Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | ||||
Entity Registrant Name | FIRST FINANCIAL CORP /IN/ | |||
Entity Central Index Key | 714,562 | |||
Current Fiscal Year End Date | --12-31 | |||
Entity Filer Category | Accelerated Filer | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | false | |||
Document Type | 10-K | |||
Document Period End Date | Dec. 31, 2018 | |||
Document Fiscal Year Focus | 2,018 | |||
Document Fiscal Period Focus | FY | |||
Amendment Flag | false | |||
Entity Common Stock, Shares Outstanding (shares) | 12,287,649 | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Shell Company | false | |||
Entity Public Float | $ 511,949,246 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 74,388 | $ 74,107 |
Federal funds sold | 0 | 0 |
Securities available-for-sale | 784,916 | 814,931 |
Loans, net of allowance of $19,909 in 2017 and $18,773 in 2016 | 1,933,552 | 1,886,852 |
Restricted Stock | 10,390 | 10,379 |
Accrued interest receivable | 13,970 | 12,913 |
Premises and equipment, net | 46,554 | 48,272 |
Bank-owned life insurance | 86,186 | 85,016 |
Goodwill | 34,355 | 34,355 |
Other intangible assets | 1,197 | 1,630 |
Other real estate owned | 603 | 1,880 |
Other assets | 22,607 | 30,333 |
TOTAL ASSETS | 3,008,718 | 3,000,668 |
Deposits: | ||
Non-interest-bearing | 431,923 | 425,001 |
Interest-bearing: | ||
Certificates of deposit that meet or exceed the FDIC insurance limit | 42,284 | 43,178 |
Interest-bearing Domestic Deposit, Other | 1,962,520 | 1,990,474 |
Total Deposits | 2,436,727 | 2,458,653 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase | 69,656 | 57,686 |
Other borrowings | 0 | 0 |
Other liabilities | 59,634 | 70,760 |
TOTAL LIABILITIES | 2,566,017 | 2,587,099 |
Shareholders’ equity | ||
Common stock, $1.25 stated value per share, Authorized shares- 40,000,000, Issued shares - 14,612,540 in 2018 and 14,595,320 in 2017, Outstanding shares - 12,278,295 in 2018 and 12,246,464 in 2017 | 1,824 | 1,822 |
Additional paid-in capital | 76,774 | 75,624 |
Retained earnings | 456,716 | 420,275 |
Accumulated other comprehensive income (loss) | (23,454) | (14,704) |
Less: Treasury shares at cost-2,334,245 in 2018 and 2,348,856 in 2017 | (69,159) | (69,448) |
TOTAL SHAREHOLDERS’ EQUITY | 442,701 | 413,569 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 3,008,718 | $ 3,000,668 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses (in dollars) | $ 20,436 | $ 19,909 |
Common stock, stated value per share (usd per share) | $ 0.125 | $ 0.125 |
Common stock, Authorized shares (shares) | 40,000,000 | 40,000,000 |
Common stock, Issued shares (shares) | 14,612,540 | 14,595,320 |
Common stock, Outstanding shares (shares) | 12,278,295 | 12,246,464 |
Treasury stock (shares) | 2,334,245 | 2,348,856 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INTEREST AND DIVIDEND INCOME: | |||
Loans, including related fees | $ 100,541 | $ 91,100 | $ 86,128 |
Securities: | |||
Taxable | 16,942 | 14,325 | 14,506 |
Tax-exempt | 7,455 | 7,391 | 7,269 |
Other | 1,286 | 1,379 | 1,477 |
TOTAL INTEREST AND DIVIDEND INCOME | 126,224 | 114,195 | 109,380 |
INTEREST EXPENSE: | |||
Deposits | 9,032 | 6,011 | 4,159 |
Short-term borrowings | 501 | 245 | 134 |
Other borrowings | 112 | 82 | 114 |
TOTAL INTEREST EXPENSE | 9,645 | 6,338 | 4,407 |
NET INTEREST INCOME | 116,579 | 107,857 | 104,973 |
Provision for loan losses | 5,768 | 5,295 | 3,300 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 110,811 | 102,562 | 101,673 |
Trust And Financial Services Revenue | 5,286 | 5,001 | 5,208 |
Service Charges And Fees On Deposit Accounts | 11,733 | 11,895 | 10,530 |
Service Charges And Fees, Other | 13,012 | 12,499 | 12,307 |
NON-INTEREST INCOME: | |||
Securities gain (loss), net | 2 | 59 | 34 |
Insurance commissions | 144 | 74 | 2,346 |
Gain on Sale of certain assets and liabilities of Insurance Brokerage Operation | 0 | 0 | 12,822 |
Gain on sale of mortgage loans | 1,829 | 1,688 | 1,842 |
Other | 6,200 | 4,722 | 1,842 |
TOTAL NON-INTEREST INCOME | 38,206 | 35,938 | 46,931 |
Labor and Related Expense | 50,658 | 50,116 | 50,091 |
NON-INTEREST EXPENSES: | |||
Occupancy expense | 7,030 | 6,897 | 6,865 |
Equipment expense | 6,827 | 7,186 | 7,300 |
Federal Deposit Insurance | 929 | 915 | 1,300 |
Other | 25,845 | 23,633 | 24,752 |
TOTAL NON-INTEREST EXPENSE | 91,289 | 88,747 | 90,308 |
INCOME BEFORE INCOME TAXES | 57,728 | 49,753 | 58,296 |
Provision for income taxes | 11,145 | 20,622 | 19,883 |
NET INCOME | 46,583 | 29,131 | 38,413 |
OTHER COMPREHENSIVE INCOME | |||
Change in unrealized gains/losses on securities, net of reclassifications and taxes | (8,861) | 3,335 | (10,130) |
Change in funded status of post-retirement benefits, net of taxes | 2,477 | (3,875) | 5,367 |
COMPREHENSIVE INCOME | $ 40,199 | $ 28,591 | $ 33,650 |
EARNINGS PER SHARE: | |||
BASIC AND DILUTED (in dollars per share) | $ 3.80 | $ 2.38 | $ 3.12 |
Weighted average number of shares outstanding (in shares) | 12,256 | 12,225 | 12,317 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock |
Balance at Dec. 31, 2015 | $ 410,316 | $ 1,817 | $ 73,396 | $ 395,633 | $ (9,401) | $ (51,129) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 38,413 | 0 | 0 | 38,413 | 0 | 0 |
Other comprehensive income (loss) | (4,763) | 0 | 0 | 0 | (4,763) | 0 |
Treasury Stock, Value, Acquired, Cost Method | (19,396) | (19,396) | ||||
Contribution of shares to ESOP | 684 | 3 | 681 | 0 | 0 | 0 |
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | 1,361 | 0 | 448 | 0 | 0 | 913 |
Cash Dividends | (12,220) | 0 | 0 | (12,220) | 0 | 0 |
Balance at Dec. 31, 2016 | 414,395 | 1,820 | 74,525 | 421,826 | (14,164) | (69,612) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 29,131 | 0 | 0 | 29,131 | 0 | 0 |
Other comprehensive income (loss) | (540) | 0 | 0 | 0 | (540) | 0 |
Treasury Stock, Value, Acquired, Cost Method | (503) | 0 | 0 | 0 | 0 | (503) |
Contribution of shares to ESOP | 706 | 2 | 704 | 0 | 0 | 0 |
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | 1,062 | 0 | 395 | 0 | 0 | 667 |
Cash Dividends | (30,682) | 0 | 0 | (30,682) | 0 | 0 |
Balance at Dec. 31, 2017 | 413,569 | 1,822 | 75,624 | 420,275 | (14,704) | (69,448) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 46,583 | 0 | 0 | 46,583 | 0 | 0 |
Other comprehensive income (loss) | (6,384) | 0 | 0 | 0 | (6,384) | 0 |
Treasury Stock, Value, Acquired, Cost Method | (391) | 0 | 0 | 0 | 0 | (391) |
Contribution of shares to ESOP | 745 | 2 | 743 | 0 | 0 | 0 |
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | 1,087 | 0 | 407 | 0 | 0 | 680 |
Cash Dividends | (12,508) | 0 | 0 | (12,508) | 0 | 0 |
Balance at Dec. 31, 2018 | $ 442,701 | $ 1,824 | $ 76,774 | $ 456,716 | $ (23,454) | $ (69,159) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Contribution to ESOP shares (shares) | 23,250 | 22,714 | 30,975 |
Cash Dividends (in dollars per share) | $ 1.02 | $ 2.51 | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $ 46,583 | $ 29,131 | $ 38,413 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net (accretion) amortization on securities | 3,622 | 3,786 | 3,695 |
Provision for loan losses | 5,768 | 5,295 | 3,300 |
Securities (gains) losses | (2) | (59) | (34) |
Depreciation and amortization | 4,164 | 4,426 | 4,968 |
Provision for deferred income taxes | (2,428) | (4,241) | (1,512) |
Net change in accrued interest receivable | (1,057) | (602) | (578) |
Contribution of shares to ESOP | 1,087 | 1,062 | 1,361 |
Gain on Sale of certain assets and liabilities of Insurance Brokerage Operation | 0 | 0 | (12,822) |
Stock compensation expense | 745 | 706 | 684 |
Gain on sale of mortgage loans | (1,829) | (1,688) | (1,842) |
Loss (gain) on sales of other real estate | 86 | 108 | 93 |
Origination of loans held for sale | (57,418) | (62,712) | (68,945) |
Proceeds from loans held for sale | 62,098 | 66,265 | 71,010 |
Other, net | (3,971) | 8,658 | 3,401 |
NET CASH FROM OPERATING ACTIVITIES | 57,448 | 50,135 | 41,192 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Sales of securities available-for-sale | 0 | 9,743 | 0 |
Calls, maturities and principal reductions on securities available-for-sale | 143,157 | 141,819 | 168,506 |
Purchases of securities available-for-sale | (124,333) | (111,138) | (150,893) |
Loans made to customers, net of payments | (52,905) | (72,463) | (80,434) |
Net change in federal funds sold | 0 | 6,952 | 2,863 |
Redemption of restricted stock | 0 | 0 | 500 |
Purchase of restricted stock | (11) | (20) | (21) |
Payments to Acquire Intangible Assets | 0 | 0 | 0 |
Proceeds from sale | 0 | 0 | 16,895 |
Sale of other real estate | 1,781 | 1,419 | 1,583 |
Additions to premises and equipment | (2,013) | (2,979) | (3,049) |
NET CASH FROM INVESTING ACTIVITIES | (34,324) | (26,667) | (44,050) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits | (21,926) | 30,121 | (13,906) |
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase | 11,970 | (23,303) | 47,158 |
Dividends paid | (12,496) | (30,556) | (12,359) |
Purchases of treasury stock | (391) | (503) | (19,396) |
Proceeds from FHLBank Borrowings, Financing Activities | 115,600 | 170,000 | 54,350 |
Payments of FHLBank Borrowings, Financing Activities | 115,600 | 170,132 | 66,672 |
NET CASH FROM FINANCING ACTIVITIES | (22,843) | (24,373) | (10,825) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 281 | (905) | (13,683) |
CASH AND DUE FROM BANKS, BEGINNING OF YEAR | 74,107 | 75,012 | 88,695 |
CASH AND DUE FROM BANKS, END OF YEAR | 74,388 | 74,107 | 75,012 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND NONCASH INFORMATION: | |||
Interest | 9,408 | 6,337 | 4,432 |
Income Taxes | $ 7,185 | $ 11,158 | $ 18,739 |
BUSINESS AND SIGNIFICANT ACCOUN
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: BUSINESS Organization: The consolidated financial statements of First Financial Corporation and its subsidiaries (the Corporation) include the parent company and its wholly-owned subsidiaries, First Financial Bank, N.A. headquartered in Vigo County, Indiana, The Morris Plan Company of Terre Haute (Morris Plan), First Chanticleer Corporation, a property rental entity headquartered in Terre Haute, Indiana, and FFB Risk Management Co., Inc., a captive insurance subsidiary headquartered in Las Vegas, Nevada. Inter-company transactions and balances have been eliminated. First Financial Bank also has two investment subsidiaries, Portfolio Management Specialists A (Specialists A) and Portfolio Management Specialists B (Specialists B), which were established to hold and manage certain assets as part of a strategy to better manage various income streams and provide opportunities for capital creation as needed. Specialists A and Specialists B subsequently entered into a limited partnership agreement, Global Portfolio Limited Partners. Portfolio Management Specialists B also owns First Financial Real Estate, LLC. At December 31, 2018 , $778.3 million of securities and loans were owned by these subsidiaries. Specialists A, Specialists B, Global Portfolio Limited Partners and First Financial Real Estate LLC are included in the consolidated financial statements. The Corporation, which is headquartered in Terre Haute, Indiana, offers a wide variety of financial services including commercial, mortgage and consumer lending, lease financing, trust account services and depositor services through its four subsidiaries. The Corporation's primary source of revenue is derived from loans to customers and investment activities. The Corporation operates 66 branches in west-central Indiana and east-central Illinois. First Financial Bank is the largest bank in Vigo County. It operates 11 full-service banking branches within the county; one in Daviess County, Indiana.; three in Clay County, Indiana; one in Gibson County, Indiana.; one in Greene County, Indiana; two in Knox County, Indiana; four in Parke County, Indiana; one in Putnam County, Indiana; four in Sullivan County, Indiana; one in Vanderburgh County, Indiana,; four in Vermillion County, Indiana; four in Champaign County, Illinois; one in Clark County, Illinois; three in Coles County, Illinois; two in Crawford County, Illinois; two in Franklin County, Illinois; one in Jasper County, Illinois; two in Jefferson County, Illinois; one in Lawrence County, Illinois; two in Livingston County, Illinois; two in Marion County, Illinois; three in McLean County, Illinois; two in Richland County, Illinois; six in Vermilion County, Illinois; and one in Wayne County, Illinois. It also has a main office in downtown Terre Haute and an operations center/office building in southern Terre Haute. Regulatory Agencies: First Financial Corporation is a multi-bank holding company and as such is regulated by various banking agencies. The holding company is regulated by the Seventh District of the Federal Reserve System. The national bank subsidiary is regulated by the Office of the Comptroller of the Currency. The state bank subsidiary is jointly regulated by the state banking organization and the Federal Deposit Insurance Corporation. FFB Risk Management Company is regulated by the State of Nevada Division of Insurance. SIGNIFICANT ACCOUNTING POLICIES Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. Cash Flows : Cash and cash equivalents include cash and demand deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings. Non-cash transactions include loans transferred to other real estate of $0.6 million , $0.9 million and $0.7 million for the years ended December 31, 2018 , 2017 and 2016 respectively. Securities : The Corporation classifies all securities as "available for sale." Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value with unrealized holdings gains and losses, net of taxes, reported in other comprehensive income within shareholders' equity. Interest income includes amortization of purchase premium or discount. Premiums and discounts are amortized on the level yield method without anticipating prepayments. Mortgage-backed securities are amortized over the expected life. Realized gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Loans: Loans that management has the intent and ability to hold for the foreseeable future until maturity or pay-off are reported at the principal balance outstanding, net of unearned interest, purchase premiums and discounts, deferred loan fees and costs, and allowance for loan losses. Loans held for sale are reported at the lower of cost or fair value, on an aggregate basis. Interest income is accrued on the unpaid principal balance and includes amortization of net deferred loan fees and costs over the loan term without anticipating prepayments. The recorded investment in loans includes accrued interest receivable and net deferred loan fees and costs. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired or payments are significantly past due. Past-due status is based on the contractual terms of the loan. All interest accrued but not received for loans placed on non-accrual 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. In all cases, loans are placed on non-accrual or charged-off if collection of principal or interest is considered doubtful. The above policies are consistent for all segments of loans. Certain Purchased Loans: The Corporation purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased loans are accounted for individually. The Corporation estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of amount paid are 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). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a provision for loan loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Concentration of Credit Risk: Most of the Corporation's business activity is with customers located within west central Indiana and east central Illinois. Therefore, the Corporation's exposure to credit risk is significantly affected by changes in the economy of this area. A major economic downturn in this area would have a negative effect on the Corporation's loan portfolio. The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are predominately loans to expand a business or finance asset purchases. The underlying risk in the Commercial loan segment is primarily a function of the reliability and sustainability of the cash flows of the borrower and secondarily on the underlying collateral securing the transaction. From time to time, the cash flows of borrowers may be less than historical or as planned. In addition, the underlying collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets financed or other business assets and most commercial loans are further supported by a personal guarantee. However, in some instances, short term loans are made on an unsecured basis. Agriculture production loans are typically secured by growing crops and generally secured by other assets such as farm equipment. Production loans are subject to weather and market pricing risks. The Corporation has established underwriting standards and guidelines for all commercial loan types. The Corporation strives to maintain a geographically diverse commercial real estate portfolio. Commercial real estate loans are primarily underwritten based upon the cash flows of the underlying real estate or from the cash flows of the business conducted at the real estate. Generally, these types of loans will be fully guaranteed by the principal owners of the real estate and loan amounts must be supported by adequate collateral value. Commercial real estate loans may be adversely affected by factors in the local market, the regional economy, or industry specific factors. In addition, Commercial Construction loans are a specific type of commercial real estate loan which inherently carry more risk than loans for completed projects. Since these types of loans are underwritten utilizing estimated costs, feasibility studies, and estimated absorption rates, the underlying value of the project may change based upon the inaccuracy of these projections. Commercial construction loans are closely monitored, subject to industry standards, and disbursements are controlled during the construction process. Residential Retail real estate mortgages that are secured by 1-4 family residences are generally owner occupied and include residential real estate and residential real estate construction loans. The Corporation typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if the ratio is exceeded. The Corporation sells substantially all of its long-term fixed mortgages to secondary market purchasers. Mortgages sold to secondary market purchasers are underwritten to specific guidelines. The Corporation originates some mortgages that are maintained in the bank’s loan portfolio. Portfolio loans are generally adjustable rate mortgages and are underwritten to conform to Qualified Mortgage standards. Several factors are considered in underwriting all Mortgages including the value of the underlying real estate, debt-to-income ratio and credit history of the borrower. Repayment is primarily dependent upon the personal income of the borrower and can be impacted by changes in borrower’s circumstances such as changes in employment status and changes in real estate property values. Risk is mitigated by the sale of substantially all long-term fixed rate mortgages, the underwriting of portfolio loans to Qualified Mortgage standards and the fact that mortgages are generally smaller individual amounts spread over a large number of borrowers. Consumer The consumer portfolio primarily consists of home equity loans and lines (typically secured by a subordinate lien on a 1-4 family residence), secured loans (typically secured by automobiles, boats, recreational vehicles, or motorcycles), cash/CD secured, and unsecured loans. Pricing, loan terms, and loan to value guidelines vary by product line. The underlying value of collateral dependent loans may vary based on a number of economic conditions, including fluctuations in home prices and unemployment levels. Underwriting of consumer loans is based on the individual credit profile and analysis of the debt repayment capacity for each borrower. Payments for consumer loans is typically set-up on equal monthly installments, however, future repayment may be impacted by a change in economic conditions or a change in the personal income levels of individual customers. Overall risks within the consumer portfolio are mitigated by the mix of various loan products, lending in various markets and the overall make-up of the portfolio (small loan sizes and a large number of individual borrowers). Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan 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. The general component covers non-classified loans as well as non-impaired classified loans and is based on historical loss experience adjusted for current factors. A loan is impaired when full payment under the loan terms is not expected. Loans for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Impairment is evaluated in total for smaller-balance loans of similar nature such as residential mortgages and consumer loans, and on an individual basis for other loans. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows, using the loan's existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. The general component covers non-classified loans as well as non-impaired classified loans and is based on historical loss experience adjusted for current factors. The historical loss experience is based on the actual loss history experienced over the most recent four years. This actual loss experience is supplemented with other current factors based on the risks present for each portfolio segment. These current factors include consideration of the following: levels of and trends in delinquent, classified, and impaired loans; levels of and trends in charge-offs and recoveries; national and local economic trends and conditions; changes in lending policies and procedures; trends in volume and terms of loans; experience, ability, and depth of lending management and other relevant staff; credit concentrations; value of underlying collateral for collateral dependent loans; and other external factors such as competition and legal and regulatory requirements. The following portfolio segments have been identified: commercial loans, residential loans and consumer loans. A characteristic of the commercial loan segment is that the loans are for business purchases. A characteristic of the residential loan segment is that the loans are secured by residential properties. A characteristic of the consumer loan segment is that the loans are for automobiles and other consumer purchases. Commercial loans are generally well secured, which mitigates the risk of loss and has contributed to the low historical loss rate. However, concentrations in commercial real estate, along with the potential impact of rising interest rates to commercial real estate, raises the risk of loss on commercial loans. For these reasons, commercial loans have the highest adjustment to the historical loss rate. Continued weakness in local economic conditions along with declining auto values resulted in consumer loans having the next highest level of adjustment to the historical loss rate. The residential loan portfolio segment had the lowest level of adjustment to the historical loss rate. Troubled debt restructurings 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 troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. FDIC Indemnification Asset: The FDIC indemnification asset results from the loss share agreements in the 2009 FDIC-assisted transaction. The asset is measured separately from the related covered assets as they are not contractually embedded in the assets and are not transferable with the assets should the Corporation choose to dispose of them. It represents the acquisition date fair value of expected reimbursements from the FDIC which was determined to be $12.1 million . Pursuant to the terms of the loss sharing agreement, covered loans and other real estate are subject to a stated loss threshold whereby the FDIC will reimburse the Corporation for up to 95% of losses incurred. These expected reimbursements do not include reimbursable amounts related to future covered expenditures. These cash flows are discounted to reflect a metric of uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. This asset decreases when losses are realized and claims are paid by the FDIC or when customers repay their loans in full and expected losses do not occur. This asset also increases when estimated future losses increase. When estimated future losses increase, the Corporation records a provision for loan losses and increases its allowance for loan losses accordingly. The related increase or decrease in the FDIC indemnification asset is recorded as an (increase) or offset to the provision for loan losses. There were not any changes to the provision for loan losses related to the FDIC indemnification asset in 2018 , 2017 , and 2016 . At December 31, 2018 , 2017 , and 2016 , the balance of the indemnification asset was not material and is included in other assets. Foreclosed Assets: Assets acquired through or instead of loan foreclosures are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the useful lives of the assets, which range from 3 to 5 years for furniture and equipment and 33 to 39 years for buildings and leasehold improvements. Restricted Stock: Restricted stock includes Federal Home Loan Bank (FHLB) of Indianapolis and Federal Reserve stock. This restricted stock is carried at cost and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Servicing Rights: Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on third-party valuations that incorporate assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds and default rates and losses. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with Other Service Charges and Fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is included in Other Service Charges and Fees on the income statement, is for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Servicing fees totaled $1.3 million , $1.3 million and $1.3 million for the years ended December 31, 2018 , 2017 and 2016 . Late fees and ancillary fees related to loan servicing are not material. Stock based compensation: Compensation cost is recognized for restricted stock awards and units issued to employees based on the fair value of these awards at the date of grant. Market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the requisite service period. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Corporation, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Bank-Owned Life Insurance: The Corporation has purchased life insurance policies on certain key executives. Bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Income on the investments in life insurance is included in other interest income. Goodwill and Other Intangible Assets: Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 represents the future economic benefits arising from other assets acquired that are not individually identified and separately recognized. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Corporation has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Other intangible assets consist of core deposit assets arising from the whole bank and branch acquisitions. They are initially measured at fair value and then are amortized on an accelerated basis over their estimated useful lives, which are 10 and 12 years, respectively. Long-Term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Benefit Plans: Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The amount contributed is determined by a formula as decided by the Board of Directors. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. Employee Stock Ownership Plan: Shares of treasury stock are issued to the ESOP and compensation expense is recognized based upon the total market price of shares when contributed. Deferred Compensation Plan: Prior to 2011, a deferred compensation plan covered all directors. Under the plan, the Corporation pays each director, or their beneficiary, the amount of fees deferred plus interest over 10 years, beginning when the director achieves age 65 . A liability is accrued for the obligation under these plans. The expense incurred for the deferred compensation for each of the last three years was $98 thousand , $95 thousand and $114 thousand , resulting in a deferred compensation liability of $1.9 million at December 31, 2018 and $2.0 million at December 31, 2017 . There are no deferred compensation plans now in effect for directors. Incentive Plans: A long-term incentive plan established in 2000 provides for the payment of incentive rewards as a 15 -year annuity to all directors and certain key officers. That plan was in place through December 31, 2009, and compensation expense is recognized over the service period. Payments under the plan generally did not begin until the earlier of January 1, 2015, or the January 1 immediately following the year in which the participant reaches age 65 . There was no compensation expense related to this plan for 2018 , 2017 and 2016 . There is a liability of $8.5 million and $11.4 million as of year-end 2018 and 2017 . In 2011 the Corporation adopted the 2011 Short-term Incentive Plan and the 2011 Omnibus Equity Incentive Plan designed to reward key officers based on certain performance measures. The short-term portion of the plan is paid out within 75 days of year end and the long-term plan vests over a three year period and is paid out within 75 days of the end of each vesting period. The compensation expense related to the plans in 2018 , 2017 and 2016 was $1.7 million , $1.6 million and $1.5 million , respectively, and resulted in a liability of $899 thousand at December 31, 2018 and $836 thousand at December 31, 2017 . The Omnibus Equity Incentive Plan is a long term incentive plan that was designed to align the interests of participants with the interest of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense. Loan Commitments and Related Financial Instruments: Financial instruments include credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Earnings Per Share: Earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. The Corporation does not have any potentially dilutive securities as the restricted stock awards are included in outstanding shares.. Earnings and dividends per share are restated for stock splits and dividends through the date of issue of the financial statements. Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the retirement plans, net of taxes, which are also recognized as separate components of equity. Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount of range of loss can be reasonably estimated. Management does not believe there are currently such matters that will have a material effect on the financial statements. Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders. Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or market conditions could significantly affect the estimates. Operating Segment: While the Corporation's chief decision-makers monitor the revenue streams of the various products and services, the operating results of significant segments are similar and operations are managed and financial performance is evaluated on a corporate-wide basis. Accordingly, all of the Corporation's financial service operations are considered by management to be aggregated in one reportable operating segment, which is banking. Accounting Pronouncements Adopted: On January 1, 2018, the Corporation adopted ASU No. 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 Corporation's revenues come from interest income and other sources, including loans, leases, securities and derivatives, that are outside the scope of ASC 606. The Corporation's services that fall within the scope of ASC 606 are presented within Non-Interest Income and are recognized as revenue as the Corporation satisfies its obligation to the customer. Services within the scope of ASC 606 include service charges on deposits, asset management fees, interchange income, and the sale of OREO. Refer to Note 8 Revenue from Contracts with Cus |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS: | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS: Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair value of securities available-for-sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). For those securities that cannot be priced using quoted market prices or observable inputs, a Level 3 valuation is determined. These securities are primarily trust preferred securities, which are priced using Level 3 due to current market illiquidity, and state and municipal securities. The fair value of the trust preferred securities is obtained from a third party provider without adjustment. Management obtains values from other pricing sources to validate the Standard & Poors pricing that they currently utilizes. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurement. The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs). December 31, 2018 Fair Value Measurement Using (Dollar amounts in thousands) Level 1 Level 2 Level 3 Carrying Value U.S. Government entity mortgage-backed securities $ — $ 25,364 $ — $ 25,364 Mortgage-backed securities, residential — 178,743 — 178,743 Collateralized mortgage obligations — 343,616 — 343,616 State and municipal obligations — 230,800 3,135 233,935 Collateralized debt obligations — — 3,258 3,258 TOTAL $ — $ 778,523 $ 6,393 $ 784,916 Derivative Assets $ 218 Derivative Liabilities (218 ) December 31, 2017 Fair Value Measurement Using (Dollar amounts in thousands) Level 1 Level 2 Level 3 Carrying Value U.S. Government entity mortgage-backed securities $ — $ 13,695 $ — $ 13,695 Mortgage-backed securities, residential — 215,338 — 215,338 Mortgage-backed securities, commercial — 1 — 1 Collateralized mortgage obligations — 339,670 — 339,670 State and municipal obligations — 227,942 3,680 231,622 Collateralized debt obligations — — 14,605 14,605 TOTAL $ — $ 796,646 $ 18,285 $ 814,931 Derivative Assets $ 298 Derivative Liabilities (298 ) There were no transfers between Level 1 and Level 2 during 2018 and 2017 . The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2018 and 2017 . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2018 State and municipal obligations Collateralized debt obligations Total Beginning balance, January 1 $ 3,680 $ 14,605 $ 18,285 Total realized/unrealized gains or losses Included in earnings — — — Included in other comprehensive income — (2,840 ) (2,840 ) Purchases — — — Settlements (545 ) (8,507 ) (9,052 ) Ending balance, December 31 $ 3,135 $ 3,258 $ 6,393 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2017 State and municipal obligations Collateralized debt obligations Total Beginning balance, January 1 $ 4,210 $ 12,368 $ 16,578 Total realized/unrealized gains or losses Included in earnings — — — Included in other comprehensive income — 2,773 2,773 Transfers — — — Settlements (530 ) (536 ) (1,066 ) Ending balance, December 31 $ 3,680 $ 14,605 $ 18,285 There were no unrealized gains and losses recorded in earnings for the years ended December 31, 2018 , 2017 or 2016 . Impaired loans disclosed in footnote 7, which are measured for impairment using the fair value of collateral, are valued at Level 3. They are carried at a fair value of $1.6 million , after a valuation allowance of $0.7 million at December 31, 2018 and at a fair value of $3.9 million , net of a valuation allowance of $0.6 million at December 31, 2017 . The impact to the provision for loan losses for the twelve months ended December 31, 2018 and December 31, 2017 was a $112 thousand increase and a $294 thousand increase, respectively. Other real estate owned is valued at Level 3. Other real estate owned at December 31, 2018 with a value of $603 thousand was reduced $598 thousand for fair value adjustment. At December 31, 2018 other real estate owned was comprised of $171 thousand from commercial loans and $432 thousand from residential loans. Other real estate owned at December 31, 2017 with a value of $1.9 million was reduced $951 thousand for fair value adjustment. At December 31, 2017 other real estate owned was comprised of $1.7 million from commercial loans and $212 thousand from residential loans. Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50% . Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts than real estate collateral. Other real estate and impaired loans carried at fair value are primarily comprised of smaller balance properties. The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2018 and 2017 . 2018 Fair Value Valuation Technique(s) Unobservable Input(s) Range State and municipal obligations $ 3,135 Discounted cash flow Discount rate 2.64%-4.80% Probability of default — % Other real estate $ 603 Sales comparison/income approach Discount rate for age of appraisal and market conditions 5.00%-20.00% Impaired Loans $ 1,639 Sales comparison/income approach Discount rate for age of appraisal and market conditions 0.00%-50.00% 2017 Fair Value Valuation Technique(s) Unobservable Input(s) Range State and municipal obligations $ 3,680 Discounted cash flow Discount rate 2.30%-5.45% Probability of default — % Other real estate $ 1,880 Sales comparison/income approach Discount rate for age of appraisal and market conditions 5.00%-20.00% Impaired Loans $ 3,882 Sales comparison/income approach Discount rate for age of appraisal and market conditions 0.00%-50.00% The following tables present impaired collateral dependent loans measured at fair value on a non-recurring basis by class of loans as of December 31, 2018 and 2017 . December 31, 2018 (Dollar amounts in thousands) Carrying Value Allowance for Loan Losses Allocated Fair Value Commercial Commercial & Industrial $ 1,819 $ 593 $ 1,226 Farmland 211 44 167 Non Farm, Non Residential — — — Agriculture 346 100 246 All Other Commercial — — — Residential First Liens — — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 2,376 $ 737 $ 1,639 December 31, 2017 (Dollar amounts in thousands) Carrying Value Allowance for Loan Losses Allocated Fair Value Commercial Commercial & Industrial $ 493 $ 146 $ 347 Farmland 3,035 268 2,767 Non Farm, Non Residential — — — Agriculture 537 205 332 All Other Commercial — — — Residential First Liens 442 6 436 Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 4,507 $ 625 $ 3,882 The carrying amounts and estimated fair values of financial instruments are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, accrued interest receivable and payable, demand deposits, short-term and certain other borrowings, and variable-rate loans or deposits that reprice frequently and fully. Security fair values are determined as previously described. It is not practicable to determine the fair value of restricted stock due to restrictions placed on their transferability. For fixed-rate loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Loan fair value estimates represent an exit price for 2018, but do no necessarily represent exit price for years prior. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material. The carrying amount and estimated fair value of assets and liabilities are presented in the table below and were determined based on the above assumptions: December 31, 2018 Carrying Fair Value (Dollar amounts in thousands) Value Level 1 Level 2 Level 3 Total Cash and due from banks $ 74,388 $ 23,418 $ 50,970 $ — $ 74,388 Securities available-for-sale 784,916 — 778,523 6,393 784,916 Restricted stock 10,390 n/a n/a n/a n/a Loans, net 1,933,552 — — 1,889,795 1,889,795 Accrued interest receivable 13,970 — 3,005 10,965 13,970 Deposits (2,436,727 ) — (2,426,128 ) — (2,426,128 ) Short-term borrowings (69,656 ) — (69,656 ) — (69,656 ) Accrued interest payable (609 ) — (609 ) — (609 ) December 31, 2017 Carrying Fair Value (Dollar amounts in thousands) Value Level 1 Level 2 Level 3 Total Cash and due from banks $ 74,107 $ 20,682 $ 53,425 $ — $ 74,107 Securities available-for-sale 814,931 — 796,646 18,285 814,931 Restricted stock 10,379 n/a n/a n/a n/a Loans, net 1,886,852 — — 1,878,166 1,878,166 Accrued interest receivable 12,913 — 3,596 9,317 12,913 Deposits (2,458,653 ) — (2,456,900 ) — (2,456,900 ) Short-term borrowings (57,686 ) — (57,686 ) — (57,686 ) Accrued interest payable (372 ) — (372 ) — (372 ) |
RESTRICTIONS ON CASH AND DUE FR
RESTRICTIONS ON CASH AND DUE FROM BANKS: | 12 Months Ended |
Dec. 31, 2018 | |
Restrictions On Cash and Due From Banks Disclosure [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | RESTRICTIONS ON CASH AND DUE FROM BANKS: Certain affiliate banks are required to maintain average reserve balances with the Federal Reserve Bank. The amount of those reserve balances was approximately $12.8 million and $12.5 million at December 31, 2018 and 2017 , respectively. |
SECURITIES_
SECURITIES: | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES: The fair value of securities available-for-sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: December 31, 2018 Amortized Unrealized (Dollar amounts in thousands) Cost Gains Losses Fair Value U.S. Government entity mortgage-backed securities $ 25,617 $ 218 $ (471 ) $ 25,364 Mortgage-backed securities, residential 182,050 723 (4,030 ) 178,743 Collateralized mortgage obligations 352,823 217 (9,424 ) 343,616 State and municipal obligations 232,457 2,767 (1,289 ) 233,935 Collateralized debt obligations 137 3,121 — 3,258 TOTAL $ 793,084 $ 7,046 $ (15,214 ) $ 784,916 December 31, 2017 Amortized Unrealized (Dollar amounts in thousands) Cost Gains Losses Fair Value U.S. Government entity mortgage-backed securities $ 13,989 $ 24 $ (318 ) $ 13,695 Mortgage-backed securities, residential 215,079 2,071 (1,812 ) 215,338 Mortgage-backed securities, commercial 1 — — 1 Collateralized mortgage obligations 346,005 370 (6,705 ) 339,670 State and municipal obligations 227,651 4,671 (700 ) 231,622 Collateralized debt obligations 8,644 5,961 — 14,605 TOTAL $ 811,369 $ 13,097 $ (9,535 ) $ 814,931 As of December 31, 2018 , the Corporation does not have any securities from any issuer, other than the U.S. Government, with an aggregate book or fair value that exceeds ten percent of shareholders' equity. Securities with a carrying value of approximately $393.3 million and $423.9 million at December 31, 2018 and 2017 , respectively, were pledged as collateral for short-term borrowings and for other purposes. Below is a summary of the gross gains and losses realized by the Corporation on investment sales and calls during the years ended December 31, 2018 , 2017 and 2016 , respectively. (Dollar amounts in thousands) 2018 2017 2016 Proceeds $ 2,418 $ 15,348 $ 8,160 Gross gains 5 185 39 Gross losses (3 ) (126 ) (5 ) Gains of $5 thousand and losses of $3 thousand in 2018 and gains of $185 thousand and losses of $126 thousand in 2017 and gains of $39 thousand and losses of $5 thousand in 2016 resulted from redemption premiums on called and sold securities. Contractual maturities of debt securities at year-end 2018 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and collateralized mortgage obligations, are shown separately. Available-for-Sale Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 6,490 $ 6,509 Due after one but within five years 33,133 33,582 Due after five but within ten years 69,397 70,314 Due after ten years 149,191 152,152 258,211 262,557 Mortgage-backed securities and collateralized mortgage obligations 534,873 522,359 TOTAL $ 793,084 $ 784,916 The following tables show the securities' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at December 31, 2018 and 2017 . December 31, 2018 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollar amounts in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government entity mortgage-backed securities $ 3,052 $ (4 ) 11,356 (467 ) $ 14,408 $ (471 ) Mortgage-backed securities, residential 39,997 (553 ) 111,423 (3,477 ) 151,420 (4,030 ) Collateralized mortgage obligations 52,838 (455 ) 241,373 (8,969 ) 294,211 (9,424 ) State and municipal obligations 34,229 (276 ) 41,742 (1,013 ) 75,971 (1,289 ) Total temporarily impaired securities $ 130,116 $ (1,288 ) $ 405,894 $ (13,926 ) $ 536,010 $ (15,214 ) December 31, 2017 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollar amounts in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government entity mortgage-backed securities $ 9,321 $ (86 ) $ 3,538 $ (232 ) $ 12,859 $ (318 ) Mortgage-backed securities, residential 79,918 (425 ) 53,815 (1,387 ) 133,733 (1,812 ) Collateralized mortgage obligations 150,182 (1,418 ) 146,750 (5,287 ) 296,932 (6,705 ) State and municipal obligations 27,347 (183 ) 18,660 (517 ) 46,007 (700 ) Total temporarily impaired securities $ 266,768 $ (2,112 ) $ 222,763 $ (7,423 ) $ 489,531 $ (9,535 ) The Corporation held 335 investment securities with an amortized cost greater than fair value as of December 31, 2018 . The unrealized losses on collateralized mortgage obligations, all mortgage-backed securities and state and municipal obligations represent negative adjustments to fair value relative to the rate of interest paid on the securities and not losses related to the creditworthiness of the issuer. Gross unrealized losses on investment securities were $15.2 million as of December 31, 2018 and $9.5 million as of December 31, 2017 . Management does not intend to sell and it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery. Management believes the value will recover as the securities approach maturity or market rates change. Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments—Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets. In determining OTTI under the FASB ASC-320 model, management considers many factors, including: (1)the length of time and the extent to which the fair value has been less than cost, (2)the financial condition and near-term prospects of the issuer, (3) whether the fair value decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. The second segment of the portfolio uses the OTTI guidance provided by FASB ASC-325 that is specific to purchase beneficial interests that, on the purchase date, were rated below AA. Under the FASB ASC-325 model, the Corporation compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. In prior years, a significant portion of the total unrealized losses relates to collateralized debt obligations that were separately evaluated under FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets. Based upon qualitative considerations, such as a downgrade in credit rating or further defaults of underlying issuers during the year, and an analysis of expected cash flows, we determined that three CDOs included in collateralized debt obligations were other-than-temporarily impaired. One of the CDO's was called in first quarter 2017. A second was called in second quarter 2018. The remaining CDO has a contractual balance of $3.7 million at December 31, 2018 which has been reduced to $3.3 million by $612 thousand of interest payments received, $3.0 million of cumulative OTTI charges recorded through earnings to date and increased by $3.1 million recorded in other comprehensive income. The temporary impairment recorded in other comprehensive income is due to factors other than credit loss, mainly current market illiquidity. These securities are collateralized by trust preferred securities issued primarily by bank holding companies, but certain pools do include a limited number of insurance companies. The Corporation uses the OTTI evaluation model to compare the present value of expected cash flows to the previous estimate to determine if there are adverse changes in cash flows during the year. The OTTI model considers the structure and term of the CDO and the financial condition of the underlying issuers. Specifically, the model details interest rates, principal balances of note classes and underlying issuers, the timing and amount of interest and principal payments of the underlying issuers, and the allocation of the payments to the note classes. Cash flows are projected using a forward rate LIBOR curve, as these CDOs are variable-rate instruments. An average rate is then computed using this same forward rate curve to determine an appropriate discount rate ( 3 month LIBOR plus margin ranging from 160 to 180 basis points). The current estimate of expected cash flows is based on the most recent trustee reports and any other relevant market information, including announcements of interest payment deferrals or defaults of underlying trust preferred securities. Assumptions used in the model include expected future default rates and prepayments. We assume no recoveries on defaults and treat all interest payment deferrals as defaults. In addition we use the model to “stress” each CDO, or make assumptions more severe than expected activity, to determine the degree to which assumptions could deteriorate before the CDO could no longer fully support repayment of the Corporation’s note class. In the current year management determined there was no OTTI. There was no OTTI recorded in 2017 or 2016. Collateralized debt obligations include one additional investment in a CDO consisting of pooled trust preferred securities in which the issuers are primarily banks. This CDO was paid in full in 2015. In the first quarter of 2017 a CDO with no remaining book value was called with the bank receiving $3.1 million , which is included in other non-interest income on the consolidated statements of income and comprehensive income. In the second quarter of 2018 one of the obligations was called, resulting in the elimination of the OTTI associated with that obligation. A recovery of previously recorded OTTI of $4.2 million was received and recognized in non-interest income for the period. In addition the Corporation received $2.4 million of interest income associated with the call. Management has consistently used Standard & Poors pricing to value these investments. There are a number of other pricing sources available to determine fair value for these investments. These sources utilize a variety of methods to determine fair value. The result is a wide range of estimates of fair value for these securities. The Standard & Poors pricing was 81.46 while Moody’s Investor Service pricing was 21.14 , with others falling somewhere in between. We recognize that the Standard & Poors pricing utilized is an estimate, but have been consistent in using this source and its estimate of fair value. The table below presents a rollforward of the credit losses recognized in earnings for the years presented: (Dollar amounts in thousands) 2018 2017 2016 Beginning balance, January 1, $ 7,132 $ 13,974 $ 13,995 Amounts related to credit loss for which other-than- temporary impairment was not previously recognized — — — Reductions for securities called during the period (4,158 ) (6,842 ) Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security — — (21 ) Increases to the amount related to the credit loss for which other- than-temporary impairment was previously recognized — — — Ending balance, December 31, $ 2,974 $ 7,132 $ 13,974 |
LOANS_
LOANS: | 12 Months Ended |
Dec. 31, 2018 | |
Loans Receivable, Net [Abstract] | |
LOANS | Loans are summarized as follows: December 31, (Dollar amounts in thousands) 2018 2017 Commercial $ 1,166,352 $ 1,139,490 Residential 443,670 436,143 Consumer 341,041 327,976 Total gross loans 1,951,063 1,903,609 Deferred costs, net 2,925 3,152 Allowance for loan losses (20,436 ) (19,909 ) TOTAL $ 1,933,552 $ 1,886,852 Loans in the above summary include loans totaling $3.2 million and $4.3 million at December 31, 2018 and 2017 that are subject to the FDIC loss share arrangement (“covered loans”) discussed in footnote 6. The Corporation periodically sells residential mortgage loans it originates based on the overall loan demand of the Corporation and the outstanding balances in the residential mortgage portfolio. At December 31, 2018 and 2017 , loans held for sale included $3.2 million and $4.1 million , respectively, and are included in the totals above. In the normal course of business, the Corporation’s subsidiary banks make loans to directors and executive officers and to their associates. In 2018 , the aggregate dollar amount of these loans to directors and executive officers who held office amounted to $42.7 million at the beginning of the year. During 2018 , advances of $45.6 million , repayments of $35.3 million were made with respect to related party loans for an aggregate dollar amount outstanding of $53.0 million at December 31, 2018 . Loans serviced for others, which are not reported as assets, total $473.8 million and $484.4 million at year-end 2018 and 2017 . Custodial escrow balances maintained in connection with serviced loans were $3.0 million and $2.8 million at year-end 2018 and 2017 . Activity for capitalized mortgage servicing rights (included in other assets) was as follows: December 31, (Dollar amounts in thousands) 2018 2017 2016 Servicing rights: Beginning of year $ 1,434 $ 1,549 $ 1,746 Additions 513 477 480 Amortized to expense (516 ) (592 ) (677 ) End of year $ 1,431 $ 1,434 $ 1,549 Third party valuations are conducted periodically for mortgage servicing rights. Based on these valuations, fair values were approximately $2.3 million and $2.3 million at year end 2018 and 2017 . There was no valuation allowance in 2018 or 2017 . Fair value for 2018 was determined using a discount rate of 13% , prepayment speeds ranging from 88% to 189% , depending on the stratification of the specific right. Fair value at year end 2017 was determined using a discount rate of 13% , prepayment speeds ranging from 112% to 250% , depending on the stratification of the specific right. Mortgage servicing rights are amortized over 8 years, the expected life of the sold loans. |
ACQUISITIONS AND FDIC INDEMNIFI
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET | ACQUISITIONS, DIVESTITURES AND FDIC INDEMNIFICATION ASSET: The Bank is party to a loss sharing agreement with the Federal Deposit Insurance Corporation (“FDIC”) as a result of a 2009 acquisition. Under the loss-sharing agreement (“LSA”), the Bank will share in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $29 million , the FDIC agreed to reimburse the Bank for 80% of the losses. On losses exceeding $29 million , the FDIC agreed to reimburse the Bank for 95% of the losses. The loss-sharing agreement is subject to following servicing procedures as specified in the agreement with the FDIC. Loans acquired that are subject to the loss-sharing agreement with the FDIC are referred to as covered loans for disclosure purposes. Since the acquisition date the Bank has been reimbursed $24.3 million for losses and carrying expenses. In 2014 the non-single family (NSF) loss period ended eliminating future loss reimbursements only to the extent of recoveries received. There is no estimate for the loans subject to the loss-sharing agreement identified in the allowance for loan loss evaluation as future potential losses at December 31, 2018 . Loans covered by the loss share agreement excluding AS 310-30 loans at December 31, 2018 and 2017 totaled $3.2 million and $4.3 million , respectively. FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, applies to a loan with evidence of deterioration of credit quality since origination, acquired by completion of a transfer for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. FASB ASC 310-30 prohibits carrying over or creating an allowance for loan losses upon initial recognition. The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at December 31, 2018 and 2017 , are shown in the following tables: 2018 (Dollar amounts in thousands) Commercial Consumer Total Beginning balance $ 1,896 $ — $ 1,896 Discount accretion — — — Disposals (366 ) — (366 ) ASC 310-30 Loans $ 1,530 $ — $ 1,530 2017 (Dollar amounts in thousands) Commercial Consumer Total Beginning balance $ 3,451 $ 1,430 $ 4,881 Discount accretion — — — Disposals (1,555 ) (1,430 ) (2,985 ) ASC 310-30 Loans $ 1,896 $ — $ 1,896 During the quarter ended March 31, 2016 the Corporation sold a significant portion of the assets and liabilities of the insurance operation for a gain of $12.8 million . Settlement of the transaction has been completed and the original gain was reduced by $199 thousand during the third quarter of 2016. The total assets, total revenues and net income of the insurance operation for 2015 were $13.0 million , $7.6 million and $168 thousand , respectively. For 2014 they were $15.8 million , $8.3 million and $544 thousand , respectively. The Corporation has chosen to focus its resources on the core banking activities. The sale of the insurance operations eliminated the goodwill of $5.1 million from the original acquisition. |
ALLOWANCE FOR LOAN LOSSES_
ALLOWANCE FOR LOAN LOSSES: | 12 Months Ended |
Dec. 31, 2018 | |
Allowance For Loan Losses Disclosure [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | The following table presents the activity of the allowance for loan losses by portfolio segment for the years ended December 31, 2018 , 2017 and 2016 . Allowance for Loan Losses: December 31, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Provision for loan losses 83 60 5,295 330 5,768 Loans charged -off (1,122 ) (841 ) (6,868 ) — (8,831 ) Recoveries 606 639 2,345 — 3,590 Ending Balance $ 9,848 $ 1,313 $ 7,481 $ 1,794 $ 20,436 Allowance for Loan Losses: December 31, 2017 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 9,731 $ 1,553 $ 5,767 $ 1,722 $ 18,773 Provision for loan losses 745 (179 ) 4,987 (258 ) 5,295 Loans charged -off (1,572 ) (761 ) (6,429 ) — (8,762 ) Recoveries 1,377 842 2,384 — 4,603 Ending Balance $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Allowance for Loan Losses: December 31, 2016 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 11,482 $ 1,834 $ 4,945 $ 1,685 $ 19,946 Provision for loan losses (755 ) 54 3,964 37 3,300 Loans charged -off (2,659 ) (1,011 ) (5,279 ) — (8,949 ) Recoveries 1,663 676 2,137 — 4,476 Ending Balance $ 9,731 $ 1,553 $ 5,767 $ 1,722 $ 18,773 The following tables present the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method at December 31, 2018 and 2017 : Allowance for Loan Losses: December 31, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 737 $ — $ — $ — $ 737 Collectively evaluated for impairment 9,111 1,313 7,481 1,794 19,699 Acquired with deteriorated credit quality — — — — — BALANCE AT END OF YEAR $ 9,848 $ 1,313 $ 7,481 $ 1,794 $ 20,436 Loans (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 6,101 $ 4,415 $ — $ 10,516 Collectively evaluated for impairment 1,166,227 440,497 342,473 1,949,197 Acquired with deteriorated credit quality 1,495 — — 1,495 BALANCE AT END OF YEAR $ 1,173,823 $ 444,912 $ 342,473 $ 1,961,208 Allowance for Loan Losses: December 31, 2017 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 619 $ 6 $ — $ — $ 625 Collectively evaluated for impairment 9,662 1,449 6,709 1,464 19,284 Acquired with deteriorated credit quality — — — — — BALANCE AT END OF YEAR $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Loans (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 9,619 $ 463 $ — $ 10,082 Collectively evaluated for impairment 1,134,701 436,944 329,435 1,901,080 Acquired with deteriorated credit quality 1,860 — — 1,860 BALANCE AT END OF YEAR $ 1,146,180 $ 437,407 $ 329,435 $ 1,913,022 The following tables present loans individually evaluated for impairment by class of loan. December 31, 2018 Allowance Cash Basis Unpaid for Loan Average Interest Interest Principal Recorded Losses Recorded Income Income Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 589 $ 589 $ — $ 698 $ — $ — Farmland 2,022 2,022 — 1,579 — — Non Farm, Non Residential — — — 1,443 — — Agriculture — — — 49 — — All Other Commercial 1,114 1,114 — 1,172 — — Residential First Liens 4,415 4,415 — 3,371 — — Home Equity — — — — — — Junior Liens — — — 23 — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 1,819 1,819 593 688 — — Farmland 211 211 44 1,691 — — Non Farm, Non Residential — — — — — Agriculture 346 346 100 316 — — All Other Commercial — — — — — — Residential First Liens — — — 88 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,516 $ 10,516 $ 737 $ 11,118 $ — $ — December 31, 2017 Allowance Cash Basis Unpaid for Loan Average Interest Interest Principal Recorded Losses Recorded Income Income Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 802 $ 802 $ — $ 971 $ — $ — Farmland 930 930 — 1,265 — — Non Farm, Non Residential 2,461 2,461 — 2,781 — — Agriculture 123 123 — 239 — — All Other Commercial 1,238 1,238 — 1,308 — — Residential First Liens 21 21 — 23 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 493 493 146 514 — — Farmland 3,035 3,035 268 669 — — Non Farm, Non Residential — — — 131 — Agriculture 738 537 205 279 — — All Other Commercial — — — — — — Residential First Liens 442 442 6 483 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,283 $ 10,082 $ 625 $ 8,663 $ — $ — December 31, 2016 Cash Basis Average Interest Interest Recorded Income Income Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 981 $ — $ — Farmland 770 — — Non Farm, Non Residential 3,096 — — Agriculture 351 — — All Other Commercial 1,477 — — Residential First Liens 27 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — With an allowance recorded: Commercial Commercial & Industrial 819 — — Farmland — — — Non Farm, Non Residential 1,016 — Agriculture 114 — — All Other Commercial 45 — — Residential First Liens 647 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 9,343 $ — $ — The following tables present the recorded investment in nonperforming loans by class of loans. December 31, 2018 Loans Past Troubled Debt Due Over 90 Day Still Restructured (Dollar amounts in thousands) Accruing Accrual Non-accrual Non-accrual Commercial Commercial & Industrial $ — $ 1 $ 144 $ 2,902 Farmland — — — 2,391 Non Farm, Non Residential — — — 81 Agriculture — — — 355 All Other Commercial — — — 1,122 Residential First Liens 581 3,327 531 3,393 Home Equity 41 — — 75 Junior Liens 53 55 — 86 Multifamily — — — — All Other Residential — — — 64 Consumer Motor Vehicle 177 1 — 125 All Other Consumer — 268 349 380 TOTAL $ 852 $ 3,652 $ 1,024 $ 10,974 December 31, 2017 Loans Past Troubled Debt Due Over 90 Day Still Restructured (Dollar amounts in thousands) Accruing Accrual Non-accrual Non-accrual Commercial Commercial & Industrial $ 41 $ 2 $ 212 $ 1,679 Farmland 19 — — 4,141 Non Farm, Non Residential — 56 2,440 172 Agriculture — — — 707 All Other Commercial — — — 1,236 Residential First Liens 1,011 3,105 575 3,972 Home Equity 8 — — 249 Junior Liens 137 — — 134 Multifamily — — — — All Other Residential — — — 90 Consumer Motor Vehicle 268 9 — 242 All Other Consumer — 177 527 623 TOTAL $ 1,484 $ 3,349 $ 3,754 $ 13,245 Covered loans included in loans past due over 90 days still on accrual are $19 thousand at December 31, 2018 and $88 thousand at December 31, 2017 . Covered loans included in non-accrual loans are $91 thousand at December 31, 2018 and $62 thousand at December 31, 2017 . No covered loans are deemed impaired at December 31, 2018 and 2017 . Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. During the years ending December 31, 2018 , 2017 , and 2016 the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's. 2018 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 2,709 $ 3,611 $ 714 $ 7,034 Added — 984 295 1,279 Charged Off — (16 ) (137 ) (153 ) Payments (2,564 ) (536 ) (254 ) (3,354 ) December 31, $ 145 $ 4,043 $ 618 $ 4,806 2017 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 3,386 $ 4,447 $ 732 $ 8,565 Added — 227 386 613 Charged Off — (289 ) (141 ) (430 ) Payments (677 ) (774 ) (263 ) (1,714 ) December 31, $ 2,709 $ 3,611 $ 714 $ 7,034 2016 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 3,584 $ 5,593 $ 683 $ 9,860 Added — 123 369 492 Charged Off — (321 ) (70 ) (391 ) Payments (198 ) (948 ) (250 ) (1,396 ) December 31, $ 3,386 $ 4,447 $ 732 $ 8,565 Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2018 , 2017 or 2016 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years . Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years . During the years ended December 31, 2018 , 2017 and 2016 the Corporation modified 53 , 43 , and 42 loans respectively as troubled debt restructurings. All of the loans modified were smaller balance residential and consumer loans. There were no loans that were charged off within 12 months of the modification for 2018 , 2017 , or 2016 . The Corporation had no allocation of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at December 31, 2018 , 2017 , and 2016 . The Corporation has not committed to lend additional amounts as of December 31, 2018 and 2017 to customers with outstanding loans that are classified as troubled debt restructurings. The following tables present the aging of the recorded investment in loans by past due category and class of loans. Greater December 31, 2018 30-59 Days 60-89 Days than 90 days Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 1,017 $ 420 $ 345 $ 1,782 $ 518,239 $ 520,021 Farmland 515 8 2,136 2,659 104,981 107,640 Non Farm, Non Residential — — 57 57 188,706 188,763 Agriculture 41 — 347 388 148,345 148,733 All Other Commercial 30 3 — 33 208,633 208,666 Residential First Liens 3,365 429 1,473 5,267 231,684 236,951 Home Equity 155 8 110 273 39,378 39,651 Junior Liens 132 225 63 420 49,111 49,531 Multifamily — — — — 109,609 109,609 All Other Residential — 9 15 24 9,146 9,170 Consumer Motor Vehicle 4,766 609 177 5,552 309,238 314,790 All Other Consumer 208 7 12 227 27,456 27,683 TOTAL $ 10,229 $ 1,718 $ 4,735 $ 16,682 $ 1,944,526 $ 1,961,208 Greater December 31, 2017 30-59 Days 60-89 Days than 90 days Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 372 $ 80 $ 640 $ 1,092 $ 474,709 $ 475,801 Farmland 341 — 3,671 4,012 104,457 108,469 Non Farm, Non Residential 141 — — 141 200,804 200,945 Agriculture 141 — 561 702 152,388 153,090 All Other Commercial — — — — 207,875 207,875 Residential First Liens 5,467 1,317 1,434 8,218 247,029 255,247 Home Equity 310 46 8 364 35,752 36,116 Junior Liens 274 106 194 574 41,688 42,262 Multifamily — — — — 90,141 90,141 All Other Residential 300 — 12 312 13,329 13,641 Consumer Motor Vehicle 4,770 697 294 5,761 298,211 303,972 All Other Consumer 107 22 — 129 25,334 25,463 TOTAL $ 12,223 $ 2,268 $ 6,814 $ 21,305 $ 1,891,717 $ 1,913,022 Credit Quality Indicators: The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand . Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values. Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer, may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. As of December 31, 2018 and 2017 , and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: December 31, 2018 Special (Dollar amounts in thousands) Pass Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 472,008 $ 20,600 $ 18,374 $ — $ 7,428 $ 518,410 Farmland 90,367 7,587 7,783 — 19 105,756 Non Farm, Non Residential 170,757 5,442 10,439 — 1,695 188,333 Agriculture 118,952 10,010 16,637 — 457 146,056 All Other Commercial 198,302 43 6,777 — 2,675 207,797 Residential First Liens 43,915 1,043 3,504 — 187,685 236,147 Home Equity 963 — 148 — 38,471 39,582 Junior Liens 1,983 74 224 76 47,060 49,417 Multifamily 109,361 — — — 17 109,378 All Other Residential — — 15 — 9,131 9,146 Consumer Motor Vehicle — — 627 — 312,863 313,490 All Other Consumer — — 34 — 27,517 27,551 TOTAL $ 1,206,608 $ 44,799 $ 64,562 $ 76 $ 635,018 $ 1,951,063 In February 2019, based on the receipt and analysis of current financial statements from a borrower, loans totaling $9 million were downgraded from special mention to substandard. The impact to the allowance for loan losses related to this downgrade was not material. December 31, 2017 Special (Dollar amounts in thousands) Pass Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 430,015 $ 19,889 $ 18,611 $ 38 $ 5,947 $ 474,500 Farmland 88,338 10,782 7,466 — 10 106,596 Non Farm, Non Residential 179,181 7,689 13,632 — — 200,502 Agriculture 111,724 17,482 21,388 — 342 150,936 All Other Commercial 194,170 2,723 7,459 — 2,604 206,956 Residential First Liens 45,320 750 3,980 5 204,329 254,384 Home Equity 319 — 64 — 35,653 36,036 Junior Liens 1,882 76 342 100 39,755 42,155 Multifamily 89,936 — — — 36 89,972 All Other Residential — — 67 — 13,529 13,596 Consumer Motor Vehicle — — 731 — 301,900 302,631 All Other Consumer — — 44 — 25,301 25,345 TOTAL $ 1,140,885 $ 59,391 $ 73,784 $ 143 $ 629,406 $ 1,903,609 |
PREMISES AND EQUIPMENT_
PREMISES AND EQUIPMENT: | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Gross [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT: Premises and equipment are summarized as follows: December 31, (Dollar amounts in thousands) 2018 2017 Land $ 11,975 $ 12,118 Building and leasehold improvements 56,061 55,854 Furniture and equipment 44,772 46,399 112,808 114,371 Less accumulated depreciation (66,254 ) (66,099 ) TOTAL $ 46,554 $ 48,272 Aggregate depreciation expense was $3.73 million , $3.95 million and $4.34 million for 2018 , 2017 and 2016 , respectively. The Company leases certain branch properties and equipment under operating leases. Rent expense was $1.0 million , $1.0 million , and $0.9 million for 2018 , 2017 , and 2016 . Rent commitments, before considering renewal options that generally are present, were as follows: 2019 $ 839 2020 671 2021 572 2022 446 2023 398 Thereafter 944 $ 3,870 |
GOODWILL AND INTANGIBLE ASSETS_
GOODWILL AND INTANGIBLE ASSETS: | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS: The Corporation completed its annual impairment testing of goodwill during the fourth quarter of 2018 and 2017 . Management does not believe any amount of goodwill is impaired. Intangible assets subject to amortization at December 31, 2018 and 2017 are as follows: 2018 2017 Gross Accumulated Gross Accumulated (Dollar amounts in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 10,836 $ 9,639 $ 10,836 $ 9,206 $ 10,836 $ 9,639 $ 10,836 $ 9,206 Aggregate amortization expense was $433 thousand , $479 thousand and $627 thousand for 2018 , 2017 and 2016 , respectively. Estimated amortization expense for the next five years is as follows: In thousands 2019 $ 350 2020 252 2021 232 2022 224 2023 139 |
DEPOSITS_
DEPOSITS: | 12 Months Ended |
Dec. 31, 2018 | |
Maturities of Time Deposits [Abstract] | |
DEPOSITS | DEPOSITS: Scheduled maturities of time deposits for the next five years are as follows: (dollar amounts in thousands) 2019 $ 172,270 2020 55,804 2021 29,465 2022 29,084 2023 13,960 |
SHORT-TERM BORROWINGS_
SHORT-TERM BORROWINGS: | 12 Months Ended |
Dec. 31, 2018 | |
Short Term Borrowings Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS: A summary of the carrying value of the Corporation's short-term borrowings at December 31, 2018 and 2017 is presented below: (Dollar amounts in thousands) 2018 2017 Federal funds purchased $ 43,250 $ 30,165 Repurchase-agreements 26,406 27,521 $ 69,656 $ 57,686 (Dollar amounts in thousands) 2018 2017 Average amount outstanding $ 41,557 $ 39,704 Maximum amount outstanding at a month end 69,656 85,714 Average interest rate during year 1.24 % 0.62 % Interest rate at year-end 1.86 % 0.96 % Federal funds purchased are generally due in one day and bear interest at market rates. The Corporation enters into sales of securities under agreements to repurchase. The amounts received under these agreements represent short-term borrowings and are reflected as a liability in the consolidated balance sheets. The securities underlying these agreements are included in investment securities in the consolidated balance sheets. The Corporation has no control over the market value of the securities, which fluctuates due to market conditions. However, the Corporation is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price. The Corporation manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance. The Corporation maintains possession of and control over these securities. Collateral pledged to repurchase agreements by remaining maturity are as follows: December 31, 2018 Repurchase Agreements and Repurchase to Maturity Transactions Remaining Contractual Maturity of the Agreements (Dollar amounts in thousands) Overnight and continuous Up to 30 days 30 - 90 days Greater than 90 days Total Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations $ 10,870 $ 6,307 $ 8,683 $ 546 $ 26,406 December 31, 2017 Repurchase Agreements and Repurchase to Maturity Transactions Remaining Contractual Maturity of the Agreements (Dollar amounts in thousands) Overnight and continuous Up to 30 days 30 - 90 days Greater than 90 days Total Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations $ 11,929 $ 6,282 $ 8,552 $ 758 $ 27,521 |
OTHER BORROWINGS_
OTHER BORROWINGS: | 12 Months Ended |
Dec. 31, 2018 | |
Other Borrowings Disclosure [Abstract] | |
OTHER BORROWINGS | OTHER BORROWINGS: At December 31, 2018 and 2017 , other borrowings are summarized as follows: The Corporation's subsidiary banks are members of the Federal Home Loan Bank (FHLB) and accordingly are permitted to obtain advances. There are no advances from the FHLB at December 31, 2018 , and December 31, 2017 , which accrue interest, payable monthly, at annual rates, primarily fixed, varying from 1.6% to 2.4% in 2018 and 0.8% to 6.6% in 2017 . FHLB advances are, generally, due in full at maturity. They are secured by eligible securities totaling $99.4 million at December 31, 2018 , and $120.1 million at December 31, 2017 , and a blanket pledge on real estate loan collateral. Based on this collateral and the Corporation's holdings of FHLB stock, the Corporation is eligible to borrow up to $197.4 million at year end 2018 . Certain advances may be prepaid, without penalty, prior to maturity. The FHLB can adjust the interest rate from fixed to variable on certain advances, but those advances may then be prepaid, without penalty. |
INCOME TAXES_
INCOME TAXES: | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES: Income tax expense is summarized as follows: (Dollar amounts in thousands) 2018 2017 2016 Federal: Currently payable $ 7,018 $ 8,303 $ 15,514 Deferred 1,793 3,756 1,326 Expense due to enactment of federal tax reform — 6,282 — 8,811 18,341 16,840 State: Currently payable 1,699 1,818 2,857 Deferred 635 463 186 2,334 2,281 3,043 TOTAL $ 11,145 $ 20,622 $ 19,883 The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 21% for 2018 (35% for 2017 and 2016) to income before income taxes is summarized as follows: (Dollar amounts in thousands) 2018 2017 2016 Federal income taxes computed at the statutory rate $ 12,122 $ 17,414 $ 20,403 Add (deduct) tax effect of: Tax exempt income (2,495 ) (4,102 ) (3,992 ) Non-deductible insurance brokerage goodwill — — 1,797 ESOP dividend deduction (103 ) (102 ) (47 ) State tax, net of federal benefit 1,846 1,483 1,978 Affordable housing credits (148 ) (148 ) (148 ) Expense due to enactment of federal tax reform — 6,282 — Other, net (77 ) (205 ) (108 ) TOTAL $ 11,145 $ 20,622 $ 19,883 On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. The primary change for the Corporation was to lower the corporate income tax rate from 35% to 21%, effective January 1, 2018. The Corporation's deferred tax assets and liabilities were re-measured based on the income tax rates at which they are expected to reverse in the future, which is generally 21%. The amount recorded related to the re-measurement of the Corporation's deferred tax balance was $6.3 million, an increase to income tax expense for the year ended December 31, 2017. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2018 and 2017 , are as follows: (Dollar amounts in thousands) 2018 2017 Deferred tax assets: Other than temporary impairment $ 761 $ 1,829 Net unrealized losses on retirement plans 5,783 6,609 Net unrealized losses on securities available for sale 2,063 — Loan loss provisions 5,463 5,195 Deferred compensation 2,883 3,661 Compensated absences 576 563 Post-retirement benefits 1,338 1,359 Deferred loss on acquisition 577 663 Other 2,140 2,123 GROSS DEFERRED ASSETS 21,584 22,002 Deferred tax liabilities: Net unrealized gains on securities available-for-sale — (804 ) Depreciation (2,004 ) (1,989 ) Mortgage servicing rights (319 ) (308 ) Pensions (335 ) (201 ) Intangibles (2,852 ) (2,446 ) Other (2,614 ) (2,408 ) GROSS DEFERRED LIABILITIES (8,124 ) (8,156 ) NET DEFERRED TAX ASSETS $ 13,460 $ 13,846 Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollar amounts in thousands) 2018 2017 2016 Balance at January 1 $ 825 $ 698 $ 513 Additions based on tax positions related to the current year 174 257 288 Additions based on tax positions related to prior years — — — Reductions due to the statute of limitations (77 ) (130 ) (103 ) Balance at December 31 $ 922 $ 825 $ 698 Of this total, $922 thousand represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next 12 months. The total amount of interest and penalties recorded in the income statement for the years ended December 31, 2018 , 2017 and 2016 was an expense increase of $23 thousand, an increase of $4 thousand, and an increase of $4 thousand, respectively. The amount accrued for interest and penalties at December 31, 2018 , 2017 and 2016 was $52 thousand, $40 thousand and $31 thousand, respectively. The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the states of Indiana and Illinois. The Corporation is no longer subject to examination by taxing authorities for years before 2015. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: The Corporation is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include conditional commitments and commercial letters of credit. The financial instruments involve to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the financial statements. The Corporation's maximum exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to make loans is limited generally by the contractual amount of those instruments. The Corporation follows the same credit policy to make such commitments as is followed for those loans recorded in the consolidated financial statements. Commitment and contingent liabilities are summarized as follows at December 31: (Dollar amounts in thousands) 2018 2017 Home Equity $ 57,341 $ 57,060 Commercial Operating Lines 285,524 246,855 Other Commitments 81,593 83,786 TOTAL $ 424,458 $ 387,701 Commercial letters of credit $ 4,673 $ 5,012 The majority of commercial operating lines and home equity lines are variable rate, while the majority of other commitments to fund loans are fixed rate. Fixed rate commitments had a range of interest rates from 4.50% to 7.75% in 2018 . In 2017 this range of rates was from 4.00% to 7.25% . Since many commitments to make loans expire without being used, these amounts do not necessarily represent future cash commitments. Collateral obtained upon exercise of the commitment is determined using management's credit evaluation of the borrower, and may include accounts receivable, inventory, property, land and other items. The approximate duration of these commitments is generally one year or less. Derivatives: The Corporation enters into derivative instruments for the benefit of its customers. At the inception of a derivative contract, the Corporation designates the derivative as an instrument with no hedging designation ("standalone derivative"). Changes in the fair value of derivatives are reported currently in earnings as non-interest income. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. First Financial Bank offers clients the ability on certain transactions to enter into interest rate swaps. Typically, these are pay fixed, receive floating swaps used in conjunction with commercial loans. These derivative contracts do not qualify for hedge accounting. The Bank hedges the exposure to these contracts by entering into offsetting contracts with substantially matching terms. The notional amount of these interest rate swaps was $19.0 million and $20.1 million at December 31, 2018 and 2017 . The fair value of these contracts combined was zero, as gains offset losses. The gross gain and loss associated with these interest rate swaps was $0.1 million and $0.2 million at December 31, 2018 and 2017 . |
RETIREMENT PLANS_
RETIREMENT PLANS: | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS: Employees of the Corporation are covered by a retirement program that consists of a defined benefit plan and an employee stock ownership plan (ESOP). Plan assets consist primarily of the Corporation's stock and obligations of U.S. Government agencies. Benefits under the defined benefit plan are actuarially determined based on an employee's service and compensation, as defined, and funded as necessary. This plan was frozen for the majority of employees as of December 31, 2012.Those employees will be eligible to participate in a 401K plan that the Corporation can contribute a discretionary match of the pay contributed by the employee. In addition the ESOP plan will continue in place for all employees. Assets in the ESOP are considered in calculating the funding to the defined benefit plan required to provide such benefits. Any shortfall of benefits under the ESOP are to be provided by the defined benefit plan. The ESOP may provide benefits beyond those determined under the defined benefit plan. Contributions to the ESOP are determined by the Corporation's Board of Directors. The Corporation made contributions to the defined benefit plan of $2.26 million , $2.55 million and $2.70 million in 2018 , 2017 and 2016 . The Corporation contributed $1.09 million , $1.06 million and $1.36 million to the ESOP in 2018 , 2017 and 2016 . There were contributions of $735 thousand , $676 thousand and $872 thousand to the ESOP for employees no longer participating in the defined benefit plan in 2018 , 2017 and 2016 respectively. The Corporation uses a measurement date of December 31. Net periodic benefit cost and other amounts recognized in other comprehensive income included the following components: (Dollar amounts in thousands) 2018 2017 2016 Service cost - benefits earned $ 1,388 $ 1,432 $ 1,882 Interest cost on projected benefit obligation 3,194 3,621 3,729 Expected return on plan assets (3,962 ) (3,940 ) (3,429 ) Net amortization and deferral 1,448 1,205 1,936 Net periodic pension cost 2,068 2,318 4,118 Net loss (gain) during the period (1,192 ) 5,366 (6,150 ) Amortization of prior service cost (1 ) (1 ) (1 ) Amortization of unrecognized gain (loss) (1,447 ) (1,204 ) (1,935 ) Total recognized in other comprehensive (income) loss (2,640 ) 4,161 (8,086 ) Total recognized net periodic pension cost and other comprehensive income $ (572 ) $ 6,479 $ (3,968 ) The estimated net loss and prior service costs (credits) for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $1.6 million and $1 thousand . The information below sets forth the change in projected benefit obligation, reconciliation of plan assets, and the funded status of the Corporation's retirement program. Actuarial present value of benefits is based on service to date and present pay levels. (Dollar amounts in thousands) 2018 2017 Change in benefit obligation: Benefit obligation at January 1 $ 98,096 $ 93,233 Service cost 1,388 1,432 Interest cost 3,194 3,621 Actuarial (gain) loss (10,618 ) 5,305 Benefits paid (4,264 ) (5,495 ) Benefit obligation at December 31 87,796 98,096 Reconciliation of fair value of plan assets: Fair value of plan assets at January 1 71,449 70,132 Actual return on plan assets (5,464 ) 3,879 Employer contributions 2,614 2,933 Benefits paid (4,264 ) (5,495 ) Fair value of plan assets at December 31 64,335 71,449 Funded status at December 31 (plan assets less benefit obligation) $ (23,461 ) $ (26,647 ) Amounts recognized in accumulated other comprehensive income at December 31, 2018 and 2017 consist of: (Dollar amounts in thousands) 2018 2017 Net loss (gain) $ 22,982 $ 25,621 Prior service cost (credit) 2 3 $ 22,984 $ 25,624 The accumulated benefit obligation for the defined benefit pension plan was $83.9 million and $93.3 million at year-end 2018 and 2017 . Principal assumptions used to determine pension benefit obligation at year end: 2018 2017 Discount rate 4.22 % 3.60 % Rate of increase in compensation levels 3.00 3.00 Principal assumptions used to determine net periodic pension cost: 2018 2017 Discount rate 3.60 % 4.14 % Rate of increase in compensation levels 3.00 3.00 Expected long-term rate of return on plan assets 6.00 6.00 The expected long-term rate of return was estimated using market benchmarks for equities and bonds applied to the plan's target asset allocation. Management estimated the rate by which plan assets would perform based on historical experience as adjusted for changes in asset allocations and expectations for future return on equities as compared to past periods. Plan Assets — The Corporation's pension plan weighted-average asset allocation for the years 2018 and 2017 by asset category are as follows: Pension Plan Target Allocation ESOP Target Allocation Pension Percentage of Plan Assets at December 31, ESOP Percentage of Plan Assets at December 31, ASSET CATEGORY 2018 2018 2018 2017 2018 2017 Equity securities 25-75% 95-99% 65 % 72 % 99 % 98 % Debt securities 0-50% 0-0% 31 % 25 % — % — % Other 0-20% 0-5% 4 % 3 % 1 % 2 % TOTAL 100 % 100 % 100 % 100 % Fair Value of Plan Assets — Fair value is the exchange price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Corporation used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Equity, Debt, Investment Funds and Other Securities — The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair value of the plan assets at December 31, 2018 and 2017 , by asset category, is as follows: Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Observable Inputs (Dollar amounts in thousands) Total (Level 1) (Level 2) (Level 3) Plan assets Equity securities $ 43,931 $ 43,931 $ — $ — Debt securities 10,652 — 10,652 — Investment Funds 9,752 9,752 — — Total plan assets $ 64,335 $ 53,683 $ 10,652 $ — Fair Value Measurements at December 31, 2017 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Observable Inputs (Dollar amounts in thousands) Total (Level 1) (Level 2) (Level 3) Plan assets Equity securities $ 48,152 $ 48,152 $ — $ — Debt securities 10,717 — 10,717 — Investment Funds 12,580 12,580 — — Total plan assets $ 71,449 $ 60,732 $ 10,717 $ — The investment objective for the retirement program is to maximize total return without exposure to undue risk. Asset allocation favors equities. This target includes the Corporation's ESOP, which is fully invested in corporate stock. Other investment allocations include fixed income securities and cash. The plan is prohibited from investing in the following: private placement equity and debt transactions; letter stock and uncovered options; short-sale margin transactions and other specialized investment activity; and fixed income or interest rate futures. All other investments not prohibited by the plan are permitted. Equity securities in the defined benefit plan include First Financial Corporation common stock in the amount of $18.0 million ( 28 percent of total plan assets) and $21.4 million ( 30 percent of total plan assets) at December 31, 2018 and 2017 , respectively. In addition the ESOP for non plan participants holds an estimated $3.8 million and $ 3.8 million of First Financial Corporation stock at December 31, 2018 and December 31, 2017 respectively. Other equity securities are predominantly stocks in large cap U.S. companies. Contributions — The Corporation expects to contribute $1.8 million to its pension plan and $814 thousand to its ESOP in 2019 . Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: PENSION BENEFITS (Dollar amounts in thousands) 2019 $ 4,692 2020 4,843 2021 5,034 2022 5,221 2023 5,391 2024-2028 28,701 Supplemental Executive Retirement Plan — The Corporation has established a Supplemental Executive Retirement Plan (SERP) for certain executive officers. The provisions of the SERP allow the Plan's participants who are also participants in the Corporation's defined benefit pension plan to receive supplemental retirement benefits to help recompense for benefits lost due to the imposition of IRS limitations on benefits under the Corporation's tax qualified defined benefit pension plan. Expenses related to the plan were $411 thousand in 2018 and $321 thousand in 2017 and $418 thousand in 2016 .The plan is unfunded and has a measurement date of December 31. The amounts recognized in other comprehensive income in the current year are as follows: (Dollar amounts in thousands) 2018 2017 2016 Net loss (gain) during the period $ 260 $ 527 $ (511 ) Amortization of prior service cost — — — Amortization of unrecognized gain (loss) (51 ) — (57 ) Total recognized in other comprehensive (income) loss $ 209 $ 527 $ (568 ) The Corporation has $5.0 million and $4.4 million recognized in the balance sheet as a liability at December 31, 2018 and 2017 . Amounts in accumulated other comprehensive income consist of $1.1 million net loss at December 31, 2018 and $859 thousand net loss at December 31, 2017 . The estimated loss for the SERP that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $75 thousand . Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: (Dollar amounts on thousands) 2019 $ — 2020 199 2021 388 2022 379 2023 368 2024-2028 1,994 Post-retirement medical benefits — The Corporation also provides medical benefits to certain employees subsequent to their retirement. The Corporation uses a measurement date of December 31. Accrued post-retirement benefits as of December 31, 2018 and 2017 are as follows: December 31, (Dollar amounts in thousands) 2018 2017 Change in benefit obligation: Benefit obligation at January 1 $ 4,361 $ 4,276 Service cost 42 53 Interest cost 131 172 Plan participants' contributions 83 75 Actuarial (gain) loss (872 ) 83 Benefits paid (325 ) (298 ) Benefit obligation at December 31 $ 3,420 $ 4,361 Funded status at December 31 $ 3,420 $ 4,361 Amounts recognized in accumulated other comprehensive income consist of a net gain of $615 thousand at December 31, 2018 and $257 thousand net loss at December 31, 2017 . The post-retirement benefits paid in 2018 and 2017 of $325 thousand and $298 thousand , respectively, were fully funded by company and participant contributions. There is no estimated transition obligation for the post-retirement benefit plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year. Weighted average assumptions at December 31: December 31, 2018 2017 Discount rate 4.22 % 3.60 % Initial weighted health care cost trend rate 5.00 % 5.00 % Ultimate health care cost trend rate 5.00 5.00 Year that the rate is assumed to stabilize and remain unchanged 2019 2018 Post-retirement health benefit expense included the following components: Years Ended December 31, (Dollar amounts in thousands) 2018 2017 2016 Service cost $ 42 $ 53 $ 55 Interest cost 131 172 186 Net periodic benefit cost 173 225 241 Net loss (gain) during the period (872 ) 83 (144 ) Total recognized in other comprehensive income (loss) (872 ) 83 (144 ) Total recognized net periodic benefit cost and other comprehensive income $ (699 ) $ 308 $ 97 Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in the assumed health care cost trend rates would have the following effects: 1% Point 1% Point (Dollar amounts in thousands) Increase Decrease Effect on total of service and interest cost components $ 1 $ 1 Effect on post-retirement benefit obligation 16 15 Contributions — The Corporation expects to contribute $233 thousand to its other post-retirement benefit plan in 2019. Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: (Dollar amounts in thousands) 2019 $ 233 2020 233 2021 228 2022 228 2023 230 2024-2028 1,119 |
STOCK BASED COMPENSATION_
STOCK BASED COMPENSATION: | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION: On February 5, 2011, the Corporation's Board of Directors adopted and approved the First Financial Corporation 2011 Omnibus Equity Incentive Plan (the "2011 Stock Incentive Plan") effective upon the approval of the Plan by the Company's shareholders, which occurred on April 20, 2011 at the Corporation’s annual meeting of shareholders. The 2011 Stock Incentive Plan provides for the grant of non qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and incentive awards. An aggregate of 700,000 shares of common stock are reserved for issuance under the 2011 Stock Incentive Plan. Shares issuable under the 2011 Stock Incentive Plan may be authorized and unissued shares of common stock or treasury shares. During the first quarter of 2018 and 2017 , the Compensation Committee of the Board of Directors of the Company granted restricted stock awards to certain executive officers pursuant to the Corporation's annual performance-based stock incentive bonus plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. The value of the awards was determined by dividing the award amount by the median price of a share of Company common stock on the grant dates. The restricted stock awards vest as follows — 33% on the first anniversary, 33% on the second anniversary and the remaining 34% on the third anniversary of the earned date. The Corporation has the right to retain shares to satisfy any withholding tax obligation. A total of 166,289 shares of restricted common stock of the Company were granted under the 2011 Stock Incentive Plan. A total of 533,711 remain to be granted under this plan. Restricted Stock Restricted stock awards require certain service-based or performance requirements and have a vesting period of 3 years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of issue. Compensation related to the plan was $745 thousand , $706 thousand , and $684 thousand in 2018 , 2017 and 2016 , respectively. 2018 2017 Number Weighted Average Grant Date Number Weighted Average Grant Date (shares in thousands) Outstanding Fair Value Outstanding Fair Value Nonvested balance at January 1, 18,019 41.14 20,524 32.83 Granted during the year 17,220 45.55 16,562 46.70 Vested during the year (18,240 ) 40.85 (19,067 ) 37.03 Forfeited during the year — — — — Nonvested balance at December 31, 16,999 45.92 18,019 41.14 As of December 31, 2018 and 2017 , there was $674 thousand and $741 thousand , respectively of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of the shares vested during the years ended December 31, 2018 and 2017 was $732 thousand and $865 thousand , respectively. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS): | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS): The following table summarizes the changes, net of tax within each classification of accumulated other comprehensive income for the years ended December 31, 2018 and 2017 . Unrealized gains and 2018 Losses on Retirement (Dollar amounts in thousands) Securities plans Total Beginning balance, January 1 $ 2,258 $ (16,962 ) $ (14,704 ) Change in other comprehensive income before reclassification (8,859 ) 1,392 (7,467 ) Amounts reclassified from accumulated other comprehensive income (2 ) 1,085 1,083 Net current period other comprehensive income (loss) (8,861 ) 2,477 (6,384 ) ASU 2018-02 adjustment $ 498 $ (2,864 ) $ (2,366 ) Ending balance, December 31 $ (6,105 ) $ (17,349 ) $ (23,454 ) Unrealized gains and 2017 Losses on Retirement (Dollar amounts in thousands) Securities plans Total Beginning balance, January 1 $ (1,077 ) $ (13,087 ) $ (14,164 ) Change in other comprehensive income before reclassification 3,371 (4,609 ) (1,238 ) Amounts reclassified from accumulated other comprehensive income (36 ) 734 698 Net current period other comprehensive income (loss) 3,335 (3,875 ) (540 ) Ending balance, December 31 $ 2,258 $ (16,962 ) $ (14,704 ) Balance Current Balance (Dollar amounts in thousands) 1/1/2018 Change 12/31/2018 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ (1,371 ) $ (7,075 ) $ (8,446 ) Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 3,629 (1,288 ) 2,341 Total unrealized gain (loss) on securities available-for-sale $ 2,258 $ (8,363 ) $ (6,105 ) Unrealized loss on retirement plans (16,962 ) (387 ) (17,349 ) TOTAL $ (14,704 ) $ (8,750 ) $ (23,454 ) Balance at Current Period Balance at (Dollar amounts in thousands) 1/1/2017 Change 12/31/2017 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ (3,018 ) $ 1,647 $ (1,371 ) Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 1,941 1,688 3,629 Total unrealized gain (loss) on securities available-for-sale $ (1,077 ) $ 3,335 $ 2,258 Unrealized loss on retirement plans (13,087 ) (3,875 ) (16,962 ) TOTAL $ (14,164 ) $ (540 ) $ (14,704 ) Balance at December 31, 2018 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 2 Net securities gains (losses) on available-for-sale — Income tax expense securities $ 2 Net of tax Amortization of $ (1,447 ) (a) retirement plan items 362 Income tax expense $ (1,085 ) Net of tax Total reclassifications for the period $ (1,083 ) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). Balance at December 31, 2017 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 59 Net securities gains (losses) on available-for-sale (23 ) Income tax expense securities $ 36 Net of tax Amortization of $ (1,204 ) (a) retirement plan items 470 Income tax expense $ (734 ) Net of tax Total reclassifications for the period $ (698 ) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). Balance at December 31, 2016 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 34 Net securities gains (losses) on available-for-sale (13 ) Income tax expense securities $ 21 Net of tax Amortization of $ (1,992 ) (a) retirement plan items 776 Income tax expense $ (1,216 ) Net of tax Total reclassifications for the period $ (1,195 ) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). |
REGULATORY MATTERS_
REGULATORY MATTERS: | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS: The Corporation and its bank affiliates are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Corporation's financial statements. Further, the Corporation's primary source of funds to pay dividends to shareholders is dividends from its subsidiary banks and compliance with these capital requirements can affect the ability of the Corporation and its banking affiliates to pay dividends. At December 31, 2018 , approximately $59.9 million of undistributed earnings of the subsidiary banks, included in consolidated retained earnings, were available for distribution to the Corporation without regulatory approval. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and Banks must meet specific capital guidelines that involve quantitative measures of the Corporation's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Corporation's and Banks' capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and Banks to maintain minimum amounts and ratios of Total, Common equity tier I capital and Tier I Capital to risk-weighted assets, and of Tier I Capital to average assets. The final rules implementing Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel lll rules) became effective for the Corporation on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel lll rules, the Corporation must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer is being phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for 2018 and 2017 is 1.875% and 1.25%, respectively. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes, as of December 31, 2018 and 2017 , that the Corporation meets all capital adequacy requirements to which it is subject. As of December 31, 2018 , the most recent notification from the respective regulatory agencies categorized the subsidiary banks as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the banks must maintain minimum total risk-based, Common equity tier I capital, Tier I risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the banks' category. The following table presents the actual and required capital amounts and related ratios for the Corporation and First Financial Bank, N.A., at year-end 2018 and 2017 . To Be Well Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollar amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital Corporation – 2018 $ 451,036 19.36 % $ 230,091 9.875 % N/A N/A Corporation – 2017 $ 412,525 17.88 % $ 213,446 9.250 % N/A N/A First Financial Bank – 2018 421,553 18.71 % 222,453 9.875 % 225,268 10.00 % First Financial Bank – 2017 386,593 17.30 % 206,745 9.250 % 223,508 10.00 % Common equity tier I capital Corporation – 2018 $ 430,600 18.48 % $ 148,540 6.375 % N/A N/A Corporation – 2017 $ 392,615 17.01 % $ 132,682 5.750 % N/A N/A First Financial Bank – 2018 405,181 17.99 % 143,609 6.375 % 146,424 6.50 % First Financial Bank – 2017 370,061 16.56 % 128,517 5.750 % 145,280 6.50 % Tier I risk-based capital Corporation – 2018 $ 430,600 18.48 % $ 183,490 7.875 % N/A N/A Corporation – 2017 $ 392,615 17.01 % $ 167,295 7.250 % N/A N/A First Financial Bank – 2018 405,181 17.99 % 177,399 7.875 % 180,215 8.00 % First Financial Bank – 2017 370,061 16.56 % 162,044 7.250 % 178,807 8.00 % Tier I leverage capital Corporation – 2018 $ 430,600 14.59 % $ 118,072 4.00 % N/A N/A Corporation – 2017 $ 392,615 13.31 % $ 117,956 4.00 % N/A N/A First Financial Bank – 2018 405,181 14.19 % 114,213 4.00 % 142,767 5.00 % First Financial Bank – 2017 370,061 12.81 % 115,553 4.00 % 144,441 5.00 % |
PARENT COMPANY CONDENSED FINANC
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS | PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: The parent company’s condensed balance sheets as of December 31, 2018 and 2017 , and the related condensed statements of income and comprehensive income and cash flows for each of the three years in the period ended December 31, 2018 , are as follows: CONDENSED BALANCE SHEETS December 31, (Dollar amounts in thousands) 2018 2017 ASSETS Cash deposits in affiliated banks $ 3,342 $ 3,198 Investments in subsidiaries 442,547 414,839 Land and headquarters building, net 5,000 5,193 Other 900 — Total Assets $ 451,789 $ 423,230 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Dividends payable $ 6,258 $ 6,234 Other liabilities 2,830 3,427 TOTAL LIABILITIES 9,088 9,661 Shareholders' Equity 442,701 413,569 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 451,789 $ 423,230 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, (Dollar amounts in thousands) 2018 2017 2016 Dividends from subsidiaries $ 13,651 $ 30,814 $ 31,781 Other income 720 720 722 Other operating expenses (2,814 ) (2,647 ) (2,581 ) Income before income taxes and equity in undistributed earnings of subsidiaries 11,557 28,887 29,922 Income tax benefit 934 889 821 Income before equity in undistributed earnings of subsidiaries 12,491 29,776 30,743 Equity in undistributed earnings of subsidiaries 34,092 (645 ) 7,670 Net income $ 46,583 $ 29,131 $ 38,413 Comprehensive income $ 40,199 $ 28,591 $ 33,650 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (Dollar amounts in thousands) 2018 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 46,583 $ 29,131 $ 38,413 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 193 195 200 Equity in undistributed earnings (34,092 ) 645 (7,670 ) Contribution of shares to ESOP 1,087 1,062 1,361 Restricted stock compensation 745 706 684 Increase (decrease) in other liabilities (585 ) (247 ) (262 ) (Increase) decrease in other assets (900 ) — 12 NET CASH FROM OPERATING ACTIVITIES 13,031 31,492 32,738 CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of treasury stock (391 ) (503 ) (19,396 ) Dividends paid (12,496 ) (30,556 ) (12,359 ) NET CASH FROM FINANCING ACTIVITES (12,887 ) (31,059 ) (31,755 ) NET (DECREASE) INCREASE IN CASH 144 433 983 CASH, BEGINNING OF YEAR 3,198 2,765 1,782 CASH, END OF YEAR $ 3,342 $ 3,198 $ 2,765 Supplemental disclosures of cash flow information: Cash paid during the year for: Interest $ — $ — $ — Income taxes $ 7,185 $ 11,158 $ 18,739 |
BUSINESS AND SIGNIFICANT ACCO_2
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Share Based Compensation [Policy Text Block] | Stock based compensation: Compensation cost is recognized for restricted stock awards and units issued to employees based on the fair value of these awards at the date of grant. Market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the requisite service period. |
Organization | Organization: The consolidated financial statements of First Financial Corporation and its subsidiaries (the Corporation) include the parent company and its wholly-owned subsidiaries, First Financial Bank, N.A. headquartered in Vigo County, Indiana, The Morris Plan Company of Terre Haute (Morris Plan), First Chanticleer Corporation, a property rental entity headquartered in Terre Haute, Indiana, and FFB Risk Management Co., Inc., a captive insurance subsidiary headquartered in Las Vegas, Nevada. Inter-company transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. |
Cash Flows | Cash Flows : Cash and cash equivalents include cash and demand deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings. |
Securities | Securities : The Corporation classifies all securities as "available for sale." Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value with unrealized holdings gains and losses, net of taxes, reported in other comprehensive income within shareholders' equity. Interest income includes amortization of purchase premium or discount. Premiums and discounts are amortized on the level yield method without anticipating prepayments. Mortgage-backed securities are amortized over the expected life. Realized gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. |
Loans | Loans: Loans that management has the intent and ability to hold for the foreseeable future until maturity or pay-off are reported at the principal balance outstanding, net of unearned interest, purchase premiums and discounts, deferred loan fees and costs, and allowance for loan losses. Loans held for sale are reported at the lower of cost or fair value, on an aggregate basis. Interest income is accrued on the unpaid principal balance and includes amortization of net deferred loan fees and costs over the loan term without anticipating prepayments. The recorded investment in loans includes accrued interest receivable and net deferred loan fees and costs. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired or payments are significantly past due. Past-due status is based on the contractual terms of the loan. All interest accrued but not received for loans placed on non-accrual 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. In all cases, loans are placed on non-accrual or charged-off if collection of principal or interest is considered doubtful. The above policies are consistent for all segments of loans. |
Certain Purchased Loans | Certain Purchased Loans: The Corporation purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased loans are accounted for individually. The Corporation estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of amount paid are 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). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a provision for loan loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Concentration of Credit Risk | Concentration of Credit Risk: Most of the Corporation's business activity is with customers located within west central Indiana and east central Illinois. Therefore, the Corporation's exposure to credit risk is significantly affected by changes in the economy of this area. A major economic downturn in this area would have a negative effect on the Corporation's loan portfolio. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan 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. The general component covers non-classified loans as well as non-impaired classified loans and is based on historical loss experience adjusted for current factors. A loan is impaired when full payment under the loan terms is not expected. Loans for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Impairment is evaluated in total for smaller-balance loans of similar nature such as residential mortgages and consumer loans, and on an individual basis for other loans. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows, using the loan's existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. The general component covers non-classified loans as well as non-impaired classified loans and is based on historical loss experience adjusted for current factors. The historical loss experience is based on the actual loss history experienced over the most recent four years. This actual loss experience is supplemented with other current factors based on the risks present for each portfolio segment. These current factors include consideration of the following: levels of and trends in delinquent, classified, and impaired loans; levels of and trends in charge-offs and recoveries; national and local economic trends and conditions; changes in lending policies and procedures; trends in volume and terms of loans; experience, ability, and depth of lending management and other relevant staff; credit concentrations; value of underlying collateral for collateral dependent loans; and other external factors such as competition and legal and regulatory requirements. The following portfolio segments have been identified: commercial loans, residential loans and consumer loans. A characteristic of the commercial loan segment is that the loans are for business purchases. A characteristic of the residential loan segment is that the loans are secured by residential properties. A characteristic of the consumer loan segment is that the loans are for automobiles and other consumer purchases. Commercial loans are generally well secured, which mitigates the risk of loss and has contributed to the low historical loss rate. However, concentrations in commercial real estate, along with the potential impact of rising interest rates to commercial real estate, raises the risk of loss on commercial loans. For these reasons, commercial loans have the highest adjustment to the historical loss rate. Continued weakness in local economic conditions along with declining auto values resulted in consumer loans having the next highest level of adjustment to the historical loss rate. The residential loan portfolio segment had the lowest level of adjustment to the historical loss rate. Troubled debt restructurings 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 troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. |
FDIC Indemnification Asset | FDIC Indemnification Asset: The FDIC indemnification asset results from the loss share agreements in the 2009 FDIC-assisted transaction. The asset is measured separately from the related covered assets as they are not contractually embedded in the assets and are not transferable with the assets should the Corporation choose to dispose of them. It represents the acquisition date fair value of expected reimbursements from the FDIC which was determined to be $12.1 million . Pursuant to the terms of the loss sharing agreement, covered loans and other real estate are subject to a stated loss threshold whereby the FDIC will reimburse the Corporation for up to 95% of losses incurred. These expected reimbursements do not include reimbursable amounts related to future covered expenditures. These cash flows are discounted to reflect a metric of uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. This asset decreases when losses are realized and claims are paid by the FDIC or when customers repay their loans in full and expected losses do not occur. This asset also increases when estimated future losses increase. When estimated future losses increase, the Corporation records a provision for loan losses and increases its allowance for loan losses accordingly. The related increase or decrease in the FDIC indemnification asset is recorded as an (increase) or offset to the provision for loan losses. |
Foreclosed Assets | Foreclosed Assets: Assets acquired through or instead of loan foreclosures are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. |
Premises and Equipment | Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the useful lives of the assets, which range from 3 to 5 years for furniture and equipment and 33 to 39 years for buildings and leasehold improvements. |
Restricted Stock | Restricted Stock: Restricted stock includes Federal Home Loan Bank (FHLB) of Indianapolis and Federal Reserve stock. This restricted stock is carried at cost and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Servicing Rights | Servicing Rights: Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on third-party valuations that incorporate assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds and default rates and losses. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with Other Service Charges and Fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is included in Other Service Charges and Fees on the income statement, is for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Corporation, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Life Insurance Corporate Or Bank Owned Policy [Text Block] | Bank-Owned Life Insurance: The Corporation has purchased life insurance policies on certain key executives. Bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Income on the investments in life insurance is included in other interest income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 represents the future economic benefits arising from other assets acquired that are not individually identified and separately recognized. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Corporation has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Other intangible assets consist of core deposit assets arising from the whole bank and branch acquisitions. They are initially measured at fair value and then are amortized on an accelerated basis over their estimated useful lives, which are 10 and 12 years, respectively. |
Long-Term Assets | Long-Term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Benefit Plans | Benefit Plans: Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The amount contributed is determined by a formula as decided by the Board of Directors. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan: Shares of treasury stock are issued to the ESOP and compensation expense is recognized based upon the total market price of shares when contributed. |
Deferred Compensation Plan | Deferred Compensation Plan: Prior to 2011, a deferred compensation plan covered all directors. Under the plan, the Corporation pays each director, or their beneficiary, the amount of fees deferred plus interest over 10 years, beginning when the director achieves age 65 . A liability is accrued for the obligation under these plans. |
Incentive Plans | Incentive Plans: A long-term incentive plan established in 2000 provides for the payment of incentive rewards as a 15 -year annuity to all directors and certain key officers. That plan was in place through December 31, 2009, and compensation expense is recognized over the service period. Payments under the plan generally did not begin until the earlier of January 1, 2015, or the January 1 immediately following the year in which the participant reaches age 65 . There was no compensation expense related to this plan for 2018 , 2017 and 2016 . There is a liability of $8.5 million and $11.4 million as of year-end 2018 and 2017 . In 2011 the Corporation adopted the 2011 Short-term Incentive Plan and the 2011 Omnibus Equity Incentive Plan designed to reward key officers based on certain performance measures. |
Income Taxes | Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments: Financial instruments include credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Earnings Per Share | Earnings Per Share: Earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. The Corporation does not have any potentially dilutive securities as the restricted stock awards are included in outstanding shares.. Earnings and dividends per share are restated for stock splits and dividends through the date of issue of the financial statements. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the retirement plans, net of taxes, which are also recognized as separate components of equity. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount of range of loss can be reasonably estimated. Management does not believe there are currently such matters that will have a material effect on the financial statements. |
Dividend Restriction | Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or market conditions could significantly affect the estimates. |
Operating Segment | Operating Segment: While the Corporation's chief decision-makers monitor the revenue streams of the various products and services, the operating results of significant segments are similar and operations are managed and financial performance is evaluated on a corporate-wide basis. Accordingly, all of the Corporation's financial service operations are considered by management to be aggregated in one reportable operating segment, which is banking. |
Adoption of New Accounting Standards | : In February 2016, the FASB issued ASU No. 2016-02, "Leases." The guidance, requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 was effective for the Corporation on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. The Corporation elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and will not restate comparative periods. The Corporation also expects to elect certain optional practical expedients. The operating leases relate primarily to office space and bank branches. Based on the lease portfolio as of December 31, 2018, the Corporation anticipates recognizing a lease liability on the balance sheet of approximately $7 million with an offsetting right-of-use asset net of lease incentives, with an immaterial impact on the income statement compared to the current lease accounting model. In June 2016 ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), was issued and requires entities to use a current expected credit loss ("CECL") model which is a new impairment model based on expected losses rather than incurred losses. Under this model an entity would recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect from financial assets measured at amortized cost. The entity's estimate would consider relevant information about past events, current conditions, and reasonable and supportable forecasts, which will result in recognition of lifetime expected credit losses upon loan origination. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for annual reporting periods beginning after December 15, 2018. Management has initiated an implementation committee to assist in assessing data and system needs for the new standard. Management anticipates the effect will be an increase to the allowance for loan losses upon adoption, however, the overall increase is uncertain at this time. In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment.” The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. ASU No. 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2019, applied prospectively. Early adoption is permitted for any impairment tests performed after January 1, 2017. The Corporation is assessing ASU 2017-04 but does not expect a significant impact on its accounting and disclosures. |
FAIR VALUES OF FINANCIAL INST_2
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value | The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs). December 31, 2018 Fair Value Measurement Using (Dollar amounts in thousands) Level 1 Level 2 Level 3 Carrying Value U.S. Government entity mortgage-backed securities $ — $ 25,364 $ — $ 25,364 Mortgage-backed securities, residential — 178,743 — 178,743 Collateralized mortgage obligations — 343,616 — 343,616 State and municipal obligations — 230,800 3,135 233,935 Collateralized debt obligations — — 3,258 3,258 TOTAL $ — $ 778,523 $ 6,393 $ 784,916 Derivative Assets $ 218 Derivative Liabilities (218 ) December 31, 2017 Fair Value Measurement Using (Dollar amounts in thousands) Level 1 Level 2 Level 3 Carrying Value U.S. Government entity mortgage-backed securities $ — $ 13,695 $ — $ 13,695 Mortgage-backed securities, residential — 215,338 — 215,338 Mortgage-backed securities, commercial — 1 — 1 Collateralized mortgage obligations — 339,670 — 339,670 State and municipal obligations — 227,942 3,680 231,622 Collateralized debt obligations — — 14,605 14,605 TOTAL $ — $ 796,646 $ 18,285 $ 814,931 Derivative Assets $ 298 Derivative Liabilities (298 ) |
Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3) | The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2018 and 2017 . Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2018 State and municipal obligations Collateralized debt obligations Total Beginning balance, January 1 $ 3,680 $ 14,605 $ 18,285 Total realized/unrealized gains or losses Included in earnings — — — Included in other comprehensive income — (2,840 ) (2,840 ) Purchases — — — Settlements (545 ) (8,507 ) (9,052 ) Ending balance, December 31 $ 3,135 $ 3,258 $ 6,393 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2017 State and municipal obligations Collateralized debt obligations Total Beginning balance, January 1 $ 4,210 $ 12,368 $ 16,578 Total realized/unrealized gains or losses Included in earnings — — — Included in other comprehensive income — 2,773 2,773 Transfers — — — Settlements (530 ) (536 ) (1,066 ) Ending balance, December 31 $ 3,680 $ 14,605 $ 18,285 |
Quantitative information about recurring and non-recurring Level 3 | The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2018 and 2017 . 2018 Fair Value Valuation Technique(s) Unobservable Input(s) Range State and municipal obligations $ 3,135 Discounted cash flow Discount rate 2.64%-4.80% Probability of default — % Other real estate $ 603 Sales comparison/income approach Discount rate for age of appraisal and market conditions 5.00%-20.00% Impaired Loans $ 1,639 Sales comparison/income approach Discount rate for age of appraisal and market conditions 0.00%-50.00% 2017 Fair Value Valuation Technique(s) Unobservable Input(s) Range State and municipal obligations $ 3,680 Discounted cash flow Discount rate 2.30%-5.45% Probability of default — % Other real estate $ 1,880 Sales comparison/income approach Discount rate for age of appraisal and market conditions 5.00%-20.00% Impaired Loans $ 3,882 Sales comparison/income approach Discount rate for age of appraisal and market conditions 0.00%-50.00% |
Schedule of loans identified as impaired by class of loans | The following tables present impaired collateral dependent loans measured at fair value on a non-recurring basis by class of loans as of December 31, 2018 and 2017 . December 31, 2018 (Dollar amounts in thousands) Carrying Value Allowance for Loan Losses Allocated Fair Value Commercial Commercial & Industrial $ 1,819 $ 593 $ 1,226 Farmland 211 44 167 Non Farm, Non Residential — — — Agriculture 346 100 246 All Other Commercial — — — Residential First Liens — — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 2,376 $ 737 $ 1,639 December 31, 2017 (Dollar amounts in thousands) Carrying Value Allowance for Loan Losses Allocated Fair Value Commercial Commercial & Industrial $ 493 $ 146 $ 347 Farmland 3,035 268 2,767 Non Farm, Non Residential — — — Agriculture 537 205 332 All Other Commercial — — — Residential First Liens 442 6 436 Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 4,507 $ 625 $ 3,882 |
Schedule of carrying amount and estimated fair value of financial instruments | The carrying amount and estimated fair value of assets and liabilities are presented in the table below and were determined based on the above assumptions: December 31, 2018 Carrying Fair Value (Dollar amounts in thousands) Value Level 1 Level 2 Level 3 Total Cash and due from banks $ 74,388 $ 23,418 $ 50,970 $ — $ 74,388 Securities available-for-sale 784,916 — 778,523 6,393 784,916 Restricted stock 10,390 n/a n/a n/a n/a Loans, net 1,933,552 — — 1,889,795 1,889,795 Accrued interest receivable 13,970 — 3,005 10,965 13,970 Deposits (2,436,727 ) — (2,426,128 ) — (2,426,128 ) Short-term borrowings (69,656 ) — (69,656 ) — (69,656 ) Accrued interest payable (609 ) — (609 ) — (609 ) December 31, 2017 Carrying Fair Value (Dollar amounts in thousands) Value Level 1 Level 2 Level 3 Total Cash and due from banks $ 74,107 $ 20,682 $ 53,425 $ — $ 74,107 Securities available-for-sale 814,931 — 796,646 18,285 814,931 Restricted stock 10,379 n/a n/a n/a n/a Loans, net 1,886,852 — — 1,878,166 1,878,166 Accrued interest receivable 12,913 — 3,596 9,317 12,913 Deposits (2,458,653 ) — (2,456,900 ) — (2,456,900 ) Short-term borrowings (57,686 ) — (57,686 ) — (57,686 ) Accrued interest payable (372 ) — (372 ) — (372 ) |
SECURITIES_ (Tables)
SECURITIES: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and fair value of investments classified as available-for-sale | The fair value of securities available-for-sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: December 31, 2018 Amortized Unrealized (Dollar amounts in thousands) Cost Gains Losses Fair Value U.S. Government entity mortgage-backed securities $ 25,617 $ 218 $ (471 ) $ 25,364 Mortgage-backed securities, residential 182,050 723 (4,030 ) 178,743 Collateralized mortgage obligations 352,823 217 (9,424 ) 343,616 State and municipal obligations 232,457 2,767 (1,289 ) 233,935 Collateralized debt obligations 137 3,121 — 3,258 TOTAL $ 793,084 $ 7,046 $ (15,214 ) $ 784,916 December 31, 2017 Amortized Unrealized (Dollar amounts in thousands) Cost Gains Losses Fair Value U.S. Government entity mortgage-backed securities $ 13,989 $ 24 $ (318 ) $ 13,695 Mortgage-backed securities, residential 215,079 2,071 (1,812 ) 215,338 Mortgage-backed securities, commercial 1 — — 1 Collateralized mortgage obligations 346,005 370 (6,705 ) 339,670 State and municipal obligations 227,651 4,671 (700 ) 231,622 Collateralized debt obligations 8,644 5,961 — 14,605 TOTAL $ 811,369 $ 13,097 $ (9,535 ) $ 814,931 |
Schedule Of Gross Gain Or Loss realised | Below is a summary of the gross gains and losses realized by the Corporation on investment sales and calls during the years ended December 31, 2018 , 2017 and 2016 , respectively. (Dollar amounts in thousands) 2018 2017 2016 Proceeds $ 2,418 $ 15,348 $ 8,160 Gross gains 5 185 39 Gross losses (3 ) (126 ) (5 ) |
Schedule of contractual maturities of debt securities | Contractual maturities of debt securities at year-end 2018 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and collateralized mortgage obligations, are shown separately. Available-for-Sale Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 6,490 $ 6,509 Due after one but within five years 33,133 33,582 Due after five but within ten years 69,397 70,314 Due after ten years 149,191 152,152 258,211 262,557 Mortgage-backed securities and collateralized mortgage obligations 534,873 522,359 TOTAL $ 793,084 $ 784,916 |
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position | The following tables show the securities' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at December 31, 2018 and 2017 . December 31, 2018 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollar amounts in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government entity mortgage-backed securities $ 3,052 $ (4 ) 11,356 (467 ) $ 14,408 $ (471 ) Mortgage-backed securities, residential 39,997 (553 ) 111,423 (3,477 ) 151,420 (4,030 ) Collateralized mortgage obligations 52,838 (455 ) 241,373 (8,969 ) 294,211 (9,424 ) State and municipal obligations 34,229 (276 ) 41,742 (1,013 ) 75,971 (1,289 ) Total temporarily impaired securities $ 130,116 $ (1,288 ) $ 405,894 $ (13,926 ) $ 536,010 $ (15,214 ) December 31, 2017 Less Than 12 Months More Than 12 Months Total Unrealized Unrealized Unrealized (Dollar amounts in thousands) Fair Value Losses Fair Value Losses Fair Value Losses U.S. Government entity mortgage-backed securities $ 9,321 $ (86 ) $ 3,538 $ (232 ) $ 12,859 $ (318 ) Mortgage-backed securities, residential 79,918 (425 ) 53,815 (1,387 ) 133,733 (1,812 ) Collateralized mortgage obligations 150,182 (1,418 ) 146,750 (5,287 ) 296,932 (6,705 ) State and municipal obligations 27,347 (183 ) 18,660 (517 ) 46,007 (700 ) Total temporarily impaired securities $ 266,768 $ (2,112 ) $ 222,763 $ (7,423 ) $ 489,531 $ (9,535 ) |
Rollforward of the credit losses recognized in earnings | The table below presents a rollforward of the credit losses recognized in earnings for the years presented: (Dollar amounts in thousands) 2018 2017 2016 Beginning balance, January 1, $ 7,132 $ 13,974 $ 13,995 Amounts related to credit loss for which other-than- temporary impairment was not previously recognized — — — Reductions for securities called during the period (4,158 ) (6,842 ) Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security — — (21 ) Increases to the amount related to the credit loss for which other- than-temporary impairment was previously recognized — — — Ending balance, December 31, $ 2,974 $ 7,132 $ 13,974 |
LOANS_ (Tables)
LOANS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans Receivable, Net [Abstract] | |
Summary of Loans | Loans are summarized as follows: December 31, (Dollar amounts in thousands) 2018 2017 Commercial $ 1,166,352 $ 1,139,490 Residential 443,670 436,143 Consumer 341,041 327,976 Total gross loans 1,951,063 1,903,609 Deferred costs, net 2,925 3,152 Allowance for loan losses (20,436 ) (19,909 ) TOTAL $ 1,933,552 $ 1,886,852 |
Capitalized Mortgage Servicing Rights | Activity for capitalized mortgage servicing rights (included in other assets) was as follows: December 31, (Dollar amounts in thousands) 2018 2017 2016 Servicing rights: Beginning of year $ 1,434 $ 1,549 $ 1,746 Additions 513 477 480 Amortized to expense (516 ) (592 ) (677 ) End of year $ 1,431 $ 1,434 $ 1,549 |
ACQUISITIONS AND FDIC INDEMNI_2
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of carrying amount of covered assets | The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at December 31, 2018 and 2017 , are shown in the following tables: 2018 (Dollar amounts in thousands) Commercial Consumer Total Beginning balance $ 1,896 $ — $ 1,896 Discount accretion — — — Disposals (366 ) — (366 ) ASC 310-30 Loans $ 1,530 $ — $ 1,530 2017 (Dollar amounts in thousands) Commercial Consumer Total Beginning balance $ 3,451 $ 1,430 $ 4,881 Discount accretion — — — Disposals (1,555 ) (1,430 ) (2,985 ) ASC 310-30 Loans $ 1,896 $ — $ 1,896 |
ALLOWANCE FOR LOAN LOSSES_ (Tab
ALLOWANCE FOR LOAN LOSSES: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Allowance For Loan Losses Disclosure [Abstract] | |
Schedule of allowances for loan losses by portfolio segment | The following table presents the activity of the allowance for loan losses by portfolio segment for the years ended December 31, 2018 , 2017 and 2016 . Allowance for Loan Losses: December 31, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Provision for loan losses 83 60 5,295 330 5,768 Loans charged -off (1,122 ) (841 ) (6,868 ) — (8,831 ) Recoveries 606 639 2,345 — 3,590 Ending Balance $ 9,848 $ 1,313 $ 7,481 $ 1,794 $ 20,436 Allowance for Loan Losses: December 31, 2017 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 9,731 $ 1,553 $ 5,767 $ 1,722 $ 18,773 Provision for loan losses 745 (179 ) 4,987 (258 ) 5,295 Loans charged -off (1,572 ) (761 ) (6,429 ) — (8,762 ) Recoveries 1,377 842 2,384 — 4,603 Ending Balance $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Allowance for Loan Losses: December 31, 2016 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Beginning balance $ 11,482 $ 1,834 $ 4,945 $ 1,685 $ 19,946 Provision for loan losses (755 ) 54 3,964 37 3,300 Loans charged -off (2,659 ) (1,011 ) (5,279 ) — (8,949 ) Recoveries 1,663 676 2,137 — 4,476 Ending Balance $ 9,731 $ 1,553 $ 5,767 $ 1,722 $ 18,773 |
Allocation of the allowance for loan losses by portfolio segment based on the impairment method | The following tables present the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method at December 31, 2018 and 2017 : Allowance for Loan Losses: December 31, 2018 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 737 $ — $ — $ — $ 737 Collectively evaluated for impairment 9,111 1,313 7,481 1,794 19,699 Acquired with deteriorated credit quality — — — — — BALANCE AT END OF YEAR $ 9,848 $ 1,313 $ 7,481 $ 1,794 $ 20,436 Loans (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 6,101 $ 4,415 $ — $ 10,516 Collectively evaluated for impairment 1,166,227 440,497 342,473 1,949,197 Acquired with deteriorated credit quality 1,495 — — 1,495 BALANCE AT END OF YEAR $ 1,173,823 $ 444,912 $ 342,473 $ 1,961,208 Allowance for Loan Losses: December 31, 2017 (Dollar amounts in thousands) Commercial Residential Consumer Unallocated Total Individually evaluated for impairment $ 619 $ 6 $ — $ — $ 625 Collectively evaluated for impairment 9,662 1,449 6,709 1,464 19,284 Acquired with deteriorated credit quality — — — — — BALANCE AT END OF YEAR $ 10,281 $ 1,455 $ 6,709 $ 1,464 $ 19,909 Loans (Dollar amounts in thousands) Commercial Residential Consumer Total Individually evaluated for impairment $ 9,619 $ 463 $ — $ 10,082 Collectively evaluated for impairment 1,134,701 436,944 329,435 1,901,080 Acquired with deteriorated credit quality 1,860 — — 1,860 BALANCE AT END OF YEAR $ 1,146,180 $ 437,407 $ 329,435 $ 1,913,022 |
Schedule of loans individually evaluated for impairment by class of loans | The following tables present loans individually evaluated for impairment by class of loan. December 31, 2018 Allowance Cash Basis Unpaid for Loan Average Interest Interest Principal Recorded Losses Recorded Income Income Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 589 $ 589 $ — $ 698 $ — $ — Farmland 2,022 2,022 — 1,579 — — Non Farm, Non Residential — — — 1,443 — — Agriculture — — — 49 — — All Other Commercial 1,114 1,114 — 1,172 — — Residential First Liens 4,415 4,415 — 3,371 — — Home Equity — — — — — — Junior Liens — — — 23 — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 1,819 1,819 593 688 — — Farmland 211 211 44 1,691 — — Non Farm, Non Residential — — — — — Agriculture 346 346 100 316 — — All Other Commercial — — — — — — Residential First Liens — — — 88 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,516 $ 10,516 $ 737 $ 11,118 $ — $ — December 31, 2017 Allowance Cash Basis Unpaid for Loan Average Interest Interest Principal Recorded Losses Recorded Income Income Balance Investment Allocated Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 802 $ 802 $ — $ 971 $ — $ — Farmland 930 930 — 1,265 — — Non Farm, Non Residential 2,461 2,461 — 2,781 — — Agriculture 123 123 — 239 — — All Other Commercial 1,238 1,238 — 1,308 — — Residential First Liens 21 21 — 23 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — With an allowance recorded: Commercial Commercial & Industrial 493 493 146 514 — — Farmland 3,035 3,035 268 669 — — Non Farm, Non Residential — — — 131 — Agriculture 738 537 205 279 — — All Other Commercial — — — — — — Residential First Liens 442 442 6 483 — — Home Equity — — — — — — Junior Liens — — — — — — Multifamily — — — — — — All Other Residential — — — — — — Consumer Motor Vehicle — — — — — — All Other Consumer — — — — — — TOTAL $ 10,283 $ 10,082 $ 625 $ 8,663 $ — $ — December 31, 2016 Cash Basis Average Interest Interest Recorded Income Income Investment Recognized Recognized With no related allowance recorded: Commercial Commercial & Industrial $ 981 $ — $ — Farmland 770 — — Non Farm, Non Residential 3,096 — — Agriculture 351 — — All Other Commercial 1,477 — — Residential First Liens 27 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — With an allowance recorded: Commercial Commercial & Industrial 819 — — Farmland — — — Non Farm, Non Residential 1,016 — Agriculture 114 — — All Other Commercial 45 — — Residential First Liens 647 — — Home Equity — — — Junior Liens — — — Multifamily — — — All Other Residential — — — Consumer Motor Vehicle — — — All Other Consumer — — — TOTAL $ 9,343 $ — $ — |
Schedule of non-performing loans | The following tables present the recorded investment in nonperforming loans by class of loans. December 31, 2018 Loans Past Troubled Debt Due Over 90 Day Still Restructured (Dollar amounts in thousands) Accruing Accrual Non-accrual Non-accrual Commercial Commercial & Industrial $ — $ 1 $ 144 $ 2,902 Farmland — — — 2,391 Non Farm, Non Residential — — — 81 Agriculture — — — 355 All Other Commercial — — — 1,122 Residential First Liens 581 3,327 531 3,393 Home Equity 41 — — 75 Junior Liens 53 55 — 86 Multifamily — — — — All Other Residential — — — 64 Consumer Motor Vehicle 177 1 — 125 All Other Consumer — 268 349 380 TOTAL $ 852 $ 3,652 $ 1,024 $ 10,974 |
Troubled debt restructurings on financing receivables | During the years ending December 31, 2018 , 2017 , and 2016 the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's. 2018 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 2,709 $ 3,611 $ 714 $ 7,034 Added — 984 295 1,279 Charged Off — (16 ) (137 ) (153 ) Payments (2,564 ) (536 ) (254 ) (3,354 ) December 31, $ 145 $ 4,043 $ 618 $ 4,806 2017 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 3,386 $ 4,447 $ 732 $ 8,565 Added — 227 386 613 Charged Off — (289 ) (141 ) (430 ) Payments (677 ) (774 ) (263 ) (1,714 ) December 31, $ 2,709 $ 3,611 $ 714 $ 7,034 2016 (Dollar amounts in thousands) Commercial Residential Consumer Total January 1, $ 3,584 $ 5,593 $ 683 $ 9,860 Added — 123 369 492 Charged Off — (321 ) (70 ) (391 ) Payments (198 ) (948 ) (250 ) (1,396 ) December 31, $ 3,386 $ 4,447 $ 732 $ 8,565 |
Aging of recorded investment in loans by past due category and class of loans | The following tables present the aging of the recorded investment in loans by past due category and class of loans. Greater December 31, 2018 30-59 Days 60-89 Days than 90 days Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 1,017 $ 420 $ 345 $ 1,782 $ 518,239 $ 520,021 Farmland 515 8 2,136 2,659 104,981 107,640 Non Farm, Non Residential — — 57 57 188,706 188,763 Agriculture 41 — 347 388 148,345 148,733 All Other Commercial 30 3 — 33 208,633 208,666 Residential First Liens 3,365 429 1,473 5,267 231,684 236,951 Home Equity 155 8 110 273 39,378 39,651 Junior Liens 132 225 63 420 49,111 49,531 Multifamily — — — — 109,609 109,609 All Other Residential — 9 15 24 9,146 9,170 Consumer Motor Vehicle 4,766 609 177 5,552 309,238 314,790 All Other Consumer 208 7 12 227 27,456 27,683 TOTAL $ 10,229 $ 1,718 $ 4,735 $ 16,682 $ 1,944,526 $ 1,961,208 Greater December 31, 2017 30-59 Days 60-89 Days than 90 days Total (Dollar amounts in thousands) Past Due Past Due Past Due Past Due Current Total Commercial Commercial & Industrial $ 372 $ 80 $ 640 $ 1,092 $ 474,709 $ 475,801 Farmland 341 — 3,671 4,012 104,457 108,469 Non Farm, Non Residential 141 — — 141 200,804 200,945 Agriculture 141 — 561 702 152,388 153,090 All Other Commercial — — — — 207,875 207,875 Residential First Liens 5,467 1,317 1,434 8,218 247,029 255,247 Home Equity 310 46 8 364 35,752 36,116 Junior Liens 274 106 194 574 41,688 42,262 Multifamily — — — — 90,141 90,141 All Other Residential 300 — 12 312 13,329 13,641 Consumer Motor Vehicle 4,770 697 294 5,761 298,211 303,972 All Other Consumer 107 22 — 129 25,334 25,463 TOTAL $ 12,223 $ 2,268 $ 6,814 $ 21,305 $ 1,891,717 $ 1,913,022 |
Analysis of risk category of loans by class of loans | As of December 31, 2018 and 2017 , and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: December 31, 2018 Special (Dollar amounts in thousands) Pass Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 472,008 $ 20,600 $ 18,374 $ — $ 7,428 $ 518,410 Farmland 90,367 7,587 7,783 — 19 105,756 Non Farm, Non Residential 170,757 5,442 10,439 — 1,695 188,333 Agriculture 118,952 10,010 16,637 — 457 146,056 All Other Commercial 198,302 43 6,777 — 2,675 207,797 Residential First Liens 43,915 1,043 3,504 — 187,685 236,147 Home Equity 963 — 148 — 38,471 39,582 Junior Liens 1,983 74 224 76 47,060 49,417 Multifamily 109,361 — — — 17 109,378 All Other Residential — — 15 — 9,131 9,146 Consumer Motor Vehicle — — 627 — 312,863 313,490 All Other Consumer — — 34 — 27,517 27,551 TOTAL $ 1,206,608 $ 44,799 $ 64,562 $ 76 $ 635,018 $ 1,951,063 In February 2019, based on the receipt and analysis of current financial statements from a borrower, loans totaling $9 million were downgraded from special mention to substandard. The impact to the allowance for loan losses related to this downgrade was not material. December 31, 2017 Special (Dollar amounts in thousands) Pass Mention Substandard Doubtful Not Rated Total Commercial Commercial & Industrial $ 430,015 $ 19,889 $ 18,611 $ 38 $ 5,947 $ 474,500 Farmland 88,338 10,782 7,466 — 10 106,596 Non Farm, Non Residential 179,181 7,689 13,632 — — 200,502 Agriculture 111,724 17,482 21,388 — 342 150,936 All Other Commercial 194,170 2,723 7,459 — 2,604 206,956 Residential First Liens 45,320 750 3,980 5 204,329 254,384 Home Equity 319 — 64 — 35,653 36,036 Junior Liens 1,882 76 342 100 39,755 42,155 Multifamily 89,936 — — — 36 89,972 All Other Residential — — 67 — 13,529 13,596 Consumer Motor Vehicle — — 731 — 301,900 302,631 All Other Consumer — — 44 — 25,301 25,345 TOTAL $ 1,140,885 $ 59,391 $ 73,784 $ 143 $ 629,406 $ 1,903,609 |
PREMISES AND EQUIPMENT_ (Tables
PREMISES AND EQUIPMENT: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Gross [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment are summarized as follows: December 31, (Dollar amounts in thousands) 2018 2017 Land $ 11,975 $ 12,118 Building and leasehold improvements 56,061 55,854 Furniture and equipment 44,772 46,399 112,808 114,371 Less accumulated depreciation (66,254 ) (66,099 ) TOTAL $ 46,554 $ 48,272 |
Schedule of Rent Expense | Rent commitments, before considering renewal options that generally are present, were as follows: 2019 $ 839 2020 671 2021 572 2022 446 2023 398 Thereafter 944 $ 3,870 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Subject to Amortization | Intangible assets subject to amortization at December 31, 2018 and 2017 are as follows: 2018 2017 Gross Accumulated Gross Accumulated (Dollar amounts in thousands) Amount Amortization Amount Amortization Core deposit intangible $ 10,836 $ 9,639 $ 10,836 $ 9,206 $ 10,836 $ 9,639 $ 10,836 $ 9,206 |
Estimated Amortization Expense | Estimated amortization expense for the next five years is as follows: In thousands 2019 $ 350 2020 252 2021 232 2022 224 2023 139 |
DEPOSITS_ (Tables)
DEPOSITS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Maturities of Time Deposits [Abstract] | |
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years are as follows: (dollar amounts in thousands) 2019 $ 172,270 2020 55,804 2021 29,465 2022 29,084 2023 13,960 |
SHORT-TERM BORROWINGS_ (Tables)
SHORT-TERM BORROWINGS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short Term Borrowings Disclosure [Abstract] | |
Schedule of short-term borrowings | A summary of the carrying value of the Corporation's short-term borrowings at December 31, 2018 and 2017 is presented below: (Dollar amounts in thousands) 2018 2017 Federal funds purchased $ 43,250 $ 30,165 Repurchase-agreements 26,406 27,521 $ 69,656 $ 57,686 (Dollar amounts in thousands) 2018 2017 Average amount outstanding $ 41,557 $ 39,704 Maximum amount outstanding at a month end 69,656 85,714 Average interest rate during year 1.24 % 0.62 % Interest rate at year-end 1.86 % 0.96 % |
OTHER BORROWINGS_ (Tables)
OTHER BORROWINGS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Borrowings Disclosure [Abstract] | |
Schedule of other borrowings | |
Aggregate Minimum Annual Retirements |
INCOME TAXES_ (Tables)
INCOME TAXES: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income tax expense is summarized as follows: (Dollar amounts in thousands) 2018 2017 2016 Federal: Currently payable $ 7,018 $ 8,303 $ 15,514 Deferred 1,793 3,756 1,326 Expense due to enactment of federal tax reform — 6,282 — 8,811 18,341 16,840 State: Currently payable 1,699 1,818 2,857 Deferred 635 463 186 2,334 2,281 3,043 TOTAL $ 11,145 $ 20,622 $ 19,883 |
Reconciliation of Income Tax Expense | The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 21% for 2018 (35% for 2017 and 2016) to income before income taxes is summarized as follows: (Dollar amounts in thousands) 2018 2017 2016 Federal income taxes computed at the statutory rate $ 12,122 $ 17,414 $ 20,403 Add (deduct) tax effect of: Tax exempt income (2,495 ) (4,102 ) (3,992 ) Non-deductible insurance brokerage goodwill — — 1,797 ESOP dividend deduction (103 ) (102 ) (47 ) State tax, net of federal benefit 1,846 1,483 1,978 Affordable housing credits (148 ) (148 ) (148 ) Expense due to enactment of federal tax reform — 6,282 — Other, net (77 ) (205 ) (108 ) TOTAL $ 11,145 $ 20,622 $ 19,883 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2018 and 2017 , are as follows: (Dollar amounts in thousands) 2018 2017 Deferred tax assets: Other than temporary impairment $ 761 $ 1,829 Net unrealized losses on retirement plans 5,783 6,609 Net unrealized losses on securities available for sale 2,063 — Loan loss provisions 5,463 5,195 Deferred compensation 2,883 3,661 Compensated absences 576 563 Post-retirement benefits 1,338 1,359 Deferred loss on acquisition 577 663 Other 2,140 2,123 GROSS DEFERRED ASSETS 21,584 22,002 Deferred tax liabilities: Net unrealized gains on securities available-for-sale — (804 ) Depreciation (2,004 ) (1,989 ) Mortgage servicing rights (319 ) (308 ) Pensions (335 ) (201 ) Intangibles (2,852 ) (2,446 ) Other (2,614 ) (2,408 ) GROSS DEFERRED LIABILITIES (8,124 ) (8,156 ) NET DEFERRED TAX ASSETS $ 13,460 $ 13,846 |
Reconciliation of Unrecognized Tax Benefits | Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (Dollar amounts in thousands) 2018 2017 2016 Balance at January 1 $ 825 $ 698 $ 513 Additions based on tax positions related to the current year 174 257 288 Additions based on tax positions related to prior years — — — Reductions due to the statute of limitations (77 ) (130 ) (103 ) Balance at December 31 $ 922 $ 825 $ 698 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Summary of Commitment and Contingent Liabilities | Commitment and contingent liabilities are summarized as follows at December 31: (Dollar amounts in thousands) 2018 2017 Home Equity $ 57,341 $ 57,060 Commercial Operating Lines 285,524 246,855 Other Commitments 81,593 83,786 TOTAL $ 424,458 $ 387,701 Commercial letters of credit $ 4,673 $ 5,012 |
RETIREMENT PLANS_ (Tables)
RETIREMENT PLANS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | Net periodic benefit cost and other amounts recognized in other comprehensive income included the following components: (Dollar amounts in thousands) 2018 2017 2016 Service cost - benefits earned $ 1,388 $ 1,432 $ 1,882 Interest cost on projected benefit obligation 3,194 3,621 3,729 Expected return on plan assets (3,962 ) (3,940 ) (3,429 ) Net amortization and deferral 1,448 1,205 1,936 Net periodic pension cost 2,068 2,318 4,118 Net loss (gain) during the period (1,192 ) 5,366 (6,150 ) Amortization of prior service cost (1 ) (1 ) (1 ) Amortization of unrecognized gain (loss) (1,447 ) (1,204 ) (1,935 ) Total recognized in other comprehensive (income) loss (2,640 ) 4,161 (8,086 ) Total recognized net periodic pension cost and other comprehensive income $ (572 ) $ 6,479 $ (3,968 ) |
Schedule of Defined Benefit Plans Disclosures | The information below sets forth the change in projected benefit obligation, reconciliation of plan assets, and the funded status of the Corporation's retirement program. Actuarial present value of benefits is based on service to date and present pay levels. (Dollar amounts in thousands) 2018 2017 Change in benefit obligation: Benefit obligation at January 1 $ 98,096 $ 93,233 Service cost 1,388 1,432 Interest cost 3,194 3,621 Actuarial (gain) loss (10,618 ) 5,305 Benefits paid (4,264 ) (5,495 ) Benefit obligation at December 31 87,796 98,096 Reconciliation of fair value of plan assets: Fair value of plan assets at January 1 71,449 70,132 Actual return on plan assets (5,464 ) 3,879 Employer contributions 2,614 2,933 Benefits paid (4,264 ) (5,495 ) Fair value of plan assets at December 31 64,335 71,449 Funded status at December 31 (plan assets less benefit obligation) $ (23,461 ) $ (26,647 ) |
Schedule of Assumptions Used | The accumulated benefit obligation for the defined benefit pension plan was $83.9 million and $93.3 million at year-end 2018 and 2017 . Principal assumptions used to determine pension benefit obligation at year end: 2018 2017 Discount rate 4.22 % 3.60 % Rate of increase in compensation levels 3.00 3.00 Principal assumptions used to determine net periodic pension cost: 2018 2017 Discount rate 3.60 % 4.14 % Rate of increase in compensation levels 3.00 3.00 Expected long-term rate of return on plan assets 6.00 6.00 |
Schedule of Allocation of Plan Assets | The Corporation's pension plan weighted-average asset allocation for the years 2018 and 2017 by asset category are as follows: Pension Plan Target Allocation ESOP Target Allocation Pension Percentage of Plan Assets at December 31, ESOP Percentage of Plan Assets at December 31, ASSET CATEGORY 2018 2018 2018 2017 2018 2017 Equity securities 25-75% 95-99% 65 % 72 % 99 % 98 % Debt securities 0-50% 0-0% 31 % 25 % — % — % Other 0-20% 0-5% 4 % 3 % 1 % 2 % TOTAL 100 % 100 % 100 % 100 % |
Schedule Of Fair Value Of Plan Assets | The fair value of the plan assets at December 31, 2018 and 2017 , by asset category, is as follows: Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Observable Inputs (Dollar amounts in thousands) Total (Level 1) (Level 2) (Level 3) Plan assets Equity securities $ 43,931 $ 43,931 $ — $ — Debt securities 10,652 — 10,652 — Investment Funds 9,752 9,752 — — Total plan assets $ 64,335 $ 53,683 $ 10,652 $ — Fair Value Measurements at December 31, 2017 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Observable Inputs (Dollar amounts in thousands) Total (Level 1) (Level 2) (Level 3) Plan assets Equity securities $ 48,152 $ 48,152 $ — $ — Debt securities 10,717 — 10,717 — Investment Funds 12,580 12,580 — — Total plan assets $ 71,449 $ 60,732 $ 10,717 $ — |
Schedule of Expected Benefit Payments | Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: (Dollar amounts in thousands) 2019 $ 233 2020 233 2021 228 2022 228 2023 230 2024-2028 1,119 Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: PENSION BENEFITS (Dollar amounts in thousands) 2019 $ 4,692 2020 4,843 2021 5,034 2022 5,221 2023 5,391 2024-2028 28,701 |
Schedule Of Weighted Average Assumptions | Weighted average assumptions at December 31: December 31, 2018 2017 Discount rate 4.22 % 3.60 % Initial weighted health care cost trend rate 5.00 % 5.00 % Ultimate health care cost trend rate 5.00 5.00 Year that the rate is assumed to stabilize and remain unchanged 2019 2018 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in the assumed health care cost trend rates would have the following effects: 1% Point 1% Point (Dollar amounts in thousands) Increase Decrease Effect on total of service and interest cost components $ 1 $ 1 Effect on post-retirement benefit obligation 16 15 |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income at December 31, 2018 and 2017 consist of: (Dollar amounts in thousands) 2018 2017 Net loss (gain) $ 22,982 $ 25,621 Prior service cost (credit) 2 3 $ 22,984 $ 25,624 |
Postretirement Health Coverage [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The Corporation uses a measurement date of December 31. Accrued post-retirement benefits as of December 31, 2018 and 2017 are as follows: December 31, (Dollar amounts in thousands) 2018 2017 Change in benefit obligation: Benefit obligation at January 1 $ 4,361 $ 4,276 Service cost 42 53 Interest cost 131 172 Plan participants' contributions 83 75 Actuarial (gain) loss (872 ) 83 Benefits paid (325 ) (298 ) Benefit obligation at December 31 $ 3,420 $ 4,361 Funded status at December 31 $ 3,420 $ 4,361 Post-retirement health benefit expense included the following components: Years Ended December 31, (Dollar amounts in thousands) 2018 2017 2016 Service cost $ 42 $ 53 $ 55 Interest cost 131 172 186 Net periodic benefit cost 173 225 241 Net loss (gain) during the period (872 ) 83 (144 ) Total recognized in other comprehensive income (loss) (872 ) 83 (144 ) Total recognized net periodic benefit cost and other comprehensive income $ (699 ) $ 308 $ 97 |
Supplemental Employee Retirement Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The amounts recognized in other comprehensive income in the current year are as follows: (Dollar amounts in thousands) 2018 2017 2016 Net loss (gain) during the period $ 260 $ 527 $ (511 ) Amortization of prior service cost — — — Amortization of unrecognized gain (loss) (51 ) — (57 ) Total recognized in other comprehensive (income) loss $ 209 $ 527 $ (568 ) |
Schedule of Expected Benefit Payments | Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: (Dollar amounts on thousands) 2019 $ — 2020 199 2021 388 2022 379 2023 368 2024-2028 1,994 |
STOCK BASED COMPENSATION_ (Tabl
STOCK BASED COMPENSATION: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | 2018 2017 Number Weighted Average Grant Date Number Weighted Average Grant Date (shares in thousands) Outstanding Fair Value Outstanding Fair Value Nonvested balance at January 1, 18,019 41.14 20,524 32.83 Granted during the year 17,220 45.55 16,562 46.70 Vested during the year (18,240 ) 40.85 (19,067 ) 37.03 Forfeited during the year — — — — Nonvested balance at December 31, 16,999 45.92 18,019 41.14 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS): (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes, net of tax within each classification of accumulated other comprehensive income for the years ended December 31, 2018 and 2017 . Unrealized gains and 2018 Losses on Retirement (Dollar amounts in thousands) Securities plans Total Beginning balance, January 1 $ 2,258 $ (16,962 ) $ (14,704 ) Change in other comprehensive income before reclassification (8,859 ) 1,392 (7,467 ) Amounts reclassified from accumulated other comprehensive income (2 ) 1,085 1,083 Net current period other comprehensive income (loss) (8,861 ) 2,477 (6,384 ) ASU 2018-02 adjustment $ 498 $ (2,864 ) $ (2,366 ) Ending balance, December 31 $ (6,105 ) $ (17,349 ) $ (23,454 ) Unrealized gains and 2017 Losses on Retirement (Dollar amounts in thousands) Securities plans Total Beginning balance, January 1 $ (1,077 ) $ (13,087 ) $ (14,164 ) Change in other comprehensive income before reclassification 3,371 (4,609 ) (1,238 ) Amounts reclassified from accumulated other comprehensive income (36 ) 734 698 Net current period other comprehensive income (loss) 3,335 (3,875 ) (540 ) Ending balance, December 31 $ 2,258 $ (16,962 ) $ (14,704 ) Balance Current Balance (Dollar amounts in thousands) 1/1/2018 Change 12/31/2018 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ (1,371 ) $ (7,075 ) $ (8,446 ) Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 3,629 (1,288 ) 2,341 Total unrealized gain (loss) on securities available-for-sale $ 2,258 $ (8,363 ) $ (6,105 ) Unrealized loss on retirement plans (16,962 ) (387 ) (17,349 ) TOTAL $ (14,704 ) $ (8,750 ) $ (23,454 ) Balance at Current Period Balance at (Dollar amounts in thousands) 1/1/2017 Change 12/31/2017 Unrealized gains (losses) on securities available-for-sale without other than temporary impairment $ (3,018 ) $ 1,647 $ (1,371 ) Unrealized gains (losses) on securities available-for-sale with other than temporary impairment 1,941 1,688 3,629 Total unrealized gain (loss) on securities available-for-sale $ (1,077 ) $ 3,335 $ 2,258 Unrealized loss on retirement plans (13,087 ) (3,875 ) (16,962 ) TOTAL $ (14,164 ) $ (540 ) $ (14,704 ) |
Reclassification out of Accumulated Other Comprehensive Income | Balance at December 31, 2018 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 2 Net securities gains (losses) on available-for-sale — Income tax expense securities $ 2 Net of tax Amortization of $ (1,447 ) (a) retirement plan items 362 Income tax expense $ (1,085 ) Net of tax Total reclassifications for the period $ (1,083 ) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). Balance at December 31, 2017 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 59 Net securities gains (losses) on available-for-sale (23 ) Income tax expense securities $ 36 Net of tax Amortization of $ (1,204 ) (a) retirement plan items 470 Income tax expense $ (734 ) Net of tax Total reclassifications for the period $ (698 ) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). Balance at December 31, 2016 Details about accumulated Amount reclassified from Affected line item in other comprehensive accumulated other the statement where income components comprehensive income net income is presented (in thousands) Unrealized gains and losses $ 34 Net securities gains (losses) on available-for-sale (13 ) Income tax expense securities $ 21 Net of tax Amortization of $ (1,992 ) (a) retirement plan items 776 Income tax expense $ (1,216 ) Net of tax Total reclassifications for the period $ (1,195 ) Net of tax (a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). |
REGULATORY MATTERS_ (Tables)
REGULATORY MATTERS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the actual and required capital amounts and related ratios for the Corporation and First Financial Bank, N.A., at year-end 2018 and 2017 . To Be Well Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollar amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Total risk-based capital Corporation – 2018 $ 451,036 19.36 % $ 230,091 9.875 % N/A N/A Corporation – 2017 $ 412,525 17.88 % $ 213,446 9.250 % N/A N/A First Financial Bank – 2018 421,553 18.71 % 222,453 9.875 % 225,268 10.00 % First Financial Bank – 2017 386,593 17.30 % 206,745 9.250 % 223,508 10.00 % Common equity tier I capital Corporation – 2018 $ 430,600 18.48 % $ 148,540 6.375 % N/A N/A Corporation – 2017 $ 392,615 17.01 % $ 132,682 5.750 % N/A N/A First Financial Bank – 2018 405,181 17.99 % 143,609 6.375 % 146,424 6.50 % First Financial Bank – 2017 370,061 16.56 % 128,517 5.750 % 145,280 6.50 % Tier I risk-based capital Corporation – 2018 $ 430,600 18.48 % $ 183,490 7.875 % N/A N/A Corporation – 2017 $ 392,615 17.01 % $ 167,295 7.250 % N/A N/A First Financial Bank – 2018 405,181 17.99 % 177,399 7.875 % 180,215 8.00 % First Financial Bank – 2017 370,061 16.56 % 162,044 7.250 % 178,807 8.00 % Tier I leverage capital Corporation – 2018 $ 430,600 14.59 % $ 118,072 4.00 % N/A N/A Corporation – 2017 $ 392,615 13.31 % $ 117,956 4.00 % N/A N/A First Financial Bank – 2018 405,181 14.19 % 114,213 4.00 % 142,767 5.00 % First Financial Bank – 2017 370,061 12.81 % 115,553 4.00 % 144,441 5.00 % |
PARENT COMPANY CONDENSED FINA_2
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | CONDENSED BALANCE SHEETS December 31, (Dollar amounts in thousands) 2018 2017 ASSETS Cash deposits in affiliated banks $ 3,342 $ 3,198 Investments in subsidiaries 442,547 414,839 Land and headquarters building, net 5,000 5,193 Other 900 — Total Assets $ 451,789 $ 423,230 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Dividends payable $ 6,258 $ 6,234 Other liabilities 2,830 3,427 TOTAL LIABILITIES 9,088 9,661 Shareholders' Equity 442,701 413,569 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 451,789 $ 423,230 |
Schedule of Condensed Income Statement | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, (Dollar amounts in thousands) 2018 2017 2016 Dividends from subsidiaries $ 13,651 $ 30,814 $ 31,781 Other income 720 720 722 Other operating expenses (2,814 ) (2,647 ) (2,581 ) Income before income taxes and equity in undistributed earnings of subsidiaries 11,557 28,887 29,922 Income tax benefit 934 889 821 Income before equity in undistributed earnings of subsidiaries 12,491 29,776 30,743 Equity in undistributed earnings of subsidiaries 34,092 (645 ) 7,670 Net income $ 46,583 $ 29,131 $ 38,413 Comprehensive income $ 40,199 $ 28,591 $ 33,650 |
Schedule of Condensed Cash Flow Statement | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (Dollar amounts in thousands) 2018 2017 2016 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 46,583 $ 29,131 $ 38,413 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 193 195 200 Equity in undistributed earnings (34,092 ) 645 (7,670 ) Contribution of shares to ESOP 1,087 1,062 1,361 Restricted stock compensation 745 706 684 Increase (decrease) in other liabilities (585 ) (247 ) (262 ) (Increase) decrease in other assets (900 ) — 12 NET CASH FROM OPERATING ACTIVITIES 13,031 31,492 32,738 CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of treasury stock (391 ) (503 ) (19,396 ) Dividends paid (12,496 ) (30,556 ) (12,359 ) NET CASH FROM FINANCING ACTIVITES (12,887 ) (31,059 ) (31,755 ) NET (DECREASE) INCREASE IN CASH 144 433 983 CASH, BEGINNING OF YEAR 3,198 2,765 1,782 CASH, END OF YEAR $ 3,342 $ 3,198 $ 2,765 Supplemental disclosures of cash flow information: Cash paid during the year for: Interest $ — $ — $ — Income taxes $ 7,185 $ 11,158 $ 18,739 |
SELECTED QUARTERLY DATA (UNAUDI
SELECTED QUARTERLY DATA (UNAUDITED): (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | 2018 (Dollar amounts in thousands) Interest Interest Net Interest Provision Net Income (a) Net Income March 31 $ 29,377 $ 1,904 $ 27,473 $ 1,473 $ 8,953 $ 0.73 June 30 $ 32,903 $ 2,219 $ 30,684 $ 1,355 $ 15,261 $ 1.25 September 30 $ 31,375 $ 2,548 $ 28,827 $ 1,470 $ 11,313 $ 0.92 December 31 $ 32,569 $ 2,974 $ 29,595 $ 1,470 $ 11,056 $ 0.90 (a) The second quarter of 2018 included the recovery of a security previously written down for other-than temporary impairment, which contributed $2.4 million pre-tax to interest income and $4.5 million pre-tax to other income. 2017 (Dollar amounts in thousands) Interest Interest Net Provision Net Income (b) Net Income March 31 $ 27,846 $ 1,339 $ 26,507 $ 1,596 $ 9,369 $ 0.77 June 30 $ 28,128 $ 1,568 $ 26,560 $ 1,040 $ 8,352 $ 0.68 September 30 $ 28,805 $ 1,697 $ 27,108 $ 1,185 $ 8,794 $ 0.72 December 31 $ 29,416 $ 1,734 $ 27,682 $ 1,474 $ 2,616 $ 0.21 (b) The fourth quarter of 2017 was reduced due to the additional expense of $6.3 million for the enactment of federal tax reform. |
BUSINESS AND SIGNIFICANT ACCO_3
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)subsidiarybranch | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Number of investment subsidiaries (subsidiary) | subsidiary | 2 | ||
Transfer to other real estate | $ | $ 590 | $ 900 | $ 700 |
Fair value of indemnification assets reimbursement from FDIC | $ | $ 12,100 | ||
FDIC Reimburse (up to 95%) (percent) | 95.00% | ||
Repayment of deferred fees and interest in years | 10 years | ||
Expenses for deferred compensation | $ | $ 98 | 95 | 114 |
Deferred compensation liability, current | $ | $ 1,900 | 2,600 | |
Payment of incentive rewards | 15 years | ||
Compensation liability | $ | $ 8,500 | 11,400 | |
Vesting period | 3 years | ||
Officers' compensation expense | $ | $ 1,700 | 1,600 | 1,500 |
Deferred compensation liablity incentive plan | $ | $ 899 | 836 | |
Income tax examination, description | The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. | ||
Likelihood of unfavorable settlement (percent) | 50.00% | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 10 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 12 years | ||
Furniture and Fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives | P3Y | ||
Furniture and Fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives | 5 | ||
Buildings And Leasehold Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives | 33 | ||
Buildings And Leasehold Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives | 39 | ||
Vigo County | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 11 | ||
Daviess County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Gibson County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Greene County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Putnam County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Sullivan County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 4 | ||
Vanderburgh County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Vermillion County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 4 | ||
Clark County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Coles County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 3 | ||
Crawford County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
Franklin County, Illinois [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
Jasper County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Lawrence County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Livingston County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
Marion County, Illinois [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
McLean County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 3 | ||
Richland County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
Wayne County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
First Financial Bank [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Investments in subsidiaries | $ | $ 778,300 | ||
Service fees | |||
Property, Plant and Equipment [Line Items] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ | $ 1,300 | $ 1,300 | $ 1,300 |
FAIR VALUES OF FINANCIAL INST_3
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value measurement | ||
Securities available-for-sale | $ 784,916 | $ 814,931 |
U.S. Government entity mortgage-backed securities | ||
Fair value measurement | ||
Securities available-for-sale | 25,364 | 13,695 |
Mortgage-backed securities, residential | ||
Fair value measurement | ||
Securities available-for-sale | 178,743 | 215,338 |
Mortgage-backed securities, commercial | ||
Fair value measurement | ||
Securities available-for-sale | 0 | 1 |
Collateralized mortgage obligations | ||
Fair value measurement | ||
Securities available-for-sale | 343,616 | 339,670 |
State and municipal obligations | ||
Fair value measurement | ||
Securities available-for-sale | 233,935 | 231,622 |
Collateralized debt obligations | ||
Fair value measurement | ||
Securities available-for-sale | 3,258 | 14,605 |
Level 1 | ||
Fair value measurement | ||
Securities available-for-sale | 0 | 0 |
Level 2 | ||
Fair value measurement | ||
Securities available-for-sale | 778,523 | 796,646 |
Derivative Assets | 218 | 298 |
Derivative Liabilities | (218) | (298) |
Level 2 | U.S. Government entity mortgage-backed securities | ||
Fair value measurement | ||
Securities available-for-sale | 25,364 | 13,695 |
Level 2 | Mortgage-backed securities, residential | ||
Fair value measurement | ||
Securities available-for-sale | 178,743 | 215,338 |
Level 2 | Mortgage-backed securities, commercial | ||
Fair value measurement | ||
Securities available-for-sale | 0 | 1 |
Level 2 | Collateralized mortgage obligations | ||
Fair value measurement | ||
Securities available-for-sale | 343,616 | 339,670 |
Level 2 | State and municipal obligations | ||
Fair value measurement | ||
Securities available-for-sale | 230,800 | 227,942 |
Level 3 | ||
Fair value measurement | ||
Securities available-for-sale | 6,393 | 18,285 |
Level 3 | State and municipal obligations | ||
Fair value measurement | ||
Securities available-for-sale | 3,135 | 3,680 |
Level 3 | Collateralized debt obligations | ||
Fair value measurement | ||
Securities available-for-sale | $ 3,258 | $ 14,605 |
FAIR VALUES OF FINANCIAL INST_4
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Total realized/unrealized gains or losses | ||
Beginning balance, January 1 | $ 18,285 | $ 16,578 |
Included in earnings | 0 | 0 |
Included in other comprehensive income | (2,840) | 2,773 |
Purchases | 0 | 0 |
Settlements | (9,052) | (1,066) |
Ending balance, December 31 | 6,393 | 18,285 |
State and municipal obligations | ||
Total realized/unrealized gains or losses | ||
Beginning balance, January 1 | 3,680 | 4,210 |
Included in earnings | 0 | 0 |
Included in other comprehensive income | 0 | |
Purchases | 0 | 0 |
Settlements | (545) | (530) |
Ending balance, December 31 | 3,135 | 3,680 |
Collateralized debt obligations | ||
Total realized/unrealized gains or losses | ||
Beginning balance, January 1 | 14,605 | 12,368 |
Included in earnings | 0 | 0 |
Included in other comprehensive income | (2,840) | 2,773 |
Settlements | (8,507) | (536) |
Ending balance, December 31 | $ 3,258 | $ 14,605 |
FAIR VALUES OF FINANCIAL INST_5
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details 2) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
State and municipal obligations | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 3,135 | $ 3,680 |
Other Real Estate | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 603 | 1,880 |
Impaired Loans | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,639 | $ 3,882 |
Measurement Input, Default Rate [Member] | State And Municipal Obligations | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0 | 0 |
Measurement Input, Discount Rate [Member] | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0 | |
Measurement Input, Discount Rate [Member] | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.50 | |
Measurement Input, Discount Rate [Member] | State and municipal obligations | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.0305 | 0.0305 |
Measurement Input, Discount Rate [Member] | State and municipal obligations | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.0550 | 0.0550 |
Measurement Input, Discount Rate [Member] | Other Real Estate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.0500 | 0.0500 |
Measurement Input, Discount Rate [Member] | Other Real Estate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.2000 | 0.2000 |
Measurement Input, Discount Rate [Member] | Impaired Loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0 | 0 |
Measurement Input, Discount Rate [Member] | Impaired Loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.5000 | 0.5000 |
FAIR VALUES OF FINANCIAL INST_6
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loans identified as impaired by class of loans | ||
Carrying Value | $ 2,376 | $ 4,507 |
Allowance for Loan Losses Allocated | 737 | 625 |
Fair value | 1,639 | 3,882 |
Commercial & Industrial | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 1,819 | 493 |
Allowance for Loan Losses Allocated | 593 | 146 |
Fair value | 1,226 | 347 |
Farmland | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 211 | 3,035 |
Allowance for Loan Losses Allocated | 44 | 268 |
Fair value | 167 | 2,767 |
Non Farm, Non Residential | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
Agriculture | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 346 | 537 |
Allowance for Loan Losses Allocated | 100 | 205 |
Fair value | 246 | 332 |
All Other Commercial | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
First Liens | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 442 |
Allowance for Loan Losses Allocated | 0 | 6 |
Fair value | 0 | 436 |
Home Equity | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
Junior Liens | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
Multifamily | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
All Other Residential | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
Motor Vehicle | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
All Other Consumer | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | $ 0 | $ 0 |
FAIR VALUES OF FINANCIAL INST_7
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying amount and estimated fair value of financial instruments | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 2,974 | $ 7,132 | $ 13,974 | $ 13,995 |
Securities available-for-sale | 784,916 | 814,931 | ||
Restricted Stock | 10,390 | 10,379 | ||
Accrued interest receivable | 13,970 | 12,913 | ||
Deposits | (2,436,727) | (2,458,653) | ||
Level 1 | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Cash and due from banks | 23,418 | 20,682 | ||
Securities available-for-sale | 0 | |||
Level 2 | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Cash and due from banks | 50,970 | 53,425 | ||
Federal funds sold | 0 | |||
Securities available-for-sale | 778,523 | 796,646 | ||
Accrued interest receivable | 3,005 | 3,596 | ||
Deposits | (2,426,128) | (2,456,900) | ||
Short-term borrowings | (69,656) | (57,686) | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Accrued interest payable | (609) | (372) | ||
Level 3 | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Securities available-for-sale | 6,393 | 18,285 | ||
Loans, net | 1,889,795 | 1,878,166 | ||
Accrued interest receivable | 10,965 | 9,317 | ||
Reported Value Measurement [Member] | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Cash and due from banks | 74,388 | 74,107 | ||
Federal funds sold | 0 | |||
Securities available-for-sale | 784,916 | 814,931 | ||
Restricted Stock | 10,390 | 10,379 | ||
Loans, net | 1,933,552 | 1,886,852 | ||
Accrued interest receivable | 13,970 | 12,913 | ||
Deposits | (2,436,727) | (2,458,653) | ||
Short-term borrowings | (69,656) | (57,686) | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Accrued interest payable | (609) | (372) | ||
Estimate of Fair Value Measurement [Member] | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Cash and due from banks | 74,388 | 74,107 | ||
Federal funds sold | 0 | |||
Securities available-for-sale | 784,916 | 814,931 | ||
Loans, net | 1,889,795 | 1,878,166 | ||
Accrued interest receivable | 13,970 | 12,913 | ||
Deposits | (2,426,128) | (2,456,900) | ||
Short-term borrowings | (69,656) | (57,686) | ||
Federal Home Loan Bank advances | 0 | 0 | ||
Accrued interest payable | $ (609) | $ (372) |
FAIR VALUES OF FINANCIAL INST_8
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Carrying amount and estimated fair value of financial instruments | ||
Gain On Sale Of Securities Net | $ 5 | $ 185 |
Valuation allowance for impaired loans | 737 | 625 |
Provision for impaired loan losses | 112 | 294 |
Other Real Estate Commercial loan | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 200 | 1,700 |
Other Real Estate Residential Loan | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 432 | 212 |
Impaired Loans | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 1,639 | 3,882 |
Valuation allowance for impaired loans | 700 | 600 |
Other Real Estate | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 603 | 1,880 |
Assets fair value adjustment increase (decrease) | $ (598) | $ (951) |
Measurement Input, Discount Rate [Member] | Minimum | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 0 | |
Measurement Input, Discount Rate [Member] | Minimum | Impaired Loans | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 0 | 0 |
Measurement Input, Discount Rate [Member] | Minimum | Other Real Estate | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 0.0500 | 0.0500 |
Measurement Input, Discount Rate [Member] | Maximum | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 0.50 | |
Measurement Input, Discount Rate [Member] | Maximum | Impaired Loans | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 0.5000 | 0.5000 |
Measurement Input, Discount Rate [Member] | Maximum | Other Real Estate | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 0.2000 | 0.2000 |
RESTRICTIONS ON CASH AND DUE _2
RESTRICTIONS ON CASH AND DUE FROM BANKS: (Details Textual) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Restrictions On Cash and Due From Banks Disclosure [Abstract] | ||
Cash Reserve Balance | $ 12.8 | $ 12.5 |
SECURITIES_ (Details)
SECURITIES: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | $ 793,084 | $ 811,369 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 7,046 | 13,097 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 15,214 | 9,535 |
Securities available-for-sale | 784,916 | 814,931 |
U.S. Government entity mortgage-backed securities | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 25,617 | 13,989 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 218 | 24 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 471 | 318 |
Securities available-for-sale | 25,364 | 13,695 |
Mortgage-backed securities, residential | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 182,050 | 215,079 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 723 | 2,071 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 4,030 | 1,812 |
Securities available-for-sale | 178,743 | 215,338 |
Mortgage-backed securities, commercial | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 0 | 1 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Securities available-for-sale | 0 | 1 |
Collateralized mortgage obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 352,823 | 346,005 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 217 | 370 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 9,424 | 6,705 |
Securities available-for-sale | 343,616 | 339,670 |
State and municipal obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 232,457 | 227,651 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,767 | 4,671 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,289 | 700 |
Securities available-for-sale | 233,935 | 231,622 |
Collateralized debt obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 137 | 8,644 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 3,121 | 5,961 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Securities available-for-sale | $ 3,258 | $ 14,605 |
SECURITIES_ (Details 1)
SECURITIES: (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from Maturities, Prepayments and Calls of Held-to-maturity Securities | $ 2,418 | $ 15,348 | $ 8,160 |
Gross gains | 5 | 185 | 39 |
Gross losses | $ (3) | $ (126) | $ (5) |
SECURITIES_ (Details 2)
SECURITIES: (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 6,490 | |
Due after one but within five years | 33,133 | |
Due after five but within ten years | 69,397 | |
Due after ten years | 149,191 | |
Total of securities having specified maturity period | 258,211 | |
Mortgage-backed securities and collateralized mortgage obligations | 534,873 | |
TOTAL | 793,084 | $ 811,369 |
Fair Value | ||
Due in one year or less | 6,509 | |
Due after one but within five years | 33,582 | |
Due after five but within ten years | 70,314 | |
Due after ten years | 152,152 | |
Total of securities having specified maturities period | 262,557 | |
Mortgage-backed securities and collateralized mortgage obligations | 522,359 | |
TOTAL | $ 784,916 | $ 814,931 |
SECURITIES_ (Details 3)
SECURITIES: (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Less Than 12 Months | ||
Fair Value | $ 130,116 | $ 266,768 |
Unrealized Losses | (1,288) | (2,112) |
More Than 12 Months | ||
Fair Value | 405,894 | 222,763 |
Unrealized Losses | (13,926) | (7,423) |
Total | ||
Fair Value | 536,010 | 489,531 |
Unrealized Losses | (15,214) | (9,535) |
U.S. Government entity mortgage-backed securities | ||
Less Than 12 Months | ||
Fair Value | 3,052 | |
Unrealized Losses | (4) | |
More Than 12 Months | ||
Fair Value | 11,356 | |
Unrealized Losses | (467) | |
Total | ||
Fair Value | 14,408 | |
Unrealized Losses | (471) | |
Mortgage-backed securities, residential | ||
Less Than 12 Months | ||
Fair Value | 39,997 | 9,321 |
Unrealized Losses | (553) | (86) |
More Than 12 Months | ||
Fair Value | 111,423 | 3,538 |
Unrealized Losses | (3,477) | (232) |
Total | ||
Fair Value | 151,420 | 12,859 |
Unrealized Losses | (4,030) | (318) |
Mortgage-backed securities, commercial | ||
Less Than 12 Months | ||
Fair Value | 79,918 | |
Unrealized Losses | (425) | |
More Than 12 Months | ||
Fair Value | 53,815 | |
Unrealized Losses | (1,387) | |
Total | ||
Fair Value | 133,733 | |
Unrealized Losses | (1,812) | |
Collateralized mortgage obligations | ||
Less Than 12 Months | ||
Fair Value | 52,838 | 150,182 |
Unrealized Losses | (455) | (1,418) |
More Than 12 Months | ||
Fair Value | 241,373 | 146,750 |
Unrealized Losses | (8,969) | (5,287) |
Total | ||
Fair Value | 294,211 | 296,932 |
Unrealized Losses | (9,424) | (6,705) |
State and municipal obligations | ||
Less Than 12 Months | ||
Fair Value | 34,229 | 27,347 |
Unrealized Losses | (276) | (183) |
More Than 12 Months | ||
Fair Value | 41,742 | 18,660 |
Unrealized Losses | (1,013) | (517) |
Total | ||
Fair Value | 75,971 | 46,007 |
Unrealized Losses | $ (1,289) | (700) |
Collateralized debt obligations | ||
Less Than 12 Months | ||
Fair Value | 0 | |
Unrealized Losses | 0 | |
More Than 12 Months | ||
Fair Value | 0 | |
Unrealized Losses | 0 | |
Total | ||
Fair Value | 0 | |
Unrealized Losses | $ 0 |
SECURITIES_ (Details 4)
SECURITIES: (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Rollforward of the credit losses recognized in earnings | |||
Beginning balance, January 1, | $ 7,132 | $ 13,974 | $ 13,995 |
Amounts related to the credit loss for which other-than-temporary impairment was previously recognized | 0 | 0 | 0 |
Reductions for securities called during the period | (4,158) | (6,842) | |
Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security | 0 | 0 | (21) |
Increases to the amount related to the credit loss for which other- than-temporary impairment was previously recognized | 0 | 0 | 0 |
Ending balance, December 31, | $ 2,974 | $ 7,132 | $ 13,974 |
SECURITIES_ (Details Textual)
SECURITIES: (Details Textual) | 2 Months Ended | 12 Months Ended | |||
Mar. 06, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Securities pledged as collateral | $ 393,300,000 | $ 423,900,000 | |||
Gain on sale of investments | 5,000 | 185,000 | |||
Loss on sale of investments | $ 3,000 | 5,000 | |||
Number of investment securities with an amortized cost greater than fair value (investments) | 335 | ||||
Cumulative OTTI charges | $ 2,974,000 | 7,132,000 | $ 13,974,000 | $ 13,995,000 | |
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale | 143,157,000 | 141,819,000 | $ 168,506,000 | ||
Amortized Cost | 793,084,000 | 811,369,000 | |||
Securities available-for-sale | 784,916,000 | 814,931,000 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 15,214,000 | $ 9,535,000 | |||
Standard Poors | Minimum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Credit quality indicator pricing | 81.46 | ||||
Moody Investor Service | Minimum | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Credit quality indicator pricing | 21.14 | ||||
Other Than Temporarily Impaired Cdo [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Contractual balance | $ 3,700,000 | ||||
Reduced balance | 3,300,000 | ||||
Interest payment received | 600,000 | ||||
Cumulative OTTI charges | 3,000,000 | ||||
Other comprehensive income net | $ 3,100,000 | ||||
Base discount rate, which is subject to an additional margin | 3 month LIBOR | ||||
London Interbank Offered Rate (LIBOR) [Member] | Other Than Temporarily Impaired Cdo [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Available For Sale Securities Present Value Of Future Cash Flows Discount Rate, Basis Point Spread on Variable Rate Basis, Minimum | 1.60% | ||||
Available For Sale Securities Present Value Of Future Cash Flows Discount Rate, Basis Point Spread on Variable Rate Basis, Maximum | 1.80% | ||||
Subsequent Event [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale | $ 3,100,000 |
LOANS_ (Details)
LOANS: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | $ 1,951,063 | $ 1,903,609 | ||
Deferred costs, net | 2,925 | 3,152 | ||
Allowance for loan losses | (20,436) | (19,909) | $ (18,773) | $ (19,946) |
TOTAL | 1,933,552 | 1,886,852 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 1,166,352 | 1,139,490 | ||
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 443,670 | 436,143 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | $ 341,041 | $ 327,976 |
LOANS_ (Details Textual)
LOANS: (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 3.2 | $ 4.1 |
Loans serviced for others, not reported as assets | 473.8 | 484.4 |
Escrow deposit | 3 | 2.8 |
Fair value, based on valuations | $ 2.3 | $ 2.3 |
Assumptions used to estimate fair value, discount rate (percent) | 13.00% | 13.00% |
Assumptions used to estimate fair value, weighted average life | 8 years | |
Director and Executive Officer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | $ 42.7 | |
Advances | 45.6 | |
Repayments | 35.3 | |
Ending Balance | $ 53 | $ 42.7 |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assumptions used to estimate fair value, prepayment speed (percent) | 189.00% | 250.00% |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assumptions used to estimate fair value, prepayment speed (percent) | 88.00% | 112.00% |
LOANS_ (Details 1)
LOANS: (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Servicing Rights | ||||
Beginning of year | $ 1,434 | $ 1,549 | $ 1,746 | |
Additions | 513 | 477 | 480 | [1] |
Amortized to expense | (516) | (592) | (677) | |
End of year | $ 1,431 | $ 1,434 | $ 1,549 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmFjYzIwMTY2OGNiYTRhZTU5ZDRjOTlhODdkMDNjM2E3fFRleHRTZWxlY3Rpb246RDYxNzMyM0Y0MzQ0OTYxQzcwNUM5QTEzREY5QkRFOEIM} |
ACQUISITIONS AND FDIC INDEMNI_3
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 54 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | Aug. 16, 2013 | |
Business Acquisition [Line Items] | ||||||||||||||
Gain on Sale of certain assets and liabilities of Insurance Brokerage Operation | $ (199,000) | $ 12,800,000 | $ 0 | $ 0 | $ 12,822,000 | |||||||||
Deposits | $ 2,436,727,000 | $ 2,458,653,000 | 2,436,727,000 | 2,458,653,000 | ||||||||||
Goodwill | 34,355,000 | 34,355,000 | 34,355,000 | 34,355,000 | ||||||||||
Reimbursements from the FDIC | $ (24,300,000) | |||||||||||||
Covered loans | 3,200,000 | 4,300,000 | 3,200,000 | 4,300,000 | ||||||||||
Assets | 3,008,718,000 | 3,000,668,000 | 3,008,718,000 | 3,000,668,000 | ||||||||||
Net Income (Loss) Attributable to Parent | $ 11,056,000 | $ 11,313,000 | $ 15,261,000 | $ 8,953,000 | 2,616,000 | $ 8,794,000 | $ 8,352,000 | $ 9,369,000 | 46,583,000 | 29,131,000 | 38,413,000 | |||
Bank of America | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill recorded, which is expected to be tax deductable | $ 1,900 | |||||||||||||
First National Bank Of Danville | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Losses on assets, threshold under loss-sharing agreement (up to $29 million) | $ 29,000,000 | |||||||||||||
Percentage of losses to be reimbursed by the FDIC, on losses up to the threshold amount (percent) | 80.00% | |||||||||||||
Percentage of losses to be reimbursed by the FDIC, on losses exceeding the threshold amount (percent) | 95.00% | |||||||||||||
Forrest Sherer Insurance [Domain] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Revenues | 7,600,000 | 8,300,000 | ||||||||||||
Operating Income (Loss) | 168,000 | 544,000 | ||||||||||||
Goodwill | $ 5,100,000 | |||||||||||||
Assets | $ 13,000,000 | $ 13,000,000 | $ 15,800,000 |
ACQUISITIONS AND FDIC INDEMNI_4
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Beginning balance | $ 1,896 | $ 4,881 |
Discount accretion | 0 | 0 |
Disposals | (366) | (2,985) |
Total Covered Assets | 1,530 | 1,896 |
Commercial | ||
Business Acquisition [Line Items] | ||
Beginning balance | 1,896 | 3,451 |
Discount accretion | 0 | 0 |
Disposals | (366) | (1,555) |
Total Covered Assets | 1,530 | 1,896 |
Consumer | ||
Business Acquisition [Line Items] | ||
Beginning balance | 0 | 1,430 |
Discount accretion | 0 | 0 |
Disposals | 0 | (1,430) |
Total Covered Assets | $ 0 | $ 0 |
ACQUISITIONS AND FDIC INDEMNI_5
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: (Details 2) $ in Millions | 54 Months Ended |
Dec. 31, 2013USD ($) | |
FDIC Indemnification Asset [Roll Forward] | |
Reimbursements from the FDIC | $ (24.3) |
ALLOWANCE FOR LOAN LOSSES_ (Det
ALLOWANCE FOR LOAN LOSSES: (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Allowance for Loan Losses: | ||||||
Beginning balance | $ 19,909 | $ 18,773 | $ 19,946 | |||
Provision for loan losses | 5,768 | [1] | 5,295 | [2] | 3,300 | [3] |
Loans charged -off | (8,831) | (8,762) | (8,949) | |||
Recoveries | 3,590 | 4,603 | 4,476 | |||
Ending Balance | 20,436 | 19,909 | 18,773 | |||
Commercial | ||||||
Allowance for Loan Losses: | ||||||
Beginning balance | 10,281 | 9,731 | 11,482 | |||
Provision for loan losses | 83 | [1] | 745 | [2] | (755) | [3] |
Loans charged -off | (1,122) | (1,572) | (2,659) | |||
Recoveries | 606 | 1,377 | 1,663 | |||
Ending Balance | 9,848 | 10,281 | 9,731 | |||
Residential | ||||||
Allowance for Loan Losses: | ||||||
Beginning balance | 1,455 | 1,553 | 1,834 | |||
Provision for loan losses | 60 | [1] | (179) | [2] | 54 | [3] |
Loans charged -off | (841) | (761) | (1,011) | |||
Recoveries | 639 | 842 | 676 | |||
Ending Balance | 1,313 | 1,455 | 1,553 | |||
Consumer | ||||||
Allowance for Loan Losses: | ||||||
Beginning balance | 6,709 | 5,767 | 4,945 | |||
Provision for loan losses | 5,295 | [1] | 4,987 | [2] | 3,964 | [3] |
Loans charged -off | (6,868) | (6,429) | (5,279) | |||
Recoveries | 2,345 | 2,384 | 2,137 | |||
Ending Balance | 7,481 | 6,709 | 5,767 | |||
Unallocated | ||||||
Allowance for Loan Losses: | ||||||
Beginning balance | 1,464 | 1,722 | 1,685 | |||
Provision for loan losses | 330 | [1] | (258) | [2] | 37 | [3] |
Loans charged -off | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Ending Balance | $ 1,794 | $ 1,464 | $ 1,722 | |||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmFjYzIwMTY2OGNiYTRhZTU5ZDRjOTlhODdkMDNjM2E3fFRleHRTZWxlY3Rpb246NURGQjFFRUIwN0E1MUJDM0UwMUU5QTEzREY5QzQ3OTcM} | |||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmFjYzIwMTY2OGNiYTRhZTU5ZDRjOTlhODdkMDNjM2E3fFRleHRTZWxlY3Rpb246MkNEOEQ1QTg2RkJDOEE5Rjk2ODQ5QTEzREY5Q0NBMkIM} | |||||
[3] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmFjYzIwMTY2OGNiYTRhZTU5ZDRjOTlhODdkMDNjM2E3fFRleHRTZWxlY3Rpb246NDUyOEZEQ0MxMjk2QzhFNzc5Mzg5QTEzREY5Q0I1NDMM} |
ALLOWANCE FOR LOAN LOSSES_ (D_2
ALLOWANCE FOR LOAN LOSSES: (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | $ 737 | $ 625 | ||
Collectively evaluated for impairment | 19,699 | 19,284 | ||
BALANCE AT END OF YEAR | 20,436 | 19,909 | $ 18,773 | $ 19,946 |
Loans | ||||
Individually evaluated for impairment | 10,516 | 10,082 | ||
Collectively evaluated for impairment | 1,949,197 | 1,901,080 | ||
BALANCE AT END OF YEAR | 1,961,208 | 1,913,022 | ||
Commercial | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | 737 | 619 | ||
Collectively evaluated for impairment | 9,111 | 9,662 | ||
BALANCE AT END OF YEAR | 9,848 | 10,281 | 9,731 | 11,482 |
Loans | ||||
Individually evaluated for impairment | 6,101 | 9,619 | ||
Collectively evaluated for impairment | 1,166,227 | 1,134,701 | ||
BALANCE AT END OF YEAR | 1,173,823 | 1,146,180 | ||
Residential | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | 0 | 6 | ||
Collectively evaluated for impairment | 1,313 | 1,449 | ||
BALANCE AT END OF YEAR | 1,313 | 1,455 | 1,553 | 1,834 |
Loans | ||||
Individually evaluated for impairment | 4,415 | 463 | ||
Collectively evaluated for impairment | 440,497 | 436,944 | ||
BALANCE AT END OF YEAR | 444,912 | 437,407 | ||
Consumer | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 7,481 | 6,709 | ||
BALANCE AT END OF YEAR | 7,481 | 6,709 | 5,767 | 4,945 |
Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 342,473 | 329,435 | ||
BALANCE AT END OF YEAR | 342,473 | 329,435 | ||
Unallocated | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,794 | 1,464 | ||
BALANCE AT END OF YEAR | 1,794 | 1,464 | $ 1,722 | $ 1,685 |
Acquired with deteriorated credit quality | ||||
Ending Balance Attributable to Loans | ||||
Acquired with deteriorated credit quality | 0 | 0 | ||
Loans | ||||
Acquired with deteriorated credit quality | 1,495 | 1,860 | ||
Acquired with deteriorated credit quality | Commercial | ||||
Ending Balance Attributable to Loans | ||||
Acquired with deteriorated credit quality | 0 | 0 | ||
Loans | ||||
Acquired with deteriorated credit quality | 1,495 | 1,860 | ||
Acquired with deteriorated credit quality | Residential | ||||
Ending Balance Attributable to Loans | ||||
Acquired with deteriorated credit quality | 0 | 0 | ||
Loans | ||||
Acquired with deteriorated credit quality | 0 | 0 | ||
Acquired with deteriorated credit quality | Consumer | ||||
Ending Balance Attributable to Loans | ||||
Acquired with deteriorated credit quality | 0 | 0 | ||
Loans | ||||
Acquired with deteriorated credit quality | 0 | 0 | ||
Acquired with deteriorated credit quality | Unallocated | ||||
Ending Balance Attributable to Loans | ||||
Acquired with deteriorated credit quality | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES_ (D_3
ALLOWANCE FOR LOAN LOSSES: (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unpaid principal balance | |||
With no related allowance recorded | $ 0 | $ 0 | |
TOTAL | 10,516 | 10,283 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 2,376 | 4,507 | |
TOTAL | 10,516 | 10,082 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 737 | 625 | |
Average recorded investment | |||
With no related allowance recorded: | 23 | 0 | $ 0 |
TOTAL | 11,118 | 8,663 | 9,343 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
TOTAL | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
TOTAL | 0 | 0 | 0 |
Commercial & Industrial | |||
Unpaid principal balance | |||
With no related allowance recorded | 589 | 802 | |
With an allowance recorded | 1,819 | 493 | |
Recorded Investment | |||
With no related allowance recorded: | 589 | 802 | |
With an allowance recorded: | 1,819 | 493 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 593 | 146 | |
Average recorded investment | |||
With no related allowance recorded: | 698 | 971 | 981 |
With an allowance recorded: | 688 | 514 | 819 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Farmland | |||
Unpaid principal balance | |||
With no related allowance recorded | 2,022 | 930 | |
With an allowance recorded | 211 | 3,035 | |
Recorded Investment | |||
With no related allowance recorded: | 2,022 | 930 | |
With an allowance recorded: | 211 | 3,035 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 44 | 268 | |
Average recorded investment | |||
With no related allowance recorded: | 1,579 | 1,265 | 770 |
With an allowance recorded: | 1,691 | 669 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Non Farm, Non Residential | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 2,461 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 2,461 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 1,443 | 2,781 | 3,096 |
With an allowance recorded: | 0 | 131 | 1,016 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | |||
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Agriculture | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 123 | |
With an allowance recorded | 346 | 738 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 123 | |
With an allowance recorded: | 346 | 537 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 100 | 205 | |
Average recorded investment | |||
With no related allowance recorded: | 49 | 239 | 351 |
With an allowance recorded: | 316 | 279 | 114 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
All Other Commercial | |||
Unpaid principal balance | |||
With no related allowance recorded | 1,114 | 1,238 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 1,114 | 1,238 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 1,172 | 1,308 | 1,477 |
With an allowance recorded: | 0 | 0 | 45 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
First Liens | |||
Unpaid principal balance | |||
With no related allowance recorded | 4,415 | 21 | |
With an allowance recorded | 0 | 442 | |
Recorded Investment | |||
With no related allowance recorded: | 4,415 | 21 | |
With an allowance recorded: | 0 | 442 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 6 | |
Average recorded investment | |||
With no related allowance recorded: | 3,371 | 23 | 27 |
With an allowance recorded: | 88 | 483 | 647 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Home Equity | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Junior Liens | |||
Unpaid principal balance | |||
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
Multifamily | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
All Other Residential | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Motor Vehicle | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
All Other Consumer | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | $ 0 | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES_ (D_4
ALLOWANCE FOR LOAN LOSSES: (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Aging of recorded investment in loans by past due category and class of loans | ||||
Financing Receivable, Modifications, Recorded Investment | $ 4,806 | $ 7,034 | $ 8,565 | $ 9,860 |
Nonperforming Financing Receivable | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 852 | 1,484 | ||
Financing Receivable, Modifications, Recorded Investment | 3,652 | 3,349 | ||
Financing Receivable, Modifications, Nonaccrual | 1,024 | 3,754 | ||
Non-accrual | 10,974 | 13,245 | ||
Nonperforming Financing Receivable | Commercial & Industrial | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 0 | 41 | ||
Financing Receivable, Modifications, Recorded Investment | 1 | 2 | ||
Financing Receivable, Modifications, Nonaccrual | 144 | 212 | ||
Non-accrual | 2,902 | 1,679 | ||
Nonperforming Financing Receivable | Farmland | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 0 | 19 | ||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 0 | ||
Non-accrual | 2,391 | 4,141 | ||
Nonperforming Financing Receivable | Non Farm, Non Residential | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 | ||
Financing Receivable, Modifications, Recorded Investment | 0 | 56 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 2,440 | ||
Non-accrual | 81 | 172 | ||
Nonperforming Financing Receivable | Agriculture | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 | ||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 0 | ||
Non-accrual | 355 | 707 | ||
Nonperforming Financing Receivable | All Other Commercial | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 | ||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 0 | ||
Non-accrual | 1,122 | 1,236 | ||
Nonperforming Financing Receivable | First Liens | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 581 | 1,011 | ||
Financing Receivable, Modifications, Recorded Investment | 3,327 | 3,105 | ||
Financing Receivable, Modifications, Nonaccrual | 531 | 575 | ||
Non-accrual | 3,393 | 3,972 | ||
Nonperforming Financing Receivable | Home Equity | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 41 | 8 | ||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 0 | ||
Non-accrual | 75 | 249 | ||
Nonperforming Financing Receivable | Junior Liens | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 53 | 137 | ||
Financing Receivable, Modifications, Recorded Investment | 55 | 0 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 0 | ||
Non-accrual | 86 | 134 | ||
Nonperforming Financing Receivable | Multifamily | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 | ||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 0 | ||
Non-accrual | 0 | 0 | ||
Nonperforming Financing Receivable | All Other Residential | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 | ||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 0 | ||
Non-accrual | 64 | 90 | ||
Nonperforming Financing Receivable | Motor Vehicle | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 177 | 268 | ||
Financing Receivable, Modifications, Recorded Investment | 1 | 9 | ||
Financing Receivable, Modifications, Nonaccrual | 0 | 0 | ||
Non-accrual | 125 | 242 | ||
Nonperforming Financing Receivable | All Other Consumer | ||||
Aging of recorded investment in loans by past due category and class of loans | ||||
Loans Past Due Over 90 Day Still Accruing | 0 | 0 | ||
Financing Receivable, Modifications, Recorded Investment | 268 | 177 | ||
Financing Receivable, Modifications, Nonaccrual | 349 | 527 | ||
Non-accrual | $ 380 | $ 623 |
ALLOWANCE FOR LOAN LOSSES_ ALLO
ALLOWANCE FOR LOAN LOSSES: ALLOWANCE FOR LOAN LOSSES: (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | |||
January 1 | $ 7,034 | $ 8,565 | $ 9,860 |
Added | 1,279 | 613 | 492 |
Charged Off | (153) | (430) | (391) |
Payments | (3,354) | (1,714) | (1,396) |
December 31 | 4,806 | 7,034 | 8,565 |
Commercial | |||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | |||
January 1 | 2,709 | 3,386 | 3,584 |
Added | 0 | 0 | 0 |
Charged Off | 0 | 0 | 0 |
Payments | (2,564) | (677) | (198) |
December 31 | 145 | 2,709 | 3,386 |
Residential | |||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | |||
January 1 | 3,611 | 4,447 | 5,593 |
Added | 984 | 227 | 123 |
Charged Off | (16) | (289) | (321) |
Payments | (536) | (774) | (948) |
December 31 | 4,043 | 3,611 | 4,447 |
Consumer | |||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | |||
January 1 | 714 | 732 | 683 |
Added | 295 | 386 | 369 |
Charged Off | (137) | (141) | (70) |
Payments | (254) | (263) | (250) |
December 31 | $ 618 | $ 714 | $ 732 |
ALLOWANCE FOR LOAN LOSSES_ (D_5
ALLOWANCE FOR LOAN LOSSES: (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | $ 16,682 | $ 21,305 |
Current | 1,944,526 | 1,891,717 |
BALANCE AT END OF YEAR | 1,961,208 | 1,913,022 |
Commercial & Industrial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 1,782 | 1,092 |
Current | 518,239 | 474,709 |
BALANCE AT END OF YEAR | 520,021 | 475,801 |
Farmland | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 2,659 | 4,012 |
Current | 104,981 | 104,457 |
BALANCE AT END OF YEAR | 107,640 | 108,469 |
Non Farm, Non Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 57 | 141 |
Current | 188,706 | 200,804 |
BALANCE AT END OF YEAR | 188,763 | 200,945 |
Agriculture | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 388 | 702 |
Current | 148,345 | 152,388 |
BALANCE AT END OF YEAR | 148,733 | 153,090 |
All Other Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 33 | 0 |
Current | 208,633 | 207,875 |
BALANCE AT END OF YEAR | 208,666 | 207,875 |
First Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 5,267 | 8,218 |
Current | 231,684 | 247,029 |
BALANCE AT END OF YEAR | 236,951 | 255,247 |
Home Equity | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 273 | 364 |
Current | 39,378 | 35,752 |
BALANCE AT END OF YEAR | 39,651 | 36,116 |
Junior Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 420 | 574 |
Current | 49,111 | 41,688 |
BALANCE AT END OF YEAR | 49,531 | 42,262 |
Multifamily | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 0 |
Current | 109,609 | 90,141 |
BALANCE AT END OF YEAR | 109,609 | 90,141 |
All Other Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 24 | 312 |
Current | 9,146 | 13,329 |
BALANCE AT END OF YEAR | 9,170 | 13,641 |
Motor Vehicle | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 5,552 | 5,761 |
Current | 309,238 | 298,211 |
BALANCE AT END OF YEAR | 314,790 | 303,972 |
All Other Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 227 | 129 |
Current | 27,456 | 25,334 |
BALANCE AT END OF YEAR | 27,683 | 25,463 |
30 to 59 Days Past Due | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 10,229 | 12,223 |
30 to 59 Days Past Due | Commercial & Industrial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 1,017 | 372 |
30 to 59 Days Past Due | Farmland | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 515 | 341 |
30 to 59 Days Past Due | Non Farm, Non Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 141 |
30 to 59 Days Past Due | Agriculture | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 41 | 141 |
30 to 59 Days Past Due | All Other Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 30 | 0 |
30 to 59 Days Past Due | First Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 3,365 | 5,467 |
30 to 59 Days Past Due | Home Equity | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 155 | 310 |
30 to 59 Days Past Due | Junior Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 132 | 274 |
30 to 59 Days Past Due | Multifamily | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 0 |
30 to 59 Days Past Due | All Other Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 300 |
30 to 59 Days Past Due | Motor Vehicle | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 4,766 | 4,770 |
30 to 59 Days Past Due | All Other Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 208 | 107 |
60 to 89 Days Past Due | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 1,718 | 2,268 |
60 to 89 Days Past Due | Commercial & Industrial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 420 | 80 |
60 to 89 Days Past Due | Farmland | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 8 | 0 |
60 to 89 Days Past Due | Non Farm, Non Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 0 |
60 to 89 Days Past Due | Agriculture | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 0 |
60 to 89 Days Past Due | All Other Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 3 | 0 |
60 to 89 Days Past Due | First Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 429 | 1,317 |
60 to 89 Days Past Due | Home Equity | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 8 | 46 |
60 to 89 Days Past Due | Junior Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 225 | 106 |
60 to 89 Days Past Due | Multifamily | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 0 |
60 to 89 Days Past Due | All Other Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 9 | 0 |
60 to 89 Days Past Due | Motor Vehicle | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 609 | 697 |
60 to 89 Days Past Due | All Other Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 7 | 22 |
Greater than 90 Days Past Due | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 4,735 | 6,814 |
Greater than 90 Days Past Due | Commercial & Industrial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 345 | 640 |
Greater than 90 Days Past Due | Farmland | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 2,136 | 3,671 |
Greater than 90 Days Past Due | Non Farm, Non Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 57 | 0 |
Greater than 90 Days Past Due | Agriculture | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 347 | 561 |
Greater than 90 Days Past Due | All Other Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 0 |
Greater than 90 Days Past Due | First Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 1,473 | 1,434 |
Greater than 90 Days Past Due | Home Equity | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 110 | 8 |
Greater than 90 Days Past Due | Junior Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 63 | 194 |
Greater than 90 Days Past Due | Multifamily | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 0 | 0 |
Greater than 90 Days Past Due | All Other Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 15 | 12 |
Greater than 90 Days Past Due | Motor Vehicle | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | 177 | 294 |
Greater than 90 Days Past Due | All Other Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
Total Past Due | $ 12 | $ 0 |
ALLOWANCE FOR LOAN LOSSES_ (D_6
ALLOWANCE FOR LOAN LOSSES: (Details 6) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Analysis of risk category of loans by class of loans | ||
Total loans | $ 1,951,063 | $ 1,903,609 |
Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 518,410 | 474,500 |
Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 105,756 | 106,596 |
Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 188,333 | 200,502 |
Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 146,056 | 150,936 |
All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 207,797 | 206,956 |
First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 236,147 | 254,384 |
Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 39,582 | 36,036 |
Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 49,417 | 42,155 |
Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 109,378 | 89,972 |
All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 9,146 | 13,596 |
Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 313,490 | 302,631 |
All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 27,551 | 25,345 |
Pass | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,206,608 | 1,140,885 |
Pass | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 472,008 | 430,015 |
Pass | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 90,367 | 88,338 |
Pass | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 170,757 | 179,181 |
Pass | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 118,952 | 111,724 |
Pass | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 198,302 | 194,170 |
Pass | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 43,915 | 45,320 |
Pass | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 963 | 319 |
Pass | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,983 | 1,882 |
Pass | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 109,361 | 89,936 |
Pass | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Pass | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Pass | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Special Mention | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 44,799 | 59,391 |
Special Mention | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 20,600 | 19,889 |
Special Mention | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 7,587 | 10,782 |
Special Mention | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 5,442 | 7,689 |
Special Mention | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 10,010 | 17,482 |
Special Mention | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 43 | 2,723 |
Special Mention | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,043 | 750 |
Special Mention | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Special Mention | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 74 | 76 |
Special Mention | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Special Mention | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Special Mention | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Special Mention | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Substandard | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 64,562 | 73,784 |
Substandard | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 18,374 | 18,611 |
Substandard | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 7,783 | 7,466 |
Substandard | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 10,439 | 13,632 |
Substandard | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 16,637 | 21,388 |
Substandard | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 6,777 | 7,459 |
Substandard | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 3,504 | 3,980 |
Substandard | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 148 | 64 |
Substandard | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 224 | 342 |
Substandard | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Substandard | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 15 | 67 |
Substandard | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 627 | 731 |
Substandard | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 34 | 44 |
Doubtful | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 76 | 143 |
Doubtful | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 38 |
Doubtful | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 5 |
Doubtful | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 76 | 100 |
Doubtful | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Not Rated | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 635,018 | 629,406 |
Not Rated | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 7,428 | 5,947 |
Not Rated | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 19 | 10 |
Not Rated | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,695 | 0 |
Not Rated | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 457 | 342 |
Not Rated | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 2,675 | 2,604 |
Not Rated | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 187,685 | 204,329 |
Not Rated | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 38,471 | 35,653 |
Not Rated | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 47,060 | 39,755 |
Not Rated | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 17 | 36 |
Not Rated | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 9,131 | 13,529 |
Not Rated | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 312,863 | 301,900 |
Not Rated | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | $ 27,517 | $ 25,301 |
ALLOWANCE FOR LOAN LOSSES_ (D_7
ALLOWANCE FOR LOAN LOSSES: (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses: | ||
Impaired loans | $ 10,516 | $ 10,082 |
Allowance for Loan Losses Allocated | 737 | 625 |
Minimum outstanding balance of non-homogeneous loans to be individually evaluated as to credit risk | 100 | |
Covered Loans | ||
Allowance for Loan Losses: | ||
Loans Past Due Over 90 Day Still Accruing | 19 | 88 |
Non-accrual | $ 91 | $ 62 |
Minimum | ||
Allowance for Loan Losses: | ||
Loan modification, reduction of stated interest rate | 12 months | |
Loan modification, extension of maturity date | 12 months | |
Maximum | ||
Allowance for Loan Losses: | ||
Loan modification, reduction of stated interest rate | 5 years | |
Loan modification, extension of maturity date | 10 years |
PREMISES AND EQUIPMENT_ (Detail
PREMISES AND EQUIPMENT: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment, Gross [Abstract] | ||
Land | $ 11,975 | $ 12,118 |
Building and leasehold improvements | 56,061 | 55,854 |
Furniture and Fixtures, Gross | 44,772 | 46,399 |
Property Plant And Equipment Gross | 112,808 | 114,371 |
Less accumulated depreciation | (66,254) | (66,099) |
TOTAL | $ 46,554 | $ 48,272 |
PREMISES AND EQUIPMENT_ (Deta_2
PREMISES AND EQUIPMENT: (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment, Gross [Abstract] | |||
Depreciation | $ 3,730 | $ 3,950 | $ 4,340 |
Rent expense | $ 1,000 | $ 1,000 | $ 900 |
PREMISES AND EQUIPMENT_ (Deta_3
PREMISES AND EQUIPMENT: (Details 1) $ in Thousands | Dec. 31, 2018USD ($) |
Property, Plant and Equipment, Gross [Abstract] | |
2,014 | $ 839 |
2,015 | 671 |
2,016 | 572 |
2,017 | 446 |
2,018 | 398 |
Thereafter | 944 |
Total future minimum payments due | $ 3,870 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS: (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill Sold [Line Items] | |||
Amortization of intangible assets | $ 433 | $ 479 | $ 630 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 10,836 | $ 10,836 |
Accumulated Amortization | 9,639 | 9,206 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 10,836 | 10,836 |
Accumulated Amortization | $ 9,639 | $ 9,206 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS: (Details 1) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,014 | $ 350 |
2,015 | 252 |
2,016 | 232 |
2,017 | 224 |
2,018 | $ 139 |
DEPOSITS_ (Details)
DEPOSITS: (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Maturities of Time Deposits [Abstract] | |
2,014 | $ 172,270 |
2,015 | 55,804 |
2,016 | 29,465 |
2,017 | 29,084 |
2,018 | $ 13,960 |
SHORT-TERM BORROWINGS_ (Details
SHORT-TERM BORROWINGS: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short Term Borrowings Disclosure [Abstract] | ||
Federal funds purchased | $ 43,250 | $ 30,165 |
Repurchase-agreements | 26,406 | 27,521 |
Short-term borrowings | $ 69,656 | $ 57,686 |
SHORT-TERM BORROWINGS_ (Detai_2
SHORT-TERM BORROWINGS: (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase-agreements | $ 26,406 | $ 27,521 |
Average amount outstanding | 41,557 | 39,704 |
Maximum amount outstanding at a month end | $ 69,656 | $ 85,714 |
Average interest rate during year (percent) | 1.24% | 0.62% |
Interest rate at year-end (percent) | 1.86% | 0.96% |
Maturity over 90 days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase-agreements | $ 546 | $ 758 |
Maturity 30 to 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase-agreements | 8,683 | 8,552 |
Maturity up to 30 days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase-agreements | 6,307 | 6,282 |
Maturity Overnight [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase-agreements | $ 10,870 | $ 11,929 |
OTHER BORROWINGS_ (Details)
OTHER BORROWINGS: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Borrowings Disclosure [Abstract] | ||
FHLB advances | $ 0 | $ 0 |
OTHER BORROWINGS_ (Details 1)
OTHER BORROWINGS: (Details 1) $ in Thousands | Dec. 31, 2018USD ($) |
Other Borrowings Disclosure [Abstract] | |
2,014 | $ 0 |
2,015 | 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
Thereafter | 0 |
Long-term Debt | $ 0 |
OTHER BORROWINGS_ (Details text
OTHER BORROWINGS: (Details textual) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
FHLB advances | $ 0 | $ 0 |
General debt obligations, collateral pledged | 99,400 | $ 120,100 |
General debt obligations, maximum amount available | $ 197,400 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Branch of FHLB bank, interest rate (percent) | 1.56% | 0.80% |
Maximum | ||
Debt Instrument [Line Items] | ||
Branch of FHLB bank, interest rate (percent) | 2.42% | 6.60% |
INCOME TAXES_ (Details)
INCOME TAXES: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal: | |||
Currently payable | $ 7,018 | $ 8,303 | $ 15,514 |
Deferred | 1,793 | 3,756 | 1,326 |
Federal tax reform | 0 | 6,282 | |
Federal income tax expense (benefit), continuing operations | 8,811 | 18,341 | 16,840 |
State: | |||
Currently payable | 1,699 | 1,818 | 2,857 |
Deferred | 635 | 463 | 186 |
State and local income tax expense (benefit), continuing operations | 2,334 | 2,281 | 3,043 |
TOTAL | $ 11,145 | $ 20,622 | $ 19,883 |
INCOME TAXES_ (Details 1)
INCOME TAXES: (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes computed at the statutory rate | $ 12,122 | $ 17,414 | $ 20,403 |
Add (deduct) tax effect of: | |||
Tax exempt income | (2,495) | (4,102) | (3,992) |
THFF FSI non-deductable goodwill | 0 | 0 | 1,797 |
ESOP dividend deduction | (103) | (102) | (47) |
State tax, net of federal benefit | 1,846 | 1,483 | 1,978 |
Affordable housing credits | (148) | (148) | (148) |
Federal tax reform | 0 | 6,282 | |
Other, net | (77) | (205) | (108) |
TOTAL | $ 11,145 | $ 20,622 | $ 19,883 |
INCOME TAXES_ (Details 2)
INCOME TAXES: (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Other than temporary impairment | $ 761 | $ 1,829 |
Net unrealized losses on retirement plans | 5,783 | 6,609 |
Net unrealized losses on securities available for sale | 2,063 | 0 |
Loan loss provisions | 5,463 | 5,195 |
Deferred compensation | 2,883 | 3,661 |
Compensated absences | 576 | 563 |
Post-retirement benefits | 1,338 | 1,359 |
Deferred loss on acquisition | 577 | 663 |
Other | 2,140 | 2,123 |
GROSS DEFERRED ASSETS | 21,584 | 22,002 |
Deferred tax liabilities: | ||
Net unrealized gains on securities available-for-sale | 0 | (804) |
Depreciation | (2,004) | (1,989) |
Mortgage servicing rights | (319) | (308) |
Pensions | (335) | (201) |
Intangibles | (2,852) | (2,446) |
Other | (2,614) | (2,408) |
GROSS DEFERRED LIABILITIES | (8,124) | (8,156) |
NET DEFERRED TAX ASSETS (LIABILITIES) | $ 13,460 | $ 13,846 |
INCOME TAXES_ (Details 3)
INCOME TAXES: (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1 | $ 825 | $ 698 | $ 513 |
Additions based on tax positions related to the current year | 174 | 257 | 288 |
Additions based on tax positions related to prior years | 0 | 0 | 0 |
Reductions due to the statute of limitations | (77) | (130) | (103) |
Balance at December 31 | $ 922 | $ 825 | $ 698 |
INCOME TAXES_ (Details textual)
INCOME TAXES: (Details textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory income tax rate (percent) | 21.00% | |||
Part of unrecognized tax benefits | $ 922 | $ 825 | $ 698 | $ 513 |
Increase (decrease) in interest and penalities | 23 | 4 | 4 | |
Income tax examination, penalties and interest accrued | $ 52 | $ 40 | $ 31 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||||
Other Commitments | $ 81,593,000 | $ 83,786,000 | ||
TOTAL | 424,458,000 | 387,701,000 | ||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Loans and Leases Receivable, Commitments, Fixed Rates | $ 0.0450 | $ 0.0400 | ||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loans and Leases Receivable, Commitments, Fixed Rates | $ 0.0775 | $ 0.0725 | ||
Commercial Operating Lines | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | 285,524,000 | 246,855,000 | ||
Commercial letters of credit | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | 4,673,000 | 5,012,000 | ||
Home Equity | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | $ 57,341,000 | $ 57,060,000 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | ||
Notional amount of interest rate derivatives | $ 19 | $ 20.1 |
Gain (loss) on interest rate derivative instruments not designated as hedging instruments | $ 0.1 | $ 0.2 |
RETIREMENT PLANS_ (Details)
RETIREMENT PLANS: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Service cost - benefits earned | $ 1,388 | $ 1,432 | $ 1,882 |
Interest cost on projected benefit obligation | 3,194 | 3,621 | 3,729 |
Expected return on plan assets | (3,962) | (3,940) | (3,429) |
Net amortization and deferral | 1,448 | 1,205 | 1,936 |
Net periodic pension cost | 2,068 | 2,318 | 4,118 |
Net loss (gain) during the period | (1,192) | 5,366 | (6,150) |
Amortization of prior service cost | 1 | 1 | 1 |
Amortization of unrecognized gain (loss) | (1,447) | (1,204) | (1,935) |
Total recognized in other comprehensive (income) loss | 2,640 | (4,161) | 8,086 |
Total recognized net periodic pension cost and other comprehensive income | $ (572) | $ 6,479 | $ (3,968) |
RETIREMENT PLANS_ (Details 1)
RETIREMENT PLANS: (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | $ 4,264 | $ 5,495 | |
Change in benefit obligation: | |||
Benefit obligation at January 1 | 98,096 | 93,233 | |
Service cost | 1,388 | 1,432 | $ 1,882 |
Interest cost | 3,194 | 3,621 | 3,729 |
Actuarial (gain) loss | (10,618) | 5,305 | |
Benefits paid | (4,264) | (5,495) | |
Benefit obligation at December 31 | 87,796 | 98,096 | 93,233 |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at January 1 | 71,449 | 70,132 | |
Actual return on plan assets | (5,464) | 3,879 | |
Employer contributions | 2,614 | 2,933 | |
Fair value of plan assets at December 31 | 64,335 | 71,449 | $ 70,132 |
Funded status at December 31 (plan assets less benefit obligation) | $ (23,461) | $ (26,647) |
RETIREMENT PLANS_ (Details 2)
RETIREMENT PLANS: (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Net loss (gain) | $ 22,982 | $ 25,621 | |
Prior service cost (credit) | $ 1 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Reclassification Adjustment, before Tax | 2 | 3 | |
Pension and other postretirement benefit plans, adjustment | $ 22,984 | $ 25,624 |
RETIREMENT PLANS_ (Details 3)
RETIREMENT PLANS: (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Principal assumptions used (benefit obligation): | ||
Discount rate (percent) | 4.22% | 3.60% |
Rate of increase in compensation levels (percent) | 3.00% | 3.00% |
Principal assumptions used (net periodic benefit): | ||
Discount rate | 3.60% | 4.14% |
Rate of increase in compensation levels | 3.00% | 3.00% |
Expected long-term rate of return on plan assets (percent) | 6.00% | 6.00% |
RETIREMENT PLANS_ (Details 4)
RETIREMENT PLANS: (Details 4) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule of Allocation of Plan Assets [Table Text Block] | The Corporation's pension plan weighted-average asset allocation for the years 2018 and 2017 by asset category are as follows: Pension Plan Target Allocation ESOP Target Allocation Pension Percentage of Plan Assets at December 31, ESOP Percentage of Plan Assets at December 31, ASSET CATEGORY 2018 2018 2018 2017 2018 2017 Equity securities 25-75% 95-99% 65 % 72 % 99 % 98 % Debt securities 0-50% 0-0% 31 % 25 % — % — % Other 0-20% 0-5% 4 % 3 % 1 % 2 % TOTAL 100 % 100 % 100 % 100 % | |
Percentage of plan assets (percent) | 100.00% | 100.00% |
Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets (percent) | 100.00% | 100.00% |
Other Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets (percent) | 4.00% | 3.00% |
Other Securities [Member] | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets (percent) | 1.00% | 2.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule of Allocation of Plan Assets [Table Text Block] | 0 | |
Percentage of plan assets (percent) | 65.00% | 72.00% |
Equity Securities | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule of Allocation of Plan Assets [Table Text Block] | 0 | |
Percentage of plan assets (percent) | 99.00% | 98.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule of Allocation of Plan Assets [Table Text Block] | 0 | |
Percentage of plan assets (percent) | 31.00% | 25.00% |
Debt securities | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule of Allocation of Plan Assets [Table Text Block] | 0 | |
Percentage of plan assets (percent) | 0.00% | 0.00% |
Other Security Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule of Allocation of Plan Assets [Table Text Block] | 0 | |
Other Security Investments [Member] | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Schedule of Allocation of Plan Assets [Table Text Block] | 0 |
RETIREMENT PLANS_ (Details 5)
RETIREMENT PLANS: (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 64,335 | $ 71,449 | $ 70,132 |
Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 53,683 | 60,732 | |
Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,652 | 10,717 | |
Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 43,931 | 48,152 | |
Equity Securities | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 43,931 | 48,152 | |
Equity Securities | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,652 | 10,717 | |
Debt securities | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Debt securities | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,652 | 10,717 | |
Debt securities | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,752 | 12,580 | |
Investment Funds | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9,752 | 12,580 | |
Investment Funds | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investment Funds | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
RETIREMENT PLANS_ (Details 6)
RETIREMENT PLANS: (Details 6) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
2,014 | $ 4,692 |
2,015 | 4,843 |
2,016 | 5,034 |
2,017 | 5,221 |
2,018 | 5,391 |
2019-2023 | $ 28,701 |
RETIREMENT PLANS_ (Details 7)
RETIREMENT PLANS: (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net loss (gain) during the period | $ (1,192) | $ 5,366 | $ (6,150) |
Amortization of prior service cost | (1) | (1) | (1) |
Amortization of unrecognized gain (loss) | (1,447) | (1,204) | (1,935) |
Total recognized in other comprehensive income (loss) | (2,640) | 4,161 | (8,086) |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net loss (gain) during the period | 260 | 527 | (511) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of unrecognized gain (loss) | (51) | 0 | (57) |
Total recognized in other comprehensive income (loss) | $ 209 | $ 527 | $ (568) |
RETIREMENT PLANS_ (Details 8)
RETIREMENT PLANS: (Details 8) $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,014 | $ 4,692 |
2,015 | 4,843 |
2,016 | 5,034 |
2,017 | 5,221 |
2,018 | 5,391 |
2019-2023 | 28,701 |
Supplemental Employee Retirement Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,014 | 0 |
2,015 | 199 |
2,016 | 388 |
2,017 | 379 |
2,018 | 368 |
2019-2023 | $ 1,994 |
RETIREMENT PLANS_ (Details 9)
RETIREMENT PLANS: (Details 9) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in benefit obligation: | |||
Benefit obligation at January 1 | $ 98,096 | $ 93,233 | |
Service cost | 1,388 | 1,432 | $ 1,882 |
Interest cost | 3,194 | 3,621 | 3,729 |
Actuarial (gain) loss | (10,618) | 5,305 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 4,264 | 5,495 | |
Benefit obligation at December 31 | 87,796 | 98,096 | 93,233 |
Funded status at December 31 | (23,461) | (26,647) | |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | 4,361 | 4,276 | |
Service cost | 42 | 53 | |
Interest cost | 131 | 172 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 83 | 75 | |
Actuarial (gain) loss | (872) | 83 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 325 | 298 | |
Benefit obligation at December 31 | 3,420 | 4,361 | $ 4,276 |
Funded status at December 31 | $ 3,420 | $ 4,361 |
RETIREMENT PLANS_ (Details 10)
RETIREMENT PLANS: (Details 10) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Discount rate (percent) | 4.22% | 3.60% | |
Initial weighted health care cost trend rate (percent) | .05 | .05 | |
Ultimate health care cost trend rate (percent) | 500.00% | 500.00% | |
Year that the rate is assumed to stabilize and remain unchanged (percent) | 2,019 | 2,018 |
RETIREMENT PLANS_ (Details 11)
RETIREMENT PLANS: (Details 11) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1,388 | $ 1,432 | $ 1,882 |
Interest cost | 3,194 | 3,621 | 3,729 |
Recognized actuarial loss | (10,618) | 5,305 | |
Net periodic pension cost | 2,068 | 2,318 | 4,118 |
Net loss (gain) during the period | (1,192) | 5,366 | (6,150) |
Amortization of prior service cost | (1) | (1) | (1) |
Total recognized in other comprehensive income (loss) | (2,640) | 4,161 | (8,086) |
Total recognized net periodic pension cost and other comprehensive income | (572) | 6,479 | (3,968) |
Postretirement Health Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 42 | 53 | 55 |
Interest cost | 131 | 172 | 186 |
Net periodic pension cost | 173 | 225 | 241 |
Net loss (gain) during the period | (872) | 83 | (144) |
Total recognized in other comprehensive income (loss) | (872) | 83 | (144) |
Total recognized net periodic pension cost and other comprehensive income | $ (699) | $ 308 | $ 97 |
RETIREMENT PLANS_ (Details 12)
RETIREMENT PLANS: (Details 12) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Retirement Benefits [Abstract] | |
Effect on total of service and interest cost components 1% Point Increase | $ 1 |
Effect on total of service and interest cost components 1% Point Decrease | 1 |
Effect on post-retirement benefit obligation 1% Point Increase | 16 |
Effect on post-retirement benefit obligation 1% Point Decrease | $ 15 |
RETIREMENT PLANS_ (Details 13)
RETIREMENT PLANS: (Details 13) $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,014 | $ 4,692 |
2,015 | 4,843 |
2,016 | 5,034 |
2,017 | 5,221 |
2,018 | 5,391 |
2019-2023 | 28,701 |
Postretirement Health Coverage [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,014 | 233 |
2,015 | 233 |
2,016 | 228 |
2,017 | 228 |
2,018 | 230 |
2019-2023 | $ 1,119 |
RETIREMENT PLANS_ (Details Text
RETIREMENT PLANS: (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Percentage Of Plan Assets | 100.00% | 100.00% | ||
Employer contributions | $ 2,614 | $ 2,933 | ||
Cash contributions to ESOP | (1,087) | (1,062) | $ (1,361) | |
Cash contributions to ESOP for employees no longer participating in plan | 735 | 676 | 872 | |
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | $ 1,600 | |||
Pension plans with accumulated benefit obligations in excess of plan assets, aggregate accumulated benefit obligation | 83,900 | 93,300 | ||
Pension and other postretirement defined benefit plans, liabilities | 5,000 | 4,400 | ||
Accumulated other comprehensive income (loss) | (23,454) | (14,704) | (14,164) | |
Prior service cost (credit) | 1 | |||
First Financial Corporation Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan assets equity securities | $ 18,000 | $ 21,400 | ||
Percentage of plan assets (percent) | 28.00% | 30.00% | ||
Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Percentage Of Plan Assets | 65.00% | 72.00% | ||
Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Percentage Of Plan Assets | 31.00% | 25.00% | ||
Other Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Percentage Of Plan Assets | 4.00% | 3.00% | ||
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | $ 2,260 | $ 2,550 | 2,700 | |
Expected contributions to pension plan in 2014 | $ 1,800 | |||
Employee Stock Ownership Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Percentage Of Plan Assets | 100.00% | 100.00% | ||
Cash contributions to ESOP | $ (814) | |||
Employee Stock Ownership Plan | First Financial Corporation Common Stock [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan assets equity securities | $ 3,800 | $ 3,800 | ||
Employee Stock Ownership Plan | Equity Securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Percentage Of Plan Assets | 99.00% | 98.00% | ||
Employee Stock Ownership Plan | Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Percentage Of Plan Assets | 0.00% | 0.00% | ||
Employee Stock Ownership Plan | Other Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Percentage Of Plan Assets | 1.00% | 2.00% | ||
Supplemental Employee Retirement Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 75 | |||
Pension expense | $ 411 | $ 321 | $ 418 | |
Accumulated other comprehensive income (loss), after tax | 1,070 | 859 | ||
Accumulated other comprehensive income (loss) | (615) | (257) | ||
Postretirement Health Coverage [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions to pension plan in 2014 | $ 233 | |||
Pension expense | $ 325 | $ 298 |
STOCK BASED COMPENSATION_ (Deta
STOCK BASED COMPENSATION: (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | Feb. 05, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 745 | $ 706 | $ 700 | ||||
Stock Incentive Plan 2011 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 700,000 | ||||||
Granted (shares) | 166,289 | ||||||
Number of additional shares authorized (shares) | 533,711 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (shares) | 17,220,000 | 16,562,000 | |||||
Vesting period | 3 years | ||||||
Total compensation cost not yet recognized, stock options | $ 674 | $ 741 | |||||
Total compensation cost not yet recognized, period for recognition | 1 year 6 months | ||||||
Options, vested in period, fair value | $ 700 | $ 865 | |||||
Restricted Stock | First Anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price of common stock (percent) | 33.00% | ||||||
Restricted Stock | Second Anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price of common stock (percent) | 33.00% | ||||||
Restricted Stock | Third Anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price of common stock (percent) | 34.00% |
STOCK BASED COMPENSATION_ (De_2
STOCK BASED COMPENSATION: (Details) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Shares Outstanding | ||
Nonvested balance at January 1 (shares) | 18,019 | 20,524 |
Granted during the year (shares) | 17,220 | 16,562 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (18,240) | (19,067) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 0 |
Novested balance at December 31 (shares) | 16,999 | 18,019 |
Weighted Average Exercise Price | ||
Nonvested balance at January 1 | $ 41,140 | $ 32,830 |
Granted during the year (usd per share) | 45,550 | 46,700 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 40,850 | 37,030 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | 0 | 0 |
Nonvested balance at December 31 | $ 45,920 | $ 41,140 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS)-AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | $ (14,704) | $ (14,164) |
Change in other comprehensive income before reclassification | (7,467) | (1,238) |
Amounts reclassified from accumulated other comprehensive income | 1,083 | 698 |
Net current period other comprehensive income (loss) | (6,384) | (540) |
Ending balance, December 31 | (23,454) | (14,704) |
Unrealized Gains and Losses on Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | 2,258 | (1,077) |
Change in other comprehensive income before reclassification | (8,859) | 3,371 |
Amounts reclassified from accumulated other comprehensive income | (2) | (36) |
Net current period other comprehensive income (loss) | (8,861) | 3,335 |
Ending balance, December 31 | (6,105) | 2,258 |
Retirement Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | (16,962) | (13,087) |
Change in other comprehensive income before reclassification | 1,392 | (4,609) |
Amounts reclassified from accumulated other comprehensive income | 1,085 | 734 |
Net current period other comprehensive income (loss) | 2,477 | (3,875) |
Ending balance, December 31 | $ (17,349) | $ (16,962) |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS): (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | $ (14,704) | $ (14,164) |
Current Period Change | (8,750) | (540) |
Ending balance, December 31 | (23,454) | (14,704) |
Unrealized Gains and Losses on Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | 2,258 | (1,077) |
Current Period Change | (8,363) | 3,335 |
Ending balance, December 31 | (6,105) | 2,258 |
Unrealized gains losses on securities available-for-sale without other than temporary impairment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | (1,371) | (3,018) |
Current Period Change | (7,075) | 1,647 |
Ending balance, December 31 | (8,446) | (1,371) |
Unrealized gains losses on securities available-for-sale with other than temporary impairment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | 3,629 | 1,941 |
Current Period Change | (1,288) | 1,688 |
Ending balance, December 31 | 2,341 | 3,629 |
Retirement Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | (16,962) | (13,087) |
Current Period Change | (387) | 3,875 |
Ending balance, December 31 | $ (17,349) | $ (16,962) |
OTHER COMPREHENSIVE INCOME _ OT
OTHER COMPREHENSIVE INCOME : OTHER COMPREHENSIVE INCOME (LOSS)-Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net securities gains (losses) | $ 2 | $ 59 | $ 34 | |||||||||
Income tax expense | (11,145) | (20,622) | (19,883) | |||||||||
NET INCOME | $ 11,056 | $ 11,313 | $ 15,261 | $ 8,953 | $ 2,616 | $ 8,794 | $ 8,352 | $ 9,369 | 46,583 | 29,131 | 38,413 | |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
NET INCOME | (1,083) | (698) | (1,195) | |||||||||
Unrealized Gains and Losses on Available-for-Sale Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net securities gains (losses) | 2 | 59 | 34 | |||||||||
Income tax expense | 0 | (23) | (13) | |||||||||
NET INCOME | 2 | 36 | 21 | |||||||||
Retirement Plans | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Change in funded status of post retirement benefits | [1] | (1,447) | (1,204) | (1,992) | ||||||||
Income tax expense | 362 | 470 | 776 | |||||||||
NET INCOME | $ (1,085) | $ (734) | $ (1,216) | |||||||||
[1] | Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 16 for additional details). |
REGULATORY MATTERS_ (Details Te
REGULATORY MATTERS: (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Banking and Thrift [Abstract] | |
Undistributed earnings | $ 59.9 |
REGULATORY MATTERS_ (Details)
REGULATORY MATTERS: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Corporation [Member] | ||
Capital [Abstract] | ||
Capital | $ 451,036 | $ 412,525 |
Capital to Risk Weighted Assets (percent) | 19.36% | 17.88% |
Capital Required for Capital Adequacy | $ 230,091 | $ 213,446 |
Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 9.875% | 9.25% |
Common equity capital | $ 430,600 | $ 392,615 |
Commen Equity Capital to Risk Weighted Assets | 18.48% | 17.01% |
Common equity capital required for capital adequacy | $ 148,540 | $ 132,682 |
Common Equity Capital required for Capital Adequacy to Risk Weighted Assets | 6.375% | 5.75% |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | $ 430,600 | $ 392,615 |
Tier One Risk Based Capital to Risk Weighted Assets (percent) | 18.48% | 17.01% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 183,490 | $ 167,295 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 7.875% | 7.25% |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | $ 430,600 | $ 392,615 |
Tier One Leverage Capital to Average Assets (percent) | 14.59% | 13.31% |
Tier One Leverage Capital Required for Capital Adequacy | $ 118,072 | $ 117,956 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (percent) | 4.00% | 4.00% |
First Financial Bank [Member] | ||
Capital [Abstract] | ||
Capital | $ 421,553 | $ 386,593 |
Capital to Risk Weighted Assets (percent) | 18.71% | 17.30% |
Capital Required for Capital Adequacy | $ 222,453 | $ 206,745 |
Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 9.875% | 9.25% |
Capital Required to be Well Capitalized | $ 225,268 | $ 223,508 |
Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 10.00% | 10.00% |
Common equity capital | $ 405,181 | $ 370,061 |
Commen Equity Capital to Risk Weighted Assets | 17.99% | 16.56% |
Common equity capital required for capital adequacy | $ 143,609 | $ 128,517 |
Common Equity Capital required for Capital Adequacy to Risk Weighted Assets | 6.375% | 5.75% |
Common equity capital required to be well capitalized | $ 146,424 | $ 145,280 |
Common Equity Capital required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | $ 405,181 | $ 370,061 |
Tier One Risk Based Capital to Risk Weighted Assets (percent) | 17.99% | 16.56% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 177,399 | $ 162,044 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 7.875% | 7.25% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 180,215 | $ 178,807 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 8.00% | 8.00% |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | $ 405,181 | $ 370,061 |
Tier One Leverage Capital to Average Assets (percent) | 14.19% | 12.81% |
Tier One Leverage Capital Required for Capital Adequacy | $ 114,213 | $ 115,553 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (percent) | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 142,767 | $ 144,441 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets (percent) | 5.00% | 5.00% |
PARENT COMPANY CONDENSED FINA_3
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash deposits in affiliated banks | $ 74,388 | $ 74,107 | ||
Land and headquarters building, net | 46,554 | 48,272 | ||
Other | 22,607 | 30,333 | ||
TOTAL ASSETS | 3,008,718 | 3,000,668 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 59,634 | 70,760 | ||
TOTAL LIABILITIES | 2,566,017 | 2,587,099 | ||
Shareholders' Equity | 442,701 | 413,569 | $ 414,395 | $ 410,316 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,008,718 | 3,000,668 | ||
Parent | ||||
ASSETS | ||||
Cash deposits in affiliated banks | 3,342 | 3,198 | ||
Investments in subsidiaries | 442,547 | 414,839 | ||
Land and headquarters building, net | 5,000 | 5,193 | ||
Other | 900 | 0 | ||
TOTAL ASSETS | 451,789 | 423,230 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Dividends payable | 6,258 | 6,234 | ||
Other liabilities | 2,830 | 3,427 | ||
TOTAL LIABILITIES | 9,088 | 9,661 | ||
Shareholders' Equity | 442,701 | 413,569 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 451,789 | $ 423,230 |
PARENT COMPANY CONDENSED FINA_4
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Income tax benefit | $ (11,145) | $ (20,622) | $ (19,883) | ||||||||
NET INCOME | $ 11,056 | $ 11,313 | $ 15,261 | $ 8,953 | $ 2,616 | $ 8,794 | $ 8,352 | $ 9,369 | 46,583 | 29,131 | 38,413 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 40,199 | 28,591 | 33,650 | ||||||||
Parent | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends from subsidiaries | 13,651 | 30,814 | 31,781 | ||||||||
Other income | 720 | 720 | 722 | ||||||||
Other operating expenses | (2,814) | (2,647) | (2,581) | ||||||||
Income before income taxes and equity in undistributed earnings of subsidiaries | 11,557 | 28,887 | 29,922 | ||||||||
Income tax benefit | 934 | 889 | 821 | ||||||||
Income before equity in undistributed earnings of subsidiaries | 12,491 | 29,776 | 30,743 | ||||||||
Equity in undistributed earnings of subsidiaries | 34,092 | (645) | 7,670 | ||||||||
NET INCOME | $ 46,583 | $ 29,131 | $ 38,413 |
PARENT COMPANY CONDENSED FINA_5
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net Income | $ 11,056 | $ 11,313 | $ 15,261 | $ 8,953 | $ 2,616 | $ 8,794 | $ 8,352 | $ 9,369 | $ 46,583 | $ 29,131 | $ 38,413 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Contribution of shares to ESOP | 1,087 | 1,062 | 1,361 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Purchases of treasury stock | (391) | (503) | (19,396) | ||||||||
Dividends paid | (12,496) | (30,556) | (12,359) | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 281 | (905) | (13,683) | ||||||||
CASH AND DUE FROM BANKS, BEGINNING OF YEAR | 74,107 | 75,012 | 74,107 | 75,012 | 88,695 | ||||||
CASH AND DUE FROM BANKS, END OF YEAR | 74,388 | 74,107 | 74,388 | 74,107 | 75,012 | ||||||
Supplemental disclosures of cash flow information: | |||||||||||
Interest | 9,408 | 6,337 | 4,432 | ||||||||
Income Taxes | 7,185 | 11,158 | 18,739 | ||||||||
Parent | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net Income | 46,583 | 29,131 | 38,413 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 193 | 195 | 200 | ||||||||
Equity in undistributed earnings | (34,092) | 645 | (7,670) | ||||||||
Contribution of shares to ESOP | 1,087 | 1,062 | 1,361 | ||||||||
Restricted stock compensation | 745 | 706 | 684 | ||||||||
Increase (decrease) in other liabilities | (585) | (247) | (262) | ||||||||
(Increase) decrease in other assets | (900) | 0 | 12 | ||||||||
NET CASH FROM OPERATING ACTIVITIES | 13,031 | 31,492 | 32,738 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of furniture and fixtures | 0 | 0 | 0 | ||||||||
NET CASH FROM INVESTING ACTIVITIES | 0 | 0 | 0 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Purchases of treasury stock | (391) | (503) | (19,396) | ||||||||
Dividends paid | (12,496) | (30,556) | (12,359) | ||||||||
NET CASH FROM FINANCING ACTIVITES | (12,887) | (31,059) | (31,755) | ||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 144 | 433 | 983 | ||||||||
CASH AND DUE FROM BANKS, BEGINNING OF YEAR | $ 3,198 | $ 2,765 | 3,198 | 2,765 | 1,782 | ||||||
CASH AND DUE FROM BANKS, END OF YEAR | $ 3,342 | $ 3,198 | 3,342 | 3,198 | 2,765 | ||||||
Supplemental disclosures of cash flow information: | |||||||||||
Interest | 0 | 0 | 0 | ||||||||
Income Taxes | $ 7,185 | $ 11,158 | $ 18,739 |
SELECTED QUARTERLY DATA (UNAU_2
SELECTED QUARTERLY DATA (UNAUDITED): (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||
Gain on Sale of certain assets and liabilities of Insurance Brokerage Operation | $ (199) | $ 12,800 | $ 0 | $ 0 | $ 12,822 | |||||||
Interest Income | $ 32,569 | 31,375 | $ 32,903 | $ 29,377 | $ 29,416 | $ 28,805 | $ 28,128 | $ 27,846 | ||||
Interest Expense | 2,974 | 2,548 | 2,219 | 1,904 | 1,734 | 1,697 | 1,568 | 1,339 | 9,645 | 6,338 | 4,407 | |
NET INTEREST INCOME | 29,595 | 28,827 | 30,684 | 27,473 | 27,682 | 27,108 | 26,560 | 26,507 | 116,579 | 107,857 | 104,973 | |
Provision For Loan Losses | 1,470 | 1,470 | 1,355 | 1,473 | 1,474 | 1,185 | 1,040 | 1,596 | 5,768 | 5,295 | 3,300 | |
Net income | $ 11,056 | $ 11,313 | $ 15,261 | $ 8,953 | $ 2,616 | $ 8,794 | $ 8,352 | $ 9,369 | $ 46,583 | $ 29,131 | $ 38,413 | |
Net Income Per Share (in dollars per share) | $ 0.90 | $ 0.92 | $ 1.25 | $ 0.73 | $ 0.21 | $ 0.72 | $ 0.68 | $ 0.77 | $ 3.80 | $ 2.38 | $ 3.12 |