighted-Average Unvested RSAs at January 1, 2018 366,993 $ 29.79 Granted 105,100 $ 48.11 Vested (106,797 ) $ 23.74 Forfeited (5,560 ) $ 38.31 Unvested RSAs at September 30, 2018 359,736 $ 36.82 The grant date fair value of ESPP options was estimated at the beginning of the July 1, 2018 quarterly offering period of approximately $39,424 . The ESPP options vested during the three months ending September 30, 2018 , leaving no unrecognized compensation expense related to unvested ESPP options at September 30, 2018 . |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax | INCOME TAX The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated statements of income for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended 2018 2017 2018 2017 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 21% for 2018 and 35% for 2017 $ 10,414 $ 11,304 $ 29,500 $ 32,900 Tax-exempt interest income (2,118 ) (2,881 ) (6,178 ) (8,062 ) Share-based compensation (38 ) (78 ) (570 ) (862 ) Tax-exempt earnings and gains on life insurance (197 ) (551 ) (655 ) (1,905 ) Tax credits (42 ) (61 ) (65 ) (249 ) Other 459 206 1,018 492 Actual Tax Expense $ 8,478 $ 7,939 $ 23,050 $ 22,314 Effective Tax Rate 17.1 % 24.6 % 16.4 % 23.7 % |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted-average shares outstanding during the reporting period. Diluted net income per share is computed by dividing net income by the combination of the weighted-average shares outstanding during the reporting period and all potentially dilutive common shares. Potentially dilutive common shares include stock options and RSAs issued under the Corporation's share-based compensation plans. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. The following table reconciles basic and diluted net income per share for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, 2018 2017 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 41,113 49,286,945 $ 0.83 $ 24,358 48,431,880 $ 0.50 Effect of potentially dilutive stock options and restricted stock awards 205,074 211,894 Diluted net income per share $ 41,113 49,492,019 $ 0.83 $ 24,358 48,643,774 $ 0.50 Nine Months Ended September 30, 2018 2017 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 117,426 49,244,403 $ 2.38 $ 71,687 43,845,675 $ 1.64 Effect of potentially dilutive stock options and restricted stock awards 213,782 217,544 Diluted net income per share $ 117,426 49,458,185 $ 2.37 $ 71,687 44,063,219 $ 1.63 For the three and nine months ended September 30, 2018 and 2017 , there were no stock options with an option price greater than the average market price of the common shares. |
Impact of Accounting Changes
Impact of Accounting Changes | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of Accounting Changes | IMPACT OF ACCOUNTING CHANGES The Corporation continually monitors potential accounting changes and pronouncements. The following pronouncements have been deemed to have the most applicability to the Corporation's financial statements: FASB Accounting Standards Updates No. 2018-14 - Compensation - Retirement Benefits -Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans Summary - The FASB has issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans, that applies to all employers that sponsor defined benefit pension or other postretirement plans. The amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Disclosure Requirements Deleted * The amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year. * The amount and timing of plan assets expected to be returned to the employer. * Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan. * For public entities, the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. Disclosure Requirements Added * The weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates. * An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: * The projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets. * The accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities. Early adoption is permitted for all entities. The Corporation plans to adopt the standard in the first quarter of 2020, but adoption of the standard is not expected to have a significant impact on the Corporation’s disclosures. FASB Accounting Standards Updates No. 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement Summary - The FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. Certain disclosure requirements related to transfers between Level 1 and Level 2 of the fair value hierarchy and Level 3 valuation processes were removed from Topic 820. Disclosures were also added to Topic 820 for 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. In addition, the amendments eliminate at a minimum from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. The amendments in ASU No. 2018-13 are 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 be applied prospectively for only the most recent interim or annual period presented in the initial fiscal 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. The Corporation plans to adopt the standard in the first quarter of 2020, but adoption of the standard is not expected to have a significant impact on the Corporation’s disclosures. FASB Accounting Standards Updates No. 2018-11 - Leases (Topic 842): Targeted Improvements Summary - The FASB has issued Accounting Standards Update (ASU) No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU is intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provides a new transition method and a practical expedient for separating components of a contract. The amendments ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP in Topic 840, Leases. An entity that elects this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments do not change the existing disclosure requirements in Topic 840 (for example, they do not create interim disclosure requirements that entities previously were not required to provide). The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: * The timing and pattern of transfer of the nonlease component(s) and associated lease component are the same. * The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic 606) is required to disclose certain information, by class of underlying asset, as specified in the ASU. The amendments in ASU 2018-11 related to separating components of a contract affect the amendments in ASU No. 2016-02, which are not yet effective but can be early adopted. For entities that have not adopted Topic 842 before the issuance of this ASU, the effective date and transition requirements for the amendments in this update related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. All entities, including early adopters, that elect the practical expedient related to separating components of a contract in this ASU must apply the expedient, by class of underlying asset, to all existing lease transactions that qualify for the expedient at the date elected. The Corporation plans to adopt this ASU in the first quarter of 2019 and is currently evaluating all practical expedient options. FASB Accounting Standards Update No. 2018-07 - Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Summary - The FASB has issued an Accounting Standards Update (ASU) intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. The ASU expands the scope of Topic 718, Compensation-Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The ASU supersedes Subtopic 505-50, Equity-Equity-Based Payments to Non-Employees. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other companies, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than a Corporation's adoption date of Topic 606, Revenue from Contracts with Customers. The Corporation plans to adopt the standard in the first quarter of 2019, but adoption of the standard is not expected to have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2017-08 - Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities Summary - The FASB has issued Accounting Standards Update (ASU) No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. Under current GAAP, entities normally amortize the premium as an adjustment of yield over the contractual life of the instrument. Stakeholders have expressed concerns with the current approach on the basis that current GAAP excludes certain callable debt securities from consideration of early repayment of principal even if the holder is certain that the call will be exercised. As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium is recorded as a loss in earnings. Further, there is diversity in practice (1) in the amortization period for premiums of callable debt securities, and (2) in how the potential for exercise of a call is factored into current impairment assessments. Another issue is that the practice in the United States is to quote, price, and trade callable debt securities assuming a model that incorporates consideration of calls (also referred to as “yield-to-worst” pricing). The ASU shortens the amortization period for certain callable debt securities held at a premium and requires the premium to be amortized to the earliest call date. However, the amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for public business entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods. For other entities, the amendments are effective for annual periods beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2020. Early adoption is permitted. Entities are required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The entity is required to provide disclosures about a change in accounting principle in the period of adoption. The Corporation plans to adopt ASU 2017-08 in the first quarter of 2019. Adoption of this ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Summary - The FASB has issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This new guidance was issued to address concerns that current generally accepted accounting principles (GAAP) restricts the ability to record credit losses that are expected, but do not yet meet the “probable” threshold by replacing the current “incurred loss” model for recognizing credit losses with an “expected life of loan loss” model referred to as the Current Expected Credit Loss (CECL) model. Under the CECL model, certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, are required to be presented at the net amount expected to be collected. The measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under current GAAP, which delays recognition until it is probable a loss has been incurred. The change could materially affect how the allowance for loan losses is determined and cause a charge to earnings through the provision for loan losses. Such would adversely affect the financial condition of the Corporation. The ASU is effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Corporation plans to adopt this ASU in the first quarter of 2020. The Corporation expects a one-time cumulative-effect adjustment to the allowance for loan losses will be recognized in retained earnings on the consolidated balance sheet as of the beginning of the first reporting period in which the new standard is effective, as is consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016. The Corporation established an implementation team that meets on a regular basis to oversee activities and monitor progress. Third party software is being implemented and model development is in progress. The magnitude of any such adjustment or the overall impact of the new standard on the financial condition or results of operations cannot yet be determined. FASB Accounting Standards Update No. 2016-02 - Leases (Topic 842) Summary - The FASB has issued its new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: • A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and • A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Nonpublic business entities should apply the amendments for fiscal years beginning after December 15, 2019 (i.e., January 1, 2020, for a calendar year entity), and interim periods within fiscal years beginning after December 15, 2020. Early application is permitted for all public business entities and all nonpublic business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Corporation plans to adopt this ASU in the first quarter of 2019. The Corporation has an implementation team working through the provisions of ASU 2016-02, including a review of all leases (primarily operating leases related to banking centers and office space) to assess the impact on accounting, disclosures and the election of certain practical expedients. The Corporation has selected and is implementing a third party software solution to assist with the accounting under the new standard. Based upon leases outstanding at September 30, 2018, the Corporation anticipates the balance sheet impact of implementation in the first quarter of 2019 to be a one-time increase to other assets and other liabilities of approximately $25 million , but does not expect the impact to the income statement or regulatory capital ratios to be material. Decisions to enter into new leases and renew or modify existing leases prior to the implementation date could impact these estimates. |
General Litigation and Regulato
General Litigation and Regulatory Examinations | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation and Regulatory Examinations | GENERAL LITIGATION AND REGULATORY EXAMINATIONS The Corporation is subject to claims and lawsuits that arise primarily in the ordinary course of business. Additionally, the Corporation is subject to periodic examinations by various regulatory agencies. It is the opinion of management that the disposition or ultimate resolution of such claims, lawsuits, and examinations will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Corporation. |
Consummation of Merger
Consummation of Merger | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Consummation of Merger | ACQUISITIONS Independent Alliance Banks, Inc. On November 21, 2016, the Corporation purchased 495,112 shares, or 12.1 percent, of IAB's outstanding common stock from an IAB shareholder for $19.8 million , or $40.00 per share. On July 14, 2017, the Corporation acquired the remaining shares of IAB common stock. IAB, an Indiana Corporation, merged with and into the Corporation, whereupon the separate corporate existence of IAB ceased and the Corporation survived. Immediately following the merger, IAB's wholly-owned subsidiary, iAB Financial Bank, merged with and into the Bank, with the Bank continuing as the surviving bank. IAB was headquartered in Fort Wayne, Indiana and had 16 banking centers serving the Fort Wayne market. Pursuant to the merger agreement, each IAB shareholder received 1.653 shares of the Corporation's common stock for each outstanding share of IAB common stock held. The Corporation issued approximately 6.0 million shares of common stock. The transaction value for the remaining shares of common stock, not owned by the Corporation, was approximately $238.8 million , resulting in a total purchase price of $258.6 million . The Corporation engaged in this transaction with the expectation that it would be accretive to income and add a new market area with a demographic profile consistent with many of the current Indiana markets served by the Bank. Goodwill resulted from this transaction due to the expected synergies and economies of scale. In the third quarter of 2017, ASC 805-10 - Business Combinations, required the Corporation to remeasure the 12.1 percent equity interest in IAB's common stock and recognize the resulting gain or loss, if any, in earnings. The remeasurement was based upon the closing price of IAB's common stock immediately prior to the acquisition announcement, and prior to the Corporation obtaining control of IAB. The trading price of IAB's common stock subsequent to the acquisition announcement included a control or acquisition premium and was not indicative of the fair value of the Corporation's pre-existing equity interest immediately prior to the acquisition announcement. The fair value of the equity interest in IAB's common stock after the remeasurement was $19.8 million . The Corporation recorded a $50,000 loss in the third quarter of 2017 as a result of the remeasurement. 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 valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the IAB acquisition is detailed in the following table. Fair Value Cash and cash equivalents $ 6,016 Interest-bearing time deposits 248,212 Investment securities 4,078 Loans held for sale 594 Loans 725,382 Premises and equipment 10,107 Federal Home Loan Bank stock 4,810 Interest receivable 3,445 Cash surrender value of life insurance 26,964 Other assets 11,780 Deposits (862,271 ) Securities sold under repurchase agreements (17,915 ) Federal Home Loan Bank Advances (47,575 ) Subordinated debentures (10,583 ) Interest payable (1,005 ) Other liabilities (14,472 ) Net tangible assets acquired 87,567 Other Intangible assets 17,403 Goodwill 153,636 Purchase price $ 258,606 Of the total purchase price, $17,403,000 has been allocated to other intangible assets. Approximately $13.6 million was allocated to a core deposit intangible, which will be amortized over its estimated life of 10 years. Approximately $3.8 million was allocated to a non-compete intangible, which will be amortized over its estimated life of 2 years. The remaining purchase price was allocated to goodwill, which is not deductible for tax purposes. Acquired loan data for IAB can be found in the table below: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 4,838 $ 14,131 $ 8,352 Acquired receivables not subject to ASC 310-30 $ 720,544 $ 864,613 $ 9,786 Purchased loans with evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments are accounted for under ASC 310-30, Loans Acquired with Deteriorated Credit Quality . The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans. The Arlington Bank On May 19, 2017, the Corporation acquired 100 percent of Arlington Bank. Arlington Bank, an Ohio savings bank, merged with and into the Bank, with the Bank continuing as the surviving bank. Arlington Bank was headquartered in Columbus, Ohio and had 3 banking centers serving the Columbus, Ohio market. Pursuant to the merger agreement, each Arlington Bank shareholder received 2.7245 shares of the Corporation's common stock for each outstanding share of Arlington Bank common stock held. The Corporation issued approximately 2.1 million shares of common stock, which was valued at approximately $82.6 million . The Corporation engaged in this transaction with the expectation that it would be accretive to income and expand the existing footprint in Columbus, Ohio. Goodwill resulted from this transaction due to the expected synergies and 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 valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Arlington Bank acquisition is detailed in the following table. Fair Value Cash and cash equivalents $ 48,532 Interest-bearing time deposits 292 Loans held for sale 7,626 Loans 224,680 Premises and equipment 1,986 Federal Home Loan Bank stock 1,091 Interest receivable 653 Other assets 1,620 Deposits (252,783 ) Interest payable (244 ) Other liabilities (3,106 ) Net tangible assets acquired 30,347 Core deposit intangible 4,526 Goodwill 47,719 Purchase price $ 82,592 Of the total purchase price, $4,526,000 has been allocated to a core deposit intangible that will be amortized over its estimated life of 10 years. The remaining purchase price was allocated to goodwill, which is not deductible for tax purposes. Acquired loan data for Arlington Bank can be found in the table below: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 2,625 $ 6,183 $ 2,891 Acquired receivables not subject to ASC 310-30 $ 222,055 $ 308,857 $ 2,741 Pro Forma Financial Information The results of operations of Arlington Bank and IAB have been included in the Corporation's consolidated financial statements since the acquisition dates. The following schedule includes pro forma results for the year ended December 31, 2017, as if the Arlington Bank and IAB acquisitions occurred as of the beginning of the period presented. 2017 Total revenue (net interest income plus other income) $ 380,324 Net income $ 95,009 Net income available to common shareholders Earnings per share: Basic $ 1.94 Diluted $ 1.93 The pro forma information includes adjustments for interest income on loans, interest expense on deposits and borrowings, premises expense for banking centers acquired and amortization of intangibles arising from the transactions and the related income tax effects. The pro forma information for the year ended December 31, 2017 includes operating revenue of $9.0 million and $21.4 million from the Arlington Bank and IAB acquisitions since the date of acquisition, respectively. Additionally, $15.4 million , net of tax, of expenses directly attributable to the Arlington Bank and IAB acquisitions were included in the year ended December 31, 2017 pro forma information. The pro forma information is presented for information purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisitions been consummated as of that time, nor is it intended to be a projection of future results. CONSUMMATION OF MERGER MBT Financial Corp. On October 9, 2018, the Corporation and MBT Financial Corp., a Michigan corporation ("MBT"), entered into an Agreement and Plan of Reorganization and Merger, pursuant to which MBT will, subject to the terms and conditions of the merger agreement, merge with and into the Corporation, whereupon the separate corporate existence of MBT will cease and the Corporation will survive. Immediately following the merger, MBT's wholly-owned subsidiary, Monroe Bank & Trust, shall be merged with and into the Bank, with the Bank continuing as the surviving bank. Based on the closing price of the Corporation's common stock on October 9, 2018 of $45.71 per share, the transaction value is estimated at approximately $290.9 million . The transaction is expected to be a tax-free exchange for MBT's shareholders who will be receiving the Corporation's common stock pursuant to the merger. Subject to MBT's shareholders' approval of the merger, regulatory approvals and other customary closing conditions, the parties anticipate completing the merger in the first half of 2019. MBT's total assets as of June 30, 2018 were $1.3 billion . |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of preliminary valuations of the fair value of assets acquired and liabilities assumed | 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 valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the IAB acquisition is detailed in the following table. Fair Value Cash and cash equivalents $ 6,016 Interest-bearing time deposits 248,212 Investment securities 4,078 Loans held for sale 594 Loans 725,382 Premises and equipment 10,107 Federal Home Loan Bank stock 4,810 Interest receivable 3,445 Cash surrender value of life insurance 26,964 Other assets 11,780 Deposits (862,271 ) Securities sold under repurchase agreements (17,915 ) Federal Home Loan Bank Advances (47,575 ) Subordinated debentures (10,583 ) Interest payable (1,005 ) Other liabilities (14,472 ) Net tangible assets acquired 87,567 Other Intangible assets 17,403 Goodwill 153,636 Purchase price $ 258,606 Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Arlington Bank acquisition is detailed in the following table. Fair Value Cash and cash equivalents $ 48,532 Interest-bearing time deposits 292 Loans held for sale 7,626 Loans 224,680 Premises and equipment 1,986 Federal Home Loan Bank stock 1,091 Interest receivable 653 Other assets 1,620 Deposits (252,783 ) Interest payable (244 ) Other liabilities (3,106 ) Net tangible assets acquired 30,347 Core deposit intangible 4,526 Goodwill 47,719 Purchase price $ 82,592 |
Schedule of acquired loan data | Acquired loan data for IAB can be found in the table below: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 4,838 $ 14,131 $ 8,352 Acquired receivables not subject to ASC 310-30 $ 720,544 $ 864,613 $ 9,786 Acquired loan data for Arlington Bank can be found in the table below: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 2,625 $ 6,183 $ 2,891 Acquired receivables not subject to ASC 310-30 $ 222,055 $ 308,857 $ 2,741 |
Schedule of pro forma financial information | The results of operations of Arlington Bank and IAB have been included in the Corporation's consolidated financial statements since the acquisition dates. The following schedule includes pro forma results for the year ended December 31, 2017, as if the Arlington Bank and IAB acquisitions occurred as of the beginning of the period presented. 2017 Total revenue (net interest income plus other income) $ 380,324 Net income $ 95,009 Net income available to common shareholders Earnings per share: Basic $ 1.94 Diluted $ 1.93 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of investment securities | The amortized cost, gross unrealized gains, gross unrealized losses and approximate market value of the Corporation's investment securities at the dates indicated were: Amortized Gross Gross Fair Available for sale at September 30, 2018 U.S. Government-sponsored agency securities $ 18,492 $ 134 $ 18,358 State and municipal 611,528 2,920 14,280 600,168 U.S. Government-sponsored mortgage-backed securities 547,223 71 16,689 530,605 Corporate obligations 31 31 Total available for sale 1,177,274 2,991 31,103 1,149,162 Held to maturity at September 30, 2018 U.S. Government-sponsored agency securities 22,618 833 21,785 State and municipal 192,124 1,161 1,748 191,537 U.S. Government-sponsored mortgage-backed securities 260,347 300 6,514 254,133 Foreign Investments 1,000 3 997 Total held to maturity 476,089 1,461 9,098 468,452 Total Investment Securities $ 1,653,363 $ 4,452 $ 40,201 $ 1,617,614 Amortized Gross Gross Fair Available for sale at December 31, 2017 State and municipal $ 510,852 $ 16,932 $ 1,091 $ 526,693 U.S. Government-sponsored mortgage-backed securities 473,325 964 3,423 470,866 Corporate obligations 31 31 Equity securities 2,357 2,357 Total available for sale 986,565 17,896 4,514 999,947 Held to maturity at December 31, 2017 U.S. Government-sponsored agency securities 22,618 435 22,183 State and municipal 235,594 6,295 244 241,645 U.S. Government-sponsored mortgage-backed securities 301,443 3,341 1,404 303,380 Foreign Investment 1,000 1,000 Total held to maturity 560,655 9,636 2,083 568,208 Total Investment Securities $ 1,547,220 $ 27,532 $ 6,597 $ 1,568,155 |
Schedule of amortized cost and fair value of available for sale securities and held to maturity securities | The amortized cost and fair value of available for sale and held to maturity securities at September 30, 2018 and December 31, 2017 , 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. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at September 30, 2018: Due in one year or less $ 24,098 $ 24,360 $ 5,161 $ 5,178 Due after one through five years 17,294 17,511 48,155 47,042 Due after five through ten years 75,416 75,498 57,950 58,212 Due after ten years 513,243 501,188 104,476 103,887 630,051 618,557 215,742 214,319 U.S. Government-sponsored mortgage-backed securities 547,223 530,605 260,347 254,133 Total Investment Securities $ 1,177,274 $ 1,149,162 $ 476,089 $ 468,452 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2017 Due in one year or less $ 425 $ 425 $ 12,015 $ 12,158 Due after one through five years 5,040 5,204 76,146 76,334 Due after five through ten years 74,921 78,806 54,441 55,679 Due after ten years 430,497 442,289 116,610 120,657 510,883 526,724 259,212 264,828 U.S. Government-sponsored mortgage-backed securities 473,325 470,866 301,443 303,380 Equity securities 2,357 2,357 Total Investment Securities $ 986,565 $ 999,947 $ 560,655 $ 568,208 |
Schedule of gross gains on sales and redemptions of available for sale securities | Gross gains on the sales and redemptions of available for sale securities for the three and nine months ended September 30, 2018 and 2017 are shown below. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Sales and Redemptions of Available for Sale Securities: Gross gains $ 1,285 $ 382 $ 4,016 $ 1,547 Gross losses 50 50 |
Schedule of investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | The following tables show the Corporation’s gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at September 30, 2018 , and December 31, 2017 : Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at September 30, 2018 U.S. Government-sponsored agency securities $ 18,358 $ 134 $ 18,358 $ 134 State and municipal 397,852 11,780 $ 30,820 $ 2,500 428,672 14,280 U.S. Government-sponsored mortgage-backed securities 386,632 9,603 134,602 7,086 521,234 16,689 Total Temporarily Impaired Available for Sale Securities 802,842 21,517 165,422 9,586 968,264 31,103 Temporarily Impaired Held to Maturity Securities at September 30, 2018 U.S. Government-sponsored agency securities 97 3 21,688 830 21,785 833 State and municipal 44,857 857 16,326 891 61,183 1,748 U.S. Government-sponsored mortgage-backed securities 168,488 3,473 61,139 3,041 229,627 6,514 Corporate Obligations 997 3 997 3 Total Temporarily Impaired Held to Maturity Securities 214,439 4,336 99,153 4,762 313,592 9,098 Total Temporarily Impaired Investment Securities $ 1,017,281 $ 25,853 $ 264,575 $ 14,348 $ 1,281,856 $ 40,201 Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2017 State and municipal $ 13,296 $ 198 $ 35,324 $ 893 $ 48,620 $ 1,091 U.S. Government-sponsored mortgage-backed securities 182,755 1,520 68,667 1,903 251,422 3,423 Total Temporarily Impaired Available for Sale Securities 196,051 1,718 103,991 2,796 300,042 4,514 Temporarily Impaired Held to Maturity Securities at December 31, 2017 U.S. Government-sponsored agency securities 9,988 131 12,196 304 22,184 435 State and municipal 2,430 36 15,805 208 18,235 244 U.S. Government-sponsored mortgage-backed securities 62,508 485 43,078 919 105,586 1,404 Total Temporarily Impaired Held to Maturity Securities 74,926 652 71,079 1,431 146,005 2,083 Total Temporarily Impaired Investment Securities $ 270,977 $ 2,370 $ 175,070 $ 4,227 $ 446,047 $ 6,597 |
Schedule of investments in debt and equity securities reported in the financial statements at an amount less than their historical cost | Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below. September 30, 2018 December 31, 2017 Investments reported at less than historical cost: Historical cost $ 1,322,058 $ 452,644 Fair value $ 1,281,856 $ 446,047 Percent of the Corporation's investment portfolio 78.9 % 28.6 % |
Loans and Allowance (Tables)
Loans and Allowance (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Composition of loan portfolio by loan class | The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated: September 30, 2018 December 31, 2017 Commercial and industrial loans $ 1,655,569 $ 1,493,493 Agricultural production financing and other loans to farmers 88,504 121,757 Real estate loans: Construction 668,608 612,219 Commercial and farmland 2,699,629 2,562,691 Residential 965,893 962,765 Home equity 517,303 514,021 Individuals' loans for household and other personal expenditures 98,709 86,935 Lease financing receivables, net of unearned income 1,830 2,527 Other commercial loans 392,026 394,791 Loans $ 7,088,071 $ 6,751,199 Allowance for loan losses (78,406 ) (75,032 ) Net Loans $ 7,009,665 $ 6,676,167 |
Changes in allowance for loan losses | The following tables summarize changes in the allowance for loan losses by loan segment for the three and nine months ended September 30, 2018 and September 30, 2017 : Three Months Ended September 30, 2018 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, June 30, 2018 $ 31,465 $ 27,731 $ 3,921 $ 14,424 $ 2 $ 77,543 Provision for losses 256 410 159 575 1,400 Recoveries on loans 658 306 46 165 1,175 Loans charged off (313 ) (501 ) (194 ) (704 ) (1,712 ) Balances, September 30, 2018 $ 32,066 $ 27,946 $ 3,932 $ 14,460 $ 2 $ 78,406 Nine Months Ended September 30, 2018 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, December 31, 2017 $ 30,418 $ 27,343 $ 3,732 $ 13,537 $ 2 $ 75,032 Provision for losses 1,567 1,448 493 2,055 5,563 Recoveries on loans 2,060 1,858 233 915 5,066 Loans charged off (1,979 ) (2,703 ) (526 ) (2,047 ) (7,255 ) Balances, September 30, 2018 $ 32,066 $ 27,946 $ 3,932 $ 14,460 $ 2 $ 78,406 Three Months Ended September 30, 2017 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, June 30, 2017 $ 28,906 $ 25,236 $ 3,372 $ 12,955 $ 2 $ 70,471 Provision for losses 921 374 342 446 2,083 Recoveries on loans 324 1,327 51 157 1,859 Loans charged off (468 ) (190 ) (174 ) (227 ) (1,059 ) Balances, September 30, 2017 $ 29,683 $ 26,747 $ 3,591 $ 13,331 $ 2 $ 73,354 Nine Months Ended September 30, 2017 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, December 31, 2016 $ 27,696 $ 23,661 $ 2,923 $ 11,755 $ 2 $ 66,037 Provision for losses 2,279 2,023 877 2,164 7,343 Recoveries on loans 987 2,066 253 547 3,853 Loans charged off (1,279 ) (1,003 ) (462 ) (1,135 ) (3,879 ) Balances, September 30, 2017 $ 29,683 $ 26,747 $ 3,591 $ 13,331 $ 2 $ 73,354 |
Allowance for credit losses and loan portfolio by loan segment | The tables below show the Corporation’s allowance for loan losses and loan portfolio by loan segment as of the periods indicated. There was no related allowance for loan losses for loans acquired with deteriorated credit quality at September 30, 2018 or December 31, 2017. September 30, 2018 Commercial Commercial Consumer Residential Finance Total Allowance Balances: Individually evaluated for impairment $ 433 $ 433 Collectively evaluated for impairment $ 32,066 $ 27,946 $ 3,932 14,027 $ 2 77,973 Total Allowance for Loan Losses $ 32,066 $ 27,946 $ 3,932 $ 14,460 $ 2 $ 78,406 Loan Balances: Individually evaluated for impairment $ 1,614 $ 12,158 $ 8 $ 2,219 $ 15,999 Collectively evaluated for impairment 2,132,193 3,340,898 98,701 1,479,371 $ 1,830 7,052,993 Loans acquired with deteriorated credit quality 2,292 15,181 1,606 19,079 Loans $ 2,136,099 $ 3,368,237 $ 98,709 $ 1,483,196 $ 1,830 $ 7,088,071 December 31, 2017 Commercial Commercial Consumer Residential Finance Total Allowance Balances: Individually evaluated for impairment $ 666 $ 567 $ 404 $ 1,637 Collectively evaluated for impairment 29,752 26,776 $ 3,732 13,133 $ 2 73,395 Total Allowance for Loan Losses $ 30,418 $ 27,343 $ 3,732 $ 13,537 $ 2 $ 75,032 Loan Balances: Individually evaluated for impairment $ 3,345 $ 17,432 $ 5 $ 2,429 $ 23,211 Collectively evaluated for impairment 2,005,275 3,135,481 86,930 1,472,821 $ 2,527 6,703,034 Loans acquired with deteriorated credit quality 1,421 21,997 1,536 24,954 Loans $ 2,010,041 $ 3,174,910 $ 86,935 $ 1,476,786 $ 2,527 $ 6,751,199 |
Summary of non-accrual loans by loan class | The following table summarizes the Corporation’s non-accrual loans by loan class as of the periods indicated: September 30, 2018 December 31, 2017 Commercial and industrial loans $ 2,287 $ 3,275 Agriculture production financing and other loans to farmers 640 1,027 Real estate loans: Construction 764 65 Commercial and farmland 10,406 12,951 Residential 5,140 9,444 Home equity 1,126 1,928 Individuals' loans for household and other personal expenditures 58 34 Total $ 20,421 $ 28,724 |
Composition of impaired loans by loan class | The following tables show the composition of the Corporation’s impaired loans, related allowance and interest income recognized while impaired by loan class as of the periods indicated: September 30, 2018 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 6,133 $ 974 Agriculture production financing and other loans to farmers 660 640 Real estate Loans: Construction 1,352 614 Commercial and farmland 13,717 11,544 Residential 81 62 Individuals' loans for household and other personal expenditures 8 8 Total $ 21,951 $ 13,842 Impaired loans with related allowance: Real estate Loans: Residential $ 1,849 $ 1,794 $ 357 Home equity 382 363 76 Total $ 2,231 $ 2,157 $ 433 Total Impaired Loans $ 24,182 $ 15,999 $ 433 December 31, 2017 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 7,611 $ 1,536 Agriculture production financing and other loans to farmers 732 700 Real estate Loans: Commercial and farmland 16,758 15,162 Residential 833 519 Home equity 40 8 Individuals' loans for household and other personal expenditures 5 5 Total $ 25,979 $ 17,930 Impaired loans with related allowance: Commercial and industrial loans $ 812 $ 782 $ 552 Agriculture production financing and other loans to farmers 357 327 114 Real estate Loans: Commercial and farmland 2,989 2,270 567 Residential 1,616 1,572 327 Home equity 349 330 77 Total $ 6,123 $ 5,281 $ 1,637 Total Impaired Loans $ 32,102 $ 23,211 $ 1,637 Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Average Interest Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 979 $ 994 Agriculture production financing and other loans to farmers 640 640 Real estate Loans: Construction 614 930 Commercial and farmland 12,098 $ 40 12,733 $ 128 Residential 62 1 63 2 Individuals' loans for household and other personal expenditures 9 10 Total $ 14,402 $ 41 $ 15,370 $ 130 Impaired loans with related allowance: Real estate Loans: Residential $ 1,797 $ 13 $ 1,812 $ 37 Home equity 364 3 367 8 Total $ 2,161 $ 16 $ 2,179 $ 45 Total Impaired Loans $ 16,563 $ 57 $ 17,549 $ 175 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Average Interest Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 2,103 $ 4,567 Agriculture production financing and other loans to farmers 945 945 Real estate Loans: Commercial and farmland 14,129 $ 89 15,483 $ 267 Residential 588 673 2 Home equity 11 16 Individuals' loans for household and other personal expenditures 6 7 Total $ 17,782 $ 89 $ 21,691 $ 269 Impaired loans with related allowance: Commercial and industrial loans $ 1,796 $ 1,796 Agriculture production financing and other loans to farmers 337 337 Real estate Loans: Commercial and farmland 3,359 3,374 Residential 1,403 $ 8 1,395 $ 25 Home equity 331 2 334 6 Total $ 7,226 $ 10 $ 7,236 $ 31 Total Impaired Loans $ 25,008 $ 99 $ 28,927 $ 300 |
Credit quality of loan portfolio by loan class | The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the periods indicated. Consumer non-performing loans include accruing consumer loans 90-days or more delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. September 30, 2018 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,587,560 $ 18,085 $ 49,924 $ 1,655,569 Agriculture production financing and other loans to farmers 68,556 7,144 12,804 88,504 Real estate Loans: Construction 629,244 2,533 10,200 $ 26,494 $ 137 668,608 Commercial and farmland 2,551,541 67,043 78,694 2,350 1 2,699,629 Residential 175,315 5,119 2,377 778,086 4,996 965,893 Home equity 25,435 750 387 489,631 1,100 517,303 Individuals' loans for household and other personal expenditures 98,600 109 98,709 Lease financing receivables, net of unearned income 1,830 1,830 Other commercial loans 391,673 353 392,026 Loans $ 5,431,154 $ 100,674 $ 154,739 $ 1,395,161 $ 6,343 $ 7,088,071 December 31, 2017 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,418,401 $ 51,336 $ 23,386 $ 370 $ 1,493,493 Agriculture production financing and other loans to farmers 73,800 27,502 20,018 387 $ 50 121,757 Real estate Loans: Construction 587,906 828 981 $ 22,374 $ 130 612,219 Commercial and farmland 2,408,329 70,074 79,769 1,536 2,980 3 2,562,691 Residential 185,725 4,376 4,209 114 759,900 8,441 962,765 Home equity 28,554 457 286 482,661 2,063 514,021 Individuals' loans for household and other personal expenditures 86,875 60 86,935 Lease financing receivables, net of unearned income 2,527 2,527 Other commercial loans 394,222 569 394,791 Loans $ 5,099,464 $ 154,573 $ 129,218 $ 2,407 $ 50 $ 1,354,790 $ 10,697 $ 6,751,199 |
Past due aging of loan portfolio by loan class | The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, as of September 30, 2018 , and December 31, 2017 : September 30, 2018 Current 30-59 Days 60-89 Days 90 Days or More Past Due Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,649,538 $ 3,344 $ 400 $ 2,287 $ 6,031 $ 1,655,569 Agriculture production financing and other loans to farmers 87,864 640 640 88,504 Real estate loans: Construction 667,142 702 764 1,466 668,608 Commercial and farmland 2,683,494 1,859 3,870 10,406 16,135 2,699,629 Residential 955,383 4,873 497 5,140 10,510 965,893 Home equity 513,936 1,506 735 1,126 3,367 517,303 Individuals' loans for household and other personal expenditures 98,044 394 163 $ 50 58 665 98,709 Lease financing receivables, net of unearned income 1,830 1,830 Other commercial loans 392,026 392,026 Loans $ 7,049,257 $ 11,976 $ 6,367 $ 50 $ 20,421 $ 38,814 $ 7,088,071 December 31, 2017 Current 30-59 Days 60-89 Days 90 Days or More Past Due Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,487,221 $ 2,967 $ 30 $ 3,275 $ 6,272 $ 1,493,493 Agriculture production financing and other loans to farmers 120,720 10 1,027 1,037 121,757 Real estate loans: Construction 610,896 1,193 $ 65 65 1,323 612,219 Commercial and farmland 2,542,048 6,923 166 603 12,951 20,643 2,562,691 Residential 948,947 4,010 308 56 9,444 13,818 962,765 Home equity 510,362 1,372 184 175 1,928 3,659 514,021 Individuals' loans for household and other personal expenditures 85,744 298 834 25 34 1,191 86,935 Lease financing receivables, net of unearned income 2,527 2,527 Other commercial loans 394,791 394,791 Loans $ 6,703,256 $ 16,773 $ 1,522 $ 924 $ 28,724 $ 47,943 $ 6,751,199 |
Schedules of troubled debt restructurings | The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the periods indicated: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Real estate loans: Residential $ 154 $ 140 4 $ 490 $ 487 11 Home equity 65 65 1 81 81 3 Individuals' loans for household and other personal expenditures 7 8 1 Total $ 219 $ 205 5 $ 578 $ 576 15 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Pre-Modification Post-Modification Number Pre-Modification Post-Modification Number Commercial and industrial loans $ 6 $ 6 1 $ 400 $ 176 2 Real estate loans: Commercial and farmland 357 492 6 Residential 120 122 1 570 520 8 Home equity 68 73 2 190 73 2 Total $ 194 $ 201 4 $ 1,517 $ 1,261 18 The following tables summarize the recorded investment of troubled debt restructures as of September 30, 2018 and 2017 , by modification type, that occurred during the periods indicated: Three Months Ended September 30, 2018 Term Rate Combination Total Real estate loans: Residential $ 47 $ 93 $ 140 Home equity 65 65 Total $ 112 $ 93 $ 205 Nine Months Ended September 30, 2018 Term Rate Combination Total Real estate loans: Residential $ 208 $ 239 $ 447 Home Equity $ 77 76 153 Individuals' loans for household and other personal expenditures 6 6 Total $ 77 $ 290 $ 239 $ 606 Three Months Ended September 30, 2017 Term Rate Combination Total Commercial and industrial loans $ 5 $ 5 Real estate loans: Residential $ 122 122 Home equity 73 73 Total $ 5 $ 195 $ 200 Nine Months Ended September 30, 2017 Term Rate Combination Total Commercial and industrial loans $ 5 $ 168 $ 173 Real estate loans: Commercial and farmland 41 $ 61 232 334 Residential 466 42 508 Home equity 73 73 Total $ 46 $ 600 $ 442 $ 1,088 |
Troubled debt restructurings that subsequently defaulted | A loan is considered in default if it is 30 or more days past due. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Number of Loans Recorded Balance Number of Loans Recorded Balance Real estate loans: Commercial and farmland 1 $ 262 1 $ 262 Residential 2 83 4 152 Individuals' loans for household and other personal expenditures 1 11 1 11 Total 4 $ 356 6 $ 425 |
Purchased Credit Impaired Loa_2
Purchased Credit Impaired Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of accretable yield, or income expected to be collected, and reclassifications from nonaccretable yield | The accretable yield, or income expected to be collected, and reclassifications from nonaccretable, are identified in the table below. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Beginning balance $ 2,423 $ 2,890 Additions Accretion (1,004 ) (2,441 ) Reclassification from nonaccretable 798 1,768 Disposals (16 ) (16 ) Ending balance $ 2,201 $ 2,201 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Beginning balance $ 2,607 $ 3,951 Additions 941 1,608 Accretion (686 ) (5,082 ) Reclassification from nonaccretable 449 3,501 Disposals (667 ) Ending balance $ 3,311 $ 3,311 |
Schedule of loans for which contractually required payments are uncertain | The following table presents loans acquired, as of the respective acquisition date, during the nine months ended September 30, 2017, for which it was probable that all contractually required payments would not be collected. There were no loans acquired during the nine months ended September 30, 2018. IAB Arlington Bank Contractually required payments receivable at acquisition date $ 14,131 $ 6,183 Nonaccretable difference 8,352 2,891 Expected cash flows at acquisition date 5,779 3,292 Accretable difference 941 667 Basis in loans at acquisition date $ 4,838 $ 2,625 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | 2017 Balance, January 1 $ 244,000 Goodwill acquired 201,824 Measurement period adjustment (469 ) Balance, December 31 $ 445,355 |
Other Intangibles (Tables)
Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of core deposit | The carrying basis and accumulated amortization of recognized core deposit intangibles and other intangibles are noted below. September 30, 2018 December 31, 2017 Gross carrying amount $ 85,869 $ 63,940 Core deposit intangibles acquired 18,164 Other intangibles acquired 3,765 Accumulated amortization (59,815 ) (54,721 ) Total other intangibles $ 26,054 $ 31,148 |
Schedule of estimated future amortization expense | Estimated future amortization expense is summarized as follows: Amortization Expense 2018 $ 1,625 2019 5,169 2020 3,632 2021 3,427 2022 3,325 After 2022 8,876 $ 26,054 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative financial instruments and their classification on Balance Sheet | The table below presents the fair value of the Corporation’s derivative financial instruments, as well as their classification on the Balance Sheet, as of September 30, 2018 , and December 31, 2017 . Asset Derivatives Liability Derivatives September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Balance Fair Balance Fair Balance Fair Balance Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ 548 Other Assets $ 18 Other Liabilities $ 387 Other Liabilities $ 1,383 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 13,763 Other Assets $ 7,305 Other Liabilities $ 13,763 Other Liabilities $ 7,305 |
Amount of gain (loss) recognized in other comprehensive income | The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Interest Rate Products $ 210 $ (10 ) $ 1,009 $ (380 ) |
Schedule of derivative instruments, gain (loss) in Income Statement | The amount of gain (loss) reclassified from other comprehensive income into income is included in the table below for the periods indicated. Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Three Months Ended Three Months Ended Interest rate contracts Interest Expense $ (93 ) $ (240 ) Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Nine Months Ended Nine Months Ended Interest rate contracts Interest Expense $ (368 ) $ (759 ) |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements of assets and liabilities recognized in Consolidated Condensed Balance Sheets measured at fair value | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at September 30, 2018 , and December 31, 2017 . Fair Value Measurements Using: September 30, 2018 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Government-sponsored agency securities $ 18,358 $ 18,358 State and municipal 600,168 596,888 $ 3,280 U.S. Government-sponsored mortgage-backed securities 530,605 530,601 4 Corporate obligations 31 31 Interest rate swap asset 13,763 13,763 Interest rate cap 548 548 Interest rate swap liability 14,150 14,150 Fair Value Measurements Using: December 31, 2017 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: State and municipal $ 526,693 $ 522,750 $ 3,943 U.S. Government-sponsored mortgage-backed securities 470,866 470,866 Corporate obligations 31 31 Equity securities 2,357 2,353 4 Interest rate swap asset 7,305 7,305 Interest rate cap 18 18 Interest rate swap liability 8,688 8,688 |
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in Consolidated Condensed Balance Sheets using significant unobservable Level 3 inputs | The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2018 and 2017 . Available for Sale Securities Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Balance at beginning of the period $ 3,970 $ 3,330 $ 3,978 $ 5,169 Included in other comprehensive income (35 ) (22 ) (59 ) 38 Principal payments (620 ) 679 (604 ) (1,220 ) Ending balance $ 3,315 $ 3,987 $ 3,315 $ 3,987 |
Description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in Consolidated Condensed Balance Sheets | Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for September 30, 2018 , and December 31, 2017 . Fair Value Measurements Using September 30, 2018 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 5,344 $ 5,344 Other real estate owned 937 937 Fair Value Measurements Using December 31, 2017 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 9,576 $ 9,576 Other real estate owned 859 859 |
Unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at September 30, 2018 and December 31, 2017 . September 30, 2018 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 3,280 Discounted cash flow Maturity/Call date 1 month to 20 yrs US Muni BQ curve A- to BBB- Discount rate 1% - 5% Corporate obligations and U.S. Government-sponsored mortgage backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Impaired loans (collateral dependent) $ 5,344 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (2%) Other real estate owned $ 937 Appraisals Discount to reflect current market conditions 0% - 24% (3%) December 31, 2017 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 3,943 Discounted cash flow Maturity/Call date 1 month to 20 yrs US Muni BQ curve A- to BBB- Discount rate .69% - 5% Corporate obligations and equity securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Impaired loans (collateral dependent) $ 9,576 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (1%) Other real estate owned $ 859 Appraisals Discount to reflect current market conditions 0% - 10% (2%) |
Estimated fair values of financial instruments | The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2018 , and December 31, 2017 . September 30, 2018 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 142,501 $ 142,501 Interest-bearing time deposits 66,763 66,763 Investment securities available for sale 1,149,162 $ 1,145,847 $ 3,315 Investment securities held to maturity 476,089 458,087 10,365 Loans held for sale 3,022 3,022 Loans 7,009,665 6,793,227 Federal Home Loan Bank stock 24,588 24,588 Interest rate swap and cap asset 14,311 14,311 Interest receivable 38,531 38,531 Liabilities: Deposits $ 7,633,152 $ 6,083,491 $ 1,522,591 Borrowings: Federal funds purchased 90,000 90,000 Securities sold under repurchase agreements 118,824 118,696 Federal Home Loan Bank advances 385,458 379,309 Subordinated debentures and term loans 138,408 124,806 Interest rate swap liability 14,150 14,150 Interest payable 5,920 5,920 December 31, 2017 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 154,905 $ 154,905 Interest-bearing time deposits 35,027 35,027 Investment securities available for sale 999,947 $ 995,969 $ 3,978 Investment securities held to maturity 560,655 556,305 11,903 Loans held for sale 7,216 7,216 Loans 6,676,167 6,534,877 Federal Home Loan Bank stock 23,825 23,825 Interest rate swap and cap asset 7,323 7,323 Interest receivable 37,130 37,130 Liabilities: Deposits $ 7,172,530 $ 5,741,019 $ 1,406,526 Borrowings: Federal funds purchased 144,038 144,038 Securities sold under repurchase agreements 136,623 136,562 Federal Home Loan Bank advances 414,377 361,085 Subordinated debentures and term loans 139,349 120,085 Interest rate swap liability 8,688 8,688 Interest payable 4,390 4,390 |
Transfers Accounted for as Se_2
Transfers Accounted for as Secured Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of collateral pledged for all repurchase agreements accounted for as secured borrowings | The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of September 30, 2018 and December 31, 2017 were: September 30, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 109,695 $ 1,514 $ 7,615 $ 118,824 December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 126,187 $ 1,340 $ 1,500 $ 7,596 $ 136,623 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of September 30, 2018 and 2017 : Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2017 $ 8,970 $ (1,125 ) $ (10,753 ) $ (2,908 ) Other comprehensive income before reclassifications (30,032 ) 1,039 (28,993 ) Amounts reclassified from accumulated other comprehensive income (3,173 ) 291 (2,882 ) Period change (33,205 ) 1,330 — (31,875 ) Reclassification adjustment under ASU 2018-02 1,932 (242 ) (2,316 ) (626 ) Balance at September 30, 2018 $ (22,303 ) $ (37 ) $ (13,069 ) $ (35,409 ) Balance at December 31, 2016 $ 1,035 $ (1,774 ) $ (12,842 ) $ (13,581 ) Other comprehensive income before reclassifications 8,124 (246 ) 7,878 Amounts reclassified from accumulated other comprehensive income (973 ) 493 (175 ) (655 ) Period change 7,151 247 (175 ) 7,223 Balance at September 30, 2017 $ 8,186 $ (1,527 ) $ (13,017 ) $ (6,358 ) |
Reclassification out of accumulated other comprehensive income (loss) | The following tables present the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2018 and 2017 . Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended September 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2018 2017 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 1,285 $ 332 Other income - net realized gains on sales of available for sale securities Related income tax expense (270 ) (116 ) Income tax expense $ 1,015 $ 216 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (93 ) $ (240 ) Interest expense - subordinated debentures and term loans Related income tax benefit 20 84 Income tax expense $ (73 ) $ (156 ) Unrealized gains (losses) on defined benefit plans Amortization of prior service costs $ 89 Other expenses - salaries and employee benefits Related income tax expense (31 ) Income tax expense $ — $ 58 Total reclassifications for the period, net of tax $ 942 $ 118 Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2018 2017 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 4,016 $ 1,497 Other income - net realized gains on sales of available for sale securities Related income tax expense (843 ) (524 ) Income tax expense $ 3,173 $ 973 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (368 ) $ (759 ) Interest expense - subordinated debentures and term loans Related income tax benefit 77 266 Income tax expense $ (291 ) $ (493 ) Unrealized gains (losses) on defined benefit plans Amortization of net loss and prior service costs $ 269 Other expenses - salaries and employee benefits Related income tax expense (94 ) Income tax expense $ — $ 175 Total reclassifications for the period, net of tax $ 2,882 $ 655 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES of these Notes to Consolidated Condensed Financial Statements. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of share-based compensation awards | The following table summarizes the components of the Corporation's share-based compensation awards recorded as expense and the income tax benefit of such awards. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Stock and ESPP Options Pre-tax compensation expense $ 39 $ 23 $ 88 $ 93 Income tax benefit (15 ) (9 ) (153 ) (313 ) Stock and ESPP option expense, net of income taxes $ 24 $ 14 $ (65 ) $ (220 ) Restricted Stock Awards Pre-tax compensation expense $ 855 $ 800 $ 2,458 $ 1,791 Income tax benefit (205 ) (280 ) (952 ) (1,160 ) Restricted stock awards expense, net of income taxes $ 650 $ 520 $ 1,506 $ 631 Total Share-Based Compensation Pre-tax compensation expense $ 894 $ 823 $ 2,546 $ 1,884 Income tax benefit (220 ) (289 ) (1,105 ) (1,473 ) Total share-based compensation expense, net of income taxes $ 674 $ 534 $ 1,441 $ 411 |
Stock option activity under stock option plans | Stock option activity under the Corporation's stock option plans as of September 30, 2018 and changes during the nine months ended September 30, 2018 , were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2018 152,652 $ 16.71 Exercised (51,243 ) $ 21.33 Cancelled (200 ) $ 28.25 Outstanding September 30, 2018 101,209 $ 14.34 2.41 $ 3,101,835 Vested and Expected to Vest at September 30, 2018 101,209 $ 14.34 2.41 $ 3,101,835 Exercisable at September 30, 2018 101,209 $ 14.34 2.41 $ 3,101,835 |
Unvested RSAs outstanding | The following table summarizes information on unvested RSAs outstanding as of September 30, 2018 : Number of Shares Weighted-Average Unvested RSAs at January 1, 2018 366,993 $ 29.79 Granted 105,100 $ 48.11 Vested (106,797 ) $ 23.74 Forfeited (5,560 ) $ 38.31 Unvested RSAs at September 30, 2018 359,736 $ 36.82 |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of differences between income taxes at federal statutory tax rate and effective tax rate | The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated statements of income for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended 2018 2017 2018 2017 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 21% for 2018 and 35% for 2017 $ 10,414 $ 11,304 $ 29,500 $ 32,900 Tax-exempt interest income (2,118 ) (2,881 ) (6,178 ) (8,062 ) Share-based compensation (38 ) (78 ) (570 ) (862 ) Tax-exempt earnings and gains on life insurance (197 ) (551 ) (655 ) (1,905 ) Tax credits (42 ) (61 ) (65 ) (249 ) Other 459 206 1,018 492 Actual Tax Expense $ 8,478 $ 7,939 $ 23,050 $ 22,314 Effective Tax Rate 17.1 % 24.6 % 16.4 % 23.7 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and diluted net income per share | The following table reconciles basic and diluted net income per share for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, 2018 2017 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 41,113 49,286,945 $ 0.83 $ 24,358 48,431,880 $ 0.50 Effect of potentially dilutive stock options and restricted stock awards 205,074 211,894 Diluted net income per share $ 41,113 49,492,019 $ 0.83 $ 24,358 48,643,774 $ 0.50 Nine Months Ended September 30, 2018 2017 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 117,426 49,244,403 $ 2.38 $ 71,687 43,845,675 $ 1.64 Effect of potentially dilutive stock options and restricted stock awards 213,782 217,544 Diluted net income per share $ 117,426 49,458,185 $ 2.37 $ 71,687 44,063,219 $ 1.63 |
General (Details)
General (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassificaton of investment securities held to maturity | $ 30,794,000 |
State and municipal securities | ASU 2017-12 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassificaton of investment securities held to maturity | (30,800,000) |
Reclassification of held to maturity, gross unrealized gains | $ (450,000) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands | Jul. 14, 2017USD ($)bank_branchshares | May 19, 2017USD ($)bank_branchshares | Nov. 21, 2016USD ($)$ / sharesshares | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Less: Common stock issued | $ 321,431 | ||||||
IAB | |||||||
Business Acquisition [Line Items] | |||||||
Shares purchased (in shares) | shares | 495,112 | ||||||
Percentage of interest acquired | 12.10% | 12.10% | 12.10% | ||||
Value of acquired shares | $ 19,800 | ||||||
Purchase price per share (usd per share) | $ / shares | $ 40 | ||||||
Number of banking centers acquired | bank_branch | 16 | ||||||
Stock issued as a part of acquisition (in shares) | shares | 6,000,000 | ||||||
Less: Common stock issued | $ 238,800 | ||||||
Total purchase price | 258,600 | ||||||
Fair value of equity interest after adjustment | $ 19,800 | ||||||
Remeasurement loss | $ 50 | ||||||
Other intangible assets | 17,403 | ||||||
Operating revenue | $ 21,400 | ||||||
IAB | Core deposit intangibles acquired | |||||||
Business Acquisition [Line Items] | |||||||
Other intangible assets | $ 13,638 | ||||||
Acquired intangible asset, expected useful life | 10 years | ||||||
IAB | Other intangibles acquired | |||||||
Business Acquisition [Line Items] | |||||||
Other intangible assets | $ 3,765 | ||||||
Acquired intangible asset, expected useful life | 2 years | ||||||
IAB | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Number of shares of common stock | 1.653 | ||||||
Arlington Bank | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of interest acquired | 100.00% | ||||||
Number of banking centers acquired | bank_branch | 3 | ||||||
Stock issued as a part of acquisition (in shares) | shares | 2,100,000 | ||||||
Less: Common stock issued | $ 82,600 | ||||||
Other intangible assets | 4,526 | ||||||
Operating revenue | 9,000 | ||||||
Arlington Bank | Core deposit intangibles acquired | |||||||
Business Acquisition [Line Items] | |||||||
Other intangible assets | $ 4,526 | ||||||
Acquired intangible asset, expected useful life | 10 years | ||||||
Arlington Bank | Common Stock | |||||||
Business Acquisition [Line Items] | |||||||
Number of shares of common stock | 2.7245 | ||||||
Arlington Bank and IAB | Expenses directly attributable to acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Non-recurring expenses | $ 15,400 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Jul. 14, 2017 | May 19, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 445,355 | $ 445,355 | $ 244,000 | ||
IAB | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 6,016 | ||||
Interest-bearing time deposits | 248,212 | ||||
Investment securities | 4,078 | ||||
Loans held for sale | 594 | ||||
Loans | 725,382 | ||||
Premises and equipment | 10,107 | ||||
Federal Home Loan Bank stock | 4,810 | ||||
Interest receivable | 3,445 | ||||
Cash surrender value of life insurance | 26,964 | ||||
Other assets | 11,780 | ||||
Deposits | (862,271) | ||||
Securities sold under repurchase agreements | (17,915) | ||||
Federal Home Loan Bank Advances | (47,575) | ||||
Subordinated debentures | (10,583) | ||||
Interest payable | (1,005) | ||||
Other liabilities | (14,472) | ||||
Net tangible assets acquired | 87,567 | ||||
Core deposit intangible | 17,403 | ||||
Goodwill | 153,636 | ||||
Purchase price | $ 258,606 | ||||
Arlington Bank | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 48,532 | ||||
Interest-bearing time deposits | 292 | ||||
Loans held for sale | 7,626 | ||||
Loans | 224,680 | ||||
Premises and equipment | 1,986 | ||||
Federal Home Loan Bank stock | 1,091 | ||||
Interest receivable | 653 | ||||
Other assets | 1,620 | ||||
Deposits | (252,783) | ||||
Interest payable | (244) | ||||
Other liabilities | (3,106) | ||||
Net tangible assets acquired | 30,347 | ||||
Core deposit intangible | 4,526 | ||||
Goodwill | 47,719 | ||||
Purchase price | $ 82,592 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquired Loan Data (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 14, 2017 | May 19, 2017 |
IAB | |||
Business Acquisition [Line Items] | |||
Fair Value of Acquired Loans at Acquisition Date, Acquired receivables subject to ASC 310-30 | $ 4,838 | $ 4,838 | |
Gross Contractual Amounts Receivable at Acquisition Date, Acquired receivables subject to ASC 310-30 | 14,131 | 14,131 | |
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected, Acquired receivables subject to ASC 310-30 | 8,352 | ||
Fair Value of Acquired Loans at Acquisition Date, Acquired receivables not subject to ASC 310-30 | 720,544 | ||
Gross Contractual Amounts Receivable at Acquisition Date, Acquired receivables not subject to ASC 310-30 | 864,613 | ||
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected, Acquired receivables not subject to ASC 310-30 | $ 9,786 | ||
Arlington Bank | |||
Business Acquisition [Line Items] | |||
Fair Value of Acquired Loans at Acquisition Date, Acquired receivables subject to ASC 310-30 | 2,625 | $ 2,625 | |
Gross Contractual Amounts Receivable at Acquisition Date, Acquired receivables subject to ASC 310-30 | $ 6,183 | 6,183 | |
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected, Acquired receivables subject to ASC 310-30 | 2,891 | ||
Fair Value of Acquired Loans at Acquisition Date, Acquired receivables not subject to ASC 310-30 | 222,055 | ||
Gross Contractual Amounts Receivable at Acquisition Date, Acquired receivables not subject to ASC 310-30 | 308,857 | ||
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected, Acquired receivables not subject to ASC 310-30 | $ 2,741 |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Details) - Arlington Bank and IAB $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Total revenue (net interest income plus other income) | $ | $ 380,324 |
Net income | $ | $ 95,009 |
Basic (in dollars per share) | $ / shares | $ 1.94 |
Diluted (in dollars per share) | $ / shares | $ 1.93 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Approximate Fair Value of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available for sale securities | ||
Total Investment Securities | $ 1,177,274 | $ 986,565 |
Gross Unrealized Gains | 2,991 | 17,896 |
Gross Unrealized Losses | 31,103 | 4,514 |
Investment securities available for sale | 1,149,162 | 999,947 |
Held to maturity securities | ||
Total Investment Securities | 476,089 | 560,655 |
Gross Unrealized Gains | 1,461 | 9,636 |
Gross Unrealized Losses | 9,098 | 2,083 |
Fair Value | 468,452 | 568,208 |
Amortized Cost | 1,653,363 | 1,547,220 |
Gross Unrealized Gains | 4,452 | 27,532 |
Gross Unrealized Losses | 40,201 | 6,597 |
Fair Value | 1,617,614 | 1,568,155 |
U.S. Government-sponsored agency securities | ||
Available for sale securities | ||
Total Investment Securities | 18,492 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 134 | |
Investment securities available for sale | 18,358 | |
Held to maturity securities | ||
Total Investment Securities | 22,618 | 22,618 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 833 | 435 |
Fair Value | 21,785 | 22,183 |
State and municipal | ||
Available for sale securities | ||
Total Investment Securities | 611,528 | 510,852 |
Gross Unrealized Gains | 2,920 | 16,932 |
Gross Unrealized Losses | 14,280 | 1,091 |
Investment securities available for sale | 600,168 | 526,693 |
Held to maturity securities | ||
Total Investment Securities | 192,124 | 235,594 |
Gross Unrealized Gains | 1,161 | 6,295 |
Gross Unrealized Losses | 1,748 | 244 |
Fair Value | 191,537 | 241,645 |
U.S. Government-sponsored mortgage-backed securities | ||
Available for sale securities | ||
Total Investment Securities | 547,223 | 473,325 |
Gross Unrealized Gains | 71 | 964 |
Gross Unrealized Losses | 16,689 | 3,423 |
Investment securities available for sale | 530,605 | 470,866 |
Held to maturity securities | ||
Total Investment Securities | 260,347 | 301,443 |
Gross Unrealized Gains | 300 | 3,341 |
Gross Unrealized Losses | 6,514 | 1,404 |
Fair Value | 254,133 | 303,380 |
Corporate obligations | ||
Available for sale securities | ||
Total Investment Securities | 31 | 31 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Investment securities available for sale | 31 | 31 |
Equity securities | ||
Available for sale securities | ||
Total Investment Securities | 2,357 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Investment securities available for sale | 2,357 | |
Foreign Investments | ||
Held to maturity securities | ||
Total Investment Securities | 1,000 | 1,000 |
Gross Unrealized Losses | 3 | |
Fair Value | $ 997 | $ 1,000 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 24,098 | $ 425 |
Due after one through five years | 17,294 | 5,040 |
Due after five through ten years | 75,416 | 74,921 |
Due after ten years | 513,243 | 430,497 |
Total debt securities with a single maturity date | 630,051 | 510,883 |
Total Investment Securities | 1,177,274 | 986,565 |
Fair Value | ||
Due in one year or less | 24,360 | 425 |
Due after one through five years | 17,511 | 5,204 |
Due after five through ten years | 75,498 | 78,806 |
Due after ten years | 501,188 | 442,289 |
Total debt securities with a single maturity date | 618,557 | 526,724 |
Total Investment Securities | 1,149,162 | 999,947 |
Amortized Cost | ||
Due in one year or less | 5,161 | 12,015 |
Due after one through five years | 48,155 | 76,146 |
Due after five through ten years | 57,950 | 54,441 |
Due after ten years | 104,476 | 116,610 |
Total debt securities with a single maturity date | 215,742 | 259,212 |
Total Investment Securities | 476,089 | 560,655 |
Fair Value | ||
Due in one year or less | 5,178 | 12,158 |
Due after one through five years | 47,042 | 76,334 |
Due after five through ten years | 58,212 | 55,679 |
Due after ten years | 103,887 | 120,657 |
Total debt securities with a single maturity date | 214,319 | 264,828 |
Investment securities held to maturity | 468,452 | 568,208 |
U.S. Government-sponsored mortgage-backed securities | ||
Amortized Cost | ||
U.S. Government-sponsored mortgage-backed securities | 547,223 | 473,325 |
Fair Value | ||
Without single maturity date | 530,605 | 470,866 |
Amortized Cost | ||
Without single maturity date | 260,347 | 301,443 |
Fair Value | ||
Without single maturity date | $ 254,133 | 303,380 |
Equity securities | ||
Amortized Cost | ||
U.S. Government-sponsored mortgage-backed securities | 2,357 | |
Fair Value | ||
Without single maturity date | 2,357 | |
Amortized Cost | ||
Without single maturity date | ||
Fair Value | ||
Without single maturity date |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | Sep. 30, 2018USD ($)security | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Carrying value of securities pledged as collateral | $ 426,200 | $ 475,999 |
Book value of securities sold under agreements to repurchase | 122,789 | 136,639 |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Gross Unrealized Losses | 31,103 | 4,514 |
Held-to-maturity unrealized losses | 9,098 | $ 2,083 |
State and municipal | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Gross Unrealized Losses | $ 14,280 | |
Number of securities in unrealized loss positions | security | 336 | |
Held-to-maturity unrealized losses | $ 1,748 | |
Held-to-maturity, number of securities in unrealized loss positions | security | 68 | |
U.S. Government-sponsored agency securities | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Gross Unrealized Losses | $ 134 | |
Number of securities in unrealized loss positions | security | 7 | |
Held-to-maturity unrealized losses | $ 833 | |
Held-to-maturity, number of securities in unrealized loss positions | security | 5 | |
U.S. Government-sponsored mortgage-backed securities | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Gross Unrealized Losses | $ 16,689 | |
Number of securities in unrealized loss positions | security | 125 | |
Held-to-maturity unrealized losses | $ 6,514 | |
Held-to-maturity, number of securities in unrealized loss positions | security | 100 |
Investment Securities - Gross G
Investment Securities - Gross Gains on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Sales and Redemptions of Available for Sale Securities: | ||||
Gross gains | $ 1,285 | $ 382 | $ 4,016 | $ 1,547 |
Gross losses | $ 50 | $ 50 |
Investment Securities - Investm
Investment Securities - Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less than 12 Months | $ 802,842 | $ 196,051 |
12 Months or Longer | 165,422 | 103,991 |
Total | 968,264 | 300,042 |
Gross Unrealized Losses | ||
Less than 12 Months | 21,517 | 1,718 |
12 Months or Longer | 9,586 | 2,796 |
Total | 31,103 | 4,514 |
Fair Value | ||
Less than 12 Months | 214,439 | 74,926 |
12 Months or Longer | 99,153 | 71,079 |
Total | 313,592 | 146,005 |
Gross Unrealized Losses | ||
Less than 12 Months | 4,336 | 652 |
12 Months or Longer | 4,762 | 1,431 |
Total | 9,098 | 2,083 |
Less than 12 Months, Fair Value | 1,017,281 | 270,977 |
12 Months or Longer, Fair Value | 264,575 | 175,070 |
Total, Fair Value | 1,281,856 | 446,047 |
Less than 12 Months, Gross Unrealized Losses | 25,853 | 2,370 |
12 Months or Longer, Gross Unrealized Losses | 14,348 | 4,227 |
Total, Gross Unrealized Losses | 40,201 | 6,597 |
U.S. Government-sponsored agency securities | ||
Fair Value | ||
Less than 12 Months | 18,358 | |
Total | 18,358 | |
Gross Unrealized Losses | ||
Less than 12 Months | 134 | |
Total | 134 | |
Fair Value | ||
Less than 12 Months | 97 | 9,988 |
12 Months or Longer | 21,688 | 12,196 |
Total | 21,785 | 22,184 |
Gross Unrealized Losses | ||
Less than 12 Months | 3 | 131 |
12 Months or Longer | 830 | 304 |
Total | 833 | 435 |
State and municipal | ||
Fair Value | ||
Less than 12 Months | 397,852 | 13,296 |
12 Months or Longer | 30,820 | 35,324 |
Total | 428,672 | 48,620 |
Gross Unrealized Losses | ||
Less than 12 Months | 11,780 | 198 |
12 Months or Longer | 2,500 | 893 |
Total | 14,280 | 1,091 |
Fair Value | ||
Less than 12 Months | 44,857 | 2,430 |
12 Months or Longer | 16,326 | 15,805 |
Total | 61,183 | 18,235 |
Gross Unrealized Losses | ||
Less than 12 Months | 857 | 36 |
12 Months or Longer | 891 | 208 |
Total | 1,748 | 244 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 386,632 | 182,755 |
12 Months or Longer | 134,602 | 68,667 |
Total | 521,234 | 251,422 |
Gross Unrealized Losses | ||
Less than 12 Months | 9,603 | 1,520 |
12 Months or Longer | 7,086 | 1,903 |
Total | 16,689 | 3,423 |
Fair Value | ||
Less than 12 Months | 168,488 | 62,508 |
12 Months or Longer | 61,139 | 43,078 |
Total | 229,627 | 105,586 |
Gross Unrealized Losses | ||
Less than 12 Months | 3,473 | 485 |
12 Months or Longer | 3,041 | 919 |
Total | 6,514 | $ 1,404 |
Corporate obligations | ||
Fair Value | ||
Less than 12 Months | 997 | |
Total | 997 | |
Gross Unrealized Losses | ||
Less than 12 Months | 3 | |
Total | $ 3 |
Investment Securities - Inves_2
Investment Securities - Investments in Debt and Equity Securities Reported Less than Historical Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Fair value | $ 1,281,856 | $ 446,047 |
Investments reported at less than historical cost | ||
Schedule of Investments [Line Items] | ||
Historical cost | 1,322,058 | 452,644 |
Fair value | $ 1,281,856 | $ 446,047 |
Percent of the Corporation's investment portfolio | 78.90% | 28.60% |
Loans and Allowance - Narrative
Loans and Allowance - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Loans held for sale | $ 3,022 | $ 7,216 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 7,088,071 | 6,751,199 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of troubled debt restructured loans | 100.00% | |
Mortgage loans with formal foreclosure proceedings | $ 1,045 | 2,302 |
Loans | 1,483,196 | 1,476,786 |
Loans acquired with deteriorated credit quality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 19,079 | 24,954 |
Loans acquired with deteriorated credit quality | Commercial and consumer loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,568 | 315 |
Loans acquired with deteriorated credit quality | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,606 | $ 1,536 |
Loans and Allowance - Compositi
Loans and Allowance - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 7,088,071 | $ 6,751,199 | ||||
Allowance for loan losses | (78,406) | $ (77,543) | (75,032) | $ (73,354) | $ (70,471) | $ (66,037) |
Net Loans | 7,009,665 | 6,676,167 | ||||
Commercial and industrial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 1,655,569 | 1,493,493 | ||||
Agricultural production financing and other loans to farmers | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 88,504 | 121,757 | ||||
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 668,608 | 612,219 | ||||
Commercial and farmland | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 2,699,629 | 2,562,691 | ||||
Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 965,893 | 962,765 | ||||
Allowance for loan losses | (14,460) | (14,424) | (13,537) | (13,331) | (12,955) | (11,755) |
Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 517,303 | 514,021 | ||||
Individuals' loans for household and other personal expenditures | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 98,709 | 86,935 | ||||
Allowance for loan losses | (3,932) | (3,921) | (3,732) | (3,591) | (3,372) | (2,923) |
Lease financing receivables, net of unearned income | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 1,830 | 2,527 | ||||
Allowance for loan losses | (2) | $ (2) | (2) | $ (2) | $ (2) | $ (2) |
Other commercial loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 392,026 | $ 394,791 |
Loans and Allowance - Changes i
Loans and Allowance - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for loan losses: | ||||
Beginning balance | $ 77,543 | $ 70,471 | $ 75,032 | $ 66,037 |
Provision for losses | 1,400 | 2,083 | 5,563 | 7,343 |
Recoveries on loans | 1,175 | 1,859 | 5,066 | 3,853 |
Loans charged off | (1,712) | (1,059) | (7,255) | (3,879) |
Ending balance | 78,406 | 73,354 | 78,406 | 73,354 |
Commercial | ||||
Allowance for loan losses: | ||||
Beginning balance | 31,465 | 28,906 | 30,418 | 27,696 |
Provision for losses | 256 | 921 | 1,567 | 2,279 |
Recoveries on loans | 658 | 324 | 2,060 | 987 |
Loans charged off | (313) | (468) | (1,979) | (1,279) |
Ending balance | 32,066 | 29,683 | 32,066 | 29,683 |
Commercial Real Estate | ||||
Allowance for loan losses: | ||||
Beginning balance | 27,731 | 25,236 | 27,343 | 23,661 |
Provision for losses | 410 | 374 | 1,448 | 2,023 |
Recoveries on loans | 306 | 1,327 | 1,858 | 2,066 |
Loans charged off | (501) | (190) | (2,703) | (1,003) |
Ending balance | 27,946 | 26,747 | 27,946 | 26,747 |
Consumer | ||||
Allowance for loan losses: | ||||
Beginning balance | 3,921 | 3,372 | 3,732 | 2,923 |
Provision for losses | 159 | 342 | 493 | 877 |
Recoveries on loans | 46 | 51 | 233 | 253 |
Loans charged off | (194) | (174) | (526) | (462) |
Ending balance | 3,932 | 3,591 | 3,932 | 3,591 |
Residential | ||||
Allowance for loan losses: | ||||
Beginning balance | 14,424 | 12,955 | 13,537 | 11,755 |
Provision for losses | 575 | 446 | 2,055 | 2,164 |
Recoveries on loans | 165 | 157 | 915 | 547 |
Loans charged off | (704) | (227) | (2,047) | (1,135) |
Ending balance | 14,460 | 13,331 | 14,460 | 13,331 |
Finance Leases | ||||
Allowance for loan losses: | ||||
Beginning balance | 2 | 2 | 2 | 2 |
Provision for losses | ||||
Recoveries on loans | ||||
Loans charged off | ||||
Ending balance | $ 2 | $ 2 | $ 2 | $ 2 |
Loans and Allowance - Allowance
Loans and Allowance - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance Balances: | ||||||
Individually evaluated for impairment | $ 433 | $ 1,637 | ||||
Collectively evaluated for impairment | 77,973 | 73,395 | ||||
Total Allowance for Loan Losses | 78,406 | $ 77,543 | 75,032 | $ 73,354 | $ 70,471 | $ 66,037 |
Loan Balance [Abstract] | ||||||
Individually evaluated for impairment | 15,999 | 23,211 | ||||
Collectively evaluated for impairment | 7,052,993 | 6,703,034 | ||||
Loans | 7,088,071 | 6,751,199 | ||||
Loans acquired with deteriorated credit quality | ||||||
Loan Balance [Abstract] | ||||||
Loans | 19,079 | 24,954 | ||||
Commercial | ||||||
Allowance Balances: | ||||||
Individually evaluated for impairment | 666 | |||||
Collectively evaluated for impairment | 32,066 | 29,752 | ||||
Total Allowance for Loan Losses | 32,066 | 31,465 | 30,418 | 29,683 | 28,906 | 27,696 |
Loan Balance [Abstract] | ||||||
Individually evaluated for impairment | 1,614 | 3,345 | ||||
Collectively evaluated for impairment | 2,132,193 | 2,005,275 | ||||
Loans | 2,136,099 | 2,010,041 | ||||
Commercial | Loans acquired with deteriorated credit quality | ||||||
Loan Balance [Abstract] | ||||||
Loans | 2,292 | 1,421 | ||||
Commercial Real Estate | ||||||
Allowance Balances: | ||||||
Individually evaluated for impairment | 567 | |||||
Collectively evaluated for impairment | 27,946 | 26,776 | ||||
Total Allowance for Loan Losses | 27,946 | 27,731 | 27,343 | 26,747 | 25,236 | 23,661 |
Loan Balance [Abstract] | ||||||
Individually evaluated for impairment | 12,158 | 17,432 | ||||
Collectively evaluated for impairment | 3,340,898 | 3,135,481 | ||||
Loans | 3,368,237 | 3,174,910 | ||||
Commercial Real Estate | Loans acquired with deteriorated credit quality | ||||||
Loan Balance [Abstract] | ||||||
Loans | 15,181 | 21,997 | ||||
Consumer | ||||||
Allowance Balances: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 3,932 | 3,732 | ||||
Total Allowance for Loan Losses | 3,932 | 3,921 | 3,732 | 3,591 | 3,372 | 2,923 |
Loan Balance [Abstract] | ||||||
Individually evaluated for impairment | 8 | 5 | ||||
Collectively evaluated for impairment | 98,701 | 86,930 | ||||
Loans | 98,709 | 86,935 | ||||
Consumer | Loans acquired with deteriorated credit quality | ||||||
Loan Balance [Abstract] | ||||||
Loans | ||||||
Residential | ||||||
Allowance Balances: | ||||||
Individually evaluated for impairment | 433 | 404 | ||||
Collectively evaluated for impairment | 14,027 | 13,133 | ||||
Total Allowance for Loan Losses | 14,460 | 14,424 | 13,537 | 13,331 | 12,955 | 11,755 |
Loan Balance [Abstract] | ||||||
Individually evaluated for impairment | 2,219 | 2,429 | ||||
Collectively evaluated for impairment | 1,479,371 | 1,472,821 | ||||
Loans | 1,483,196 | 1,476,786 | ||||
Residential | Loans acquired with deteriorated credit quality | ||||||
Loan Balance [Abstract] | ||||||
Loans | 1,606 | 1,536 | ||||
Lease financing receivables, net of unearned income | ||||||
Allowance Balances: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 2 | 2 | ||||
Total Allowance for Loan Losses | 2 | $ 2 | 2 | $ 2 | $ 2 | $ 2 |
Loan Balance [Abstract] | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 1,830 | 2,527 | ||||
Loans | 1,830 | 2,527 | ||||
Lease financing receivables, net of unearned income | Loans acquired with deteriorated credit quality | ||||||
Loan Balance [Abstract] | ||||||
Loans |
Loans and Allowance - Summary o
Loans and Allowance - Summary of Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 20,421 | $ 28,724 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 2,287 | 3,275 |
Agricultural production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 640 | 1,027 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 764 | 65 |
Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 10,406 | 12,951 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 5,140 | 9,444 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 1,126 | 1,928 |
Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 58 | $ 34 |
Loans and Allowance - Composi_2
Loans and Allowance - Composition of Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Unpaid Principal Balance | |||||
Impaired loans with no related allowance | $ 21,951 | $ 21,951 | $ 25,979 | ||
Impaired loans with related allowance | 2,231 | 2,231 | 6,123 | ||
Total Impaired Loans | 24,182 | 24,182 | 32,102 | ||
Recorded Investment | |||||
Impaired loans with no related allowance | 13,842 | 13,842 | 17,930 | ||
Impaired loans with related allowance | 2,157 | 2,157 | 5,281 | ||
Total Impaired Loans | 15,999 | 15,999 | 23,211 | ||
Related Allowance | 433 | 433 | 1,637 | ||
Average Recorded Investment | |||||
Impaired loans with no related allowance | 14,402 | $ 17,782 | 15,370 | $ 21,691 | |
Impaired loans with related allowance | 2,161 | 7,226 | 2,179 | 7,236 | |
Total Impaired Loans | 16,563 | 25,008 | 17,549 | 28,927 | |
Interest Income Recognized | |||||
Impaired loans with no related allowance | 41 | 89 | 130 | 269 | |
Impaired loans with related allowance | 16 | 10 | 45 | 31 | |
Total Impaired Loans | 57 | 99 | 175 | 300 | |
Commercial and industrial loans | |||||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance | 6,133 | 6,133 | 7,611 | ||
Impaired loans with related allowance | 812 | ||||
Recorded Investment | |||||
Impaired loans with no related allowance | 974 | 974 | 1,536 | ||
Impaired loans with related allowance | 782 | ||||
Related Allowance | 552 | ||||
Average Recorded Investment | |||||
Impaired loans with no related allowance | 979 | 2,103 | 994 | 4,567 | |
Impaired loans with related allowance | 1,796 | 1,796 | |||
Interest Income Recognized | |||||
Impaired loans with no related allowance | |||||
Impaired loans with related allowance | |||||
Agricultural production financing and other loans to farmers | |||||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance | 660 | 660 | 732 | ||
Impaired loans with related allowance | 357 | ||||
Recorded Investment | |||||
Impaired loans with no related allowance | 640 | 640 | 700 | ||
Impaired loans with related allowance | 327 | ||||
Related Allowance | 114 | ||||
Average Recorded Investment | |||||
Impaired loans with no related allowance | 640 | 945 | 640 | 945 | |
Impaired loans with related allowance | 337 | 337 | |||
Interest Income Recognized | |||||
Impaired loans with no related allowance | |||||
Impaired loans with related allowance | |||||
Construction | |||||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance | 1,352 | 1,352 | |||
Recorded Investment | |||||
Impaired loans with no related allowance | 614 | 614 | |||
Average Recorded Investment | |||||
Impaired loans with no related allowance | 614 | 930 | |||
Interest Income Recognized | |||||
Impaired loans with no related allowance | |||||
Commercial and farmland | |||||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance | 13,717 | 13,717 | 16,758 | ||
Impaired loans with related allowance | 2,989 | ||||
Recorded Investment | |||||
Impaired loans with no related allowance | 11,544 | 11,544 | 15,162 | ||
Impaired loans with related allowance | 2,270 | ||||
Related Allowance | 567 | ||||
Average Recorded Investment | |||||
Impaired loans with no related allowance | 12,098 | 14,129 | 12,733 | 15,483 | |
Impaired loans with related allowance | 3,359 | 3,374 | |||
Interest Income Recognized | |||||
Impaired loans with no related allowance | 40 | 89 | 128 | 267 | |
Impaired loans with related allowance | |||||
Residential | |||||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance | 81 | 81 | 833 | ||
Impaired loans with related allowance | 1,849 | 1,849 | 1,616 | ||
Recorded Investment | |||||
Impaired loans with no related allowance | 62 | 62 | 519 | ||
Impaired loans with related allowance | 1,794 | 1,794 | 1,572 | ||
Related Allowance | 357 | 357 | 327 | ||
Average Recorded Investment | |||||
Impaired loans with no related allowance | 62 | 588 | 63 | 673 | |
Impaired loans with related allowance | 1,797 | 1,403 | 1,812 | 1,395 | |
Interest Income Recognized | |||||
Impaired loans with no related allowance | 1 | 2 | 2 | ||
Impaired loans with related allowance | 13 | 8 | 37 | 25 | |
Home equity | |||||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance | 40 | ||||
Recorded Investment | |||||
Impaired loans with no related allowance | 8 | ||||
Average Recorded Investment | |||||
Impaired loans with no related allowance | 11 | 16 | |||
Impaired loans with related allowance | 364 | 331 | 367 | 334 | |
Interest Income Recognized | |||||
Impaired loans with no related allowance | |||||
Impaired loans with related allowance | 3 | 2 | 8 | 6 | |
Individuals' loans for household and other personal expenditures | |||||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance | 8 | 8 | 5 | ||
Recorded Investment | |||||
Impaired loans with no related allowance | 8 | 8 | 5 | ||
Average Recorded Investment | |||||
Impaired loans with no related allowance | 9 | 6 | 10 | $ 7 | |
Interest Income Recognized | |||||
Impaired loans with no related allowance | |||||
Home equity | |||||
Unpaid Principal Balance | |||||
Impaired loans with related allowance | 382 | 382 | 349 | ||
Recorded Investment | |||||
Impaired loans with related allowance | 363 | 363 | 330 | ||
Related Allowance | $ 76 | $ 76 | $ 77 |
Loans and Allowance - Credit Qu
Loans and Allowance - Credit Quality of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 7,088,071 | $ 6,751,199 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,655,569 | 1,493,493 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 88,504 | 121,757 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 668,608 | 612,219 |
Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,699,629 | 2,562,691 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 965,893 | 962,765 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 517,303 | 514,021 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 98,709 | 86,935 |
Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,830 | 2,527 |
Other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 392,026 | 394,791 |
Commercial Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,431,154 | 5,099,464 |
Commercial Pass | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,587,560 | 1,418,401 |
Commercial Pass | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 68,556 | 73,800 |
Commercial Pass | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 629,244 | 587,906 |
Commercial Pass | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,551,541 | 2,408,329 |
Commercial Pass | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 175,315 | 185,725 |
Commercial Pass | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 25,435 | 28,554 |
Commercial Pass | Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,830 | 2,527 |
Commercial Pass | Other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 391,673 | 394,222 |
Commercial Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 100,674 | 154,573 |
Commercial Special Mention | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 18,085 | 51,336 |
Commercial Special Mention | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,144 | 27,502 |
Commercial Special Mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,533 | 828 |
Commercial Special Mention | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 67,043 | 70,074 |
Commercial Special Mention | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,119 | 4,376 |
Commercial Special Mention | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 750 | 457 |
Commercial Special Mention | Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Commercial Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 154,739 | 129,218 |
Commercial Substandard | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 49,924 | 23,386 |
Commercial Substandard | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,804 | 20,018 |
Commercial Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,200 | 981 |
Commercial Substandard | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 78,694 | 79,769 |
Commercial Substandard | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,377 | 4,209 |
Commercial Substandard | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 387 | 286 |
Commercial Substandard | Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Commercial Substandard | Other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 353 | 569 |
Commercial Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,407 | |
Commercial Doubtful | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 370 | |
Commercial Doubtful | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 387 | |
Commercial Doubtful | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,536 | |
Commercial Doubtful | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 114 | |
Commercial Doubtful | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Commercial Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 50 | |
Commercial Loss | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 50 | |
Commercial Loss | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Consumer Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,395,161 | 1,354,790 |
Consumer Performing | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Consumer Performing | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 26,494 | 22,374 |
Consumer Performing | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,350 | 2,980 |
Consumer Performing | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 778,086 | 759,900 |
Consumer Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 489,631 | 482,661 |
Consumer Performing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 98,600 | 86,875 |
Consumer Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,343 | 10,697 |
Consumer Non-Performing | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 137 | 130 |
Consumer Non-Performing | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1 | 3 |
Consumer Non-Performing | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,996 | 8,441 |
Consumer Non-Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,100 | 2,063 |
Consumer Non-Performing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 109 | $ 60 |
Loans and Allowance - Past Due
Loans and Allowance - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 7,049,257 | $ 6,703,256 |
Non-Accrual | 20,421 | 28,724 |
Total Past Due & Non-Accrual | 38,814 | 47,943 |
Total | 7,088,071 | 6,751,199 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,649,538 | 1,487,221 |
Non-Accrual | 2,287 | 3,275 |
Total Past Due & Non-Accrual | 6,031 | 6,272 |
Total | 1,655,569 | 1,493,493 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 87,864 | 120,720 |
Non-Accrual | 640 | 1,027 |
Total Past Due & Non-Accrual | 640 | 1,037 |
Total | 88,504 | 121,757 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 667,142 | 610,896 |
Non-Accrual | 764 | 65 |
Total Past Due & Non-Accrual | 1,466 | 1,323 |
Total | 668,608 | 612,219 |
Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,683,494 | 2,542,048 |
Non-Accrual | 10,406 | 12,951 |
Total Past Due & Non-Accrual | 16,135 | 20,643 |
Total | 2,699,629 | 2,562,691 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 955,383 | 948,947 |
Non-Accrual | 5,140 | 9,444 |
Total Past Due & Non-Accrual | 10,510 | 13,818 |
Total | 965,893 | 962,765 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 513,936 | 510,362 |
Non-Accrual | 1,126 | 1,928 |
Total Past Due & Non-Accrual | 3,367 | 3,659 |
Total | 517,303 | 514,021 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 98,044 | 85,744 |
Non-Accrual | 58 | 34 |
Total Past Due & Non-Accrual | 665 | 1,191 |
Total | 98,709 | 86,935 |
Finance Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,830 | 2,527 |
Total | 1,830 | 2,527 |
Other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 392,026 | 394,791 |
Total Past Due & Non-Accrual | ||
Total | 392,026 | 394,791 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 11,976 | 16,773 |
30-59 Days Past Due | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,344 | 2,967 |
30-59 Days Past Due | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 10 | |
30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,193 | |
30-59 Days Past Due | Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,859 | 6,923 |
30-59 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,873 | 4,010 |
30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,506 | 1,372 |
30-59 Days Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 394 | 298 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6,367 | 1,522 |
60-89 Days Past Due | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 400 | 30 |
60-89 Days Past Due | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 702 | |
60-89 Days Past Due | Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,870 | 166 |
60-89 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 497 | 308 |
60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 735 | 184 |
60-89 Days Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 163 | 834 |
60-89 Days Past Due | Other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 50 | 924 |
90 Days or More Past Due | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
90 Days or More Past Due | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
90 Days or More Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 65 | |
90 Days or More Past Due | Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 603 | |
90 Days or More Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 56 | |
90 Days or More Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 175 | |
90 Days or More Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 50 | $ 25 |
Loans and Allowance - Summary_2
Loans and Allowance - Summary of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Balance | $ 219 | $ 194 | $ 578 | $ 1,517 |
Post-Modification Recorded Balance | $ 205 | $ 201 | $ 576 | $ 1,261 |
Number of Loans | loan | 5 | 4 | 15 | 18 |
Commercial and industrial loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Balance | $ 6 | $ 400 | ||
Post-Modification Recorded Balance | $ 6 | $ 176 | ||
Number of Loans | loan | 1 | 2 | ||
Commercial and farmland | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Balance | $ 357 | |||
Post-Modification Recorded Balance | $ 492 | |||
Number of Loans | loan | 6 | |||
Residential | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Balance | $ 154 | $ 120 | $ 490 | $ 570 |
Post-Modification Recorded Balance | $ 140 | $ 122 | $ 487 | $ 520 |
Number of Loans | loan | 4 | 1 | 11 | 8 |
Home equity | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Balance | $ 65 | $ 68 | $ 81 | $ 190 |
Post-Modification Recorded Balance | $ 65 | $ 73 | $ 81 | $ 73 |
Number of Loans | loan | 1 | 2 | 3 | 2 |
Individuals' loans for household and other personal expenditures | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-Modification Recorded Balance | $ 7 | |||
Post-Modification Recorded Balance | $ 8 | |||
Number of Loans | loan | 1 |
Loans and Allowance - Summary_3
Loans and Allowance - Summary of Troubled Debt Restructurings by Modification Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Modifications [Line Items] | ||||
Modification | $ 205 | $ 200 | $ 606 | $ 1,088 |
Term Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 5 | 77 | 46 | |
Rate Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 112 | 195 | 290 | 600 |
Combination | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 93 | 239 | 442 | |
Commercial and industrial loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 5 | 173 | ||
Commercial and industrial loans | Term Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 5 | 5 | ||
Commercial and industrial loans | Rate Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | ||||
Commercial and industrial loans | Combination | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 168 | |||
Commercial and farmland | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 334 | |||
Commercial and farmland | Term Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 41 | |||
Commercial and farmland | Rate Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 61 | |||
Commercial and farmland | Combination | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 232 | |||
Residential | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 140 | 122 | 447 | 508 |
Residential | Term Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | ||||
Residential | Rate Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 47 | 122 | 208 | 466 |
Residential | Combination | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 93 | 239 | 42 | |
Home equity | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 65 | 73 | 153 | 73 |
Home equity | Term Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 77 | |||
Home equity | Rate Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 65 | 73 | 76 | 73 |
Home equity | Combination | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | ||||
Individuals' loans for household and other personal expenditures | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 6 | |||
Individuals' loans for household and other personal expenditures | Rate Modification | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification | 6 | |||
Individuals' loans for household and other personal expenditures | Combination | ||||
Financing Receivable, Modifications [Line Items] | ||||
Modification |
Loans and Allowance - Subsequen
Loans and Allowance - Subsequent Default (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($)loan | Sep. 30, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 4 | 6 |
Recorded Balance | $ | $ 356 | $ 425 |
Commercial and farmland | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Recorded Balance | $ | $ 262 | $ 262 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 4 |
Recorded Balance | $ | $ 83 | $ 152 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Recorded Balance | $ | $ 11 | $ 11 |
Purchased Credit Impaired Loa_3
Purchased Credit Impaired Loans - Accretable Yield or Income Expected to be Collected (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||||
Beginning balance | $ 2,423 | $ 2,607 | $ 2,890 | $ 3,951 | |
Additions | 941 | 1,608 | |||
Accretion | (1,004) | (686) | (2,441) | (5,082) | |
Reclassification from nonaccretable | 798 | 449 | 1,768 | 3,501 | |
Disposals | (16) | (16) | (667) | ||
Ending balance | 2,201 | $ 3,311 | 2,201 | $ 3,311 | |
Loans acquired with deteriorated credit quality | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans acquired and accounted for under ASC 310-30, carrying amount | $ 20,600 | $ 20,600 | $ 25,300 |
Purchased Credit Impaired Loa_4
Purchased Credit Impaired Loans - Loans Acquired for Which Contractually Required Payments Would not be Collected (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 14, 2017 | May 19, 2017 |
IAB | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contractually required payments receivable at acquisition date | $ 14,131 | $ 14,131 | |
Nonaccretable difference | 8,352 | ||
Expected cash flows at acquisition date | 5,779 | ||
Accretable difference | 941 | ||
Basis in loans at acquisition date | 4,838 | $ 4,838 | |
Arlington Bank | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contractually required payments receivable at acquisition date | 6,183 | $ 6,183 | |
Nonaccretable difference | 2,891 | ||
Expected cash flows at acquisition date | 3,292 | ||
Accretable difference | 667 | ||
Basis in loans at acquisition date | $ 2,625 | $ 2,625 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | May 19, 2017 | Dec. 31, 2017 | Sep. 30, 2018 | Jul. 14, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||||
Goodwill | $ 445,355 | $ 445,355 | $ 244,000 | ||
Goodwill, measurement period adjustment | $ (469) | ||||
IAB | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 153,636 | ||||
Arlington Bank | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 47,719 | ||||
Goodwill, measurement period adjustment | $ 469 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance, January 1 | $ 244,000 |
Goodwill acquired | 201,824 |
Measurement period adjustment | (469) |
Balance, December 31 | $ 445,355 |
Other Intangibles - Narrative (
Other Intangibles - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Jul. 14, 2017 | May 19, 2017 | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of core deposit intangibles and other intangibles | 2 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life of core deposit intangibles and other intangibles | 10 years | ||
IAB | |||
Finite-Lived Intangible Assets [Line Items] | |||
Core deposit intangible | $ 17,403 | ||
IAB | Core deposit intangibles acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Core deposit intangible | 13,638 | ||
IAB | Other intangibles acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Core deposit intangible | $ 3,765 | ||
Arlington Bank | |||
Finite-Lived Intangible Assets [Line Items] | |||
Core deposit intangible | $ 4,526 | ||
Arlington Bank | Core deposit intangibles acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Core deposit intangible | $ 4,526 |
Other Intangibles - Schedule of
Other Intangibles - Schedule of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 85,869 | $ 63,940 |
Accumulated amortization | (59,815) | (54,721) |
Total other intangibles | 26,054 | 31,148 |
Core deposit intangibles acquired | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangibles acquired | 18,164 | |
Other intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangibles acquired | $ 3,765 |
Other Intangibles - Estimated F
Other Intangibles - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortization Expense | ||
2,018 | $ 1,625 | |
2,019 | 5,169 | |
2,020 | 3,632 | |
2,021 | 3,427 | |
2,022 | 3,325 | |
After 2,022 | 8,876 | |
Total other intangibles | $ 26,054 | $ 31,148 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($)interest_rate_swapinterest_rate_capinstrument | Sep. 30, 2018USD ($)interest_rate_swapinterest_rate_capinstrument | Dec. 31, 2017USD ($)interest_rate_swapinterest_rate_cap | |
Derivative [Line Items] | |||
Estimated amount to be transferred from accumulated other comprehensive income to earnings | $ 249 | ||
Termination value of derivatives in a net liability position | $ 394 | 394 | |
Derivative collateral posted | 3,315 | 3,315 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount of interest rate derivatives | $ 420,388 | $ 420,388 | |
Federal Home Loan Bank Advances | |||
Derivative [Line Items] | |||
Number of debt instruments held | instrument | 2 | 2 | |
Cash Flow Hedging | Interest Rate Swap | |||
Derivative [Line Items] | |||
Number of interest rate derivatives held | interest_rate_swap | 4 | 4 | 5 |
Notional amount of interest rate derivatives | $ 46,000 | $ 46,000 | $ 56,000 |
Notional amount matured | 10,000 | ||
Cash Flow Hedging | Interest Rate Swap | Trust Preferred Debt | |||
Derivative [Line Items] | |||
Notional amount of interest rate derivatives | 26,000 | 26,000 | |
Cash Flow Hedging | Interest Rate Swap | Federal Home Loan Bank Advances | |||
Derivative [Line Items] | |||
Notional amount of interest rate derivatives | $ 20,000 | $ 20,000 | |
Cash Flow Hedging | Interest Rate Cap | |||
Derivative [Line Items] | |||
Number of interest rate derivatives held | interest_rate_cap | 1 | 1 | 1 |
Notional amount of interest rate derivatives | $ 13,000 | $ 13,000 | $ 13,000 |
Cash Flow Hedging | Interest Rate Cap | Trust Preferred Debt | |||
Derivative [Line Items] | |||
Notional amount of interest rate derivatives | $ 13,000 | $ 13,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) - Interest rate contracts - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 548 | $ 18 |
Derivatives designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 387 | 1,383 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 13,763 | 7,305 |
Derivatives not designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 13,763 | $ 7,305 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Derivative Financial Instruments on Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Products | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $ 210 | $ (10) | $ 1,009 | $ (380) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest rate contracts | Derivatives designated as hedging instruments | Interest Expense | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion) | $ (93) | $ (240) | $ (368) | $ (759) |
Disclosures About Fair Value _3
Disclosures About Fair Value of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | $ 1,149,162 | $ 999,947 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | ||
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,145,847 | 995,969 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 3,315 | 3,978 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 2,353 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 4 | |
Fair Value, Measurements, Recurring | Interest rate swap liability | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 14,150 | 8,688 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored agency securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 18,358 | |
Fair Value, Measurements, Recurring | State and municipal | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 596,888 | 522,750 |
Fair Value, Measurements, Recurring | State and municipal | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 3,280 | 3,943 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 530,601 | 470,866 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 4 | |
Fair Value, Measurements, Recurring | Corporate obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Fair Value, Measurements, Recurring | Interest rate swap asset | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 13,763 | 7,305 |
Fair Value, Measurements, Recurring | Interest rate cap | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 548 | 18 |
Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 2,357 | |
Fair Value, Measurements, Recurring | Fair Value | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 14,150 | 8,688 |
Fair Value, Measurements, Recurring | Fair Value | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 18,358 | |
Fair Value, Measurements, Recurring | Fair Value | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 600,168 | 526,693 |
Fair Value, Measurements, Recurring | Fair Value | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 530,605 | 470,866 |
Fair Value, Measurements, Recurring | Fair Value | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Fair Value, Measurements, Recurring | Fair Value | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 13,763 | 7,305 |
Fair Value, Measurements, Recurring | Fair Value | Interest rate cap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | $ 548 | $ 18 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Assets and Liabilities - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) - Fair Value, Measurements, Recurring - Available for Sale Securities - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Available for Sale Securities | ||||
Balance at beginning of the period | $ 3,970 | $ 3,330 | $ 3,978 | $ 5,169 |
Included in other comprehensive income | (35) | (22) | (59) | 38 |
Principal payments | (620) | 679 | (604) | (1,220) |
Ending balance | $ 3,315 | $ 3,987 | $ 3,315 | $ 3,987 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Assets and Liabilities - Transfers Between Levels (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||||
Transfers in or out of Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Disclosures About Fair Value _6
Disclosures About Fair Value of Assets and Liabilities - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired loans (collateral dependent) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 5,344 | $ 9,576 |
Impaired loans (collateral dependent) | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,344 | 9,576 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 937 | 859 |
Other real estate owned | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 937 | $ 859 |
Disclosures About Fair Value _7
Disclosures About Fair Value of Assets and Liabilities - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
State and municipal securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 3,280 | $ 3,943 |
State and municipal securities | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Maturity/Call date | 1 month | 1 month |
US Muni BQ curve | A- | A- |
State and municipal securities | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Maturity/Call date | 20 years | 20 years |
US Muni BQ curve | BBB- | BBB- |
Corporate obligations and U.S. Government-sponsored mortgage backed securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 35 | |
Corporate obligations and equity securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 35 | |
Impaired loans (collateral dependent) | Collateral based measurements | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 5,344 | 9,576 |
Other real estate owned | Appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 937 | $ 859 |
Discount rate | State and municipal securities | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.01 | 0.0069 |
Discount rate | State and municipal securities | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.05 | 0.05 |
Risk free rate | Corporate obligations and U.S. Government-sponsored mortgage backed securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Rate basis | 3 month LIBOR | |
Risk free rate | Corporate obligations and equity securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Rate basis | 3 month LIBOR | |
Discount to reflect current market conditions | Corporate obligations and U.S. Government-sponsored mortgage backed securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.0200 | |
Discount to reflect current market conditions | Corporate obligations and equity securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.0200 | |
Discount to reflect current market conditions | Impaired loans (collateral dependent) | Collateral based measurements | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0 | 0 |
Discount to reflect current market conditions | Impaired loans (collateral dependent) | Collateral based measurements | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.10 | 0.10 |
Discount to reflect current market conditions | Impaired loans (collateral dependent) | Collateral based measurements | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Measurement Input | 0.02 | 0.01 |
Discount to reflect current market conditions | Other real estate owned | Appraisals | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | 0 | 0 |
Discount to reflect current market conditions | Other real estate owned | Appraisals | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | 0.24 | 0.10 |
Discount to reflect current market conditions | Other real estate owned | Appraisals | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | 0.03 | 0.02 |
Disclosures About Fair Value _8
Disclosures About Fair Value of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Investment securities available for sale | $ 1,149,162 | $ 999,947 |
Investment securities held to maturity | 468,452 | 568,208 |
Loans held for sale | 3,022 | 7,216 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 142,501 | 154,905 |
Interest-bearing time deposits | 66,763 | 35,027 |
Investment securities available for sale | ||
Liabilities: | ||
Deposits | 6,083,491 | 5,741,019 |
Significant Other Observable Inputs (Level 2) | ||
Borrowings: | ||
Federal funds purchased | 90,000 | 144,038 |
Securities sold under repurchase agreements | 118,696 | 136,562 |
Federal Home Loan Bank advances | 379,309 | 361,085 |
Subordinated debentures and term loans | 124,806 | 120,085 |
Assets: | ||
Investment securities available for sale | 1,145,847 | 995,969 |
Investment securities held to maturity | 458,087 | 556,305 |
Loans held for sale | 3,022 | 7,216 |
Federal Home Loan Bank stock | 24,588 | 23,825 |
Interest rate swap and cap asset | 14,311 | 7,323 |
Interest receivable | 38,531 | 37,130 |
Liabilities: | ||
Deposits | 1,522,591 | 1,406,526 |
Interest rate swap liability | 14,150 | 8,688 |
Interest payable | 5,920 | 4,390 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investment securities available for sale | 3,315 | 3,978 |
Investment securities held to maturity | 10,365 | 11,903 |
Loans | 6,793,227 | 6,534,877 |
Carrying Amount | ||
Borrowings: | ||
Federal funds purchased | 90,000 | 144,038 |
Securities sold under repurchase agreements | 118,824 | 136,623 |
Federal Home Loan Bank advances | 385,458 | 414,377 |
Subordinated debentures and term loans | 138,408 | 139,349 |
Assets: | ||
Cash and cash equivalents | 142,501 | 154,905 |
Interest-bearing time deposits | 66,763 | 35,027 |
Investment securities available for sale | 1,149,162 | 999,947 |
Investment securities held to maturity | 476,089 | 560,655 |
Loans held for sale | 3,022 | 7,216 |
Loans | 7,009,665 | 6,676,167 |
Federal Home Loan Bank stock | 24,588 | 23,825 |
Interest rate swap and cap asset | 14,311 | 7,323 |
Interest receivable | 38,531 | 37,130 |
Liabilities: | ||
Deposits | 7,633,152 | 7,172,530 |
Interest rate swap liability | 14,150 | 8,688 |
Interest payable | $ 5,920 | $ 4,390 |
Transfers Accounted for as Se_3
Transfers Accounted for as Secured Borrowings (Details) - U.S. Government-sponsored mortgage-backed securities - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 118,824 | $ 136,623 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 109,695 | 126,187 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 1,340 | |
30-90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 1,514 | 1,500 |
Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 7,615 | $ 7,596 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Balances of Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | $ 1,303,463 | |||
Other comprehensive income before reclassifications | (28,993) | $ 7,878 | ||
Amounts reclassified from accumulated other comprehensive income | $ (942) | $ (118) | (2,882) | (655) |
Total other comprehensive income (loss), net of tax | (10,541) | (7,742) | (31,875) | 7,223 |
Reclassification adjustment under ASU 2018-02 | (626) | |||
Ending balance | 1,361,426 | 1,361,426 | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (2,908) | (13,581) | ||
Total other comprehensive income (loss), net of tax | (31,875) | |||
Ending balance | (35,409) | (6,358) | (35,409) | (6,358) |
Unrealized Gains (Losses) on Securities Available for Sale | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | 8,970 | 1,035 | ||
Other comprehensive income before reclassifications | (30,032) | 8,124 | ||
Amounts reclassified from accumulated other comprehensive income | (1,015) | (216) | (3,173) | (973) |
Total other comprehensive income (loss), net of tax | (33,205) | 7,151 | ||
Reclassification adjustment under ASU 2018-02 | 1,932 | |||
Ending balance | (22,303) | 8,186 | (22,303) | 8,186 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (1,125) | (1,774) | ||
Other comprehensive income before reclassifications | 1,039 | (246) | ||
Amounts reclassified from accumulated other comprehensive income | 73 | 156 | 291 | 493 |
Total other comprehensive income (loss), net of tax | 1,330 | 247 | ||
Reclassification adjustment under ASU 2018-02 | (242) | |||
Ending balance | (37) | (1,527) | (37) | (1,527) |
Unrealized Gains (Losses) on Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (10,753) | (12,842) | ||
Other comprehensive income before reclassifications | ||||
Amounts reclassified from accumulated other comprehensive income | (175) | |||
Total other comprehensive income (loss), net of tax | 0 | (175) | ||
Reclassification adjustment under ASU 2018-02 | (2,316) | |||
Ending balance | $ (13,069) | $ (13,017) | $ (13,069) | $ (13,017) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of available for sale securities | $ 1,285 | $ 332 | $ 4,016 | $ 1,497 |
Interest expense - subordinated debentures and term loans | 2,089 | 1,945 | 6,136 | 5,602 |
Amortization of prior service costs | 32,936 | 33,244 | 97,354 | 86,052 |
Income tax expense | (8,478) | (7,939) | (23,050) | (22,314) |
Total reclassifications for the period, net of tax | 942 | 118 | 2,882 | 655 |
Unrealized gains (losses) on available for sale securities | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 1,015 | 216 | 3,173 | 973 |
Unrealized gains (losses) on cash flow hedges | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | (73) | (156) | (291) | (493) |
Unrealized Gains (Losses) on Defined Benefit Plans | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 175 | |||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on available for sale securities | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of available for sale securities | 1,285 | 332 | 4,016 | 1,497 |
Income tax expense | (270) | (116) | (843) | (524) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on cash flow hedges | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 20 | 84 | 77 | 266 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on cash flow hedges | Interest rate contracts | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense - subordinated debentures and term loans | (93) | (240) | (368) | (759) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized Gains (Losses) on Defined Benefit Plans | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service costs | 89 | 269 | ||
Income tax expense | (31) | (94) | ||
Total reclassifications for the period, net of tax | $ 0 | $ 58 | $ 0 | $ 175 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of average closing price to be paid by employees | 85.00% | ||||
Maximum common stock purchases through advance payroll deductions in a calendar year | $ 25,000 | ||||
Share-based compensation | $ 894,000 | $ 823,000 | $ 2,546,000 | $ 1,884,000 | |
Forfeiture rate | 2.20% | ||||
Unrecognized compensation expense related to stock options | $ 0 | $ 0 | |||
Aggregate intrinsic value of stock options exercised | 1,203,000 | 1,675,000 | |||
Cash receipts of stock options exercised | $ 1,093,000 | $ 2,323,000 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option term | 10 years | ||||
Stock options vesting percentage | 100.00% | ||||
Stock Options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 6 months | ||||
Stock Options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 2 years | ||||
RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 3 years | ||||
Outstanding DSUs (in shares) | 359,736 | 359,736 | 366,993 | ||
Unrecognized compensation expense related to RSAs | $ 8,480,000 | $ 8,480,000 | |||
Unrecognized compensation expense expected recognition period | 1 year 8 months 4 days | ||||
DSUs | Non-employee Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding DSUs (in shares) | 0 | 0 | |||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to stock options | $ 0 | $ 0 | |||
Grant date fair value of ESPP options | $ 39,424 |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Share-Based Compensation Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | $ 894 | $ 823 | $ 2,546 | $ 1,884 |
Income tax benefit | (220) | (289) | (1,105) | (1,473) |
Total share-based compensation expense, net of income taxes | 674 | 534 | 1,441 | 411 |
Stock and ESPP Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | 39 | 23 | 88 | 93 |
Income tax benefit | (15) | (9) | (153) | (313) |
Total share-based compensation expense, net of income taxes | 24 | 14 | (65) | (220) |
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | 855 | 800 | 2,458 | 1,791 |
Income tax benefit | (205) | (280) | (952) | (1,160) |
Total share-based compensation expense, net of income taxes | $ 650 | $ 520 | $ 1,506 | $ 631 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity under Stock Option Plans (Details) | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 152,652 |
Exercised (in shares) | shares | (51,243) |
Cancelled (in shares) | shares | (200) |
Ending balance (in shares) | shares | 101,209 |
Vested and Expected to Vest (in shares) | shares | 101,209 |
Exercisable (in shares) | shares | 101,209 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 16.71 |
Exercised (in dollars per share) | $ / shares | 21.33 |
Cancelled (in dollars per share) | $ / shares | 28.25 |
Ending balance (in dollars per share) | $ / shares | 14.34 |
Vested and Expected to Vest (in dollars per share) | $ / shares | 14.34 |
Exercisable (in dollars per share) | $ / shares | $ 14.34 |
Weighted Average Remaining Contractual Term (in Years) | |
Outstanding (term) | 2 years 4 months 28 days |
Vested and Expected to Vest (term) | 2 years 4 months 28 days |
Exercisable (term) | 2 years 4 months 28 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 3,101,835 |
Vested and Expected to Vest | $ | 3,101,835 |
Exercisable | $ | $ 3,101,835 |
Share-Based Compensation - Unve
Share-Based Compensation - Unvested RSAs Outstanding (Details) - RSAs | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Shares | |
Unvested RSAs, Beginning Balance (in shares) | shares | 366,993 |
Granted (in shares) | shares | 105,100 |
Vested (in shares) | shares | (106,797) |
Forfeited (in shares) | shares | (5,560) |
Unvested RSAs, Ending Balance (in shares) | shares | 359,736 |
Weighted-Average Grant Date Fair Value | |
Unvested RSAs, Beginning Balance (in dollars per share) | $ / shares | $ 29.79 |
Granted (in dollars per share) | $ / shares | 48.11 |
Vested (in dollars per share) | $ / shares | 23.74 |
Forfeited (in dollars per share) | $ / shares | 38.31 |
Unvested RSAs, Ending Balance (in dollars per share) | $ / shares | $ 36.82 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of Federal Statutory to Actual Tax Expense: | ||||
Federal statutory income tax at 21% for 2018 and 35% for 2017 | $ 10,414 | $ 11,304 | $ 29,500 | $ 32,900 |
Tax-exempt interest income | (2,118) | (2,881) | (6,178) | (8,062) |
Share-based compensation | (38) | (78) | (570) | (862) |
Tax-exempt earnings and gains on life insurance | (197) | (551) | (655) | (1,905) |
Tax credits | (42) | (61) | (65) | (249) |
Other | 459 | 206 | 1,018 | 492 |
Actual Tax Expense | $ 8,478 | $ 7,939 | $ 23,050 | $ 22,314 |
Federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 35.00% |
Effective Tax Rate | 17.10% | 24.60% | 16.40% | 23.70% |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Income | ||||
Net income available to common stockholders | $ 41,113 | $ 24,358 | $ 117,426 | $ 71,687 |
Diluted net income per share | $ 41,113 | $ 24,358 | $ 117,426 | $ 71,687 |
Weighted-Average Shares | ||||
Net income available to common stockholders (in shares) | 49,286,945 | 48,431,880 | 49,244,403 | 43,845,675 |
Effect of potentially dilutive stock options and restricted stock awards (in shares) | 205,074 | 211,894 | 213,782 | 217,544 |
Diluted net income per share (in shares) | 49,492,019 | 48,643,774 | 49,458,185 | 44,063,219 |
Per Share Amount | ||||
Net income available to common stockholders (in dollars per share) | $ 0.83 | $ 0.50 | $ 2.38 | $ 1.64 |
Diluted net income per share (in dollars per share) | $ 0.83 | $ 0.50 | $ 2.37 | $ 1.63 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options not included in the earnings per share calculation (in shares) | 0 | 0 | 0 | 0 |
Impact of Accounting Changes (D
Impact of Accounting Changes (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | $ 53,167 | $ 42,338 |
Other liabilities | 54,094 | $ 52,708 |
Anticipated impact | ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other assets | 25,000 | |
Other liabilities | $ 25,000 |
Consummation of Merger (Details
Consummation of Merger (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 09, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Assets | $ 9,787,282 | $ 9,367,478 | ||
MBT | ||||
Business Acquisition [Line Items] | ||||
Assets | $ 1,300,000 | |||
Subsequent event | ||||
Business Acquisition [Line Items] | ||||
Share price | $ 45.71 | |||
Subsequent event | MBT | ||||
Business Acquisition [Line Items] | ||||
Total purchase price | $ 290,900 |