Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST MERCHANTS CORP | |
Entity Central Index Key | 0000712534 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FRME | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 49,669,938 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 115,878 | $ 139,247 |
Interest-bearing time deposits | 70,672 | 36,963 |
Investment securities available for sale | 1,247,632 | 1,142,195 |
Investment securities held to maturity (fair value of $622,635 and $489,217) | 615,027 | 490,387 |
Loans held for sale | 3,330 | 4,778 |
Loans, net of allowance for loan losses of $80,902 and $80,552 | 7,218,418 | 7,143,915 |
Premises and equipment | 91,863 | 93,420 |
Federal Home Loan Bank stock | 24,588 | 24,588 |
Interest receivable | 40,931 | 40,881 |
Goodwill | 445,355 | 445,355 |
Other intangibles | 22,901 | 24,429 |
Cash surrender value of life insurance | 225,928 | 224,939 |
Other real estate owned | 1,877 | 2,179 |
Tax asset, deferred and receivable | 16,094 | 23,668 |
Other assets | 70,431 | 47,772 |
TOTAL ASSETS | 10,210,925 | 9,884,716 |
Deposits: | ||
Noninterest-bearing | 1,381,183 | 1,447,907 |
Interest-bearing | 6,666,615 | 6,306,686 |
Total Deposits | 8,047,798 | 7,754,593 |
Borrowings: | ||
Federal funds purchased | 20,000 | 104,000 |
Securities sold under repurchase agreements | 111,783 | 113,512 |
Federal Home Loan Bank advances | 345,013 | 314,986 |
Subordinated debentures and term loans | 138,519 | 138,463 |
Total Borrowings | 615,315 | 670,961 |
Interest payable | 7,313 | 5,607 |
Other liabilities | 84,651 | 45,295 |
Total Liabilities | 8,755,077 | 8,476,456 |
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 | 6,179 | 6,169 |
Additional paid-in capital | 839,919 | 840,052 |
Retained earnings | 611,220 | 583,336 |
Accumulated other comprehensive loss | (1,595) | (21,422) |
Total Stockholders' Equity | 1,455,848 | 1,408,260 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 10,210,925 | $ 9,884,716 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity - fair value | $ 622,635 | $ 489,217 |
Loans - allowance for loan losses | $ 80,902 | $ 80,552 |
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) | 49,428,468 | 49,349,800 |
Common Stock, outstanding (in shares) | 49,428,468 | 49,349,800 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Loans receivable: | ||
Taxable | $ 90,481 | $ 78,267 |
Tax exempt | 4,153 | 3,596 |
Investment securities: | ||
Taxable | 6,095 | 5,096 |
Tax exempt | 6,871 | 6,126 |
Deposits with financial institutions | 875 | 131 |
Federal Home Loan Bank stock | 338 | 404 |
Total Interest Income | 108,813 | 93,620 |
INTEREST EXPENSE | ||
Deposits | 19,594 | 9,002 |
Federal funds purchased | 93 | 380 |
Securities sold under repurchase agreements | 330 | 173 |
Federal Home Loan Bank advances | 1,814 | 2,159 |
Subordinated debentures and term loans | 2,116 | 1,990 |
Total Interest Expense | 23,947 | 13,704 |
NET INTEREST INCOME | 84,866 | 79,916 |
Provision for loan losses | 1,200 | 2,500 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 83,666 | 77,416 |
OTHER INCOME | ||
Increase in cash surrender value of life insurance | 989 | 1,078 |
Gains on life insurance benefits | 0 | 98 |
Net gains and fees on sales of loans | 1,295 | 1,821 |
Net realized gains on sales of available for sale securities | 1,140 | 1,609 |
Other income | 330 | 504 |
Total Other Income | 18,713 | 19,561 |
OTHER EXPENSES | ||
Salaries and employee benefits | 33,028 | 32,226 |
Net occupancy | 5,027 | 4,670 |
Equipment | 3,642 | 3,668 |
Marketing | 1,074 | 884 |
Outside data processing fees | 3,684 | 2,964 |
Printing and office supplies | 315 | 334 |
Intangible asset amortization | 1,528 | 1,726 |
FDIC assessments | 707 | 719 |
Other real estate owned and foreclosure expenses | 1,165 | 402 |
Professional and other outside services | 1,884 | 1,541 |
Other expenses | 4,567 | 4,553 |
Total Other Expenses | 56,621 | 53,687 |
INCOME BEFORE INCOME TAX | 45,758 | 43,290 |
Income tax expense | 6,941 | 6,611 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 38,817 | $ 36,679 |
Per Share Data: | ||
Basic Net Income Available to Common Stockholders (in dollars per share) | $ 0.79 | $ 0.75 |
Diluted Net Income Available to Common Stockholders (in dollars per share) | 0.78 | 0.74 |
Cash Dividends Paid (in dollars per share) | $ 0.22 | $ 0.18 |
Average Diluted Shares Outstanding (in shares) | 49,540,844 | 49,427,972 |
Service charges on deposit accounts | ||
OTHER INCOME | ||
Other income | $ 5,095 | $ 4,777 |
Fiduciary and wealth management fees | ||
OTHER INCOME | ||
Other income | 3,818 | 3,796 |
Card payment fees | ||
OTHER INCOME | ||
Other income | 4,826 | 4,594 |
Other customer fees | ||
OTHER INCOME | ||
Other income | 439 | 442 |
Derivative hedge income | ||
OTHER INCOME | ||
Other income | $ 781 | $ 842 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 38,817 | $ 36,679 |
Other comprehensive income (loss), net of tax: | ||
Unrealized holding gain (loss) on securities available for sale arising during the period, net of tax of $5,580 and $4,191 | 20,990 | (17,698) |
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $82 and $106 | (309) | 644 |
Reclassification adjustment for net gains included in net income, net of tax of $227 and $302 | (854) | (1,137) |
Total other comprehensive income (loss), net of tax | 19,827 | (18,191) |
Comprehensive income | $ 58,644 | $ 18,488 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding gain (loss) on securities available for sale arising during the period, tax | $ 5,580 | $ (4,191) |
Unrealized gain (loss) on cash flow hedges arising during the period, tax | (82) | 106 |
Reclassification adjustment for net losses (gains) included in net income, tax | $ 227 | $ 302 |
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 (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 | 36,679 | 36,679 | ||||
Other comprehensive income (loss), net of tax | (18,191) | (18,191) | ||||
Cash dividends on common stock | (8,912) | (8,912) | ||||
Reclassification adjustment under ASU 2018-02 | 0 | 626 | (626) | |||
Share-based compensation (in shares) | 93,076 | |||||
Share-based compensation | 875 | $ 12 | 863 | |||
Stock issued under employee benefit plans (in shares) | 4,363 | |||||
Stock issued under employee benefit plans | 159 | $ 1 | 158 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 5,614 | |||||
Stock issued under dividend reinvestment and stock purchase plan | 250 | $ 1 | 249 | |||
Stock options exercised (in shares) | 23,557 | |||||
Stock options exercised | 535 | $ 3 | 532 | |||
Stock redeemed (in shares) | (41,752) | |||||
Stock redeemed | (1,785) | $ (7) | (1,778) | |||
Ending balance (in shares) at Mar. 31, 2018 | 125 | 49,243,096 | ||||
Ending balance at Mar. 31, 2018 | 1,313,073 | $ 125 | $ 6,155 | 834,894 | 493,624 | (21,725) |
Beginning balance (in shares) at Dec. 31, 2018 | 125 | 49,349,800 | ||||
Beginning balance at Dec. 31, 2018 | 1,408,260 | $ 125 | $ 6,169 | 840,052 | 583,336 | (21,422) |
Comprehensive income: | ||||||
Net income | 38,817 | 38,817 | ||||
Other comprehensive income (loss), net of tax | 19,827 | 19,827 | ||||
Cash dividends on common stock | (10,933) | (10,933) | ||||
Reclassification adjustment under ASU 2018-02 | (626) | |||||
Share-based compensation (in shares) | 103,660 | |||||
Share-based compensation | 981 | $ 13 | 968 | |||
Stock issued under employee benefit plans (in shares) | 5,339 | |||||
Stock issued under employee benefit plans | 174 | $ 1 | 173 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 8,508 | |||||
Stock issued under dividend reinvestment and stock purchase plan | $ 340 | $ 1 | 339 | |||
Stock options exercised (in shares) | 3,700 | 3,700 | ||||
Stock options exercised | $ 40 | $ 0 | 40 | |||
Stock redeemed (in shares) | (42,539) | |||||
Stock redeemed | (1,658) | $ (5) | (1,653) | |||
Ending balance (in shares) at Mar. 31, 2019 | 125 | 49,428,468 | ||||
Ending balance at Mar. 31, 2019 | $ 1,455,848 | $ 125 | $ 6,179 | $ 839,919 | $ 611,220 | $ (1,595) |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock (in dollars per share) | $ 0.22 | $ 0.18 |
CONSOLIDATED CONDENSED STATEM_6
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flow From Operating Activities: | ||
Net income | $ 38,817 | $ 36,679 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,200 | 2,500 |
Depreciation and amortization | 2,209 | 2,213 |
Change in deferred taxes | 740 | 957 |
Share-based compensation | 981 | 875 |
Loans originated for sale | (67,596) | (92,887) |
Proceeds from sales of loans held for sale | 69,940 | 96,973 |
Gains on sales of loans held for sale | (896) | (1,339) |
Gains on sales of securities available for sale | (1,140) | (1,609) |
Increase in cash surrender of life insurance | (989) | (1,078) |
Gains on life insurance benefits | 0 | (98) |
Change in interest receivable | (50) | 1,907 |
Change in interest payable | 1,706 | 986 |
Other adjustments | 7,019 | (15,082) |
Net cash provided by operating activities | 51,941 | 30,997 |
Cash Flows from Investing Activities: | ||
Net change in interest-bearing deposits | (33,709) | 10,794 |
Purchases of: | ||
Securities available for sale | (125,523) | (98,113) |
Securities held to maturity | (138,857) | 0 |
Proceeds from sales of securities available for sale | 34,107 | 55,695 |
Proceeds from maturities of: | ||
Securities available for sale | 25,904 | 15,764 |
Securities held to maturity | 13,879 | 20,092 |
Change in Federal Home Loan Bank stock | 0 | (763) |
Net change in loans | (75,963) | (153,893) |
Proceeds from the sale of other real estate owned | 288 | 820 |
Proceeds from life insurance benefits | 0 | 2,784 |
Other adjustments | (954) | 1,051 |
Net cash used in investing activities | (300,828) | (145,769) |
Net change in : | ||
Demand and savings deposits | 171,543 | 108,446 |
Certificates of deposit and other time deposits | 121,662 | 46,659 |
Borrowings | 295,060 | 737,347 |
Repayment of borrowings | (350,710) | (794,004) |
Cash dividends on common stock | (10,933) | (8,912) |
Stock issued under employee benefit plans | 174 | 159 |
Stock issued under dividend reinvestment and stock purchase plans | 340 | 250 |
Stock options exercised | 40 | 535 |
Stock redeemed | (1,658) | (1,785) |
Net cash provided by financing activities | 225,518 | 88,695 |
Net Change in Cash and Cash Equivalents | (23,369) | (26,077) |
Cash and Cash Equivalents, January 1 | 139,247 | 154,905 |
Cash and Cash Equivalents, March 31 | 115,878 | 128,828 |
Additional cash flow information: | ||
Interest paid | 22,241 | 12,718 |
Income tax paid (refunded) | 0 | (257) |
Loans transferred to other real estate owned | 260 | 131 |
Fixed assets transferred to other real estate owned | 302 | 0 |
Non-cash investing activities using trade date accounting | 14,579 | $ 601 |
ROU assets obtained in exchange for new operating lease liabilities | $ 23,324 |
General
General | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 , 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, 2018 filed with the Securities and Exchange Commission. The results of operations for the three months ended March 31, 2019 , 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 Adopted in 2019 FASB Accounting Standards Updates No. 2018-11 - Leases (Topic 842): Targeted Improvements - The FASB issued Accounting Standards Update (ASU) No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU was intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provided a new transition method and a practical expedient for separating components of a contract. ASU 2018-11 provided entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applied the new leases standard at the adoption date and recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the Corporation's reporting for the comparative periods presented in the financial statements in the period of adoption is in accordance with GAAP in Topic 840, Leases. The Corporation must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments did not change the existing disclosure requirements in Topic 840 (for example, they did not create interim disclosure requirements that the Corporation previously was not required to provide). The Corporation adopted this new transition method on January 1, 2019, but did not recognize a cumulative-effect adjustment to the opening balance of retained earnings at adoption. Lease disclosures are included in NOTE 7. LEASES, in the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q. The amendments in ASU 2018-11 provided lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease 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 non-lease 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 Corporation elected the practical expedient to not separate non-lease components from the associated lease component at adoption, which was January 1, 2019. FASB Accounting Standards Update No. 2018-07 - Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting - The FASB issued an Accounting Standards Update (ASU) intended to reduce cost and complexity and to improve financial reporting for non-employee share-based payments. The ASU expanded the scope of Topic 718, Compensation-Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees is substantially aligned. The ASU supersedes Subtopic 505-50, Equity-Equity-Based Payments to Non-Employees. The Corporation adopted the standard in the first quarter of 2019 and adoption of the standard did not 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 - The FASB 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 shortened the amortization period for certain callable debt securities held at a premium to the earliest call date. Under previous GAAP, entities normally amortized the premium as an adjustment of yield over the contractual life of the instrument. Stakeholders expressed concerns with the approach on the basis that GAAP excluded certain callable debt securities from consideration of early repayment of principal even if the holder was certain the call would be exercised. As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium was recorded as a loss in earnings. Further, there was 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 was factored into current impairment assessments. Another issue was that the practice in the United States was to quote, price, and trade callable debt securities using a model that incorporated consideration of calls (also referred to as “yield-to-worst” pricing). The ASU shortened the amortization period for certain callable debt securities held at a premium and required the premium to be amortized to the earliest call date. However, the amendments did not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The Corporation was required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at adoption. The Corporation adopted ASU 2017-08 on January 1, 2019 and adoption of the standard did not have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2016-02 - Leases (Topic 842) - The FASB issued new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees 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 ("ROU") 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 are no longer provided with a source of off-balance sheet financing. The Corporation elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Corporation to carry forward the historical lease classification. The Corporation elected to not apply ASC 842 to short-term leases (leases with a term of 12 months or less). Leases with an initial term of 12 months or less are not recorded on the balance sheet as the Corporation expenses the lease on a straight-line basis over the lease term. The Corporation also elected the practical expedient to not separate nonlease components from lease components. Variable payments are not included as part of the consideration of a lease contract and all of the Corporation's nonlease components contain variable payments; therefore, this election will not have any impact on the ROU asset or lease liability. The Corporation adopted this ASU on January 1, 2019 and recorded a ROU asset of $23.3 million and a lease liability of $23.8 million at adoption. Lease disclosures are included in NOTE 7. LEASES, in the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q. Revenue Recognition Revenue recognition guidance 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 revenue recognition guidance, 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 the guidance, 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 |
New Accounting Pronouncements N
New Accounting Pronouncements Not Yet Adopted | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements Not Yet Adopted | NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED 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 accumulated other comprehensive income 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 * 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 process 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 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. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 U.S. Government-sponsored agency securities $ 33,494 $ 210 $ 1 $ 33,703 State and municipal 633,617 18,773 532 651,858 U.S. Government-sponsored mortgage-backed securities 562,587 2,592 3,139 562,040 Corporate obligations 31 — — 31 Total available for sale 1,229,729 21,575 3,672 1,247,632 Held to maturity at March 31, 2019 U.S. Government-sponsored agency securities 22,619 — 350 22,269 State and municipal 254,520 6,682 117 261,085 U.S. Government-sponsored mortgage-backed securities 336,888 2,630 1,237 338,281 Foreign investment 1,000 — — 1,000 Total held to maturity 615,027 9,312 1,704 622,635 Total Investment Securities $ 1,844,756 $ 30,887 $ 5,376 $ 1,870,267 Amortized Gross Gross Fair Available for sale at December 31, 2018 U.S. Government-sponsored agency securities $ 13,493 $ 92 $ 3 $ 13,582 State and municipal 605,994 5,995 5,854 606,135 U.S. Government-sponsored mortgage-backed securities 530,209 634 8,396 522,447 Corporate obligations 31 — — 31 Total available for sale 1,149,727 6,721 14,253 1,142,195 Held to maturity at December 31, 2018 U.S. Government-sponsored agency securities 22,618 — 545 22,073 State and municipal 197,909 2,858 872 199,895 U.S. Government-sponsored mortgage-backed securities 268,860 713 3,323 266,250 Foreign investment 1,000 — 1 999 Total held to maturity 490,387 3,571 4,741 489,217 Total Investment Securities $ 1,640,114 $ 10,292 $ 18,994 $ 1,631,412 The change in unrealized gains/losses from December 31, 2018 to March 31, 2019 is primarily due to the changes in interest rates. The longer term points on the yield curve have declined since year-end which increases the fair value of securities held in the portfolio. The amortized cost and fair value of available for sale and held to maturity securities at March 31, 2019 and December 31, 2018 , by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at March 31, 2019: Due in one year or less $ 4,746 $ 4,764 $ 3,502 $ 3,501 Due after one through five years 3,750 3,835 49,060 48,717 Due after five through ten years 79,533 81,458 65,990 68,332 Due after ten years 579,113 595,535 159,587 163,804 667,142 685,592 278,139 284,354 U.S. Government-sponsored mortgage-backed securities 562,587 562,040 336,888 338,281 Total Investment Securities $ 1,229,729 $ 1,247,632 $ 615,027 $ 622,635 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2018 Due in one year or less $ 13,092 $ 13,144 $ 4,732 $ 4,730 Due after one through five years 5,311 5,378 49,054 48,473 Due after five through ten years 73,280 74,411 62,873 64,163 Due after ten years 527,835 526,815 104,868 105,601 619,518 619,748 221,527 222,967 U.S. Government-sponsored mortgage-backed securities 530,209 522,447 268,860 266,250 Total Investment Securities $ 1,149,727 $ 1,142,195 $ 490,387 $ 489,217 The carrying value of securities pledged as collateral, to secure borrowings and for other purposes, was $506,562,000 at March 31, 2019 , and $416,155,000 at December 31, 2018 . The book value of securities sold under agreements to repurchase amounted to $112,029,000 at March 31, 2019 , and $116,691,000 at December 31, 2018 . Gross gains on the sales and redemptions of available for sale securities for the three months ended March 31, 2019 and 2018 are shown below. Three Months Ended 2019 2018 Sales and Redemptions of Available for Sale Securities: Gross gains $ 1,140 $ 1,609 Gross losses — — 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 March 31, 2019 , and December 31, 2018 : Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at March 31, 2019 U.S. Government-sponsored agency securities $ — $ — $ 373 $ 1 $ 373 $ 1 State and municipal — — 31,483 532 31,483 532 U.S. Government-sponsored mortgage-backed securities 3,761 2 310,455 3,137 314,216 3,139 Total Temporarily Impaired Available for Sale Securities 3,761 2 342,311 3,670 346,072 3,672 Temporarily Impaired Held to Maturity Securities at March 31, 2019 U.S. Government-sponsored agency securities — — 22,269 350 22,269 350 State and municipal 310 — 13,200 117 13,510 117 U.S. Government-sponsored mortgage-backed securities 479 — 105,396 1,237 105,875 1,237 Foreign investment — — 1,000 — 1,000 — Total Temporarily Impaired Held to Maturity Securities 789 — 141,865 1,704 142,654 1,704 Total Temporarily Impaired Investment Securities $ 4,550 $ 2 $ 484,176 $ 5,374 $ 488,726 $ 5,376 Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2018 U.S. Government-sponsored agency securities $ 1,490 $ 3 $ — $ — $ 1,490 $ 3 State and municipal 234,431 3,958 38,028 1,896 272,459 5,854 U.S. Government-sponsored mortgage-backed securities 196,601 2,400 217,121 5,996 413,722 8,396 Total Temporarily Impaired Available for Sale Securities 432,522 6,361 255,149 7,892 687,671 14,253 Temporarily Impaired Held to Maturity Securities at December 31, 2018 U.S. Government-sponsored agency securities — — 22,073 545 22,073 545 State and municipal 14,952 369 16,786 503 31,738 872 U.S. Government-sponsored mortgage-backed securities 102,828 876 87,268 2,447 190,096 3,323 Foreign investment — — 999 1 999 1 Total Temporarily Impaired Held to Maturity Securities 117,780 1,245 127,126 3,496 244,906 4,741 Total Temporarily Impaired Investment Securities $ 550,302 $ 7,606 $ 382,275 $ 11,388 $ 932,577 $ 18,994 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. March 31, 2019 December 31, 2018 Investments reported at less than historical cost: Historical cost $ 494,102 $ 951,571 Fair value 488,726 932,577 Gross unrealized losses $ 5,376 $ 18,994 Percent of the Corporation's investment portfolio 26.2 % 57.1 % The Corporation's 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 and concluded no OTTI existed at March 31, 2019 . 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 March 31, 2019 . The state and municipal securities portfolio contains unrealized losses of $532,000 on thirty-three securities and $117,000 on twenty-two securities in the available for sale and held to maturity portfolios, respectively. The U.S. Government-Sponsored Agency securities portfolio contains unrealized losses of $1,000 on one security and $350,000 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 March 31, 2019 . The mortgage-backed securities portfolio contains unrealized losses of $3,139,000 on seventy-nine securities and $1,237,000 on forty-five |
Loans and Allowance
Loans and Allowance | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 , and December 31, 2018 , were $3,330,000 and $4,778,000 , respectively. The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated: March 31, 2019 December 31, 2018 Commercial and industrial loans $ 1,788,628 $ 1,726,664 Agricultural production financing and other loans to farmers 80,357 92,404 Real estate loans: Construction 542,501 545,729 Commercial and farmland 2,838,798 2,832,102 Residential 976,668 966,421 Home equity 536,208 528,157 Individuals' loans for household and other personal expenditures 108,216 99,788 Public finance and other commercial loans 427,944 433,202 Loans $ 7,299,320 $ 7,224,467 Allowance for loan losses (80,902 ) (80,552 ) Net Loans $ 7,218,418 $ 7,143,915 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 March 31, 2019 . 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 but not impaired 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 months ended March 31, 2019 and March 31, 2018 : Three Months Ended March 31, 2019 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, December 31, 2018 $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Provision for losses 236 769 105 90 1,200 Recoveries on loans 542 245 118 100 1,005 Loans charged off (366 ) (1,189 ) (161 ) (139 ) (1,855 ) Balances, March 31, 2019 $ 33,069 $ 29,434 $ 4,026 $ 14,373 $ 80,902 Three Months Ended March 31, 2018 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, December 31, 2017 $ 30,420 $ 27,343 $ 3,732 $ 13,537 $ 75,032 Provision for losses 840 84 274 1,302 2,500 Recoveries on loans 119 339 89 154 701 Loans charged off (609 ) (61 ) (199 ) (944 ) (1,813 ) Balances, March 31, 2018 $ 30,770 $ 27,705 $ 3,896 $ 14,049 $ 76,420 The tables below show the Corporation’s allowance for loan losses and loan portfolio by loan segment as of the periods indicated. At March 31, 2019 and December 31, 2018, there was no related allowance for loan losses for loans acquired with deteriorated credit quality. March 31, 2019 Commercial Commercial Consumer Residential Total Allowance Balances: Individually evaluated for impairment $ 1,172 $ 6 $ 1 $ 420 $ 1,599 Collectively evaluated for impairment 31,897 29,428 4,025 13,953 79,303 Total Allowance for Loan Losses $ 33,069 $ 29,434 $ 4,026 $ 14,373 $ 80,902 Loan Balances: Individually evaluated for impairment $ 4,889 $ 16,667 $ 15 $ 2,316 $ 23,887 Collectively evaluated for impairment 2,289,661 3,352,381 108,201 1,509,622 7,259,865 Loans acquired with deteriorated credit quality 2,379 12,251 — 938 15,568 Loans $ 2,296,929 $ 3,381,299 $ 108,216 $ 1,512,876 $ 7,299,320 December 31, 2018 Commercial Commercial Consumer Residential Total Allowance Balances: Individually evaluated for impairment $ — $ 1,435 $ 1 $ 436 $ 1,872 Collectively evaluated for impairment 32,657 28,174 3,963 13,886 78,680 Total Allowance for Loan Losses $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Loan Balances: Individually evaluated for impairment $ 1,838 $ 17,756 $ 18 $ 2,413 $ 22,025 Collectively evaluated for impairment 2,248,330 3,347,686 99,770 1,490,872 7,186,658 Loans acquired with deteriorated credit quality 2,102 12,389 — 1,293 15,784 Loans $ 2,252,270 $ 3,377,831 $ 99,788 $ 1,494,578 $ 7,224,467 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 $1,520,000 and $1,541,000 at March 31, 2019 and December 31, 2018, 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: March 31, 2019 December 31, 2018 Commercial and industrial loans $ 2,498 $ 1,803 Agriculture production financing and other loans to farmers 2,910 679 Real estate loans: Construction 7,533 8,667 Commercial and farmland 8,201 8,156 Residential 4,473 4,966 Home equity 1,963 1,481 Individuals' loans for household and other personal expenditures 18 42 Public finance and other commercial loans 353 354 Total $ 27,949 $ 26,148 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: March 31, 2019 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 1,920 $ 1,626 $ — Agriculture production financing and other loans to farmers 807 792 — Real estate Loans: Construction 9,330 7,524 — Commercial and farmland 10,838 8,973 — Residential 118 99 — Home equity 48 48 — Public finance and other commercial loans 353 353 — Total $ 23,414 $ 19,415 $ — Impaired loans with related allowance: Agriculture production financing and other loans to farmers $ 2,167 $ 2,117 $ 1,172 Real estate Loans: Commercial and farmland 171 171 6 Residential 1,843 1,815 348 Home equity 371 354 72 Individuals' loans for household and other personal expenditures 15 15 1 Total $ 4,567 $ 4,472 $ 1,599 Total Impaired Loans $ 27,981 $ 23,887 $ 1,599 December 31, 2018 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 828 $ 806 $ — Agriculture production financing and other loans to farmers 679 679 — Real estate Loans: Construction 1,352 614 — Commercial and farmland 11,176 8,994 — Residential 118 100 — Home equity 49 48 — Public finance and other commercial loans 353 353 — Total $ 14,555 $ 11,594 $ — Impaired loans with related allowance: Real estate Loans: Construction $ 7,978 $ 7,977 $ 1,429 Commercial and farmland 171 171 6 Residential 1,958 1,907 362 Home equity 376 358 74 Individuals' loans for household and other personal expenditures 18 18 1 Total $ 10,501 $ 10,431 $ 1,872 Total Impaired Loans $ 25,056 $ 22,025 $ 1,872 Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Average Interest Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 1,641 $ — $ 1,845 $ — Agriculture production financing and other loans to farmers 799 — 640 — Real estate Loans: Construction 8,270 — — — Commercial and farmland 8,999 39 14,450 48 Residential 38 1 759 6 Home equity 48 — 8 — Individuals' loans for household and other personal expenditures 1 — 12 — Public finance and other commercial loans 353 — — — Total $ 20,149 $ 40 $ 17,714 $ 54 Impaired loans with related allowance: Commercial and industrial loans $ — $ — $ 465 $ — Agriculture production financing and other loans to farmers 2,150 — — — Real estate Loans: Construction — — 1,352 — Commercial and farmland 171 — 767 — Residential 1,884 15 1,709 12 Home equity 356 3 305 2 Individuals' loans for household and other personal expenditures 15 — — — Total $ 4,576 $ 18 $ 4,598 $ 14 Total Impaired Loans $ 24,725 $ 58 $ 22,312 $ 68 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. March 31, 2019 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,692,964 $ 59,119 $ 36,545 $ — $ — $ — $ — $ 1,788,628 Agriculture production financing and other loans to farmers 64,022 6,304 10,031 — — — — 80,357 Real estate Loans: Construction 507,086 949 9,063 — — 25,403 — 542,501 Commercial and farmland 2,640,736 96,353 99,363 — — 2,346 — 2,838,798 Residential 167,197 4,747 2,992 — — 797,420 4,312 976,668 Home equity 24,534 489 402 — — 508,969 1,814 536,208 Individuals' loans for household and other personal expenditures — — — — — 108,186 30 108,216 Public finance and other commercial loans 427,591 — 353 — — — — 427,944 Loans $ 5,524,130 $ 167,961 $ 158,749 $ — $ — $ 1,442,324 $ 6,156 $ 7,299,320 December 31, 2018 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,660,879 $ 23,246 $ 42,539 $ — $ — $ — $ — $ 1,726,664 Agriculture production financing and other loans to farmers 78,446 5,966 7,992 — — — — 92,404 Real estate Loans: Construction 492,358 2,185 24,224 — — 25,419 1,543 545,729 Commercial and farmland 2,669,491 76,037 84,288 — — 2,285 1 2,832,102 Residential 170,075 7,373 2,076 — — 782,080 4,817 966,421 Home equity 24,653 535 457 — — 500,996 1,516 528,157 Individuals' loans for household and other personal expenditures — — — — — 99,741 47 99,788 Public finance and other commercial loans 432,849 — 353 — — — — 433,202 Loans $ 5,528,751 $ 115,342 $ 161,929 $ — $ — $ 1,410,521 $ 7,924 $ 7,224,467 The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, as of March 31, 2019 , and December 31, 2018 : March 31, 2019 Current 30-59 Days 60-89 Days Loans 90 Days or More Past Due And Accruing Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,784,771 $ 977 $ 382 $ — $ 2,498 $ 3,857 $ 1,788,628 Agriculture production financing and other loans to farmers 77,435 12 — — 2,910 2,922 80,357 Real estate loans: Construction 534,904 64 — — 7,533 7,597 542,501 Commercial and farmland 2,818,380 12,095 — 122 8,201 20,418 2,838,798 Residential 965,990 5,666 539 — 4,473 10,678 976,668 Home equity 531,874 1,646 725 — 1,963 4,334 536,208 Individuals' loans for household and other personal expenditures 107,792 324 70 12 18 424 108,216 Public finance and other commercial loans 427,462 129 — — 353 482 427,944 Loans $ 7,248,608 $ 20,913 $ 1,716 $ 134 $ 27,949 $ 50,712 $ 7,299,320 December 31, 2018 Current 30-59 Days 60-89 Days Loans 90 Days or More Past Due And Accruing Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,723,337 $ 1,093 $ 182 $ 249 $ 1,803 $ 3,327 $ 1,726,664 Agriculture production financing and other loans to farmers 89,440 2,285 — — 679 2,964 92,404 Real estate loans: Construction 535,520 64 — 1,478 8,667 10,209 545,729 Commercial and farmland 2,822,515 1,253 178 — 8,156 9,587 2,832,102 Residential 959,252 1,756 430 17 4,966 7,169 966,421 Home equity 524,198 2,164 207 107 1,481 3,959 528,157 Individuals' loans for household and other personal expenditures 99,499 179 64 4 42 289 99,788 Public finance and other commercial loans 432,848 — — — 354 354 433,202 Loans $ 7,186,609 $ 8,794 $ 1,061 $ 1,855 $ 26,148 $ 37,858 $ 7,224,467 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 March 31, 2019 Pre-Modification Post-Modification Number Real estate loans: Residential $ 90 $ 90 1 Total $ 90 $ 90 1 Three Months Ended March 31, 2018 Pre-Modification Post-Modification Number Real estate loans: Residential $ 214 $ 222 5 Home equity 16 16 2 Individuals' loans for household and other personal expenditures 7 8 1 Total $ 237 $ 246 8 The following tables summarize the recorded investment of troubled debt restructures as of March 31, 2019 and 2018 , by modification type, that occurred during the periods indicated: Three Months Ended March 31, 2019 Term Rate Combination Total Real estate loans: Residential $ — $ 90 $ — $ 90 Total $ — $ 90 $ — $ 90 Three Months Ended March 31, 2018 Term Rate Combination Total Real estate loans: Residential $ 38 $ 74 $ 106 $ 218 Home equity 16 10 — 26 Individuals loans for household and other personal expenditures — 7 — 7 Total $ 54 $ 91 $ 106 $ 251 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 March 31, 2019 . The same loan classification made up 91 percent of the post-modification balance of troubled debt restructured loans made in the three months ended March 31, 2018. The following tables summarize troubled debt restructures that occurred during the twelve months ended March 31, 2019 and 2018, that subsequently defaulted during the period indicated and remained in default at period end. A loan is considered in default if it is 30-days or more past due. Three Months Ended March 31, 2019 Number of Loans Recorded Balance Real estate loans: Residential 1 $ 63 Total 1 $ 63 Three Months Ended March 31, 2018 Number of Loans Recorded Balance Real estate loans: Commercial and farmland 1 $ 324 Residential 3 108 Total 4 $ 432 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 $646,000 and $800,000 at March 31, 2019 and December 31, 2018, respectively. |
Purchased Credit Impaired Loans
Purchased Credit Impaired Loans | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 was $17.1 million and $17.3 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 March 31, 2019 Three Months Ended March 31, 2018 Beginning balance $ 2,143 $ 2,890 Additions — — Accretion (580 ) (510 ) Reclassification from nonaccretable 501 295 Disposals — — Ending balance $ 2,064 $ 2,675 There were no loans acquired during the three months ended March 31, 2019 and 2018, for which it was probable that all contractually required payments would not be collected. |
Other Intangibles
Other Intangibles | 3 Months Ended |
Mar. 31, 2019 | |
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. The carrying basis and accumulated amortization of recognized core deposit intangibles and other intangibles are noted below. March 31, 2019 December 31, 2018 Gross carrying amount $ 85,869 $ 85,869 Accumulated amortization (62,968 ) (61,440 ) Total other intangibles $ 22,901 $ 24,429 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 2019 $ 3,641 2020 3,632 2021 3,427 2022 3,325 2023 3,175 After 2023 5,701 $ 22,901 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Corporation adopted ASU No. 2016-02 - Leases (Topic 842) , as amended, as of January 1, 2019 for certain retail branches, office space, land and equipment. The Corporation elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Corporation to carry forward the historical lease classification. Operating leases are included in the operating lease right-of use ("ROU") asset, which is included in other assets and the lease liability is included in other liabilities in our condensed balance sheets. The Corporation does not have any finance leases. ROU assets represent the Corporation's right to use an underlying asset for the lease term and lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Corporation's leases do not provide an implicit rate, the Corporation typically uses its incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Lease terms may include options to extend or terminate the lease. The exercise of such lease renewal options is at the Corporation's sole discretion and is not included in the present value of lease obligations unless it is reasonably certain that the option will be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of the Corporation's lease agreements include rental payments adjusted periodically for inflation. The Corporation's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Supplemental balance sheet information related to leases is presented in the table below as of March 31, 2019. March 31, 2019 Operating lease assets $ 22,576 Total lease assets $ 22,576 Operating lease liabilities $ 23,175 Total Lease liabilities $ 23,175 Weighted average remaining lease term (years) Operating leases 9.4 Weighted average discount rate Operating leases 3.39 % The table below presents the components of lease expense for the periods indicated. Three Months Ended 2019 Lease Cost: Operating lease cost $ 892 Short-term lease cost 43 Variable lease cost 262 Total lease cost $ 1,197 Supplemental cash flow information related to leases is presented in the table below. Maturity of lease liabilities Operating Leases Remaining 2019 $ 2,601 2020 3,343 2021 3,097 2022 2,982 2023 2,611 2024 and after 12,706 Total lease payments $ 27,340 Less: Present value discount 4,165 Present value of lease liabilities $ 23,175 Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 753 ROU assets obtained in exchange for new operating lease liabilities $ 23,324 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 , 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, 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. 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 2019 , $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 months ended March 31, 2019 and 2018 , 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 $253,000 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 March 31, 2019 , the notional amount of customer-facing swaps was approximately $486,081,000 . 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 March 31, 2019 , and December 31, 2018 . Asset Derivatives Liability Derivatives March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Balance Fair Balance Fair Balance Fair Balance Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ 35 Other Assets $ 135 Other Liabilities $ 972 Other Liabilities $ 688 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 14,194 Other Assets $ 11,948 Other Liabilities $ 14,194 Other Liabilities $ 11,948 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 March 31, 2019 March 31, 2018 Interest Rate Products $ (391 ) $ 508 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 months ended March 31, 2019 and 2018 . 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 $ (59 ) $ (170 ) 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 March 31, 2019 , the termination value of derivatives in a net liability position related to these agreements was $10,869,000 . As of March 31, 2019 , the Corporation has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $13,745,000 . If the Corporation had breached any of these provisions at March 31, 2019 |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
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 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 March 31, 2019 , and December 31, 2018 . Fair Value Measurements Using: March 31, 2019 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Government-sponsored agency securities $ 33,703 $ — $ 33,703 $ — State and municipal 651,858 — 648,957 2,901 U.S. Government-sponsored mortgage-backed securities 562,040 — 562,036 4 Corporate obligations 31 — — 31 Interest rate swap asset 14,194 — 14,194 — Interest rate cap 35 — 35 — Interest rate swap liability 15,166 — 15,166 — Fair Value Measurements Using: December 31, 2018 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: U.S. Government-sponsored agency securities $ 13,582 $ — $ 13,582 $ — State and municipal 606,135 — 602,842 3,293 U.S. Government-sponsored mortgage-backed securities 522,447 — 522,443 4 Corporate obligations 31 — — 31 Interest rate swap asset 11,948 — 11,948 — Interest rate cap 135 — 135 — Interest rate swap liability 12,636 — 12,636 — There were no gains or losses included in earnings that were attributable to the changes in unrealized gains or losses related to assets or liabilities held at March 31, 2019 or December 31, 2018 . Level 3 Reconciliation The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for the three months ended March 31, 2019 and 2018 . Available for Sale Securities Three Months Ended March 31, 2019 March 31, 2018 Balance at beginning of the period $ 3,328 $ 3,978 Included in other comprehensive income 43 (25 ) Principal payments (435 ) 13 Ending balance $ 2,936 $ 3,966 Transfers Between Levels There were no transfers in or out of Level 3 for the three months ended March 31, 2019 and 2018 . 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 March 31, 2019 , and December 31, 2018 . Fair Value Measurements Using March 31, 2019 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 11,728 $ — $ — $ 11,728 Other real estate owned 112 — — 112 Fair Value Measurements Using December 31, 2018 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 11,866 $ — $ — $ 11,866 Other real estate owned 657 — — 657 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 2018 and 2019 , 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 March 31, 2019 and December 31, 2018 . March 31, 2019 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 2,901 Discounted cash flow Maturity/Call date 1 month to 15 yrs US Muni BQ curve A- to BBB- Discount rate 2% - 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) $ 11,728 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (5%) Other real estate owned $ 112 Appraisals Discount to reflect current market conditions 0% - 51% (51%) December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 3,293 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) $ 11,866 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (6%) Other real estate owned $ 657 Appraisals Discount to reflect current market conditions 0% - 10% (4%) 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 and 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 March 31, 2019 , and December 31, 2018 . March 31, 2019 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 115,878 $ 115,878 $ — $ — Interest-bearing time deposits 70,672 70,672 — — Investment securities available for sale 1,247,632 — 1,244,697 2,936 Investment securities held to maturity 615,027 — 615,182 7,453 Loans held for sale 3,330 — 3,330 — Loans 7,218,418 — — 7,140,432 Federal Home Loan Bank stock 24,588 — 24,588 — Interest rate swap and cap asset 14,229 — 14,229 — Interest receivable 40,931 — 40,931 — Liabilities: Deposits $ 8,047,798 $ 6,439,422 $ 1,576,603 $ — Borrowings: Federal funds purchased 20,000 — 20,000 — Securities sold under repurchase agreements 111,783 — 111,742 — Federal Home Loan Bank advances 345,013 — 342,283 — Subordinated debentures and term loans 138,519 — 129,020 — Interest rate swap liability 15,166 — 15,166 — Interest payable 7,313 — 7,313 — December 31, 2018 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 139,247 $ 139,247 $ — $ — Interest-bearing time deposits 36,963 36,963 — — Investment securities available for sale 1,142,195 — 1,138,867 3,328 Investment securities held to maturity 490,387 — 481,377 7,840 Loans held for sale 4,778 — 4,778 — Loans 7,143,915 — — 7,004,193 Federal Home Loan Bank stock 24,588 — 24,588 — Interest rate swap and cap asset 12,083 — 12,083 — Interest receivable 40,881 — 40,881 — Liabilities: Deposits $ 7,754,593 $ 6,267,879 $ 1,464,129 $ — Borrowings: Federal funds purchased 104,000 — 104,000 — Securities sold under repurchase agreements 113,512 — 113,437 — Federal Home Loan Bank advances 314,986 — 318,728 — Subordinated debentures and term loans 138,463 — 127,298 — Interest rate swap liability 12,636 — 12,636 — Interest payable 5,607 — 5,607 — |
Transfers Accounted for as Secu
Transfers Accounted for as Secured Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 were: March 31, 2019 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 $ 110,760 $ — $ 1,023 $ — $ 111,783 December 31, 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 $ 104,883 $ 1,014 $ 7,615 $ — $ 113,512 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and 2018 : 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, 2018 $ (6,343 ) $ (559 ) $ (14,520 ) $ (21,422 ) Other comprehensive income before reclassifications 20,990 (309 ) — 20,681 Amounts reclassified from accumulated other comprehensive income (901 ) 47 — (854 ) Period change 20,089 (262 ) — 19,827 Balance at March 31, 2019 $ 13,746 $ (821 ) $ (14,520 ) $ (1,595 ) Balance at December 31, 2017 $ 8,970 $ (1,125 ) $ (10,753 ) $ (2,908 ) Other comprehensive income before reclassifications (17,698 ) 644 — (17,054 ) Amounts reclassified from accumulated other comprehensive income (1,271 ) 134 — (1,137 ) Period change (18,969 ) 778 — (18,191 ) Reclassification adjustment under ASU 2018-02 1,932 (242 ) (2,316 ) (626 ) Balance at March 31, 2018 $ (8,067 ) $ (589 ) $ (13,069 ) $ (21,725 ) 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 months ended March 31, 2019 and 2018 . Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended March 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2019 2018 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 1,140 $ 1,609 Other income - net realized gains on sales of available for sale securities Related income tax expense (239 ) (338 ) Income tax expense $ 901 $ 1,271 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (59 ) $ (170 ) Interest expense - subordinated debentures and term loans Related income tax benefit 12 36 Income tax expense $ (47 ) $ (134 ) Total reclassifications for the period, net of tax $ 854 $ 1,137 (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) |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
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 3 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") were credited to non-employee directors who elected to defer payment of compensation under the Corporation's 2008 Equity Compensation Plan for Non-employee Directors which expired in 2018. DSUs credited are equal to the restricted shares that the non-employee director would have received under the plan. As of March 31, 2019 , the Corporation did no t have any 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 months ended March 31, 2019 was $981,000 , compared to $875,000 for the three months ended March 31, 2018 . 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 1.7 percent for the three months ended March 31, 2019 based on historical experience. The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. Three Months Ended 2019 2018 Stock and ESPP Options Pre-tax compensation expense $ 11 $ 24 Income tax benefit (16 ) (59 ) Stock and ESPP option expense, net of income taxes $ (5 ) $ (35 ) Restricted Stock Awards Pre-tax compensation expense $ 970 $ 851 Income tax benefit (540 ) (566 ) Restricted stock awards expense, net of income taxes $ 430 $ 285 Total Share-Based Compensation Pre-tax compensation expense $ 981 $ 875 Income tax benefit (556 ) (625 ) Total share-based compensation expense, net of income taxes $ 425 $ 250 As of March 31, 2019 , unrecognized compensation expense related to RSAs was $6,066,000 and is expected to be recognized over a weighted-average period of 1.72 years. The Corporation did no t have any unrecognized compensation expense related to stock options as of March 31, 2019 . Stock option activity under the Corporation's stock option plans as of March 31, 2019 and changes during the three months ended March 31, 2019 , were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2019 76,300 $ 12.40 Exercised (3,700 ) $ 10.88 Cancelled — $ — Outstanding March 31, 2019 72,600 $ 12.48 2.73 $ 1,769,628 Vested and Expected to Vest at March 31, 2019 72,600 $ 12.48 2.73 $ 1,769,628 Exercisable at March 31, 2019 72,600 $ 12.48 2.73 $ 1,769,628 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 three months of 2019 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 March 31, 2019 . 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 three months ended March 31, 2019 and 2018 was $97,000 and $473,000 , respectively. Cash receipts of stock options exercised during this same period were $40,000 and $535,000 , respectively. The following table summarizes information on unvested RSAs outstanding as of March 31, 2019 : Number of Shares Weighted-Average Unvested RSAs at January 1, 2019 344,362 $ 36.80 Granted 700 $ 37.44 Vested (103,660 ) $ 23.41 Forfeited (600 ) $ 35.62 Unvested RSAs at March 31, 2019 240,802 $ 42.57 The grant date fair value of ESPP options was estimated at the beginning of the January 1, 2019 quarterly offering period of approximately $11,000 . The ESPP options vested during the three months ending March 31, 2019 , leaving no unrecognized compensation expense related to unvested ESPP options at March 31, 2019 |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 : Three Months Ended 2019 2018 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 21% $ 9,609 $ 9,091 Tax-exempt interest income (2,267 ) (2,015 ) Share-based compensation (350 ) (441 ) Tax-exempt earnings and gains on life insurance (207 ) (247 ) Tax credits (78 ) 39 Other 234 184 Actual Tax Expense $ 6,941 $ 6,611 Effective Tax Rate 15.2 % 15.3 % |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 2018 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 38,817 49,369,024 $ 0.79 $ 36,679 49,192,647 $ 0.75 Effect of potentially dilutive stock options and restricted stock awards 171,820 235,325 Diluted net income per share $ 38,817 49,540,844 $ 0.78 $ 36,679 49,427,972 $ 0.74 For the three months ended March 31, 2019 and 2018 , there were no |
General Litigation and Regulato
General Litigation and Regulatory Examinations | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation and Regulatory Examinations | GENERAL LITIGATION AND REGULATORY EXAMINATIONS |
Pending Merger
Pending Merger | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Pending Merger | PENDING 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 (the "Merger Agreement"), pursuant to which MBT will, subject to the terms and conditions of the Merger Agreement, merge with and into the Corporation (the "Holding Company Merger"), whereupon the separate corporate existence of MBT will cease and the Corporation will survive. Immediately following the Holding Company Merger, MBT's wholly-owned subsidiary, Monroe Bank & Trust, will be merged with and into the Bank (the "Bank Merger" and, together with the Holding Company Merger, the "Mergers"), 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 Holding Company Merger. MBT's total assets as of March 31, 2019 were $1.3 billion . |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 U.S. Government-sponsored agency securities $ 33,494 $ 210 $ 1 $ 33,703 State and municipal 633,617 18,773 532 651,858 U.S. Government-sponsored mortgage-backed securities 562,587 2,592 3,139 562,040 Corporate obligations 31 — — 31 Total available for sale 1,229,729 21,575 3,672 1,247,632 Held to maturity at March 31, 2019 U.S. Government-sponsored agency securities 22,619 — 350 22,269 State and municipal 254,520 6,682 117 261,085 U.S. Government-sponsored mortgage-backed securities 336,888 2,630 1,237 338,281 Foreign investment 1,000 — — 1,000 Total held to maturity 615,027 9,312 1,704 622,635 Total Investment Securities $ 1,844,756 $ 30,887 $ 5,376 $ 1,870,267 Amortized Gross Gross Fair Available for sale at December 31, 2018 U.S. Government-sponsored agency securities $ 13,493 $ 92 $ 3 $ 13,582 State and municipal 605,994 5,995 5,854 606,135 U.S. Government-sponsored mortgage-backed securities 530,209 634 8,396 522,447 Corporate obligations 31 — — 31 Total available for sale 1,149,727 6,721 14,253 1,142,195 Held to maturity at December 31, 2018 U.S. Government-sponsored agency securities 22,618 — 545 22,073 State and municipal 197,909 2,858 872 199,895 U.S. Government-sponsored mortgage-backed securities 268,860 713 3,323 266,250 Foreign investment 1,000 — 1 999 Total held to maturity 490,387 3,571 4,741 489,217 Total Investment Securities $ 1,640,114 $ 10,292 $ 18,994 $ 1,631,412 |
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 March 31, 2019 and December 31, 2018 , by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at March 31, 2019: Due in one year or less $ 4,746 $ 4,764 $ 3,502 $ 3,501 Due after one through five years 3,750 3,835 49,060 48,717 Due after five through ten years 79,533 81,458 65,990 68,332 Due after ten years 579,113 595,535 159,587 163,804 667,142 685,592 278,139 284,354 U.S. Government-sponsored mortgage-backed securities 562,587 562,040 336,888 338,281 Total Investment Securities $ 1,229,729 $ 1,247,632 $ 615,027 $ 622,635 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2018 Due in one year or less $ 13,092 $ 13,144 $ 4,732 $ 4,730 Due after one through five years 5,311 5,378 49,054 48,473 Due after five through ten years 73,280 74,411 62,873 64,163 Due after ten years 527,835 526,815 104,868 105,601 619,518 619,748 221,527 222,967 U.S. Government-sponsored mortgage-backed securities 530,209 522,447 268,860 266,250 Total Investment Securities $ 1,149,727 $ 1,142,195 $ 490,387 $ 489,217 |
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 months ended March 31, 2019 and 2018 are shown below. Three Months Ended 2019 2018 Sales and Redemptions of Available for Sale Securities: Gross gains $ 1,140 $ 1,609 Gross losses — — |
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 March 31, 2019 , and December 31, 2018 : Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at March 31, 2019 U.S. Government-sponsored agency securities $ — $ — $ 373 $ 1 $ 373 $ 1 State and municipal — — 31,483 532 31,483 532 U.S. Government-sponsored mortgage-backed securities 3,761 2 310,455 3,137 314,216 3,139 Total Temporarily Impaired Available for Sale Securities 3,761 2 342,311 3,670 346,072 3,672 Temporarily Impaired Held to Maturity Securities at March 31, 2019 U.S. Government-sponsored agency securities — — 22,269 350 22,269 350 State and municipal 310 — 13,200 117 13,510 117 U.S. Government-sponsored mortgage-backed securities 479 — 105,396 1,237 105,875 1,237 Foreign investment — — 1,000 — 1,000 — Total Temporarily Impaired Held to Maturity Securities 789 — 141,865 1,704 142,654 1,704 Total Temporarily Impaired Investment Securities $ 4,550 $ 2 $ 484,176 $ 5,374 $ 488,726 $ 5,376 Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2018 U.S. Government-sponsored agency securities $ 1,490 $ 3 $ — $ — $ 1,490 $ 3 State and municipal 234,431 3,958 38,028 1,896 272,459 5,854 U.S. Government-sponsored mortgage-backed securities 196,601 2,400 217,121 5,996 413,722 8,396 Total Temporarily Impaired Available for Sale Securities 432,522 6,361 255,149 7,892 687,671 14,253 Temporarily Impaired Held to Maturity Securities at December 31, 2018 U.S. Government-sponsored agency securities — — 22,073 545 22,073 545 State and municipal 14,952 369 16,786 503 31,738 872 U.S. Government-sponsored mortgage-backed securities 102,828 876 87,268 2,447 190,096 3,323 Foreign investment — — 999 1 999 1 Total Temporarily Impaired Held to Maturity Securities 117,780 1,245 127,126 3,496 244,906 4,741 Total Temporarily Impaired Investment Securities $ 550,302 $ 7,606 $ 382,275 $ 11,388 $ 932,577 $ 18,994 |
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. March 31, 2019 December 31, 2018 Investments reported at less than historical cost: Historical cost $ 494,102 $ 951,571 Fair value 488,726 932,577 Gross unrealized losses $ 5,376 $ 18,994 Percent of the Corporation's investment portfolio 26.2 % 57.1 % |
Loans and Allowance (Tables)
Loans and Allowance (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 Commercial and industrial loans $ 1,788,628 $ 1,726,664 Agricultural production financing and other loans to farmers 80,357 92,404 Real estate loans: Construction 542,501 545,729 Commercial and farmland 2,838,798 2,832,102 Residential 976,668 966,421 Home equity 536,208 528,157 Individuals' loans for household and other personal expenditures 108,216 99,788 Public finance and other commercial loans 427,944 433,202 Loans $ 7,299,320 $ 7,224,467 Allowance for loan losses (80,902 ) (80,552 ) Net Loans $ 7,218,418 $ 7,143,915 |
Changes in allowance for loan losses | The following tables summarize changes in the allowance for loan losses by loan segment for the three months ended March 31, 2019 and March 31, 2018 : Three Months Ended March 31, 2019 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, December 31, 2018 $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Provision for losses 236 769 105 90 1,200 Recoveries on loans 542 245 118 100 1,005 Loans charged off (366 ) (1,189 ) (161 ) (139 ) (1,855 ) Balances, March 31, 2019 $ 33,069 $ 29,434 $ 4,026 $ 14,373 $ 80,902 Three Months Ended March 31, 2018 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, December 31, 2017 $ 30,420 $ 27,343 $ 3,732 $ 13,537 $ 75,032 Provision for losses 840 84 274 1,302 2,500 Recoveries on loans 119 339 89 154 701 Loans charged off (609 ) (61 ) (199 ) (944 ) (1,813 ) Balances, March 31, 2018 $ 30,770 $ 27,705 $ 3,896 $ 14,049 $ 76,420 |
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. At March 31, 2019 and December 31, 2018, there was no related allowance for loan losses for loans acquired with deteriorated credit quality. March 31, 2019 Commercial Commercial Consumer Residential Total Allowance Balances: Individually evaluated for impairment $ 1,172 $ 6 $ 1 $ 420 $ 1,599 Collectively evaluated for impairment 31,897 29,428 4,025 13,953 79,303 Total Allowance for Loan Losses $ 33,069 $ 29,434 $ 4,026 $ 14,373 $ 80,902 Loan Balances: Individually evaluated for impairment $ 4,889 $ 16,667 $ 15 $ 2,316 $ 23,887 Collectively evaluated for impairment 2,289,661 3,352,381 108,201 1,509,622 7,259,865 Loans acquired with deteriorated credit quality 2,379 12,251 — 938 15,568 Loans $ 2,296,929 $ 3,381,299 $ 108,216 $ 1,512,876 $ 7,299,320 December 31, 2018 Commercial Commercial Consumer Residential Total Allowance Balances: Individually evaluated for impairment $ — $ 1,435 $ 1 $ 436 $ 1,872 Collectively evaluated for impairment 32,657 28,174 3,963 13,886 78,680 Total Allowance for Loan Losses $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Loan Balances: Individually evaluated for impairment $ 1,838 $ 17,756 $ 18 $ 2,413 $ 22,025 Collectively evaluated for impairment 2,248,330 3,347,686 99,770 1,490,872 7,186,658 Loans acquired with deteriorated credit quality 2,102 12,389 — 1,293 15,784 Loans $ 2,252,270 $ 3,377,831 $ 99,788 $ 1,494,578 $ 7,224,467 |
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: March 31, 2019 December 31, 2018 Commercial and industrial loans $ 2,498 $ 1,803 Agriculture production financing and other loans to farmers 2,910 679 Real estate loans: Construction 7,533 8,667 Commercial and farmland 8,201 8,156 Residential 4,473 4,966 Home equity 1,963 1,481 Individuals' loans for household and other personal expenditures 18 42 Public finance and other commercial loans 353 354 Total $ 27,949 $ 26,148 |
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: March 31, 2019 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 1,920 $ 1,626 $ — Agriculture production financing and other loans to farmers 807 792 — Real estate Loans: Construction 9,330 7,524 — Commercial and farmland 10,838 8,973 — Residential 118 99 — Home equity 48 48 — Public finance and other commercial loans 353 353 — Total $ 23,414 $ 19,415 $ — Impaired loans with related allowance: Agriculture production financing and other loans to farmers $ 2,167 $ 2,117 $ 1,172 Real estate Loans: Commercial and farmland 171 171 6 Residential 1,843 1,815 348 Home equity 371 354 72 Individuals' loans for household and other personal expenditures 15 15 1 Total $ 4,567 $ 4,472 $ 1,599 Total Impaired Loans $ 27,981 $ 23,887 $ 1,599 December 31, 2018 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 828 $ 806 $ — Agriculture production financing and other loans to farmers 679 679 — Real estate Loans: Construction 1,352 614 — Commercial and farmland 11,176 8,994 — Residential 118 100 — Home equity 49 48 — Public finance and other commercial loans 353 353 — Total $ 14,555 $ 11,594 $ — Impaired loans with related allowance: Real estate Loans: Construction $ 7,978 $ 7,977 $ 1,429 Commercial and farmland 171 171 6 Residential 1,958 1,907 362 Home equity 376 358 74 Individuals' loans for household and other personal expenditures 18 18 1 Total $ 10,501 $ 10,431 $ 1,872 Total Impaired Loans $ 25,056 $ 22,025 $ 1,872 Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Average Interest Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 1,641 $ — $ 1,845 $ — Agriculture production financing and other loans to farmers 799 — 640 — Real estate Loans: Construction 8,270 — — — Commercial and farmland 8,999 39 14,450 48 Residential 38 1 759 6 Home equity 48 — 8 — Individuals' loans for household and other personal expenditures 1 — 12 — Public finance and other commercial loans 353 — — — Total $ 20,149 $ 40 $ 17,714 $ 54 Impaired loans with related allowance: Commercial and industrial loans $ — $ — $ 465 $ — Agriculture production financing and other loans to farmers 2,150 — — — Real estate Loans: Construction — — 1,352 — Commercial and farmland 171 — 767 — Residential 1,884 15 1,709 12 Home equity 356 3 305 2 Individuals' loans for household and other personal expenditures 15 — — — Total $ 4,576 $ 18 $ 4,598 $ 14 Total Impaired Loans $ 24,725 $ 58 $ 22,312 $ 68 |
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. March 31, 2019 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,692,964 $ 59,119 $ 36,545 $ — $ — $ — $ — $ 1,788,628 Agriculture production financing and other loans to farmers 64,022 6,304 10,031 — — — — 80,357 Real estate Loans: Construction 507,086 949 9,063 — — 25,403 — 542,501 Commercial and farmland 2,640,736 96,353 99,363 — — 2,346 — 2,838,798 Residential 167,197 4,747 2,992 — — 797,420 4,312 976,668 Home equity 24,534 489 402 — — 508,969 1,814 536,208 Individuals' loans for household and other personal expenditures — — — — — 108,186 30 108,216 Public finance and other commercial loans 427,591 — 353 — — — — 427,944 Loans $ 5,524,130 $ 167,961 $ 158,749 $ — $ — $ 1,442,324 $ 6,156 $ 7,299,320 December 31, 2018 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,660,879 $ 23,246 $ 42,539 $ — $ — $ — $ — $ 1,726,664 Agriculture production financing and other loans to farmers 78,446 5,966 7,992 — — — — 92,404 Real estate Loans: Construction 492,358 2,185 24,224 — — 25,419 1,543 545,729 Commercial and farmland 2,669,491 76,037 84,288 — — 2,285 1 2,832,102 Residential 170,075 7,373 2,076 — — 782,080 4,817 966,421 Home equity 24,653 535 457 — — 500,996 1,516 528,157 Individuals' loans for household and other personal expenditures — — — — — 99,741 47 99,788 Public finance and other commercial loans 432,849 — 353 — — — — 433,202 Loans $ 5,528,751 $ 115,342 $ 161,929 $ — $ — $ 1,410,521 $ 7,924 $ 7,224,467 |
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 March 31, 2019 , and December 31, 2018 : March 31, 2019 Current 30-59 Days 60-89 Days Loans 90 Days or More Past Due And Accruing Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,784,771 $ 977 $ 382 $ — $ 2,498 $ 3,857 $ 1,788,628 Agriculture production financing and other loans to farmers 77,435 12 — — 2,910 2,922 80,357 Real estate loans: Construction 534,904 64 — — 7,533 7,597 542,501 Commercial and farmland 2,818,380 12,095 — 122 8,201 20,418 2,838,798 Residential 965,990 5,666 539 — 4,473 10,678 976,668 Home equity 531,874 1,646 725 — 1,963 4,334 536,208 Individuals' loans for household and other personal expenditures 107,792 324 70 12 18 424 108,216 Public finance and other commercial loans 427,462 129 — — 353 482 427,944 Loans $ 7,248,608 $ 20,913 $ 1,716 $ 134 $ 27,949 $ 50,712 $ 7,299,320 December 31, 2018 Current 30-59 Days 60-89 Days Loans 90 Days or More Past Due And Accruing Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,723,337 $ 1,093 $ 182 $ 249 $ 1,803 $ 3,327 $ 1,726,664 Agriculture production financing and other loans to farmers 89,440 2,285 — — 679 2,964 92,404 Real estate loans: Construction 535,520 64 — 1,478 8,667 10,209 545,729 Commercial and farmland 2,822,515 1,253 178 — 8,156 9,587 2,832,102 Residential 959,252 1,756 430 17 4,966 7,169 966,421 Home equity 524,198 2,164 207 107 1,481 3,959 528,157 Individuals' loans for household and other personal expenditures 99,499 179 64 4 42 289 99,788 Public finance and other commercial loans 432,848 — — — 354 354 433,202 Loans $ 7,186,609 $ 8,794 $ 1,061 $ 1,855 $ 26,148 $ 37,858 $ 7,224,467 |
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 March 31, 2019 Pre-Modification Post-Modification Number Real estate loans: Residential $ 90 $ 90 1 Total $ 90 $ 90 1 Three Months Ended March 31, 2018 Pre-Modification Post-Modification Number Real estate loans: Residential $ 214 $ 222 5 Home equity 16 16 2 Individuals' loans for household and other personal expenditures 7 8 1 Total $ 237 $ 246 8 The following tables summarize the recorded investment of troubled debt restructures as of March 31, 2019 and 2018 , by modification type, that occurred during the periods indicated: Three Months Ended March 31, 2019 Term Rate Combination Total Real estate loans: Residential $ — $ 90 $ — $ 90 Total $ — $ 90 $ — $ 90 Three Months Ended March 31, 2018 Term Rate Combination Total Real estate loans: Residential $ 38 $ 74 $ 106 $ 218 Home equity 16 10 — 26 Individuals loans for household and other personal expenditures — 7 — 7 Total $ 54 $ 91 $ 106 $ 251 |
Troubled debt restructurings that subsequently defaulted | A loan is considered in default if it is 30-days or more past due. Three Months Ended March 31, 2019 Number of Loans Recorded Balance Real estate loans: Residential 1 $ 63 Total 1 $ 63 Three Months Ended March 31, 2018 Number of Loans Recorded Balance Real estate loans: Commercial and farmland 1 $ 324 Residential 3 108 Total 4 $ 432 |
Purchased Credit Impaired Loa_2
Purchased Credit Impaired Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 Three Months Ended March 31, 2018 Beginning balance $ 2,143 $ 2,890 Additions — — Accretion (580 ) (510 ) Reclassification from nonaccretable 501 295 Disposals — — Ending balance $ 2,064 $ 2,675 |
Other Intangibles (Tables)
Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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. March 31, 2019 December 31, 2018 Gross carrying amount $ 85,869 $ 85,869 Accumulated amortization (62,968 ) (61,440 ) Total other intangibles $ 22,901 $ 24,429 |
Schedule of estimated future amortization expense | Estimated future amortization expense is summarized as follows: Amortization Expense 2019 $ 3,641 2020 3,632 2021 3,427 2022 3,325 2023 3,175 After 2023 5,701 $ 22,901 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Supplemental balance sheet information | Supplemental balance sheet information related to leases is presented in the table below as of March 31, 2019. March 31, 2019 Operating lease assets $ 22,576 Total lease assets $ 22,576 Operating lease liabilities $ 23,175 Total Lease liabilities $ 23,175 Weighted average remaining lease term (years) Operating leases 9.4 Weighted average discount rate Operating leases 3.39 % |
Components of lease expense | The table below presents the components of lease expense for the periods indicated. Three Months Ended 2019 Lease Cost: Operating lease cost $ 892 Short-term lease cost 43 Variable lease cost 262 Total lease cost $ 1,197 |
Supplemental cash flow information | Supplemental cash flow information related to leases is presented in the table below. Maturity of lease liabilities Operating Leases Remaining 2019 $ 2,601 2020 3,343 2021 3,097 2022 2,982 2023 2,611 2024 and after 12,706 Total lease payments $ 27,340 Less: Present value discount 4,165 Present value of lease liabilities $ 23,175 Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 753 ROU assets obtained in exchange for new operating lease liabilities $ 23,324 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative financial instruments 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 March 31, 2019 , and December 31, 2018 . Asset Derivatives Liability Derivatives March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Balance Fair Balance Fair Balance Fair Balance Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ 35 Other Assets $ 135 Other Liabilities $ 972 Other Liabilities $ 688 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 14,194 Other Assets $ 11,948 Other Liabilities $ 14,194 Other Liabilities $ 11,948 |
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 March 31, 2019 March 31, 2018 Interest Rate Products $ (391 ) $ 508 |
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 $ (59 ) $ (170 ) |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 , and December 31, 2018 . Fair Value Measurements Using: March 31, 2019 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Government-sponsored agency securities $ 33,703 $ — $ 33,703 $ — State and municipal 651,858 — 648,957 2,901 U.S. Government-sponsored mortgage-backed securities 562,040 — 562,036 4 Corporate obligations 31 — — 31 Interest rate swap asset 14,194 — 14,194 — Interest rate cap 35 — 35 — Interest rate swap liability 15,166 — 15,166 — Fair Value Measurements Using: December 31, 2018 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: U.S. Government-sponsored agency securities $ 13,582 $ — $ 13,582 $ — State and municipal 606,135 — 602,842 3,293 U.S. Government-sponsored mortgage-backed securities 522,447 — 522,443 4 Corporate obligations 31 — — 31 Interest rate swap asset 11,948 — 11,948 — Interest rate cap 135 — 135 — Interest rate swap liability 12,636 — 12,636 — |
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in Consolidated Condensed Balance Sheets using significant unobservable Level 3 inputs | the three months ended March 31, 2019 and 2018 . Available for Sale Securities Three Months Ended March 31, 2019 March 31, 2018 Balance at beginning of the period $ 3,328 $ 3,978 Included in other comprehensive income 43 (25 ) Principal payments (435 ) 13 Ending balance $ 2,936 $ 3,966 |
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 March 31, 2019 , and December 31, 2018 . Fair Value Measurements Using March 31, 2019 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 11,728 $ — $ — $ 11,728 Other real estate owned 112 — — 112 Fair Value Measurements Using December 31, 2018 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 11,866 $ — $ — $ 11,866 Other real estate owned 657 — — 657 |
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 March 31, 2019 and December 31, 2018 . March 31, 2019 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 2,901 Discounted cash flow Maturity/Call date 1 month to 15 yrs US Muni BQ curve A- to BBB- Discount rate 2% - 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) $ 11,728 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (5%) Other real estate owned $ 112 Appraisals Discount to reflect current market conditions 0% - 51% (51%) December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 3,293 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) $ 11,866 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (6%) Other real estate owned $ 657 Appraisals Discount to reflect current market conditions 0% - 10% (4%) |
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 March 31, 2019 , and December 31, 2018 . March 31, 2019 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 115,878 $ 115,878 $ — $ — Interest-bearing time deposits 70,672 70,672 — — Investment securities available for sale 1,247,632 — 1,244,697 2,936 Investment securities held to maturity 615,027 — 615,182 7,453 Loans held for sale 3,330 — 3,330 — Loans 7,218,418 — — 7,140,432 Federal Home Loan Bank stock 24,588 — 24,588 — Interest rate swap and cap asset 14,229 — 14,229 — Interest receivable 40,931 — 40,931 — Liabilities: Deposits $ 8,047,798 $ 6,439,422 $ 1,576,603 $ — Borrowings: Federal funds purchased 20,000 — 20,000 — Securities sold under repurchase agreements 111,783 — 111,742 — Federal Home Loan Bank advances 345,013 — 342,283 — Subordinated debentures and term loans 138,519 — 129,020 — Interest rate swap liability 15,166 — 15,166 — Interest payable 7,313 — 7,313 — December 31, 2018 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 139,247 $ 139,247 $ — $ — Interest-bearing time deposits 36,963 36,963 — — Investment securities available for sale 1,142,195 — 1,138,867 3,328 Investment securities held to maturity 490,387 — 481,377 7,840 Loans held for sale 4,778 — 4,778 — Loans 7,143,915 — — 7,004,193 Federal Home Loan Bank stock 24,588 — 24,588 — Interest rate swap and cap asset 12,083 — 12,083 — Interest receivable 40,881 — 40,881 — Liabilities: Deposits $ 7,754,593 $ 6,267,879 $ 1,464,129 $ — Borrowings: Federal funds purchased 104,000 — 104,000 — Securities sold under repurchase agreements 113,512 — 113,437 — Federal Home Loan Bank advances 314,986 — 318,728 — Subordinated debentures and term loans 138,463 — 127,298 — Interest rate swap liability 12,636 — 12,636 — Interest payable 5,607 — 5,607 — |
Transfers Accounted for as Se_2
Transfers Accounted for as Secured Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 were: March 31, 2019 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 $ 110,760 $ — $ 1,023 $ — $ 111,783 December 31, 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 $ 104,883 $ 1,014 $ 7,615 $ — $ 113,512 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and 2018 : 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, 2018 $ (6,343 ) $ (559 ) $ (14,520 ) $ (21,422 ) Other comprehensive income before reclassifications 20,990 (309 ) — 20,681 Amounts reclassified from accumulated other comprehensive income (901 ) 47 — (854 ) Period change 20,089 (262 ) — 19,827 Balance at March 31, 2019 $ 13,746 $ (821 ) $ (14,520 ) $ (1,595 ) Balance at December 31, 2017 $ 8,970 $ (1,125 ) $ (10,753 ) $ (2,908 ) Other comprehensive income before reclassifications (17,698 ) 644 — (17,054 ) Amounts reclassified from accumulated other comprehensive income (1,271 ) 134 — (1,137 ) Period change (18,969 ) 778 — (18,191 ) Reclassification adjustment under ASU 2018-02 1,932 (242 ) (2,316 ) (626 ) Balance at March 31, 2018 $ (8,067 ) $ (589 ) $ (13,069 ) $ (21,725 ) |
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 months ended March 31, 2019 and 2018 . Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended March 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2019 2018 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 1,140 $ 1,609 Other income - net realized gains on sales of available for sale securities Related income tax expense (239 ) (338 ) Income tax expense $ 901 $ 1,271 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (59 ) $ (170 ) Interest expense - subordinated debentures and term loans Related income tax benefit 12 36 Income tax expense $ (47 ) $ (134 ) Total reclassifications for the period, net of tax $ 854 $ 1,137 (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) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 an expense and the income tax benefit of such awards. Three Months Ended 2019 2018 Stock and ESPP Options Pre-tax compensation expense $ 11 $ 24 Income tax benefit (16 ) (59 ) Stock and ESPP option expense, net of income taxes $ (5 ) $ (35 ) Restricted Stock Awards Pre-tax compensation expense $ 970 $ 851 Income tax benefit (540 ) (566 ) Restricted stock awards expense, net of income taxes $ 430 $ 285 Total Share-Based Compensation Pre-tax compensation expense $ 981 $ 875 Income tax benefit (556 ) (625 ) Total share-based compensation expense, net of income taxes $ 425 $ 250 |
Stock option activity under stock option plans | Stock option activity under the Corporation's stock option plans as of March 31, 2019 and changes during the three months ended March 31, 2019 , were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2019 76,300 $ 12.40 Exercised (3,700 ) $ 10.88 Cancelled — $ — Outstanding March 31, 2019 72,600 $ 12.48 2.73 $ 1,769,628 Vested and Expected to Vest at March 31, 2019 72,600 $ 12.48 2.73 $ 1,769,628 Exercisable at March 31, 2019 72,600 $ 12.48 2.73 $ 1,769,628 |
Unvested RSAs outstanding | The following table summarizes information on unvested RSAs outstanding as of March 31, 2019 : Number of Shares Weighted-Average Unvested RSAs at January 1, 2019 344,362 $ 36.80 Granted 700 $ 37.44 Vested (103,660 ) $ 23.41 Forfeited (600 ) $ 35.62 Unvested RSAs at March 31, 2019 240,802 $ 42.57 |
Income Tax (Tables)
Income Tax (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 : Three Months Ended 2019 2018 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 21% $ 9,609 $ 9,091 Tax-exempt interest income (2,267 ) (2,015 ) Share-based compensation (350 ) (441 ) Tax-exempt earnings and gains on life insurance (207 ) (247 ) Tax credits (78 ) 39 Other 234 184 Actual Tax Expense $ 6,941 $ 6,611 Effective Tax Rate 15.2 % 15.3 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 2018 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 38,817 49,369,024 $ 0.79 $ 36,679 49,192,647 $ 0.75 Effect of potentially dilutive stock options and restricted stock awards 171,820 235,325 Diluted net income per share $ 38,817 49,540,844 $ 0.78 $ 36,679 49,427,972 $ 0.74 |
General (Details)
General (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating lease assets | $ 22,576 | $ 23,300 |
Operating lease liabilities | $ 23,175 | $ 23,800 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Approximate Fair Value of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available for sale securities | ||
Total Investment Securities | $ 1,229,729 | $ 1,149,727 |
Gross Unrealized Gains | 21,575 | 6,721 |
Gross Unrealized Losses | 3,672 | 14,253 |
Investment securities available for sale | 1,247,632 | 1,142,195 |
Held to maturity securities | ||
Total Investment Securities | 615,027 | 490,387 |
Gross Unrealized Gains | 9,312 | 3,571 |
Gross Unrealized Losses | 1,704 | 4,741 |
Fair Value | 622,635 | 489,217 |
Amortized Cost | 1,844,756 | 1,640,114 |
Gross Unrealized Gains | 30,887 | 10,292 |
Gross Unrealized Losses | 5,376 | 18,994 |
Fair Value | 1,870,267 | 1,631,412 |
U.S. Government-sponsored agency securities | ||
Available for sale securities | ||
Total Investment Securities | 33,494 | 13,493 |
Gross Unrealized Gains | 210 | 92 |
Gross Unrealized Losses | 1 | 3 |
Investment securities available for sale | 33,703 | 13,582 |
Held to maturity securities | ||
Total Investment Securities | 22,619 | 22,618 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 350 | 545 |
Fair Value | 22,269 | 22,073 |
State and municipal | ||
Available for sale securities | ||
Total Investment Securities | 633,617 | 605,994 |
Gross Unrealized Gains | 18,773 | 5,995 |
Gross Unrealized Losses | 532 | 5,854 |
Investment securities available for sale | 651,858 | 606,135 |
Held to maturity securities | ||
Total Investment Securities | 254,520 | 197,909 |
Gross Unrealized Gains | 6,682 | 2,858 |
Gross Unrealized Losses | 117 | 872 |
Fair Value | 261,085 | 199,895 |
U.S. Government-sponsored mortgage-backed securities | ||
Available for sale securities | ||
Total Investment Securities | 562,587 | 530,209 |
Gross Unrealized Gains | 2,592 | 634 |
Gross Unrealized Losses | 3,139 | 8,396 |
Investment securities available for sale | 562,040 | 522,447 |
Held to maturity securities | ||
Total Investment Securities | 336,888 | 268,860 |
Gross Unrealized Gains | 2,630 | 713 |
Gross Unrealized Losses | 1,237 | 3,323 |
Fair Value | 338,281 | 266,250 |
Corporate obligations | ||
Available for sale securities | ||
Total Investment Securities | 31 | 31 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Investment securities available for sale | 31 | 31 |
Foreign investment | ||
Held to maturity securities | ||
Total Investment Securities | 1,000 | 1,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | $ 1,000 | $ 999 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 4,746 | $ 13,092 |
Due after one through five years | 3,750 | 5,311 |
Due after five through ten years | 79,533 | 73,280 |
Due after ten years | 579,113 | 527,835 |
Total debt securities with a single maturity date | 667,142 | 619,518 |
Total Investment Securities | 1,229,729 | 1,149,727 |
Fair Value | ||
Due in one year or less | 4,764 | 13,144 |
Due after one through five years | 3,835 | 5,378 |
Due after five through ten years | 81,458 | 74,411 |
Due after ten years | 595,535 | 526,815 |
Total debt securities with a single maturity date | 685,592 | 619,748 |
Total Investment Securities | 1,247,632 | 1,142,195 |
Amortized Cost | ||
Due in one year or less | 3,502 | 4,732 |
Due after one through five years | 49,060 | 49,054 |
Due after five through ten years | 65,990 | 62,873 |
Due after ten years | 159,587 | 104,868 |
Total debt securities with a single maturity date | 278,139 | 221,527 |
Total Investment Securities | 615,027 | 490,387 |
Fair Value | ||
Due in one year or less | 3,501 | 4,730 |
Due after one through five years | 48,717 | 48,473 |
Due after five through ten years | 68,332 | 64,163 |
Due after ten years | 163,804 | 105,601 |
Total debt securities with a single maturity date | 284,354 | 222,967 |
Investment securities held to maturity | 622,635 | 489,217 |
U.S. Government-sponsored mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 562,587 | 530,209 |
Fair Value | ||
Without single maturity date | 562,040 | 522,447 |
Amortized Cost | ||
Without single maturity date | 336,888 | 268,860 |
Fair Value | ||
Without single maturity date | $ 338,281 | $ 266,250 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Carrying value of securities pledged as collateral | $ 506,562 | $ 416,155 |
Book value of securities sold under agreements to repurchase | 112,029 | 116,691 |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Gross Unrealized Losses | 3,672 | 14,253 |
Held-to-maturity unrealized losses | 1,704 | $ 4,741 |
State and municipal | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Gross Unrealized Losses | $ 532 | |
Number of securities in unrealized loss positions | security | 33 | |
Held-to-maturity unrealized losses | $ 117 | |
Held-to-maturity, number of securities in unrealized loss positions | security | 22 | |
U.S. Government-sponsored agency securities | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Gross Unrealized Losses | $ 1 | |
Number of securities in unrealized loss positions | security | 1 | |
Held-to-maturity unrealized losses | $ 350 | |
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 | $ 3,139 | |
Number of securities in unrealized loss positions | security | 79 | |
Held-to-maturity unrealized losses | $ 1,237 | |
Held-to-maturity, number of securities in unrealized loss positions | security | 45 |
Investment Securities - Gross G
Investment Securities - Gross Gains on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Sales and Redemptions of Available for Sale Securities: | ||
Gross gains | $ 1,140 | $ 1,609 |
Gross losses | $ 0 | $ 0 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than 12 Months | $ 3,761 | $ 432,522 |
12 Months or Longer | 342,311 | 255,149 |
Total | 346,072 | 687,671 |
Gross Unrealized Losses | ||
Less than 12 Months | 2 | 6,361 |
12 Months or Longer | 3,670 | 7,892 |
Total | 3,672 | 14,253 |
Fair Value | ||
Less than 12 Months | 789 | 117,780 |
12 Months or Longer | 141,865 | 127,126 |
Total | 142,654 | 244,906 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 1,245 |
12 Months or Longer | 1,704 | 3,496 |
Total | 1,704 | 4,741 |
Less than 12 Months, Fair Value | 4,550 | 550,302 |
12 Months or Longer, Fair Value | 484,176 | 382,275 |
Total, Fair Value | 488,726 | 932,577 |
Less than 12 Months, Gross Unrealized Losses | 2 | 7,606 |
12 Months or Longer, Gross Unrealized Losses | 5,374 | 11,388 |
Total, Gross Unrealized Losses | 5,376 | 18,994 |
U.S. Government-sponsored agency securities | ||
Fair Value | ||
Less than 12 Months | 0 | 1,490 |
12 Months or Longer | 373 | 0 |
Total | 373 | 1,490 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 3 |
12 Months or Longer | 1 | 0 |
Total | 1 | 3 |
Fair Value | ||
Less than 12 Months | 0 | 0 |
12 Months or Longer | 22,269 | 22,073 |
Total | 22,269 | 22,073 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Longer | 350 | 545 |
Total | 350 | 545 |
State and municipal | ||
Fair Value | ||
Less than 12 Months | 0 | 234,431 |
12 Months or Longer | 31,483 | 38,028 |
Total | 31,483 | 272,459 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 3,958 |
12 Months or Longer | 532 | 1,896 |
Total | 532 | 5,854 |
Fair Value | ||
Less than 12 Months | 310 | 14,952 |
12 Months or Longer | 13,200 | 16,786 |
Total | 13,510 | 31,738 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 369 |
12 Months or Longer | 117 | 503 |
Total | 117 | 872 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 3,761 | 196,601 |
12 Months or Longer | 310,455 | 217,121 |
Total | 314,216 | 413,722 |
Gross Unrealized Losses | ||
Less than 12 Months | 2 | 2,400 |
12 Months or Longer | 3,137 | 5,996 |
Total | 3,139 | 8,396 |
Fair Value | ||
Less than 12 Months | 479 | 102,828 |
12 Months or Longer | 105,396 | 87,268 |
Total | 105,875 | 190,096 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 876 |
12 Months or Longer | 1,237 | 2,447 |
Total | 1,237 | 3,323 |
Foreign investment | ||
Fair Value | ||
Less than 12 Months | 0 | 0 |
12 Months or Longer | 1,000 | 999 |
Total | 1,000 | 999 |
Gross Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 1 |
Total | $ 0 | $ 1 |
Investment Securities - Inves_2
Investment Securities - Investments in Debt and Equity Securities Reported Less than Historical Cost (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Fair value | $ 488,726 | $ 932,577 |
Investments reported at less than historical cost | ||
Schedule of Investments [Line Items] | ||
Historical cost | 494,102 | 951,571 |
Fair value | 488,726 | 932,577 |
Gross unrealized losses | $ 5,376 | $ 18,994 |
Percent of the Corporation's investment portfolio | 26.20% | 57.10% |
Loans and Allowance - Narrative
Loans and Allowance - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Loans held for sale | $ 3,330 | $ 4,778 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 7,299,320 | 7,224,467 | |
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 1,512,876 | 1,494,578 | |
Percentage of troubled debt restructured loans | 100.00% | 91.00% | |
Mortgage loans with formal foreclosure proceedings | $ 646 | 800 | |
Loans acquired with deteriorated credit quality | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 15,568 | 15,784 | |
Loans acquired with deteriorated credit quality | Commercial and consumer loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 1,520 | 1,541 | |
Loans acquired with deteriorated credit quality | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 938 | $ 1,293 |
Loans and Allowance - Compositi
Loans and Allowance - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 7,299,320 | $ 7,224,467 | ||
Allowance for loan losses | (80,902) | (80,552) | $ (76,420) | $ (75,032) |
Net Loans | 7,218,418 | 7,143,915 | ||
Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,788,628 | 1,726,664 | ||
Agricultural production financing and other loans to farmers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 80,357 | 92,404 | ||
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 542,501 | 545,729 | ||
Commercial and farmland | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 2,838,798 | 2,832,102 | ||
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 976,668 | 966,421 | ||
Allowance for loan losses | (14,373) | (14,322) | (14,049) | (13,537) |
Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 536,208 | 528,157 | ||
Individuals' loans for household and other personal expenditures | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 108,216 | 99,788 | ||
Allowance for loan losses | (4,026) | (3,964) | $ (3,896) | $ (3,732) |
Public finance and other commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 427,944 | $ 433,202 |
Loans and Allowance - Changes i
Loans and Allowance - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for loan losses: | ||
Beginning balance | $ 80,552 | $ 75,032 |
Provision for losses | 1,200 | 2,500 |
Recoveries on loans | 1,005 | 701 |
Loans charged off | (1,855) | (1,813) |
Ending balance | 80,902 | 76,420 |
Commercial | ||
Allowance for loan losses: | ||
Beginning balance | 32,657 | 30,420 |
Provision for losses | 236 | 840 |
Recoveries on loans | 542 | 119 |
Loans charged off | (366) | (609) |
Ending balance | 33,069 | 30,770 |
Commercial Real Estate | ||
Allowance for loan losses: | ||
Beginning balance | 29,609 | 27,343 |
Provision for losses | 769 | 84 |
Recoveries on loans | 245 | 339 |
Loans charged off | (1,189) | (61) |
Ending balance | 29,434 | 27,705 |
Consumer | ||
Allowance for loan losses: | ||
Beginning balance | 3,964 | 3,732 |
Provision for losses | 105 | 274 |
Recoveries on loans | 118 | 89 |
Loans charged off | (161) | (199) |
Ending balance | 4,026 | 3,896 |
Residential | ||
Allowance for loan losses: | ||
Beginning balance | 14,322 | 13,537 |
Provision for losses | 90 | 1,302 |
Recoveries on loans | 100 | 154 |
Loans charged off | (139) | (944) |
Ending balance | $ 14,373 | $ 14,049 |
Loans and Allowance - Allowance
Loans and Allowance - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance Balances: | ||||
Individually evaluated for impairment | $ 1,599 | $ 1,872 | ||
Collectively evaluated for impairment | 79,303 | 78,680 | ||
Total Allowance for Loan Losses | 80,902 | 80,552 | $ 76,420 | $ 75,032 |
Loan Balance [Abstract] | ||||
Individually evaluated for impairment | 23,887 | 22,025 | ||
Collectively evaluated for impairment | 7,259,865 | 7,186,658 | ||
Loans | 7,299,320 | 7,224,467 | ||
Loans acquired with deteriorated credit quality | ||||
Loan Balance [Abstract] | ||||
Loans | 15,568 | 15,784 | ||
Commercial | ||||
Allowance Balances: | ||||
Individually evaluated for impairment | 1,172 | 0 | ||
Collectively evaluated for impairment | 31,897 | 32,657 | ||
Total Allowance for Loan Losses | 33,069 | 32,657 | 30,770 | 30,420 |
Loan Balance [Abstract] | ||||
Individually evaluated for impairment | 4,889 | 1,838 | ||
Collectively evaluated for impairment | 2,289,661 | 2,248,330 | ||
Loans | 2,296,929 | 2,252,270 | ||
Commercial | Loans acquired with deteriorated credit quality | ||||
Loan Balance [Abstract] | ||||
Loans | 2,379 | 2,102 | ||
Commercial Real Estate | ||||
Allowance Balances: | ||||
Individually evaluated for impairment | 6 | 1,435 | ||
Collectively evaluated for impairment | 29,428 | 28,174 | ||
Total Allowance for Loan Losses | 29,434 | 29,609 | 27,705 | 27,343 |
Loan Balance [Abstract] | ||||
Individually evaluated for impairment | 16,667 | 17,756 | ||
Collectively evaluated for impairment | 3,352,381 | 3,347,686 | ||
Loans | 3,381,299 | 3,377,831 | ||
Commercial Real Estate | Loans acquired with deteriorated credit quality | ||||
Loan Balance [Abstract] | ||||
Loans | 12,251 | 12,389 | ||
Consumer | ||||
Allowance Balances: | ||||
Individually evaluated for impairment | 1 | 1 | ||
Collectively evaluated for impairment | 4,025 | 3,963 | ||
Total Allowance for Loan Losses | 4,026 | 3,964 | 3,896 | 3,732 |
Loan Balance [Abstract] | ||||
Individually evaluated for impairment | 15 | 18 | ||
Collectively evaluated for impairment | 108,201 | 99,770 | ||
Loans | 108,216 | 99,788 | ||
Residential | ||||
Allowance Balances: | ||||
Individually evaluated for impairment | 420 | 436 | ||
Collectively evaluated for impairment | 13,953 | 13,886 | ||
Total Allowance for Loan Losses | 14,373 | 14,322 | $ 14,049 | $ 13,537 |
Loan Balance [Abstract] | ||||
Individually evaluated for impairment | 2,316 | 2,413 | ||
Collectively evaluated for impairment | 1,509,622 | 1,490,872 | ||
Loans | 1,512,876 | 1,494,578 | ||
Residential | Loans acquired with deteriorated credit quality | ||||
Loan Balance [Abstract] | ||||
Loans | $ 938 | $ 1,293 |
Loans and Allowance - Summary o
Loans and Allowance - Summary of Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 27,949 | $ 26,148 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 2,498 | 1,803 |
Agricultural production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 2,910 | 679 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 7,533 | 8,667 |
Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 8,201 | 8,156 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 4,473 | 4,966 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 1,963 | 1,481 |
Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 18 | 42 |
Public finance and other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 353 | $ 354 |
Loans and Allowance - Composi_2
Loans and Allowance - Composition of Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Unpaid Principal Balance | |||
Impaired loans with no related allowance | $ 23,414 | $ 14,555 | |
Impaired loans with related allowance | 4,567 | 10,501 | |
Total Impaired Loans | 27,981 | 25,056 | |
Recorded Investment | |||
Impaired loans with no related allowance | 19,415 | 11,594 | |
Impaired loans with related allowance | 4,472 | 10,431 | |
Total Impaired Loans | 23,887 | 22,025 | |
Related Allowance | 1,599 | 1,872 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 20,149 | $ 17,714 | |
Impaired loans with related allowance | 4,576 | 4,598 | |
Total Impaired Loans | 24,725 | 22,312 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 40 | 54 | |
Impaired loans with related allowance | 18 | 14 | |
Total Impaired Loans | 58 | 68 | |
Commercial and industrial loans | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 1,920 | 828 | |
Recorded Investment | |||
Impaired loans with no related allowance | 1,626 | 806 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 1,641 | 1,845 | |
Impaired loans with related allowance | 0 | 465 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | |
Impaired loans with related allowance | 0 | 0 | |
Agricultural production financing and other loans to farmers | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 807 | 679 | |
Impaired loans with related allowance | 2,167 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 792 | 679 | |
Impaired loans with related allowance | 2,117 | ||
Related Allowance | 1,172 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 799 | 640 | |
Impaired loans with related allowance | 2,150 | 0 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | |
Impaired loans with related allowance | 0 | 0 | |
Construction | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 9,330 | 1,352 | |
Impaired loans with related allowance | 7,978 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 7,524 | 614 | |
Impaired loans with related allowance | 7,977 | ||
Related Allowance | 1,429 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 8,270 | 0 | |
Impaired loans with related allowance | 0 | 1,352 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | |
Commercial and farmland | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 10,838 | 11,176 | |
Impaired loans with related allowance | 171 | 171 | |
Recorded Investment | |||
Impaired loans with no related allowance | 8,973 | 8,994 | |
Impaired loans with related allowance | 171 | 171 | |
Related Allowance | 6 | 6 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 8,999 | 14,450 | |
Impaired loans with related allowance | 171 | 767 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 39 | 48 | |
Residential | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 118 | 118 | |
Impaired loans with related allowance | 1,843 | 1,958 | |
Recorded Investment | |||
Impaired loans with no related allowance | 99 | 100 | |
Impaired loans with related allowance | 1,815 | 1,907 | |
Related Allowance | 348 | 362 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 38 | 759 | |
Impaired loans with related allowance | 1,884 | 1,709 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 1 | 6 | |
Impaired loans with related allowance | 15 | 12 | |
Home equity | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 48 | 49 | |
Impaired loans with related allowance | 371 | 376 | |
Recorded Investment | |||
Impaired loans with no related allowance | 48 | 48 | |
Impaired loans with related allowance | 354 | 358 | |
Related Allowance | 72 | 74 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 48 | 8 | |
Impaired loans with related allowance | 356 | 305 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | ||
Impaired loans with related allowance | 3 | 2 | |
Individuals' loans for household and other personal expenditures | |||
Unpaid Principal Balance | |||
Impaired loans with related allowance | 15 | 18 | |
Recorded Investment | |||
Impaired loans with related allowance | 15 | 18 | |
Related Allowance | 1 | 1 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 1 | 12 | |
Impaired loans with related allowance | 15 | 0 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | ||
Impaired loans with related allowance | 0 | ||
Public finance and other commercial loans | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 353 | 353 | |
Recorded Investment | |||
Impaired loans with no related allowance | 353 | $ 353 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | $ 353 | 0 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | $ 0 |
Loans and Allowance - Credit Qu
Loans and Allowance - Credit Quality of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 7,299,320 | $ 7,224,467 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,788,628 | 1,726,664 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 80,357 | 92,404 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 542,501 | 545,729 |
Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,838,798 | 2,832,102 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 976,668 | 966,421 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 536,208 | 528,157 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 108,216 | 99,788 |
Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 427,944 | 433,202 |
Commercial Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,524,130 | 5,528,751 |
Commercial Pass | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,692,964 | 1,660,879 |
Commercial Pass | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 64,022 | 78,446 |
Commercial Pass | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 507,086 | 492,358 |
Commercial Pass | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,640,736 | 2,669,491 |
Commercial Pass | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 167,197 | 170,075 |
Commercial Pass | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 24,534 | 24,653 |
Commercial Pass | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Pass | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 427,591 | 432,849 |
Commercial Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 167,961 | 115,342 |
Commercial Special Mention | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 59,119 | 23,246 |
Commercial Special Mention | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,304 | 5,966 |
Commercial Special Mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 949 | 2,185 |
Commercial Special Mention | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 96,353 | 76,037 |
Commercial Special Mention | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,747 | 7,373 |
Commercial Special Mention | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 489 | 535 |
Commercial Special Mention | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Special Mention | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 158,749 | 161,929 |
Commercial Substandard | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 36,545 | 42,539 |
Commercial Substandard | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,031 | 7,992 |
Commercial Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,063 | 24,224 |
Commercial Substandard | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 99,363 | 84,288 |
Commercial Substandard | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,992 | 2,076 |
Commercial Substandard | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 402 | 457 |
Commercial Substandard | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Substandard | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 353 | 353 |
Commercial Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,442,324 | 1,410,521 |
Consumer Performing | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Performing | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Performing | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 25,403 | 25,419 |
Consumer Performing | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,346 | 2,285 |
Consumer Performing | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 797,420 | 782,080 |
Consumer Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 508,969 | 500,996 |
Consumer Performing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 108,186 | 99,741 |
Consumer Performing | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,156 | 7,924 |
Consumer Non-Performing | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Non-Performing | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Non-Performing | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 1,543 |
Consumer Non-Performing | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 1 |
Consumer Non-Performing | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,312 | 4,817 |
Consumer Non-Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,814 | 1,516 |
Consumer Non-Performing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 30 | 47 |
Consumer Non-Performing | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans and Allowance - Past Due
Loans and Allowance - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 7,248,608 | $ 7,186,609 |
Non-Accrual | 27,949 | 26,148 |
Total Past Due & Non-Accrual | 50,712 | 37,858 |
Total | 7,299,320 | 7,224,467 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,784,771 | 1,723,337 |
Non-Accrual | 2,498 | 1,803 |
Total Past Due & Non-Accrual | 3,857 | 3,327 |
Total | 1,788,628 | 1,726,664 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 77,435 | 89,440 |
Non-Accrual | 2,910 | 679 |
Total Past Due & Non-Accrual | 2,922 | 2,964 |
Total | 80,357 | 92,404 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 534,904 | 535,520 |
Non-Accrual | 7,533 | 8,667 |
Total Past Due & Non-Accrual | 7,597 | 10,209 |
Total | 542,501 | 545,729 |
Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,818,380 | 2,822,515 |
Non-Accrual | 8,201 | 8,156 |
Total Past Due & Non-Accrual | 20,418 | 9,587 |
Total | 2,838,798 | 2,832,102 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 965,990 | 959,252 |
Non-Accrual | 4,473 | 4,966 |
Total Past Due & Non-Accrual | 10,678 | 7,169 |
Total | 976,668 | 966,421 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 531,874 | 524,198 |
Non-Accrual | 1,963 | 1,481 |
Total Past Due & Non-Accrual | 4,334 | 3,959 |
Total | 536,208 | 528,157 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 107,792 | 99,499 |
Non-Accrual | 18 | 42 |
Total Past Due & Non-Accrual | 424 | 289 |
Total | 108,216 | 99,788 |
Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 427,462 | 432,848 |
Non-Accrual | 353 | 354 |
Total Past Due & Non-Accrual | 482 | 354 |
Total | 427,944 | 433,202 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 20,913 | 8,794 |
30-59 Days Past Due | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 977 | 1,093 |
30-59 Days Past Due | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 2,285 |
30-59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 64 | 64 |
30-59 Days Past Due | Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12,095 | 1,253 |
30-59 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5,666 | 1,756 |
30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,646 | 2,164 |
30-59 Days Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 324 | 179 |
30-59 Days Past Due | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 129 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,716 | 1,061 |
60-89 Days Past Due | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 382 | 182 |
60-89 Days Past Due | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 178 |
60-89 Days Past Due | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 539 | 430 |
60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 725 | 207 |
60-89 Days Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 70 | 64 |
60-89 Days Past Due | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans 90 Days or More Past Due And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 134 | 1,855 |
Loans 90 Days or More Past Due And Accruing | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 249 |
Loans 90 Days or More Past Due And Accruing | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans 90 Days or More Past Due And Accruing | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 1,478 |
Loans 90 Days or More Past Due And Accruing | Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 122 | 0 |
Loans 90 Days or More Past Due And Accruing | Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 17 |
Loans 90 Days or More Past Due And Accruing | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 107 |
Loans 90 Days or More Past Due And Accruing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12 | 4 |
Loans 90 Days or More Past Due And Accruing | Public finance and other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans and Allowance - Summary_2
Loans and Allowance - Summary of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 90 | $ 237 |
Post-Modification Recorded Balance | $ 90 | $ 246 |
Number of Loans | loan | 1 | 8 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 90 | $ 214 |
Post-Modification Recorded Balance | $ 90 | $ 222 |
Number of Loans | loan | 1 | 5 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 16 | |
Post-Modification Recorded Balance | $ 16 | |
Number of Loans | loan | 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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 90 | $ 251 |
Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 0 | 54 |
Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 90 | 91 |
Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 0 | 106 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 90 | 218 |
Residential | Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 38 | |
Residential | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 90 | 74 |
Residential | Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 106 | |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 26 | |
Home equity | Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 16 | |
Home equity | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 10 | |
Home equity | Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 0 | |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 7 | |
Individuals' loans for household and other personal expenditures | Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 0 | |
Individuals' loans for household and other personal expenditures | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 7 | |
Individuals' loans for household and other personal expenditures | Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 0 |
Loans and Allowance - Subsequen
Loans and Allowance - Subsequent Default (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 4 |
Recorded Balance | $ | $ 63 | $ 432 |
Commercial and farmland | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Recorded Balance | $ | $ 324 | |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 3 |
Recorded Balance | $ | $ 63 | $ 108 |
Purchased Credit Impaired Loa_3
Purchased Credit Impaired Loans - Accretable Yield or Income Expected to be Collected (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning balance | $ 2,143 | $ 2,890 | |
Additions | 0 | 0 | |
Accretion | (580) | (510) | |
Reclassification from nonaccretable | 501 | 295 | |
Disposals | 0 | 0 | |
Ending balance | 2,064 | $ 2,675 | |
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 | $ 17,100 | $ 17,300 |
Other Intangibles - Narrative (
Other Intangibles - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
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 |
Other Intangibles - Schedule of
Other Intangibles - Schedule of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 85,869 | $ 85,869 |
Accumulated amortization | (62,968) | (61,440) |
Total other intangibles | $ 22,901 | $ 24,429 |
Other Intangibles - Estimated F
Other Intangibles - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortization Expense | ||
2019 | $ 3,641 | |
2020 | 3,632 | |
2021 | 3,427 | |
2022 | 3,325 | |
2023 | 3,175 | |
After 2023 | 5,701 | |
Total other intangibles | $ 22,901 | $ 24,429 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease assets | $ 22,576 | $ 23,300 |
Operating lease liabilities | $ 23,175 | $ 23,800 |
Weighted average remaining lease term (years) | 9 years 4 months 24 days | |
Weighted average discount rate | 3.39% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease Cost: | |
Operating lease cost | $ 892 |
Short-term lease cost | 43 |
Variable lease cost | 262 |
Total lease cost | $ 1,197 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Maturity of lease liabilities | ||
Remaining 2019 | $ 2,601 | |
2020 | 3,343 | |
2021 | 3,097 | |
2022 | 2,982 | |
2023 | 2,611 | |
2024 and after | 12,706 | |
Total lease payments | 27,340 | |
Less: Present value discount | 4,165 | |
Present value of lease liabilities | 23,175 | $ 23,800 |
Other Information | ||
Operating cash flows from operating leases | 753 | |
ROU assets obtained in exchange for new operating lease liabilities | $ 23,324 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)interest_rate_swapinterest_rate_capinstrument | Dec. 31, 2018USD ($)interest_rate_swapinterest_rate_cap | |
Derivative [Line Items] | ||
Estimated amount to be transferred from accumulated other comprehensive income to earnings | $ 253 | |
Termination value of derivatives in a net liability position | 10,869 | |
Derivative collateral posted | 13,745 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 486,081 | |
Federal Home Loan Bank Advances | ||
Derivative [Line Items] | ||
Number of debt instruments held | instrument | 2 | |
Cash Flow Hedging | Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | interest_rate_swap | 4 | 4 |
Notional amount of interest rate derivatives | $ 46,000 | $ 46,000 |
Cash Flow Hedging | Interest Rate Swap | Trust Preferred Debt | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | 26,000 | |
Cash Flow Hedging | Interest Rate Swap | Federal Home Loan Bank Advances | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 20,000 | |
Cash Flow Hedging | Interest Rate Cap | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | interest_rate_cap | 1 | 1 |
Notional amount of interest rate derivatives | $ 13,000 | $ 13,000 |
Cash Flow Hedging | Interest Rate Cap | Trust Preferred Debt | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 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 | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 35 | $ 135 |
Derivatives designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 972 | 688 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 14,194 | 11,948 |
Derivatives not designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 14,194 | $ 11,948 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Derivative Financial Instruments on Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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) | $ (391) | $ 508 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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) | $ (59) | $ (170) |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | $ 1,247,632 | $ 1,142,195 |
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 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,244,697 | 1,138,867 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 2,936 | 3,328 |
Fair Value, Measurements, Recurring | Interest rate swap liability | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 0 | 0 |
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 | 15,166 | 12,636 |
Fair Value, Measurements, Recurring | Interest rate swap liability | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 15,166 | 12,636 |
U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 33,703 | 13,582 |
U.S. Government-sponsored agency securities | Fair Value, Measurements, Recurring | 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 | 0 | 0 |
U.S. Government-sponsored agency securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 33,703 | 13,582 |
U.S. Government-sponsored agency securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
U.S. Government-sponsored agency securities | Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 33,703 | 13,582 |
State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 651,858 | 606,135 |
State and municipal | Fair Value, Measurements, Recurring | 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 | 0 | 0 |
State and municipal | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 648,957 | 602,842 |
State and municipal | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 2,901 | 3,293 |
State and municipal | Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 651,858 | 606,135 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 562,040 | 522,447 |
U.S. Government-sponsored mortgage-backed securities | Fair Value, Measurements, Recurring | 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 | 0 | 0 |
U.S. Government-sponsored mortgage-backed securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 562,036 | 522,443 |
U.S. Government-sponsored mortgage-backed securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 4 | 4 |
U.S. Government-sponsored mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 562,040 | 522,447 |
Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Corporate obligations | Fair Value, Measurements, Recurring | 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 | 0 | 0 |
Corporate obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Corporate obligations | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Corporate obligations | Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Interest rate swap asset | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 0 | 0 |
Interest rate swap asset | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 14,194 | 11,948 |
Interest rate swap asset | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 0 | 0 |
Interest rate swap asset | Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 14,194 | 11,948 |
Interest rate cap | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 0 | 0 |
Interest rate cap | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 35 | 135 |
Interest rate cap | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 0 | 0 |
Interest rate cap | Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | $ 35 | $ 135 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Available for Sale Securities | ||
Balance at beginning of the period | $ 3,328 | $ 3,978 |
Included in other comprehensive income | 43 | (25) |
Principal payments | (435) | 13 |
Ending balance | $ 2,936 | $ 3,966 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Assets and Liabilities - Transfers Between Levels (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Transfers in or out of Level 3 | $ 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 | Mar. 31, 2019 | Dec. 31, 2018 |
Impaired loans (collateral dependent) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 11,728 | $ 11,866 |
Impaired loans (collateral dependent) | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Impaired loans (collateral dependent) | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Impaired loans (collateral dependent) | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,728 | 11,866 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 112 | 657 |
Other real estate owned | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other real estate owned | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Other real estate owned | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 112 | $ 657 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
State and municipal securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 2,901 | $ 3,293 |
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 | 15 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 | 11,728 | 11,866 |
Other real estate owned | Appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 112 | $ 657 |
Discount rate | State and municipal securities | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.02 | 0.0069 |
Discount rate | State and municipal securities | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 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] | ||
Risk free rate | 3 month LIBOR | |
Risk free rate | Corporate obligations and equity securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk free rate | 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] | ||
Discount rate | 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] | ||
Discount rate | 0.0200 | |
Discount to reflect current market conditions and ultimate collectability | Impaired loans (collateral dependent) | Collateral based measurements | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0 | 0 |
Discount to reflect current market conditions and ultimate collectability | Impaired loans (collateral dependent) | Collateral based measurements | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.10 | 0.10 |
Discount to reflect current market conditions and ultimate collectability | Impaired loans (collateral dependent) | Collateral based measurements | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.05 | 0.06 |
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 | 0.51 | 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 | 0.51 | 0.04 |
Disclosures About Fair Value _8
Disclosures About Fair Value of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities available for sale | $ 1,247,632 | $ 1,142,195 |
Investment securities held to maturity | 622,635 | 489,217 |
Loans held for sale | 3,330 | 4,778 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 115,878 | 139,247 |
Interest-bearing time deposits | 70,672 | 36,963 |
Investment securities available for sale | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Interest rate swap and cap asset | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities: | ||
Deposits | 6,439,422 | 6,267,879 |
Borrowings: | ||
Federal funds purchased | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures and term loans | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing time deposits | 0 | 0 |
Investment securities available for sale | 1,244,697 | 1,138,867 |
Investment securities held to maturity | 615,182 | 481,377 |
Loans held for sale | 3,330 | 4,778 |
Loans | 0 | 0 |
Federal Home Loan Bank stock | 24,588 | 24,588 |
Interest rate swap and cap asset | 14,229 | 12,083 |
Interest receivable | 40,931 | 40,881 |
Liabilities: | ||
Deposits | 1,576,603 | 1,464,129 |
Borrowings: | ||
Federal funds purchased | 20,000 | 104,000 |
Securities sold under repurchase agreements | 111,742 | 113,437 |
Federal Home Loan Bank advances | 342,283 | 318,728 |
Subordinated debentures and term loans | 129,020 | 127,298 |
Interest rate swap liability | 15,166 | 12,636 |
Interest payable | 7,313 | 5,607 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing time deposits | 0 | 0 |
Investment securities available for sale | 2,936 | 3,328 |
Investment securities held to maturity | 7,453 | 7,840 |
Loans held for sale | 0 | 0 |
Loans | 7,140,432 | 7,004,193 |
Federal Home Loan Bank stock | 0 | 0 |
Interest rate swap and cap asset | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Borrowings: | ||
Federal funds purchased | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures and term loans | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 115,878 | 139,247 |
Interest-bearing time deposits | 70,672 | 36,963 |
Investment securities available for sale | 1,247,632 | 1,142,195 |
Investment securities held to maturity | 615,027 | 490,387 |
Loans held for sale | 3,330 | 4,778 |
Loans | 7,218,418 | 7,143,915 |
Federal Home Loan Bank stock | 24,588 | 24,588 |
Interest rate swap and cap asset | 14,229 | 12,083 |
Interest receivable | 40,931 | 40,881 |
Liabilities: | ||
Deposits | 8,047,798 | 7,754,593 |
Borrowings: | ||
Federal funds purchased | 20,000 | 104,000 |
Securities sold under repurchase agreements | 111,783 | 113,512 |
Federal Home Loan Bank advances | 345,013 | 314,986 |
Subordinated debentures and term loans | 138,519 | 138,463 |
Interest rate swap liability | 15,166 | 12,636 |
Interest payable | $ 7,313 | $ 5,607 |
Transfers Accounted for as Se_3
Transfers Accounted for as Secured Borrowings (Details) - U.S. Government-sponsored mortgage-backed securities - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 111,783 | $ 113,512 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 110,760 | 104,883 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 0 | 1,014 |
30-90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 1,023 | 7,615 |
Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Balances of Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | $ 1,408,260 | $ 1,303,463 |
Other comprehensive income before reclassifications | 20,681 | (17,054) |
Amounts reclassified from accumulated other comprehensive income | (854) | (1,137) |
Total other comprehensive income (loss), net of tax | 19,827 | (18,191) |
Reclassification adjustment under ASU 2018-02 | 0 | |
Ending balance | 1,455,848 | 1,313,073 |
Total | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (21,422) | (2,908) |
Total other comprehensive income (loss), net of tax | 19,827 | (18,191) |
Reclassification adjustment under ASU 2018-02 | (626) | (626) |
Ending balance | (1,595) | (21,725) |
Unrealized Gains (Losses) on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (6,343) | 8,970 |
Other comprehensive income before reclassifications | 20,990 | (17,698) |
Amounts reclassified from accumulated other comprehensive income | (901) | (1,271) |
Total other comprehensive income (loss), net of tax | 20,089 | (18,969) |
Reclassification adjustment under ASU 2018-02 | 1,932 | |
Ending balance | 13,746 | (8,067) |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (559) | (1,125) |
Other comprehensive income before reclassifications | (309) | 644 |
Amounts reclassified from accumulated other comprehensive income | 47 | 134 |
Total other comprehensive income (loss), net of tax | (262) | 778 |
Reclassification adjustment under ASU 2018-02 | (242) | |
Ending balance | (821) | (589) |
Unrealized Gains (Losses) on Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (14,520) | (10,753) |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 |
Reclassification adjustment under ASU 2018-02 | (2,316) | |
Ending balance | $ (14,520) | $ (13,069) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gains on sales of available for sale securities | $ 1,140 | $ 1,609 |
Interest expense - subordinated debentures and term loans | 2,116 | 1,990 |
Income tax expense | (6,941) | (6,611) |
Total reclassifications for the period, net of tax | 854 | 1,137 |
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 | 901 | 1,271 |
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 | (47) | (134) |
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 | 0 | 0 |
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 | 1,140 | 1,609 |
Income tax expense | (239) | (338) |
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 | 12 | 36 |
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 | $ (59) | $ (170) |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
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 | $ 981,000 | $ 875,000 | |
Forfeiture rate | 1.70% | ||
Unrecognized compensation expense related to stock options | $ 0 | ||
Aggregate intrinsic value of stock options exercised | 97,000 | 473,000 | |
Cash receipts of stock options exercised | $ 40,000 | $ 535,000 | |
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) | 240,802 | 344,362 | |
Unrecognized compensation expense related to RSAs | $ 6,066,000 | ||
Unrecognized compensation expense expected recognition period | 1 year 8 months 19 days | ||
DSUs | Non-employee Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding DSUs (in shares) | 0 | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to stock options | $ 0 | ||
Grant date fair value of ESPP options | $ 11,000 |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Share-Based Compensation Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax compensation expense | $ 981 | $ 875 |
Income tax benefit | (556) | (625) |
Total share-based compensation expense, net of income taxes | 425 | 250 |
Stock and ESPP Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax compensation expense | 11 | 24 |
Income tax benefit | (16) | (59) |
Total share-based compensation expense, net of income taxes | (5) | (35) |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax compensation expense | 970 | 851 |
Income tax benefit | (540) | (566) |
Total share-based compensation expense, net of income taxes | $ 430 | $ 285 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity under Stock Option Plans (Details) | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 76,300 |
Exercised (in shares) | shares | (3,700) |
Cancelled (in shares) | shares | 0 |
Ending balance (in shares) | shares | 72,600 |
Vested and Expected to Vest (in shares) | shares | 72,600 |
Exercisable (in shares) | shares | 72,600 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 12.40 |
Exercised (in dollars per share) | $ / shares | 10.88 |
Cancelled (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | 12.48 |
Vested and Expected to Vest (in dollars per share) | $ / shares | 12.48 |
Exercisable (in dollars per share) | $ / shares | $ 12.48 |
Weighted Average Remaining Contractual Term (in Years) | |
Outstanding (term) | 2 years 8 months 23 days |
Vested and Expected to Vest (term) | 2 years 8 months 23 days |
Exercisable (term) | 2 years 8 months 23 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 1,769,628 |
Vested and Expected to Vest | $ | 1,769,628 |
Exercisable | $ | $ 1,769,628 |
Share-Based Compensation - Unve
Share-Based Compensation - Unvested RSAs Outstanding (Details) - RSAs | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Unvested RSAs, Beginning Balance (in shares) | shares | 344,362 |
Granted (in shares) | shares | 700 |
Vested (in shares) | shares | (103,660) |
Forfeited (in shares) | shares | (600) |
Unvested RSAs, Ending Balance (in shares) | shares | 240,802 |
Weighted-Average Grant Date Fair Value | |
Unvested RSAs, Beginning Balance (in dollars per share) | $ / shares | $ 36.80 |
Granted (in dollars per share) | $ / shares | 37.44 |
Vested (in dollars per share) | $ / shares | 23.41 |
Forfeited (in dollars per share) | $ / shares | 35.62 |
Unvested RSAs, Ending Balance (in dollars per share) | $ / shares | $ 42.57 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation of Federal Statutory to Actual Tax Expense: | ||
Federal statutory income tax at 21% | $ 9,609 | $ 9,091 |
Tax-exempt interest income | (2,267) | (2,015) |
Share-based compensation | (350) | (441) |
Tax-exempt earnings and gains on life insurance | (207) | (247) |
Tax credits | (78) | 39 |
Other | 234 | 184 |
Actual Tax Expense | $ 6,941 | $ 6,611 |
Federal statutory income tax rate | 21.00% | 21.00% |
Effective Tax Rate | 15.20% | 15.30% |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Income | ||
Net income available to common stockholders | $ 38,817 | $ 36,679 |
Diluted net income per share | $ 38,817 | $ 36,679 |
Weighted-Average Shares | ||
Net income available to common stockholders (in shares) | 49,369,024 | 49,192,647 |
Effect of potentially dilutive stock options and restricted stock awards (in shares) | 171,820 | 235,325 |
Diluted net income per share (in shares) | 49,540,844 | 49,427,972 |
Per Share Amount | ||
Net income available to common stockholders (in dollars per share) | $ 0.79 | $ 0.75 |
Diluted net income per share (in dollars per share) | $ 0.78 | $ 0.74 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 |
Pending Merger (Details)
Pending Merger (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 09, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Share price | $ 45.71 | ||
Assets | $ 10,210,925 | $ 9,884,716 | |
MBT | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 290,900 | ||
Assets | $ 1,300,000 |