Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | ConnectOne Bancorp, Inc. | |
Entity Central Index Key | 712,771 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 32,239,928 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 37,058 | $ 52,565 |
Interest-bearing deposits with banks | 118,790 | 97,017 |
Cash and cash equivalents | 155,848 | 149,582 |
Securities available-for-sale | 410,039 | 435,284 |
Equity securities | 11,403 | |
Loans held-for-sale | 270 | 24,845 |
Loans receivable | 4,462,487 | 4,171,456 |
Less: Allowance for loan losses | 34,749 | 31,748 |
Net loans receivable | 4,427,738 | 4,139,708 |
Investment in restricted stock, at cost | 32,486 | 33,497 |
Bank premises and equipment, net | 20,998 | 21,659 |
Accrued interest receivable | 17,690 | 15,470 |
Bank owned life insurance | 113,026 | 111,311 |
Other real estate owned | 538 | |
Goodwill | 145,909 | 145,909 |
Core deposit intangibles | 1,881 | 2,364 |
Other assets | 31,353 | 28,275 |
Total assets | 5,368,641 | 5,108,442 |
Deposits: | ||
Noninterest-bearing | 758,213 | 776,843 |
Interest-bearing | 3,230,552 | 3,018,285 |
Total deposits | 3,988,765 | 3,795,128 |
Borrowings | 629,979 | 670,077 |
Subordinated debentures (net of debt issuance costs of $1,681 and $456, respectively) | 128,474 | 54,699 |
Other liabilities | 26,552 | 23,101 |
Total liabilities | 4,773,770 | 4,543,005 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, authorized 5,000,000 shares; issued -0- shares of Series B preferred stock at September 30, 2018 and December 31, 2017; outstanding -0- shares at September 30, 2018 and December 31, 2017; liquidation value of $-0- at September 30, 2018 and December 31, 2017 | ||
Common stock, no par value, authorized 50,000,000 shares; issued 34,303,850 shares at September 30, 2018 and 34,135,782 at December 31, 2017; outstanding 32,239,928 shares at September 30, 2018 and 32,071,860 at December 31, 2017 | 412,546 | 412,546 |
Additional paid-in capital | 14,625 | 13,602 |
Retained earnings | 195,101 | 160,025 |
Treasury stock, at cost (2,063,922 common shares at September 30, 2018 and December 31, 2017) | (16,717) | (16,717) |
Accumulated other comprehensive loss | (10,684) | (4,019) |
Total stockholders' equity | 594,871 | 565,437 |
Total liabilities and stockholders' equity | $ 5,368,641 | $ 5,108,442 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Subordinated debentures, debt issuance costs | $ 1,681 | $ 456 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, total liquidation value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 34,303,850 | 34,135,782 |
Common stock, shares outstanding | 32,239,928 | 32,071,860 |
Treasury Stock, Shares | 2,063,922 | 2,063,922 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||
Interest income | |||||||
Interest and fees on loans | $ 51,699 | $ 43,241 | $ 148,218 | $ 121,879 | |||
Interest and dividends on investment securities: | |||||||
Taxable | 2,154 | 1,695 | 6,191 | 5,042 | |||
Tax-exempt | 785 | 870 | 2,377 | 2,655 | |||
Dividends | 530 | 362 | 1,517 | 982 | |||
Interest on federal funds sold and other short-term investments | 183 | 170 | 607 | 555 | |||
Total interest income | 55,351 | 46,338 | 158,910 | 131,113 | |||
Interest expense | |||||||
Deposits | 10,681 | 6,113 | 27,538 | 16,717 | |||
Borrowings | 4,708 | 3,206 | 14,318 | 9,135 | |||
Total interest expense | 15,389 | 9,319 | 41,856 | 25,852 | |||
Net interest income | 39,962 | 37,019 | 117,054 | 105,261 | |||
Provision for loan losses | 1,100 | 1,450 | 20,000 | 4,000 | |||
Net interest income after provision for loan losses | 38,862 | 35,569 | 97,054 | 101,261 | |||
Noninterest income | |||||||
Annuities and insurance commissions | [1] | [2] | 39 | [2] | |||
Income on bank owned life insurance | [1] | 751 | 985 | [2] | 2,300 | 2,402 | [2] |
Net gains on sale of loans held-for-sale | [1] | 2 | 50 | [2] | 31 | 120 | [2] |
Deposit, loan and other income | 676 | 721 | 1,893 | 2,023 | |||
Net gains on sales of securities available-for-sale | [1] | [2] | 1,596 | [2] | |||
Total noninterest income | 1,429 | 1,756 | [2] | 4,224 | 6,180 | [2] | |
Noninterest expenses | |||||||
Salaries and employee benefits | 10,174 | 8,810 | 29,575 | 25,521 | |||
Occupancy and equipment | 2,137 | 1,969 | 6,311 | 6,215 | |||
FDIC insurance | 735 | 840 | 2,350 | 2,550 | |||
Professional and consulting | 891 | 740 | 2,439 | 2,192 | |||
Marketing and advertising | 192 | 225 | 736 | 770 | |||
Data processing | 1,102 | 1,176 | 3,341 | 3,474 | |||
Merger expenses | 375 | 399 | |||||
Amortization of core deposit intangible | 145 | 169 | 483 | 555 | |||
Other components of net periodic pension expense | 7 | 62 | 21 | 189 | |||
Increase in valuation allowance, loans held-for-sale | 3,000 | 15,325 | |||||
Change in fair value of equity securities | 157 | 325 | |||||
Other expenses | 2,372 | 1,650 | 6,474 | 5,402 | |||
Total noninterest expenses | 18,287 | 18,641 | 52,454 | 62,193 | |||
Income before income tax expense | 22,004 | 18,684 | 48,824 | 45,248 | |||
Income tax expense | 2,102 | 5,607 | 7,144 | 12,608 | |||
Net income | $ 19,902 | $ 13,077 | $ 41,680 | $ 32,640 | |||
Earnings per common share: | |||||||
Basic | $ 0.62 | $ 0.41 | $ 1.3 | $ 1.02 | |||
Diluted | 0.61 | 0.41 | 1.29 | 1.01 | |||
Dividends per common share | $ 0.075 | $ 0.075 | $ 0.225 | $ 0.225 | |||
[1] | Not within scope of ASC 606. | ||||||
[2] | The Company elected the modified respective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 19,902 | $ 13,077 | $ 41,680 | $ 32,640 |
Unrealized gains and losses: | ||||
Unrealized holding (losses) gains on available-for-sale securities arising during the period | (2,840) | 415 | (9,639) | 1,332 |
Tax effect | 729 | (165) | 2,466 | (525) |
Net of tax | (2,111) | 250 | (7,173) | 807 |
Reclassification adjustment for realized gains included in net income | (1,596) | |||
Tax effect | 579 | |||
Net of tax | (1,017) | |||
Unrealized gains (losses) on cash flow hedges | 14 | 119 | 1,108 | 76 |
Tax effect | (5) | (48) | (312) | (31) |
Net of tax | 9 | 71 | 796 | 45 |
Unrealized pension plan gains (losses): | ||||
Unrealized pension plan gains (losses) before reclassifications | 236 | (2) | ||
Tax effect | (67) | 1 | ||
Net of tax | 169 | (1) | ||
Reclassification adjustment for amortization included in net income | 91 | 103 | 274 | 309 |
Tax effect | (26) | (42) | (77) | (126) |
Net of tax | 65 | 61 | 197 | 183 |
Total other comprehensive (loss) income | (2,037) | 382 | (6,011) | 17 |
Total comprehensive income | $ 17,865 | $ 13,459 | $ 35,669 | $ 32,657 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Balance at Dec. 31, 2016 | $ 412,726 | $ 11,407 | $ 126,462 | $ (16,717) | $ (2,846) | $ 531,032 | |
Net income | 32,640 | 32,640 | |||||
Other comprehensive loss, net of tax | 17 | 17 | |||||
Cash dividends declared on common stock ($0.225 per share) | (7,251) | (7,251) | |||||
Stock issuance costs | (180) | (180) | |||||
Exercise of stock options (102,378 and 10,846 shares) | 118 | 118 | |||||
Restricted stock grants (23,018 and 57,164 shares) | |||||||
Stock-based compensation expense | 1,315 | 1,315 | |||||
Balance at Sep. 30, 2017 | 412,546 | 12,840 | 151,851 | (16,717) | (2,829) | 557,691 | |
Balance at Dec. 31, 2017 | 412,546 | 13,602 | 160,025 | (16,717) | (4,019) | 565,437 | |
Reclassification of stranded tax effects (ASU 2018-02) (see Note 8) | 709 | (709) | |||||
Cumulative effect of adopting ASU 2016-01 (see Note 8) | (55) | 55 | |||||
Net income | 41,680 | 41,680 | |||||
Other comprehensive loss, net of tax | (6,011) | (6,011) | |||||
Cash dividends declared on common stock ($0.225 per share) | (7,258) | (7,258) | |||||
Exercise of stock options (102,378 and 10,846 shares) | 524 | 524 | |||||
Restricted stock grants (23,018 and 57,164 shares) | |||||||
Net performance units issued (42,672 shares) | (819) | (819) | |||||
Stock-based compensation expense | 1,318 | 1,318 | |||||
Balance at Sep. 30, 2018 | $ 412,546 | $ 14,625 | $ 195,101 | $ (16,717) | $ (10,684) | $ 594,871 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared on common stock (in Dollars per share) | $ 0.225 | $ 0.225 |
Exercise of stock options, shares | 102,378 | 10,846 |
Restricted stock and performance units grants, shares | 23,018 | 57,164 |
Net performance units issued | 42,672 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | |||
Cash flows from operating activities | ||||
Net income | $ 41,680 | $ 32,640 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization of premises and equipment | 2,336 | 2,364 | ||
Provision for loan losses | 20,000 | 4,000 | ||
Increase in valuation allowance | 15,325 | |||
Amortization of intangibles | 483 | 555 | ||
Net accretion of loans | (969) | (1,106) | ||
Accretion on bank premises | (46) | (58) | ||
Accretion on deposits | (46) | (19) | ||
Accretion on borrowings | (98) | (156) | ||
Stock-based compensation expense | 499 | 1,315 | ||
Gains on sales of investment securities, net | [1] | (1,596) | [2] | |
Change in fair value of equity securities, net | 325 | |||
Gains on sales of loans held-for-sale, net | (31) | (120) | ||
Gains on sales of fixed assets, net | (8) | |||
Loans originated for resale | (2,206) | (6,790) | ||
Proceeds from sale of loans held-for-sale | 2,337 | 12,015 | ||
Net loss on sale of other real estate owned | 192 | 82 | ||
Net increase in cash surrender value of bank owned life insurance | (1,715) | (2,402) | ||
Amortization of premiums and accretion of discounts on investments securities, net | 2,577 | 1,808 | ||
Amortization of subordinated debt issuance costs | 250 | 124 | ||
Increase in accrued interest receivable | (2,220) | (1,876) | ||
Decrease in other assets | 42 | 8,770 | ||
Increase in other liabilities | 3,945 | 3,444 | ||
Net cash provided by operating activities | 67,335 | 68,311 | ||
Investment securities available-for-sale: | ||||
Purchases | (114,457) | (138,945) | ||
Sales | 29,543 | |||
Maturities, calls and principal repayments | 115,757 | 61,700 | ||
Net redemptions (purchases) of restricted investment in bank stocks | 1,011 | (5,362) | ||
Payments on loans held-for-sale | 159 | 2,841 | ||
Net increase in loans | (283,283) | (447,457) | ||
Proceeds from sales of fixed assets | 8 | |||
Purchases of premises and equipment | (1,629) | (2,148) | ||
Purchases of bank owned life insurance | (10,000) | |||
Proceeds from sale of other real estate owned | 884 | 1,124 | ||
Net cash used in investing activities | (281,558) | (508,696) | ||
Cash flows from financing activities | ||||
Net increase in deposits | 193,683 | 279,517 | ||
Increase in subordinated debentures | 73,525 | |||
Advances of Federal Home Loan Bank ("FHLB") borrowings | 1,256,000 | 780,000 | ||
Repayments of FHLB borrowings | (1,296,000) | (656,000) | ||
Repayment of repurchase agreement | (15,000) | |||
Cash dividends paid on common stock | (7,243) | (7,207) | ||
Common stock issuance costs | (180) | |||
Proceeds from exercise of stock options | 524 | 118 | ||
Net cash provided by financing activities | 220,489 | 381,248 | ||
Net change in cash and cash equivalents | 6,266 | (59,137) | ||
Cash and cash equivalents at beginning of period | 149,582 | 200,399 | ||
Cash and cash equivalents at end of period | 155,848 | 141,262 | ||
Cash payments for: | ||||
Interest paid on deposits and borrowings | 40,200 | 25,807 | ||
Income taxes | 2,507 | 4,670 | ||
Supplemental disclosures of noncash investing activities | ||||
Transfer of loans to other real estate owned | 538 | 580 | ||
Transfer of loans held-for-investment to loans held-for-sale | 21,236 | 34,652 | ||
Transfer of loans held-for-sale to held-for-investment | $ 45,552 | |||
[1] | Not within scope of ASC 606. | |||
[2] | The Company elected the modified respective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. |
Nature of Operations and Princi
Nature of Operations and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Principles of Consolidation | Note 1. Nature of Operations and Principles of Consolidation ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company. The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), and NJCB Spec-1, LLC (a New Jersey limited liability company). The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-one other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrower’s business, real estate rental and consumer wages. The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018, or for any other interim period. The Company’s 2017 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements. In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates. The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity. |
New Authoritative Accounting Gu
New Authoritative Accounting Guidance | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Authoritative Accounting Guidance | Note 2. New Authoritative Accounting Guidance ASU 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-10, “ Codification Improvements to Topic 842, Leases .” These amendments affect narrow aspects of the guidance issued in the amendments in ASU 2016-02 including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic 840, transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840, transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU 2018-01, “ Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 .” ASU 2018-01 provides an optional transition practical expedient for the adoption of ASU 2016-02 that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard; and clarify that new or modified land easements should be evaluated under ASU 2016-02, once an entity has adopted the new standard. ASU 2018-01 is effective for fiscal years beginning after December 15, 2018. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU No. 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities .” ASU No. 2017-12 refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 will be effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Although management continues to evaluate the potential impact of ASU 2017-12 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU No. 2017-08, “' Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities .” ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating this ASU to determine the impact on our consolidated financial statements. ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost.” ASU 2016- 13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee that is assessing our data and system needs. The Company has engaged a third-party vendor to assist is analyzing our data and developing a CECL model. The Company has recently met with the third-party vendor and discussed our data, in terms of what is available and potential gaps. The Company also discussed modeling standards, loan segmentation, as well as potential external inputs to supplement our historical loss history. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements. ASU No. 2016-02, “ Leases (Topic 842) |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings per common share: | |
Earnings per Common Share | Note 3. Earnings per Common Share Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards previously granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. Earnings per common share have been computed based on the following: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except for per share data) 2018 2017 2018 2017 Income attributable to common stock $ 19,860 $ 13,035 $ 41,582 $ 32,534 Earnings allocated to participating securities 42 42 98 106 Net income $ 19,902 $ 13,077 $ 41,680 $ 32,640 Weighted average common shares outstanding, including participating securities 32,167 32,015 32,127 31,999 Weighted average participating securities (25 ) (103 ) (34 ) (104 ) Weighted average common shares outstanding 32,142 31,912 32,093 31,895 Incremental shares from assumed conversions of options, performance units and restricted shares 177 270 220 272 Weighted average common and equivalent shares outstanding 32,319 32,182 32,313 32,167 Earnings per common share: Basic $ 0.62 $ 0.41 $ 1.30 $ 1.02 Diluted 0.61 0.41 1.29 1.01 There were no antidilutive share equivalents as of September 30, 2018 and September 30, 2017. |
Securities Available-for-Sale
Securities Available-for-Sale | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | Note 4. Securities Available-for-Sale Securities available-for-sale are reported at fair value with unrealized gains or losses included in stockholders’ equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of September 30, 2018 and December 31, 2017. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 7 of the Notes to Consolidated Financial Statements for a further discussion. The following table summarizes the amortized cost and fair value of securities available-for-sale at September 30, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2018 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 48,963 $ 14 $ (1,443 ) $ 47,534 Residential mortgage pass-through securities 196,650 75 (6,174 ) 190,551 Commercial mortgage pass-through securities 3,953 - (110 ) 3,843 Obligations of U.S. states and political subdivisions 133,564 727 (3,903 ) 130,388 Corporate bonds and notes 26,305 96 (439 ) 25,962 Asset-backed securities 10,317 59 (13 ) 10,363 Certificates of deposit 420 3 - 423 Other securities 975 - - 975 Total securities available-for-sale $ 421,147 $ 974 $ (12,082 ) $ 410,039 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2017 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 56,297 $ 141 $ (416 ) $ 56,022 Residential mortgage pass-through securities 183,509 330 (1,948 ) 181,891 Commercial mortgage pass-through securities 4,054 3 (3 ) 4,054 Obligations of U.S. states and political subdivisions 130,723 1,739 (1,334 ) 131,128 Trust preferred securities 4,577 205 (111 ) 4,671 Corporate bonds and notes 29,801 163 (271 ) 29,693 Asset-backed securities 12,021 66 (37 ) 12,050 Certificates of deposit 621 4 - 625 Equity securities 11,843 235 (350 ) 11,728 Other securities 3,422 - - 3,422 Total securities available-for-sale $ 436,868 $ 2,886 $ (4,470 ) $ 435,284 Effective January 1, 2018, the Company implemented ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ” Under ASU 2016-01, equity securities, with certain exceptions, are to be measured at fair value with changes in fair value recognized in net income. As of March 31, 2018, the Company began separately presenting equity securities with readily determinable fair values on the Statements of Condition within the “Equity securities” caption. Net unrealized losses recognized on equity securities with readily determinable fair values for the three and nine months ended as of September 30, 2018 were $157 thousand and $325 thousand, respectively. Investment securities having a carrying value of approximately $157.0 million and $157.8 million at September 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits, borrowings, Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law. As of September 30, 2018 and December 31, 2017, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. The following table presents information for investments in securities available-for-sale at September 30, 2018, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately. September 30, 2018 Amortized Fair Cost Value (dollars in thousands) Securities available-for-sale: Due in one year or less $ 4,429 $ 4,425 Due after one year through five years 36,607 36,375 Due after five years through ten years 28,135 28,290 Due after ten years 150,398 145,580 Residential mortgage pass-through securities 196,650 190,551 Commercial mortgage pass-through securities 3,953 3,843 Other securities 975 975 Total securities available-for-sale $ 421,147 $ 410,039 Gross gains and losses from the sales, calls and maturities of securities for periods presented were as follows: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Proceeds $ - $ - $ - $ 29,543 Gross gains on sales of securities - - - 1,596 Gross losses on sales of securities - - - - Net gains on sales of securities - - - 1,596 Less: tax provision on net gains - - - (579 ) Net gains on sales of securities, after tax $ - $ - $ - $ 1,017 The Company reviews all securities for potential recognition of other-than-temporary impairment. The Company maintains a watch list for the identification and monitoring of securities experiencing problems that require a heightened level of review. This could include credit rating downgrades. The Company’s assessment of whether an impairment in the portfolio is other-than temporary includes factors such as whether the issuer has defaulted on scheduled payments, announced restructuring and/or filed for bankruptcy, has disclosed severe liquidity problems that cannot be resolved, disclosed deteriorating financial condition or sustained significant losses. Temporarily Impaired Securities The Company does not believe that any of the unrealized losses, which were comprised of 170 and 112 securities as of September 30, 2018 and December 31, 2017, respectively, represent an other-than-temporary impairment (“OTTI”). The gross unrealized losses associated with U.S. Treasury and agency securities, federal agency obligations, mortgage-backed securities, corporate bonds, tax-exempt securities, asset-backed securities, trust preferred securities, mutual funds and equity securities are not considered to be other-than-temporary because these unrealized losses are related to changes in interest rates and do not affect the expected cash flows of the underlying collateral or issuer. Factors which may contribute to unrealized losses include credit risk, market risk, changes in interest rates, economic cycles, and liquidity risk. The magnitude of any unrealized loss may be affected by the relative concentration of the Company’s investment in any one issuer or industry. The Company has established policies to reduce exposure through diversification of the securities portfolio including limits on concentrations to any one issuer. The Company believes the securities portfolio is prudently diversified. The unrealized losses included in the tables below are primarily related to changes in interest rates and credit spreads. All of the Company’s securities are performing and are expected to continue to perform in accordance with their respective contractual terms and conditions. These are largely intermediate duration holdings and, in certain cases, monthly principal payments can further reduce loss exposure resulting from an increase in rates. The Company evaluates all securities with unrealized losses quarterly to determine whether the loss is other-than-temporary. Unrealized losses in the corporate debt securities category consist primarily of senior unsecured corporate debt securities issued by large financial institutions, insurance companies and other corporate issuers. Single issuer corporate trust preferred securities are also included, and in the case of one holding the market valuation loss is largely based upon the floating rate coupon and corresponding market valuation. Neither that trust preferred issuer, nor any other corporate issuers, have defaulted on interest payments. The unrealized loss in equity securities consists of losses on other bank equities. The decline in fair value is due in large part to the lack of an active trading market for these securities, changes in market credit spreads and rating agency downgrades. Management concluded that these securities were not OTTI at September 30, 2018. In determining whether or not securities are OTTI, the Company must exercise considerable judgment. Accordingly, there can be no assurance that the actual results will not differ from the Company’s judgments and that such differences may not require the future recognition of OTTI charges that could have a material effect on the Company’s financial position and results of operations. In addition, the value of, and the realization of any loss on, a security is subject to numerous risks as cited above. The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at September 30, 2018 and December 31, 2017: September 30, 2018 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 45,057 $ (1,443 ) $ 21,455 $ (513 ) $ 23,602 $ (930 ) Residential mortgage pass-through securities 185,442 (6,174 ) 106,190 (2,491 ) 79,252 (3,683 ) Commercial mortgage pass-through securities 3,843 (110 ) 3,843 (110 ) - - Obligations of U.S. states and political subdivisions 78,481 (3,903 ) 33,733 (877 ) 44,748 (3,026 ) Corporate bonds and notes 15,655 (439 ) 11,008 (124 ) 4,647 (315 ) Asset-backed securities 4,113 (13 ) 2,303 (8 ) 1,810 (5 ) Total temporarily impaired securities $ 332,591 $ (12,082 ) $ 178,532 $ (4,123 ) $ 154,059 $ (7,959 ) December 31, 2017 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 39,813 $ (416 ) $ 28,407 $ (213 ) $ 11,406 $ (203 ) Residential mortgage pass-through securities 148,574 (1,948 ) 117,556 (1,146 ) 31,018 (802 ) Commercial mortgage pass-through securities 1,198 (3 ) 1,198 (3 ) - - Obligations of U.S. states and political subdivisions 57,685 (1,334 ) 17,909 (246 ) 39,776 (1,088 ) Trust preferred securities 1,469 (111 ) - - 1,469 (111 ) Corporate bonds and notes 11,074 (271 ) 1,965 (21 ) 9,109 (250 ) Asset-backed securities 7,428 (37 ) 993 (2 ) 6,435 (35 ) Equity securities 11,116 (350 ) - - 11,116 (350 ) Total temporarily impaired securities $ 278,357 $ (4,470 ) $ 168,028 $ (1,631 ) $ 110,329 $ (2,839 ) |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 5. Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps were entered into on April 13, 2017, August 24, 2015, December 30, 2014 and October 15, 2014, each with a respective notional amount of $25 million and were designated as cash flow hedges of a Federal Home Loan Bank (“FHLB”) advance. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income while the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. Summary information about the interest rate swaps designated as cash flow hedges as of September 30, 2018, December 31, 2017 and September 30, 2017 are presented in the following table. September 30, December 31, September 30, 2018 2017 2017 (dollars in thousands) Notional amount $ 100,000 $ 100,000 $ 100,000 Weighted average pay rates 1.68 % 1.66 % 1.52 % Weighted average receive rates 2.12 % 1.23 % 1.07 % Weighted average maturity 1.7 years 2.4 years 2.7 years Fair value $ 1,906 $ 798 $ 164 Net interest income recorded on these swap transactions totaled approximately $173 thousand and $326 thousand for the three and nine months ended September 30, 2018, respectively, and net interest expense recorded on these swap transactions totaled $95 thousand and $326 thousand for the three and nine months ended September 30, 2017, respectively, and is reported as a component of interest expense on FHLB advances. Cash Flow Hedge The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods: Nine Months Ended September 30, 2018 Amount of gain Amount of gain Amount of gain recognized reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 796 $ - $ - Nine Months Ended September 30, 2017 Amount of gain Amount of gain Amount of gain recognized reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 45 $ - $ - The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Notional Notional Amount Fair Value Amount Fair Value (dollars in thousands) Interest rate swaps related to FHLB advances included in assets $ 100,000 $ 1,906 $ 100,000 $ 798 |
Loans and the Allowance for Loa
Loans and the Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans and the Allowance for Loan Losses | Note 6. Loans and the Allowance for Loan Losses Loans Receivable : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, premiums and discounts related to purchase accounting, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Loan segments are defined as a group of loans, which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has five segments of loans: commercial, commercial real estate, commercial construction, residential real estate (including home equity) and consumer. The recognition of interest income on commercial, commercial real estate, commercial construction and residential loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. A loan is moved to nonaccrual status in accordance with the Company’s policy, typically after 90 days of non-payment. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The policy of the Company is to generally grant commercial, residential and consumer loans to residents and businesses within our market area. The borrowers’ abilities to repay their obligations are dependent upon various factors including the borrowers’ income and net worth, cash flows generated by the borrowers’ underlying collateral, value of the underlying collateral, and priority of the lender’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the control of the Company. The Company is therefore subject to risk of loss. The Company believes its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for loan losses are provided for all known and inherent risks. Collateral and/or personal guarantees are required for a large majority of the Company’s loans. Loans Held-for-Sale : Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. Fair value of these loans is determined based on the terms of the loan, such as interest rate, maturity date, reset term, as well as sales of similar assets. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Allowance for Loan Losses : The allowance for loan losses is a valuation allowance for probable incurred credit losses. Losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. As part of the evaluation of impaired loans, the Company individually reviews for impairment all non-homogeneous loans internally classified as substandard or below. Generally, smaller impaired non-homogeneous loans and impaired homogeneous loans are collectively evaluated for impairment. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, impairment of the loan is measured using the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience, the primary factor, is determined by loan class and is based on the actual loss history experienced by the Bank over an actual three-year rolling calculation. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio category and with the exogenous factor adjustments based on the risks present for each loan category. These exogenous factors include consideration of the following: concentrations of credit; delinquency & nonaccrual trends; economic & business conditions including evaluation of the national and regional economies and industries with significant loan concentrations; external factors including legal, regulatory or competitive pressures that may impact the loan portfolio; changes in the experience, ability, or size of the lending staff, management, or board of directors that may impact the loan portfolio; changes in underwriting standards, collection procedures, charge-off practices, or other changes in lending policies and procedures that may impact the loan portfolio; loss and recovery trends; changes in portfolio size and mix; and trends in problem loans. Purchased Credit-Impaired Loans : The Company acquires groups of loans in conjunction with mergers, some of which have shown evidence of credit deterioration since origination. These purchased credit-impaired loans are recorded at their estimated fair value, such that there is no carryover of the seller’s allowance for loan losses (“ALLL”). After acquisition, probable incurred credit losses are recognized by an increase in the ALLL. Such purchased credit-impaired loans (“PCI”) are identified on an individual basis. The Company estimates the amount and timing of expected cash flows for each loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). A PCI loan may be resolved either through a sale of the loan, by working with the customer and obtaining partial or full repayment, by short sale of the collateral, or by foreclosure. A gain or loss on resolution would be recognized based on the difference between the proceeds received and the carrying amount of the loan. PCI loans that met the criteria for nonaccrual may be considered performing, regardless of whether the customer is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loans to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. Loans receivable - The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 (dollars in thousands) Commercial $ 933,169 $ 824,082 Commercial real estate 2,739,943 2,592,909 Commercial construction 494,206 483,216 Residential real estate 295,948 271,795 Consumer 2,508 2,808 Gross loans 4,465,774 4,174,810 Net deferred loan fees (3,287 ) (3,354 ) Total loans receivable $ 4,462,487 $ 4,171,456 At September 30, 2018 and December 31, 2017, loan balances of approximately $2.2 billion and $1.9 billion, respectively, were pledged to secure borrowings from the FHLB of New York. Loans held-for-sale - The following table sets forth the composition of the Company’s loans held-for-sale portfolio at September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 (dollars in thousands) Commercial real estate $ - $ 24,475 Residential real estate 270 370 Total carrying amount $ 270 $ 24,845 Valuation allowance - The following table sets forth the composition of the Company’s valuation allowance within the loans held-for-sale portfolio during the three and nine months ended September 30, 2018 and September 30, 2017: Three Months Three Months Ended Ended September 30, September 30, 2018 2017 (dollars in thousands) Balance at July 1, $ - $ 12,325 Reduction from loans paid off - (38 ) Increase in valuation allowance - 3,000 Balance at September 30, $ - $ 15,287 Nine Months Nine Months Ended Ended September 30, September 30, 2018 2017 (dollars in thousands) Balance at January 1, $ - $ - Reduction from loans paid off - (38 ) Increase in valuation allowance - 15,325 Balance at September 30, $ - $ 15,287 Purchased Credit-Impaired Loans : The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment of those loans is as follows at September 30, 2018 and December 31, 2017. September 30, December 31, 2018 2017 (dollars in thousands) Commercial $ 2,524 $ 2,683 For those purchased loans disclosed above, the Company did not increase the allowance for loan losses during either the three or nine months ended September 30, 2018 and September 30, 2017. There were no reversals from the allowance for loan losses during the three and nine months ended September 30, 2018 and September 30, 2017. The following table presents interest income expected to be recognized on the purchased credit-impaired loans and the related activity for the three and nine months ended September 30, 2018 and September 30, 2017: Three Months Three Months Ended Ended September 30, September 30, 2018 2017 (dollars in thousands) Balance at July 1, $ 1,259 $ 2,496 Accretion of income (63 ) (180 ) Balance at September 30, $ 1,196 $ 2,316 Nine Months Nine Months Ended Ended September 30, September 30, 2018 2017 (dollars in thousands) Balance at January 1, $ 1,387 $ 2,860 Accretion of income (191 ) (544 ) Balance at September 30, $ 1,196 $ 2,316 Loans Receivable on Nonaccrual Status - The following table sets forth the composition of the Company’s nonaccrual loans as of September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 (dollars in thousands) Commercial $ 29,562 $ 47,363 Commercial real estate 15,927 12,757 Commercial construction 2,934 - Residential real estate 4,592 5,493 Total nonaccrual loans $ 53,015 $ 65,613 Nonaccrual loans and loans 90 days or greater past due and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment. The decrease in nonaccruals from the year-end 2017 was mainly attributable to a $17.0 million charge-off, related to the taxi medallion loan portfolio (which is included in the Commercial loan category) that took place during the first quarter of 2018. The taxi medallion loan portfolio was classified as substandard and impaired as of September 30, 2018 and December 31, 2017. The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected. All loans past due 90 days or greater and all impaired loans are included in the appropriate category below. Credit Quality Indicators - The following table presents information, excluding loans held-for-sale and net deferred loan fees, about the Company’s loan credit quality at September 30, 2018 and December 31, 2017: September 30, 2018 Special Pass Mention Substandard Doubtful Total (dollars in thousands) Commercial (1) $ 887,024 $ 12,639 $ 33,506 $ - $ 933,169 Commercial real estate 2,699,338 10,651 29,954 - 2,739,943 Commercial construction 481,226 5,458 7,522 - 494,206 Residential real estate 291,223 - 4,725 - 295,948 Consumer 2,484 - 24 - 2,508 Gross loans $ 4,361,295 $ 28,748 $ 75,731 $ - $ 4,465,774 December 31, 2017 Special Pass Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 767,020 $ 3,764 $ 53,298 $ - $ 824,082 Commercial real estate 2,534,973 34,335 23,601 - 2,592,909 Commercial construction 475,066 5,521 2,629 - 483,216 Residential real estate 266,163 - 5,632 - 271,795 Consumer 2,767 - 41 - 2,808 Gross loans $ 4,045,989 $ 43,620 $ 85,201 $ - $ 4,174,810 (1) Reflects a $17.0 million charge-off related to the taxi medallion loans classified as substandard. The following table provides an analysis of the impaired loans by category as of September 30, 2018 and December 31, 2017: September 30, 2018 Unpaid Recorded Principal Related Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 31,471 $ 92,452 Commercial real estate 21,483 21,636 Commercial construction 10,428 10,429 Residential real estate 2,237 2,533 Consumer - - Total (no related allowance) $ 65,619 $ 127,050 With an allowance recorded Commercial real estate $ 8,529 $ 8,529 $ 709 Residential real estate 263 266 32 Total (with allowance) $ 8,792 $ 8,795 $ 741 Total Commercial $ 31,471 $ 92,452 $ - Commercial real estate 30,012 30,165 709 Commercial construction 10,428 10,429 - Residential real estate 2,500 2,799 32 Consumer - - - Total $ 74,411 $ 135,845 $ 741 December 31, 2017 Unpaid Recorded Principal Related Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 49,761 $ 101,066 Commercial real estate 23,905 23,976 Commercial construction 6,662 6,662 Residential real estate 3,203 3,442 Consumer - - Total (no related allowance) $ 83,531 $ 135,146 With an allowance recorded Commercial real estate $ 1,133 $ 1,133 $ 39 Total Commercial $ 49,761 $ 101,066 $ - Commercial real estate 25,038 25,109 39 Commercial construction 6,662 6,662 - Residential real estate 3,203 3,442 - Consumer - - - Total $ 84,664 $ 136,279 $ 39 The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by category as of and for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (dollars in thousands) Impaired loans (no allowance): Commercial (1) $ 31,769 $ 36 $ 3,100 $ 34 $ 39,132 $ 102 $ 3,149 $ 115 Commercial real estate 21,557 105 19,302 221 21,714 475 18,813 424 Commercial construction 10,297 92 4,285 63 11,718 387 4,273 215 Residential real estate 2,249 - 2,529 2 2,304 - 2,551 6 Consumer - - 48 1 - - 54 2 Total $ 65,872 $ 233 $ 29,264 $ 321 $ 74,868 $ 964 $ 28,840 $ 762 Impaired loans (allowance): Commercial real estate $ 8,534 $ 11 $ 1,645 $ 2 $ 8,544 $ 34 $ 1,654 $ 39 Residential real estate 264 - - - 267 - - - Total $ 8,798 $ 11 $ 1,645 $ 2 $ 8,811 $ 34 $ 1,654 $ 39 Total impaired loans: Commercial (1) $ 31,769 $ 36 $ 3,100 $ 34 $ 39,132 $ 102 $ 3,149 $ 115 Commercial real estate 30,091 116 20,947 223 30,258 509 20,467 463 Commercial construction 10,297 92 4,285 63 11,718 387 4,273 215 Residential real estate 2,513 - 2,259 2 2,571 - 2,551 6 Consumer - - 48 1 - - 54 2 Total $ 74,670 $ 244 $ 30,909 $ 323 $ 83,679 $ 998 $ 30,494 $ 801 (1) Reflects the entire taxi medallion portfolio moving back to the loans held-for-investment category from the loans held-for-sale category in November 2017. Included in impaired loans at September 30, 2018 and December 31, 2017 are loans that are deemed troubled debt restructurings. The recorded investment in loans include accrued interest receivable and other capitalized costs such as real estate taxes paid on behalf of the borrower and loan origination fees, net, when applicable. Cash basis interest and interest income recognized on accrual basis approximate each other. The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at September 30, 2018 and December 31, 2017 by segment: Aging Analysis September 30, 2018 90 Days or Greater Past Total Past 30-59 Days 60-89 Days Due and Still Due and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 233 $ 246 $ 1,648 $ 29,562 $ 31,689 $ 901,480 $ 933,169 Commercial real estate - 3,190 - 15,927 19,117 2,720,826 2,739,943 Commercial construction - - - 2,934 2,934 491,272 494,206 Residential real estate 6 - - 4,592 4,598 291,350 295,948 Consumer 288 - - - 288 2,220 2,508 Total $ 527 $ 3,436 $ 1,648 $ 53,015 $ 58,626 $ 4,407,148 $ 4,465,774 Included in the 90 days or greater past due and still accruing category as of September 30, 2018 are purchased credit-impaired loan, net of its fair value marks, which accretes income per its valuation at date of acquisition. Dec ember 31, 2017 90 Days or Greater Past Total Past 30-59 Days 60-89 Days Due and Still Due and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 1,708 $ 183 $ 1,664 $ 47,363 $ 50,918 $ 773,164 $ 824,082 Commercial real estate 545 1,475 - 12,757 14,777 2,578,132 2,592,909 Commercial construction - - - - - 483,216 483,216 Residential real estate 1,578 - - 5,493 7,071 264,724 271,795 Consumer 18 - - - 18 2,790 2,808 Total $ 3,849 $ 1,658 $ 1,664 $ 65,613 $ 72,784 $ 4,102,026 $ 4,174,810 Included in the 90 days or greater past due and still accruing category as of December 31, 2017 are purchased credit-impaired loan, net of its fair value marks, which accretes income per its valuation at date of acquisition. The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated credit quality, and the related portion of the allowance for loan losses (“ALLL”) that are allocated to each loan portfolio segment: September 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) ALLL Individually evaluated for impairment $ - $ 709 $ - $ 32 $ - $ - $ 741 Collectively evaluated for impairment 9,749 16,569 4,790 1,183 3 564 32,858 Acquired portfolio 200 950 - - - - 1,150 Acquired with deteriorated credit quality - - - - - - - Total $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ 3 $ 564 $ 34,749 Gross loans Individually evaluated for impairment $ 31,471 $ 30,012 $ 10,428 $ 2,500 $ - $ 74,411 Collectively evaluated for impairment 891,514 2,438,638 483,778 247,211 2,123 4,063,264 Acquired portfolio 7,660 271,293 - 46,237 385 325,575 Acquired with deteriorated credit quality 2,524 - - - - 2,524 Total $ 933,169 $ 2,739,943 $ 494,206 $ 295,948 $ 2,508 $ 4,465,774 December 31, 2017 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) ALLL Individually evaluated for impairment $ - $ 39 $ - $ - $ - $ - $ 39 Collectively evaluated for impairment 8,032 15,472 4,747 1,051 2 605 29,909 Acquired portfolio 200 1,600 - - - - 1,800 Acquired with deteriorated credit quality - - - - - - - Total $ 8,232 $ 17,111 $ 4,747 $ 1,051 $ 2 $ 605 $ 31,748 Gross loans Individually evaluated for impairment $ 49,761 $ 25,038 $ 6,662 $ 3,203 $ - $ 84,664 Collectively evaluated for impairment 757,923 2,190,686 476,554 212,350 2,338 3,639,851 Acquired portfolio 13,715 377,185 - 56,242 470 447,612 Acquired with deteriorated credit quality 2,683 - - - - 2,683 Total $ 824,082 $ 2,592,909 $ 483,216 $ 271,795 $ 2,808 $ 4,174,810 The Company’s allowance for loan losses is analyzed quarterly. Many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other factors inherent in the extension of credit. There have been no material changes to the allowance for loan losses (“ALLL”) methodology as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. A summary of the activity in the ALLL is as follows: Three Months Ended September 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at June 30, 2018 $ 8,960 $ 18,221 $ 4,812 $ 1,167 $ 3 $ 431 $ 33,594 Charge-offs - - - - (6 ) - (6 ) Recoveries 56 - - - 5 - 61 Provision for loan losses 933 7 (22 ) 48 1 133 1,100 Balance at September 30, 2018 $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ 3 $ 564 $ 34,749 Three Months Ended September 30, 2017 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at June 30, 2017 $ 7,238 $ 15,389 $ 4,241 $ 985 $ 2 $ 546 $ 28,401 Charge-offs - - - - (1 ) - (1 ) Recoveries 17 2 - - 1 - 20 Provision for loan losses 461 1,443 (301 ) 67 - (220 ) 1,450 Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870 Nine Months Ended September 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at December 31, 2017 $ 8,233 $ 17,112 $ 4,747 $ 1,050 $ 1 $ 605 $ 31,748 Charge-offs (17,066 ) - - (18 ) (7 ) - (17,091 ) Recoveries 87 - - - 5 - 92 Provision 18,695 1,116 43 183 4 (41 ) 20,000 Balance at September 30, 2018 $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ 3 $ 564 $ 34,749 Nine Months Ended September 30, 2017 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at December 31, 2016 $ 6,632 $ 12,583 $ 4,789 $ 958 $ 3 $ 779 $ 25,744 Charge-offs - (71 ) - - (12 ) - (83 ) Recoveries 158 50 - - 1 - 209 Provision for loan losses 926 4,272 (849 ) 94 10 (453 ) 4,000 Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870 Troubled Debt Restructurings : Loans are considered to have been modified in a troubled debt restructuring (“TDRs”) when due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status for a period of nine months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status. The following table presents a rollforward of TDRs and the related changes to the allowance for loan losses (“ALLL”) that occurred for the periods presented: Nine Months Ended Year Ended September 30, 2018 December 31, 2017 (dollars in thousands) Recorded Recorded Investment ALLL Investment ALLL TDRs Beginning balance $ 20,518 $ - $ 13,818 $ - Net additions 18,913 11 10,378 - Payoffs/paydowns (7,094 ) - (3,098 ) - Transfers - - (580 ) - Ending balance $ 32,337 $ 11 $ 20,518 $ - TDRs totaled $32.3 million at September 30, 2018, of which $21.1 million were on nonaccrual status and $11.2 million were performing under restructured terms. At December 31, 2017, TDRs totaled $20.5 million, of which $5.6 million were on nonaccrual status and $14.9 million were performing under restructured terms. TDRs as of September 30, 2018 increased the ALLL during the three and nine months ended September 30, 2018 by $-0- and $147 thousand, respectively. During the nine months ended September 30, 2018, one commercial construction loan and one commercial real estate loan showed collateral improvement, resulting in approximately $136 thousand reduction in specific reserve allocations. There were no charge-offs in connection with a loan modification at the time of modification during the three and nine months ended September 30, 2018. There were no TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2018. The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2018: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment TDRs (dollars in thousands) Commercial 31 $ 15,737 $ 15,737 Commercial real estate 2 209 209 Commercial construction 2 1,839 1,839 Residential real estate 2 454 454 Total 37 $ 18,239 $ 18,239 Included in the commercial loan segment of the troubled debt restructurings are 27 taxi medallion loans totaling $11.2 million. All 27 taxi medallion loans included above were on nonaccrual status prior to modification, and remain on nonaccrual status post-modification. All loan modifications during the nine months ended September 30, 2018 included interest rate reductions and maturity extensions. TDRs totaled $17.6 million at September 30, 2017, of which $4.8 million were on nonaccrual status and $12.8 million were performing under restructured terms. At December 31, 2016, TDRs totaled $13.8 million, of which $0.5 million were on nonaccrual status and $13.3 million were performing under restructured terms. TDRs as of September 30, 2017 did not increase the ALLL during the three and nine months ended September 30, 2017. There were no charge-offs in connection with a loan modification at the time of modification during the three or nine months ended September 30, 2017. There were no TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2017. The following table presents loans by segment modified as troubled debt restructurings that occurred during the nine months ended September 30, 2017: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment TDRs (dollars in thousands) Commercial real estate 2 $ 3,042 $ 3,042 Commercial construction 1 2,589 2,589 Residential real estate 1 17 17 Total 4 $ 5,648 $ 5,648 |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments | Note 7. Fair Value Measurements and Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (for example, supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017: Securities Available-for-Sale and Equity Securities : Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of instruments which would generally be classified within Level 2 of the valuation hierarchy include municipal bonds and certain agency collateralized mortgage obligations. In certain cases where there is limited activity in the market for a particular instrument, assumptions must be made to determine the fair value of the instruments and these are classified as Level 3. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class. Derivatives : The fair value of derivatives is based on valuation models using observable market data as of the measurement date (level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities : Available-for-sale: Federal agency obligations $ 47,534 $ - $ 47,534 $ - Residential mortgage pass-through securities 190,551 - 190,551 - Commercial mortgage pass-through securities 3,843 - 3,843 - Obligations of U.S. states and political subdivision 130,388 - 120,947 9,441 Corporate bonds and notes 25,962 - 25,962 - Asset-backed securities 10,363 - 10,363 - Certificates of deposit 423 - 423 - Other securities 975 975 - - Total available-for-sale $ 410,039 $ 975 $ 399,623 $ 9,441 Equity securities 11,403 11,403 - - Derivatives 1,906 - 1,906 - Total assets $ 423,348 $ 12,378 $ 401,529 $ 9,441 December 31, 2017 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities : Available-for-sale: Federal agency obligations $ 56,022 $ - $ 56,022 $ - Residential mortgage pass-through securities 181,891 - 181,891 - Commercial mortgage pass-through securities 4,054 - 4,054 - Obligations of U.S. states and political subdivision 131,128 - 121,496 9,632 Trust preferred securities 4,671 - 4,671 - Corporate bonds and notes 29,693 - 29,693 - Asset-backed securities 12,050 - 12,050 - Certificates of deposit 625 - 625 - Equity securities 11,728 11,728 - - Other securities 3,422 3,422 - - Total available-for-sale $ 435,284 $ 15,150 $ 410,502 $ 9,632 Derivatives 798 - 798 - Total assets $ 436,082 $ 15,150 $ 411,300 $ 9,632 There were no transfers between Level 1 and Level 2 during the quarter ended September 30, 2018 and during the year ended December 31, 2017. Assets Measured at Fair Value on a Nonrecurring Basis The Company may be required periodically to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017: Loans Held-for-Sale : Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Management obtains quotes or bids on all or part of these loans directly from the purchasing financial institutions (Level 2). Impaired Loans : The Company may record adjustments to the carrying value of loans based on fair value measurements, generally as partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with GAAP. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the market place and are also based on Level 3 inputs. For assets measured at fair value on a nonrecurring basis, the fair value measurements at September 30, 2018 and December 31, 2017 are as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable September 30, Assets Inputs Inputs Assets measured at fair value on a nonrecurring basis: 2018 (Level 1) (Level 2) (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 7,820 $ - $ - $ 7,820 Residential real estate 231 231 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs Assets measured at fair value on a nonrecurring basis: 2017 (Level 1) (Level 2) (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 1,094 $ - $ - $ 1,094 Impaired loans – Collateral dependent impaired loans at September 30, 2018 that required a valuation allowance were $8.8 million with a related valuation allowance of $0.7 million compared to $1.1 million with a related valuation allowance of $39 thousand at December 31, 2017. Assets Measured With Significant Unobservable Level 3 Inputs Recurring basis The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2018 and for the year ended December 31, 2017: Municipal Securities (dollars in thousands) Beginning balance, January 1, 2018 $ 9,632 Principal paydowns (191 ) Ending balance, September 30, 2018 $ 9,441 Municipal Securities (dollars in thousands) Beginning balance, January 1, 2017 $ 18,218 Principal paydowns (8,586 ) Ending balance, December 31, 2017 $ 9,632 The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. September 30, 2018 Valuation Unobservable Fair Value Techniques Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,441 Discounted cash flows Discount rate 2.9 % December 31, 2017 Valuation Unobservable Fair Value Techniques Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,632 Discounted cash flows Discount rate 2.9 % Nonrecurring basis : The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. September 30, 2018 Valuation Unobservable Fair Value Techniques Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 7,820 Sales comparison approach Adjustment for differences between the comparable sales 0% - 20% [10%] Residential real estate $ 231 Sales comparison approach Adjustment for differences between the comparable sales 0% - 7% [2%] December 31, 2017 Valuation Unobservable Fair Value Techniques Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 1,094 Sales comparison approach Adjustment for differences between the comparable sales 0% - 10% [5%] As of September 30, 2018 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement , in which fair value represents exit price. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2018 and December 31, 2017: Fair Value Measurements Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value (Level 1) (Level 2) (Level 3) (dollars in thousands) September 30, 2018 Financial assets: Cash and cash equivalents $ 155,848 $ 155,848 $ 155,848 $ - $ - Securities available-for-sale 410,039 410,039 975 399,623 9,441 Equity Securities 11,403 11,403 11,403 - - Loans held-for-sale 270 270 - - 270 Net loans 4,427,738 4,304,357 - - 4,304,357 Derivatives 1,906 1,906 - 1,906 - Financial liabilities: Noninterest-bearing deposits 758,213 758,213 758,213 - - Interest-bearing deposits 3,230,552 3,222,141 1,907,805 1,314,336 - Borrowings 629,979 626,841 - 626,841 - Subordinated debentures 128,474 129,165 - 129,165 - December 31, 2017 Financial assets: Cash and cash equivalents $ 149,582 $ 149,582 $ 149,582 $ - $ - Securities available-for-sale 435,284 435,284 15,150 410,502 9,632 Loans held-for-sale 24,845 24,845 - 370 24,475 Net loans 4,139,708 4,118,542 - - 4,118,542 Derivatives 798 798 - 798 - Financial liabilities: Noninterest-bearing deposits 776,843 776,843 776,843 - - Interest-bearing deposits 3,018,285 3,018,285 1,842,151 1,176,134 - Borrowings 670,077 669,680 - 669,680 - Subordinated debentures 54,699 57,340 - 57,340 - The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | Note 8. Comprehensive Income Total comprehensive income includes all changes in equity during a period from transactions and other events and circumstances from nonowner sources. The Company’s other comprehensive income (loss) is comprised of unrealized holding gains and losses on securities available-for-sale, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, net of taxes. The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented: Affected Line item in the Details about Accumulated Other Amounts Reclassified from Accumulated Statement Where Net Income is Comprehensive Income Components Other Comprehensive Income Presented Three Months Ended Nine Months Ended September 30 September 30 2018 2017 2018 2017 Sale of investment securities available-for-sale $ - $ - $ - $ 1,596 Net gains on sales of securities available-for-sale Income tax expense - - - (579 ) $ - $ - $ - $ 1,017 Amortization of pension plan net actuarial losses $ 91 $ (103 ) $ 274 $ (309 ) Other components of net periodic pension expense Income tax expense (26 ) 42 (77 ) 126 $ 65 $ (61 ) $ 197 $ (183 ) Total reclassification $ 65 $ (61 ) $ 197 $ 834 Accumulated other comprehensive loss at September 30, 2018 and December 31, 2017 consisted of the following: September 30, December 31, 2018 2017 (dollars in thousands) Investment securities available-for-sale, net of tax $ (8,208 ) $ (902 ) Cash flow hedge, net of tax 1,370 472 Defined benefit pension and post-retirement plans, net of tax (3,846 ) (3,589 ) Total $ (10,684 ) $ (4,019 ) Effective January 1, 2018, the Company implemented ASU 2018-02, “ Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” Under ASU 2018-02, the FASB amended existing guidance to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”). In order to comply with this new ASU, the Company recorded an adjustment to the balance sheet on January 1, 2018 of approximately $709 thousand that increased retained earnings and increased accumulated other comprehensive loss. Effective January 1, 2018, the Company implemented ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ” Under ASU 2016-01, equity securities, with certain exceptions, are to be measured at fair value with changes in fair value recognized in net income. In order to comply with this new ASU, the Company recorded a cumulative-effect adjustment to the balance sheet of approximately $55 thousand. As of September 30, 2018, the Company’s equity securities had readily determinable fair values. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Note 9. Stock Based Compensation Restricted stock, options and restricted stock units typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options, performance units and restricted stock units do not. All awards are issued at fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are handled on a case-by-case basis. Compensation expense for the three and nine months ended September 30, 2018 were $0.6 million and $1.3 million, respectively, while the compensation expense for the three and nine months ended September 30, 2017 were $0.5 million and $1.3 million, respectively. All awards are issued at fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are handled on a case-by-case basis. Activity under the Company’s options as of and for the nine months ended September 30, 2018 was as follows: Weighted- Average Weighted- Remaining Number of Average Contractual Stock Exercise Term Aggregate Options Price (in years) Intrinsic Value Outstanding at December 31, 2017 299,778 $ 6.18 Granted - Exercised (102,378 ) 5.12 Forfeited/cancelled/expired (1,323 ) 14.24 Outstanding at September 30, 2018 196,077 6.68 1.8 $ 3,346,546 Exercisable at September 30, 2018 196,077 $ 6.68 1.8 $ 3,346,546 The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on September 30, 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2018. This amount changes based on the fair market value of the Company’s stock. Activity under the Company’s restricted shares as of and for the nine months ended September 30, 2018 was as follows: Weighted- Average Nonvested Grant Date Shares Fair Value Nonvested at December 31, 2017 103,078 $ 20.41 Granted 23,018 28.08 Vested (58,002 ) 20.33 Forfeited/cancelled/expired (666 ) 24.25 Nonvested at September 30, 2018 67,428 23.07 As of September 30, 2018, there was approximately $920,000 of total unrecognized compensation cost related to nonvested restricted shares granted under the plans. The cost is expected to be recognized over a weighted average period of 1.1 years. A total of -0- and 23,018 restricted shares were granted during the three and nine months ended September 30, 2018, respectively, and 1,000 and 56,164 for the three and nine months ended September 30, 2017, respectively. A summary of the status of unearned performance unit awards and the change during the period is presented in the table below: Weighted Average Grant Units Units Date Fair (expected) (maximum) Value Unearned at December 31, 2017 151,194 $ 19.19 Awarded 19,614 31.35 Change in Estimate (15,172 ) Vested (69,627 ) 19.46 Unearned at September 30, 2018 86,009 151,772 $ 22.06 At September 30, 2018, the specific number of shares related to performance units that were expected to vest was 86,009, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. At September 30, 2018 the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 151,772. At September 30, 2018, compensation cost of approximately $822,000 related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.8 years. A total of -0- and 19,614 performance units were awarded during the three and nine months ended September 30, 2018, respectively. During the nine months ended September 30, 2018, 69,627 shares were issued in satisfaction of earned performance units. The shares issued were calculated based on a net down of 26,955 shares to satisfy tax obligations created by vesting. A summary of the status of unearned restricted stock units and the change during the period is presented in the table below: Weighted Average Grant Units Date Fair (expected) Value Unearned at December 31, 2017 - $ - Awarded 29,423 31.35 Forfeited - - Vested - - Unearned at September 30, 2018 29,423 $ 31.35 At September 30, 2018, the specific number of shares related to restricted stock units that were expected to vest was approximately 29,423. Any forfeitures would result in previously recognized expense being reversed. A portion of the shares that vest will be repurchased to satisfy the tax obligations of the recipient. At September 30, 2018, compensation cost of approximately $756,000 related to non-vested restricted stock units, not yet recognized, is expected to be recognized over a weighted-average period of 2.4 years. A total of 29,423 and -0- restricted stock units were awarded during the nine months ended September 30, 2018 and 2017, respectively. Effective January 1, 2017, the Company implemented ASU 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Included in income tax expense for the nine months ended September 30, 2018 and September 30, 2017 is a benefit of approximately $887 thousand and $181 thousand, respectively, which resulted from the effect of implementing ASU 2016-09. |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | Note 10. Components of Net Periodic Pension Cost The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until June 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated. Three Months Ended Affected Line Item in the Consolidated September 30, Statements of Income 2018 2017 (dollars in thousands) Service cost $ - $ - Interest cost 106 119 Other components of net periodic pension expense Expected return on plan assets (190 ) (160 ) Other components of net periodic pension expense Net amortization 91 103 Other components of net periodic pension expense Total periodic pension cost $ 7 $ 62 Nine Months Ended Affected Line Item in the Consolidated September 30, Statements of Income 2018 2017 (dollars in thousands) Service cost $ - $ - Interest cost 320 358 Other components of net periodic pension expense Expected return on plan assets (573 ) (480 ) Other components of net periodic pension expense Net amortization 274 309 Other components of net periodic pension expense Recognized settlement loss - 2 Other components of net periodic pension expense Total periodic pension cost $ 21 $ 189 Effective January 1, 2018, the Company implemented ASU 2017-07, “ Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost .” Under ASU 2017-07, the FASB requires employers to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The table above details the affected line items within the Consolidated Statements of Income related to the net periodic pension costs for the following periods. This ASU is also required to be applied retrospectively to all periods presented. The following table summarizes the impact of retrospective application to the consolidated statement of condition for the three and nine months ended September 30, 2017: Three Months Nine Months Ended Ended September 30, September 30, 2017 2017 (dollars in thousands) Other components of net periodic pension expense As previously reported $ - $ - As reported under the new guidance 62 189 Salaries and employee benefits As previously reported $ 8,872 $ 25,710 As reported under the new guidance 8,810 25,521 Contributions The Company made a $2.0 million contribution to the Pension Trust during the three months ended March 31, 2018. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2018. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust. |
FHLB Borrowings
FHLB Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract] | |
FHLB Borrowings | Note 11. FHLB Borrowings The Company’s FHLB borrowings and weighted average interest rates are summarized below: September 30, 2018 December 31, 2017 Amount Rate Amount Rate (dollars in thousands) Total FHLB borrowings $ 629,979 2.32 % $ 670,077 1.76 % By remaining period to maturity: Less than 1 year $ 459,979 2.24 % $ 505,077 1.59 % 1 year through less than 2 years 25,000 1.85 % 35,000 1.60 % 2 years through less than 3 years 95,000 2.76 % 85,000 2.65 % 3 years through less than 4 years 25,000 2.13 % 45,000 2.15 % 4 years through 5 years 25,000 2.92 % - - Total FHLB borrowings $ 629,979 2.32 % $ 670,077 1.76 % The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans. Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rates. The advances at September 30, 2018 were primarily collateralized by approximately $1.7 billion of commercial mortgage loans, net of required over collateralization amounts, under a blanket lien arrangement. At September 30, 2018 the Company had remaining borrowing capacity of approximately $1.0 billion at FHLB. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 12. Revenue Recognition Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities, and derivatives that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, and the sale of OREO. The Company, using a modified retrospective transition approach, determined that there will be no cumulative effect adjustment to retained earnings as a result of adopting the new standard, nor will the standard have a material impact on our consolidated financial statements including the timing or amounts of revenue recognized. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three months and nine months ended September 30, 2018 and 2017. Items outside of ASC 606 are noted as such. Three Months Three Months Ended Ended September 30, September 30, 2018 2017 (b) (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 222 $ 228 Other 186 193 Interchange income 152 153 Net gains on sales of loans (a) 2 50 Wire transfer fees (a) 73 63 Loan servicing fees (a) 16 47 Bank owned life insurance (a) 751 985 Other 27 37 Total noninterest income $ 1,429 $ 1,756 Nine Months Nine Months Ended Ended September 30, September 30, 2018 2017 (b) (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 590 $ 587 Other 482 552 Interchange income 465 499 Net gains on sales of loans (a) 31 120 Wire transfer fees (a) 222 184 Loan servicing fees (a) 64 97 Bank owned life insurance (a) 2,300 2,402 Net gains on sales of securities (a) - 1,596 Annuities and insurance commissions (a) - 39 Other 70 104 Total noninterest income $ 4,224 $ 6,180 (a) Not within scope of ASC 606 (b) The Company elected the modified respective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts : The Company earns fees from 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 at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company 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. Interchange Income : The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided by the cardholder. Gains/Losses on Sales of OREO : The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction prices is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. |
Subordinated Debentures
Subordinated Debentures | 9 Months Ended |
Sep. 30, 2018 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | Note 13. Subordinated Debentures During 2003, the Company formed a statutory business trust, which exists for the exclusive purpose of (i) issuing Trust Securities representing undivided beneficial interests in the assets of the Trust; (ii) investing the gross proceeds of the Trust securities in junior subordinated deferrable interest debentures (subordinated debentures) of the Company; and (iii) engaging in only those activities necessary or incidental thereto. On December 19, 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly-owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The capital securities presently qualify as Tier I capital. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or in part prior to maturity. The floating interest rate on the subordinate debentures is three month LIBOR plus 2.85% and reprices quarterly. The rate at September 30, 2018 was 5.19%. These subordinated debentures and the related income effects are not eliminated in the consolidated financial statements as the statutory business trust is not consolidated in accordance with FASB ASC 810-10. Distributions on the subordinated debentures owned by the subsidiary trust have been classified as interest expense in the Consolidated Statements of Income. The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II at September 30, 2018 and December 31, 2017. Securities Redeemable by Issuance Date Issued Liquidation Value Coupon Rate Maturity Issuer Beginning 12/19/2003 $ 5,000,000 $1,000 per Capital Floating 3-month 01/23/2034 01/23/2009 Security LIBOR + 285 Basis Points During June 2015, the Parent Corporation issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). The Notes are non-callable for five years, have a stated maturity of July 1, 2025, and bear interest at a fixed rate of 5.75% per year, from and including June 30, 2015 to, but excluding July 1, 2020. From and including July 1, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three month LIBOR rate plus 393 basis points. As of September 30, 2018, unamortized costs related to this debt issuance were approximately $317,000. On January 11, 2018, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). The Notes bear interest at 5.20% annually from, and including, the date of initial issuance to, but excluding, February 1, 2023, payable semi-annually in arrears. From and including February 1, 2023 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 284 basis points (2.84%) payable quarterly in arrears. If three-month LIBOR is not available for any reason, then the rate for that interest period will be determined by such alternate method as provided in the Supplemental Indenture. Interest on the Notes will be paid on February 1, and August 1, commencing August 1, 2018 to but not including February 1, 2023, and from and including February 1, 2023, on February 1, May 1, August 1, and November 1, of each year to but excluding the stated maturity date, unless in any case previously redeemed. As of September 30, 2018, unamortized costs related to this debt issuance were approximately $1,364,000. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Note 14. Offsetting Assets and Liabilities Certain financial instrument-related assets and liabilities may be eligible for offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements. However, the Company does not elect to offset such arrangements on the consolidated financial statements. The Company enters into interest rate swap agreements with financial institution counterparties. For additional detail regarding interest rate swap agreements refer to Note 5 within this section. In the event of default on, or termination of, any one contract, both parties have the right to net settle multiple contracts. Also, certain interest rate swap agreements may require the Company to receive or pledge cash or financial instrument collateral based on the contract provisions. The following table presents information about financial instruments that are eligible for offset as of September 30, 2018 and December 31, 2017: Gross Amounts Not Offset Net Amounts Gross Amounts of Assets Offset in the Presented in the Cash or Statement of Statement of Financial Financial Gross Amounts Financial Financial Instruments Instrument Net Recognized Condition Condition Recognized Collateral Amount (dollars in thousands) September 30, 2018 Assets: Interest rate swaps $ 1,906 $ - $ 1,906 $ - $ - $ 1,906 December 31, 2017 Assets: Interest rate swaps $ 798 $ - $ 798 $ - $ - $ 798 As of September 30, 2018 and December 31, 2017, there was no financial collateral pledged to our interest rate swaps. As these swap positions were not within the contractually agreed upon collateral requirement there was no collateral pledged to, or from, the respective counterparties. |
New Authoritative Accounting _2
New Authoritative Accounting Guidance (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Authoritative Accounting Guidance | ASU 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-10, “ Codification Improvements to Topic 842, Leases .” These amendments affect narrow aspects of the guidance issued in the amendments in ASU 2016-02 including those regarding residual value guarantees, rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase option, variable lease payments that depend on an index or a rate, investment tax credits, lease term and purchase option, transition guidance for amounts previously recognized in business combinations, certain transition adjustments, transition guidance for leases previously classified as capital leases under Topic 840, transition guidance for modifications to leases previously classified as direct financing or sales-type leases under Topic 840, transition guidance for sale and leaseback transactions, impairment of net investment in the lease, unguaranteed residual asset, effect of initial direct costs on rate implicit in the lease, and failed sale and leaseback transactions. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU 2018-01, “ Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 .” ASU 2018-01 provides an optional transition practical expedient for the adoption of ASU 2016-02 that, if elected, would not require an organization to reconsider their accounting for existing land easements that are not currently accounted for under the old leases standard; and clarify that new or modified land easements should be evaluated under ASU 2016-02, once an entity has adopted the new standard. ASU 2018-01 is effective for fiscal years beginning after December 15, 2018. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU No. 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities .” ASU No. 2017-12 refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 will be effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Although management continues to evaluate the potential impact of ASU 2017-12 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU No. 2017-08, “' Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities .” ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating this ASU to determine the impact on our consolidated financial statements. ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost.” ASU 2016- 13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee that is assessing our data and system needs. The Company has engaged a third-party vendor to assist is analyzing our data and developing a CECL model. The Company has recently met with the third-party vendor and discussed our data, in terms of what is available and potential gaps. The Company also discussed modeling standards, loan segmentation, as well as potential external inputs to supplement our historical loss history. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements. ASU No. 2016-02, “ Leases (Topic 842) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings per common share: | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per common share have been computed based on the following: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except for per share data) 2018 2017 2018 2017 Income attributable to common stock $ 19,860 $ 13,035 $ 41,582 $ 32,534 Earnings allocated to participating securities 42 42 98 106 Net income $ 19,902 $ 13,077 $ 41,680 $ 32,640 Weighted average common shares outstanding, including participating securities 32,167 32,015 32,127 31,999 Weighted average participating securities (25 ) (103 ) (34 ) (104 ) Weighted average common shares outstanding 32,142 31,912 32,093 31,895 Incremental shares from assumed conversions of options, performance units and restricted shares 177 270 220 272 Weighted average common and equivalent shares outstanding 32,319 32,182 32,313 32,167 Earnings per common share: Basic $ 0.62 $ 0.41 $ 1.30 $ 1.02 Diluted 0.61 0.41 1.29 1.01 |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Gain (Loss) on Investments [Table Text Block] | The following table summarizes the amortized cost and fair value of securities available-for-sale at September 30, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2018 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 48,963 $ 14 $ (1,443 ) $ 47,534 Residential mortgage pass-through securities 196,650 75 (6,174 ) 190,551 Commercial mortgage pass-through securities 3,953 - (110 ) 3,843 Obligations of U.S. states and political subdivisions 133,564 727 (3,903 ) 130,388 Corporate bonds and notes 26,305 96 (439 ) 25,962 Asset-backed securities 10,317 59 (13 ) 10,363 Certificates of deposit 420 3 - 423 Other securities 975 - - 975 Total securities available-for-sale $ 421,147 $ 974 $ (12,082 ) $ 410,039 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2017 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 56,297 $ 141 $ (416 ) $ 56,022 Residential mortgage pass-through securities 183,509 330 (1,948 ) 181,891 Commercial mortgage pass-through securities 4,054 3 (3 ) 4,054 Obligations of U.S. states and political subdivisions 130,723 1,739 (1,334 ) 131,128 Trust preferred securities 4,577 205 (111 ) 4,671 Corporate bonds and notes 29,801 163 (271 ) 29,693 Asset-backed securities 12,021 66 (37 ) 12,050 Certificates of deposit 621 4 - 625 Equity securities 11,843 235 (350 ) 11,728 Other securities 3,422 - - 3,422 Total securities available-for-sale $ 436,868 $ 2,886 $ (4,470 ) $ 435,284 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The following table presents information for investments in securities available-for-sale at September 30, 2018, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately. September 30, 2018 Amortized Fair Cost Value (dollars in thousands) Securities available-for-sale: Due in one year or less $ 4,429 $ 4,425 Due after one year through five years 36,607 36,375 Due after five years through ten years 28,135 28,290 Due after ten years 150,398 145,580 Residential mortgage pass-through securities 196,650 190,551 Commercial mortgage pass-through securities 3,953 3,843 Other securities 975 975 Total securities available-for-sale $ 421,147 $ 410,039 |
Schedule of Realized Gain (Loss) [Table Text Block] | Gross gains and losses from the sales, calls and maturities of securities for periods presented were as follows: Three Months Ended Nine Months Ended September 30, September 30, (dollars in thousands) 2018 2017 2018 2017 Proceeds $ - $ - $ - $ 29,543 Gross gains on sales of securities - - - 1,596 Gross losses on sales of securities - - - - Net gains on sales of securities - - - 1,596 Less: tax provision on net gains - - - (579 ) Net gains on sales of securities, after tax $ - $ - $ - $ 1,017 |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at September 30, 2018 and December 31, 2017: September 30, 2018 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 45,057 $ (1,443 ) $ 21,455 $ (513 ) $ 23,602 $ (930 ) Residential mortgage pass-through securities 185,442 (6,174 ) 106,190 (2,491 ) 79,252 (3,683 ) Commercial mortgage pass-through securities 3,843 (110 ) 3,843 (110 ) - - Obligations of U.S. states and political subdivisions 78,481 (3,903 ) 33,733 (877 ) 44,748 (3,026 ) Corporate bonds and notes 15,655 (439 ) 11,008 (124 ) 4,647 (315 ) Asset-backed securities 4,113 (13 ) 2,303 (8 ) 1,810 (5 ) Total temporarily impaired securities $ 332,591 $ (12,082 ) $ 178,532 $ (4,123 ) $ 154,059 $ (7,959 ) December 31, 2017 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 39,813 $ (416 ) $ 28,407 $ (213 ) $ 11,406 $ (203 ) Residential mortgage pass-through securities 148,574 (1,948 ) 117,556 (1,146 ) 31,018 (802 ) Commercial mortgage pass-through securities 1,198 (3 ) 1,198 (3 ) - - Obligations of U.S. states and political subdivisions 57,685 (1,334 ) 17,909 (246 ) 39,776 (1,088 ) Trust preferred securities 1,469 (111 ) - - 1,469 (111 ) Corporate bonds and notes 11,074 (271 ) 1,965 (21 ) 9,109 (250 ) Asset-backed securities 7,428 (37 ) 993 (2 ) 6,435 (35 ) Equity securities 11,116 (350 ) - - 11,116 (350 ) Total temporarily impaired securities $ 278,357 $ (4,470 ) $ 168,028 $ (1,631 ) $ 110,329 $ (2,839 ) |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives [Table Text Block] | Summary information about the interest rate swaps designated as cash flow hedges as of September 30, 2018, December 31, 2017 and September 30, 2017 are presented in the following table. September 30, December 31, September 30, 2018 2017 2017 (dollars in thousands) Notional amount $ 100,000 $ 100,000 $ 100,000 Weighted average pay rates 1.68 % 1.66 % 1.52 % Weighted average receive rates 2.12 % 1.23 % 1.07 % Weighted average maturity 1.7 years 2.4 years 2.7 years Fair value $ 1,906 $ 798 $ 164 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods: Nine Months Ended September 30, 2018 Amount of gain Amount of gain Amount of gain recognized reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 796 $ - $ - Nine Months Ended September 30, 2017 Amount of gain Amount of gain Amount of gain recognized reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 45 $ - $ - |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Notional Notional Amount Fair Value Amount Fair Value (dollars in thousands) Interest rate swaps related to FHLB advances included in assets $ 100,000 $ 1,906 $ 100,000 $ 798 |
Loans and the Allowance for L_2
Loans and the Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 (dollars in thousands) Commercial $ 933,169 $ 824,082 Commercial real estate 2,739,943 2,592,909 Commercial construction 494,206 483,216 Residential real estate 295,948 271,795 Consumer 2,508 2,808 Gross loans 4,465,774 4,174,810 Net deferred loan fees (3,287 ) (3,354 ) Total loans receivable $ 4,462,487 $ 4,171,456 |
Loans held for sale [Table Text Block] | The following table sets forth the composition of the Company’s loans held-for-sale portfolio at September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 (dollars in thousands) Commercial real estate $ - $ 24,475 Residential real estate 270 370 Total carrying amount $ 270 $ 24,845 |
Activity in the valuation allowance [Table Text Block] | The following table sets forth the composition of the Company’s valuation allowance within the loans held-for-sale portfolio during the three and nine months ended September 30, 2018 and September 30, 2017: Three Months Three Months Ended Ended September 30, September 30, 2018 2017 (dollars in thousands) Balance at July 1, $ - $ 12,325 Reduction from loans paid off - (38 ) Increase in valuation allowance - 3,000 Balance at September 30, $ - $ 15,287 Nine Months Nine Months Ended Ended September 30, September 30, 2018 2017 (dollars in thousands) Balance at January 1, $ - $ - Reduction from loans paid off - (38 ) Increase in valuation allowance - 15,325 Balance at September 30, $ - $ 15,287 |
Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block] | The recorded investment of those loans is as follows at September 30, 2018 and December 31, 2017. September 30, December 31, 2018 2017 (dollars in thousands) Commercial $ 2,524 $ 2,683 |
Loans and Leases Receivable Purchased Loans [Table Text Block] | The following table presents interest income expected to be recognized on the purchased credit-impaired loans and the related activity for the three and nine months ended September 30, 2018 and September 30, 2017: Three Months Three Months Ended Ended September 30, September 30, 2018 2017 (dollars in thousands) Balance at July 1, $ 1,259 $ 2,496 Accretion of income (63 ) (180 ) Balance at September 30, $ 1,196 $ 2,316 Nine Months Nine Months Ended Ended September 30, September 30, 2018 2017 (dollars in thousands) Balance at January 1, $ 1,387 $ 2,860 Accretion of income (191 ) (544 ) Balance at September 30, $ 1,196 $ 2,316 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | The following table sets forth the composition of the Company’s nonaccrual loans as of September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 (dollars in thousands) Commercial $ 29,562 $ 47,363 Commercial real estate 15,927 12,757 Commercial construction 2,934 - Residential real estate 4,592 5,493 Total nonaccrual loans $ 53,015 $ 65,613 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table presents information, excluding loans held-for-sale and net deferred loan fees, about the Company’s loan credit quality at September 30, 2018 and December 31, 2017: September 30, 2018 Special Pass Mention Substandard Doubtful Total (dollars in thousands) Commercial (1) $ 887,024 $ 12,639 $ 33,506 $ - $ 933,169 Commercial real estate 2,699,338 10,651 29,954 - 2,739,943 Commercial construction 481,226 5,458 7,522 - 494,206 Residential real estate 291,223 - 4,725 - 295,948 Consumer 2,484 - 24 - 2,508 Gross loans $ 4,361,295 $ 28,748 $ 75,731 $ - $ 4,465,774 December 31, 2017 Special Pass Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 767,020 $ 3,764 $ 53,298 $ - $ 824,082 Commercial real estate 2,534,973 34,335 23,601 - 2,592,909 Commercial construction 475,066 5,521 2,629 - 483,216 Residential real estate 266,163 - 5,632 - 271,795 Consumer 2,767 - 41 - 2,808 Gross loans $ 4,045,989 $ 43,620 $ 85,201 $ - $ 4,174,810 (1) Reflects a $17.0 million charge-off related to the taxi medallion loans classified as substandard. |
Impaired Financing Receivables [Table Text Block] | The following table provides an analysis of the impaired loans by category as of September 30, 2018 and December 31, 2017: September 30, 2018 Unpaid Recorded Principal Related Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 31,471 $ 92,452 Commercial real estate 21,483 21,636 Commercial construction 10,428 10,429 Residential real estate 2,237 2,533 Consumer - - Total (no related allowance) $ 65,619 $ 127,050 With an allowance recorded Commercial real estate $ 8,529 $ 8,529 $ 709 Residential real estate 263 266 32 Total (with allowance) $ 8,792 $ 8,795 $ 741 Total Commercial $ 31,471 $ 92,452 $ - Commercial real estate 30,012 30,165 709 Commercial construction 10,428 10,429 - Residential real estate 2,500 2,799 32 Consumer - - - Total $ 74,411 $ 135,845 $ 741 December 31, 2017 Unpaid Recorded Principal Related Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 49,761 $ 101,066 Commercial real estate 23,905 23,976 Commercial construction 6,662 6,662 Residential real estate 3,203 3,442 Consumer - - Total (no related allowance) $ 83,531 $ 135,146 With an allowance recorded Commercial real estate $ 1,133 $ 1,133 $ 39 Total Commercial $ 49,761 $ 101,066 $ - Commercial real estate 25,038 25,109 39 Commercial construction 6,662 6,662 - Residential real estate 3,203 3,442 - Consumer - - - Total $ 84,664 $ 136,279 $ 39 |
Schedule of Average Balance and Interest Income Recognized on Impaired Loans [Table Text Block] | The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by category as of and for the three and nine months ended September 30, 2018 and 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (dollars in thousands) Impaired loans (no allowance): Commercial (1) $ 31,769 $ 36 $ 3,100 $ 34 $ 39,132 $ 102 $ 3,149 $ 115 Commercial real estate 21,557 105 19,302 221 21,714 475 18,813 424 Commercial construction 10,297 92 4,285 63 11,718 387 4,273 215 Residential real estate 2,249 - 2,529 2 2,304 - 2,551 6 Consumer - - 48 1 - - 54 2 Total $ 65,872 $ 233 $ 29,264 $ 321 $ 74,868 $ 964 $ 28,840 $ 762 Impaired loans (allowance): Commercial real estate $ 8,534 $ 11 $ 1,645 $ 2 $ 8,544 $ 34 $ 1,654 $ 39 Residential real estate 264 - - - 267 - - - Total $ 8,798 $ 11 $ 1,645 $ 2 $ 8,811 $ 34 $ 1,654 $ 39 Total impaired loans: Commercial (1) $ 31,769 $ 36 $ 3,100 $ 34 $ 39,132 $ 102 $ 3,149 $ 115 Commercial real estate 30,091 116 20,947 223 30,258 509 20,467 463 Commercial construction 10,297 92 4,285 63 11,718 387 4,273 215 Residential real estate 2,513 - 2,259 2 2,571 - 2,551 6 Consumer - - 48 1 - - 54 2 Total $ 74,670 $ 244 $ 30,909 $ 323 $ 83,679 $ 998 $ 30,494 $ 801 (1) Reflects the entire taxi medallion portfolio moving back to the loans held-for-investment category from the loans held-for-sale category in November 2017. |
Past Due Financing Receivables [Table Text Block] | The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at September 30, 2018 and December 31, 2017 by segment: Aging Analysis September 30, 2018 90 Days or Greater Past Total Past 30-59 Days 60-89 Days Due and Still Due and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 233 $ 246 $ 1,648 $ 29,562 $ 31,689 $ 901,480 $ 933,169 Commercial real estate - 3,190 - 15,927 19,117 2,720,826 2,739,943 Commercial construction - - - 2,934 2,934 491,272 494,206 Residential real estate 6 - - 4,592 4,598 291,350 295,948 Consumer 288 - - - 288 2,220 2,508 Total $ 527 $ 3,436 $ 1,648 $ 53,015 $ 58,626 $ 4,407,148 $ 4,465,774 Dec ember 31, 2017 90 Days or Greater Past Total Past 30-59 Days 60-89 Days Due and Still Due and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 1,708 $ 183 $ 1,664 $ 47,363 $ 50,918 $ 773,164 $ 824,082 Commercial real estate 545 1,475 - 12,757 14,777 2,578,132 2,592,909 Commercial construction - - - - - 483,216 483,216 Residential real estate 1,578 - - 5,493 7,071 264,724 271,795 Consumer 18 - - - 18 2,790 2,808 Total $ 3,849 $ 1,658 $ 1,664 $ 65,613 $ 72,784 $ 4,102,026 $ 4,174,810 |
Schedule of Recorded Investment in Financing Receivables [Table Text Block] | The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated credit quality, and the related portion of the allowance for loan losses (“ALLL”) that are allocated to each loan portfolio segment: September 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) ALLL Individually evaluated for impairment $ - $ 709 $ - $ 32 $ - $ - $ 741 Collectively evaluated for impairment 9,749 16,569 4,790 1,183 3 564 32,858 Acquired portfolio 200 950 - - - - 1,150 Acquired with deteriorated credit quality - - - - - - - Total $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ 3 $ 564 $ 34,749 Gross loans Individually evaluated for impairment $ 31,471 $ 30,012 $ 10,428 $ 2,500 $ - $ 74,411 Collectively evaluated for impairment 891,514 2,438,638 483,778 247,211 2,123 4,063,264 Acquired portfolio 7,660 271,293 - 46,237 385 325,575 Acquired with deteriorated credit quality 2,524 - - - - 2,524 Total $ 933,169 $ 2,739,943 $ 494,206 $ 295,948 $ 2,508 $ 4,465,774 December 31, 2017 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) ALLL Individually evaluated for impairment $ - $ 39 $ - $ - $ - $ - $ 39 Collectively evaluated for impairment 8,032 15,472 4,747 1,051 2 605 29,909 Acquired portfolio 200 1,600 - - - - 1,800 Acquired with deteriorated credit quality - - - - - - - Total $ 8,232 $ 17,111 $ 4,747 $ 1,051 $ 2 $ 605 $ 31,748 Gross loans Individually evaluated for impairment $ 49,761 $ 25,038 $ 6,662 $ 3,203 $ - $ 84,664 Collectively evaluated for impairment 757,923 2,190,686 476,554 212,350 2,338 3,639,851 Acquired portfolio 13,715 377,185 - 56,242 470 447,612 Acquired with deteriorated credit quality 2,683 - - - - 2,683 Total $ 824,082 $ 2,592,909 $ 483,216 $ 271,795 $ 2,808 $ 4,174,810 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | A summary of the activity in the ALLL is as follows: Three Months Ended September 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at June 30, 2018 $ 8,960 $ 18,221 $ 4,812 $ 1,167 $ 3 $ 431 $ 33,594 Charge-offs - - - - (6 ) - (6 ) Recoveries 56 - - - 5 - 61 Provision for loan losses 933 7 (22 ) 48 1 133 1,100 Balance at September 30, 2018 $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ 3 $ 564 $ 34,749 Three Months Ended September 30, 2017 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at June 30, 2017 $ 7,238 $ 15,389 $ 4,241 $ 985 $ 2 $ 546 $ 28,401 Charge-offs - - - - (1 ) - (1 ) Recoveries 17 2 - - 1 - 20 Provision for loan losses 461 1,443 (301 ) 67 - (220 ) 1,450 Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870 Nine Months Ended September 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at December 31, 2017 $ 8,233 $ 17,112 $ 4,747 $ 1,050 $ 1 $ 605 $ 31,748 Charge-offs (17,066 ) - - (18 ) (7 ) - (17,091 ) Recoveries 87 - - - 5 - 92 Provision 18,695 1,116 43 183 4 (41 ) 20,000 Balance at September 30, 2018 $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ 3 $ 564 $ 34,749 Nine Months Ended September 30, 2017 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at December 31, 2016 $ 6,632 $ 12,583 $ 4,789 $ 958 $ 3 $ 779 $ 25,744 Charge-offs - (71 ) - - (12 ) - (83 ) Recoveries 158 50 - - 1 - 209 Provision for loan losses 926 4,272 (849 ) 94 10 (453 ) 4,000 Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870 |
Allowance for Loan and Lease Losses [Table Text Block] | The following table presents a rollforward of TDRs and the related changes to the allowance for loan losses (“ALLL”) that occurred for the periods presented: Nine Months Ended Year Ended September 30, 2018 December 31, 2017 (dollars in thousands) Recorded Recorded Investment ALLL Investment ALLL TDRs Beginning balance $ 20,518 $ - $ 13,818 $ - Net additions 18,913 11 10,378 - Payoffs/paydowns (7,094 ) - (3,098 ) - Transfers - - (580 ) - Ending balance $ 32,337 $ 11 $ 20,518 $ - |
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block] | The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2018: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment TDRs (dollars in thousands) Commercial 31 $ 15,737 $ 15,737 Commercial real estate 2 209 209 Commercial construction 2 1,839 1,839 Residential real estate 2 454 454 Total 37 $ 18,239 $ 18,239 The following table presents loans by segment modified as troubled debt restructurings that occurred during the nine months ended September 30, 2017: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment TDRs (dollars in thousands) Commercial real estate 2 $ 3,042 $ 3,042 Commercial construction 1 2,589 2,589 Residential real estate 1 17 17 Total 4 $ 5,648 $ 5,648 |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities : Available-for-sale: Federal agency obligations $ 47,534 $ - $ 47,534 $ - Residential mortgage pass-through securities 190,551 - 190,551 - Commercial mortgage pass-through securities 3,843 - 3,843 - Obligations of U.S. states and political subdivision 130,388 - 120,947 9,441 Corporate bonds and notes 25,962 - 25,962 - Asset-backed securities 10,363 - 10,363 - Certificates of deposit 423 - 423 - Other securities 975 975 - - Total available-for-sale $ 410,039 $ 975 $ 399,623 $ 9,441 Equity securities 11,403 11,403 - - Derivatives 1,906 - 1,906 - Total assets $ 423,348 $ 12,378 $ 401,529 $ 9,441 December 31, 2017 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities : Available-for-sale: Federal agency obligations $ 56,022 $ - $ 56,022 $ - Residential mortgage pass-through securities 181,891 - 181,891 - Commercial mortgage pass-through securities 4,054 - 4,054 - Obligations of U.S. states and political subdivision 131,128 - 121,496 9,632 Trust preferred securities 4,671 - 4,671 - Corporate bonds and notes 29,693 - 29,693 - Asset-backed securities 12,050 - 12,050 - Certificates of deposit 625 - 625 - Equity securities 11,728 11,728 - - Other securities 3,422 3,422 - - Total available-for-sale $ 435,284 $ 15,150 $ 410,502 $ 9,632 Derivatives 798 - 798 - Total assets $ 436,082 $ 15,150 $ 411,300 $ 9,632 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | For assets measured at fair value on a nonrecurring basis, the fair value measurements at September 30, 2018 and December 31, 2017 are as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable September 30, Assets Inputs Inputs Assets measured at fair value on a nonrecurring basis: 2018 (Level 1) (Level 2) (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 7,820 $ - $ - $ 7,820 Residential real estate 231 231 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable December 31, Assets Inputs Inputs Assets measured at fair value on a nonrecurring basis: 2017 (Level 1) (Level 2) (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 1,094 $ - $ - $ 1,094 |
Fair Value, Recurring basis [Table Text Block] | The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2018 and for the year ended December 31, 2017: Municipal Securities (dollars in thousands) Beginning balance, January 1, 2018 $ 9,632 Principal paydowns (191 ) Ending balance, September 30, 2018 $ 9,441 Municipal Securities (dollars in thousands) Beginning balance, January 1, 2017 $ 18,218 Principal paydowns (8,586 ) Ending balance, December 31, 2017 $ 9,632 |
Significant unobservable inputs used in fair value measurements [Table Text Block] | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. September 30, 2018 Valuation Unobservable Fair Value Techniques Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,441 Discounted cash flows Discount rate 2.9 % December 31, 2017 Valuation Unobservable Fair Value Techniques Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,632 Discounted cash flows Discount rate 2.9 % |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. September 30, 2018 Valuation Unobservable Fair Value Techniques Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 7,820 Sales comparison approach Adjustment for differences between the comparable sales 0% - 20% [10%] Residential real estate $ 231 Sales comparison approach Adjustment for differences between the comparable sales 0% - 7% [2%] December 31, 2017 Valuation Unobservable Fair Value Techniques Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 1,094 Sales comparison approach Adjustment for differences between the comparable sales 0% - 10% [5%] |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2018 and December 31, 2017: Fair Value Measurements Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value (Level 1) (Level 2) (Level 3) (dollars in thousands) September 30, 2018 Financial assets: Cash and cash equivalents $ 155,848 $ 155,848 $ 155,848 $ - $ - Securities available-for-sale 410,039 410,039 975 399,623 9,441 Equity Securities 11,403 11,403 11,403 - - Loans held-for-sale 270 270 - - 270 Net loans 4,427,738 4,304,357 - - 4,304,357 Derivatives 1,906 1,906 - 1,906 - Financial liabilities: Noninterest-bearing deposits 758,213 758,213 758,213 - - Interest-bearing deposits 3,230,552 3,222,141 1,907,805 1,314,336 - Borrowings 629,979 626,841 - 626,841 - Subordinated debentures 128,474 129,165 - 129,165 - December 31, 2017 Financial assets: Cash and cash equivalents $ 149,582 $ 149,582 $ 149,582 $ - $ - Securities available-for-sale 435,284 435,284 15,150 410,502 9,632 Loans held-for-sale 24,845 24,845 - 370 24,475 Net loans 4,139,708 4,118,542 - - 4,118,542 Derivatives 798 798 - 798 - Financial liabilities: Noninterest-bearing deposits 776,843 776,843 776,843 - - Interest-bearing deposits 3,018,285 3,018,285 1,842,151 1,176,134 - Borrowings 670,077 669,680 - 669,680 - Subordinated debentures 54,699 57,340 - 57,340 - |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented: Affected Line item in the Details about Accumulated Other Amounts Reclassified from Accumulated Statement Where Net Income is Comprehensive Income Components Other Comprehensive Income Presented Three Months Ended Nine Months Ended September 30 September 30 2018 2017 2018 2017 Sale of investment securities available-for-sale $ - $ - $ - $ 1,596 Net gains on sales of securities available-for-sale Income tax expense - - - (579 ) $ - $ - $ - $ 1,017 Amortization of pension plan net actuarial losses $ 91 $ (103 ) $ 274 $ (309 ) Other components of net periodic pension expense Income tax expense (26 ) 42 (77 ) 126 $ 65 $ (61 ) $ 197 $ (183 ) Total reclassification $ 65 $ (61 ) $ 197 $ 834 |
Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss at September 30, 2018 and December 31, 2017 consisted of the following: September 30, December 31, 2018 2017 (dollars in thousands) Investment securities available-for-sale, net of tax $ (8,208 ) $ (902 ) Cash flow hedge, net of tax 1,370 472 Defined benefit pension and post-retirement plans, net of tax (3,846 ) (3,589 ) Total $ (10,684 ) $ (4,019 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Activity under the Company’s options as of and for the nine months ended September 30, 2018 was as follows: Weighted- Average Weighted- Remaining Number of Average Contractual Stock Exercise Term Aggregate Options Price (in years) Intrinsic Value Outstanding at December 31, 2017 299,778 $ 6.18 Granted - Exercised (102,378 ) 5.12 Forfeited/cancelled/expired (1,323 ) 14.24 Outstanding at September 30, 2018 196,077 6.68 1.8 $ 3,346,546 Exercisable at September 30, 2018 196,077 $ 6.68 1.8 $ 3,346,546 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Activity under the Company’s restricted shares as of and for the nine months ended September 30, 2018 was as follows: Weighted- Average Nonvested Grant Date Shares Fair Value Nonvested at December 31, 2017 103,078 $ 20.41 Granted 23,018 28.08 Vested (58,002 ) 20.33 Forfeited/cancelled/expired (666 ) 24.25 Nonvested at September 30, 2018 67,428 23.07 |
Schedule of Unearned Performance Unit Awards [Table Text Block] | A summary of the status of unearned performance unit awards and the change during the period is presented in the table below: Weighted Average Grant Units Units Date Fair (expected) (maximum) Value Unearned at December 31, 2017 151,194 $ 19.19 Awarded 19,614 31.35 Change in Estimate (15,172 ) Vested (69,627 ) 19.46 Unearned at September 30, 2018 86,009 151,772 $ 22.06 |
Schedule of Unearned Restricted Unit Awards [Table Text Block] | A summary of the status of unearned restricted stock units and the change during the period is presented in the table below: Weighted Average Grant Units Date Fair (expected) Value Unearned at December 31, 2017 - $ - Awarded 29,423 31.35 Forfeited - - Vested - - Unearned at September 30, 2018 29,423 $ 31.35 |
Components of Net Periodic Pe_2
Components of Net Periodic Pension Cost (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated. Three Months Ended Affected Line Item in the Consolidated September 30, Statements of Income 2018 2017 (dollars in thousands) Service cost $ - $ - Interest cost 106 119 Other components of net periodic pension expense Expected return on plan assets (190 ) (160 ) Other components of net periodic pension expense Net amortization 91 103 Other components of net periodic pension expense Total periodic pension cost $ 7 $ 62 Nine Months Ended Affected Line Item in the Consolidated September 30, Statements of Income 2018 2017 (dollars in thousands) Service cost $ - $ - Interest cost 320 358 Other components of net periodic pension expense Expected return on plan assets (573 ) (480 ) Other components of net periodic pension expense Net amortization 274 309 Other components of net periodic pension expense Recognized settlement loss - 2 Other components of net periodic pension expense Total periodic pension cost $ 21 $ 189 |
Schedule of Changes as a result of ASU 2017-07 | The following table summarizes the impact of retrospective application to the consolidated statement of condition for the three and nine months ended September 30, 2017: Three Months Nine Months Ended Ended September 30, September 30, 2017 2017 (dollars in thousands) Other components of net periodic pension expense As previously reported $ - $ - As reported under the new guidance 62 189 Salaries and employee benefits As previously reported $ 8,872 $ 25,710 As reported under the new guidance 8,810 25,521 |
FHLB Borrowings (Tables)
FHLB Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s FHLB borrowings and weighted average interest rates are summarized below: September 30, 2018 December 31, 2017 Amount Rate Amount Rate (dollars in thousands) Total FHLB borrowings $ 629,979 2.32 % $ 670,077 1.76 % By remaining period to maturity: Less than 1 year $ 459,979 2.24 % $ 505,077 1.59 % 1 year through less than 2 years 25,000 1.85 % 35,000 1.60 % 2 years through less than 3 years 95,000 2.76 % 85,000 2.65 % 3 years through less than 4 years 25,000 2.13 % 45,000 2.15 % 4 years through 5 years 25,000 2.92 % - - Total FHLB borrowings $ 629,979 2.32 % $ 670,077 1.76 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition Tables Abstract | |
Schedule of Revenue from Contracts with Customers [Table Text Block] | The following table presents the Company’s sources of noninterest income for the three months and nine months ended September 30, 2018 and 2017. Items outside of ASC 606 are noted as such. Three Months Three Months Ended Ended September 30, September 30, 2018 2017 (b) (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 222 $ 228 Other 186 193 Interchange income 152 153 Net gains on sales of loans (a) 2 50 Wire transfer fees (a) 73 63 Loan servicing fees (a) 16 47 Bank owned life insurance (a) 751 985 Other 27 37 Total noninterest income $ 1,429 $ 1,756 Nine Months Nine Months Ended Ended September 30, September 30, 2018 2017 (b) (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 590 $ 587 Other 482 552 Interchange income 465 499 Net gains on sales of loans (a) 31 120 Wire transfer fees (a) 222 184 Loan servicing fees (a) 64 97 Bank owned life insurance (a) 2,300 2,402 Net gains on sales of securities (a) - 1,596 Annuities and insurance commissions (a) - 39 Other 70 104 Total noninterest income $ 4,224 $ 6,180 (a) Not within scope of ASC 606 (b) The Company elected the modified respective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Debentures [Table Text Block] | The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II at September 30, 2018 and December 31, 2017. Securities Redeemable by Issuance Date Issued Liquidation Value Coupon Rate Maturity Issuer Beginning 12/19/2003 $ 5,000,000 $1,000 per Capital Floating 3-month 01/23/2034 01/23/2009 Security LIBOR + 285 Basis Points |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Offsetting Assets And Liabilities Tables | |
Schedule of financial instruments that are eligible for offset [Table Text Block] | The following table presents information about financial instruments that are eligible for offset as of September 30, 2018 and December 31, 2017: Gross Amounts Not Offset Net Amounts Gross Amounts of Assets Offset in the Presented in the Cash or Statement of Statement of Financial Financial Gross Amounts Financial Financial Instruments Instrument Net Recognized Condition Condition Recognized Collateral Amount (dollars in thousands) September 30, 2018 Assets: Interest rate swaps $ 1,906 $ - $ 1,906 $ - $ - $ 1,906 December 31, 2017 Assets: Interest rate swaps $ 798 $ - $ 798 $ - $ - $ 798 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - Schedule of earnings per common share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings per common share: | ||||
Income attributable to common stock | $ 19,860 | $ 13,035 | $ 41,582 | $ 32,534 |
Earnings allocated to participating securities | 42 | 42 | 98 | 106 |
Net income | $ 19,902 | $ 13,077 | $ 41,680 | $ 32,640 |
Weighted average common shares outstanding, including participating securities | 32,167 | 32,015 | 32,127 | 31,999 |
Weighted average participating securities | (25) | (103) | (34) | (104) |
Weighted average common shares outstanding | 32,142 | 31,912 | 32,093 | 31,895 |
Incremental shares from assumed conversions of options, performance units and restricted shares | 177 | 270 | 220 | 272 |
Weighted average common and equivalent shares outstanding | 32,319 | 32,182 | 32,313 | 32,167 |
Earnings per common share: | ||||
Basic | $ 0.62 | $ 0.41 | $ 1.3 | $ 1.02 |
Diluted | $ 0.61 | $ 0.41 | $ 1.29 | $ 1.01 |
Securities Available-for-Sale_2
Securities Available-for-Sale (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($)Integer | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)Integer | |
Investments, Debt and Equity Securities [Abstract] | ||||
Loss on equity securities, net | $ 157 | $ 325 | ||
Available-for-sale Securities Pledged as Collateral | $ 157,000 | $ 157,000 | $ 157,800 | |
Description of Holding Securities | there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. | there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. | ||
Number of Investment Securities Sold | Integer | 170 | 112 |
Securities Available-for-Sale_3
Securities Available-for-Sale (Details) - Unrealized gains on investment securities - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Securities available-for-sale | ||
Securities, Amortized Cost | $ 421,147 | $ 436,868 |
Securities, Gross Unrealized Gains | 974 | 2,886 |
Securities, Gross Unrealized Losses | (12,082) | (4,470) |
Securities, Fair Value | 410,039 | 435,284 |
Federal agency obligations [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 48,963 | 56,297 |
Securities, Gross Unrealized Gains | 14 | 141 |
Securities, Gross Unrealized Losses | (1,443) | (416) |
Securities, Fair Value | 47,534 | 56,022 |
Residential mortgage pass-through securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 196,650 | 183,509 |
Securities, Gross Unrealized Gains | 75 | 330 |
Securities, Gross Unrealized Losses | (6,174) | (1,948) |
Securities, Fair Value | 190,551 | 181,891 |
Commercial mortgage pass-through securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 3,953 | 4,054 |
Securities, Gross Unrealized Gains | 3 | |
Securities, Gross Unrealized Losses | (110) | (3) |
Securities, Fair Value | 3,843 | 4,054 |
Obligations of U.S. states and political subdivisions [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 133,564 | 130,723 |
Securities, Gross Unrealized Gains | 727 | 1,739 |
Securities, Gross Unrealized Losses | (3,903) | (1,334) |
Securities, Fair Value | 130,388 | 131,128 |
Corporate bonds and notes [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 26,305 | 29,801 |
Securities, Gross Unrealized Gains | 96 | 163 |
Securities, Gross Unrealized Losses | (439) | (271) |
Securities, Fair Value | 25,962 | 29,693 |
Asset-backed securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 10,317 | 12,021 |
Securities, Gross Unrealized Gains | 59 | 66 |
Securities, Gross Unrealized Losses | (13) | (37) |
Securities, Fair Value | 10,363 | 12,050 |
Certificates of deposit [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 420 | 621 |
Securities, Gross Unrealized Gains | 3 | 4 |
Securities, Gross Unrealized Losses | ||
Securities, Fair Value | 423 | 625 |
Other securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 975 | 3,422 |
Securities, Gross Unrealized Gains | ||
Securities, Gross Unrealized Losses | ||
Securities, Fair Value | $ 975 | 3,422 |
Trust preferred securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 4,577 | |
Securities, Gross Unrealized Gains | 205 | |
Securities, Gross Unrealized Losses | (111) | |
Securities, Fair Value | 4,671 | |
Equity securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 11,843 | |
Securities, Gross Unrealized Gains | 235 | |
Securities, Gross Unrealized Losses | (350) | |
Securities, Fair Value | $ 11,728 |
Securities Available-for-Sale_4
Securities Available-for-Sale (Details) - Investments classified by maturity date - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Securities Available-for-Sale: | ||
Due in one year or less, amortized cost | $ 4,429 | |
Due in one year or less, fair value | 4,425 | |
Due after one year through five years, amortized cost | 36,607 | |
Due after one year through five years, fair value | 36,375 | |
Due after five years through ten years, amortized cost | 28,135 | |
Due after five years through ten years, fair value | 28,290 | |
Due after ten years, amortized cost | 150,398 | |
Due after ten years, fair value | 145,580 | |
Total, amortized cost | 421,147 | $ 436,868 |
Total, fair value | 410,039 | |
Residential mortgage pass-through securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 196,650 | 183,509 |
Total, fair value | 190,551 | |
Commercial mortgage pass-through securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 3,953 | 4,054 |
Total, fair value | 3,843 | |
Other securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 975 | $ 3,422 |
Total, fair value | $ 975 |
Securities Available-for-Sale_5
Securities Available-for-Sale (Details) - Schedule of realized gains and losses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of realized gains and losses [Abstract] | ||||
Proceeds | $ 29,543 | |||
Gross gains on sales of securities | 1,596 | |||
Gross losses on sales of securities | ||||
Net gains on sales of securities | 1,596 | |||
Less: tax provision on net gains | (579) | |||
Net gains on sales of securities, after tax | $ 1,017 |
Securities Available-for-Sale_6
Securities Available-for-Sale (Details) - Schedule of unrealized losses not recognized in income - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment Securities: | ||
Investment Securities: Total, Fair Value | $ 332,591 | $ 278,357 |
Investment Securities: Total, Unrealized Losses | (12,082) | (4,470) |
Investment Securities: Less than 12 Months, Fair Value | 178,532 | 168,028 |
Investment Securities: Less than 12 Months, Unrealized Losses | (4,123) | (1,631) |
Investment Securities: 12 Months or Longer, Fair Value | 154,059 | 110,329 |
Investment Securities: 12 Months or Longer, Unrealized Losses | (7,959) | (2,839) |
Federal agency obligations [Member] | ||
Investment Securities: | ||
Investment Securities: Total, Fair Value | 45,057 | 39,813 |
Investment Securities: Total, Unrealized Losses | (1,443) | (416) |
Investment Securities: Less than 12 Months, Fair Value | 21,455 | 28,407 |
Investment Securities: Less than 12 Months, Unrealized Losses | (513) | (213) |
Investment Securities: 12 Months or Longer, Fair Value | 23,602 | 11,406 |
Investment Securities: 12 Months or Longer, Unrealized Losses | (930) | (203) |
Residential mortgage pass-through securities [Member] | ||
Investment Securities: | ||
Investment Securities: Total, Fair Value | 185,442 | 148,574 |
Investment Securities: Total, Unrealized Losses | (6,174) | (1,948) |
Investment Securities: Less than 12 Months, Fair Value | 106,190 | 117,556 |
Investment Securities: Less than 12 Months, Unrealized Losses | (2,491) | (1,146) |
Investment Securities: 12 Months or Longer, Fair Value | 79,252 | 31,018 |
Investment Securities: 12 Months or Longer, Unrealized Losses | (3,683) | (802) |
Commercial mortgage pass-through securities [Member] | ||
Investment Securities: | ||
Investment Securities: Total, Fair Value | 3,843 | 1,198 |
Investment Securities: Total, Unrealized Losses | (110) | (3) |
Investment Securities: Less than 12 Months, Fair Value | 3,843 | 1,198 |
Investment Securities: Less than 12 Months, Unrealized Losses | (110) | (3) |
Investment Securities: 12 Months or Longer, Fair Value | ||
Investment Securities: 12 Months or Longer, Unrealized Losses | ||
Obligations of U.S. states and political subdivisions [Member] | ||
Investment Securities: | ||
Investment Securities: Total, Fair Value | 78,481 | 57,685 |
Investment Securities: Total, Unrealized Losses | (3,903) | (1,334) |
Investment Securities: Less than 12 Months, Fair Value | 33,733 | 17,909 |
Investment Securities: Less than 12 Months, Unrealized Losses | (877) | (246) |
Investment Securities: 12 Months or Longer, Fair Value | 44,748 | 39,776 |
Investment Securities: 12 Months or Longer, Unrealized Losses | (3,026) | (1,088) |
Corporate bonds and notes [Member] | ||
Investment Securities: | ||
Investment Securities: Total, Fair Value | 15,655 | 11,074 |
Investment Securities: Total, Unrealized Losses | (439) | (271) |
Investment Securities: Less than 12 Months, Fair Value | 11,008 | 1,965 |
Investment Securities: Less than 12 Months, Unrealized Losses | (124) | (21) |
Investment Securities: 12 Months or Longer, Fair Value | 4,647 | 9,109 |
Investment Securities: 12 Months or Longer, Unrealized Losses | (315) | (250) |
Asset-backed securities [Member] | ||
Investment Securities: | ||
Investment Securities: Total, Fair Value | 4,113 | 7,428 |
Investment Securities: Total, Unrealized Losses | (13) | (37) |
Investment Securities: Less than 12 Months, Fair Value | 2,303 | 993 |
Investment Securities: Less than 12 Months, Unrealized Losses | (8) | (2) |
Investment Securities: 12 Months or Longer, Fair Value | 1,810 | 6,435 |
Investment Securities: 12 Months or Longer, Unrealized Losses | $ (5) | (35) |
Trust preferred securities [Member] | ||
Investment Securities: | ||
Investment Securities: Total, Fair Value | 1,469 | |
Investment Securities: Total, Unrealized Losses | (111) | |
Investment Securities: Less than 12 Months, Fair Value | ||
Investment Securities: Less than 12 Months, Unrealized Losses | ||
Investment Securities: 12 Months or Longer, Fair Value | 1,469 | |
Investment Securities: 12 Months or Longer, Unrealized Losses | (111) | |
Equity securities [Member] | ||
Investment Securities: | ||
Investment Securities: Total, Fair Value | 11,116 | |
Investment Securities: Total, Unrealized Losses | (350) | |
Investment Securities: Less than 12 Months, Fair Value | ||
Investment Securities: Less than 12 Months, Unrealized Losses | ||
Investment Securities: 12 Months or Longer, Fair Value | 11,116 | |
Investment Securities: 12 Months or Longer, Unrealized Losses | $ (350) |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Apr. 13, 2017 | Aug. 24, 2015 | Dec. 30, 2014 | Oct. 15, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | ||||
Interest expense on derivatives | $ 173 | $ 95 | $ 326 | $ 326 |
Derivatives (Details) - Summary
Derivatives (Details) - Summary of interest rate swap designated as a cash flow hedges - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Summary of interest rate swap designated as a cash flow hedges [Abstract] | |||
Notional amount | $ 100,000 | $ 100,000 | $ 100,000 |
Weighted average pay rates | 1.68% | 1.52% | 1.66% |
Weighted average receive rates | 2.12% | 1.07% | 1.23% |
Weighted average maturity | 1 year 8 months 12 days | 2 years 8 months 12 days | 2 years 4 months 24 days |
Fair value | $ 1,906 | $ 164 | $ 798 |
Derivatives (Details) - Summa_2
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income - Interest Rate Contracts [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income and statements of income relating to cash flow derivative instruments [Line Items] | ||
Amount of gain recognized in OCI (Effective Portion) | $ 796 | $ 45 |
Amount of gain reclassified from OCI to interest income | ||
Amount of gain recognized in other Noninterest income (Ineffective Portion) |
Derivatives (Details) - Summa_3
Derivatives (Details) - Summary of cash flow hedges included in the consolidated balance sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
DERIVATIVES (Details) - Summary of cash flow hedges included in the consolidated balance sheets [Line Items] | ||
Interest rate swaps related to FHLB advances included in assets, Fair Value | $ 1,906 | $ 798 |
Interest Rate Swap [Member] | ||
DERIVATIVES (Details) - Summary of cash flow hedges included in the consolidated balance sheets [Line Items] | ||
Interest rate swaps related to FHLB advances included in assets, Notional Amount | 100,000 | 100,000 |
Interest rate swaps related to FHLB advances included in assets, Fair Value | $ 1,906 | $ 798 |
Loans and the Allowance for L_3
Loans and the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items] | |||||
Non Accrual Contractual Due | 90 days | ||||
Loans Pledged as Collateral | $ 2,200,000 | $ 2,200,000 | $ 1,900,000 | ||
Loans performing under the restructured terms | 11,200 | $ 12,800 | 14,900 | $ 13,300 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 21,100 | 4,800 | 5,600 | 500 | |
Troubled debt restructurings | 32,300 | $ 17,600 | 20,500 | $ 13,800 | |
Allowance for Loan and Lease Losses Period Increase Decrease Due to Trouble Debt Restructuring | $ 0 | 147 | |||
Reduction in specific reserve allocations | 136 | ||||
Charge-off related to taxi medallion loan portfolio | 17,000 | ||||
Commercial loans held-for-sale segment [Member] | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items] | |||||
Loans held-for-sale net of valuation allowance | $ 17,000 | ||||
Commercial Portfolio Segment [Member] | |||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items] | |||||
Allowance for Loan and Lease Losses Period Increase Decrease Due to Trouble Debt Restructuring | $ 11,200 |
Loans and the Allowance for L_4
Loans and the Allowance for Loan Losses (Details) - Composition of loan portfolio - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 4,465,774 | $ 4,174,810 |
Net deferred loan fees | (3,287) | (3,354) |
Total loans receivable | 4,462,487 | 4,171,456 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 933,169 | 824,082 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 2,739,943 | 2,592,909 |
Commercial Construction Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 494,206 | 483,216 |
Residential Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 295,948 | 271,795 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 2,508 | $ 2,808 |
Loans and the Allowance for L_5
Loans and the Allowance for Loan Losses (Details) - Loans held-for-sale - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | $ 270 | $ 24,845 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | 24,475 | |
Residential Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | $ 270 | $ 370 |
Loans and the Allowance for L_6
Loans and the Allowance for Loan Losses (Details) - Schedule of Activity in the valuation allowance - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of accretable yield, or income expected to be collected [Abstract] | ||||
Balance at beginning of period | $ 12,325 | |||
Reduction from loans paid off | (38) | (38) | ||
Increase in valuation allowance | 3,000 | 15,325 | ||
Balance at end of period | $ 15,287 | $ 15,287 |
Loans and the Allowance for L_7
Loans and the Allowance for Loan Losses (Details) - Purchased Credit-Impaired Loans - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Table] | ||
Commercial | $ 2,524 | $ 2,683 |
Loans and the Allowance for L_8
Loans and the Allowance for Loan Losses (Details) - Schedule of accretable yield, or income expected to be collected - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of accretable yield, or income expected to be collected [Abstract] | ||||
Balance at beginning of period | $ 1,259 | $ 2,496 | $ 1,387 | $ 2,860 |
Accretion of income | (63) | (180) | (191) | (544) |
Balance at end of period | $ 1,196 | $ 2,316 | $ 1,196 | $ 2,316 |
Loans and the Allowance for L_9
Loans and the Allowance for Loan Losses (Details) - Loans receivable on nonaccrual status - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 53,015 | $ 65,613 |
Commercial Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 29,562 | 47,363 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 15,927 | 12,757 |
Commercial Construction Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,934 | |
Residential Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 4,592 | $ 5,493 |
Loans and the Allowance for _10
Loans and the Allowance for Loan Losses (Details) - Credit quality indicators - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | $ 4,465,774 | $ 4,174,810 | |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 933,169 | [1] | 824,082 |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 2,739,943 | 2,592,909 | |
Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 494,206 | 483,216 | |
Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 295,948 | 271,795 | |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 2,508 | 2,808 | |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 4,361,295 | 4,045,989 | |
Pass [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 887,024 | [1] | 767,020 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 2,699,338 | 2,534,973 | |
Pass [Member] | Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 481,226 | 475,066 | |
Pass [Member] | Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 291,223 | 266,163 | |
Pass [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 2,484 | 2,767 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 28,748 | 43,620 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 12,639 | [1] | 3,764 |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 10,651 | 34,335 | |
Special Mention [Member] | Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 5,458 | 5,521 | |
Special Mention [Member] | Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | |||
Special Mention [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | |||
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 75,731 | 85,201 | |
Substandard [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 33,506 | [1] | 53,298 |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 29,954 | 23,601 | |
Substandard [Member] | Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 7,522 | 2,629 | |
Substandard [Member] | Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 4,725 | 5,632 | |
Substandard [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 24 | 41 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | |||
Doubtful [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | [1] | ||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | |||
Doubtful [Member] | Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | |||
Doubtful [Member] | Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | |||
Doubtful [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | |||
[1] | Reflects a $17.0 million charge-off related to the taxi medallion loans classified as "substandard". |
Loans and the Allowance for _11
Loans and the Allowance for Loan Losses (Details) - Schedule of analysis of impaired loans, by class - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Financing Receivable, Impaired [Line Items] | ||||||
No related allowance recorded, Recorded Investment | $ 65,619 | $ 65,619 | $ 83,531 | |||
No related allowance recorded, Unpaid Principal Balance | 127,050 | 127,050 | 135,146 | |||
Impaired loans with No Related Allowance Average Recorded Investment | 65,872 | $ 29,264 | 74,868 | $ 28,840 | ||
Impaired loans with No Related Allowance Interest Income Recognized | 233 | 321 | 964 | 762 | ||
With an allowance recorded, Recorded Investment | 8,792 | 8,792 | ||||
With an allowance recorded, Unpaid Principal Balance | 8,795 | 8,795 | ||||
With an allowance recorded, Related Allowance | 741 | 741 | ||||
Impaired loans With An Allowance Recorded Average Recorded Investment | 8,798 | 1,645 | 8,811 | 1,654 | ||
Impaired loans With An Allowance Recorded Interest Income Recognized | 11 | 2 | 34 | 39 | ||
Total, Recorded Investment | 74,411 | 74,411 | 84,664 | |||
Total, Unpaid Principal Balance | 135,845 | 135,845 | 136,279 | |||
Total, Related Allowance | 741 | 741 | 39 | |||
Total Impaired Loans Average Recorded Investment | 74,670 | 30,909 | 83,679 | 30,494 | ||
Total Impaired Loans Interest Income Recognized | 244 | 323 | 998 | 801 | ||
Commercial Portfolio Segment [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
No related allowance recorded, Recorded Investment | 31,471 | 31,471 | 49,761 | |||
No related allowance recorded, Unpaid Principal Balance | 92,452 | 92,452 | 101,066 | |||
Impaired loans with No Related Allowance Average Recorded Investment | [1] | 31,769 | 3,100 | 39,132 | 3,149 | |
Impaired loans with No Related Allowance Interest Income Recognized | [1] | 36 | 34 | 102 | 115 | |
Total, Recorded Investment | 31,471 | 31,471 | 49,761 | |||
Total, Unpaid Principal Balance | 92,452 | 92,452 | 101,066 | |||
Total, Related Allowance | ||||||
Total Impaired Loans Average Recorded Investment | [1] | 31,769 | 3,100 | 39,132 | 3,149 | |
Total Impaired Loans Interest Income Recognized | [1] | 36 | 34 | 102 | 115 | |
Commercial Real Estate Portfolio Segment [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
No related allowance recorded, Recorded Investment | 21,483 | 21,483 | 23,905 | |||
No related allowance recorded, Unpaid Principal Balance | 21,636 | 21,636 | 23,976 | |||
Impaired loans with No Related Allowance Average Recorded Investment | 21,557 | 19,302 | 21,714 | 18,813 | ||
Impaired loans with No Related Allowance Interest Income Recognized | 105 | 221 | 475 | 424 | ||
With an allowance recorded, Recorded Investment | 8,529 | 8,529 | 1,133 | |||
With an allowance recorded, Unpaid Principal Balance | 8,529 | 8,529 | 1,133 | |||
With an allowance recorded, Related Allowance | 709 | 709 | 39 | |||
Impaired loans With An Allowance Recorded Average Recorded Investment | 8,534 | 1,645 | 8,544 | 1,654 | ||
Impaired loans With An Allowance Recorded Interest Income Recognized | 11 | 2 | 34 | 39 | ||
Total, Recorded Investment | 30,012 | 30,012 | 25,038 | |||
Total, Unpaid Principal Balance | 30,165 | 30,165 | 25,109 | |||
Total, Related Allowance | 709 | 709 | 39 | |||
Total Impaired Loans Average Recorded Investment | 30,091 | 20,947 | 30,258 | 20,467 | ||
Total Impaired Loans Interest Income Recognized | 116 | 223 | 509 | 463 | ||
Commercial Construction Portfolio Segment [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
No related allowance recorded, Recorded Investment | 10,428 | 10,428 | 6,662 | |||
No related allowance recorded, Unpaid Principal Balance | 10,429 | 10,429 | 6,662 | |||
Impaired loans with No Related Allowance Average Recorded Investment | 10,297 | 4,285 | 11,718 | 4,273 | ||
Impaired loans with No Related Allowance Interest Income Recognized | 92 | 63 | 387 | 215 | ||
Total, Recorded Investment | 10,428 | 10,428 | 6,662 | |||
Total, Unpaid Principal Balance | 10,429 | 10,429 | 6,662 | |||
Total, Related Allowance | ||||||
Total Impaired Loans Average Recorded Investment | 10,297 | 4,285 | 11,718 | 4,273 | ||
Total Impaired Loans Interest Income Recognized | 92 | 63 | 387 | 215 | ||
Residential Real Estate Portfolio Segment [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
No related allowance recorded, Recorded Investment | 2,237 | 2,237 | 3,203 | |||
No related allowance recorded, Unpaid Principal Balance | 2,533 | 2,533 | 3,442 | |||
Impaired loans with No Related Allowance Average Recorded Investment | 2,249 | 2,529 | 2,304 | 2,551 | ||
Impaired loans with No Related Allowance Interest Income Recognized | 2 | 6 | ||||
With an allowance recorded, Recorded Investment | 263 | 263 | ||||
With an allowance recorded, Unpaid Principal Balance | 266 | 266 | ||||
With an allowance recorded, Related Allowance | 32 | 32 | ||||
Impaired loans With An Allowance Recorded Average Recorded Investment | 264 | 267 | ||||
Impaired loans With An Allowance Recorded Interest Income Recognized | ||||||
Total, Recorded Investment | 2,500 | 2,500 | 3,203 | |||
Total, Unpaid Principal Balance | 2,799 | 2,799 | 3,442 | |||
Total, Related Allowance | 32 | 32 | ||||
Total Impaired Loans Average Recorded Investment | 2,513 | 2,259 | 2,571 | 2,551 | ||
Total Impaired Loans Interest Income Recognized | 2 | 6 | ||||
Consumer Portfolio Segment [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
No related allowance recorded, Recorded Investment | ||||||
No related allowance recorded, Unpaid Principal Balance | ||||||
Impaired loans with No Related Allowance Average Recorded Investment | 48 | 54 | ||||
Impaired loans with No Related Allowance Interest Income Recognized | 1 | 2 | ||||
Total, Recorded Investment | ||||||
Total, Unpaid Principal Balance | ||||||
Total, Related Allowance | ||||||
Total Impaired Loans Average Recorded Investment | 48 | 54 | ||||
Total Impaired Loans Interest Income Recognized | $ 1 | $ 2 | ||||
[1] | Reflects the entire taxi medallion portfolio moving back to the loans held-for-investment category from the loans held-for-sale category in November 2017. |
Loans and the Allowance for _12
Loans and the Allowance for Loan Losses (Details) - Aging analysis - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $ 53,015 | $ 65,613 |
Total Past Due and Nonaccrual | 58,626 | 72,784 |
Current | 4,407,148 | 4,102,026 |
Gross Loans | 4,465,774 | 4,174,810 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 29,562 | 47,363 |
Total Past Due and Nonaccrual | 31,689 | 50,918 |
Current | 901,480 | 773,164 |
Gross Loans | 933,169 | 824,082 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 15,927 | 12,757 |
Total Past Due and Nonaccrual | 19,117 | 14,777 |
Current | 2,720,826 | 2,578,132 |
Gross Loans | 2,739,943 | 2,592,909 |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 2,934 | |
Total Past Due and Nonaccrual | 2,934 | |
Current | 491,272 | 483,216 |
Gross Loans | 494,206 | 483,216 |
Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 4,592 | 5,493 |
Total Past Due and Nonaccrual | 4,598 | 7,071 |
Current | 291,350 | 264,724 |
Gross Loans | 295,948 | 271,795 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | ||
Total Past Due and Nonaccrual | 288 | 18 |
Current | 2,220 | 2,790 |
Gross Loans | 2,508 | 2,808 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 527 | 3,849 |
30 - 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 233 | 1,708 |
30 - 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 545 | |
30 - 59 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
30 - 59 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 6 | 1,578 |
30 - 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 288 | 18 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,436 | 1,658 |
60 - 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 246 | 183 |
60 - 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,190 | 1,475 |
60 - 89 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
60 - 89 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
60 - 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 1,648 | 1,664 |
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 1,648 | 1,664 |
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Nonaccrual |
Loans and the Allowance for _13
Loans and the Allowance for Loan Losses (Details) - Allowance for loan and lease losses - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
ALLL | |||||||
ALLL, individually evaluated for impairment | $ 741 | $ 39 | |||||
ALLL, collectively evaluated for impairment | 32,858 | 29,909 | |||||
ALLL, acquired portfolio | 1,150 | 1,800 | |||||
ALLL, acquired with deteriorated credit quality | |||||||
Total | 34,749 | $ 33,594 | 31,748 | $ 29,870 | $ 28,401 | $ 25,744 | |
Gross loans | |||||||
Loans Receivable, individually evaluated for impairment | 74,411 | 84,664 | |||||
Loans Receivable, collectively evaluated for impairment | 4,063,264 | 3,639,851 | |||||
Loans Receivable, acquired portfolio | 325,575 | 447,612 | |||||
Loans Receivables, acquired with deteriorated credit quality | 2,524 | 2,683 | |||||
Total | 4,465,774 | 4,174,810 | |||||
Commercial Portfolio Segment [Member] | |||||||
ALLL | |||||||
ALLL, individually evaluated for impairment | |||||||
ALLL, collectively evaluated for impairment | 9,749 | 8,032 | |||||
ALLL, acquired portfolio | 200 | 200 | |||||
ALLL, acquired with deteriorated credit quality | |||||||
Total | 9,949 | 8,960 | 8,232 | 7,716 | 7,238 | 6,632 | |
Gross loans | |||||||
Loans Receivable, individually evaluated for impairment | 31,471 | 49,761 | |||||
Loans Receivable, collectively evaluated for impairment | 891,514 | 757,923 | |||||
Loans Receivable, acquired portfolio | 7,660 | 13,715 | |||||
Loans Receivables, acquired with deteriorated credit quality | 2,524 | 2,683 | |||||
Total | 933,169 | [1] | 824,082 | ||||
Commercial Real Estate Portfolio Segment [Member] | |||||||
ALLL | |||||||
ALLL, individually evaluated for impairment | 709 | 39 | |||||
ALLL, collectively evaluated for impairment | 16,569 | 15,472 | |||||
ALLL, acquired portfolio | 950 | 1,600 | |||||
ALLL, acquired with deteriorated credit quality | |||||||
Total | 18,228 | 18,221 | 17,111 | 16,834 | 15,389 | 12,583 | |
Gross loans | |||||||
Loans Receivable, individually evaluated for impairment | 30,012 | 25,038 | |||||
Loans Receivable, collectively evaluated for impairment | 2,438,638 | 2,190,686 | |||||
Loans Receivable, acquired portfolio | 271,293 | 377,185 | |||||
Loans Receivables, acquired with deteriorated credit quality | |||||||
Total | 2,739,943 | 2,592,909 | |||||
Commercial Construction Portfolio Segment [Member] | |||||||
ALLL | |||||||
ALLL, individually evaluated for impairment | |||||||
ALLL, collectively evaluated for impairment | 4,790 | 4,747 | |||||
ALLL, acquired portfolio | |||||||
ALLL, acquired with deteriorated credit quality | |||||||
Total | 4,790 | 4,812 | 4,747 | 3,940 | 4,241 | 4,789 | |
Gross loans | |||||||
Loans Receivable, individually evaluated for impairment | 10,428 | 6,662 | |||||
Loans Receivable, collectively evaluated for impairment | 483,778 | 476,554 | |||||
Loans Receivable, acquired portfolio | |||||||
Loans Receivables, acquired with deteriorated credit quality | |||||||
Total | 494,206 | 483,216 | |||||
Residential Real Estate Portfolio Segment [Member] | |||||||
ALLL | |||||||
ALLL, individually evaluated for impairment | 32 | ||||||
ALLL, collectively evaluated for impairment | 1,183 | 1,051 | |||||
ALLL, acquired portfolio | |||||||
ALLL, acquired with deteriorated credit quality | |||||||
Total | 1,215 | 1,167 | 1,051 | 1,052 | 985 | 958 | |
Gross loans | |||||||
Loans Receivable, individually evaluated for impairment | 2,500 | 3,203 | |||||
Loans Receivable, collectively evaluated for impairment | 247,211 | 212,350 | |||||
Loans Receivable, acquired portfolio | 46,237 | 56,242 | |||||
Loans Receivables, acquired with deteriorated credit quality | |||||||
Total | 295,948 | 271,795 | |||||
Consumer Portfolio Segment [Member] | |||||||
ALLL | |||||||
ALLL, individually evaluated for impairment | |||||||
ALLL, collectively evaluated for impairment | 3 | 2 | |||||
ALLL, acquired portfolio | |||||||
ALLL, acquired with deteriorated credit quality | |||||||
Total | 3 | 3 | 2 | 2 | 2 | 3 | |
Gross loans | |||||||
Loans Receivable, individually evaluated for impairment | |||||||
Loans Receivable, collectively evaluated for impairment | 2,123 | 2,338 | |||||
Loans Receivable, acquired portfolio | 385 | 470 | |||||
Loans Receivables, acquired with deteriorated credit quality | |||||||
Total | 2,508 | 2,808 | |||||
Unallocated [Member] | |||||||
ALLL | |||||||
ALLL, individually evaluated for impairment | |||||||
ALLL, collectively evaluated for impairment | 564 | 605 | |||||
ALLL, acquired portfolio | |||||||
ALLL, acquired with deteriorated credit quality | |||||||
Total | $ 564 | $ 431 | $ 605 | $ 326 | $ 546 | $ 779 | |
[1] | Reflects a $17.0 million charge-off related to the taxi medallion loans classified as "substandard". |
Loans and the Allowance for _14
Loans and the Allowance for Loan Losses (Details) - Schedule of allowance for loan losses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance | $ 33,594 | $ 28,401 | $ 31,748 | $ 25,744 |
Charge-offs | (6) | (1) | (17,091) | (83) |
Recoveries | 61 | 20 | 92 | 209 |
Provision for loan losses | 1,100 | 1,450 | 20,000 | 4,000 |
Balance | 34,749 | 29,870 | 34,749 | 29,870 |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance | 8,960 | 7,238 | 8,232 | 6,632 |
Charge-offs | (17,066) | |||
Recoveries | 56 | 17 | 87 | 158 |
Provision for loan losses | 933 | 461 | 18,695 | 926 |
Balance | 9,949 | 7,716 | 9,949 | 7,716 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance | 18,221 | 15,389 | 17,111 | 12,583 |
Charge-offs | (71) | |||
Recoveries | 2 | 50 | ||
Provision for loan losses | 7 | 1,443 | 1,116 | 4,272 |
Balance | 18,228 | 16,834 | 18,228 | 16,834 |
Commercial Construction Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance | 4,812 | 4,241 | 4,747 | 4,789 |
Charge-offs | ||||
Recoveries | ||||
Provision for loan losses | (22) | (301) | 43 | (849) |
Balance | 4,790 | 3,940 | 4,790 | 3,940 |
Residential Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance | 1,167 | 985 | 1,051 | 958 |
Charge-offs | (18) | |||
Recoveries | ||||
Provision for loan losses | 48 | 67 | 183 | 94 |
Balance | 1,215 | 1,052 | 1,215 | 1,052 |
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance | 3 | 2 | 2 | 3 |
Charge-offs | (6) | (1) | (7) | (12) |
Recoveries | 5 | 1 | 5 | 1 |
Provision for loan losses | 1 | 4 | 10 | |
Balance | 3 | 2 | 3 | 2 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Balance | 431 | 546 | 605 | 779 |
Charge-offs | ||||
Recoveries | ||||
Provision for loan losses | 133 | (220) | (41) | (453) |
Balance | $ 564 | $ 326 | $ 564 | $ 326 |
Loans and the Allowance for _15
Loans and the Allowance for Loan Losses (Details) - Loans by segment modified as troubled debt restructurings - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Recorded Investment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $ 20,518 | $ 13,818 |
Additions | 18,913 | 10,378 |
Payoffs/paydowns | (7,094) | (3,098) |
Transfers | (580) | |
Ending balance | 32,337 | 20,518 |
ALLL [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | ||
Additions | 11 | |
Payoffs/paydowns | ||
Transfers | ||
Ending balance | $ 11 |
Loans and the Allowance for _16
Loans and the Allowance for Loan Losses (Details) - Schedule of troubled debt restructuring by class $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)Integer | Sep. 30, 2017USD ($)Integer | |
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 37 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 18,239 | $ 5,648 |
Post-Modification Outstanding Recorded Investment | $ 18,239 | $ 5,648 |
Commercial Real Estate Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 209 | $ 3,042 |
Post-Modification Outstanding Recorded Investment | $ 209 | $ 3,042 |
Commercial Construction Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 1,839 | $ 2,589 |
Post-Modification Outstanding Recorded Investment | $ 1,839 | $ 2,589 |
Residential Real Estate Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 454 | $ 17 |
Post-Modification Outstanding Recorded Investment | $ 454 | $ 17 |
Commercial Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 31 | |
Pre-Modification Outstanding Recorded Investment | $ 15,737 | |
Post-Modification Outstanding Recorded Investment | $ 15,737 |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 8,792 | |
Impaired Financing Receivable, Related Allowance | 741 | $ 39 |
Impaired Loans [Member] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 8,800 | 1,100 |
Impaired Financing Receivable, Related Allowance | $ 700 | $ 39 |
Fair Value Measurements and F_4
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a recurring basis - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Securities available-for-sale, Fair Value | $ 410,039 | $ 435,284 |
Derivatives | 1,906 | 798 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 975 | 15,150 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 399,623 | 410,502 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 9,441 | 9,632 |
Federal agency obligations [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 47,534 | 56,022 |
Residential mortgage pass-through securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 190,551 | 181,891 |
Commercial mortgage pass-through securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 3,843 | 4,054 |
Obligations of U.S. states and political subdivisions [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 130,388 | 131,128 |
Corporate bonds and notes [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 25,962 | 29,693 |
Asset-backed securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 10,363 | 12,050 |
Certificates of deposit [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 423 | 625 |
Other securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 975 | 3,422 |
Trust preferred securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 4,671 | |
Equity securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 11,728 | |
Recurring [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 410,039 | 435,284 |
Equity securities | 11,403 | |
Derivatives | 1,906 | 798 |
Assets: Available-for-sale, Fair Value | 423,348 | 436,082 |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 975 | 15,150 |
Equity securities | 11,403 | |
Derivatives | ||
Assets: Available-for-sale, Fair Value | 12,378 | 15,150 |
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 399,623 | 410,502 |
Equity securities | ||
Derivatives | 1,906 | 798 |
Assets: Available-for-sale, Fair Value | 401,529 | 411,300 |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 9,441 | 9,632 |
Equity securities | ||
Derivatives | ||
Assets: Available-for-sale, Fair Value | 9,441 | 9,632 |
Recurring [Member] | Federal agency obligations [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 47,534 | 56,022 |
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 47,534 | 56,022 |
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Residential mortgage pass-through securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 190,551 | 181,891 |
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 190,551 | 181,891 |
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Commercial mortgage pass-through securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 3,843 | 4,054 |
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 3,843 | 4,054 |
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 130,388 | 131,128 |
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 120,947 | 121,496 |
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 9,441 | 9,632 |
Recurring [Member] | Corporate bonds and notes [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 25,962 | 29,693 |
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 25,962 | 29,693 |
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Asset-backed securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 10,363 | 12,050 |
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 10,363 | 12,050 |
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Certificates of deposit [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 423 | 625 |
Recurring [Member] | Other securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 975 | 3,422 |
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 975 | 3,422 |
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 423 | 625 |
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Trust preferred securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 4,671 | |
Recurring [Member] | Trust preferred securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Trust preferred securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 4,671 | |
Recurring [Member] | Trust preferred securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Equity securities [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 11,728 | |
Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | 11,728 | |
Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value | ||
Recurring [Member] | Equity securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Securities available-for-sale, Fair Value |
Fair Value Measurements and F_5
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Assets at Fair Value on Non-Recurring - Non-recurring [Member] - Impaired Loans [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Commercial Real Estate [Member] | ||
Assets measured at fair value on a nonrecurring basis: | ||
Assets measured at fair value | $ 7,820 | $ 1,094 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value on a nonrecurring basis: | ||
Assets measured at fair value | ||
Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value on a nonrecurring basis: | ||
Assets measured at fair value | ||
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on a nonrecurring basis: | ||
Assets measured at fair value | 7,820 | $ 1,094 |
Residential Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on a nonrecurring basis: | ||
Assets measured at fair value | 231 | |
Residential Real Estate Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on a nonrecurring basis: | ||
Assets measured at fair value | $ 231 |
Fair Value Measurements and F_6
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value recurring basis - Municipal Securities [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Balance of recurring Level 3 assets | $ 9,632 | $ 18,218 |
Principal paydowns | (191) | (8,586) |
Balance of recurring Level 3 assets | $ 9,441 | $ 9,632 |
Fair Value Measurements and F_7
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value on recurring item basis - Recurring [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Assets measured at fair value | $ 423,348 | $ 436,082 |
Municipal Securities [Member] | ||
Assets measured at fair value | $ 9,441 | $ 9,632 |
Valuation Techniques | Discounted cash flows | Discounted cash flows |
Unobservable Input | <tr> <td> Discount rate</td></tr> </table>" id="sjs-B7"><table cellpadding="1" cellspacing="0" style="border-collapse: collapse; font: 8.25pt Segoe UI"> <tr> <td> Discount rate</td></tr> </table> | <tr> <td> Discount rate</td></tr> </table>" id="sjs-C7"><table cellpadding="1" cellspacing="0" style="border-collapse: collapse; font: 8.25pt Segoe UI"> <tr> <td> Discount rate</td></tr> </table> |
Range | 2.90% | 2.90% |
Fair Value Measurements and F_8
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a non-recurring basis - Non-recurring [Member] - Impaired Loans [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Commercial Real Estate [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Fair Value | $ 7,820 | $ 1,094 |
Valuation Techniques | Sales comparison approach | Sales comparison approach |
Unobservable Input | Adjustment for differences between the comparable sales | Adjustment for differences between the comparable sales |
Commercial Real Estate [Member] | Sales comparison approach [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 10.00% | 5.00% |
Commercial Real Estate [Member] | Sales comparison approach [Member] | Minimum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 0.00% | 0.00% |
Commercial Real Estate [Member] | Sales comparison approach [Member] | Maximum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 20.00% | 10.00% |
Residential Real Estate Portfolio Segment [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Fair Value | $ 231 | |
Valuation Techniques | Sales comparison approach | |
Unobservable Input | Adjustment for differences between the comparable sales | |
Residential Real Estate Portfolio Segment [Member] | Sales comparison approach [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 2.00% | |
Residential Real Estate Portfolio Segment [Member] | Sales comparison approach [Member] | Minimum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 0.00% | |
Residential Real Estate Portfolio Segment [Member] | Sales comparison approach [Member] | Maximum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 7.00% |
Fair Value Measurements and F_9
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Carrying Amount | $ 155,848 | $ 149,582 | $ 141,262 | $ 200,399 |
Cash and cash equivalents, Fair Value | 155,848 | 149,582 | ||
Securities available-for-sale, Carrying Amount | 410,039 | 435,284 | ||
Securities available-for-sale, Fair Value | 410,039 | 435,284 | ||
Equity securities, Carrying Amount | 11,403 | |||
Equity securities, Fair Value | 11,403 | |||
Loans held-for-sale, Carrying Amount | 270 | 24,845 | ||
Loans held-for-sale, Fair Value | 270 | 24,845 | ||
Net loans, Carrying Amount | 4,427,738 | 4,139,708 | ||
Net loans, Fair Value | 4,304,357 | 4,118,542 | ||
Derivatives, Carrying Amount | 1,906 | 798 | ||
Derivatives, Fair Value | 1,906 | 798 | ||
Noninterest-bearing deposits, Carrying Amount | 758,213 | 776,843 | ||
Noninterest-bearing deposits, Fair Value | 758,213 | 776,843 | ||
Interest-bearing deposits, Carrying Amount | 3,230,552 | 3,018,285 | ||
Interest-bearing deposits, Fair Value | 3,222,141 | 3,018,285 | ||
Borrowings, Carrying Amount | 629,979 | 670,077 | ||
Borrowings, Fair Value | 626,841 | 669,680 | ||
Subordinated debentures, Carrying Amount | 128,474 | 54,699 | ||
Subordinated debentures, Fair Value | 129,165 | 57,340 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Fair Value | 155,848 | 149,582 | ||
Securities available-for-sale, Fair Value | 975 | 15,150 | ||
Equity securities, Fair Value | 11,403 | |||
Loans held-for-sale, Fair Value | ||||
Net loans, Fair Value | ||||
Derivatives, Fair Value | ||||
Noninterest-bearing deposits, Fair Value | 758,213 | 776,843 | ||
Interest-bearing deposits, Fair Value | 1,907,805 | 1,842,151 | ||
Borrowings, Fair Value | ||||
Subordinated debentures, Fair Value | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Fair Value | ||||
Securities available-for-sale, Fair Value | 399,623 | 410,502 | ||
Equity securities, Fair Value | ||||
Loans held-for-sale, Fair Value | 370 | |||
Net loans, Fair Value | ||||
Derivatives, Fair Value | 1,906 | 798 | ||
Noninterest-bearing deposits, Fair Value | ||||
Interest-bearing deposits, Fair Value | 1,314,336 | 1,176,134 | ||
Borrowings, Fair Value | 626,841 | 669,680 | ||
Subordinated debentures, Fair Value | 129,165 | 57,340 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Fair Value | ||||
Securities available-for-sale, Fair Value | 9,441 | 9,632 | ||
Equity securities, Fair Value | ||||
Loans held-for-sale, Fair Value | 270 | 24,475 | ||
Net loans, Fair Value | 4,304,357 | 4,118,542 | ||
Derivatives, Fair Value | ||||
Noninterest-bearing deposits, Fair Value | ||||
Interest-bearing deposits, Fair Value | ||||
Borrowings, Fair Value | ||||
Subordinated debentures, Fair Value |
Comprehensive Income (Details)
Comprehensive Income (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Comprehensive Income Loss Abstract | |
Increase in retained earnings | $ 709 |
Cumulative-effect adjustment to balance sheet | $ 55 |
Comprehensive Income (Details)
Comprehensive Income (Details) - Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items] | ||||
Sale of securities available-for-sale Net gains on sale of securities available-for-sale | $ (2,840) | $ 415 | $ (9,639) | $ 1,332 |
Sale of securities available-for-sale Income tax expense | 729 | (165) | 2,466 | (525) |
Total reclassification | (2,037) | 382 | (6,011) | 17 |
Amounts Reclassified from Accumulated Other Comprehensive Income/(Loss) [Member] | ||||
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items] | ||||
Sale of securities available-for-sale Net gains on sale of securities available-for-sale | 1,596 | |||
Sale of securities available-for-sale Income tax expense | (579) | |||
Sale of securities available-for-sale | 1,017 | |||
Amortization of pension plan net actuarial losses Salaries and employee benefits | 91 | (103) | 274 | (309) |
Amortization of pension plan net actuarial losses Income tax benefit | (26) | 42 | (77) | 126 |
Amortization of pension plan net actuarial losses | 65 | (61) | 197 | (183) |
Total reclassification | $ 65 | $ (61) | $ 197 | $ 834 |
Comprehensive Income (Details_2
Comprehensive Income (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract] | ||
Investment securities available-for-sale, net of tax | $ (8,208) | $ (902) |
Cash flow hedge, net of tax | 1,370 | 472 |
Defined benefit pension and post-retirement plans, net of tax | (3,846) | (3,589) |
Total accumulated other comprehensive loss | $ (10,684) | $ (4,019) |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Compensation expense | $ 600 | $ 500 | $ 1,300 | $ 1,300 | |
Shares granted | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award expiration Period | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Unrecognized compensation cost related to nonvested shares | $ 756 | $ 756 | |||
Weighted average period related to compesation cost | 2 years 4 months 24 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 196,077 | 196,077 | 299,778 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost (in Dollars) | $ 887 | $ 181 | |||
Restricted Stock [Member] | |||||
Shares granted | 29,423 | 0 | |||
Restricted shares granted | 0 | 1,000 | 23,018 | 56,164 | |
Unrecognized compensation cost related to nonvested shares | $ 920 | $ 920 | |||
Weighted average period related to compesation cost | 1 year 1 month 6 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 29,423 | 29,423 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 29,423 | 29,423 | |||
Performance Shares [Member] | |||||
Maximum number of shares of common stock or equivalents issued | 69,627 | ||||
Shares granted | 0 | 19,614 | |||
Unrecognized compensation cost related to nonvested shares | $ 822 | $ 822 | |||
Weighted average period related to compesation cost | 1 year 9 months 18 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 86,009 | 86,009 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 151,772 | 151,772 | |||
Performance unit shares to satisfy tax obligation created from vesting | 26,955 |
Stock Based Compensation (Det_2
Stock Based Compensation (Details) - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding Beginning Balance | 299,778 | |
Granted | ||
Exercised | (102,378) | (10,846) |
Forfeited/cancelled/expired | (1,323) | |
Outstanding Ending Balance | 196,077 | |
Exercisable Ending Balance | 196,077 | |
Outstanding Beginning Balance, Weighted-Average Exercise Price | $ 6.18 | |
Exercised, Weighted-Average Exercise Price | 5.12 | |
Forfeited/cancelled/expired, Weighted-Average Exercise Price | 14.24 | |
Outstanding Ending Balance, Weighted-Average Exercise Price | 6.68 | |
Exercisable Ending Balance, Weighted-Average Exercise Price | $ 6.68 | |
Outstanding Ending Balance - Weighted-Average Remaining Contractual Term (In Years) | 1 year 9 months 18 days | |
Exercisable Ending Balance - Weighted-Average Remaining Contractual Term (In Years) | 1 year 9 months 18 days | |
Outstanding Ending Balance - Aggregate Intrinsic Value | $ 3,346,546 | |
Exercisable Ending Balance - Aggregate Intrinsic Value | $ 3,346,546 |
Stock Based Compensation (Det_3
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Nonvested Shares | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Granted | |
Nonvested [Member] | |
Outstanding, beginning balance | 103,078 |
Granted | 23,018 |
Vested | (58,002) |
Forfeited/cancelled/expired | (666) |
Outstanding, ending balance | 67,428 |
Outstanding, beginning balance | $ / shares | $ 20.41 |
Granted | $ / shares | 28.08 |
Vested | $ / shares | 20.33 |
Forfeited/cancelled/expired | $ / shares | 24.25 |
Outstanding, ending balance | $ / shares | $ 23.07 |
Stock Based Compensation (Det_4
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Outstanding Beginning Balance | 299,778 | |
Awarded | ||
Outstanding Ending Balance | 196,077 | |
Unearned [Member] | ||
Outstanding Beginning Balance | 151,194 | |
Awarded | 19,614 | |
Change in Estimate | (15,172) | |
Vested | (69,627) | |
Outstanding Ending Balance | 86,009 | |
Outstanding, beginning balance | $ 19.19 | |
Awarded | 31.35 | |
Vested | 19.46 | |
Outstanding, ending balance | $ 22.06 | |
Restricted Stock [Member] | ||
Outstanding Beginning Balance | ||
Awarded | 29,423 | 0 |
Forfeited | ||
Vested | ||
Outstanding Ending Balance | 29,423 | |
Outstanding, beginning balance | ||
Awarded | 31.35 | |
Forfeited | ||
Vested | ||
Outstanding, ending balance | $ 31.35 |
Components of Net Periodic Pe_3
Components of Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Average daily balance during the year | ||||
Service cost | ||||
Interest cost | 106 | 119 | 320 | 358 |
Expected return on plan assets | (190) | (160) | (573) | (480) |
Net amortization | 91 | 103 | 274 | 309 |
Recognized settlement loss | 2 | |||
Net periodic pension cost | 7 | $ 62 | $ 21 | $ 189 |
Defined Benefit Plan, Contributions by Employer | $ 2,000 |
Components of Net Periodic Pe_4
Components of Net Periodic Pension Cost (Schedule of Changes as a result of ASU 2017-07) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other components of net periodic pension expense | $ 7 | $ 62 | $ 21 | $ 189 |
Salaries and employee benefits | $ 10,174 | 8,810 | $ 29,575 | 25,521 |
Accounting Standards Update 2017-07 [Member] | Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other components of net periodic pension expense | ||||
Salaries and employee benefits | $ 8,872 | $ 25,710 |
FHLB Borrowings (Details)
FHLB Borrowings (Details) $ in Millions | Sep. 30, 2018USD ($) |
Long-term Line of Credit | $ 170 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 100 |
FHLB Borrowings (Details) - Sch
FHLB Borrowings (Details) - Schedule of components of FHLB borrowings and weighted average interest rates - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
By type of borrowing: | ||
FHLB borrowings (in Dollars) | $ 629,979 | $ 670,077 |
Weighted average interest rates | 2.32% | 1.76% |
By remaining period to maturity: | ||
Less than 1 year (in Dollars) | $ 459,979 | $ 505,077 |
Less than 1 year | 2.24% | 1.59% |
1 year through less than 2 years (in Dollars) | $ 25,000 | $ 35,000 |
1 year through less than 2 years | 1.85% | 1.60% |
2 years through less than 3 years (in Dollars) | $ 95,000 | $ 85,000 |
2 years through less than 3 years | 2.76% | 2.65% |
3 years through less than 4 years (in Dollars) | $ 25,000 | $ 45,000 |
3 years through less than 4 years | 2.13% | 2.15% |
4 years through 5 years (in Dollars) | $ 25,000 | |
4 years through 5 years | 2.92% |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | [1] | Sep. 30, 2018 | Sep. 30, 2017 | [1] | ||
Service charges on deposits | |||||||
Overdraft fees | $ 222 | $ 228 | $ 590 | $ 587 | |||
Other | 186 | 193 | 482 | 552 | |||
Interchange income | 152 | 153 | 465 | 499 | |||
Net gains on sales of loans (a) | [2] | 2 | 50 | 31 | 120 | ||
Wire transfer fees (a) | [2] | 73 | 63 | 222 | 184 | ||
Loan servicing fees (a) | [2] | 16 | 47 | 64 | 97 | ||
Bank owned life insurance (a) | [2] | 751 | 985 | 2,300 | 2,402 | ||
Net gains on sales of securities (a) | [2] | 1,596 | |||||
Annuity and insurance income (a) | [2] | 39 | |||||
Other | 27 | 37 | 70 | 104 | |||
Total noninterest income | $ 1,429 | $ 1,756 | $ 4,224 | $ 6,180 | |||
[1] | The Company elected the modified respective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation. | ||||||
[2] | Not within scope of ASC 606. |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) $ in Thousands | Jan. 11, 2018 | Jun. 30, 2015 | Sep. 30, 2018 |
Fixed-to-floating Rate Subordinated Notes [Member] | |||
Subordinated Debentures (Details) [Line Items] | |||
Percentage Rate Added to Libor | 2.84% | ||
Proceeds from Issuance of Debt | $ 75,000 | $ 50,000 | |
Debt Instrument, Term | 5 years | ||
Debt Instrument, Maturity Date | Feb. 1, 2023 | Jul. 1, 2025 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.20% | 5.75% | |
Debt Instrument, Description of Variable Rate Basis | three month LIBOR rate plus 284 basis points | three month LIBOR rate plus 393 basis points | |
Debt Issuance Cost | $ 1,364 | $ 317 | |
Subordinated Debt from Trust [Member] | |||
Subordinated Debentures (Details) [Line Items] | |||
Value of subordinated debentures received by Trust | $ 5,000 | ||
Percentage Rate Added to Libor | 2.85% | ||
Floating interest rate on subordinated debentures | 5.19% | ||
Proceeds from Issuance of Debt | $ 5,200 | ||
Debt Instrument, Maturity Date | Jan. 23, 2034 |
Subordinated Debentures (Deta_2
Subordinated Debentures (Details) - Schedule of Subordinated Borrowing - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Schedule of Subordinated Borrowing [Abstract] | ||
Issuance Date | Dec. 19, 2003 | Dec. 19, 2003 |
Securities Issued | $ 5,000 | $ 5,000 |
Liquidation Value | $1,000 per Capital Security | $1,000 per Capital Security |
Coupon Rate | Floating 3-month LIBOR + 285 Basis Points | Floating 3-month LIBOR + 285 Basis Points |
Maturity | Jan. 23, 2034 | Jan. 23, 2034 |
Redeemable by Issuer Beginning | Jan. 23, 2009 | Jan. 23, 2009 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Gross Amounts Recognized, Assets | $ 1,906 | $ 798 |
Gross Amounts Offset in the Statement of Financial Position, Assets | ||
Net Amounts of Assets Presented in the Statement of Financial Position, Assets | 1,906 | 798 |
Financial Instruments Recognized, Assets | ||
Cash or Financial Instrument Collateral, Assets | ||
Net Amount, Assets | $ 1,906 | $ 798 |