Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | COMMUNITY BANK SYSTEM, INC. | |
Entity Central Index Key | 723,188 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 44,262,061 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash and cash equivalents | $ 161,634 | $ 153,210 |
Available-for-sale investment securities (cost of $2,725,232 and $2,742,278, respectively) | 2,889,863 | 2,808,113 |
Other securities, at cost | 41,438 | 39,827 |
Loans held for sale, at fair value | 514 | 932 |
Loans | 4,904,802 | 4,801,375 |
Allowance for loan losses | (46,526) | (45,401) |
Net loans | 4,858,276 | 4,755,974 |
Goodwill, net | 465,142 | 463,252 |
Core deposit intangibles, net | 8,379 | 9,789 |
Other intangibles, net | 9,957 | 11,105 |
Intangible assets, net | 483,478 | 484,146 |
Premises and equipment, net | 112,803 | 114,434 |
Accrued interest and fees receivable | 26,202 | 25,904 |
Other assets | 167,903 | 170,129 |
Total assets | 8,742,111 | 8,552,669 |
Liabilities: | ||
Noninterest-bearing deposits | 1,546,253 | 1,499,616 |
Interest-bearing deposits | 5,411,601 | 5,373,858 |
Total deposits | 6,957,854 | 6,873,474 |
Borrowings | 267,600 | 301,300 |
Subordinated debt held by unconsolidated subsidiary trusts | 102,158 | 102,146 |
Accrued interest and other liabilities | 177,570 | 135,102 |
Total liabilities | 7,505,182 | 7,412,022 |
Commitments and contingencies (See Note J) | ||
Shareholders' equity: | ||
Preferred stock, $1.00 par value, 500,000 shares authorized, 0 shares issued | 0 | 0 |
Common stock, $1.00 par value, 75,000,000 shares authorized; 44,695,978 and 44,442,568 shares issued, respectively | 44,696 | 44,443 |
Additional paid-in capital | 535,568 | 528,015 |
Retained earnings | 589,559 | 566,591 |
Accumulated other comprehensive income | 81,035 | 19,235 |
Treasury stock, at cost (517,283 and 667,708 shares, respectively) | (13,929) | (17,637) |
Total shareholders' equity | 1,236,929 | 1,140,647 |
Total liabilities and shareholders' equity | $ 8,742,111 | $ 8,552,669 |
CONSOLIDATED STATEMENTS OF CON3
CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Available-for-sale investment securities, cost | $ 2,725,232 | $ 2,742,278 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 44,695,978 | 44,442,568 |
Treasury stock, shares at cost (in shares) | 517,283 | 667,708 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income: | ||||
Interest and fees on loans | $ 52,509 | $ 45,791 | $ 104,159 | $ 91,382 |
Interest and dividends on taxable investments | 14,016 | 13,288 | 27,612 | 25,348 |
Interest on nontaxable investments | 4,585 | 4,801 | 9,095 | 9,604 |
Total interest income | 71,110 | 63,880 | 140,866 | 126,334 |
Interest expense: | ||||
Interest on deposits | 1,872 | 1,731 | 3,766 | 3,531 |
Interest on borrowings | 210 | 294 | 497 | 494 |
Interest on subordinated debt held by unconsolidated subsidiary trusts | 722 | 627 | 1,416 | 1,241 |
Total interest expense | 2,804 | 2,652 | 5,679 | 5,266 |
Net interest income | 68,306 | 61,228 | 135,187 | 121,068 |
Provision for loan losses | 2,305 | 591 | 3,646 | 1,214 |
Net interest income after provision for loan losses | 66,001 | 60,637 | 131,541 | 119,854 |
Noninterest revenues: | ||||
Deposit service fees | 15,008 | 13,213 | 28,742 | 25,683 |
Other banking services | 1,597 | 799 | 3,176 | 1,854 |
Employee benefit services | 11,671 | 11,322 | 23,682 | 22,397 |
Insurance revenues | 5,797 | 325 | 11,638 | 724 |
Wealth management services | 4,699 | 4,060 | 9,815 | 8,107 |
Total noninterest revenues | 38,772 | 29,719 | 77,053 | 58,765 |
Noninterest expenses: | ||||
Salaries and employee benefits | 37,950 | 31,010 | 77,088 | 62,039 |
Occupancy and equipment | 7,409 | 6,844 | 15,072 | 14,239 |
Data processing and communications | 8,732 | 7,473 | 17,142 | 14,463 |
Amortization of intangible assets | 1,403 | 880 | 2,845 | 1,799 |
Legal and professional fees | 1,857 | 1,642 | 4,374 | 3,388 |
Office supplies and postage | 1,846 | 1,517 | 3,623 | 3,097 |
Business development and marketing | 2,149 | 2,258 | 4,163 | 3,822 |
FDIC insurance premiums | 1,090 | 963 | 2,192 | 1,952 |
Acquisition expenses | 263 | 361 | 340 | 756 |
Other expenses | 3,657 | 3,100 | 7,186 | 6,441 |
Total noninterest expenses | 66,356 | 56,048 | 134,025 | 111,996 |
Income before income taxes | 38,417 | 34,308 | 74,569 | 66,623 |
Income taxes | 12,560 | 10,468 | 24,309 | 20,486 |
Net income | $ 25,857 | $ 23,840 | $ 50,260 | $ 46,137 |
Basic earnings per share (in dollars per share) | $ 0.58 | $ 0.58 | $ 1.14 | $ 1.13 |
Diluted earnings per share (in dollars per share) | 0.58 | 0.58 | 1.13 | 1.12 |
Cash dividends declared per share (in dollars per share) | $ 0.31 | $ 0.30 | $ 0.62 | $ 0.60 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Pension and other post retirement obligations: | |||||
Amortization of actuarial losses included in net periodic pension cost, gross | $ 376 | $ 363 | $ 751 | $ 727 | |
Tax effect | (144) | (140) | (288) | (281) | |
Amortization of actuarial losses included in net periodic pension cost, net | 232 | 223 | 463 | 446 | |
Amortization of prior service cost included in net periodic pension cost, gross | (34) | (43) | (67) | (85) | |
Tax effect | 13 | 16 | 25 | 33 | |
Amortization of prior service cost included in net periodic pension cost, net | (21) | (27) | (42) | (52) | |
Other comprehensive income related to pension and other post retirement obligations, net of taxes | 211 | 196 | 421 | 394 | |
Unrealized gains/(losses) on available-for-sale securities: | |||||
Net unrealized holding gains/(losses) arising during period, gross | 31,540 | (49,589) | 98,796 | (18,200) | |
Tax effect | (12,003) | 19,129 | (37,417) | 5,756 | |
Net unrealized holding gains/(losses) arising during period, net | 19,537 | (30,460) | 61,379 | (12,444) | |
Other comprehensive income/(loss) related to unrealized gains/(losses) on available-for-sale securities, net of taxes | 19,537 | (30,460) | 61,379 | (12,444) | |
Other comprehensive income/(loss), net of tax | 19,748 | (30,264) | 61,800 | (12,050) | |
Net income | 25,857 | 23,840 | 50,260 | 46,137 | |
Comprehensive income/(loss) | 45,605 | $ (6,424) | 112,060 | $ 34,087 | |
Accumulated Other Comprehensive Income By Component: | |||||
Unrealized loss for pension and other post-retirement obligations | (33,663) | (33,663) | $ (34,347) | ||
Tax effect | 12,801 | 12,801 | 13,064 | ||
Net unrealized loss for pension and other post-retirement obligations | (20,862) | (20,862) | (21,283) | ||
Unrealized gain on available-for-sale securities | 164,631 | 164,631 | 65,835 | ||
Tax effect | (62,734) | (62,734) | (25,317) | ||
Net unrealized gain on available-for-sale securities | 101,897 | 101,897 | 40,518 | ||
Accumulated other comprehensive income | $ 81,035 | $ 81,035 | $ 19,235 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2015 | $ 44,443 | $ 528,015 | $ 566,591 | $ 19,235 | $ (17,637) | $ 1,140,647 |
Balance (in shares) at Dec. 31, 2015 | 43,774,860 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 50,260 | 50,260 | ||||
Other comprehensive income, net of tax | 61,800 | 61,800 | ||||
Cash dividends declared: | ||||||
Common, $0.62 per share | (27,292) | (27,292) | ||||
Common stock issued under employee stock plan, including tax benefits of $928 | $ 253 | 3,629 | 3,882 | |||
Common stock issued under employee stock plan, including tax benefits of $928 (in shares) | 253,410 | |||||
Stock-based compensation | 2,220 | 2,220 | ||||
Treasury stock issued to benefit plan, net | 1,704 | 3,708 | 5,412 | |||
Treasury stock issued to benefit plan, net (in shares) | 150,425 | |||||
Balance at Jun. 30, 2016 | $ 44,696 | $ 535,568 | $ 589,559 | $ 81,035 | $ (13,929) | $ 1,236,929 |
Balance (in shares) at Jun. 30, 2016 | 44,178,695 |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($)$ / shares | |
Cash dividends declared: | |
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.62 |
Common stock issued under employee stock plan, tax benefits | $ | $ 928 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||
Net income | $ 50,260 | $ 46,137 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 7,150 | 6,533 |
Amortization of intangible assets | 2,845 | 1,799 |
Net accretion on securities, loans and borrowings | (2,240) | (1,505) |
Stock-based compensation | 2,220 | 2,150 |
Provision for loan losses | 3,646 | 1,214 |
Amortization of mortgage servicing rights | 257 | 206 |
Income from bank-owned life insurance policies | (736) | (515) |
Net (gain) loss on sale of loans and other assets | (318) | 21 |
Change in other assets and liabilities | 4,648 | (2,060) |
Net cash provided by operating activities | 67,732 | 53,980 |
Investing activities: | ||
Proceeds from maturities of available-for-sale investment securities | 49,500 | 89,631 |
Proceeds from maturities of other investment securities | 3,001 | 172 |
Purchases of available-for-sale investment securities | (28,237) | (448,747) |
Purchases of other securities | (4,612) | (10,312) |
Net change in loans | (108,983) | (31,173) |
Cash paid for acquisition, net of cash acquired of $0 and $0, respectively | (575) | 0 |
Expenditure for intangible asset | 0 | (100) |
Settlement of bank-owned life insurance policies | 2,481 | 0 |
Purchases of premises and equipment, net | (5,569) | (5,810) |
Net cash used in investing activities | (92,994) | (406,339) |
Financing activities: | ||
Net increase in deposits | 84,380 | 151,556 |
Net change in borrowings | (33,700) | 228,200 |
Issuance of common stock | 3,882 | 5,613 |
Purchases of treasury stock | (716) | (9,125) |
Sales of treasury stock | 6,128 | 4,063 |
Cash dividends paid | (27,216) | (24,360) |
Tax benefits from share-based payment arrangements | 928 | 1,063 |
Net cash provided by financing activities | 33,686 | 357,010 |
Change in cash and cash equivalents | 8,424 | 4,651 |
Cash and cash equivalents at beginning of period | 153,210 | 138,396 |
Cash and cash equivalents at end of period | 161,634 | 143,047 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 5,689 | 5,321 |
Cash paid for income taxes | 14,174 | 13,291 |
Supplemental disclosures of noncash financing and investing activities: | ||
Dividends declared and unpaid | 13,681 | 12,247 |
Transfers from loans to other real estate | 1,071 | 1,830 |
Purchase of intangible asset | $ 0 | $ 241 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Investing activities: | ||
Cash acquired from acquisition | $ 0 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | NOTE A: BASIS OF PRESENTATION The interim financial data as of and for the three and six months ended June 30, 2016 is unaudited; however, in the opinion of Community Bank System, Inc. (the "Company"), the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in conformity with generally accepted accounting principles ("GAAP"). The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2016 | |
ACQUISITIONS [Abstract] | |
ACQUISITIONS | NOTE B: ACQUISITIONS On January 4, 2016, the Company, through its subsidiary, CBNA Insurance Agency, Inc. ("CBNA Insurance"), completed its acquisition of WJL Agencies Inc. doing business as The Clark Insurance Agencies ("WJL"), an insurance agency operating in northern New York. The Company paid $0.6 million in cash for the intangible assets of the company. Goodwill in the amount of $0.3 million and intangible assets in the amount of $0.3 million were recorded in conjunction with the acquisition. The effects of the acquired assets and liabilities have been included in the consolidated financial statements since that date. On December 4, 2015, the Company completed its acquisition of Oneida Financial Corp. ("Oneida"), parent company of Oneida Savings Bank, headquartered in Oneida, New York for approximately $158 million in Company stock and cash, comprised of $56.3 million of cash and the issuance of 2.38 million shares of common stock. Upon the completion of the merger, Community Bank, N.A. ("CBNA" or the "Bank") added 12 branch locations in Oneida and Madison counties and approximately $769 million of assets, including approximately $399 million of loans and $226 million of investment securities, along with $699 million of deposits. Through the acquisition of Oneida, the Company acquired, among others, OneGroup NY, Inc. ("OneGroup") and Oneida Wealth Management, Inc. ("OWM") as wholly-owned subsidiaries primarily engaged in offering insurance and investment advisory services. These subsidiaries complement the Company's other non-banking financial services businesses. The effects of the acquired assets and liabilities have been included in the consolidated financial statements since that date. The assets and liabilities assumed in the acquisitions were recorded at their estimated fair values based on management's best estimates using information available at the date of the acquisition, and were subject to adjustment based on updated information not available at the time of acquisition. During the first quarter of 2016, the carrying amount of other assets decreased by $0.9 million and other liabilities increased by $0.7 million as a result of adjustments made to fair value estimates recorded for the Oneida acquisition. Other assets decreased as a result of new information obtained related to the fair value calculation of loans partially offset by a decrease in the fair value adjustment made to accounts receivable for uncollectible accounts as actual cash receipts exceed anticipated cash receipts. Other liabilities increased as a result of updated information related to deferred taxes. Goodwill increased $1.6 million as a result of these changes in fair value estimates. The above referenced acquisitions expanded the Company's geographical presence in New York and management expects that the Company will benefit from greater geographic diversity and the advantages of other synergistic business development opportunities. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed after considering the measurement period adjustments described above: (000s omitted) 2016 2015 Consideration paid : Cash $ 575 $ 56,266 Community Bank System, Inc. common stock 0 102,202 Total net consideration paid 575 158,468 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 0 81,772 Investment securities 0 225,729 Loans 0 399,422 Premises and equipment 0 22,212 Accrued interest receivable 0 1,133 Other assets 0 26,529 Core deposit intangibles 0 2,570 Other intangibles 288 9,994 Deposits 0 (699,241 ) Other liabilities 0 (1,333 ) Total identifiable assets, net 288 68,787 Goodwill $ 287 $ 89,681 Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments were aggregated by comparable characteristics and recorded at fair value without a carryover of the related allowance for loan losses. Cash flows for each loan were determined using an estimate of credit losses and an estimated rate of prepayments. Projected monthly cash flows were then discounted to present value using a market-based discount rate. The excess of the undiscounted expected cash flows over the estimated fair value is referred to as the "accretable yield" and is recognized into interest income over the remaining lives of the acquired loans. The following is a summary of the loans acquired from Oneida at the date of acquisition: Acquired Acquired Total Impaired Non-impaired Acquired (000s omitted) Loans Loans Loans Contractually required principal and interest at acquisition $ 5,138 $ 484,937 $ 490,075 Contractual cash flows not expected to be collected (1,977 ) (4,833 ) (6,810 ) Expected cash flows at acquisition 3,161 480,104 483,265 Interest component of expected cash flows (341 ) (83,502 ) (83,843 ) Fair value of acquired loans $ 2,820 $ 396,602 $ 399,422 The fair value of checking, savings and money market deposit accounts acquired were assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. Certificate of deposit accounts were valued at the present value of the certificates' expected contractual payments discounted at market rates for similar certificates. The core deposit intangibles and other intangibles related to the Oneida acquisition and the other intangibles related to WJL are being amortized using an accelerated method over their estimated useful life of eight years. The goodwill, which is not amortized for book purposes, was assigned to the Banking and All Other segments for the Oneida acquisition and the All Other segment for WJL. Goodwill arising from the Oneida acquisition is not deductible for tax purposes. Goodwill arising from the WJL acquisition is deductible for tax purposes. Direct costs related to the acquisitions were expensed as incurred. Merger and acquisition integration-related expenses amount to $0.3 million and $0.4 million during the three months ended June 30, 2016 and 2015 and $0.3 million and $0.8 million for the six months ended June 30, 2016 and 2015, respectively, and have been separately stated in the Consolidated Statements of Income. Supplemental Pro Forma Financial Information The following unaudited condensed pro forma information assumes the Oneida acquisition had been completed as of January 1, 2015 for the three months and six months ended June 30, 2015. The pro forma information does not include amounts related to WJL as the amounts were immaterial and financial information is not readily available. The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the years presented, nor is it indicative of the Company's future results. Furthermore, the unaudited pro forma information does not reflect management's estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain acquiree accounting policies to the Company's policies that may have occurred as a result of the integration and consolidation of the acquisitions. The pro forma information set forth below reflects the historical results of Oneida combined with the Company's consolidated statement of income with adjustments related to (a) certain purchase accounting fair value adjustments; (b) amortization of customer lists and core deposit intangibles and (c) changes to effective tax rate as a result of the Company's assets size being above $8 billion on a consolidated basis. Acquisition-related expenses totaling $0.4 million and $0.8 million are excluded from the pro forma information for the three and six months ended June 30, 2015, respectively. (000's omitted) Pro Forma (Unaudited) Three Months Ended June 30, 2015 Pro Forma (Unaudited) Six Months Ended June 30, 2015 Total revenue, net of interest expense $ 104,069 $ 207,010 Net income 24,770 48,501 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
ACCOUNTING POLICIES [Abstract] | |
ACCOUNTING POLICIES | NOTE C: ACCOUNTING POLICIES The accounting policies of the Company, as applied in the consolidated interim financial statements presented herein, are substantially the same as those followed on an annual basis as presented on pages 56 through 61 of the Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission ("SEC") on February 29, 2016. Critical Accounting Policies Acquired Loans Acquired loans are initially recorded at their acquisition date fair values. The carryover of allowance for loan losses is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. Fair values for acquired loans are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate. Acquired Impaired Loans Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments are accounted for as impaired loans under Accounting Standards Codification ("ASC") 310-30. The excess of undiscounted cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loans using the interest method. The difference between contractually required payments at acquisition and the undiscounted cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses and other contractually required payments that the Company does not expect to collect. Subsequent decreases in expected cash flows are recognized as impairments through a charge to the provision for credit losses resulting in an increase in the allowance for loan losses. Subsequent improvements in expected cash flows result in a recovery of previously recorded allowance for loan losses or a reversal of a corresponding amount of the non-accretable discount, which the Company then reclassifies as an accretable discount that is recognized into interest income over the remaining life of the loans using the interest method. Acquired loans that met the criteria for non-accrual of interest prior to acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loans to be non-accrual or non-performing and may accrue interest on these loans, including the impact of any accretable discount. Acquired Non-impaired Loans Acquired loans that do not meet the requirements under ASC 310-30 are considered acquired non-impaired loans. The difference between the acquisition date fair value and the outstanding balance represents the fair value adjustment for a loan and includes both credit and interest rate considerations. Fair value adjustments may be discounts (or premiums) to a loan's cost basis and are accreted (or amortized) to net interest income (or expense) over the loan's remaining life in accordance with ASC 310-20. Fair value adjustments for revolving loans are accreted (or amortized) using a straight line method. Term loans are accreted (or amortized) using the constant effective yield method. Subsequent to the purchase date, the methods used to estimate the allowance for loan losses for the acquired non-impaired loans are consistent with the policy described below. However, the Company compares the net realizable value of the loans to the carrying value, for loans collectively evaluated for impairment. The carrying value represents the net of the loan's unpaid principal balance and the remaining purchase discount (or premium) that has yet to be accreted into interest income. When the carrying value exceeds the net realizable value, an allowance for loan loss is recognized. Allowance for Loan Losses Management continually evaluates the credit quality of the Company's loan portfolio, and performs a formal review of the adequacy of the allowance for loan losses on a quarterly basis. The allowance reflects management's best estimate of probable losses inherent in the loan portfolio. Determination of the allowance is subjective in nature and requires significant estimates. The Company's allowance methodology consists of two broad components - general and specific loan loss allocations. The general loan loss allocation is composed of two calculations that are computed on five main loan segments: business lending; consumer direct; consumer indirect; home equity; and consumer mortgage. The first calculation is quantitative and determines an allowance level based on the latest 36 months of historical net charge-off data for each loan class (commercial loans exclude balances with specific loan loss allocations). The second calculation is qualitative and takes into consideration eight qualitative environmental factors: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards, and other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. A component of the qualitative calculation is the unallocated allowance for loan loss. The qualitative and quantitative calculations are added together to determine the general loan loss allocation. The specific loan loss allocation relates to individual commercial loans that are both greater than $0.5 million and in a nonaccruing status with respect to interest. Specific loan losses are based on discounted estimated cash flows, including any cash flows resulting from the conversion of collateral or collateral shortfalls. The allowance levels computed from the specific and general loan loss allocation methods are combined with unallocated allowances and allowances needed for acquired loans to derive the total required allowance for loan losses to be reflected on the Consolidated Statement of Condition. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is charged to operations based on management's periodic evaluation of factors previously mentioned. Investment Securities The Company can classify its investments in debt and equity securities as held-to-maturity, available-for-sale, or trading. Held-to-maturity securities are those for which the Company has the positive intent and ability to hold until maturity, and are reported at cost, which is adjusted for amortization of premiums and accretion of discounts. Securities classified as available-for-sale are reported at fair value with net unrealized gains and losses reflected as a separate component of shareholders' equity, net of applicable income taxes. None of the Company's investment securities have been classified as trading securities at June 30, 2016. Certain equity securities are stated at cost and include restricted stock of the Federal Reserve Bank of New York ("Federal Reserve") and Federal Home Loan Bank of New York ("FHLB"). Fair values for investment securities are based upon quoted market prices, where available. If quoted market prices are not available, fair values are based upon quoted market prices of comparable instruments, or a discounted cash flow model using market estimates of interest rates and volatility. The Company conducts an assessment of all securities in an unrealized loss An OTTI loss must be recognized for a debt security in an unrealized loss position if there is intent to sell the security or it is more likely than not the Company will be required to sell the security prior to recovery of its amortized cost basis. In this situation, the amount of loss recognized in income is equal to the difference between the fair value and the amortized cost basis of the security. Even if management does not have the intent, and it is not more likely than not that the Company will be required to sell the securities, an evaluation of the expected cash flows to be received is performed to determine if a credit loss has occurred. For debt securities, a critical component of the evaluation for OTTI is the identification of credit-impaired securities, where the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. In the event of a credit loss, only the amount of impairment associated with the credit loss would be recognized in income. The portion of the unrealized loss relating to other factors, such as liquidity conditions in the market or changes in market interest rates, is recorded in accumulated other comprehensive loss. Equity securities are also evaluated to determine whether the unrealized loss is expected to be recoverable based on whether evidence exists to support a realizable value equal to or greater than the amortized cost basis. If it is probable that the amortized cost basis will not be recovered, taking into consideration the estimated recovery period and the ability to hold the equity security until recovery, OTTI is recognized in earnings equal to the difference between the fair value and the amortized cost basis of the security. The specific identification method is used in determining the realized gains and losses on sales of investment securities and OTTI charges. Premiums and discounts on securities are amortized and accreted, respectively, on the interest method basis over the period to maturity or estimated life of the related security. Purchases and sales of securities are recognized on a trade date basis. Intangible Assets Intangible assets include core deposit intangibles, customer relationship intangibles and goodwill arising from acquisitions. Core deposit intangibles and customer relationship intangibles are amortized on either an accelerated or straight-line basis over periods ranging from seven to 20 years. The initial and ongoing carrying value of goodwill and other intangible assets is based upon discounted cash flow modeling techniques that require management to make estimates regarding the amount and timing of expected future cash flows. It also requires use of a discount rate that reflects the current return requirements of the market in relation to present risk-free interest rates, required equity market premiums, peer volatility indicators, and company-specific risk indicators. The Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. The implied fair value of a reporting unit's goodwill is compared to its carrying amount and the impairment loss is measured by the excess of the carrying value over fair value. The fair value of each reporting unit is compared to the carrying amount of that reporting unit in order to determine if impairment is indicated. Retirement Benefits The Company provides defined benefit pension benefits to eligible employees and post-retirement health and life insurance benefits to certain eligible retirees. The Company also provides deferred compensation and supplemental executive retirement plans for selected current and former employees, officers, and directors. Expense under these plans is charged to current operations and consists of several components of net periodic benefit cost based on various actuarial assumptions regarding future experience under the plans, including discount rate, rate of future compensation increases, and expected return on plan assets. New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU 2016-1, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The Company is currently evaluating the effect the guidance will have on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Topic 840, Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2016 | |
INVESTMENT SECURITIES [Abstract] | |
INVESTMENT SECURITIES | NOTE D: INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities as of June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 December 31, 2015 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair (000's omitted) Cost Gains Losses Value Cost Gains Losses Value Available-for-Sale Portfolio: U.S. Treasury and agency securities $ 1,871,049 $ 121,608 $ 0 $ 1,992,657 $ 1,866,819 $ 35,186 $ 2,027 $ 1,899,978 Obligations of state and political subdivisions 611,129 34,360 1 645,488 640,455 26,487 59 666,883 Government agency mortgage-backed securities 215,191 8,235 287 223,139 205,220 6,906 1,261 210,865 Corporate debt securities 16,606 54 0 16,660 16,672 66 58 16,680 Government agency collateralized mortgage obligations 11,006 496 0 11,502 12,862 446 0 13,308 Marketable equity securities 251 187 21 417 250 163 14 399 Total available-for-sale portfolio $ 2,725,232 $ 164,940 $ 309 $ 2,889,863 $ 2,742,278 $ 69,254 $ 3,419 $ 2,808,113 Other Securities: Federal Home Loan Bank common stock $ 17,732 $ 17,732 $ 19,317 $ 19,317 Federal Reserve Bank common stock 19,780 19,780 16,050 16,050 Other equity securities 3,926 3,926 4,460 4,460 Total other securities $ 41,438 $ 41,438 $ 39,827 $ 39,827 A summary of investment securities that have been in a continuous unrealized loss position is as follows: As of June 30, 2016 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (000's omitted) # Value Losses # Value Losses # Value Losses Available-for-Sale Portfolio: Obligations of state and political subdivisions 3 $ 842 $ 1 0 $ 0 $ 0 3 $ 842 $ 1 Government agency mortgage-backed securities 5 1,128 9 14 23,688 278 19 24,816 287 Corporate debt securities 1 3,000 0 0 0 0 1 3,000 0 Government agency collateralized mortgage obligations 0 0 0 2 3 0 2 3 0 Marketable equity securities 1 79 21 0 0 0 1 79 21 Total available-for-sale investment portfolio 10 $ 5,049 $ 31 16 $ 23,691 $ 278 26 $ 28,740 $ 309 As of December 31, 2015 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (000's omitted) # Value Losses # Value Losses # Value Losses Available-for-Sale Portfolio: U.S. Treasury and agency obligations 9 $ 353,844 $ 2,027 0 $ 0 $ 0 9 $ 353,844 $ 2,027 Obligations of state and political subdivisions 18 8,804 34 2 735 25 20 9,539 59 Government agency mortgage-backed securities 17 24,178 161 19 30,103 1,100 36 54,281 1,261 Corporate debt securities 1 3,024 0 1 2,710 58 2 5,734 58 Government agency collateralized mortgage obligations 0 0 0 2 3 0 2 3 0 Marketable equity securities 1 87 14 0 0 0 1 87 14 Total available-for-sale investment portfolio 46 $ 389,937 $ 2,236 24 $ 33,551 $ 1,183 70 $ 423,488 $ 3,419 The unrealized losses reported pertaining to securities issued by the U.S. government and its sponsored entities, include treasuries, agencies, and mortgage-backed securities issued by the Government National Mortgage Association ("GNMA"), the Federal National Mortgage Association ("FNMA"), and the Federal Home Loan Corporation ("FHLMC"), which are currently rated AAA by Moody's Investor Services, AA+ by Standard & Poor's and are guaranteed by the U.S. government. The majority of the obligations of state and political subdivisions and corporations carry a credit rating of A or better. Additionally, a majority of the obligations of state and political subdivisions carry a secondary level of credit enhancement. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost. The unrealized losses in the portfolios are primarily attributable to changes in interest rates. As such, management does not believe any individual unrealized loss as of June 30, 2016 represents OTTI. The amortized cost and estimated fair value of debt securities at June 30, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-Sale Amortized Fair (000's omitted) Cost Value Due in one year or less $ 46,761 $ 47,048 Due after one through five years 775,417 815,276 Due after five years through ten years 1,465,017 1,564,831 Due after ten years 211,589 227,650 Subtotal 2,498,784 2,654,805 Government agency mortgage-backed securities 215,191 223,139 Government agency collateralized mortgage obligations 11,006 11,502 Total $ 2,724,981 $ 2,889,446 |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2016 | |
LOANS [Abstract] | |
LOANS | NOTE E: LOANS The segments of the Company's loan portfolio are disaggregated into the following classes that allow management to monitor risk and performance: · Consumer mortgages consist primarily of fixed rate residential instruments, typically 10 – 30 years in contractual term, secured by first liens on real property. · Business lending is comprised of general purpose commercial and industrial loans including, but not limited to, agricultural-related and dealer floor plans, as well as mortgages on commercial properties. · Consumer indirect consists primarily of installment loans originated through selected dealerships and are secured by automobiles, marine and other recreational vehicles. · Consumer direct consists of all other loans to consumers such as personal installment loans and lines of credit. · Home equity products are consumer purpose installment loans or lines of credit most often secured by a first or second lien position on residential real estate with terms up to 30 years. The balances of these classes are summarized as follows: June 30, December 31, (000's omitted) 2016 2015 Consumer mortgage $ 1,779,295 $ 1,769,754 Business lending 1,536,546 1,497,271 Consumer indirect 993,132 935,760 Consumer direct 195,959 195,076 Home equity 399,870 403,514 Gross loans, including deferred origination costs 4,904,802 4,801,375 Allowance for loan losses (46,526 ) (45,401 ) Loans, net of allowance for loan losses $ 4,858,276 $ 4,755,974 The outstanding balance related to credit impaired acquired loans was $8.1 million and $8.5 million at June 30, 2016 and December 31, 2015, respectively. The changes in the accretable discount related to the credit impaired acquired loans are as follows: (000's omitted) Balance at December 31, 2015 $ 810 Accretion recognized, year-to-date (252 ) Net reclassification to accretable from non-accretable 116 Balance at June 30, 2016 $ 674 Credit Quality Management monitors the credit quality of its loan portfolio on an ongoing basis. Measurement of delinquency and past due status are based on the contractual terms of each loan. Past due loans are reviewed on a monthly basis to identify loans for non-accrual status. The following is an aged analysis of the Company's past due loans, by class as of June 30, 2016: Legacy Loans Past Due 90+ Days Past 30 – 89 Due and Total (000's omitted) Days Still Accruing Nonaccrual Past Due Current Total Loans Consumer mortgage $ 9,857 $ 1,018 $ 11,621 $ 22,496 $ 1,581,063 $ 1,603,559 Business lending 5,660 342 4,714 10,716 1,279,860 1,290,576 Consumer indirect 9,356 142 0 9,498 946,646 956,144 Consumer direct 1,179 26 0 1,205 182,127 183,332 Home equity 815 45 1,924 2,784 303,665 306,449 Total $ 26,867 $ 1,573 $ 18,259 $ 46,699 $ 4,293,361 $ 4,340,060 Acquired Loans Past Due 90+ Days Past 30 – 89 Due and Total Acquired (000's omitted) Days Still Accruing Nonaccrual Past Due Impaired (1) Current Total Loans Consumer mortgage $ 1,565 $ 270 $ 2,223 $ 4,058 $ 0 $ 171,678 $ 175,736 Business lending 340 0 1,260 1,600 7,008 237,362 245,970 Consumer indirect 168 0 0 168 0 36,820 36,988 Consumer direct 84 0 0 84 0 12,543 12,627 Home equity 684 66 408 1,158 0 92,263 93,421 Total $ 2,841 $ 336 $ 3,891 $ 7,068 $ 7,008 $ 550,666 $ 564,742 (1) Acquired impaired loans were not The following is an aged analysis of the Company's past due loans by class as of December 31, 2015: Legacy Loans Past Due 90+ Days Past 30 – 89 Due and Total (000's omitted) Days Still Accruing Nonaccrual Past Due Current Total Loans Consumer mortgage $ 10,482 $ 1,411 $ 11,394 $ 23,287 $ 1,558,171 $ 1,581,458 Business lending 4,442 126 5,381 9,949 1,223,679 1,233,628 Consumer indirect 11,575 102 0 11,677 878,662 890,339 Consumer direct 1,414 51 1 1,466 176,585 178,051 Home equity 1,093 111 2,029 3,233 297,012 300,245 Total $ 29,006 $ 1,801 $ 18,805 $ 49,612 $ 4,134,109 $ 4,183,721 Acquired Loans Past Due 90+ Days Past 30 – 89 Due and Total Acquired (000's omitted) Days Still Accruing Nonaccrual Past Due Impaired (1) Current Total Loans Consumer mortgage $ 1,373 $ 394 $ 1,396 $ 3,163 $ 0 $ 185,133 $ 188,296 Business lending 535 0 1,186 1,721 7,299 254,623 263,643 Consumer indirect 245 0 0 245 0 45,176 45,421 Consumer direct 140 0 14 154 0 16,871 17,025 Home equity 636 0 327 963 0 102,306 103,269 Total $ 2,929 $ 394 $ 2,923 $ 6,246 $ 7,299 $ 604,109 $ 617,654 (1) Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans. The Company uses several credit quality indicators to assess credit risk in an ongoing manner. The Company's primary credit quality indicator for its business lending portfolio is an internal credit risk rating system that categorizes loans as "pass", "special mention", "classified", or "doubtful". Credit risk ratings are applied individually to those classes of loans that have significant or unique credit characteristics that benefit from a case-by-case evaluation. In general, the following are the definitions of the Company's credit quality indicators: Pass The condition of the borrower and the performance of the loans are satisfactory or better. Special Mention The condition of the borrower has deteriorated although the loan performs as agreed. Classified The condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate, if deficiencies are not corrected. Doubtful The condition of the borrower has deteriorated to the point that collection of the balance is improbable based on current facts and conditions. The following table shows the amount of business lending loans by credit quality category: June 30, 2016 December 31, 2015 (000's omitted) Legacy Acquired Total Legacy Acquired Total Pass $ 1,082,841 $ 186,526 $ 1,269,367 $ 1,048,364 $ 219,374 $ 1,267,738 Special mention 135,172 31,724 166,896 124,768 20,007 144,775 Classified 72,283 20,712 92,995 60,181 16,963 77,144 Doubtful 280 0 280 315 0 315 Acquired impaired 0 7,008 7,008 0 7,299 7,299 Total $ 1,290,576 $ 245,970 $ 1,536,546 $ 1,233,628 $ 263,643 $ 1,497,271 All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis. These are typically loans to individuals in the consumer categories and are delineated as either performing or nonperforming. Performing loans include loans classified as current as well as those classified as 30 - 89 days past due. Nonperforming loans include 90+ days past due and still accruing and nonaccrual loans. The following table details the balances in all other loan categories at June 30, 2016: Legacy Loans Consumer Consumer Consumer Home (000's omitted) Mortgage Indirect Direct Equity Total Performing $ 1,590,920 $ 956,002 $ 183,306 $ 304,480 $ 3,034,708 Nonperforming 12,639 142 26 1,969 14,776 Total $ 1,603,559 $ 956,144 $ 183,332 $ 306,449 $ 3,049,484 Acquired Loans Consumer Consumer Consumer Home (000's omitted) Mortgage Indirect Direct Equity Total Performing $ 173,243 $ 36,988 $ 12,627 $ 92,947 $ 315,805 Nonperforming 2,493 0 0 474 2,967 Total $ 175,736 $ 36,988 $ 12,627 $ 93,421 $ 318,772 The following table details the balances in all other loan categories at December 31, 2015: Legacy Loans Consumer Consumer Consumer Home (000's omitted) Mortgage Indirect Direct Equity Total Performing $ 1,568,653 $ 890,237 $ 177,999 $ 298,105 $ 2,934,994 Nonperforming 12,805 102 52 2,140 15,099 Total $ 1,581,458 $ 890,339 $ 178,051 $ 300,245 $ 2,950,093 Acquired Loans Consumer Consumer Consumer Home (000's omitted) Mortgage Indirect Direct Equity Total Performing $ 186,506 $ 45,421 $ 17,011 $ 102,942 $ 351,880 Nonperforming 1,790 0 14 327 2,131 Total $ 188,296 $ 45,421 $ 17,025 $ 103,269 $ 354,011 All loan classes are collectively evaluated for impairment except business lending, as described in Note C. A summary of individually evaluated impaired loans as of June 30, 2016 and December 31, 2015 follows: June 30, December 31, (000's omitted) 2016 2015 Loans with allowance allocation $ 1,187 $ 0 Loans without allowance allocation 601 2,376 Unpaid principal balance 1,788 2,376 Contractual balance 3,401 3,419 Allowance for loan loss allocated 255 0 In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring ("TDR") has occurred, which is when, for economic or legal reasons related to a borrower's financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial standing and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. In accordance with the clarified guidance issued by the Office of the Comptroller of the Currency ("OCC"), loans that have been discharged in Chapter 7 bankruptcy but not reaffirmed by the borrower, are classified as TDRs, irrespective of payment history or delinquency status, even if the repayment terms for the loan have not been otherwise modified. The Company's lien position against the underlying collateral remains unchanged. Pursuant to that guidance, the Company records a charge-off equal to any portion of the carrying value that exceeds the net realizable value of the collateral. The amount of loss incurred in the three and six months ended June 30, 2016 and 2015 was immaterial. TDRs that are less than $0.5 million are collectively included in the general loan loss allocation and the qualitative review. TDRs that are commercial loans and greater than $0.5 million are individually evaluated for impairment, and if necessary, a specific allocation of the allowance for loan losses is provided. As a result, the determination of the amount of allowance for loan losses related to TDRs is the same as detailed in the critical accounting policies. Information regarding TDRs as of June 30, 2016 and December 31, 2015 is as follows: June 30, 2016 December 31, 2015 (000's omitted) Nonaccrual Accruing Total Nonaccrual Accruing Total # Amount # Amount # Amount # Amount # Amount # Amount Consumer mortgage 43 $ 1,979 44 $ 2,227 87 $ 4,206 37 $ 1,472 54 $ 2,486 91 $ 3,958 Business lending 10 234 5 708 15 942 8 217 6 737 14 954 Consumer indirect 0 0 83 806 83 806 0 0 77 691 77 691 Consumer direct 0 0 10 71 10 71 0 0 32 37 32 37 Home equity 14 240 12 261 26 501 10 203 14 301 24 504 Total 67 $ 2,453 154 $ 4,073 221 $ 6,526 55 $ 1,892 183 $ 4,252 238 $ 6,144 The following table presents information related to loans modified in a TDR during the three months and six months ended June 30, 2016 and 2015. Of the loans noted in the table below, all loans for the three months and six months ended June 30, 2016 and 2015 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial. Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (000's omitted) Number of loans modified Outstanding Balance Number of loans modified Outstanding Balance Consumer mortgage 5 $ 437 2 $ 61 Business lending 2 51 0 0 Consumer indirect 9 118 6 84 Consumer direct 1 52 1 1 Home equity 3 73 0 0 Total 20 $ 731 9 $ 146 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (000's omitted) Number of loans modified Outstanding Balance Number of loans modified Outstanding Balance Consumer mortgage 8 $ 652 6 $ 280 Business lending 2 51 0 0 Consumer indirect 20 331 12 163 Consumer direct 1 52 2 4 Home equity 4 73 1 14 Total 35 $ 1,159 21 $ 461 Allowance for Loan Losses The allowance for loan losses is general in nature and is available to absorb losses from any loan type despite the analysis below. The following presents by class the activity in the allowance for loan losses: Three Months Ended Consumer Business Consumer Consumer Home Acquired (000's omitted) Mortgage Lending Indirect Direct Equity Unallocated Impaired Total Beginning balance $ 10,148 $ 16,695 $ 12,334 $ 2,875 $ 2,580 $ 879 $ 85 $ 45,596 Charge-offs (156 ) (770 ) (1,545 ) (389 ) (80 ) 0 (26 ) (2,966 ) Recoveries 38 156 1,140 238 19 0 0 1,591 Provision (177 ) 868 1,286 296 (19 ) (29 ) 80 2,305 Ending balance $ 9,853 $ 16,949 $ 13,215 $ 3,020 $ 2,500 $ 850 $ 139 $ 46,526 Three Months Ended Consumer Business Consumer Consumer Home Acquired (000's omitted) Mortgage Lending Indirect Direct Equity Unallocated Impaired Total Beginning balance $ 10,233 $ 15,405 $ 11,246 $ 2,879 $ 2,663 $ 2,383 $ 196 $ 45,005 Charge-offs (199 ) (299 ) (1,397 ) (294 ) (56 ) 0 (43 ) (2,288 ) Recoveries 45 527 1,184 199 19 0 0 1,974 Provision 113 (280 ) 569 207 51 (9 ) (60 ) 591 Ending balance $ 10,192 $ 15,353 $ 11,602 $ 2,991 $ 2,677 $ 2,374 $ 93 $ 45,282 Six Months Ended Consumer Business Consumer Consumer Home Acquired (000's omitted) Mortgage Lending Indirect Direct Equity Unallocated Impaired Total Beginning balance $ 10,198 $ 15,749 $ 12,422 $ 2,997 $ 2,666 $ 1,201 $ 168 $ 45,401 Charge-offs (243 ) (979 ) (3,401 ) (852 ) (137 ) 0 (26 ) (5,638 ) Recoveries 83 291 2,255 460 28 0 0 3,117 Provision (185 ) 1,888 1,939 415 (57 ) (351 ) (3 ) 3,646 Ending balance $ 9,853 $ 16,949 $ 13,215 $ 3,020 $ 2,500 $ 850 $ 139 $ 46,526 Six Months Ended Consumer Business Consumer Consumer Home Acquired (000's omitted) Mortgage Lending Indirect Direct Equity Unallocated Impaired Total Beginning balance $ 10,286 $ 15,787 $ 11,544 $ 3,083 $ 2,701 $ 1,767 $ 173 $ 45,341 Charge-offs (642 ) (433 ) (2,823 ) (639 ) (122 ) 0 (43 ) (4,702 ) Recoveries 66 608 2,337 392 26 0 0 3,429 Provision 482 (609 ) 544 155 72 607 (37 ) 1,214 Ending balance $ 10,192 $ 15,353 $ 11,602 $ 2,991 $ 2,677 $ 2,374 $ 93 $ 45,282 |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2016 | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | NOTE F: GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows: June 30, 2016 December 31, 2015 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying (000's omitted) Amount Amortization Amount Amount Amortization Amount Amortizing intangible assets: Core deposit intangibles $ 39,688 $ (31,309 ) $ 8,379 $ 39,688 $ (29,899 ) $ 9,789 Other intangibles 17,852 (7,895 ) 9,957 17,565 (6,460 ) 11,105 Total amortizing intangibles $ 57,540 $ (39,204 ) $ 18,336 $ 57,253 $ (36,359 ) $ 20,894 The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows: (000's omitted) Jul - Dec 2016 $ 2,634 2017 4,412 2018 3,566 2019 2,782 2020 2,119 Thereafter 2,823 Total $ 18,336 Shown below are the components of the Company's goodwill at December 31, 2015 and June 30, 2016: (000's omitted) December 31, 2015 Activity June 30, 2016 Goodwill $ 468,076 $ 1,890 $ 469,966 Accumulated impairment (4,824 ) 0 (4,824 ) Goodwill, net $ 463,252 $ 1,890 $ 465,142 |
MANDATORILY REDEEMABLE PREFERRE
MANDATORILY REDEEMABLE PREFERRED SECURITIES | 6 Months Ended |
Jun. 30, 2016 | |
MANDATORILY REDEEMABLE PREFERRED SECURITIES [Abstract] | |
MANDATORILY REDEEMABLE PREFERRED SECURITIES | NOTE G: MANDATORILY REDEEMABLE PREFERRED SECURITIES The Company sponsors two business trusts, Community Statutory Trust III and Community Capital Trust IV, of which 100% of the common stock is owned by the Company. The trusts were formed for the purpose of issuing company-obligated mandatorily redeemable preferred securities to third-party investors and investing the proceeds from the sale of such preferred securities solely in junior subordinated debt securities of the Company. The debentures held by each trust are the sole assets of that trust. Distributions on the preferred securities issued by each trust are payable quarterly at a rate per annum equal to the interest rate being earned by the trust on the debentures held by that trust and are recorded as interest expense in the consolidated financial statements. The preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the preferred securities subject to the terms of each of the guarantees. The terms of the preferred securities of each trust are as follows: Issuance Par Maturity Trust Date Amount Interest Rate Date Call Price III 7/31/2001 $24.5 million 3 month LIBOR plus 3.58% (4.22%) 7/31/2031 Par IV 12/8/2006 $75 million 3 month LIBOR plus 1.65% (2.30%) 12/15/2036 Par |
BENEFIT PLANS
BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2016 | |
BENEFIT PLANS [Abstract] | |
BENEFIT PLANS | NOTE H: BENEFIT PLANS The Company provides a qualified defined benefit pension to eligible employees and retirees, other post-retirement health and life insurance benefits to certain retirees, an unfunded supplemental pension plan for certain key executives, and an unfunded stock balance plan for certain of its nonemployee directors. The Company accrues for the estimated cost of these benefits through charges to expense during the years that employees earn these benefits. No contributions to the defined benefit pension plan are required or planned for 2016. The net periodic benefit cost for the three and six months ended June 30, 2016 and 2015 is as follows: Pension Benefits Post-retirement Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (000's omitted) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 1,027 $ 831 $ 2,052 $ 1,662 $ 0 $ 0 $ 0 $ 0 Interest cost 1,406 1,375 2,812 2,749 20 22 41 43 Expected return on plan assets (2,961 ) (3,042 ) (5,921 ) (6,085 ) 0 0 0 0 Amortization of unrecognized net loss 377 366 754 733 (1 ) (3 ) (3 ) (6 ) Amortization of prior service cost 11 2 22 4 (45 ) (45 ) (89 ) (89 ) Net periodic benefit cost $ (140 ) $ (468 ) $ (281 ) $ (937 ) $ (26 ) $ (26 ) $ (51 ) $ (52 ) |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE I: EARNINGS PER SHARE The two class method is used in the calculations of basic and diluted earnings per share. Under the two class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared and participation rights in undistributed earnings. The Company has determined that all of its outstanding non-vested stock awards are participating securities as of June 30, 2016. Basic earnings per share are computed based on the weighted-average of the common shares outstanding for the period. Diluted earnings per share are based on the weighted-average of the shares outstanding adjusted for the dilutive effect of restricted stock and the assumed exercise of stock options during the year. The dilutive effect of options is calculated using the treasury stock method of accounting. The treasury stock method determines the number of common shares that would be outstanding if all the dilutive options (those where the average market price is greater than the exercise price) were exercised and the proceeds were used to repurchase common shares in the open market at the average market price for the applicable time period. There were approximately 0.8 million weighted-average anti-dilutive stock options outstanding for the three months ended June 30, 2016, and approximately 0.7 million weighted-average anti-dilutive stock options outstanding for the six months ended June 30, 2016, compared to approximately 0.6 million weighted-average anti-dilutive stock options outstanding for the three months ended June 30, 2015, and approximately 0.4 million weighted-average anti-dilutive stock options outstanding for the six months ended June 30, 2015 that were not included in the computation below. The following is a reconciliation of basic to diluted earnings per share for the three and six months ended June 30 , 2016 Three Months Ended Six Months Ended June 30, June 30, (000's omitted, except per share data) 2016 2015 2016 2015 Net income $ 25,857 $ 23,840 $ 50,260 $ 46,137 Income attributable to unvested stock-based compensation awards (151 ) (99 ) (242 ) (177 ) Income available to common shareholders $ 25,706 $ 23,741 $ 50,018 $ 45,960 Weighted-average common shares outstanding – basic 44,021 40,690 43,942 40,674 Basic earnings per share $ 0.58 $ 0.58 $ 1.14 $ 1.13 Net income $ 25,857 $ 23,840 $ 50,260 $ 46,137 Income attributable to unvested stock-based compensation awards (151 ) (99 ) (242 ) (177 ) Income available to common shareholders $ 25,706 $ 23,741 $ 50,018 $ 45,960 Weighted-average common shares outstanding – basic 44,021 40,690 43,942 40,674 Assumed exercise of stock options 357 404 347 405 Weighted-average common shares outstanding – diluted 44,378 41,094 44,289 41,079 Diluted earnings per share $ 0.58 $ 0.58 $ 1.13 $ 1.12 Stock Repurchase Program At its December 2015 meeting, the Company's Board of Directors (the "Board") approved a new repurchase program authorizing the repurchase of up to 2.2 million shares of the Company's common stock, in accordance with securities laws and regulations, through December 31, 2016. Any repurchased shares will be used for general corporate purposes, including those related to stock plan activities. The timing and extent of repurchases will depend on market conditions and other corporate considerations as determined at the Company's discretion. The Company did not repurchase any shares under the authorized plan during the first six months of 2016. |
COMMITMENTS, CONTINGENT LIABILI
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | 6 Months Ended |
Jun. 30, 2016 | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS [Abstract] | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS | NOTE J: COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS The Company 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 consist primarily of commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. These commitments consist principally of unused commercial and consumer credit lines. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of an underlying contract with a third party. The credit risks associated with commitments to extend credit and standby letters of credit are essentially the same as that involved with extending loans to customers and are subject to the Company's normal credit policies. Collateral may be obtained based on management's assessment of the customer's creditworthiness. The fair value of the standby letters of credit is immaterial for disclosure. The contract amounts of commitments and contingencies are as follows: (000's omitted) June 30, 2016 December 31, 2015 Commitments to extend credit $ 725,561 $ 811,442 Standby letters of credit 19,713 19,053 Total $ 745,274 $ 830,495 The Company and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. As of June 30, 2016, management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against the Company or its subsidiaries will be material to the Company's consolidated financial position. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. The range of reasonably possible losses for matters where an exposure is not currently estimable or considered probable, beyond the existing recorded liabilities, is between $0 and $1 million in the aggregate. Although the Company does not believe that the outcome of pending litigation will be material to the Company's consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2016 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | NOTE K: FAIR VALUE Accounting standards establish a framework for measuring fair value and require certain disclosures about such fair value instruments. It defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. exit price). Inputs used to measure fair value are classified into the following hierarchy: ● Quoted prices in active markets for identical assets or liabilities. ● Quoted prices in active markets for similar assets or liabilities, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. ● Significant valuation assumptions not readily observable in a market. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis. There were no transfers between any of the levels for the periods presented. June 30, 2016 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,992,657 $ 0 $ 0 $ 1,992,657 Obligations of state and political subdivisions 0 645,488 0 645,488 Government agency mortgage-backed securities 0 223,139 0 223,139 Corporate debt securities 0 16,660 0 16,660 Government agency collateralized mortgage obligations 0 11,502 0 11,502 Marketable equity securities 417 0 0 417 Total available-for-sale investment securities 1,993,074 896,789 0 2,889,863 Mortgage loans held for sale 0 514 0 514 Commitments to originate real estate loans for sale 0 0 361 361 Forward sales commitments 0 (78 ) 0 (78 ) Total $ 1,993,074 $ 897,225 $ 361 $ 2,890,660 December 31, 2015 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,899,978 $ 0 $ 0 $ 1,899,978 Obligations of state and political subdivisions 0 666,883 0 666,883 Government agency mortgage-backed securities 0 210,865 0 210,865 Corporate debt securities 0 16,680 0 16,680 Government agency collateralized mortgage obligations 0 13,308 0 13,308 Marketable equity securities 399 0 0 399 Total available-for-sale investment securities 1,900,377 907,736 0 2,808,113 Mortgage loans held for sale 0 932 0 932 Commitments to originate real estate loans for sale 0 0 117 117 Forward sales commitments 0 (37 ) 0 (37 ) Total $ 1,900,377 $ 908,631 $ 117 $ 2,809,125 The valuation techniques used to measure fair value for the items in the table above are as follows: · Available-for-sale investment securities – The fair values of available-for-sale investment securities are based upon quoted prices, if available. If quoted prices are not available, fair values are measured using quoted market prices for similar securities or model-based valuation techniques. Level 1 securities include U.S. Treasury obligations and marketable equity securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 securities include U.S. agency securities, mortgage-backed securities issued by government-sponsored entities, municipal securities and corporate debt securities that are valued by reference to prices for similar securities or through model-based techniques in which all significant inputs, such as reported trades, trade execution data, LIBOR swap yield curve, market prepayment speeds, credit information, market spreads, and security's terms and conditions, are observable. See Note D for further disclosure of the fair value of investment securities. · Mortgage loans held for sale –The Company has elected to value loans held for sale at fair value in order to more closely match the gains and losses associated with loans held for sale with the gains and losses on forward sales contracts. Accordingly, the impact on the valuation will be recognized in the Company's consolidated statement of income. All mortgage loans held for sale are current and in performing status. The fair value of mortgage loans held for sale is determined using quoted secondary-market prices of loans with similar characteristics and, as such, has been classified as a Level 2 valuation. The unpaid principal value of mortgage loans held for sale at June 30, 2016 was approximately $0.5 million. The unrealized gain on mortgage loans held for sale was recognized in mortgage banking and other income in the consolidated statement and is immaterial. · Forward sales commitments – The Company enters into forward sales commitments to sell certain residential real estate loans. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value in the other asset or other liability section of the consolidated balance sheet. The fair value of these forward sales commitments is primarily measured by obtaining pricing from certain government-sponsored entities and reflects the underlying price the entity would pay the Company for an immediate sale on these mortgages. As such, these instruments are classified as Level 2 in the fair value hierarchy. · Commitments to originate real estate loans for sale – The Company enters into various commitments to originate residential real estate loans for sale. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value in the other asset or other liability section of the consolidated balance sheet. The estimated fair value of these commitments is determined using quoted secondary market prices obtained from certain government-sponsored entities. Additionally, accounting guidance requires the expected net future cash flows related to the associated servicing of the loan to be included in the fair value measurement of the derivative. The expected net future cash flows are based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. Such assumptions include estimates of the cost of servicing loans, appropriate discount rate and prepayment speeds. The determination of expected net cash flows is considered a significant unobservable input contributing to the Level 3 classification of commitments to originate real estate loans for sale. The changes in Level 3 assets measured at fair value on a recurring basis are summarized in the following tables: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (000's omitted) Commitments to Originate Real Estate Loans for Sale Commitments to Originate Real Estate Loans for Sale Commitments to Originate Real Estate Loans for Sale Commitments to Originate Real Estate Loans for Sale Beginning balance $ 282 $ 152 $ 117 $ 185 Total losses included in earnings (1) (282 ) (152 ) (399 ) (337 ) Commitments to originate real estate loans held for sale, net 361 195 643 347 Ending balance $ 361 $ 195 $ 361 $ 195 (1) Amounts included in earnings associated with the commitments to originate real estate loans for sale are reported as a component of other banking services in the Consolidated Statement of Income The fair value information of assets and liabilities measured on a non-recurring basis presented below is not as of the period-end, but rather as of the date the fair value adjustment was recorded closest to the date presented. June 30, 2016 December 31, 2015 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Impaired loans $ 0 $ 0 $ 932 $ 932 $ 0 $ 0 $ 1,765 $ 1,765 Mortgage servicing rights 0 0 638 638 0 0 0 0 Other real estate owned 0 0 1,726 1,726 0 0 2,088 2,088 Total $ 0 $ 0 $ 3,296 $ 3,296 $ 0 $ 0 $ 3,853 $ 3,853 Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, adjusted for non-observable inputs. Thus, the resulting nonrecurring fair value measurements are generally classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and, therefore, such valuations classify as Level 3. Other real estate owned ("OREO") is valued at the time the loan is foreclosed upon and the asset is transferred to OREO. The value is based primarily on third party appraisals, less costs to sell. The appraisals are sometimes further discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the customer and customer's business. Such discounts are significant, ranging from 6% to 94% at June 30, 2016 and result in a Level 3 classification of the inputs for determining fair value. OREO is reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. The Company recovers the carrying value of OREO through the sale of the property. The ability to affect future sales prices is subject to market conditions and factors beyond the Company's control and may impact the estimated fair value of a property. Originated mortgage servicing rights are recorded at their fair value at the time of sale of the underlying loan, and are amortized in proportion to and over the estimated period of net servicing income. The fair value of mortgage servicing rights is based on a valuation model incorporating inputs that market participants would use in estimating future net servicing income. Such inputs include estimates of the cost of servicing loans, appropriate discount rate and prepayment speeds and are considered to be unobservable and contribute to the Level 3 classification of mortgage servicing rights. In accordance with GAAP, the Company must record impairment charges, on a nonrecurring basis, when the carrying value of a stratum exceeds its estimated fair value. Impairment is recognized through a valuation allowance. There is a valuation allowance at June 30, 2016 of approximately $0.1 million. The Company determines fair values based on quoted market values, where available, estimates of present values, or other valuation techniques. Those techniques are significantly affected by the assumptions used, including, but not limited to, the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in immediate settlement of the instrument. The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis are as follows: (000's omitted) Fair Value at June 30, 2016 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Range (Weighted Average) Other real estate owned $ 1,726 Fair Value of Collateral Estimated cost of disposal/market adjustment 6 . %) Impaired loans 932 Fair Value of Collateral Estimated cost of disposal/market adjustment 9.0% - 16.9% (12.8 %) Commitments to originate real estate loans for sale 361 Discounted cash flow Embedded servicing value 1 % Mortgage servicing rights 638 Discounted cash flow Weighted average constant prepayment rate 11.8 % Weighted average discount rate 2.24 % Adequate compensation $7/loan (000's omitted) Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Range (Weighted Average) Other real estate owned $ 2,088 Fair value of collateral Estimated cost of disposal/market adjustment 5.3% - 74.0% (27.7 %) Impaired loans 1,765 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 20.0% (17.9 %) Commitments to originate real estate loans for sale 117 Discounted cash flow Embedded servicing value 1 % Certain financial instruments and all nonfinancial instruments are excluded from fair value disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company's other financial instruments that are not accounted for at fair value at June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 December 31, 2015 Carrying Fair Carrying Fair (000's omitted) Value Value Value Value Financial assets: Net loans $ 4,858,276 $ 4,928,960 $ 4,755,974 $ 4,808,856 Financial liabilities: Deposits 6,957,854 6,956,075 6,873,474 6,871,098 Borrowings 267,600 267,600 301,300 301,300 Subordinated debt held by unconsolidated subsidiary trusts 102,158 80,108 102,146 84,680 The following is a further description of the principal valuation methods used by the Company to estimate the fair values of its financial instruments. Loans have been classified as a Level 3 valuation. Fair values for variable rate loans that reprice frequently are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flows and interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Deposits have been classified as a Level 2 valuation. The fair value of demand deposits, interest-bearing checking deposits, savings accounts, and money market deposits is the amount payable on demand at the reporting date. The fair value of time deposit obligations are based on current market rates for similar products. Borrowings have been classified as a Level 2 valuation. The fair value of FHLB overnight advances is the amount payable on demand at the reporting date. Fair values for long-term borrowings are estimated using discounted cash flows and interest rates currently being offered on similar borrowings, and are immaterial as of the reporting dates. Subordinated debt held by unconsolidated subsidiary trusts have been classified as a Level 2 valuation. The fair value of subordinated debt held by unconsolidated subsidiary trusts are estimated using discounted cash flows and interest rates currently being offered on similar securities. Other financial assets and liabilities – Cash and cash equivalents have been classified as a Level 1 valuation, while accrued interest receivable and accrued interest payable have been classified as a Level 2 valuation. The fair values of each approximate the respective carrying values because the instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
DERIVATIVE INSTRUMENTS [Abstract] | |
DERIVATIVE INSTRUMENTS | NOTE L: DERIVATIVE INSTRUMENTS The Company is party to derivative financial instruments in the normal course of its business to meet the financing needs of its customers and to manage its own exposure to fluctuations in interest rates. These financial instruments have been limited to commitments to originate real estate loans held for sale and forward sales commitments. The Company does not hold or issue derivative financial instruments for trading or other speculative purposes. The Company enters into forward sales commitments for the future delivery of residential mortgage loans, and interest rate lock commitments to fund loans at a specified interest rate. The forward sales commitments are utilized to reduce interest rate risk associated with interest rate lock commitments and loans held for sale. Changes in the estimated fair value of the forward sales commitments and interest rate lock commitments subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. At inception and during the life of the interest rate lock commitment, the Company includes the expected net future cash flows related to the associated servicing of the loan as part of the fair value measurement of the interest rate lock commitments. These derivatives are recorded at fair value, which were immaterial at June 30, 2016. The effect of the changes to these derivatives for the three and six months then ended was also immaterial. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2016 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE M: SEGMENT INFORMATION Operating segments are components of an enterprise, which are evaluated regularly by the "chief operating decision maker" in deciding how to allocate resources and assess performance. The Company's chief operating decision maker is the President and Chief Executive Officer of the Company. The Company has identified Banking and Employee Benefit Services as its reportable operating business segments. CBNA operates the Banking segment that provides full-service banking to consumers, businesses, and governmental units in northern, central, and western New York as well as northeastern Pennsylvania. Employee Benefit Services, which includes Benefit Plans Administrative Services LLC, BPAS Actuarial and Pension Services LLC (formerly Harbridge Consulting Group, LLC), and Hand Benefits & Trust Company, provides employee benefit trust, collective investment fund, retirement plan administration, actuarial, VEBA/HRA, and health and welfare consulting services. The All Other segment is comprised of; (a) wealth management services including trust services provided by the personal trust unit within the Bank, broker-dealer and investment advisory services provided by Community Investment Services, Inc. ("CISI"), OWM, and the Carta Group, Inc., as well as asset management provided by Nottingham Advisors, Inc., and (b) full-service insurance, risk management and employee benefit services provided by OneGroup and CBNA Insurance. The accounting policies used in the disclosure of business segments are the same as those described in the summary of significant accounting policies (See Note A, Summary of Significant Accounting Policies Information about reportable segments and reconciliation of the information to the consolidated financial statements follows: (000's omitted) Banking Employee Benefit Services All Other Eliminations Consolidated Total Three Months Ended June 30, 2016 Net interest income $ 68,220 $ 38 $ 48 $ 0 $ 68,306 Provision for loan losses 2,305 0 0 0 2,305 Noninterest revenues 16,594 12,067 10,706 (595 ) 38,772 Amortization of intangible assets 691 114 598 0 1,403 Other operating expenses 47,615 9,432 8,501 (595 ) 64,953 Income before income taxes $ 34,203 $ 2,559 $ 1,655 $ 0 $ 38,417 Assets $ 8,675,329 $ 34,814 $ 68,945 $ (36,977 ) $ 8,742,111 Goodwill $ 440,870 $ 8,018 $ 16,254 $ 0 $ 465,142 Three Months Ended June 30, 2015 Net interest income $ 61,165 $ 35 $ 28 $ 0 $ 61,228 Provision for loan losses 591 0 0 0 591 Noninterest revenues 14,009 11,606 4,576 (472 ) 29,719 Amortization of intangible assets 709 133 38 0 880 Other operating expenses 43,393 8,957 3,290 (472 ) 55,168 Income before income taxes $ 30,481 $ 2,551 $ 1,276 $ 0 $ 34,308 Assets $ 7,882,898 $ 33,609 $ 17,047 $ (24,783 ) $ 7,908,771 Goodwill $ 364,495 $ 8,019 $ 2,660 $ 0 $ 375,174 Six Months Ended June 30, 2016 Net interest income $ 135,019 $ 77 $ 91 $ 0 $ 135,187 Provision for loan losses 3,646 0 0 0 3,646 Noninterest revenues 31,907 24,457 21,850 (1,161 ) 77,053 Amortization of intangible assets 1,410 230 1,205 0 2,845 Other operating expenses 96,145 18,879 17,317 (1,161 ) 131,180 Income before income taxes $ 65,725 $ 5,425 $ 3,419 $ 0 $ 74,569 Six Months Ended June 30, 2015 Net interest income $ 120,948 $ 65 $ 55 $ 0 $ 121,068 Provision for loan losses 1,214 0 0 0 1,214 Noninterest revenues 27,534 22,959 9,208 (936 ) 58,765 Amortization of intangible assets 1,448 266 85 0 1,799 Other operating expenses 87,212 17,408 6,513 (936 ) 110,197 Income before income taxes $ 58,608 $ 5,350 $ 2,665 $ 0 $ 66,623 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
ACCOUNTING POLICIES [Abstract] | |
Acquired Loans | Acquired Loans Acquired loans are initially recorded at their acquisition date fair values. The carryover of allowance for loan losses is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. Fair values for acquired loans are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate. Acquired Impaired Loans Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments are accounted for as impaired loans under Accounting Standards Codification ("ASC") 310-30. The excess of undiscounted cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loans using the interest method. The difference between contractually required payments at acquisition and the undiscounted cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses and other contractually required payments that the Company does not expect to collect. Subsequent decreases in expected cash flows are recognized as impairments through a charge to the provision for credit losses resulting in an increase in the allowance for loan losses. Subsequent improvements in expected cash flows result in a recovery of previously recorded allowance for loan losses or a reversal of a corresponding amount of the non-accretable discount, which the Company then reclassifies as an accretable discount that is recognized into interest income over the remaining life of the loans using the interest method. Acquired loans that met the criteria for non-accrual of interest prior to acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loans to be non-accrual or non-performing and may accrue interest on these loans, including the impact of any accretable discount. Acquired Non-impaired Loans Acquired loans that do not meet the requirements under ASC 310-30 are considered acquired non-impaired loans. The difference between the acquisition date fair value and the outstanding balance represents the fair value adjustment for a loan and includes both credit and interest rate considerations. Fair value adjustments may be discounts (or premiums) to a loan's cost basis and are accreted (or amortized) to net interest income (or expense) over the loan's remaining life in accordance with ASC 310-20. Fair value adjustments for revolving loans are accreted (or amortized) using a straight line method. Term loans are accreted (or amortized) using the constant effective yield method. Subsequent to the purchase date, the methods used to estimate the allowance for loan losses for the acquired non-impaired loans are consistent with the policy described below. However, the Company compares the net realizable value of the loans to the carrying value, for loans collectively evaluated for impairment. The carrying value represents the net of the loan's unpaid principal balance and the remaining purchase discount (or premium) that has yet to be accreted into interest income. When the carrying value exceeds the net realizable value, an allowance for loan loss is recognized. |
Allowance for Loan Losses | Allowance for Loan Losses Management continually evaluates the credit quality of the Company's loan portfolio, and performs a formal review of the adequacy of the allowance for loan losses on a quarterly basis. The allowance reflects management's best estimate of probable losses inherent in the loan portfolio. Determination of the allowance is subjective in nature and requires significant estimates. The Company's allowance methodology consists of two broad components - general and specific loan loss allocations. The general loan loss allocation is composed of two calculations that are computed on five main loan segments: business lending; consumer direct; consumer indirect; home equity; and consumer mortgage. The first calculation is quantitative and determines an allowance level based on the latest 36 months of historical net charge-off data for each loan class (commercial loans exclude balances with specific loan loss allocations). The second calculation is qualitative and takes into consideration eight qualitative environmental factors: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards, and other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. A component of the qualitative calculation is the unallocated allowance for loan loss. The qualitative and quantitative calculations are added together to determine the general loan loss allocation. The specific loan loss allocation relates to individual commercial loans that are both greater than $0.5 million and in a nonaccruing status with respect to interest. Specific loan losses are based on discounted estimated cash flows, including any cash flows resulting from the conversion of collateral or collateral shortfalls. The allowance levels computed from the specific and general loan loss allocation methods are combined with unallocated allowances and allowances needed for acquired loans to derive the total required allowance for loan losses to be reflected on the Consolidated Statement of Condition. Loan losses are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for loan losses is charged to operations based on management's periodic evaluation of factors previously mentioned. |
Investment Securities | Investment Securities The Company can classify its investments in debt and equity securities as held-to-maturity, available-for-sale, or trading. Held-to-maturity securities are those for which the Company has the positive intent and ability to hold until maturity, and are reported at cost, which is adjusted for amortization of premiums and accretion of discounts. Securities classified as available-for-sale are reported at fair value with net unrealized gains and losses reflected as a separate component of shareholders' equity, net of applicable income taxes. None of the Company's investment securities have been classified as trading securities at June 30, 2016. Certain equity securities are stated at cost and include restricted stock of the Federal Reserve Bank of New York ("Federal Reserve") and Federal Home Loan Bank of New York ("FHLB"). Fair values for investment securities are based upon quoted market prices, where available. If quoted market prices are not available, fair values are based upon quoted market prices of comparable instruments, or a discounted cash flow model using market estimates of interest rates and volatility. The Company conducts an assessment of all securities in an unrealized loss An OTTI loss must be recognized for a debt security in an unrealized loss position if there is intent to sell the security or it is more likely than not the Company will be required to sell the security prior to recovery of its amortized cost basis. In this situation, the amount of loss recognized in income is equal to the difference between the fair value and the amortized cost basis of the security. Even if management does not have the intent, and it is not more likely than not that the Company will be required to sell the securities, an evaluation of the expected cash flows to be received is performed to determine if a credit loss has occurred. For debt securities, a critical component of the evaluation for OTTI is the identification of credit-impaired securities, where the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security. In the event of a credit loss, only the amount of impairment associated with the credit loss would be recognized in income. The portion of the unrealized loss relating to other factors, such as liquidity conditions in the market or changes in market interest rates, is recorded in accumulated other comprehensive loss. Equity securities are also evaluated to determine whether the unrealized loss is expected to be recoverable based on whether evidence exists to support a realizable value equal to or greater than the amortized cost basis. If it is probable that the amortized cost basis will not be recovered, taking into consideration the estimated recovery period and the ability to hold the equity security until recovery, OTTI is recognized in earnings equal to the difference between the fair value and the amortized cost basis of the security. The specific identification method is used in determining the realized gains and losses on sales of investment securities and OTTI charges. Premiums and discounts on securities are amortized and accreted, respectively, on the interest method basis over the period to maturity or estimated life of the related security. Purchases and sales of securities are recognized on a trade date basis. |
Intangible Assets | Intangible Assets Intangible assets include core deposit intangibles, customer relationship intangibles and goodwill arising from acquisitions. Core deposit intangibles and customer relationship intangibles are amortized on either an accelerated or straight-line basis over periods ranging from seven to 20 years. The initial and ongoing carrying value of goodwill and other intangible assets is based upon discounted cash flow modeling techniques that require management to make estimates regarding the amount and timing of expected future cash flows. It also requires use of a discount rate that reflects the current return requirements of the market in relation to present risk-free interest rates, required equity market premiums, peer volatility indicators, and company-specific risk indicators. The Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. The implied fair value of a reporting unit's goodwill is compared to its carrying amount and the impairment loss is measured by the excess of the carrying value over fair value. The fair value of each reporting unit is compared to the carrying amount of that reporting unit in order to determine if impairment is indicated. |
Retirement Benefits | Retirement Benefits The Company provides defined benefit pension benefits to eligible employees and post-retirement health and life insurance benefits to certain eligible retirees. The Company also provides deferred compensation and supplemental executive retirement plans for selected current and former employees, officers, and directors. Expense under these plans is charged to current operations and consists of several components of net periodic benefit cost based on various actuarial assumptions regarding future experience under the plans, including discount rate, rate of future compensation increases, and expected return on plan assets. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In January 2016, the FASB issued ASU 2016-1, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The Company is currently evaluating the effect the guidance will have on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Topic 840, Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
ACQUISITIONS [Abstract] | |
Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed after considering the measurement period adjustments described above: (000s omitted) 2016 2015 Consideration paid : Cash $ 575 $ 56,266 Community Bank System, Inc. common stock 0 102,202 Total net consideration paid 575 158,468 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 0 81,772 Investment securities 0 225,729 Loans 0 399,422 Premises and equipment 0 22,212 Accrued interest receivable 0 1,133 Other assets 0 26,529 Core deposit intangibles 0 2,570 Other intangibles 288 9,994 Deposits 0 (699,241 ) Other liabilities 0 (1,333 ) Total identifiable assets, net 288 68,787 Goodwill $ 287 $ 89,681 |
Summary of Loans Acquired | The following is a summary of the loans acquired from Oneida at the date of acquisition: Acquired Acquired Total Impaired Non-impaired Acquired (000s omitted) Loans Loans Loans Contractually required principal and interest at acquisition $ 5,138 $ 484,937 $ 490,075 Contractual cash flows not expected to be collected (1,977 ) (4,833 ) (6,810 ) Expected cash flows at acquisition 3,161 480,104 483,265 Interest component of expected cash flows (341 ) (83,502 ) (83,843 ) Fair value of acquired loans $ 2,820 $ 396,602 $ 399,422 |
Pro Forma Financial Information | Acquisition-related expenses totaling $0.4 million and $0.8 million are excluded from the pro forma information for the three and six months ended June 30, 2015, respectively. (000's omitted) Pro Forma (Unaudited) Three Months Ended June 30, 2015 Pro Forma (Unaudited) Six Months Ended June 30, 2015 Total revenue, net of interest expense $ 104,069 $ 207,010 Net income 24,770 48,501 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
INVESTMENT SECURITIES [Abstract] | |
Amortized Cost and Estimated Fair Value of Investment Securities | The amortized cost and estimated fair value of investment securities as of June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 December 31, 2015 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair (000's omitted) Cost Gains Losses Value Cost Gains Losses Value Available-for-Sale Portfolio: U.S. Treasury and agency securities $ 1,871,049 $ 121,608 $ 0 $ 1,992,657 $ 1,866,819 $ 35,186 $ 2,027 $ 1,899,978 Obligations of state and political subdivisions 611,129 34,360 1 645,488 640,455 26,487 59 666,883 Government agency mortgage-backed securities 215,191 8,235 287 223,139 205,220 6,906 1,261 210,865 Corporate debt securities 16,606 54 0 16,660 16,672 66 58 16,680 Government agency collateralized mortgage obligations 11,006 496 0 11,502 12,862 446 0 13,308 Marketable equity securities 251 187 21 417 250 163 14 399 Total available-for-sale portfolio $ 2,725,232 $ 164,940 $ 309 $ 2,889,863 $ 2,742,278 $ 69,254 $ 3,419 $ 2,808,113 Other Securities: Federal Home Loan Bank common stock $ 17,732 $ 17,732 $ 19,317 $ 19,317 Federal Reserve Bank common stock 19,780 19,780 16,050 16,050 Other equity securities 3,926 3,926 4,460 4,460 Total other securities $ 41,438 $ 41,438 $ 39,827 $ 39,827 |
Summary of Investment Securities That Have Been in a Continuous Unrealized Loss Position for Less Than or Greater Than Twelve Months | A summary of investment securities that have been in a continuous unrealized loss position is as follows: As of June 30, 2016 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (000's omitted) # Value Losses # Value Losses # Value Losses Available-for-Sale Portfolio: Obligations of state and political subdivisions 3 $ 842 $ 1 0 $ 0 $ 0 3 $ 842 $ 1 Government agency mortgage-backed securities 5 1,128 9 14 23,688 278 19 24,816 287 Corporate debt securities 1 3,000 0 0 0 0 1 3,000 0 Government agency collateralized mortgage obligations 0 0 0 2 3 0 2 3 0 Marketable equity securities 1 79 21 0 0 0 1 79 21 Total available-for-sale investment portfolio 10 $ 5,049 $ 31 16 $ 23,691 $ 278 26 $ 28,740 $ 309 As of December 31, 2015 Less than 12 Months 12 Months or Longer Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (000's omitted) # Value Losses # Value Losses # Value Losses Available-for-Sale Portfolio: U.S. Treasury and agency obligations 9 $ 353,844 $ 2,027 0 $ 0 $ 0 9 $ 353,844 $ 2,027 Obligations of state and political subdivisions 18 8,804 34 2 735 25 20 9,539 59 Government agency mortgage-backed securities 17 24,178 161 19 30,103 1,100 36 54,281 1,261 Corporate debt securities 1 3,024 0 1 2,710 58 2 5,734 58 Government agency collateralized mortgage obligations 0 0 0 2 3 0 2 3 0 Marketable equity securities 1 87 14 0 0 0 1 87 14 Total available-for-sale investment portfolio 46 $ 389,937 $ 2,236 24 $ 33,551 $ 1,183 70 $ 423,488 $ 3,419 |
Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of debt securities at June 30, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-Sale Amortized Fair (000's omitted) Cost Value Due in one year or less $ 46,761 $ 47,048 Due after one through five years 775,417 815,276 Due after five years through ten years 1,465,017 1,564,831 Due after ten years 211,589 227,650 Subtotal 2,498,784 2,654,805 Government agency mortgage-backed securities 215,191 223,139 Government agency collateralized mortgage obligations 11,006 11,502 Total $ 2,724,981 $ 2,889,446 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Loans Receivable, Net | The balances of these classes are summarized as follows: June 30, December 31, (000's omitted) 2016 2015 Consumer mortgage $ 1,779,295 $ 1,769,754 Business lending 1,536,546 1,497,271 Consumer indirect 993,132 935,760 Consumer direct 195,959 195,076 Home equity 399,870 403,514 Gross loans, including deferred origination costs 4,904,802 4,801,375 Allowance for loan losses (46,526 ) (45,401 ) Loans, net of allowance for loan losses $ 4,858,276 $ 4,755,974 |
Schedule of Accretable Discount Related to Credit Impaired Acquired Loans | The outstanding balance related to credit impaired acquired loans was $8.1 million and $8.5 million at June 30, 2016 and December 31, 2015, respectively. The changes in the accretable discount related to the credit impaired acquired loans are as follows: (000's omitted) Balance at December 31, 2015 $ 810 Accretion recognized, year-to-date (252 ) Net reclassification to accretable from non-accretable 116 Balance at June 30, 2016 $ 674 |
Aged Analysis of the Company's Past Due Loans by Class | The following is an aged analysis of the Company's past due loans, by class as of June 30, 2016: Legacy Loans Past Due 90+ Days Past 30 – 89 Due and Total (000's omitted) Days Still Accruing Nonaccrual Past Due Current Total Loans Consumer mortgage $ 9,857 $ 1,018 $ 11,621 $ 22,496 $ 1,581,063 $ 1,603,559 Business lending 5,660 342 4,714 10,716 1,279,860 1,290,576 Consumer indirect 9,356 142 0 9,498 946,646 956,144 Consumer direct 1,179 26 0 1,205 182,127 183,332 Home equity 815 45 1,924 2,784 303,665 306,449 Total $ 26,867 $ 1,573 $ 18,259 $ 46,699 $ 4,293,361 $ 4,340,060 Acquired Loans Past Due 90+ Days Past 30 – 89 Due and Total Acquired (000's omitted) Days Still Accruing Nonaccrual Past Due Impaired (1) Current Total Loans Consumer mortgage $ 1,565 $ 270 $ 2,223 $ 4,058 $ 0 $ 171,678 $ 175,736 Business lending 340 0 1,260 1,600 7,008 237,362 245,970 Consumer indirect 168 0 0 168 0 36,820 36,988 Consumer direct 84 0 0 84 0 12,543 12,627 Home equity 684 66 408 1,158 0 92,263 93,421 Total $ 2,841 $ 336 $ 3,891 $ 7,068 $ 7,008 $ 550,666 $ 564,742 (1) Acquired impaired loans were not The following is an aged analysis of the Company's past due loans by class as of December 31, 2015: Legacy Loans Past Due 90+ Days Past 30 – 89 Due and Total (000's omitted) Days Still Accruing Nonaccrual Past Due Current Total Loans Consumer mortgage $ 10,482 $ 1,411 $ 11,394 $ 23,287 $ 1,558,171 $ 1,581,458 Business lending 4,442 126 5,381 9,949 1,223,679 1,233,628 Consumer indirect 11,575 102 0 11,677 878,662 890,339 Consumer direct 1,414 51 1 1,466 176,585 178,051 Home equity 1,093 111 2,029 3,233 297,012 300,245 Total $ 29,006 $ 1,801 $ 18,805 $ 49,612 $ 4,134,109 $ 4,183,721 Acquired Loans Past Due 90+ Days Past 30 – 89 Due and Total Acquired (000's omitted) Days Still Accruing Nonaccrual Past Due Impaired (1) Current Total Loans Consumer mortgage $ 1,373 $ 394 $ 1,396 $ 3,163 $ 0 $ 185,133 $ 188,296 Business lending 535 0 1,186 1,721 7,299 254,623 263,643 Consumer indirect 245 0 0 245 0 45,176 45,421 Consumer direct 140 0 14 154 0 16,871 17,025 Home equity 636 0 327 963 0 102,306 103,269 Total $ 2,929 $ 394 $ 2,923 $ 6,246 $ 7,299 $ 604,109 $ 617,654 (1) Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans. |
Summary of Non-business Impaired Loans | All loan classes are collectively evaluated for impairment except business lending, as described in Note C. A summary of individually evaluated impaired loans as of June 30, 2016 and December 31, 2015 follows: June 30, December 31, (000's omitted) 2016 2015 Loans with allowance allocation $ 1,187 $ 0 Loans without allowance allocation 601 2,376 Unpaid principal balance 1,788 2,376 Contractual balance 3,401 3,419 Allowance for loan loss allocated 255 0 |
Troubled Debt Restructurings on Financing Receivables | Information regarding TDRs as of June 30, 2016 and December 31, 2015 is as follows: June 30, 2016 December 31, 2015 (000's omitted) Nonaccrual Accruing Total Nonaccrual Accruing Total # Amount # Amount # Amount # Amount # Amount # Amount Consumer mortgage 43 $ 1,979 44 $ 2,227 87 $ 4,206 37 $ 1,472 54 $ 2,486 91 $ 3,958 Business lending 10 234 5 708 15 942 8 217 6 737 14 954 Consumer indirect 0 0 83 806 83 806 0 0 77 691 77 691 Consumer direct 0 0 10 71 10 71 0 0 32 37 32 37 Home equity 14 240 12 261 26 501 10 203 14 301 24 504 Total 67 $ 2,453 154 $ 4,073 221 $ 6,526 55 $ 1,892 183 $ 4,252 238 $ 6,144 The following table presents information related to loans modified in a TDR during the three months and six months ended June 30, 2016 and 2015. Of the loans noted in the table below, all loans for the three months and six months ended June 30, 2016 and 2015 were modified due to a Chapter 7 bankruptcy as described previously. The financial effects of these restructurings were immaterial. Three Months Ended June 30, 2016 Three Months Ended June 30, 2015 (000's omitted) Number of loans modified Outstanding Balance Number of loans modified Outstanding Balance Consumer mortgage 5 $ 437 2 $ 61 Business lending 2 51 0 0 Consumer indirect 9 118 6 84 Consumer direct 1 52 1 1 Home equity 3 73 0 0 Total 20 $ 731 9 $ 146 Six Months Ended June 30, 2016 Six Months Ended June 30, 2015 (000's omitted) Number of loans modified Outstanding Balance Number of loans modified Outstanding Balance Consumer mortgage 8 $ 652 6 $ 280 Business lending 2 51 0 0 Consumer indirect 20 331 12 163 Consumer direct 1 52 2 4 Home equity 4 73 1 14 Total 35 $ 1,159 21 $ 461 |
Schedule of Allowance for Loan Losses by Class | The allowance for loan losses is general in nature and is available to absorb losses from any loan type despite the analysis below. The following presents by class the activity in the allowance for loan losses: Three Months Ended Consumer Business Consumer Consumer Home Acquired (000's omitted) Mortgage Lending Indirect Direct Equity Unallocated Impaired Total Beginning balance $ 10,148 $ 16,695 $ 12,334 $ 2,875 $ 2,580 $ 879 $ 85 $ 45,596 Charge-offs (156 ) (770 ) (1,545 ) (389 ) (80 ) 0 (26 ) (2,966 ) Recoveries 38 156 1,140 238 19 0 0 1,591 Provision (177 ) 868 1,286 296 (19 ) (29 ) 80 2,305 Ending balance $ 9,853 $ 16,949 $ 13,215 $ 3,020 $ 2,500 $ 850 $ 139 $ 46,526 Three Months Ended Consumer Business Consumer Consumer Home Acquired (000's omitted) Mortgage Lending Indirect Direct Equity Unallocated Impaired Total Beginning balance $ 10,233 $ 15,405 $ 11,246 $ 2,879 $ 2,663 $ 2,383 $ 196 $ 45,005 Charge-offs (199 ) (299 ) (1,397 ) (294 ) (56 ) 0 (43 ) (2,288 ) Recoveries 45 527 1,184 199 19 0 0 1,974 Provision 113 (280 ) 569 207 51 (9 ) (60 ) 591 Ending balance $ 10,192 $ 15,353 $ 11,602 $ 2,991 $ 2,677 $ 2,374 $ 93 $ 45,282 Six Months Ended Consumer Business Consumer Consumer Home Acquired (000's omitted) Mortgage Lending Indirect Direct Equity Unallocated Impaired Total Beginning balance $ 10,198 $ 15,749 $ 12,422 $ 2,997 $ 2,666 $ 1,201 $ 168 $ 45,401 Charge-offs (243 ) (979 ) (3,401 ) (852 ) (137 ) 0 (26 ) (5,638 ) Recoveries 83 291 2,255 460 28 0 0 3,117 Provision (185 ) 1,888 1,939 415 (57 ) (351 ) (3 ) 3,646 Ending balance $ 9,853 $ 16,949 $ 13,215 $ 3,020 $ 2,500 $ 850 $ 139 $ 46,526 Six Months Ended Consumer Business Consumer Consumer Home Acquired (000's omitted) Mortgage Lending Indirect Direct Equity Unallocated Impaired Total Beginning balance $ 10,286 $ 15,787 $ 11,544 $ 3,083 $ 2,701 $ 1,767 $ 173 $ 45,341 Charge-offs (642 ) (433 ) (2,823 ) (639 ) (122 ) 0 (43 ) (4,702 ) Recoveries 66 608 2,337 392 26 0 0 3,429 Provision 482 (609 ) 544 155 72 607 (37 ) 1,214 Ending balance $ 10,192 $ 15,353 $ 11,602 $ 2,991 $ 2,677 $ 2,374 $ 93 $ 45,282 |
Business Lending [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Loans by Credit Quality Indicator | The following table shows the amount of business lending loans by credit quality category: June 30, 2016 December 31, 2015 (000's omitted) Legacy Acquired Total Legacy Acquired Total Pass $ 1,082,841 $ 186,526 $ 1,269,367 $ 1,048,364 $ 219,374 $ 1,267,738 Special mention 135,172 31,724 166,896 124,768 20,007 144,775 Classified 72,283 20,712 92,995 60,181 16,963 77,144 Doubtful 280 0 280 315 0 315 Acquired impaired 0 7,008 7,008 0 7,299 7,299 Total $ 1,290,576 $ 245,970 $ 1,536,546 $ 1,233,628 $ 263,643 $ 1,497,271 |
All Other Loans [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Loans by Credit Quality Indicator | The following table details the balances in all other loan categories at June 30, 2016: Legacy Loans Consumer Consumer Consumer Home (000's omitted) Mortgage Indirect Direct Equity Total Performing $ 1,590,920 $ 956,002 $ 183,306 $ 304,480 $ 3,034,708 Nonperforming 12,639 142 26 1,969 14,776 Total $ 1,603,559 $ 956,144 $ 183,332 $ 306,449 $ 3,049,484 Acquired Loans Consumer Consumer Consumer Home (000's omitted) Mortgage Indirect Direct Equity Total Performing $ 173,243 $ 36,988 $ 12,627 $ 92,947 $ 315,805 Nonperforming 2,493 0 0 474 2,967 Total $ 175,736 $ 36,988 $ 12,627 $ 93,421 $ 318,772 The following table details the balances in all other loan categories at December 31, 2015: Legacy Loans Consumer Consumer Consumer Home (000's omitted) Mortgage Indirect Direct Equity Total Performing $ 1,568,653 $ 890,237 $ 177,999 $ 298,105 $ 2,934,994 Nonperforming 12,805 102 52 2,140 15,099 Total $ 1,581,458 $ 890,339 $ 178,051 $ 300,245 $ 2,950,093 Acquired Loans Consumer Consumer Consumer Home (000's omitted) Mortgage Indirect Direct Equity Total Performing $ 186,506 $ 45,421 $ 17,011 $ 102,942 $ 351,880 Nonperforming 1,790 0 14 327 2,131 Total $ 188,296 $ 45,421 $ 17,025 $ 103,269 $ 354,011 |
GOODWILL AND IDENTIFIABLE INT27
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Identifiable Intangible Assets | The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows: June 30, 2016 December 31, 2015 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying (000's omitted) Amount Amortization Amount Amount Amortization Amount Amortizing intangible assets: Core deposit intangibles $ 39,688 $ (31,309 ) $ 8,379 $ 39,688 $ (29,899 ) $ 9,789 Other intangibles 17,852 (7,895 ) 9,957 17,565 (6,460 ) 11,105 Total amortizing intangibles $ 57,540 $ (39,204 ) $ 18,336 $ 57,253 $ (36,359 ) $ 20,894 |
Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding fiscal years ended December 31 is as follows: (000's omitted) Jul - Dec 2016 $ 2,634 2017 4,412 2018 3,566 2019 2,782 2020 2,119 Thereafter 2,823 Total $ 18,336 |
Components of Goodwill | Shown below are the components of the Company's goodwill at December 31, 2015 and June 30, 2016: (000's omitted) December 31, 2015 Activity June 30, 2016 Goodwill $ 468,076 $ 1,890 $ 469,966 Accumulated impairment (4,824 ) 0 (4,824 ) Goodwill, net $ 463,252 $ 1,890 $ 465,142 |
MANDATORILY REDEEMABLE PREFER28
MANDATORILY REDEEMABLE PREFERRED SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
MANDATORILY REDEEMABLE PREFERRED SECURITIES [Abstract] | |
Terms of Preferred Securities for Each Trust | The terms of the preferred securities of each trust are as follows: Issuance Par Maturity Trust Date Amount Interest Rate Date Call Price III 7/31/2001 $24.5 million 3 month LIBOR plus 3.58% (4.22%) 7/31/2031 Par IV 12/8/2006 $75 million 3 month LIBOR plus 1.65% (2.30%) 12/15/2036 Par |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
BENEFIT PLANS [Abstract] | |
Net Periodic Benefit Cost | The net periodic benefit cost for the three and six months ended June 30, 2016 and 2015 is as follows: Pension Benefits Post-retirement Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (000's omitted) 2016 2015 2016 2015 2016 2015 2016 2015 Service cost $ 1,027 $ 831 $ 2,052 $ 1,662 $ 0 $ 0 $ 0 $ 0 Interest cost 1,406 1,375 2,812 2,749 20 22 41 43 Expected return on plan assets (2,961 ) (3,042 ) (5,921 ) (6,085 ) 0 0 0 0 Amortization of unrecognized net loss 377 366 754 733 (1 ) (3 ) (3 ) (6 ) Amortization of prior service cost 11 2 22 4 (45 ) (45 ) (89 ) (89 ) Net periodic benefit cost $ (140 ) $ (468 ) $ (281 ) $ (937 ) $ (26 ) $ (26 ) $ (51 ) $ (52 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
EARNINGS PER SHARE [Abstract] | |
Reconciliation of Basic to Diluted Earnings per Share | The following is a reconciliation of basic to diluted earnings per share for the three and six months ended June 30 , 2016 Three Months Ended Six Months Ended June 30, June 30, (000's omitted, except per share data) 2016 2015 2016 2015 Net income $ 25,857 $ 23,840 $ 50,260 $ 46,137 Income attributable to unvested stock-based compensation awards (151 ) (99 ) (242 ) (177 ) Income available to common shareholders $ 25,706 $ 23,741 $ 50,018 $ 45,960 Weighted-average common shares outstanding – basic 44,021 40,690 43,942 40,674 Basic earnings per share $ 0.58 $ 0.58 $ 1.14 $ 1.13 Net income $ 25,857 $ 23,840 $ 50,260 $ 46,137 Income attributable to unvested stock-based compensation awards (151 ) (99 ) (242 ) (177 ) Income available to common shareholders $ 25,706 $ 23,741 $ 50,018 $ 45,960 Weighted-average common shares outstanding – basic 44,021 40,690 43,942 40,674 Assumed exercise of stock options 357 404 347 405 Weighted-average common shares outstanding – diluted 44,378 41,094 44,289 41,079 Diluted earnings per share $ 0.58 $ 0.58 $ 1.13 $ 1.12 |
COMMITMENTS, CONTINGENT LIABI31
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS [Abstract] | |
Off-Balance-Sheet Financial Instruments Contract Amounts | The contract amounts of commitments and contingencies are as follows: (000's omitted) June 30, 2016 December 31, 2015 Commitments to extend credit $ 725,561 $ 811,442 Standby letters of credit 19,713 19,053 Total $ 745,274 $ 830,495 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
FAIR VALUE [Abstract] | |
Summary of Fair Value Measured on a Recurring Basis | A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis. There were no transfers between any of the levels for the periods presented. June 30, 2016 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,992,657 $ 0 $ 0 $ 1,992,657 Obligations of state and political subdivisions 0 645,488 0 645,488 Government agency mortgage-backed securities 0 223,139 0 223,139 Corporate debt securities 0 16,660 0 16,660 Government agency collateralized mortgage obligations 0 11,502 0 11,502 Marketable equity securities 417 0 0 417 Total available-for-sale investment securities 1,993,074 896,789 0 2,889,863 Mortgage loans held for sale 0 514 0 514 Commitments to originate real estate loans for sale 0 0 361 361 Forward sales commitments 0 (78 ) 0 (78 ) Total $ 1,993,074 $ 897,225 $ 361 $ 2,890,660 December 31, 2015 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Available-for-sale investment securities: U.S. Treasury and agency securities $ 1,899,978 $ 0 $ 0 $ 1,899,978 Obligations of state and political subdivisions 0 666,883 0 666,883 Government agency mortgage-backed securities 0 210,865 0 210,865 Corporate debt securities 0 16,680 0 16,680 Government agency collateralized mortgage obligations 0 13,308 0 13,308 Marketable equity securities 399 0 0 399 Total available-for-sale investment securities 1,900,377 907,736 0 2,808,113 Mortgage loans held for sale 0 932 0 932 Commitments to originate real estate loans for sale 0 0 117 117 Forward sales commitments 0 (37 ) 0 (37 ) Total $ 1,900,377 $ 908,631 $ 117 $ 2,809,125 |
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets measured at fair value on a recurring basis are summarized in the following tables: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 (000's omitted) Commitments to Originate Real Estate Loans for Sale Commitments to Originate Real Estate Loans for Sale Commitments to Originate Real Estate Loans for Sale Commitments to Originate Real Estate Loans for Sale Beginning balance $ 282 $ 152 $ 117 $ 185 Total losses included in earnings (1) (282 ) (152 ) (399 ) (337 ) Commitments to originate real estate loans held for sale, net 361 195 643 347 Ending balance $ 361 $ 195 $ 361 $ 195 (1) Amounts included in earnings associated with the commitments to originate real estate loans for sale are reported as a component of other banking services in the Consolidated Statement of Income |
Assets and Liabilities Measured on a Non-Recurring Basis | The fair value information of assets and liabilities measured on a non-recurring basis presented below is not as of the period-end, but rather as of the date the fair value adjustment was recorded closest to the date presented. June 30, 2016 December 31, 2015 (000's omitted) Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Impaired loans $ 0 $ 0 $ 932 $ 932 $ 0 $ 0 $ 1,765 $ 1,765 Mortgage servicing rights 0 0 638 638 0 0 0 0 Other real estate owned 0 0 1,726 1,726 0 0 2,088 2,088 Total $ 0 $ 0 $ 3,296 $ 3,296 $ 0 $ 0 $ 3,853 $ 3,853 |
Significant Unobservable Inputs, Fair Value Valuation Techniques | The significant unobservable inputs used in the determination of fair value of assets classified as Level 3 on a recurring or non-recurring basis are as follows: (000's omitted) Fair Value at June 30, 2016 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Range (Weighted Average) Other real estate owned $ 1,726 Fair Value of Collateral Estimated cost of disposal/market adjustment 6 . %) Impaired loans 932 Fair Value of Collateral Estimated cost of disposal/market adjustment 9.0% - 16.9% (12.8 %) Commitments to originate real estate loans for sale 361 Discounted cash flow Embedded servicing value 1 % Mortgage servicing rights 638 Discounted cash flow Weighted average constant prepayment rate 11.8 % Weighted average discount rate 2.24 % Adequate compensation $7/loan (000's omitted) Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs Significant Unobservable Input Range (Weighted Average) Other real estate owned $ 2,088 Fair value of collateral Estimated cost of disposal/market adjustment 5.3% - 74.0% (27.7 %) Impaired loans 1,765 Fair value of collateral Estimated cost of disposal/market adjustment 9.0% - 20.0% (17.9 %) Commitments to originate real estate loans for sale 117 Discounted cash flow Embedded servicing value 1 % |
Carrying Amounts and Estimated Fair Values of Other Financial Instruments | The carrying amounts and estimated fair values of the Company's other financial instruments that are not accounted for at fair value at June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 December 31, 2015 Carrying Fair Carrying Fair (000's omitted) Value Value Value Value Financial assets: Net loans $ 4,858,276 $ 4,928,960 $ 4,755,974 $ 4,808,856 Financial liabilities: Deposits 6,957,854 6,956,075 6,873,474 6,871,098 Borrowings 267,600 267,600 301,300 301,300 Subordinated debt held by unconsolidated subsidiary trusts 102,158 80,108 102,146 84,680 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
SEGMENT INFORMATION [Abstract] | |
Schedule of Segment Reporting Information by Segment | Information about reportable segments and reconciliation of the information to the consolidated financial statements follows: (000's omitted) Banking Employee Benefit Services All Other Eliminations Consolidated Total Three Months Ended June 30, 2016 Net interest income $ 68,220 $ 38 $ 48 $ 0 $ 68,306 Provision for loan losses 2,305 0 0 0 2,305 Noninterest revenues 16,594 12,067 10,706 (595 ) 38,772 Amortization of intangible assets 691 114 598 0 1,403 Other operating expenses 47,615 9,432 8,501 (595 ) 64,953 Income before income taxes $ 34,203 $ 2,559 $ 1,655 $ 0 $ 38,417 Assets $ 8,675,329 $ 34,814 $ 68,945 $ (36,977 ) $ 8,742,111 Goodwill $ 440,870 $ 8,018 $ 16,254 $ 0 $ 465,142 Three Months Ended June 30, 2015 Net interest income $ 61,165 $ 35 $ 28 $ 0 $ 61,228 Provision for loan losses 591 0 0 0 591 Noninterest revenues 14,009 11,606 4,576 (472 ) 29,719 Amortization of intangible assets 709 133 38 0 880 Other operating expenses 43,393 8,957 3,290 (472 ) 55,168 Income before income taxes $ 30,481 $ 2,551 $ 1,276 $ 0 $ 34,308 Assets $ 7,882,898 $ 33,609 $ 17,047 $ (24,783 ) $ 7,908,771 Goodwill $ 364,495 $ 8,019 $ 2,660 $ 0 $ 375,174 Six Months Ended June 30, 2016 Net interest income $ 135,019 $ 77 $ 91 $ 0 $ 135,187 Provision for loan losses 3,646 0 0 0 3,646 Noninterest revenues 31,907 24,457 21,850 (1,161 ) 77,053 Amortization of intangible assets 1,410 230 1,205 0 2,845 Other operating expenses 96,145 18,879 17,317 (1,161 ) 131,180 Income before income taxes $ 65,725 $ 5,425 $ 3,419 $ 0 $ 74,569 Six Months Ended June 30, 2015 Net interest income $ 120,948 $ 65 $ 55 $ 0 $ 121,068 Provision for loan losses 1,214 0 0 0 1,214 Noninterest revenues 27,534 22,959 9,208 (936 ) 58,765 Amortization of intangible assets 1,448 266 85 0 1,799 Other operating expenses 87,212 17,408 6,513 (936 ) 110,197 Income before income taxes $ 58,608 $ 5,350 $ 2,665 $ 0 $ 66,623 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) shares in Thousands, $ in Thousands | Dec. 04, 2015USD ($)Branchshares | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | |||
Increase in goodwill as a result of fair value adjustment | $ 1,890 | ||
Oneida Financial Corp [Member] | |||
Business Acquisition [Line Items] | |||
Issuance of common shares (in shares) | shares | 2,380 | ||
Number of new branch locations included in acquisition or purchase agreement | Branch | 12 | ||
Assets acquired | $ 769,000 | ||
Decrease in other assets as a result of fair value adjustment | $ (900) | ||
Increase in other liabilities as a result of fair value adjustment | 700 | ||
Increase in goodwill as a result of fair value adjustment | $ 1,600 |
ACQUISITIONS, Estimated Fair Va
ACQUISITIONS, Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 04, 2016 | Dec. 04, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Consideration paid [Abstract] | |||||
Total net consideration paid | $ 575 | $ 0 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Goodwill | $ 465,142 | $ 375,174 | $ 463,252 | ||
WJL Agencies Inc [Member] | |||||
Consideration paid [Abstract] | |||||
Cash | $ 575 | ||||
Community Bank System, Inc. common stock | 0 | ||||
Total net consideration paid | 575 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Cash and cash equivalents | 0 | ||||
Investment securities | 0 | ||||
Loans | 0 | ||||
Premises and equipment | 0 | ||||
Accrued interest receivable | 0 | ||||
Other assets | 0 | ||||
Deposits | 0 | ||||
Other liabilities | 0 | ||||
Total identifiable assets, net | 288 | ||||
Goodwill | 287 | ||||
WJL Agencies Inc [Member] | Core Deposits [Member] | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Intangibles | 0 | ||||
WJL Agencies Inc [Member] | Other Intangibles [Member] | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Intangibles | $ 288 | ||||
Oneida Financial Corp [Member] | |||||
Consideration paid [Abstract] | |||||
Cash | $ 56,266 | ||||
Community Bank System, Inc. common stock | 102,202 | ||||
Total net consideration paid | 158,468 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Cash and cash equivalents | 81,772 | ||||
Investment securities | 225,729 | ||||
Loans | 399,422 | ||||
Premises and equipment | 22,212 | ||||
Accrued interest receivable | 1,133 | ||||
Other assets | 26,529 | ||||
Deposits | (699,241) | ||||
Other liabilities | (1,333) | ||||
Total identifiable assets, net | 68,787 | ||||
Goodwill | 89,681 | ||||
Oneida Financial Corp [Member] | Core Deposits [Member] | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Intangibles | 2,570 | ||||
Oneida Financial Corp [Member] | Other Intangibles [Member] | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract] | |||||
Intangibles | $ 9,994 |
ACQUISITIONS, Summary of Loans
ACQUISITIONS, Summary of Loans Acquired (Details) - Oneida Financial Corp [Member] $ in Thousands | Dec. 04, 2015USD ($) |
Summary of loans acquired [Abstract] | |
Contractually required principal and interest at acquisition | $ 490,075 |
Contractual cash flows not expected to be collected | (6,810) |
Expected cash flows at acquisition | 483,265 |
Interest component of expected cash flows | (83,843) |
Fair value of acquired loans | 399,422 |
Acquired Impaired Loans [Member] | |
Summary of loans acquired [Abstract] | |
Contractually required principal and interest at acquisition | 5,138 |
Contractual cash flows not expected to be collected | (1,977) |
Expected cash flows at acquisition | 3,161 |
Interest component of expected cash flows | (341) |
Fair value of acquired loans | 2,820 |
Acquired Non Impaired Loans [Member] | |
Summary of loans acquired [Abstract] | |
Contractually required principal and interest at acquisition | 484,937 |
Contractual cash flows not expected to be collected | (4,833) |
Expected cash flows at acquisition | 480,104 |
Interest component of expected cash flows | (83,502) |
Fair value of acquired loans | $ 396,602 |
ACQUISITIONS, Intangible Asset,
ACQUISITIONS, Intangible Asset, Goodwill and Acquisition-related Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of loans acquired [Abstract] | ||||
Merger and acquisition integration-related expenses | $ 263 | $ 361 | $ 340 | $ 756 |
Oneida Financial Corp [Member] | Core Deposits [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 8 years | |||
Oneida Financial Corp [Member] | Other Intangibles [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 8 years | |||
WJL Agencies Inc [Member] | Other Intangibles [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated useful life | 8 years |
ACQUISITIONS, Supplemental Pro
ACQUISITIONS, Supplemental Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | |
Supplemental Pro Forma Financial Information [Abstract] | |||
Acquisition-related expenses excluded from pro forma information | $ 400 | $ 800 | |
Minimum assets for changes in effective tax rate | $ 8,000,000 | ||
Total revenue, net of interest expense | 104,069 | 207,010 | |
Net income | $ 24,770 | $ 48,501 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)ComponentCalculationSegmentFactor | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Number of broad components used in allowance methodology | Component | 2 |
Number of calculations used for general loan loss allocation | Calculation | 2 |
Number of main loan segments | Segment | 5 |
Period of historical net charge-off data for each loan class used in determining allowance level | 36 months |
Number of qualitative environmental factors used in qualitative calculation for loan loss allocation | Factor | 8 |
Core Deposits [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset useful life (amortization period) | 7 years |
Core Deposits [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset useful life (amortization period) | 20 years |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset useful life (amortization period) | 7 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset useful life (amortization period) | 20 years |
Commercial Portfolio Segment [Member] | Minimum [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Threshold balance of loan individually evaluated for impairment | $ | $ 0.5 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-Sale Portfolio [Abstract] | ||
Amortized cost | $ 2,725,232 | $ 2,742,278 |
Gross unrealized gains | 164,940 | 69,254 |
Gross unrealized losses | 309 | 3,419 |
Fair value | 2,889,863 | 2,808,113 |
Available For Sale Debt Securities Amortized Cost Basis [Abstract] | ||
Amortized cost | 2,724,981 | |
Fair value | 2,889,446 | |
Other Securities [Abstract] | ||
Amortized cost | 41,438 | 39,827 |
Fair value | 41,438 | 39,827 |
U.S. Treasury and Agency Obligations [Member] | ||
Available For Sale Debt Securities Amortized Cost Basis [Abstract] | ||
Amortized cost | 1,871,049 | 1,866,819 |
Gross unrealized gains | 121,608 | 35,186 |
Gross unrealized losses | 0 | 2,027 |
Fair value | 1,992,657 | 1,899,978 |
Obligations of State and Political Subdivisions [Member] | ||
Available For Sale Debt Securities Amortized Cost Basis [Abstract] | ||
Amortized cost | 611,129 | 640,455 |
Gross unrealized gains | 34,360 | 26,487 |
Gross unrealized losses | 1 | 59 |
Fair value | 645,488 | 666,883 |
Government Agency Mortgage-Backed Securities [Member] | ||
Available For Sale Debt Securities Amortized Cost Basis [Abstract] | ||
Amortized cost | 215,191 | 205,220 |
Gross unrealized gains | 8,235 | 6,906 |
Gross unrealized losses | 287 | 1,261 |
Fair value | 223,139 | 210,865 |
Corporate Debt Securities [Member] | ||
Available For Sale Debt Securities Amortized Cost Basis [Abstract] | ||
Amortized cost | 16,606 | 16,672 |
Gross unrealized gains | 54 | 66 |
Gross unrealized losses | 0 | 58 |
Fair value | 16,660 | 16,680 |
Government Agency Collateralized Mortgage Obligations [Member] | ||
Available For Sale Debt Securities Amortized Cost Basis [Abstract] | ||
Amortized cost | 11,006 | 12,862 |
Gross unrealized gains | 496 | 446 |
Gross unrealized losses | 0 | 0 |
Fair value | 11,502 | 13,308 |
Marketable Equity Securities [Member] | ||
Available For Sale Equity Securities Amortized Cost Basis [Abstract] | ||
Amortized cost | 251 | 250 |
Gross unrealized gains | 187 | 163 |
Gross unrealized losses | 21 | 14 |
Fair value | 417 | 399 |
Federal Home Loan Bank Common Stock [Member] | ||
Other Securities [Abstract] | ||
Amortized cost | 17,732 | 19,317 |
Fair value | 17,732 | 19,317 |
Federal Reserve Bank Common Stock [Member] | ||
Other Securities [Abstract] | ||
Amortized cost | 19,780 | 16,050 |
Fair value | 19,780 | 16,050 |
Other Equity Securities [Member] | ||
Other Securities [Abstract] | ||
Amortized cost | 3,926 | 4,460 |
Fair value | $ 3,926 | $ 4,460 |
INVESTMENT SECURITIES, Investme
INVESTMENT SECURITIES, Investment Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2016USD ($)Position | Dec. 31, 2015USD ($)Position |
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | Position | 10 | 46 |
12 months or longer | Position | 16 | 24 |
Total | Position | 26 | 70 |
Available-for-Sale Portfolio in Unrealized Loss Positions, Fair Value [Abstract] | ||
Less than 12 months | $ 5,049 | $ 389,937 |
12 months or longer | 23,691 | 33,551 |
Total | 28,740 | 423,488 |
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 31 | 2,236 |
12 months or longer | 278 | 1,183 |
Total | $ 309 | $ 3,419 |
U.S. Treasury and Agency Obligations [Member] | ||
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | Position | 9 | |
12 months or longer | Position | 0 | |
Total | Position | 9 | |
Available-for-Sale Portfolio in Unrealized Loss Positions, Fair Value [Abstract] | ||
Less than 12 months | $ 353,844 | |
12 months or longer | 0 | |
Total | 353,844 | |
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 2,027 | |
12 months or longer | 0 | |
Total | $ 2,027 | |
Obligations of State and Political Subdivisions [Member] | ||
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | Position | 3 | 18 |
12 months or longer | Position | 0 | 2 |
Total | Position | 3 | 20 |
Available-for-Sale Portfolio in Unrealized Loss Positions, Fair Value [Abstract] | ||
Less than 12 months | $ 842 | $ 8,804 |
12 months or longer | 0 | 735 |
Total | 842 | 9,539 |
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 1 | 34 |
12 months or longer | 0 | 25 |
Total | $ 1 | $ 59 |
Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | Position | 5 | 17 |
12 months or longer | Position | 14 | 19 |
Total | Position | 19 | 36 |
Available-for-Sale Portfolio in Unrealized Loss Positions, Fair Value [Abstract] | ||
Less than 12 months | $ 1,128 | $ 24,178 |
12 months or longer | 23,688 | 30,103 |
Total | 24,816 | 54,281 |
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 9 | 161 |
12 months or longer | 278 | 1,100 |
Total | $ 287 | $ 1,261 |
Corporate Debt Securities [Member] | ||
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | Position | 1 | 1 |
12 months or longer | Position | 0 | 1 |
Total | Position | 1 | 2 |
Available-for-Sale Portfolio in Unrealized Loss Positions, Fair Value [Abstract] | ||
Less than 12 months | $ 3,000 | $ 3,024 |
12 months or longer | 0 | 2,710 |
Total | 3,000 | 5,734 |
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 0 | 0 |
12 months or longer | 0 | 58 |
Total | $ 0 | $ 58 |
Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | Position | 0 | 0 |
12 months or longer | Position | 2 | 2 |
Total | Position | 2 | 2 |
Available-for-Sale Portfolio in Unrealized Loss Positions, Fair Value [Abstract] | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 3 | 3 |
Total | 3 | 3 |
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 0 | 0 |
12 months or longer | 0 | 0 |
Total | $ 0 | $ 0 |
Marketable Equity Securities [Member] | ||
Available-for-Sale Portfolio in Unrealized Loss Positions, Number of Positions [Abstract] | ||
Less than 12 months | Position | 1 | 1 |
12 months or longer | Position | 0 | 0 |
Total | Position | 1 | 1 |
Available-for-Sale Portfolio in Unrealized Loss Positions, Fair Value [Abstract] | ||
Less than 12 months | $ 79 | $ 87 |
12 months or longer | 0 | 0 |
Total | 79 | 87 |
Available-for-Sale Portfolio, Debt Maturities, Gross Unrealized Losses [Abstract] | ||
Less than 12 months | 21 | 14 |
12 months or longer | 0 | 0 |
Total | $ 21 | $ 14 |
INVESTMENT SECURITIES, Amortize
INVESTMENT SECURITIES, Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Due in one year or less | $ 46,761 | |
Due in one to five years | 775,417 | |
Due in five through ten years | 1,465,017 | |
Due after ten years | 211,589 | |
Subtotal | 2,498,784 | |
Amortized cost | 2,724,981 | |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Due in one year or less | 47,048 | |
Due in one to five years | 815,276 | |
Due in five through ten years | 1,564,831 | |
Due after ten years | 227,650 | |
Subtotal | 2,654,805 | |
Fair value | 2,889,446 | |
Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Without single maturity date | 215,191 | |
Amortized cost | 215,191 | $ 205,220 |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Without single maturity date | 223,139 | |
Fair value | 223,139 | 210,865 |
Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-Sale, Debt Maturities, Amortized Cost [Abstract] | ||
Without single maturity date | 11,006 | |
Amortized cost | 11,006 | 12,862 |
Available-for-Sale, Debt Maturities, Fair Value [Abstract] | ||
Without single maturity date | 11,502 | |
Fair value | $ 11,502 | $ 13,308 |
LOANS, Loan Summary (Details)
LOANS, Loan Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Loans receivable, net [Abstract] | |||||||
Gross loans, including deferred origination costs | $ 4,904,802 | $ 4,904,802 | $ 4,801,375 | ||||
Allowance for loan losses | (46,526) | (46,526) | $ (45,596) | (45,401) | $ (45,282) | $ (45,005) | $ (45,341) |
Net loans | 4,858,276 | 4,858,276 | 4,755,974 | ||||
Credit impaired acquired loans, outstanding balance | 8,100 | 8,100 | 8,500 | ||||
Accretable discount related to credit impaired acquired loans [Roll forward] | |||||||
Beginning Balance | 810 | ||||||
Accretion recognized, year-to-date | (252) | ||||||
Net reclassification to accretable from non-accretable | 116 | ||||||
Ending Balance | $ 674 | 674 | |||||
Consumer Mortgage [Member] | Minimum [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Typical contract term | 10 years | ||||||
Consumer Mortgage [Member] | Maximum [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Typical contract term | 30 years | ||||||
Business Lending [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Gross loans, including deferred origination costs | $ 1,536,546 | 1,536,546 | 1,497,271 | ||||
Home Equity [Member] | Maximum [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Typical contract term | 30 years | ||||||
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Gross loans, including deferred origination costs | $ 1,779,295 | 1,779,295 | 1,769,754 | ||||
Allowance for loan losses | (9,853) | (9,853) | (10,148) | (10,198) | (10,192) | (10,233) | (10,286) |
Commercial Portfolio Segment [Member] | Business Lending [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Gross loans, including deferred origination costs | 1,536,546 | 1,536,546 | 1,497,271 | ||||
Allowance for loan losses | (16,949) | (16,949) | (16,695) | (15,749) | (15,353) | (15,405) | (15,787) |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Gross loans, including deferred origination costs | 993,132 | 993,132 | 935,760 | ||||
Allowance for loan losses | (13,215) | (13,215) | (12,334) | (12,422) | (11,602) | (11,246) | (11,544) |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Gross loans, including deferred origination costs | 195,959 | 195,959 | 195,076 | ||||
Allowance for loan losses | (3,020) | (3,020) | (2,875) | (2,997) | (2,991) | (2,879) | (3,083) |
Consumer Portfolio Segment [Member] | Home Equity [Member] | |||||||
Loans receivable, net [Abstract] | |||||||
Gross loans, including deferred origination costs | 399,870 | 399,870 | 403,514 | ||||
Allowance for loan losses | $ (2,500) | $ (2,500) | $ (2,580) | $ (2,666) | $ (2,677) | $ (2,663) | $ (2,701) |
LOANS, Credit Quality By Past D
LOANS, Credit Quality By Past Due Status (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Aged analysis of the company's loans [Abstract] | |||
Total loans | $ 4,904,802 | $ 4,801,375 | |
Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 18,259 | 18,805 | |
Total past due | 46,699 | 49,612 | |
Current | 4,293,361 | 4,134,109 | |
Total loans | 4,340,060 | 4,183,721 | |
Legacy Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 26,867 | 29,006 | |
Legacy Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 1,573 | 1,801 | |
Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 3,891 | 2,923 | |
Total past due | 7,068 | 6,246 | |
Acquired impaired | [1] | 7,008 | 7,299 |
Current | 550,666 | 604,109 | |
Total loans | 564,742 | 617,654 | |
Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 2,841 | 2,929 | |
Acquired Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 336 | 394 | |
Consumer Mortgage [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 1,603,559 | 1,581,458 | |
Consumer Mortgage [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 175,736 | 188,296 | |
Business Lending [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 1,536,546 | 1,497,271 | |
Business Lending [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 1,290,576 | 1,233,628 | |
Business Lending [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 245,970 | 263,643 | |
Consumer Indirect [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 956,144 | 890,339 | |
Consumer Indirect [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 36,988 | 45,421 | |
Consumer Direct [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 183,332 | 178,051 | |
Consumer Direct [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 12,627 | 17,025 | |
Home Equity [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 306,449 | 300,245 | |
Home Equity [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 93,421 | 103,269 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 1,779,295 | 1,769,754 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 11,621 | 11,394 | |
Total past due | 22,496 | 23,287 | |
Current | 1,581,063 | 1,558,171 | |
Total loans | 1,603,559 | 1,581,458 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 9,857 | 10,482 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Legacy Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 1,018 | 1,411 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 2,223 | 1,396 | |
Total past due | 4,058 | 3,163 | |
Acquired impaired | [1] | 0 | 0 |
Current | 171,678 | 185,133 | |
Total loans | 175,736 | 188,296 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 1,565 | 1,373 | |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | Acquired Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 270 | 394 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 1,536,546 | 1,497,271 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 4,714 | 5,381 | |
Total past due | 10,716 | 9,949 | |
Current | 1,279,860 | 1,223,679 | |
Total loans | 1,290,576 | 1,233,628 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 5,660 | 4,442 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Legacy Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 342 | 126 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 1,260 | 1,186 | |
Total past due | 1,600 | 1,721 | |
Acquired impaired | [1] | 7,008 | 7,299 |
Current | 237,362 | 254,623 | |
Total loans | 245,970 | 263,643 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 340 | 535 | |
Commercial Portfolio Segment [Member] | Business Lending [Member] | Acquired Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 0 | 0 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 993,132 | 935,760 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 0 | 0 | |
Total past due | 9,498 | 11,677 | |
Current | 946,646 | 878,662 | |
Total loans | 956,144 | 890,339 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 9,356 | 11,575 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Legacy Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 142 | 102 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 0 | 0 | |
Total past due | 168 | 245 | |
Acquired impaired | [1] | 0 | 0 |
Current | 36,820 | 45,176 | |
Total loans | 36,988 | 45,421 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 168 | 245 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | Acquired Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 0 | 0 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 195,959 | 195,076 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 0 | 1 | |
Total past due | 1,205 | 1,466 | |
Current | 182,127 | 176,585 | |
Total loans | 183,332 | 178,051 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 1,179 | 1,414 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Legacy Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 26 | 51 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 0 | 14 | |
Total past due | 84 | 154 | |
Acquired impaired | [1] | 0 | 0 |
Current | 12,543 | 16,871 | |
Total loans | 12,627 | 17,025 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 84 | 140 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | Acquired Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 0 | 0 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total loans | 399,870 | 403,514 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 1,924 | 2,029 | |
Total past due | 2,784 | 3,233 | |
Current | 303,665 | 297,012 | |
Total loans | 306,449 | 300,245 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 815 | 1,093 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Legacy Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | 45 | 111 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Acquired Loans [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Nonaccrual | 408 | 327 | |
Total past due | 1,158 | 963 | |
Acquired impaired | [1] | 0 | 0 |
Current | 92,263 | 102,306 | |
Total loans | 93,421 | 103,269 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Acquired Loans [Member] | Past Due 30 - 89 Days [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
Total past due | 684 | 636 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | Acquired Loans [Member] | 90+ Days Past Due [Member] | |||
Aged analysis of the company's loans [Abstract] | |||
90 + days past due and still accruing | $ 66 | $ 0 | |
[1] | Acquired impaired loans were not classified as nonperforming assets as the loans are considered to be performing under ASC 310-30. As a result interest income, through the accretion of the difference between the carrying amount of the loans and the expected cashflows, is being recognized on all acquired impaired loans. |
LOANS, Amount of Business Lendi
LOANS, Amount of Business Lending Loans by Credit Quality Category (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 4,904,802 | $ 4,801,375 |
Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,340,060 | 4,183,721 |
Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 564,742 | 617,654 |
Business Lending [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,536,546 | 1,497,271 |
Business Lending [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,290,576 | 1,233,628 |
Business Lending [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 245,970 | 263,643 |
Business Lending [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,269,367 | 1,267,738 |
Business Lending [Member] | Pass [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,082,841 | 1,048,364 |
Business Lending [Member] | Pass [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 186,526 | 219,374 |
Business Lending [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 166,896 | 144,775 |
Business Lending [Member] | Special Mention [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 135,172 | 124,768 |
Business Lending [Member] | Special Mention [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 31,724 | 20,007 |
Business Lending [Member] | Classified [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 92,995 | 77,144 |
Business Lending [Member] | Classified [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 72,283 | 60,181 |
Business Lending [Member] | Classified [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 20,712 | 16,963 |
Business Lending [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 280 | 315 |
Business Lending [Member] | Doubtful [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 280 | 315 |
Business Lending [Member] | Doubtful [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Business Lending [Member] | Acquired Impaired [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,008 | 7,299 |
Business Lending [Member] | Acquired Impaired [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Business Lending [Member] | Acquired Impaired [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,008 | 7,299 |
All Other Loans [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,049,484 | 2,950,093 |
All Other Loans [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 318,772 | 354,011 |
All Other Loans [Member] | Performing [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,034,708 | 2,934,994 |
All Other Loans [Member] | Performing [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 315,805 | 351,880 |
All Other Loans [Member] | Nonperforming [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 14,776 | 15,099 |
All Other Loans [Member] | Nonperforming [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,967 | 2,131 |
Consumer Mortgage [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,603,559 | 1,581,458 |
Consumer Mortgage [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 175,736 | 188,296 |
Consumer Mortgage [Member] | Performing [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,590,920 | 1,568,653 |
Consumer Mortgage [Member] | Performing [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 173,243 | 186,506 |
Consumer Mortgage [Member] | Nonperforming [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,639 | 12,805 |
Consumer Mortgage [Member] | Nonperforming [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,493 | 1,790 |
Consumer Indirect [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 956,144 | 890,339 |
Consumer Indirect [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 36,988 | 45,421 |
Consumer Indirect [Member] | Performing [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 956,002 | 890,237 |
Consumer Indirect [Member] | Performing [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 36,988 | 45,421 |
Consumer Indirect [Member] | Nonperforming [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 142 | 102 |
Consumer Indirect [Member] | Nonperforming [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer Direct [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 183,332 | 178,051 |
Consumer Direct [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,627 | 17,025 |
Consumer Direct [Member] | Performing [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 183,306 | 177,999 |
Consumer Direct [Member] | Performing [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,627 | 17,011 |
Consumer Direct [Member] | Nonperforming [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 26 | 52 |
Consumer Direct [Member] | Nonperforming [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 14 |
Home Equity [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 306,449 | 300,245 |
Home Equity [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 93,421 | 103,269 |
Home Equity [Member] | Performing [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 304,480 | 298,105 |
Home Equity [Member] | Performing [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 92,947 | 102,942 |
Home Equity [Member] | Nonperforming [Member] | Legacy Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,969 | 2,140 |
Home Equity [Member] | Nonperforming [Member] | Acquired Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 474 | $ 327 |
LOANS, Summary of Impaired Loan
LOANS, Summary of Impaired Loans, Excluding Purchased Impaired (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Impaired loans [Abstract] | ||
Loans with allowance allocation | $ 1,187 | $ 0 |
Loans without allowance allocation | 601 | 2,376 |
Unpaid principal balance | 1,788 | 2,376 |
Contractual balance | 3,401 | 3,419 |
Allowance for loan loss allocated | $ 255 | $ 0 |
LOANS, Troubled Debt Restructur
LOANS, Troubled Debt Restructuring (TDR) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)Loan | Jun. 30, 2015USD ($)Loan | Jun. 30, 2016USD ($)Loan | Jun. 30, 2015USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings, nonaccrual number | Loan | 67 | 67 | 55 | ||
Troubled debt restructurings, nonaccrual amount | $ 2,453 | $ 2,453 | $ 1,892 | ||
Troubled debt restructurings, accruing number | Loan | 154 | 154 | 183 | ||
Troubled debt restructurings, accruing amount | $ 4,073 | $ 4,073 | $ 4,252 | ||
Troubled debt restructurings, total number | Loan | 221 | 221 | 238 | ||
Troubled debt restructurings, total amount | $ 6,526 | $ 6,526 | $ 6,144 | ||
Loans modified in TDR during the year, number | Loan | 20 | 9 | 35 | 21 | |
TDR occurring during the year, post-modification recorded investment | $ 731 | $ 146 | $ 1,159 | $ 461 | |
Maximum [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Threshold balance of TDR loans collectively included in general loan loss allocation and qualitative review | $ 500 | $ 500 | |||
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings, nonaccrual number | Loan | 43 | 43 | 37 | ||
Troubled debt restructurings, nonaccrual amount | $ 1,979 | $ 1,979 | $ 1,472 | ||
Troubled debt restructurings, accruing number | Loan | 44 | 44 | 54 | ||
Troubled debt restructurings, accruing amount | $ 2,227 | $ 2,227 | $ 2,486 | ||
Troubled debt restructurings, total number | Loan | 87 | 87 | 91 | ||
Troubled debt restructurings, total amount | $ 4,206 | $ 4,206 | $ 3,958 | ||
Loans modified in TDR during the year, number | Loan | 5 | 2 | 8 | 6 | |
TDR occurring during the year, post-modification recorded investment | $ 437 | $ 61 | $ 652 | $ 280 | |
Commercial Portfolio Segment [Member] | Minimum [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Threshold balance of loan individually evaluated for impairment | $ 500 | $ 500 | |||
Commercial Portfolio Segment [Member] | Business Lending [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings, nonaccrual number | Loan | 10 | 10 | 8 | ||
Troubled debt restructurings, nonaccrual amount | $ 234 | $ 234 | $ 217 | ||
Troubled debt restructurings, accruing number | Loan | 5 | 5 | 6 | ||
Troubled debt restructurings, accruing amount | $ 708 | $ 708 | $ 737 | ||
Troubled debt restructurings, total number | Loan | 15 | 15 | 14 | ||
Troubled debt restructurings, total amount | $ 942 | $ 942 | $ 954 | ||
Loans modified in TDR during the year, number | Loan | 2 | 0 | 2 | 0 | |
TDR occurring during the year, post-modification recorded investment | $ 51 | $ 0 | $ 51 | $ 0 | |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings, nonaccrual number | Loan | 0 | 0 | 0 | ||
Troubled debt restructurings, nonaccrual amount | $ 0 | $ 0 | $ 0 | ||
Troubled debt restructurings, accruing number | Loan | 83 | 83 | 77 | ||
Troubled debt restructurings, accruing amount | $ 806 | $ 806 | $ 691 | ||
Troubled debt restructurings, total number | Loan | 83 | 83 | 77 | ||
Troubled debt restructurings, total amount | $ 806 | $ 806 | $ 691 | ||
Loans modified in TDR during the year, number | Loan | 9 | 6 | 20 | 12 | |
TDR occurring during the year, post-modification recorded investment | $ 118 | $ 84 | $ 331 | $ 163 | |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings, nonaccrual number | Loan | 0 | 0 | 0 | ||
Troubled debt restructurings, nonaccrual amount | $ 0 | $ 0 | $ 0 | ||
Troubled debt restructurings, accruing number | Loan | 10 | 10 | 32 | ||
Troubled debt restructurings, accruing amount | $ 71 | $ 71 | $ 37 | ||
Troubled debt restructurings, total number | Loan | 10 | 10 | 32 | ||
Troubled debt restructurings, total amount | $ 71 | $ 71 | $ 37 | ||
Loans modified in TDR during the year, number | Loan | 1 | 1 | 1 | 2 | |
TDR occurring during the year, post-modification recorded investment | $ 52 | $ 1 | $ 52 | $ 4 | |
Consumer Portfolio Segment [Member] | Home Equity [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Troubled debt restructurings, nonaccrual number | Loan | 14 | 14 | 10 | ||
Troubled debt restructurings, nonaccrual amount | $ 240 | $ 240 | $ 203 | ||
Troubled debt restructurings, accruing number | Loan | 12 | 12 | 14 | ||
Troubled debt restructurings, accruing amount | $ 261 | $ 261 | $ 301 | ||
Troubled debt restructurings, total number | Loan | 26 | 26 | 24 | ||
Troubled debt restructurings, total amount | $ 501 | $ 501 | $ 504 | ||
Loans modified in TDR during the year, number | Loan | 3 | 0 | 4 | 1 | |
TDR occurring during the year, post-modification recorded investment | $ 73 | $ 0 | $ 73 | $ 14 |
LOANS, Allowance for Loan Losse
LOANS, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | $ 45,596 | $ 45,005 | $ 45,401 | $ 45,341 |
Charge-offs | (2,966) | (2,288) | (5,638) | (4,702) |
Recoveries | 1,591 | 1,974 | 3,117 | 3,429 |
Provision | 2,305 | 591 | 3,646 | 1,214 |
Ending balance | 46,526 | 45,282 | 46,526 | 45,282 |
Acquired Impaired [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 85 | 196 | 168 | 173 |
Charge-offs | (26) | (43) | (26) | (43) |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 80 | (60) | (3) | (37) |
Ending balance | 139 | 93 | 139 | 93 |
Residential Portfolio Segment [Member] | Consumer Mortgage [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 10,148 | 10,233 | 10,198 | 10,286 |
Charge-offs | (156) | (199) | (243) | (642) |
Recoveries | 38 | 45 | 83 | 66 |
Provision | (177) | 113 | (185) | 482 |
Ending balance | 9,853 | 10,192 | 9,853 | 10,192 |
Commercial Portfolio Segment [Member] | Business Lending [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 16,695 | 15,405 | 15,749 | 15,787 |
Charge-offs | (770) | (299) | (979) | (433) |
Recoveries | 156 | 527 | 291 | 608 |
Provision | 868 | (280) | 1,888 | (609) |
Ending balance | 16,949 | 15,353 | 16,949 | 15,353 |
Consumer Portfolio Segment [Member] | Consumer Indirect [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 12,334 | 11,246 | 12,422 | 11,544 |
Charge-offs | (1,545) | (1,397) | (3,401) | (2,823) |
Recoveries | 1,140 | 1,184 | 2,255 | 2,337 |
Provision | 1,286 | 569 | 1,939 | 544 |
Ending balance | 13,215 | 11,602 | 13,215 | 11,602 |
Consumer Portfolio Segment [Member] | Consumer Direct [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 2,875 | 2,879 | 2,997 | 3,083 |
Charge-offs | (389) | (294) | (852) | (639) |
Recoveries | 238 | 199 | 460 | 392 |
Provision | 296 | 207 | 415 | 155 |
Ending balance | 3,020 | 2,991 | 3,020 | 2,991 |
Consumer Portfolio Segment [Member] | Home Equity [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 2,580 | 2,663 | 2,666 | 2,701 |
Charge-offs | (80) | (56) | (137) | (122) |
Recoveries | 19 | 19 | 28 | 26 |
Provision | (19) | 51 | (57) | 72 |
Ending balance | 2,500 | 2,677 | 2,500 | 2,677 |
Unallocated Financing Receivables [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 879 | 2,383 | 1,201 | 1,767 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (29) | (9) | (351) | 607 |
Ending balance | $ 850 | $ 2,374 | $ 850 | $ 2,374 |
GOODWILL AND IDENTIFIABLE INT49
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 57,540 | $ 57,253 | |
Accumulated amortization | (39,204) | (36,359) | |
Net carrying amount | 18,336 | 20,894 | |
Estimated aggregate amortization expense [Abstract] | |||
Jul - Dec 2016 | 2,634 | ||
2,017 | 4,412 | ||
2,018 | 3,566 | ||
2,019 | 2,782 | ||
2,020 | 2,119 | ||
Thereafter | 2,823 | ||
Net carrying amount | 18,336 | 20,894 | |
Components of goodwill [Abstract] | |||
Goodwill | 469,966 | 468,076 | |
Goodwill, activity | 1,890 | ||
Accumulated impairment | (4,824) | (4,824) | |
Accumulated impairment, activity | 0 | ||
Goodwill, net | 465,142 | 463,252 | $ 375,174 |
Goodwill, net, activity | 1,890 | ||
Core Deposit Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 39,688 | 39,688 | |
Accumulated amortization | (31,309) | (29,899) | |
Net carrying amount | 8,379 | 9,789 | |
Estimated aggregate amortization expense [Abstract] | |||
Net carrying amount | 8,379 | 9,789 | |
Other Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 17,852 | 17,565 | |
Accumulated amortization | (7,895) | (6,460) | |
Net carrying amount | 9,957 | 11,105 | |
Estimated aggregate amortization expense [Abstract] | |||
Net carrying amount | $ 9,957 | $ 11,105 |
MANDATORILY REDEEMABLE PREFER50
MANDATORILY REDEEMABLE PREFERRED SECURITIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)Trust | |
Debt Instrument [Line Items] | |
Number of wholly owned, unconsolidated subsidiary trusts | Trust | 2 |
Percent ownership of unconsolidated subsidiary trusts | 100.00% |
Community Statutory Trust III [Member] | |
Terms of preferred securities for each trust [Abstract] | |
Issuance date | Jul. 31, 2001 |
Par amount | $ 24.5 |
Variable interest rate basis | 3 month LIBOR |
Variable interest rate, basis spread | 3.58% |
Effective interest rate | 4.22% |
Maturity date | Jul. 31, 2031 |
Call price | Par |
Community Capital Trust IV [Member] | |
Terms of preferred securities for each trust [Abstract] | |
Issuance date | Dec. 8, 2006 |
Par amount | $ 75 |
Variable interest rate basis | 3 month LIBOR |
Variable interest rate, basis spread | 1.65% |
Effective interest rate | 2.30% |
Maturity date | Dec. 15, 2036 |
Call price | Par |
BENEFIT PLANS (Details)
BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Benefits [Member] | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | $ 1,027 | $ 831 | $ 2,052 | $ 1,662 |
Interest cost | 1,406 | 1,375 | 2,812 | 2,749 |
Expected return on plan assets | (2,961) | (3,042) | (5,921) | (6,085) |
Amortization of unrecognized net loss | 377 | 366 | 754 | 733 |
Amortization of prior service cost | 11 | 2 | 22 | 4 |
Net periodic benefit cost | (140) | (468) | (281) | (937) |
Post-retirement Benefits [Member] | ||||
Net periodic benefit cost [Abstract] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 20 | 22 | 41 | 43 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of unrecognized net loss | (1) | (3) | (3) | (6) |
Amortization of prior service cost | (45) | (45) | (89) | (89) |
Net periodic benefit cost | $ (26) | $ (26) | $ (51) | $ (52) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
EARNINGS PER SHARE [Abstract] | |||||
Weighted-average anti-dilutive stock options outstanding (in shares) | 800,000 | 600,000 | 700,000 | 400,000 | |
Basic earnings per share [Abstract] | |||||
Net income | $ 25,857 | $ 23,840 | $ 50,260 | $ 46,137 | |
Income attributable to unvested stock-based compensation awards | (151) | (99) | (242) | (177) | |
Income available to common shareholders | $ 25,706 | $ 23,741 | $ 50,018 | $ 45,960 | |
Weighted-average common shares outstanding - basic (in shares) | 44,021,000 | 40,690,000 | 43,942,000 | 40,674,000 | |
Basic earnings per share (in dollars per share) | $ 0.58 | $ 0.58 | $ 1.14 | $ 1.13 | |
Diluted earnings per share [Abstract] | |||||
Net income | $ 25,857 | $ 23,840 | $ 50,260 | $ 46,137 | |
Income attributable to unvested stock-based compensation awards | (151) | (99) | (242) | (177) | |
Income available to common shareholders | $ 25,706 | $ 23,741 | $ 50,018 | $ 45,960 | |
Weighted-average common shares outstanding - basic (in shares) | 44,021,000 | 40,690,000 | 43,942,000 | 40,674,000 | |
Assumed exercise of stock options (in shares) | 357,000 | 404,000 | 347,000 | 405,000 | |
Weighted-average common shares outstanding - diluted (in shares) | 44,378,000 | 41,094,000 | 44,289,000 | 41,079,000 | |
Diluted earnings per share (in dollars per share) | $ 0.58 | $ 0.58 | $ 1.13 | $ 1.12 | |
Stock Repurchase Program [Abstract] | |||||
Number of common shares authorized to be repurchased (in shares) | 2,200,000 | ||||
Number of common shares repurchased (in shares) | 0 |
COMMITMENTS, CONTINGENT LIABI53
COMMITMENTS, CONTINGENT LIABILITIES AND RESTRICTIONS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount of commitments and contingencies | $ 745,274 | $ 830,495 |
Minimum [Member] | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability | 0 | |
Maximum [Member] | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability | 1,000 | |
Commitments to Extend Credit [Member] | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount of commitments and contingencies | 725,561 | 811,442 |
Standby Letters of Credit [Member] | ||
Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount of commitments and contingencies | $ 19,713 | $ 19,053 |
FAIR VALUE, Financial Assets an
FAIR VALUE, Financial Assets and Liabilities Accounted for at Fair Value On a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | $ 2,889,863 | $ 2,808,113 |
Recurring [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 2,889,863 | 2,808,113 |
Mortgage loans held for sale | 514 | 932 |
Commitments to originate real estate loans for sale | 361 | 117 |
Forward sales commitments | (78) | (37) |
Total | 2,890,660 | 2,809,125 |
Recurring [Member] | U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 1,992,657 | 1,899,978 |
Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 645,488 | 666,883 |
Recurring [Member] | Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 223,139 | 210,865 |
Recurring [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 16,660 | 16,680 |
Recurring [Member] | Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 11,502 | 13,308 |
Recurring [Member] | Marketable Equity Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 417 | 399 |
Recurring [Member] | Level 1 [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 1,993,074 | 1,900,377 |
Mortgage loans held for sale | 0 | 0 |
Commitments to originate real estate loans for sale | 0 | 0 |
Forward sales commitments | 0 | 0 |
Total | 1,993,074 | 1,900,377 |
Recurring [Member] | Level 1 [Member] | U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 1,992,657 | 1,899,978 |
Recurring [Member] | Level 1 [Member] | Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Marketable Equity Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 417 | 399 |
Recurring [Member] | Level 2 [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 896,789 | 907,736 |
Mortgage loans held for sale | 514 | 932 |
Commitments to originate real estate loans for sale | 0 | 0 |
Forward sales commitments | (78) | (37) |
Total | 897,225 | 908,631 |
Mortgage loans held for sale, at principal value | 500 | |
Recurring [Member] | Level 2 [Member] | U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 645,488 | 666,883 |
Recurring [Member] | Level 2 [Member] | Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 223,139 | 210,865 |
Recurring [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 16,660 | 16,680 |
Recurring [Member] | Level 2 [Member] | Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 11,502 | 13,308 |
Recurring [Member] | Level 2 [Member] | Marketable Equity Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Commitments to originate real estate loans for sale | 361 | 117 |
Forward sales commitments | 0 | 0 |
Total | 361 | 117 |
Recurring [Member] | Level 3 [Member] | U.S. Treasury and Agency Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Obligations of State and Political Subdivisions [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Government Agency Mortgage-Backed Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Government Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Marketable Equity Securities [Member] | ||
Available-for-sale investment securities [Abstract] | ||
Available-for-sale investment securities | $ 0 | $ 0 |
FAIR VALUE, Unobservable Input
FAIR VALUE, Unobservable Input Reconciliation (Details) - Commitments to Originate Real Estate Loans for Sale [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Level 3 Assets Measured at Fair Value on a Recurring Basis [Abstract] | |||||
Beginning balance | $ 282 | $ 152 | $ 117 | $ 185 | |
Total losses included in earnings | [1] | (282) | (152) | (399) | (337) |
Commitments to originate real estate loans held for sale, net | 361 | 195 | 643 | 347 | |
Ending balance | $ 361 | $ 195 | $ 361 | $ 195 | |
[1] | Amounts included in earnings associated with the commitments to originate real estate loans for sale are reported as a component of other banking services in the Consolidated Statement of Income. |
FAIR VALUE, Assets and Liabilit
FAIR VALUE, Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Inputs [Abstract] | ||
Valuation allowance | $ 255 | $ 0 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 1,726 | $ 2,088 |
Other Real Estate Owned [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | ||
Fair Value Inputs [Abstract] | ||
Discount rate | 6.30% | 5.30% |
Other Real Estate Owned [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | ||
Fair Value Inputs [Abstract] | ||
Discount rate | 93.80% | 74.00% |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 638 | |
Fair Value Inputs [Abstract] | ||
Valuation allowance | $ 100 | |
Level 3 [Member] | Other Real Estate Owned [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | ||
Fair Value Inputs [Abstract] | ||
Discount rate | 6.00% | |
Level 3 [Member] | Other Real Estate Owned [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | ||
Fair Value Inputs [Abstract] | ||
Discount rate | 94.00% | |
Non-recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 932 | $ 1,765 |
Mortgage servicing rights | 638 | 0 |
Other real estate owned | 1,726 | 2,088 |
Total | 3,296 | 3,853 |
Non-recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Other real estate owned | 0 | 0 |
Total | 0 | 0 |
Non-recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Other real estate owned | 0 | 0 |
Total | 0 | 0 |
Non-recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 932 | 1,765 |
Mortgage servicing rights | 638 | 0 |
Other real estate owned | 1,726 | 2,088 |
Total | $ 3,296 | $ 3,853 |
FAIR VALUE, Significant Unobser
FAIR VALUE, Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 1,726 | $ 2,088 |
Other Real Estate Owned [Member] | Fair Value of Collateral [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated cost of disposal/market adjustment | 6.30% | 5.30% |
Other Real Estate Owned [Member] | Fair Value of Collateral [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated cost of disposal/market adjustment | 93.80% | 74.00% |
Other Real Estate Owned [Member] | Fair Value of Collateral [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated cost of disposal/market adjustment | 31.50% | 27.70% |
Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 932 | $ 1,765 |
Impaired Loans [Member] | Fair Value of Collateral [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated cost of disposal/market adjustment | 9.00% | 9.00% |
Impaired Loans [Member] | Fair Value of Collateral [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated cost of disposal/market adjustment | 16.90% | 20.00% |
Impaired Loans [Member] | Fair Value of Collateral [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Estimated cost of disposal/market adjustment | 12.80% | 17.90% |
Commitments To Originate Real Estate Loans For Sale [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 361 | $ 117 |
Commitments To Originate Real Estate Loans For Sale [Member] | Discounted Cash Flow [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded servicing value | 1.00% | 1.00% |
Mortgage Servicing Rights [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 638 | |
Mortgage Servicing Rights [Member] | Discounted Cash Flow [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Weighted average constant prepayment rate | 11.80% | |
Weighted average discount rate | 2.24% | |
Adequate compensation | $ 7 |
FAIR VALUE, Carrying Amounts an
FAIR VALUE, Carrying Amounts and Estimated Fair Values of Other Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Financial assets [Abstract] | ||
Net loans | $ 4,858,276 | $ 4,755,974 |
Financial liabilities [Abstract] | ||
Deposits | 6,957,854 | 6,873,474 |
Borrowings | 267,600 | 301,300 |
Subordinated debt held by unconsolidated subsidiary trusts | 102,158 | 102,146 |
Fair Value [Member] | ||
Financial assets [Abstract] | ||
Net loans | 4,928,960 | 4,808,856 |
Financial liabilities [Abstract] | ||
Deposits | 6,956,075 | 6,871,098 |
Borrowings | 267,600 | 301,300 |
Subordinated debt held by unconsolidated subsidiary trusts | $ 80,108 | $ 84,680 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Information about reportable segments | |||||
Net interest income | $ 68,306 | $ 61,228 | $ 135,187 | $ 121,068 | |
Provision for loan losses | 2,305 | 591 | 3,646 | 1,214 | |
Noninterest revenues | 38,772 | 29,719 | 77,053 | 58,765 | |
Amortization of intangible assets | 1,403 | 880 | 2,845 | 1,799 | |
Other operating expenses | 64,953 | 55,168 | 131,180 | 110,197 | |
Income before income taxes | 38,417 | 34,308 | 74,569 | 66,623 | |
Assets | 8,742,111 | 7,908,771 | 8,742,111 | 7,908,771 | $ 8,552,669 |
Goodwill | 465,142 | 375,174 | 465,142 | 375,174 | $ 463,252 |
Eliminations [Member] | |||||
Information about reportable segments | |||||
Net interest income | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Noninterest revenues | (595) | (472) | (1,161) | (936) | |
Amortization of intangible assets | 0 | 0 | 0 | 0 | |
Other operating expenses | (595) | (472) | (1,161) | (936) | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Assets | (36,977) | (24,783) | (36,977) | (24,783) | |
Goodwill | 0 | 0 | 0 | 0 | |
Banking [Member] | Operating Segments [Member] | |||||
Information about reportable segments | |||||
Net interest income | 68,220 | 61,165 | 135,019 | 120,948 | |
Provision for loan losses | 2,305 | 591 | 3,646 | 1,214 | |
Noninterest revenues | 16,594 | 14,009 | 31,907 | 27,534 | |
Amortization of intangible assets | 691 | 709 | 1,410 | 1,448 | |
Other operating expenses | 47,615 | 43,393 | 96,145 | 87,212 | |
Income before income taxes | 34,203 | 30,481 | 65,725 | 58,608 | |
Assets | 8,675,329 | 7,882,898 | 8,675,329 | 7,882,898 | |
Goodwill | 440,870 | 364,495 | 440,870 | 364,495 | |
Employee Benefit Services [Member] | Operating Segments [Member] | |||||
Information about reportable segments | |||||
Net interest income | 38 | 35 | 77 | 65 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Noninterest revenues | 12,067 | 11,606 | 24,457 | 22,959 | |
Amortization of intangible assets | 114 | 133 | 230 | 266 | |
Other operating expenses | 9,432 | 8,957 | 18,879 | 17,408 | |
Income before income taxes | 2,559 | 2,551 | 5,425 | 5,350 | |
Assets | 34,814 | 33,609 | 34,814 | 33,609 | |
Goodwill | 8,018 | 8,019 | 8,018 | 8,019 | |
All Other [Member] | |||||
Information about reportable segments | |||||
Net interest income | 48 | 28 | 91 | 55 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Noninterest revenues | 10,706 | 4,576 | 21,850 | 9,208 | |
Amortization of intangible assets | 598 | 38 | 1,205 | 85 | |
Other operating expenses | 8,501 | 3,290 | 17,317 | 6,513 | |
Income before income taxes | 1,655 | 1,276 | 3,419 | 2,665 | |
Assets | 68,945 | 17,047 | 68,945 | 17,047 | |
Goodwill | $ 16,254 | $ 2,660 | $ 16,254 | $ 2,660 |