Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | BRYN MAWR BANK CORP | |
Entity Central Index Key | 802,681 | |
Trading Symbol | bmtc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 20,250,227 |
Consolidated Balance Sheets - U
Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 10,121 | $ 11,657 |
Interest bearing deposits with banks | 35,233 | 48,367 |
Cash and cash equivalents | 45,354 | 60,024 |
Investment securities available for sale, at fair value (amortized cost of $543,240 and $692,824 as of September 30, 2018 and December 31, 2017, respectively) | 528,064 | 689,202 |
Investment securities held to maturity, at amortized cost (fair value of $8,544 and $7,851 as of September 30, 2018 and December 31, 2017, respectively) | 8,916 | 7,932 |
Investment securities, trading | 8,340 | 4,610 |
Loans held for sale | 4,111 | 3,794 |
Portfolio loans and leases, originated | 2,752,160 | 2,487,296 |
Portfolio loans and leases, acquired | 629,315 | 798,562 |
Total portfolio loans and leases | 3,381,475 | 3,285,858 |
Less: Allowance for originated loan and lease losses | (18,612) | (17,475) |
Less: Allowance for acquired loan and lease losses | (72) | (50) |
Total allowance for loans and lease losses | (18,684) | (17,525) |
Net portfolio loans and leases | 3,362,791 | 3,268,333 |
Premises and equipment, net | 63,281 | 54,458 |
Accrued interest receivable | 13,232 | 14,246 |
Mortgage servicing rights | 5,328 | 5,861 |
Bank owned life insurance | 57,543 | 56,667 |
Federal Home Loan Bank stock | 14,678 | 20,083 |
Goodwill | 183,864 | 179,889 |
Intangible assets | 24,301 | 25,966 |
Other investments | 16,529 | 12,470 |
Other assets | 52,110 | 46,185 |
Total assets | 4,388,442 | 4,449,720 |
Deposits: | ||
Noninterest-bearing | 834,363 | 924,844 |
Interest-bearing | 2,522,863 | 2,448,954 |
Total deposits | 3,357,226 | 3,373,798 |
Short-term borrowings | 226,498 | 237,865 |
Long-term FHLB advances | 72,841 | 139,140 |
Subordinated notes | 98,482 | 98,416 |
Junior subordinated debentures | 21,538 | 21,416 |
Accrued interest payable | 7,193 | 3,527 |
Other liabilities | 53,239 | 47,439 |
Total liabilities | 3,837,017 | 3,921,601 |
Shareholders' equity | ||
Common stock, par value $1; authorized 100,000,000 shares; issued 24,532,745 and 24,360,049 shares as of September 30, 2018 and December 31, 2017, respectively and outstanding of 20,292,420 and 20,161,395 as of September 30, 2018 and December 31, 2017, respectively | 24,533 | 24,360 |
Paid-in capital in excess of par value | 373,205 | 371,486 |
Less: Common stock in treasury at cost - 4,240,325 and 4,198,654 shares as of September 30, 2018 and December 31, 2017, respectively | (70,437) | (68,179) |
Accumulated other comprehensive loss, net of tax | (13,402) | (4,414) |
Retained earnings | 238,204 | 205,549 |
Total Bryn Mawr Bank Corporation shareholders' equity | 552,103 | 528,802 |
Noncontrolling interest | (678) | (683) |
Total shareholders' equity | 551,425 | 528,119 |
Total liabilities and shareholders' equity | $ 4,388,442 | $ 4,449,720 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - Unaudited (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Investment securities available for sale, at fair value, amortized cost | $ 543,240 | $ 692,824 |
Investment securities held to maturity at amortized cost, fair value | $ 8,544 | $ 7,851 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 24,532,745 | 24,360,049 |
Common stock, outstanding (in shares) | 20,292,420 | 20,161,395 |
Treasury stock (in shares) | 4,240,325 | 4,198,654 |
Consolidated Statements of Inco
Consolidated Statements of Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income: | ||||
Interest and fees on loans and leases | $ 42,103 | $ 30,892 | $ 124,481 | $ 88,517 |
Interest on cash and cash equivalents | 64 | 36 | 181 | 137 |
Interest on investment securities: | ||||
Taxable | 2,993 | 2,177 | 8,621 | 5,706 |
Non-taxable | 71 | 91 | 233 | 302 |
Dividends | 2 | 2 | 5 | 99 |
Total interest income | 45,233 | 33,198 | 133,521 | 94,761 |
Interest expense: | ||||
Interest on deposits | 5,533 | 2,198 | 13,504 | 6,009 |
Interest on short-term borrowings | 1,096 | 547 | 2,711 | 811 |
Interest on FHLB advances and other borrowings | 394 | 645 | 1,446 | 2,025 |
Interest on subordinated notes | 1,144 | 370 | 3,430 | 1,110 |
Interest on junior subordinated debentures | 337 | 0 | 946 | 0 |
Total interest expense | 8,504 | 3,760 | 22,037 | 9,955 |
Net interest income | 36,729 | 29,438 | 111,484 | 84,806 |
Provision for loan and lease losses | 664 | 1,333 | 4,831 | 1,541 |
Net interest income after provision for loan and lease losses | 36,065 | 28,105 | 106,653 | 83,265 |
Noninterest income: | ||||
Fees for wealth management services | 10,343 | 9,651 | 31,309 | 28,761 |
Insurance commissions | 1,754 | 1,373 | 5,349 | 3,079 |
Capital markets revenue | 710 | 843 | 3,481 | 1,796 |
Service charges on deposits | 726 | 676 | 2,191 | 1,953 |
Loan servicing and other fees | 559 | 548 | 1,720 | 1,570 |
Net gain on sale of loans | 631 | 799 | 1,677 | 1,948 |
Net gain on sale of investment securities available for sale | 0 | 72 | 7 | 73 |
Net gain (loss) on sale of other real estate owned (OREO) | 5 | 0 | 292 | (12) |
Dividends on FHLB and FRB stock | 375 | 217 | 1,316 | 649 |
Other operating income | 3,171 | 1,405 | 10,543 | 3,779 |
Total noninterest income | 18,274 | 15,584 | 57,885 | 43,596 |
Noninterest expenses: | ||||
Salaries and wages | 16,528 | 13,602 | 48,750 | 39,632 |
Employee benefits | 3,356 | 2,560 | 9,941 | 7,453 |
Occupancy and bank premises | 2,717 | 2,485 | 8,464 | 7,258 |
Furniture, fixtures, and equipment | 2,070 | 1,726 | 6,037 | 5,569 |
Advertising | 349 | 277 | 1,179 | 1,068 |
Amortization of intangible assets | 891 | 677 | 2,659 | 2,057 |
Due diligence, merger-related and merger integration expenses | 389 | 850 | 7,761 | 2,597 |
Professional fees | 997 | 739 | 2,677 | 2,499 |
Pennsylvania bank shares tax | 472 | 317 | 1,418 | 1,278 |
Information technology | 1,155 | 880 | 3,602 | 2,575 |
Other operating expenses | 4,668 | 4,071 | 12,970 | 11,353 |
Total noninterest expenses | 33,592 | 28,184 | 105,458 | 83,339 |
Income before income taxes | 20,747 | 15,505 | 59,080 | 43,522 |
Income tax expense | 4,066 | 4,766 | 12,419 | 14,306 |
Net income | 16,681 | 10,739 | 46,661 | 29,216 |
Net (loss) income attributable to noncontrolling interest | 1 | 0 | (5) | 0 |
Net income attributable to Bryn Mawr Bank Corporation | $ 16,682 | $ 10,739 | $ 46,656 | $ 29,216 |
Basic earnings per common share (in dollars per share) | $ 0.82 | $ 0.63 | $ 2.31 | $ 1.72 |
Diluted earnings per common share (in dollars per share) | 0.82 | 0.62 | 2.28 | 1.69 |
Dividends paid or accrued per share (in dollars per share) | $ 0.25 | $ 0.22 | $ 0.69 | $ 0.64 |
Weighted-average basic shares outstanding | 20,270,706 | 17,023,046 | 20,237,757 | 16,987,499 |
Dilutive shares | 167,670 | 230,936 | 206,318 | 254,728 |
Denominator for diluted earnings per share – adjusted weighted average shares outstanding | 20,438,376 | 17,253,982 | 20,444,075 | 17,242,227 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income attributable to Bryn Mawr Bank Corporation | $ 16,682 | $ 10,739 | $ 46,656 | $ 29,216 |
Other comprehensive (loss) income: | ||||
Net unrealized (losses) gains arising during the period, net of tax (benefit) expense of $(616), $105, $(2,337), and $535, respectively | (2,319) | 196 | (8,792) | 995 |
Reclassification adjustment for net (gain) on sale realized in net income, net of tax (expense) of $0, $(25), $(1), and $(25), respectively | 0 | (47) | (6) | (48) |
Reclassification adjustment for net (gain) realized on transfer of investment securities available for sale to trading, net of tax (expense) benefit of $0, $0, $(88), and $0, respectively | 0 | 0 | (329) | 0 |
Unrealized investment (losses) gains, net of tax (benefit) expense of $(616), $80, $(2,426), and $510, respectively | (2,319) | 149 | (9,127) | 947 |
Net change in unfunded pension liability: | ||||
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, net of tax expense of $28, $9, $37, and $34, respectively | 108 | 15 | 139 | 62 |
Total other comprehensive (loss) income | (2,211) | 164 | (8,988) | 1,009 |
Total comprehensive income | $ 14,471 | $ 10,903 | $ 37,668 | $ 30,225 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income - Unaudited (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized (losses) gains, tax (benefit) expense | $ (616) | $ 105 | $ (2,337) | $ 535 |
Reclassification adjustment for net gain on sale realized in net income, tax (expense) benefit | 0 | (25) | (1) | (25) |
Reclassification adjustment for net (gain) realized on transfer of investment securities available for sale to trading, tax (expense) benefit | 0 | 0 | (88) | 0 |
Unrealized investment (losses) gains, tax (benefit) expense | (616) | 80 | (2,426) | 510 |
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, tax expense (benefit) | $ (28) | $ 9 | $ 37 | $ 34 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net income attributable to Bryn Mawr Bank Corporation | $ 46,656 | $ 29,216 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan and lease losses | 4,831 | 1,541 |
Depreciation of fixed assets | 4,584 | 4,181 |
Net amortization of investment premiums and discounts | 2,373 | 2,189 |
Net gain on sale of investment securities available for sale | (7) | (73) |
Net gain on sale of loans | (1,677) | (1,948) |
Stock based compensation | 1,944 | 1,476 |
Amortization and net impairment of mortgage servicing rights | 549 | 619 |
Net accretion of fair value adjustments | (7,023) | (2,038) |
Amortization of intangible assets | 2,659 | 2,057 |
Impairment of OREO and other repossessed assets | 6 | 200 |
Net (gain) loss on sale of OREO | (292) | 12 |
Net increase in cash surrender value of bank owned life insurance (BOLI) | (876) | (602) |
Other, net | (7,387) | 2,130 |
Loans originated for resale | (72,545) | (91,214) |
Proceeds from loans sold | 73,650 | 95,599 |
Provision for deferred income taxes | 4,768 | 325 |
Change in income taxes payable/receivable, net | 6,033 | (2,576) |
Change in accrued interest receivable | 1,014 | (754) |
Change in accrued interest payable | 3,666 | (467) |
Net cash provided by operating activities | 62,926 | 39,873 |
Investing activities: | ||
Purchases of investment securities available for sale | (115,381) | (200,292) |
Purchases of investment securities held to maturity | (1,328) | (3,466) |
Proceeds from maturity and paydowns of investment securities available for sale | 259,102 | 259,765 |
Proceeds from maturity and paydowns of investment securities held to maturity | 312 | 71 |
Proceeds from sale of investment securities available for sale | 7 | 12,982 |
Net change in FHLB stock | 5,405 | 1,057 |
Proceeds from calls of investment securities | 310 | 22,180 |
Net change in other investments | (4,059) | (314) |
Purchase of portfolio loans and leases | (14,974) | 0 |
Net portfolio loan and lease originations | 82,695 | 142,416 |
Purchases of premises and equipment | (13,532) | (5,251) |
Acquisitions, net of cash acquired | (380) | (4,792) |
Capitalize costs to OREO | (24) | (50) |
Proceeds from sale of OREO | 430 | 375 |
Net cash provided by (used in) investing activities | 32,978 | (60,302) |
Financing activities: | ||
Change in deposits | (15,542) | 104,558 |
Change in short-term borrowings | (11,367) | (23,277) |
Dividends paid | (14,208) | (11,043) |
Change in long-term FHLB advances and other borrowings | (66,371) | (55,000) |
Payment of contingent consideration for business combinations | (660) | (100) |
Cash payments to taxing authorities on employees' behalf from shares withheld from stock-based compensation | (1,489) | (1,112) |
Net proceeds from sale of treasury stock for deferred compensation plans | 52 | |
Purchase of treasury stock for deferred compensation plans | (98) | |
Repurchase of warrants from U.S. Treasury | (1,755) | 0 |
Net purchase of treasury stock through publicly announced plans | (690) | 0 |
Proceeds from exercise of stock options | 1,456 | 1,288 |
Net cash (used in) provided by financing activities | (110,574) | 15,216 |
Change in cash and cash equivalents | (14,670) | (5,213) |
Cash and cash equivalents at beginning of period | 60,024 | 50,765 |
Cash and cash equivalents at end of period | 45,354 | 45,552 |
Supplemental cash flow information: | ||
Income taxes | 1,821 | 16,537 |
Interest | 18,371 | 10,422 |
Non-cash information: | ||
Change in other comprehensive loss | (8,988) | 1,009 |
Change in deferred tax due to change in comprehensive income | (2,389) | 544 |
Transfer of loans to OREO and repossessed assets | 345 | 309 |
Acquisition of noncash assets and liabilities: | ||
Assets acquired | 1,466 | 7,284 |
Liabilities assumed | 687 | 2,492 |
Customer Relationships | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of intangible assets | 1,271 | |
Investing activities: | ||
Purchase of domain name | (215) | 0 |
Domain Name | ||
Investing activities: | ||
Purchase of domain name | $ 0 | $ (151) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - Unaudited - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | |
Beginning balance (in shares) at Dec. 31, 2017 | 24,360,049 | 24,360,049 | ||||||
Beginning balance at Dec. 31, 2017 | $ 528,119 | $ 24,360 | $ 371,486 | $ (68,179) | $ (4,414) | $ 205,549 | $ (683) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income attributable to Bryn Mawr Bank Corporation | 46,656 | 46,656 | ||||||
Net income attributable to noncontrolling interest | 5 | 5 | ||||||
Dividends paid or accrued, $0.69 per share | (14,099) | (14,099) | ||||||
Other comprehensive loss, net of tax benefit of $2,389 | (8,988) | (8,988) | ||||||
Stock based compensation | 1,944 | 1,944 | ||||||
Retirement of treasury stock (in shares) | (2,253) | |||||||
Retirement of treasury stock | 0 | $ (2) | (20) | 22 | ||||
Net purchase of treasury stock from stock awards for statutory tax withholdings | (1,489) | (1,489) | ||||||
Net treasury stock activity for deferred compensation trusts | 52 | 153 | (101) | |||||
Net purchase of treasury stock through publicly announced plans | (690) | |||||||
Repurchase of warrants from U.S. Treasury | $ (1,755) | (1,853) | 98 | |||||
Common stock issued through share-based awards and options exercises (in shares) | 63,825 | 172,387 | ||||||
Common stock issued through share-based awards and options exercises | $ 1,557 | $ 172 | 1,385 | |||||
Shares issued in acquisitions (in shares) | [1] | 2,562 | ||||||
Shares issued in acquisitions | [1] | $ 113 | $ 3 | 110 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 24,532,745 | 24,532,745 | ||||||
Ending balance at Sep. 30, 2018 | $ 551,425 | $ 24,533 | $ 373,205 | $ (70,437) | $ (13,402) | $ 238,204 | $ (678) | |
[1] | Shares relating to the RBPI Merger (defined in Note 3 – Business Combinations below) recorded in April 2018. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity - Unaudited (Parentheticals) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / shares | |
Dividends paid or accrued per share (in dollars per share) | $ 0.69 |
Retained Earnings | |
Dividends paid or accrued per share (in dollars per share) | $ 0.69 |
Accumulated Other Comprehensive Loss | |
Other comprehensive loss, tax expense | $ | $ 2,389 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). In the opinion of Bryn Mawr Bank Corporation’s (the “Corporation”) management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. These Unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto in the Corporation’s Annual Report on Form 10-K for the twelve months ended December 31, 2017 (the “ 2017 Annual Report”). The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year. Principles of Consolidation The Unaudited Consolidated Financial Statements include the accounts of the Corporation and its wholly owned subsidiaries; the Corporation’s primary subsidiary is The Bryn Mawr Trust Company (the “Bank”). In connection with the RBPI Merger (defined in Note 3 – Business Combinations below), the Corporation acquired two Delaware trusts, Royal Bancshares Capital Trust I and Royal Bancshares Capital Trust II. These two entities are not consolidated per requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation” (“ASC Topic 810”). All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current-year presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following FASB Accounting Standards Updates ("ASUs") are divided into pronouncements which have been adopted by the Corporation since January 1, 2018, and those which are not yet effective and have been evaluated or are currently being evaluated by management as of September 30, 2018 . Adopted Pronouncements: FASB ASU 2014-9 (Topic 606), “Revenue from Contracts with Customers” The Corporation adopted ASU 2014-9 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Corporation’s revenues come from interest income and other sources, including loans, leases, investment securities and derivatives, that are outside the scope of ASC 606. The Corporation’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Corporation satisfies its obligation to the customer. Services within the scope of ASC 606 include service charges on deposits, Visa debit card income, wealth management fees, investment brokerage fees, and the net gain on sale of OREO. Refer to Note 17 Revenue from Contracts with Customers for further discussion on the Corporation’s accounting policies for revenue sources within the scope of ASC 606. The adoption of this ASU did not have an impact to our Consolidated Financial Statements and related disclosures. FASB ASU 2017-1 (Topic 805), “Business Combinations” The Corporation adopted ASU 2017-1, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2016-15 (Topic 320), “Classification of Certain Cash Receipts and Cash Payments” The Corporation adopted ASU 2016-15, which provides guidance on eight specific cash flow issues and their disclosure in the consolidated statements of cash flows. The issues addressed include debt prepayment, settlement of zero-coupon debt, contingent consideration in business combinations, proceeds from settlement of insurance claims, proceeds from settlement of BOLI, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2016-1 (Subtopic 825-10), “Financial Instruments – Overall, Recognition and Measurement of Financial Assets and Financial Liabilities” The Corporation adopted ASU 2016-1 which requires that equity investments be measured at fair value with changes in fair value recognized in net income. The Corporation’s equity investments with a readily determinable fair value are currently included within trading securities and are measured at fair value with changes in fair value recognized in net income. In connection with the adoption of this ASU, the Corporation elected the practicability exception to fair value measurement for investments in equity securities without a readily determinable fair value (other than our Federal Home Loan Bank (“FHLB”), Federal Reserve Bank ("FRB"), and Atlantic Central Bankers Bank stock, which are outside of the scope of this ASU). Under the practicability exception, the investments are measured at cost, less impairment, plus or minus observable price changes (in orderly transactions) of an identical or similar investment of the same issuer. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2017-7 (Topic 715), “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” On January 1, 2018, the Corporation adopted ASU 2017-7 and all subsequent amendments to the ASU, which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). Upon adoption, the components of net periodic benefit cost other than the service cost component were reclassified retrospectively from “ Employee benefits” to “ Other operating expenses ” in the Consolidated Statements of Income. Since both “ Employee benefits” and “ Other operating expenses ” line items are under “ Noninterest expenses ”, there was no impact to total “ Noninterest expenses ” or “ Net income .” The components of net periodic benefit cost are currently disclosed in Note 17 – “Pension and Postretirement Benefit Plans” in the Notes to Consolidated Financial Statements found in our 2017 Annual Report. Additionally, the Corporation does not currently capitalize any components of its net periodic benefit costs. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures. Pronouncements Not Yet Effective: FASB ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting” Issued in June 2018, ASU 2018-07: Compensation - Stock Compensation (Topic 718), “ Improvements to Nonemployee Share-Based Payment Accounting ” expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Corporation has not historically granted share based payment awards to nonemployees other than to the Corporation’s Board of Directors, who are treated as employees for share-based payment accounting. As a result, management does not expect the adoption of this ASU to have an impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2017-4 (Topic 350), “Intangibles – Goodwill and Others” Issued in January 2017, ASU 2017-4 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-4 is effective for annual periods beginning after December 15, 2019 including interim periods within those periods. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments” Issued in June 2016, ASU 2016-13 significantly changes how companies measure and recognize credit impairment for many financial assets. The new current expected credit loss (“CECL”) model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets that are in the scope of the standard. The ASU also makes targeted amendments to the current impairment model for available-for-sale debt securities. ASU 2016-13 is effective for the annual and interim periods in fiscal years beginning after December 15, 2019, with early adoption permitted. Adoption of this new guidance can be applied only on a prospective basis as a cumulative-effect adjustment to retained earnings. It is expected that the new model will include different assumptions used in calculating credit losses, such as estimating losses over the estimated life of a financial asset, and will consider expected future changes in macroeconomic conditions. The adoption of this ASU may result in an increase to the Corporation’s allowance for credit losses, which will depend upon the nature and characteristics of the Corporation 's portfolio at the adoption date, as well as the macroeconomic conditions and forecasts at the adoption date. The Corporation has engaged the services of a third-party consultant as well as invested in software designed to assist management in the development and implementation of the new CECL model. Management has validated historical data uploaded within the third-party software and is beginning to develop the CECL model, including evaluating key assumptions such as portfolio segmentation, life of loan assumptions, and financial forecasts. The adoption of this ASU will also require the addition of an allowance for held-to-maturity debt securities. The Corporation currently does not intend to early adopt this new guidance. FASB ASU 2016-2 (Topic 842), “Leases” Issued in February 2016, ASU 2016-2 revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and right-of-use asset for all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-2 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. The standard is required to be adopted using the modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Management is in-process of migrating data and key assumptions into a third-party lease accounting software to calculate the lease liability and right-of-use asset for all existing leases of the Corporation. Management is aware that the adoption of this ASU will impact the Corporation’s balance sheet for the recording of assets and liabilities for operating leases. Any additional assets recorded as a result of implementation will have a negative impact on the Corporation and Bank capital ratios under current regulatory guidance. FASB ASU 2018-12 (Topic 944), “Targeted Improvements to the Accounting for Long-Duration Contracts” Issued in August 2018, ASU 2018-12 makes targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. Specifically, the ASU is intended to 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. ASU 2018-12 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application of the amendments is permitted. As an independent insurance agent, the Corporation does not issue insurance contracts. As a result, management does not expect the adoption of this ASU to have an impact on our Consolidated Financial Statements and related disclosures. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Domenick & Associates (“Domenick”) The Bank’s subsidiary, BMT Insurance Advisors, Inc., completed the acquisition of Domenick, a full-service insurance agency established in 1993 and headquartered in the Old City section of Philadelphia, on May 1, 2018. The consideration paid was $1.5 million , of which $750 thousand was paid at closing, with three contingent cash payments, not to exceed $250 thousand each, to be payable on each of May 1, 2019, May 1, 2020, and May 1, 2021, subject to the attainment of certain targets during the related periods. The following table details the consideration paid, the initial estimated fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition and the resulting goodwill recorded: (dollars in thousands) Consideration paid: Cash paid at closing $ 750 Contingent payment liability (present value) 706 Value of consideration $ 1,456 Assets acquired: Cash and due from banks 370 Intangible assets - customer relationships 779 Premises and equipment 1 Other assets 316 Total assets 1,466 Liabilities assumed: Accounts payable 657 Other liabilities 30 Total liabilities $ 687 Net assets acquired $ 779 Goodwill resulting from acquisition of Domenick $ 677 As of June 30, 2018, the estimates of the fair value of identifiable assets acquired and liabilities assumed in the Domenick acquisition were final. Royal Bancshares of Pennsylvania, Inc. On December 15, 2017, the previously announced merger of Royal Bancshares of Pennsylvania, Inc. (“RBPI”) with and into the Corporation (the “Effective Date”), and the merger of Royal Bank America with and into the Bank (collectively, the "RBPI Merger"), as contemplated by the Agreement and Plan of Merger, by and between RBPI and the Corporation, dated as of January 30, 2017 (the “Agreement”) was completed. In accordance with the Agreement, the aggregate share consideration paid to RBPI shareholders consisted of 3,101,316 shares of the Corporation’s common stock. Shareholders of RBPI received 0.1025 shares of Corporation common stock for each share of RBPI Class A common stock and 0.1179 shares of Corporation common stock for each share of RBPI Class B common stock owned as of the Effective Date of the RBPI Merger, with cash-in-lieu of fractional shares totaling $7 thousand . Holders of in-the-money options to purchase RBPI Class A common stock received cash totaling $112 thousand . In addition, 1,368,040 warrants to purchase Class A common stock of RBPI, valued at $1.9 million were converted to 140,224 warrants to purchase Corporation common stock. In accordance with the acquisition method of accounting, assets acquired and liabilities assumed were preliminarily adjusted to their fair values as of the Effective Date. The excess of consideration paid above the fair value of net assets acquired was recorded as goodwill. This goodwill is not amortizable no r is it deductible for income tax purposes. In connection with the RBPI Merger, the consideration paid and the estimated fair value of identifiable assets acquired and liabilities assumed as of the Effective Date, which include the effects of any measurement period adjustments in accordance with ASC 805-10, are summarized in the following table: (dollars in thousands) Consideration paid: Common shares issued (3,101,316) $ 136,768 Cash in lieu of fractional shares 7 Cash-out of certain options 112 Fair value of warrants assumed 1,853 Value of consideration $ 138,740 Assets acquired: Cash and due from banks 17,092 Investment securities available for sale 121,587 Loans 566,228 Premises and equipment 8,264 Deferred income taxes 34,586 Bank-owned life insurance 16,550 Core deposit intangible 4,670 Favorable lease asset 566 Other assets 13,996 Total assets $ 783,539 Liabilities assumed: Deposits 593,172 FHLB and other long-term borrowings 59,568 Short-term borrowings 15,000 Junior subordinated debentures 21,416 Unfavorable lease liability 322 Other liabilities 31,381 Total liabilities $ 720,859 Net assets acquired $ 62,680 Goodwill resulting from acquisition of RBPI $ 76,060 Provisional Estimates of Fair Value of Certain Assets Acquired in the RBPI Merger As of September 30, 2018 , the accounting for the estimates of fair value for certain loans acquired in the RBPI Merger is incomplete. The Corporation is in the process of obtaining new information that will allow management to better estimate fair values that existed as of the Effective Date. When this information is obtained, management anticipates an adjustment to the provisional fair value assigned to certain acquired loans. These adjustments will result in corresponding adjustments to goodwill and net deferred tax asset. In accordance with ASC 805-10, the adjustments will be recorded in the period in which the new information about facts and circumstances that existed as of the Effective Date is obtained and reviewed. During the nine months ended September 30, 2018 , the Corporation adjusted certain provisional fair value estimates related to the RBPI Merger. The following table details the changes in fair value of the net assets acquired and liabilities assumed as of the Effective Date from the amounts originally reported in the 2017 Annual Report: (dollars in thousands) Goodwill resulting from the acquisition of RBPI reported as of December 31, 2017 $ 72,762 Value of Consideration Adjustment: Common shares issued (2,562) 113 Fair Value Adjustments: Loans 4,145 Other assets 491 Deferred income taxes (1,451 ) Total Fair Value Adjustments 3,185 Goodwill from the acquisition of RBPI as of September 30, 2018 $ 76,060 Methods Used to Fair Value Assets and Liabilities For information regarding the valuation methodologies used to estimate the fair values of major categories of assets acquired and liabilities assumed, refer to Note 2 in the Notes to Consolidated Financial Statements in the 2017 Annual Report. Loans Held for Investment During the first and third quarters of 2018, new information became available related to certain loans acquired from RBPI which resulted in an adjustment to the fair value mark applied to acquired loans with evidence of credit quality deterioration. Loans meeting this definition were reviewed by comparing the contractual cash flows to expected collectible cash flows. The aggregate expected cash flows less the acquisition date fair value results in an accretable yield amount. The accretable yield amount will be recognized over the life of the loans or over the recovery period of the underlying collateral on a level yield basis as an adjustment to yield. As a result of the adjustments, the Corporation recorded increases of $3.0 million and $1.6 million in nonaccretable difference in the first and third quarters of 2018, respectively. The adjustment to the aggregate expected cash flows less the Effective Date fair value resulted in an increase in accretable yield of $325 thousand . There were no adjustments to the fair value mark applied to the acquired loan portfolio during the second quarter of 2018. The following table provides an updated summary of the acquired impaired loans and leases as of the Effective Date, which include the effects of any measurement period adjustments in accordance with ASC 805-10, resulting from the RBPI Merger: (dollars in thousands) Contractually required principal and interest payments $ 40,741 Contractual cash flows not expected to be collected (nonaccretable difference) (17,637 ) Cash flows expected to be collected 23,104 Interest component of expected cash flows (accretable yield) (2,644 ) Fair value of loans acquired with deterioration of credit quality $ 20,460 Harry R. Hirshorn & Company, Inc., d/b/a Hirshorn Boothby (“Hirshorn”) The acquisition of Hirshorn, an insurance agency headquartered in the Chestnut Hill section of Philadelphia, was completed on May 24, 2017. Immediately after the acquisition, Hirshorn was merged into the Bank’s existing insurance subsidiary, BMT Insurance Advisors, Inc., formerly known as Powers Craft Parker and Beard, Inc. The consideration paid by the Bank was $7.5 million , of which $5.8 million was paid at closing, one contingent cash payment of $575 thousand was paid during the second quarter of 2018, and two contingent cash payments, not to exceed $575 thousand each, to be payable on each of May 24, 2019 and May 24, 2020, subject to the attainment of certain targets during the related periods. The acquisition enhanced the Bank’s ability to offer comprehensive insurance solutions to both individual and business clients and continues the strategy of selectively establishing specialty offices in targeted areas. In connection with the Hirshorn acquisition, the following table details the consideration paid, the initial estimated fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition and the resulting goodwill recorded: (dollars in thousands) Consideration paid: Cash paid at closing $ 5,770 Contingent payment liability (present value) 1,690 Value of consideration 7,460 Assets acquired: Cash operating accounts 978 Intangible assets – trade name 195 Intangible assets – customer relationships 2,672 Intangible assets – non-competition agreements 41 Premises and equipment 1,795 Accounts receivable 192 Other assets 27 Total assets 5,900 Liabilities assumed: Accounts payable 800 Other liabilities 2 Total liabilities 802 Net assets acquired 5,098 Goodwill resulting from acquisition of Hirshorn $ 2,362 As of December 31, 2017 , the estimates of the fair value of identifiable assets acquired and liabilities assumed in the Hirshorn acquisition were final. Pro Forma Income Statements (unaudited) The following table presents the pro forma income statement of the combined institution (RBPI and the Corporation) for the three and nine months ended September 30, 2017 as if the RBPI Merger had occurred on January 1, 2017. The pro forma income statement adjustments are limited to the effects of purchase accounting fair value mark amortization and accretion and intangible asset amortization. No cost savings or additional merger expenses have been included in the pro forma income statement. Due to the immaterial contribution to net income of the Hirshorn acquisition, which occurred during the year shown in the table, the pro forma effects of the Hirshorn acquisition have been excluded. (dollars in thousands) Three Months Ended Nine Months Ended Total interest income $ 43,412 $ 126,976 Total interest expense 5,480 15,013 Net interest income 37,932 111,963 Provision for loan and lease losses 1,492 2,054 Net interest income after provision for loan and lease losses 36,440 109,909 Total noninterest income 16,015 45,481 Total noninterest expenses* 33,364 99,699 Income before income taxes 19,091 55,691 Income tax expense 5,843 18,306 Net income $ 13,248 $ 37,385 Per share data**: Weighted-average basic shares outstanding 20,121,800 20,086,253 Dilutive shares 261,935 284,294 Adjusted weighted-average diluted shares 20,383,735 20,370,547 Basic earnings per common share $ 0.66 $ 1.86 Diluted earnings per common share $ 0.65 $ 1.84 * Total noninterest expense includes RBPI Net Income Attributable to Noncontrolling Interest and Preferred Stock Series A Accumulated Dividend and Accretion for pro forma presentation. ** Assumes that the shares of RBPI common stock outstanding as of December 31, 2017 were outstanding for the full three and nine month periods ended September 30, 2017 . Due Diligence, Merger-Related and Merger Integration Expenses Due diligence, merger-related and merger integration expenses include consultant costs, investment banker fees, contract breakage fees, retention bonuses for severed employees, salary and wages for redundant staffing involved in the integration of the institutions and bonus accruals for members of the merger integration team. The following table details the costs identified and classified as due diligence, merger-related and merger integration costs for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2018 2017 2018 2017 Advertising $ — $ 89 $ 61 $ 108 Employee Benefits — 5 271 10 Occupancy and bank premises — — 2,145 — Furniture, fixtures, and equipment — 31 365 37 Information technology 167 41 421 300 Professional fees 193 632 1,450 1,570 Salaries and wages 29 28 852 428 Other — 24 2,196 144 Total due diligence, merger-related and merger integration expenses $ 389 $ 850 $ 7,761 $ 2,597 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost and fair value of investment securities available for sale as of September 30, 2018 and December 31, 2017 are as follows: As of September 30, 2018 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 100 $ — $ — $ 100 Obligations of the U.S. government and agencies 196,334 17 (5,898 ) 190,453 Obligations of state and political subdivisions 15,890 1 (92 ) 15,799 Mortgage-backed securities 292,005 344 (7,928 ) 284,421 Collateralized mortgage obligations 37,811 — (1,618 ) 36,193 Other investment securities 1,100 — (2 ) 1,098 Total $ 543,240 $ 362 $ (15,538 ) $ 528,064 As of December 31, 2017 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 200,077 $ 11 $ — $ 200,088 Obligations of the U.S. government and agencies 153,028 75 (2,059 ) 151,044 Obligations of state and political subdivisions 21,352 11 (53 ) 21,310 Mortgage-backed securities 275,958 887 (1,855 ) 274,990 Collateralized mortgage obligations 37,596 14 (948 ) 36,662 Other investment securities 4,813 318 (23 ) 5,108 Total $ 692,824 $ 1,316 $ (4,938 ) $ 689,202 The following tables present the aggregate amount of gross unrealized losses as of September 30, 2018 and December 31, 2017 on available for sale investment securities classified according to the amount of time those securities have been in a continuous unrealized loss position: As of September 30, 2018 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of the U.S. government and agencies $ 82,187 $ (1,634 ) $ 107,601 $ (4,264 ) $ 189,788 $ (5,898 ) Obligations of state and political subdivisions 11,009 (21 ) 2,303 (71 ) 13,312 (92 ) Mortgage-backed securities 136,170 (3,037 ) 130,269 (4,891 ) 266,439 (7,928 ) Collateralized mortgage obligations 10,939 (86 ) 24,945 (1,532 ) 35,884 (1,618 ) Other investment securities 549 (1 ) 249 (1 ) 798 (2 ) Total $ 240,854 $ (4,779 ) $ 265,367 $ (10,759 ) $ 506,221 $ (15,538 ) As of December 31, 2017 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of the U.S. government and agencies $ 114,120 $ (1,294 ) $ 26,726 $ (765 ) $ 140,846 $ (2,059 ) Obligations of state and political subdivisions 11,144 (29 ) 2,709 (24 ) 13,853 (53 ) Mortgage-backed securities 177,919 (1,293 ) 31,787 (562 ) 209,706 (1,855 ) Collateralized mortgage obligations 5,166 (47 ) 26,686 (901 ) 31,852 (948 ) Other investment securities 1,805 (23 ) — — 1,805 (23 ) Total $ 310,154 $ (2,686 ) $ 87,908 $ (2,252 ) $ 398,062 $ (4,938 ) Management evaluates the Corporation’s investment securities that are in an unrealized loss position in order to determine if the decline in fair value is other than temporary. The investment portfolio includes debt securities issued by U.S. government agencies, U.S. government-sponsored agencies, state and local municipalities and other issuers. All fixed income investment securities in the Corporation’s investment portfolio are rated as investment-grade or higher. Factors considered in the evaluation include the current economic climate, the length of time and the extent to which the fair value has been below cost, interest rates and the bond rating of each security. The unrealized losses presented in the tables above are temporary in nature and are primarily related to market interest rates rather than the underlying credit quality of the issuers or collateral. Management does not believe that these unrealized losses are other-than-temporary. Management does not have the intent to sell these securities prior to their maturity or the recovery of their cost bases and believes that it is more likely than not that it will not have to sell these securities prior to their maturity or the recovery of their cost bases. As of September 30, 2018 and December 31, 2017 , securities having a fair value of $121.1 million and $126.2 million , respectively, were specifically pledged as collateral for public funds, trust deposits, the FRB discount window program, FHLB borrowings and other purposes. Advances by the FHLB are collateralized by a blanket lien on non-pledged, mortgage-related loans as part of the Corporation’s borrowing agreement with the FHLB as well as certain securities individually pledged by the Corporation. The amortized cost and fair value of available for sale investment and mortgage-related securities available for sale as of September 30, 2018 and December 31, 2017 , by contractual maturity, are shown below. Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2018 December 31, 2017 (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Investment securities: Due in one year or less $ 12,265 $ 12,237 $ 211,019 $ 211,019 Due after one year through five years 176,700 171,374 126,452 124,797 Due after five years through ten years 24,459 23,839 23,147 22,804 Due after ten years — — 15,439 15,421 Subtotal 213,424 207,450 376,057 374,041 Mortgage-related securities (1) 329,816 320,614 313,554 311,652 Mutual funds with no stated maturity — — 3,213 3,509 Total $ 543,240 $ 528,064 $ 692,824 $ 689,202 (1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The amortized cost and fair value of investment securities held to maturity as of September 30, 2018 and December 31, 2017 are as follows: As of September 30, 2018 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities $ 8,916 $ — $ (372 ) $ 8,544 As of December 31, 2017 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities $ 7,932 $ 5 $ (86 ) $ 7,851 The following tables present the aggregate amount of gross unrealized losses as of September 30, 2018 and December 31, 2017 on held to maturity securities classified according to the amount of time those securities have been in a continuous unrealized loss position: As of September 30, 2018 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 3,882 $ (132 ) $ 4,662 $ (240 ) $ 8,544 $ (372 ) As of December 31, 2017 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 2,756 $ (25 ) $ 3,866 $ (61 ) $ 6,622 $ (86 ) The amortized cost and fair value of held to maturity investment securities as of September 30, 2018 and December 31, 2017 , by contractual maturity, are shown below: September 30, 2018 December 31, 2017 (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Mortgage-backed securities (1) $ 8,916 $ 8,544 $ 7,932 $ 7,851 (1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of September 30, 2018 and December 31, 2017 , the Corporation’s investment securities held in trading accounts totaled $8.3 million and $4.6 million , respectively, and primarily consist of deferred compensation trust accounts which are invested in listed mutual funds whose diversification is at the discretion of the deferred compensation plan participants and a rabbi trust account established to fund certain unqualified pension obligations. During the first quarter of 2018, $3.2 million of investment securities included within the rabbi trust account were reclassified from available for sale to trading . Investment securities held in trading accounts are reported at fair value, with adjustments in fair value reported through income. |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases The loan and lease portfolio consists of loans and leases originated by the Corporation, as well as loans acquired in mergers and acquisitions. These mergers and acquisitions include the December 2017 RBPI Merger, the January 2015 Continental Bank Holdings, Inc. Merger, the November 2012 transaction with First Bank of Delaware, and the July 2010 acquisition of First Keystone Financial, Inc. Certain tables in this footnote are presented with a breakdown between originated and acquired loans and leases. A. The table below details portfolio loans and leases as of the dates indicated: September 30, 2018 December 31, 2017 (dollars in thousands) Originated Acquired Total Loans and Leases Originated Acquired Total Loans and Leases Loans held for sale $ 4,111 $ — $ 4,111 $ 3,794 $ — $ 3,794 Real Estate Loans: Commercial mortgage $ 1,259,397 $ 359,096 $ 1,618,493 $ 1,122,327 $ 401,050 $ 1,523,377 Home equity lines and loans 180,068 27,738 207,806 183,283 34,992 218,275 Residential mortgage 381,037 86,365 467,402 360,935 97,951 458,886 Construction 158,691 19,802 178,493 128,266 84,188 212,454 Total real estate loans $ 1,979,193 $ 493,001 $ 2,472,194 $ 1,794,811 $ 618,181 $ 2,412,992 Commercial and industrial 618,200 104,799 722,999 589,304 130,008 719,312 Consumer 44,833 2,976 47,809 35,146 3,007 38,153 Leases 109,934 28,539 138,473 68,035 47,366 115,401 Total portfolio loans and leases $ 2,752,160 $ 629,315 $ 3,381,475 $ 2,487,296 $ 798,562 $ 3,285,858 Total loans and leases $ 2,756,271 $ 629,315 $ 3,385,586 $ 2,491,090 $ 798,562 $ 3,289,652 Loans with fixed rates $ 1,167,097 $ 375,326 $ 1,542,423 $ 1,034,542 $ 538,510 $ 1,573,052 Loans with adjustable or floating rates 1,589,174 253,989 1,843,163 1,456,548 260,052 1,716,600 Total loans and leases $ 2,756,271 $ 629,315 $ 3,385,586 $ 2,491,090 $ 798,562 $ 3,289,652 Net deferred loan origination fees included in the above loan table $ 1,220 $ — $ 1,220 $ 887 $ — $ 887 B. Components of the net investment in leases are detailed as follows: September 30, 2018 December 31, 2017 (dollars in thousands) Originated Acquired Total Leases Originated Acquired Total Leases Minimum lease payments receivable $ 122,596 $ 32,039 $ 154,635 $ 75,592 $ 55,219 $ 130,811 Unearned lease income (17,717 ) (4,293 ) (22,010 ) (10,338 ) (9,523 ) (19,861 ) Initial direct costs and deferred fees 5,055 793 5,848 2,781 1,670 4,451 Total Leases $ 109,934 $ 28,539 $ 138,473 $ 68,035 $ 47,366 $ 115,401 C. Non-Performing Loans and Leases (1) September 30, 2018 December 31, 2017 (dollars in thousands) Originated Acquired Total Loans and Leases Originated Acquired Total Loans and Leases Commercial mortgage $ — $ 735 $ 735 $ 90 $ 782 $ 872 Home equity lines and loans 1,692 241 1,933 1,221 260 1,481 Residential mortgage 1,968 802 2,770 1,505 2,912 4,417 Construction 291 — 291 — — — Commercial and industrial 925 857 1,782 826 880 1,706 Consumer 42 75 117 — — — Leases 479 883 1,362 103 — 103 Total non-performing loans and leases $ 5,397 $ 3,593 $ 8,990 $ 3,745 $ 4,834 $ 8,579 (1) Purchased credit-impaired loans, which have been recorded at their fair values at acquisition, and which are performing, are excluded from this table, with the exception of $393 thousand and $167 thousand of purchased credit-impaired loans as of September 30, 2018 and December 31, 2017 , respectively, which became non-performing subsequent to acquisition. D. Purchased Credit-Impaired Loans The outstanding principal balance and related carrying amount of purchased credit-impaired loans, for which the Corporation applies ASC 310-30, Accounting for Purchased Loans with Deteriorated Credit Quality , to account for the interest earned, as of the dates indicated, are as follows: (dollars in thousands) September 30, December 31, Outstanding principal balance $ 38,062 $ 46,543 Carrying amount (1) $ 27,519 $ 30,849 (1) Includes $393 thousand and $173 thousand of purchased credit-impaired loans as of September 30, 2018 and December 31, 2017 , respectively, for which the Corporation could not estimate the timing or amount of expected cash flows to be collected at acquisition, and for which no accretable yield is recognized. Additionally, the table above includes $393 thousand and $167 thousand of purchased credit-impaired loans as of September 30, 2018 and December 31, 2017 , respectively, which became non-performing subsequent to acquisition, which are disclosed in Note 5C, above, and which also have no accretable yield. The following table presents changes in the accretable discount on purchased credit-impaired loans, for which the Corporation applies ASC 310-30, for the nine months ended September 30, 2018 : (dollars in thousands) Accretable Discount Balance, December 31, 2017 $ 4,083 Accretion (1,819 ) Reclassifications from nonaccretable difference 609 Additions/adjustments 329 Balance, September 30, 2018 $ 3,202 E. Age Analysis of Past Due Loans and Leases The following tables present an aging of all portfolio loans and leases as of the dates indicated: Accruing Loans and Leases As of September 30, 2018 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ — $ 2,468 $ — $ 2,468 $ 1,615,290 $ 1,617,758 $ 735 $ 1,618,493 Home equity lines and loans 324 — — 324 205,549 205,873 1,933 207,806 Residential mortgage 2,218 179 — 2,397 462,235 464,632 2,770 467,402 Construction 488 — — 488 177,714 178,202 291 178,493 Commercial and industrial 1,115 1,255 — 2,370 718,847 721,217 1,782 722,999 Consumer 46 23 — 69 47,623 47,692 117 47,809 Leases 751 252 — 1,003 136,108 137,111 1,362 138,473 Total portfolio loans and leases $ 4,942 $ 4,177 $ — $ 9,119 $ 3,363,366 $ 3,372,485 $ 8,990 $ 3,381,475 Accruing Loans and Leases As of December 31, 2017 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ 1,366 $ 2,428 $ — $ 3,794 $ 1,518,711 $ 1,522,505 $ 872 $ 1,523,377 Home equity lines and loans 338 10 — 348 216,446 216,794 1,481 218,275 Residential mortgage 1,386 79 — 1,465 453,004 454,469 4,417 458,886 Construction — — — — 212,454 212,454 — 212,454 Commercial and industrial 658 286 — 944 716,662 717,606 1,706 719,312 Consumer 1,106 — — 1,106 37,047 38,153 — 38,153 Leases 125 177 — 302 114,996 115,298 103 115,401 Total portfolio loans and leases $ 4,979 $ 2,980 $ — $ 7,959 $ 3,269,320 $ 3,277,279 $ 8,579 $ 3,285,858 *Included as “current” are $720 thousand and $4.1 million of loans and leases as of September 30, 2018 and December 31, 2017 , respectively, which are classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent. The following tables present an aging of originated portfolio loans and leases as of the dates indicated: Accruing Loans and Leases As of September 30, 2018 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ — $ 76 $ — $ 76 $ 1,259,321 $ 1,259,397 $ — $ 1,259,397 Home equity lines and loans 250 — — 250 178,126 178,376 1,692 180,068 Residential mortgage 1,475 — — 1,475 377,594 379,069 1,968 381,037 Construction 488 — — 488 157,912 158,400 291 158,691 Commercial and industrial 1,051 1,255 — 2,306 614,969 617,275 925 618,200 Consumer 46 23 — 69 44,722 44,791 42 44,833 Leases 407 115 — 522 108,933 109,455 479 109,934 Total originated portfolio loans and leases $ 3,717 $ 1,469 $ — $ 5,186 $ 2,741,577 $ 2,746,763 $ 5,397 $ 2,752,160 Accruing Loans and Leases As of December 31, 2017 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ 1,255 $ 81 $ — $ 1,336 $ 1,120,901 $ 1,122,237 $ 90 $ 1,122,327 Home equity lines and loans 26 — — 26 182,036 182,062 1,221 183,283 Residential mortgage 721 — — 721 358,709 359,430 1,505 360,935 Construction — — — — 128,266 128,266 — 128,266 Commercial and industrial 439 236 — 675 587,803 588,478 826 589,304 Consumer 21 — — 21 35,125 35,146 — 35,146 Leases 125 177 — 302 67,630 67,932 103 68,035 Total originated portfolio loans and leases $ 2,587 $ 494 $ — $ 3,081 $ 2,480,470 $ 2,483,551 $ 3,745 $ 2,487,296 *Included as “current” are $720 thousand and $4.0 million of loans and leases as of September 30, 2018 and December 31, 2017 , respectively, which are classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent. The following tables present an aging of acquired portfolio loans and leases as of the dates indicated: Accruing Loans and Leases As of September 30, 2018 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ — $ 2,392 $ — $ 2,392 $ 355,969 $ 358,361 $ 735 $ 359,096 Home equity lines and loans 74 — — 74 27,423 27,497 241 27,738 Residential mortgage 743 179 — 922 84,641 85,563 802 86,365 Construction — — — — 19,802 19,802 — 19,802 Commercial and industrial 64 — — 64 103,878 103,942 857 104,799 Consumer — — — — 2,901 2,901 75 2,976 Leases 344 137 — 481 27,175 27,656 883 28,539 Total acquired portfolio loans and leases $ 1,225 $ 2,708 $ — $ 3,933 $ 621,789 $ 625,722 $ 3,593 $ 629,315 Accruing Loans and Leases As of December 31, 2017 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ 111 $ 2,347 $ — $ 2,458 $ 397,810 $ 400,268 $ 782 $ 401,050 Home equity lines and loans 312 10 — 322 34,410 34,732 260 34,992 Residential mortgage 665 79 — 744 94,295 95,039 2,912 97,951 Construction — — — — 84,188 84,188 — 84,188 Commercial and industrial 219 50 — 269 128,859 129,128 880 130,008 Consumer 1,085 — — 1,085 1,922 3,007 — 3,007 Leases — — — — 47,366 47,366 — 47,366 Total acquired portfolio loans and leases $ 2,392 $ 2,486 $ — $ 4,878 $ 788,850 $ 793,728 $ 4,834 $ 798,562 *Included as “current” are $0 and $102 thousand of loans and leases as of September 30, 2018 and December 31, 2017 , respectively, which are classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent. F. Allowance for Loan and Lease Losses (the “Allowance”) The following tables detail the roll-forward of the Allowance for the three and nine months ended September 30, 2018 and 2017 : (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total Balance, $ 7,550 $ 1,086 $ 1,926 $ 937 $ 5,038 $ 246 $ 742 $ — $ 17,525 Charge-offs (74 ) (225 ) (42 ) — (1,069 ) (165 ) (2,416 ) — (3,991 ) Recoveries 8 1 55 1 17 5 232 — 319 Provision for loan and lease losses 60 30 (121 ) 303 1,319 232 3,008 — 4,831 Balance, $ 7,544 $ 892 $ 1,818 $ 1,241 $ 5,305 $ 318 $ 1,566 $ — $ 18,684 (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total Balance, $ 8,033 $ 933 $ 1,933 $ 1,158 $ 5,672 $ 289 $ 1,380 $ — $ 19,398 Charge-offs (58 ) — (42 ) — (319 ) (73 ) (1,068 ) — (1,560 ) Recoveries 2 — 54 — 16 2 108 — 182 Provision for loan and lease losses (433 ) (41 ) (127 ) 83 (64 ) 100 1,146 — 664 Balance, $ 7,544 $ 892 $ 1,818 $ 1,241 $ 5,305 $ 318 $ 1,566 $ — $ 18,684 (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total Balance, $ 6,227 $ 1,255 $ 1,917 $ 2,233 $ 5,142 $ 153 $ 559 $ — $ 17,486 Charge-offs — (676 ) (158 ) — (560 ) (96 ) (924 ) — (2,414 ) Recoveries 9 — 85 3 18 5 271 — 391 Provision for loan and lease losses 1,096 513 (23 ) (1,306 ) 280 148 833 — 1,541 Balance, $ 7,332 $ 1,092 $ 1,821 $ 930 $ 4,880 $ 210 $ 739 $ — $ 17,004 (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total Balance, $ 6,608 $ 1,214 $ 1,776 $ 1,111 $ 4,813 $ 177 $ 700 $ — $ 16,399 Charge-offs — (69 ) (88 ) — (301 ) (37 ) (411 ) — (906 ) Recoveries 3 — 85 1 2 1 86 — 178 Provision for loan and lease losses 721 (53 ) 48 (182 ) 366 69 364 — 1,333 Balance, $ 7,332 $ 1,092 $ 1,821 $ 930 $ 4,880 $ 210 $ 739 $ — $ 17,004 The following tables detail the allocation of the Allowance for all portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ 19 $ 228 $ — $ 11 $ 20 $ — $ — $ 278 Collectively evaluated for impairment 7,544 873 1,590 1,241 5,294 298 1,566 — 18,406 Purchased credit-impaired (1) — — — — — — — — — Total $ 7,544 $ 892 $ 1,818 $ 1,241 $ 5,305 $ 318 $ 1,566 $ — $ 18,684 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ 19 $ 230 $ — $ 5 $ 4 $ — $ — $ 258 Collectively evaluated for impairment 7,550 1,067 1,696 937 5,033 242 742 — 17,267 Purchased credit-impaired (1) — — — — — — — — — Total $ 7,550 $ 1,086 $ 1,926 $ 937 $ 5,038 $ 246 $ 742 $ — $ 17,525 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following tables detail the carrying value for all portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 736 $ 2,602 $ 5,940 $ 291 $ 1,757 $ 144 $ — $ 11,470 Collectively evaluated for impairment 1,609,375 204,694 461,462 175,802 705,015 47,665 138,473 3,342,486 Purchased credit-impaired (1) 8,382 510 — 2,400 16,227 — — 27,519 Total $ 1,618,493 $ 207,806 $ 467,402 $ 178,493 $ 722,999 $ 47,809 $ 138,473 $ 3,381,475 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As of Commercial Home Equity Residential Construction Commercial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 2,128 $ 2,162 $ 7,726 $ — $ 1,897 $ 27 $ — $ 13,940 Collectively evaluated for impairment 1,503,825 215,604 451,160 204,088 712,865 38,126 115,401 3,241,069 Purchased credit-impaired (1) 17,424 509 — 8,366 4,550 — — 30,849 Total $ 1,523,377 $ 218,275 $ 458,886 $ 212,454 $ 719,312 $ 38,153 $ 115,401 $ 3,285,858 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following tables detail the allocation of the Allowance for originated portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ 19 $ 179 $ — $ 4 $ 4 $ — $ 206 Collectively evaluated for impairment 7,544 873 1,590 1,241 5,294 298 1,566 18,406 Total $ 7,544 $ 892 $ 1,769 $ 1,241 $ 5,298 $ 302 $ 1,566 $ 18,612 As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ 19 $ 180 $ — $ 5 $ 4 $ — $ 208 Collectively evaluated for impairment 7,550 1,067 1,696 937 5,033 242 742 17,267 Total $ 7,550 $ 1,086 $ 1,876 $ 937 $ 5,038 $ 246 $ 742 $ 17,475 The following tables detail the carrying value for originated portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Home Equity Residential Construction Commercial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ — $ 2,361 $ 4,268 $ 291 $ 1,294 $ 68 $ — $ 8,282 Collectively evaluated for impairment 1,259,397 177,707 376,769 158,400 616,906 44,765 109,934 2,743,878 Total $ 1,259,397 $ 180,068 $ 381,037 $ 158,691 $ 618,200 $ 44,833 $ 109,934 $ 2,752,160 As of Commercial Home Equity Residential Construction Commercial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 1,345 $ 1,902 $ 4,418 $ — $ 1,186 $ 27 $ — $ 8,878 Collectively evaluated for impairment 1,120,982 181,381 356,517 128,266 588,118 35,119 68,035 2,478,418 Total $ 1,122,327 $ 183,283 $ 360,935 $ 128,266 $ 589,304 $ 35,146 $ 68,035 $ 2,487,296 The following tables detail the allocation of the Allowance for acquired portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Home Equity Residential Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ 49 $ — $ 7 $ 16 $ — $ 72 Collectively evaluated for impairment — — — — — — — — Purchased credit-impaired (1) — — — — — — — — Total $ — $ — $ 49 $ — $ 7 $ 16 $ — $ 72 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As of Commercial Home Equity Residential Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ 50 $ — $ — $ — $ — $ 50 Collectively evaluated for impairment — — — — — — — — Purchased credit-impaired (1) — — — — — — — — Total $ — $ — $ 50 $ — $ — $ — $ — $ 50 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following tables detail the carrying value for acquired portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 736 $ 241 $ 1,672 $ — $ 463 $ 76 $ — $ 3,188 Collectively evaluated for impairment 349,978 26,987 84,693 17,402 88,109 2,900 28,539 598,608 Purchased credit-impaired (1) 8,382 510 — 2,400 16,227 — — 27,519 Total $ 359,096 $ 27,738 $ 86,365 $ 19,802 $ 104,799 $ 2,976 $ 28,539 $ 629,315 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 783 $ 260 $ 3,308 $ — $ 711 $ — $ — $ 5,062 Collectively evaluated for impairment 382,843 34,223 94,643 75,822 124,747 3,007 47,366 762,651 Purchased credit-impaired (1) 17,424 509 — 8,366 4,550 — — 30,849 Total $ 401,050 $ 34,992 $ 97,951 $ 84,188 $ 130,008 $ 3,007 $ 47,366 $ 798,562 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As part of the process of determining the Allowance for the different segments of the loan and lease portfolio, management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by both in-house staff as well as external loan reviewers. The result of these reviews is reflected in the risk grade assigned to each loan. These internally assigned grades are as follows: • Pass – Loans considered satisfactory with no indications of deterioration. • Special mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. • Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. • Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. In addition, for the remaining segments of the loan and lease portfolio, which include residential mortgage, home equity lines and loans, consumer, and leases, the credit quality indicator used to determine this component of the Allowance is based on performance status. The following tables detail the carrying value of all portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of September 30, 2018 and December 31, 2017 : Credit Risk Profile by Internally Assigned Grade Commercial Mortgage Construction Commercial and Industrial Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Pass $ 1,592,174 $ 1,490,862 $ 168,897 $ 193,227 $ 697,913 $ 711,145 $ 2,458,984 $ 2,395,234 Special Mention 2,321 13,448 934 3,902 2,425 889 5,680 18,239 Substandard 23,447 18,194 8,662 15,325 22,660 6,013 54,769 39,532 Doubtful 551 873 — — 1 1,265 552 2,138 Total $ 1,618,493 $ 1,523,377 $ 178,493 $ 212,454 $ 722,999 $ 719,312 $ 2,519,985 $ 2,455,143 Credit Risk Profile by Payment Activity Residential Mortgage Home Equity Lines Consumer Leases Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Performing $ 464,632 $ 454,469 $ 205,873 $ 216,794 $ 47,692 $ 38,153 $ 137,111 $ 115,298 $ 855,308 $ 824,714 Non-performing 2,770 4,417 1,933 1,481 117 — 1,362 103 6,182 6,001 Total $ 467,402 $ 458,886 $ 207,806 $ 218,275 $ 47,809 $ 38,153 $ 138,473 $ 115,401 $ 861,490 $ 830,715 The following tables detail the carrying value of originated portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of September 30, 2018 and December 31, 2017 : Credit Risk Profile by Internally Assigned Grade Commercial Mortgage Construction Commercial and Industrial Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Pass $ 1,252,916 $ 1,114,171 $ 152,429 $ 126,260 $ 610,730 $ 586,896 $ 2,016,075 $ 1,827,327 Special Mention — — — — 2,198 664 2,198 664 Substandard 6,481 8,156 6,262 2,006 5,271 1,389 18,014 11,551 Doubtful — — — — 1 355 1 355 Total $ 1,259,397 $ 1,122,327 $ 158,691 $ 128,266 $ 618,200 $ 589,304 $ 2,036,288 $ 1,839,897 Credit Risk Profile by Payment Activity Residential Mortgage Home Equity Lines Consumer Leases Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Performing $ 379,069 $ 359,430 $ 178,376 $ 182,062 $ 44,791 $ 35,146 $ 109,455 $ 67,932 $ 711,691 $ 644,570 Non-performing 1,968 1,505 1,692 1,221 42 — 479 103 4,181 2,829 Total $ 381,037 $ 360,935 $ 180,068 $ 183,283 $ 44,833 $ 35,146 $ 109,934 $ 68,035 $ 715,872 $ 647,399 The following tables detail the carrying value of acquired portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of September 30, 2018 and December 31, 2017 : Credit Risk Profile by Internally Assigned Grade Commercial Mortgage Construction Commercial and Industrial Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Pass $ 339,258 $ 376,691 $ 16,468 $ 66,967 $ 87,183 $ 124,249 $ 442,909 $ 567,907 Special Mention 2,321 13,448 934 3,902 227 225 3,482 17,575 Substandard 16,966 10,038 2,400 13,319 17,389 4,624 36,755 27,981 Doubtful 551 873 — — — 910 551 1,783 Total $ 359,096 $ 401,050 $ 19,802 $ 84,188 $ 104,799 $ 130,008 $ 483,697 $ 615,246 Credit Risk Profile by Payment Activity Residential Mortgage Home Equity Lines Consumer Leases Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Performing $ 85,563 $ 95,039 $ 27,497 $ 34,732 $ 2,901 $ 3,007 $ 27,656 $ 47,366 $ 143,617 $ 180,144 Non-performing 802 2,912 241 260 75 — 883 — 2,001 3,172 Total $ 86,365 $ 97,951 $ 27,738 $ 34,992 $ 2,976 $ 3,007 $ 28,539 $ 47,366 $ 145,618 $ 183,316 G. Troubled Debt Restructurings (“TDRs”) The restructuring of a loan is considered a “troubled debt restructuring” if both of the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the creditor has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan, and (e) for leases, a reduced lease payment. A less common concession granted is the forgiveness of a portion of the principal. The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower, were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender. The following table presents the balance of TDRs as of the indicated dates: (dollars in thousands) September 30, 2018 December 31, 2017 TDRs included in nonperforming loans and leases $ 1,208 $ 3,289 TDRs in compliance with modified terms 4,316 5,800 Total TDRs $ 5,524 $ 9,089 The following table presents information regarding loan and lease modifications categorized as TDRs for the three months ended September 30, 2018 : For the Three Months Ended September 30, 2018 (dollars in thousands) Number of Contracts Pre-Modification Outstanding Post-Modification Outstanding Home equity loans and lines — $ — $ — Residential mortgages 4 406 430 Leases — — — Total 4 $ 406 $ 430 The following table presents information regarding the types of loan and lease modifications made for the three months ended September 30, 2018 : Number of Contracts Loan Term Extension Interest Rate Change and Term Extension Interest Rate Change and/or Interest-Only Period Contractual Payment Reduction (Leases only) Temporary Payment Deferral Home equity loans and lines — — — — — Residential mortgages 1 — — — 3 Leases — — — — — Total 1 — — — 3 The following table presents information regarding loan and lease modifications categorized as TDRs for the nine months ended September 30, 2018 : For the Nine Months Ended September 30, 2018 (dollars in thousands) Number of Contracts Pre-Modification Outstanding Post-Modification Outstanding Home equity loans and lines 1 $ 8 $ 8 Residential mortgages 6 625 649 Commercial and industrial 1 18 18 Leases 2 33 33 Total 10 $ 684 $ 708 The following table presents information regarding the types of loan and lease modifications made for the nine months ended September 30, 2018 : Number of Contracts Loan Term Extension Interest Rate Change and Term Extension Interest Rate Change and/or Interest-Only Period Contractual Payment Reduction (Leases only) Temporary Payment Deferral Home equity loans and lines — 1 — — — Residential mortgages 2 1 — — 3 Commercial and industrial — 1 — — — Leases — — — 2 — Total 2 3 — 2 3 During the nine months ended September 30, 2018 , one home equity line of credit with a principal balance of $25 thousand and one lease with a principal balance of $50 thousand , which had been previously modified to troubled debt restructurings defaulted and were charged off. H. Impaired Loans The following tables detail the recorded investment and principal balance of impaired loans by portfolio segment, their related Allowance and interest income recognized for the three and nine months ended September 30, 2018 and 2017 (purchased credit-impaired loans are not included in the tables): As of and for the Three Months Ended Recorded Investment** Principal Balance Related Allowance Average Principal Balance Interest Income Recognized Cash-Basis Interest Income Recognized (dollars in thousands) Impaired loans with related allowance: Home equity lines and loans $ 567 $ 567 $ 19 $ 569 $ 6 $ — Residential mortgage 1,699 1,699 228 1,702 20 — Commercial and industrial 25 25 12 25 — — Consumer 58 58 19 58 — — Total $ 2,349 $ 2,349 $ 278 $ 2,354 $ 26 $ — Impaired loans without related allowance*: Commercial mortgage $ 735 $ 793 $ — $ 930 $ — $ — Home equity lines and loans 2,035 2,096 — 2,064 2 — Residential mortgage 4,242 4,328 — 4,299 24 — Construction 291 291 — 294 — — Commercial and industrial 1,733 2,665 — 2,138 5 — Consumer 86 86 — 87 — — Total $ 9,122 $ 10,259 $ — $ 9,812 $ 31 $ — Grand total $ 11,471 $ 12,608 $ 278 $ 12,166 $ 57 $ — * The table above does not include the recorded investment of $1.4 million of impaired leases without a related Allowance. **Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. As of and for the Nine Months Ended Recorded Investment** Principal Balance Related Allowance Average Principal Balance Interest Income Recognized Cash-Basis Interest Income Recognized (dollars in thousands) Impaired loans with related allowance: Home equity lines and loans $ 567 $ 567 $ 19 $ 572 $ 17 $ — Residential mortgage 1,699 1,699 228 1,709 60 — Commercial and industrial 25 25 12 29 1 — Consumer 58 58 19 58 1 — Total $ 2,349 $ |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | Mortgage Servicing Rights The following table summarizes the Corporation’s activity related to mortgage servicing rights (“MSRs”) for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, (dollars in thousands) 2018 2017 Balance, beginning of period $ 5,511 $ 5,682 Additions — 282 Amortization (206 ) (229 ) Recovery / (Impairment) 23 (3 ) Balance, end of period $ 5,328 $ 5,732 Fair value $ 6,586 $ 6,146 Nine Months Ended September 30, (dollars in thousands) 2018 2017 Balance, beginning of period $ 5,861 $ 5,582 Additions 16 770 Amortization (623 ) (571 ) Recovery / (Impairment) 74 (49 ) Balance, end of period $ 5,328 $ 5,732 Fair value $ 6,586 $ 6,146 Residential mortgage loans serviced for others $ 596,162 $ 647,997 As of September 30, 2018 , and December 31, 2017 , key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10% and 20% adverse changes in those assumptions are as follows: (dollars in thousands) September 30, December 31, Fair value amount of MSRs $ 6,586 $ 6,397 Weighted average life (in years) 6.6 6.1 Prepayment speeds (constant prepayment rate)* 8.7 % 10.3 % Impact on fair value: 10% adverse change $ (85 ) $ (194 ) 20% adverse change $ (190 ) $ (394 ) Discount rate 9.55 % 9.55 % Impact on fair value: 10% adverse change $ (245 ) $ (225 ) 20% adverse change $ (472 ) $ (434 ) * Represents the weighted average prepayment rate for the life of the MSR asset. At September 30, 2018 and December 31, 2017 the fair value of the MSRs was $6.6 million and $6.4 million , respectively. The fair value of the MSRs for these dates was determined using values obtained from a third party which utilizes a valuation model which calculates the present value of estimated future servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds and discount rates. Mortgage loan prepayment speed is the annual rate at which borrowers are forecasted to repay their mortgage loan principal and is based on historical experience. The discount rate is used to determine the present value of future net servicing income. Another key assumption in the model is the required rate of return the market would expect for an asset with similar risk. These assumptions can, and generally will, change quarterly valuations as market conditions and interest rates change. Management reviews, annually, the process utilized by its independent third-party valuation experts. These assumptions and sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on a 10% variation in assumptions generally cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which could magnify or counteract the sensitivities. |
Goodwill and Intangibles Assets
Goodwill and Intangibles Assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles Assets | Goodwill and Intangible Assets The following table presents activity in the Corporation's goodwill by its reporting units and finite-lived and indefinite-lived intangible assets, other than MSRs, for the nine months ended September 30, 2018 : (dollars in thousands) Balance Additions Adjustments Amortization Balance Amortization Goodwill – Wealth $ 20,412 $ — $ — $ — $ 20,412 Indefinite Goodwill – Banking 153,545 — 3,298 — 156,843 Indefinite Goodwill – Insurance 5,932 677 — — 6,609 Indefinite Total Goodwill $ 179,889 $ 677 $ 3,298 $ — $ 183,864 Core deposit intangible $ 7,380 $ — $ — $ (1,108 ) $ 6,272 10 years Customer relationships 14,173 994 — (1,271 ) 13,896 10 to 20 years Non-compete agreements 1,319 — — (171 ) 1,148 5 to 10 years Trade name 2,322 — — (49 ) 2,273 3 years to Indefinite Domain name 151 — — — 151 Indefinite Favorable lease assets 621 — — (60 ) 561 1 to 16 years Total Intangible Assets $ 25,966 $ 994 $ — $ (2,659 ) $ 24,301 Total Goodwill and Intangible Assets $ 205,855 $ 1,671 $ 3,298 $ (2,659 ) $ 208,165 Management conducted its annual impairment tests for goodwill and indefinite-lived intangible assets as of October 31, 2017 using generally accepted valuation methods. Management determined that no impairment of goodwill or indefinite-lived intangible assets was identified as a result of the annual impairment analyses. Future impairment testing will be conducted each October 31, unless a triggering event occurs in the interim that would suggest possible impairment, in which case it would be tested as of the date of the triggering event. For the eleven months ended September 30, 2018 , management determined there were no events that would necessitate impairment testing of goodwill or indefinite-lived intangible assets. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Deposits | Deposits The following table details the components of deposits: September 30, December 31, (dollars in thousands) Interest-bearing demand $ 578,243 $ 481,336 Money market 812,027 862,639 Savings 286,266 338,572 Retail time deposits 561,123 532,202 Wholesale non-maturity deposits 24,040 62,276 Wholesale time deposits 261,164 171,929 Total interest-bearing deposits $ 2,522,863 $ 2,448,954 Noninterest-bearing deposits 834,363 924,844 Total deposits $ 3,357,226 $ 3,373,798 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term FHLB Advances | 9 Months Ended |
Sep. 30, 2018 | |
Long-term Federal Home Loan Bank Advances [Abstract] | |
Short-Term Borrowings and Long-Term FHLB Advances | Short-Term Borrowings and Long-Term FHLB Advances A. Short-term borrowings The Corporation’s short-term borrowings (original maturity of one year or less), which consist of funds obtained from overnight repurchase agreements with commercial customers, FHLB advances with original maturities of one year or less and overnight fed funds, are detailed below. A summary of short-term borrowings is as follows: (dollars in thousands) September 30, December 31, Repurchase agreements* – commercial customers $ 21,548 $ 25,865 Short-term FHLB advances 204,950 212,000 Total short-term borrowings $ 226,498 $ 237,865 * Overnight repurchase agreements with no expiration date The following table sets forth information concerning short-term borrowings: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Balance at period-end $ 226,498 $ 180,874 $ 226,498 $ 180,874 Maximum amount outstanding at any month end $ 302,932 $ 184,578 $ 302,932 $ 184,578 Average balance outstanding during the period $ 218,551 $ 182,845 $ 205,046 $ 110,268 Weighted-average interest rate: As of the period-end 2.18 % 1.17 % 2.18 % 1.17 % Paid during the period 2.09 % 1.19 % 1.85 % 0.98 % Average balances outstanding during the year represent daily average balances and average interest rates represent interest expense divided by the related average balance. B. Long-term FHLB Advances As of September 30, 2018 and December 31, 2017 , the Corporation had $72.8 million and $139.1 million , respectively, of long-term FHLB advances (original maturities exceeding one year). The following table presents the remaining periods until maturity of long-term FHLB advances: (dollars in thousands) September 30, December 31, Within one year $ 28,106 $ 83,766 Over one year through five years 44,735 55,374 Total $ 72,841 $ 139,140 The following table presents rate and maturity information on FHLB advances and other borrowings: Maturity Range (1) Weighted Average Rate (1) Coupon Rate (1) Balance at Description From To From To September 30, December 31, Bullet maturity – fixed rate 10/1/2018 1/2/2020 1.32 % 1.31 % 2.45 % $ 72,841 $ 118,131 Convertible-fixed (2) N/A N/A N/A N/A N/A — 21,009 Total $ 72,841 $ 139,140 (1)Maturity range, weighted average rate and coupon rate range refers to September 30, 2018 balances. (2) FHLB advances whereby the FHLB has the option, at predetermined times, to convert the fixed interest rate to an adjustable interest rate indexed to the London Interbank Offered Rate (“LIBOR”). The Corporation has the option to prepay these advances, without penalty, if the FHLB elects to convert the interest rate to an adjustable rate. As of September 30, 2018 , the Corporation held no FHLB advances with this convertible feature. C. Other Borrowings Information In connection with its FHLB borrowings, the Corporation is required to hold the capital stock of the FHLB. The amount of capital stock held was $14.7 million at September 30, 2018 , and $20.1 million at December 31, 2017 . The carrying amount of the FHLB stock approximates its redemption value. The level of required investment in FHLB stock is based on the balance of outstanding borrowings the Corporation has from the FHLB. Although FHLB stock is a financial instrument that represents an equity interest in the FHLB, it does not have a readily determinable fair value. FHLB stock is generally viewed as a long-term investment. Accordingly, when evaluating FHLB stock for impairment, its value should be determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Corporation had a maximum borrowing capacity with the FHLB of $1.50 billion as of September 30, 2018 of which the unused capacity was $1.20 billion . In addition, there were $79.0 million in the overnight federal funds line available and $139.6 million of Federal Reserve Discount Window capacity. |
Subordinated Notes
Subordinated Notes | 9 Months Ended |
Sep. 30, 2018 | |
Subordinated Debt [Abstract] | |
Subordinated Notes | Subordinated Notes On December 13, 2017, the Corporation completed the issuance of $70.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2027 (the "2027 Notes") in an underwritten public offering. On August 6, 2015, the Corporation completed the issuance of $30.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2025 (the "2025 Notes") in a private placement transaction to institutional accredited investors. The net proceeds of both offerings increased Tier II regulatory capital at the Corporation level. The following tables detail the subordinated notes, including debt issuance costs, as of September 30, 2018 , and December 31, 2017 : September 30, 2018 December 31, 2017 (dollars in thousands) Balance Rate (1)(2) Balance Rate (1)(2) Subordinated notes – due 2027 $ 68,855 4.25 % $ 68,829 4.25 % Subordinated notes – due 2025 29,627 4.75 % 29,587 4.75 % Total subordinated notes $ 98,482 $ 98,416 (1)The 2027 Notes bear interest at an annual fixed rate of 4.25% from the date of issuance until December 14, 2022, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 2.050% until December 15, 2027, or any early redemption date. (2)The 2025 Notes bear interest at an annual fixed rate of 4.75% from the date of issuance until August 14, 2020, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 3.068% until August 15, 2025, or any early redemption date. |
Junior Subordinated Debentures
Junior Subordinated Debentures | 9 Months Ended |
Sep. 30, 2018 | |
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract] | |
Junior Subordinated Debentures | Junior Subordinated Debentures In connection with the RBPI Merger, the Corporation acquired Royal Bancshares Capital Trust I (“Trust I”) and Royal Bancshares Capital Trust II (“Trust II”) (collectively, the “Trusts”), which were utilized for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. Although the Corporation owns $774 thousand of the common securities of Trust I and Trust II, the Trusts are not consolidated into the Corporation’s Consolidated Financial Statements as the Corporation is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, RBPI issued, and the Corporation assumed as a result of the RBPI Merger, junior subordinated debentures to the Trusts of $10.7 million each, totaling $21.4 million representing the Corporation’s maximum exposure to loss. The junior subordinated debentures incur interest at a coupon rate of 4.48% as of September 30, 2018 . The rate resets quarterly based on 3-month LIBOR plus 2.15% . Each of Trust I and Trust II issued an aggregate principal amount of $12.5 million of capital securities initially bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to an unaffiliated investment vehicle and an aggregate principal amount of $387 thousand of common securities bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to the Corporation. As a result of the RBPI Merger, the Corporation has fully and unconditionally guaranteed all of the obligations of the Trusts, including any distributions and payments on liquidation or redemption of the capital securities. The rights of holders of common securities of the Trusts are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of the Trusts are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, the Trusts will dissolve on December 15, 2034. The junior subordinated debentures are the sole assets of Trusts, mature on December 15, 2034, and may be called at par by the Corporation any time after December 15, 2009. The Corporation records its investments in the Trusts’ common securities of $387 thousand each as investments in unconsolidated entities and records dividend income upon declaration by Trust I and Trust II. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivative financial instruments involve, to varying degrees, interest rate, market and credit risk. Management manages these risks as part of its asset and liability management process and through credit policies and procedures. Management seeks to minimize counterparty credit risk by establishing credit limits and collateral agreements and utilizes certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The derivative transactions entered into by the Corporation are an economic hedge of a derivative offerings to Bank customers. The Corporation does not use derivative financial instruments for trading purposes. Customer Derivatives – Interest Rate Swaps . The Corporation enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Corporation originates variable-rate loans with customers in addition to interest rate swap agreements, which serve to effectively swap the customers’ variable-rate loans into fixed-rate loans. The Corporation then enters into corresponding swap agreements with swap dealer counterparties to economically hedge its exposure on the variable and fixed components of the customer agreements. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815 and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820. As of September 30, 2018 , there were no fair value adjustments related to credit quality. Risk Participation Agreements . The Corporation may enter into a risk participation agreement (“RPA”) with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed. This type of derivative is referred to as an “RPA sold.” In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the Corporation has provided a loan structured with a derivative, the Corporation may purchase an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared. This type of derivative is referred to as an “RPA purchased.” The following tables detail the derivative instruments as of September 30, 2018 and December 31, 2017 : Asset Derivatives Liability Derivatives (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Derivatives not designated as hedging instruments As of September 30, 2018: Customer derivatives – interest rate swaps $ 295,566 $ 5,843 $ 295,566 $ 5,843 RPAs sold — — 865 1 RPAs purchased 35,464 43 — — Total derivatives $ 331,030 $ 5,886 $ 296,431 $ 5,844 As of December 31, 2017: Customer derivatives – interest rate swaps $ 124,627 $ 1,895 $ 124,627 $ 1,895 RPAs sold — — 899 3 RPAs purchased 14,710 21 — — Total derivatives $ 139,337 $ 1,916 $ 125,526 $ 1,898 The Corporation has International Swaps and Derivatives Association agreements with third parties that requires a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties at September 30, 2018 and December 31, 2017 was $420 thousand and $1.3 million , respectively. The amount of collateral posted with third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $1.8 million and $1.6 million as of September 30, 2018 and December 31, 2017 , respectively. |
Accounting for Uncertainty in I
Accounting for Uncertainty in Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Accounting for Uncertainty in Income Taxes | Accounting for Uncertainty in Income Taxes The Corporation recognizes the financial statement benefit of a tax position only after determining that the Corporation would be more likely than not to sustain the position following an examination. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority. The Corporation is subject to income taxes in the United States federal jurisdiction and multiple state jurisdictions. The Corporation is no longer subject to U.S. federal income tax examination by taxing authorities for years before 2014. The Corporation’s policy is to record interest and penalties on uncertain tax positions as income tax expense. No interest or penalties were accrued for the three or nine months ended September 30, 2018 or 2017 . |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Dividend On October 17, 2018, the Corporation’s Board of Directors declared a regular quarterly dividend of $0.25 per share payable December 1, 2018 to shareholders of record as of November 1, 2018. During the third quarter of 2018, the Corporation paid or accrued, as applicable, a regular quarterly dividend of $0.25 per share. This dividend totaled $5.1 million , based on outstanding shares and restricted stock units as of August 1, 2018 of 20,443,918 shares. S-3 Shelf Registration Statement and Offerings Thereunder In May 2018, the Corporation filed a shelf registration statement on Form S-3, SEC File No. 333-224849 (the “Shelf Registration Statement”). The Shelf Registration Statement allows the Corporation to raise additional capital from time to time through offers and sales of registered securities consisting of common stock, debt securities, warrants, purchase contracts, rights and units or units consisting of any combination of the foregoing securities. The Corporation may sell these securities using the prospectus in the Shelf Registration Statement, together with applicable prospectus supplements, from time to time, in one or more offerings. In addition, the Corporation has in place a Dividend Reinvestment and Stock Purchase Plan (the “Plan”), which allows it to issue up to 1,500,000 shares of registered common stock. The Plan allows for the grant of a request for waiver (“RFW”) above the Plan’s maximum investment of $120 thousand per account per year. A RFW is granted based on a variety of factors, including the Corporation’s current and projected capital needs, prevailing market prices of the Corporation’s common stock and general economic and market conditions. For the three and nine months ended September 30, 2018 , the Corporation did not issue any shares under the Plan. No RFWs were approved during the three and nine months ended September 30, 2018 . No other sales of equity securities were executed under the Shelf Registration Statement during the three and nine months ended September 30, 2018 . Option Exercises and Vesting of Restricted Stock Units ("RSUs") and Performance Stock Units ("PSUs") three and nine months ended September 30, 2018 , 15,150 shares and 63,825 shares, respectively, were issued pursuant to the exercise of stock options, increasing shareholders’ equity by $349 thousand and $1.5 million , respectively. The increase in shareholders’ equity related to the vesting of RSUs and PSUs, which is recognized over the vesting period through stock based compensation expense, was $708 thousand and $1.9 million for the three and nine months ended September 30, 2018 , respectively. Stock Repurchases On August 6, 2015, the Corporation announced a stock repurchase program (the “2015 Program”) under which the Corporation may repurchase up to 1,200,000 shares of the Corporation’s common stock, at an aggregate purchase price not to exceed $40 million . During the three months ended September 30, 2018 , 14,263 shares were repurchased under the 2015 Program. As of September 30, 2018 , the maximum number of shares remaining authorized for repurchase under the 2015 Program was 175,037 . In addition to the 2015 Program, it is the Corporation’s practice to retire shares to its treasury account upon the vesting of stock awards to certain officers in order to cover the statutory income tax withholdings related to such vestings. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table details the components of accumulated other comprehensive (loss) income for the three and nine month periods ended September 30, 2018 and 2017 : (dollars in thousands) Net Change in Unrealized Gains on Available-for- Sale Investment Securities Net Change in Unfunded Pension Liability Accumulated Other Comprehensive Loss Balance, June 30, 2018 $ (9,669 ) $ (1,522 ) $ (11,191 ) Other comprehensive (loss) income (2,319 ) 108 (2,211 ) Balance, September 30, 2018 $ (11,988 ) $ (1,414 ) $ (13,402 ) Balance, June 30, 2017 $ (433 ) $ (1,131 ) $ (1,564 ) Other comprehensive income 149 15 164 Balance, September 30, 2017 $ (284 ) $ (1,116 ) $ (1,400 ) (dollars in thousands) Net Change in Unrealized Gains on Available-for- Sale Investment Securities Net Change in Unfunded Pension Liability Accumulated Other Comprehensive Loss Balance, December 31, 2017 $ (2,861 ) $ (1,553 ) $ (4,414 ) Other comprehensive (loss) income (9,127 ) 139 (8,988 ) Balance, September 30, 2018 $ (11,988 ) $ (1,414 ) $ (13,402 ) Balance, December 31, 2016 $ (1,231 ) $ (1,178 ) $ (2,409 ) Other comprehensive income 947 62 1,009 Balance, September 30, 2017 $ (284 ) $ (1,116 ) $ (1,400 ) The following table details the amounts reclassified from each component of accumulated other comprehensive loss to each component’s applicable income statement line, for the three and nine month periods ended September 30, 2018 and 2017 : Amount Reclassified from Accumulated Other Comprehensive Loss Description of Accumulated Other Comprehensive Loss Component Three Months Ended Affected Income Statement Category 2018 2017 Net unrealized gain on investment securities available for sale: Realization of gain on sale of investment securities available for sale $ — $ 72 Net gain on sale of available for sale investment securities Realization of gain on transfer of investment securities available for sale to trading — — Other operating income Total $ — $ 72 Income tax effect — 25 Income tax expense Net of income tax $ — $ 47 Net income Unfunded pension liability: Amortization of net loss included in net periodic pension costs* $ 25 $ 24 Other operating expenses Income tax effect 5 8 Income tax expense Net of income tax $ 20 $ 16 Net income Amount Reclassified from Accumulated Other Comprehensive Loss Description of Accumulated Other Comprehensive Loss Component Nine Months Ended Affected Income Statement Category 2018 2017 Net unrealized gain on investment securities available for sale: Realization of gain on sale of investment securities available for sale $ 7 $ 73 Net gain on sale of available for sale investment securities Realization of gain on transfer of investment securities available for sale to trading 417 — Other operating income Total $ 424 $ 73 Income tax effect 89 27 Income tax expense Net of income tax $ 335 $ 46 Net income Unfunded pension liability: Amortization of net loss included in net periodic pension costs* $ 75 $ 71 Other operating expenses Income tax effect 15 25 Income tax expense Net of income tax $ 60 $ 46 Net income *Accumulated other comprehensive loss components are included in the computation of net periodic pension cost. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per common share takes into account the potential dilution that would occur if in-the-money stock options were exercised and converted into common shares and RSUs and PSUs were vested. Proceeds assumed to have been received on option exercises are assumed to be used to purchase shares of the Corporation’s common stock at the average market price during the period, as required by the treasury stock method of accounting. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive. Three Months Ended Nine Months Ended (dollars in thousands except share and per share data) 2018 2017 2018 2017 Numerator: Net income available to common shareholders $ 16,682 $ 10,739 $ 46,656 $ 29,216 Denominator for basic earnings per share – weighted average shares outstanding 20,270,706 17,023,046 20,237,757 16,987,499 Effect of dilutive common shares 167,670 230,936 206,318 254,728 Denominator for diluted earnings per share – adjusted weighted average shares outstanding 20,438,376 17,253,982 20,444,075 17,242,227 Basic earnings per share $ 0.82 $ 0.63 $ 2.31 $ 1.72 Diluted earnings per share $ 0.82 $ 0.62 $ 2.28 $ 1.69 Antidilutive shares excluded from computation of average dilutive earnings per share 22,232 21,621 48,807 47,268 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Corporation’s noninterest income by revenue stream and reportable segment for the three and nine months ended September 30, 2018 and 2017 . Items outside the scope of ASC 606 are noted as such. Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (dollars in thousands) Banking Wealth Consolidated Banking Wealth Consolidated Fees for wealth management services $ — $ 10,343 $ 10,343 $ — $ 9,651 $ 9,651 Insurance commissions — 1,754 1,754 — 1,373 1,373 Capital markets revenue (1) 710 — 710 843 — 843 Service charges on deposit accounts 726 — 726 676 — 676 Loan servicing and other fees (1) 559 — 559 548 — 548 Net gain on sale of loans (1) 631 — 631 799 — 799 Net gain on sale of investment securities available for sale (1) — — — 72 — 72 Net gain on sale of other real estate owned 5 — 5 — — — Dividends on FHLB and FRB stock (1) 375 — 375 217 — 217 Other operating income (2) 3,123 48 3,171 1,364 41 1,405 Total noninterest income $ 6,129 $ 12,145 $ 18,274 $ 4,519 $ 11,065 $ 15,584 (1) Not within the scope of ASC 606. (2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $595 thousand and $520 thousand for the three months ended September 30, 2018 and 2017 , respectively, which are within the scope of ASC 606. Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (dollars in thousands) Banking Wealth Consolidated Banking Wealth Consolidated Fees for wealth management services $ — $ 31,309 $ 31,309 $ — $ 28,761 $ 28,761 Insurance commissions — 5,349 5,349 — 3,079 3,079 Capital markets revenue (1) 3,481 — 3,481 1,796 — 1,796 Service charges on deposit accounts 2,191 — 2,191 1,953 — 1,953 Loan servicing and other fees (1) 1,720 — 1,720 1,570 — 1,570 Net gain on sale of loans (1) 1,677 — 1,677 1,948 — 1,948 Net gain on sale of investment securities available for sale (1) 7 — 7 73 — 73 Net gain (loss) on sale of other real estate owned 292 — 292 (12 ) — (12 ) Dividends on FHLB and FRB stock (1) 1,316 — 1,316 649 — 649 Other operating income (2) 10,393 150 10,543 3,641 138 3,779 Total noninterest income $ 21,077 $ 36,808 $ 57,885 $ 11,618 $ 31,978 $ 43,596 (1) Not within the scope of ASC 606. (2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $1.7 million and $1.5 million for the nine months ended September 30, 2018 and 2017 , respectively, which are within the scope of ASC 606. A description of the Corporation’s revenue streams accounted for under ASC 606 follows: Service Charges on Deposit Accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Wealth Management Fees: The Corporation earns wealth management fee revenue from a variety of sources including fees from trust administration and other related fiduciary services, custody, investment management and advisory services, employee benefit account and IRA administration, estate settlement, tax service fees, shareholder service fees and brokerage. Fees that are determined based on the market value of the assets held in their accounts are generally billed monthly, in arrears, based on the market value of assets at the end of the previous billing period. Other related services that are based on a fixed fee schedule are recognized when the services are rendered. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date. Included in other assets on the balance sheet is a receivable for wealth management fees that have been earned but not yet collected. Insurance Commissions: The Corporation earns commissions from the sale of insurance policies, which are generally calculated as a percentage of the policy premium, and contingent income, which is calculated based on the volume and performance of the policies held by each carrier. Obligations for the sale of insurance policies are generally satisfied at the point in time which the policy is executed and are recognized at the point in time in which the amounts are known and collection is reasonably assured. Performance metrics for contingent income are generally satisfied over time, not exceeding one year, and are recognized at the point in time in which the amounts are known and collection is reasonably assured. Visa Debit Card Income: The Corporation earns income fees from debit cardholder transactions conducted through the Visa payment network. Fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Gains/Losses on Sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation A. General Information The Corporation permits the issuance of stock options, dividend equivalents, performance stock awards, stock appreciation rights and restricted stock units or awards to employees and directors of the Corporation under several plans. The performance awards and restricted awards may be in the form of stock awards or stock units. Stock awards and stock units differ in that for a stock award, shares of restricted stock are issued in the name of the grantee, whereas a stock unit constitutes a promise to issue shares of stock upon vesting. The accounting for awards and units is identical. The terms and conditions of awards under the plans are determined by the Corporation’s Management Development and Compensation Committee. Prior to April 25, 2007, all shares authorized for grant as stock-based compensation were limited to grants of stock options. On April 25, 2007, the shareholders approved the Corporation’s “2007 Long-Term Incentive Plan” (the “2007 LTIP”) under which a total of 428,996 shares of the Corporation’s common stock were made available for award grants. On April 28, 2010, the shareholders approved the Corporation’s “2010 Long Term Incentive Plan” under which a total of 445,002 shares of the Corporation’s common stock were made available for award grants and on April 30, 2015, the shareholders approved an amendment and restatement of such plan (as amended and restated, the “2010 LTIP”) to, among other things, increase the number of shares available for award grants by 500,000 to 945,002 . In addition to the shareholder-approved plans mentioned in the preceding paragraph, the Corporation periodically authorizes grants of stock-based compensation as inducement awards to new employees. This type of award does not require shareholder approval in accordance with Rule 5635(c)(4) of the NASDAQ listing rules. The equity awards are authorized to be in the form of, among others, options to purchase the Corporation’s common stock, RSUs and PSUs. RSUs have a restriction based on the passage of time. The grant date fair value of the RSUs is based on the closing price on the date of the grant. PSUs have restrictions based on performance criteria and the passage of time. The performance criteria may be a market-based criteria measured by the Corporation’s total shareholder return (“TSR”) relative to the performance of the community bank index for the respective period. The fair value of the PSUs based on the Corporation’s TSR relative to the performance of a designated peer group or the NASDAQ Community Bank Index is calculated using the Monte Carlo Simulation method. The performance criteria may also be based on a non-market-based criteria such as return on average equity relative to that designated peer group. The grant date fair value of these PSUs is based on the closing price of the Corporation’s stock on the date of the grant. PSU grants may have a vesting percent ranging from 0% to 150% . B. Other Stock Option Information The following table provides information about options outstanding for the three months ended September 30, 2018 : Shares Weighted Weighted Options outstanding, June 30, 2018 66,571 $ 19.26 $ 4.71 Forfeited — — — Expired — — — Exercised (15,150 ) $ 23.02 $ 5.09 Options outstanding, September 30, 2018 51,421 $ 18.15 $ 4.60 The following table provides information about options outstanding for the nine months ended September 30, 2018 : Shares Weighted Weighted Options outstanding, December 31, 2017 115,246 $ 20.73 $ 4.86 Forfeited — — — Expired — — — Exercised (63,825 ) $ 22.81 $ 5.06 Options outstanding, September 30, 2018 51,421 $ 18.15 $ 4.60 As of September 30, 2018 there were no unvested options. Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Proceeds from exercise of stock options $ 349 $ 283 $ 1,456 $ 1,288 Related tax benefit recognized 81 96 312 402 Net proceeds of options exercised $ 430 $ 379 $ 1,768 $ 1,690 Intrinsic value of options exercised $ 386 $ 273 $ 1,484 $ 1,147 The following table provides information about options outstanding and exercisable at September 30, 2018 : (dollars in thousands, except share data and exercise price) Outstanding Exercisable Number of shares 51,421 51,421 Weighted average exercise price $ 18.15 $ 18.15 Aggregate intrinsic value $ 1,478 $ 1,478 Weighted average remaining contractual term in years 0.9 0.9 C. Restricted Stock Units and Performance Stock Units The Corporation has granted RSUs and PSUs under the 2007 LTIP and 2010 LTIP and in accordance with Rule 5635(c)(4) of the NASDAQ listing standards. RSUs The compensation expense for the RSUs is measured based on the market price of the stock on the day prior to the grant date and is recognized on a straight-line basis over the vesting period. For the three and nine months ended September 30, 2018 , the Corporation recognized $318 thousand and $873 thousand , respectively, of expense related to the Corporation’s RSUs. As of September 30, 2018 , there was $2.3 million of unrecognized compensation cost related to RSUs. This cost will be recognized over a weighted average period of 2.3 years. The following table details the RSUs for the three and nine months ended September 30, 2018 : Three Months Ended Nine Months Ended Number of Shares Weighted Number of Shares Weighted Beginning balance 68,595 $ 36.89 75,707 $ 35.80 Granted 23,843 $ 46.29 26,243 $ 46.07 Vested (16,122 ) $ 33.65 (24,469 ) $ 32.16 Forfeited — $ — (1,165 ) $ 35.36 Ending balance 76,316 $ 40.51 76,316 $ 40.51 PSUs For the three and nine months ended September 30, 2018 , the Corporation recognized $390 thousand and $1.1 million , respectively, of expense related to the PSUs. As of September 30, 2018 , there was $3.3 million of unrecognized compensation cost related to PSUs. This cost will be recognized over a weighted average period of 2.2 years. The following table details the PSUs for the three and nine months ended September 30, 2018 : Three Months Ended Nine Months Ended Number of Shares Weighted Number of Shares Weighted Beginning balance 130,260 $ 26.73 168,453 $ 24.76 Granted 40,722 $ 44.56 40,722 $ 44.56 Vested (48,056 ) $ 16.04 (81,840 ) $ 16.40 Forfeited — $ — (4,409 ) $ 26.57 Ending balance 122,926 $ 36.82 122,926 $ 36.82 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement FASB ASC 820, “Fair Value Measurements and Disclosures , ” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. FASB ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are: Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active and model derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). A. Assets and liabilities measured on a recurring basis A description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Investment Securities The value of the Corporation’s available for sale investment securities, which include obligations of the U.S. government and its agencies, mortgage-backed securities issued by U.S. government- and U.S. government sponsored agencies, obligations of state and political subdivisions, corporate bonds and other debt securities are determined by the Corporation, taking into account the input of an independent third party valuation service provider. The third party’s evaluations are based on market data, utilizing pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, their pricing models apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (only obtained from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable. Inputs are prioritized differently on any given day based on market conditions. Management reviews, annually, the process utilized by its independent third-party valuation service provider. On a quarterly basis, management tests the validity of the prices provided by the third party by selecting a representative sample of the portfolio and obtaining actual trade results, or if actual trade results are not available, competitive broker pricing. On an annual basis, management evaluates, for appropriateness, the methodology utilized by the independent third-party valuation service provider. U.S. Government agencies are evaluated and priced using multi-dimensional relational models and option adjusted spreads. State and municipal securities are evaluated on a series of matrices including reported trades and material event notices. Mortgage-backed securities are evaluated using matrix correlation to treasury or floating index benchmarks, prepayment speeds, monthly payment information and other benchmarks. Other available-for-sale investments are evaluated using a broker-quote based application, including quotes from issuers. Interest Rate Swaps and Risk Participation Agreements The Corporation’s interest rate swaps and RPAs are reported at fair value utilizing Level 2 inputs. Prices of these instruments are obtained through an independent pricing source utilizing pricing information which may include market observed quotations for swaps, LIBOR rates, forward rates and rate volatility. When entering into a derivative contract, the Corporation is exposed to fair value changes due to interest rate movements, and the potential non-performance of our contract counterparty. The Corporation has developed a methodology to value the non-performance risk based on internal credit risk metrics and the unique characteristics of derivative instruments, which include notional exposure rather than principle at risk and interest payment netting. The results of this methodology are used to adjust the base fair value of the instrument for the potential counterparty credit risk. The following tables present the Corporation’s assets measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Investment securities available for sale: U.S. Treasury securities $ 100 $ 100 $ — $ — Obligations of U.S. government & agencies 190,453 — 190,453 — Obligations of state & political subdivisions 15,799 — 15,799 — Mortgage-backed securities 284,421 — 284,421 — Collateralized mortgage obligations 36,193 — 36,193 — Other investment securities 1,098 — 1,098 — Total investment securities available for sale $ 528,064 $ 100 $ 527,964 $ — Investment securities trading: Mutual funds $ 8,340 $ 8,340 $ — $ — Derivatives: Interest rate swaps $ 5,886 $ — $ 5,886 $ — Total recurring fair value measurements $ 542,290 $ 8,440 $ 533,850 $ — As of December 31, 2017 (dollars in thousands) Total Level 1 Level 2 Level 3 Investment securities available for sale: U.S. Treasury securities $ 200,088 $ 200,088 $ — $ — Obligations of U.S. government & agencies 151,044 — 151,044 — Obligations of state & political subdivisions 21,310 — 21,310 — Mortgage-backed securities 274,990 — 274,990 — Collateralized mortgage obligations 36,662 — 36,662 — Mutual funds 3,509 3,509 — — Other investment securities 1,599 — 1,599 — Total investment securities available for sale $ 689,202 $ 203,597 $ 485,605 $ — Investment securities trading: Mutual funds $ 4,610 $ 4,610 $ — $ — Derivatives: Interest rate swaps $ 1,898 $ — $ 1,898 $ — Total recurring fair value measurements $ 695,710 $ 208,207 $ 487,503 $ — There have been no transfers between levels during the three and nine months ended September 30, 2018 . B. Assets and liabilities measured on a non-recurring basis Fair value is used on a nonrecurring basis to evaluate certain financial assets and financial liabilities in specific circumstances. Similarly, fair value is used on a nonrecurring basis for nonfinancial assets and nonfinancial liabilities such as foreclosed assets, OREO, intangible assets, nonfinancial assets and liabilities evaluated in a goodwill impairment analysis and other nonfinancial assets measured at fair value for purposes of assessing impairment. A description of the valuation methodologies used for financial and nonfinancial assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy, is set forth below. Impaired Loans Management evaluates and values impaired loans at the time the loan is identified as impaired, and the fair values of such loans are estimated using Level 3 inputs in the fair value hierarchy. Each loan’s collateral has a unique appraisal and management’s discount of the value is based on the factors unique to each impaired loan. The significant unobservable input in determining the fair value is management’s subjective discount on appraisals of the collateral securing the loan, which range from 10% - 50% . Collateral may consist of real estate and/or business assets including equipment, inventory and/or accounts receivable and the value of these assets is determined based on the appraisals by qualified licensed appraisers hired by the Corporation. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, estimated costs to sell, and/or management’s expertise and knowledge of the client and the client’s business. The Corporation has an appraisal policy in which an appraisal is obtained for a commercial loan at the point at which the loan either becomes nonperforming or is downgraded to a substandard or worse classification. For consumer loans, management obtains updated appraisals when a loan becomes 90 days past due or when it receives other information that may indicate possible impairment. Based on the appraisals obtained by the Corporation, a partial or full charge-off may be necessary. Other Real Estate Owned OREO consists of properties acquired as a result of foreclosures and deeds in-lieu-of foreclosure. Properties classified as OREO are reported at the lower of cost or fair value less cost to sell, and are classified as Level 3 in the fair value hierarchy. Mortgage Servicing Rights The model to value MSRs estimates the present value of projected net servicing cash flows of the remaining servicing portfolio based on various assumptions, including changes in anticipated loan prepayment rates, the discount rate, reflective of a market participant's required return on an investment for similar assets, and other market-based economic factors. All of these assumptions are considered to be unobservable inputs. Accordingly, MSRs are classified within Level 3 of the fair value hierarchy. The following tables present the Corporation’s assets measured at fair value on a non-recurring basis as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 MSRs $ 6,586 $ — $ — $ 6,586 Impaired loans and leases 12,593 — — 12,593 OREO 529 — — 529 Total non-recurring fair value measurements $ 19,708 $ — $ — $ 19,708 As of December 31, 2017 (dollars in thousands) Total Level 1 Level 2 Level 3 MSRs $ 6,397 $ — $ — $ 6,397 Impaired loans and leases 13,954 — — 13,954 OREO 304 — — 304 Total non-recurring fair value measurements $ 20,655 $ — $ — $ 20,655 During the three and nine months ended September 30, 2018 , a decrease of $148 thousand and an increase of $20 thousand , respectively, were recorded in the Allowance as a result of adjusting the carrying value and estimated fair value of the impaired loans in the above tables. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments FASB ASC 825, “Disclosures about Fair Value of Financial Instruments” requires disclosure of the fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate such value. The methodologies for estimating the fair value of financial assets and financial liabilities measured at fair value on a recurring and non-recurring basis are discussed above. The estimated fair value amounts have been determined by management using available market information and appropriate valuation methodologies, are based on the exit price notion set forth by ASU 2016-1 effective January 1, 2018, and are applied to this disclosure on a prospective basis. Estimated fair value of assets and liabilities carried at cost as of December 31, 2017 were based on an entry price notion. In cases where quoted market prices are not available, fair values are based on estimates using present value or other market value techniques. Those techniques are significantly affected by the assumptions used, including 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, could not be realized in immediate settlement of the instrument. The aggregate fair value amounts presented below do not represent the underlying value of the Corporation. The carrying amount and fair value of the Corporation’s financial instruments are as follows: As of September 30, 2018 As of December 31, 2017 (dollars in thousands) Fair Value Carrying Fair Value Carrying Fair Value Financial assets: Cash and cash equivalents Level 1 $ 45,354 $ 45,354 $ 60,024 $ 60,024 Investment securities - available for sale See Note 19 528,064 528,064 689,202 689,202 Investment securities - trading See Note 19 8,340 8,340 4,610 4,610 Investment securities – held to maturity Level 2 8,916 8,544 7,932 7,851 Loans held for sale Level 2 4,111 4,111 3,794 3,794 Net portfolio loans and leases Level 3 3,362,791 3,362,757 3,268,333 3,293,802 MSRs Level 3 5,328 6,586 5,861 6,397 Interest rate swaps Level 2 5,843 5,843 1,895 1,895 RPAs purchased Level 2 43 43 21 21 Other assets Level 3 44,439 44,439 46,799 46,799 Total financial assets $ 4,013,229 $ 4,014,081 $ 4,088,471 $ 4,114,395 Financial liabilities: Deposits Level 2 $ 3,357,226 $ 3,351,183 $ 3,373,798 $ 3,368,276 Short-term borrowings Level 2 226,498 226,498 237,865 237,865 Long-term FHLB advances Level 2 72,841 71,978 139,140 138,685 Subordinated notes Level 2 98,482 97,892 98,416 95,044 Junior subordinated debentures Level 2 21,538 23,564 21,416 19,366 Interest rate swaps Level 2 5,843 5,843 1,895 1,895 RPAs sold Level 2 1 1 3 3 Other liabilities Level 3 60,432 60,432 49,071 49,071 Total financial liabilities $ 3,842,861 $ 3,837,391 $ 3,921,604 $ 3,910,205 * See Note 19 in the Notes to Unaudited Consolidated Financial Statements above for a description of hierarchy levels. |
Financial Instruments With Off-
Financial Instruments With Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments With Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk | Financial Instruments with Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk Off-Balance Sheet Arrangements The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument of commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. Commitments to extend credit, which include unused lines of credit and unfunded commitments to originate loans, are agreements to lend to a customer as long as there is no violation of any condition established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Some of the commitments are expected to expire without being drawn upon, and the total commitment amounts do not necessarily represent future cash requirements. Total commitments to extend credit at September 30, 2018 and December 31, 2017 were $764.7 million and $748.3 million , respectively. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on a credit evaluation of the counterparty. Collateral varies but may include accounts receivable, marketable securities, inventory, property, plant and equipment, residential real estate, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Bank to a customer for a third party. Such standby letters of credit are issued to support private borrowing arrangements. The credit risk involved in issuing standby letters of credit is similar to that involved in extending loan facilities to customers. The collateral varies, but may include accounts receivable, marketable securities, inventory, property, plant and equipment, and residential real estate for those commitments for which collateral is deemed necessary. The Corporation’s obligations under standby letters of credit as of September 30, 2018 and December 31, 2017 were $21.2 million and $17.7 million , respectively. Contingencies Legal Matters In the ordinary course of its operations, the Corporation and its subsidiaries are parties to various claims, litigation, investigations, and legal and administrative cases and proceedings. Such pending or threatened claims, litigation, investigations, legal and administrative cases and proceedings typically entail matters that are considered ordinary routine litigation incidental to our business. Claims for significant monetary damages may be asserted in many of these types of legal actions. Based on the information currently available, management believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interests of the Corporation and its shareholders. On a regular basis, liabilities and contingencies in connection with outstanding legal proceedings are assessed utilizing the latest information available. For those matters where it is probable that the Corporation will incur a loss and the amount of the loss can be reasonably estimated, a liability may be recorded in the Consolidated Financial Statements. These legal reserves may be increased or decreased to reflect any relevant developments on at least a quarterly basis. For other matters, where a loss is not probable or the amount or range of the loss is not estimable, legal reserves are not accrued. While the outcome of legal proceedings is inherently uncertain, based on information currently available, advice of counsel and available insurance coverage, management believes that the established legal reserves are adequate and the liabilities arising from legal proceedings will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be material to the consolidated financial position, consolidated results of operations or consolidated cash flows of the Corporation. Indemnifications In general, the Corporation does not sell loans with recourse, except to the extent that it arises from standard loan-sale contract provisions. These provisions cover violations of representations and warranties and, under certain circumstances, first payment default by borrowers. These indemnifications may include the repurchase of loans by the Corporation, and are considered customary provisions in the secondary market for conforming mortgage loan sales. Repurchases and losses have been rare and no provision is made for losses at the time of sale. There were no such repurchases for the three or nine months ended September 30, 2018. Concentrations of Credit Risk The Corporation has a material portion of its loans in real estate-related loans. A predominant percentage of the Corporation’s real estate exposure, both commercial and residential, is in the Corporation’s primary trade area which includes portions of Delaware, Chester, Montgomery and Philadelphia counties in Southeastern Pennsylvania. Management is aware of this concentration and attempts to mitigate this risk to the extent possible in many ways, including the underwriting and assessment of borrower’s capacity to repay. See Note 5 – “Loans and Leases” for additional information. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information FASB Codification 280 – “Segment Reporting” identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s chief operating decision maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations. The Corporation’s Banking segment consists of commercial and retail banking. The Banking segment is evaluated as a single strategic unit which generates revenues from a variety of products and services. The Banking segment generates interest income from its lending (including leases) and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale in available for sale investment securities, gains on the sale of residential mortgage loans, service charges on deposit accounts, cash sweep fees, overdraft fees, BOLI income and revenue associated with its Visa Check Card offering. Also included in the Banking segment are two subsidiaries of the Bank, KCMI Capital, Inc. and Bryn Mawr Equipment Financing, Inc., both of which provide specialized lending solutions to our customers. The Wealth Management segment has responsibility for a number of activities within the Corporation, including trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and IRA administration, estate settlement, tax services and brokerage. Bryn Mawr Trust of Delaware and Lau Associates are included in the Wealth Management segment of the Corporation since they have similar economic characteristics, products and services to those of the Wealth Management Division of the Corporation. BMT Investment Advisers, formed in May 2017, which serves as investment adviser to BMT Investment Funds, a Delaware statutory trust, is also reported under the Wealth Management segment. In addition, the Wealth Management Division oversees all insurance services of the Corporation, which are conducted through the Bank’s insurance subsidiary, BMT Insurance Advisors, Inc., and are reported in the Wealth Management segment. The accounting policies of the Corporation are applied by segment in the following tables. The segments are presented on a pre-tax basis. The following tables detail the Corporation’s segments for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (dollars in thousands) Banking Wealth Management Consolidated Banking Wealth Management Consolidated Net interest income $ 36,726 $ 3 $ 36,729 $ 29,437 $ 1 $ 29,438 Provision for loan and lease losses 664 — 664 1,333 — 1,333 Net interest income after loan loss provision 36,062 3 36,065 28,104 1 28,105 Noninterest income: Fees for wealth management services — 10,343 10,343 — 9,651 9,651 Insurance commissions — 1,754 1,754 — 1,373 1,373 Capital markets revenue 710 — 710 843 — 843 Service charges on deposit accounts 726 — 726 676 — 676 Loan servicing and other fees 559 — 559 548 — 548 Net gain on sale of loans 631 — 631 799 — 799 Net gain on sale of investment securities available for sale — — — 72 — 72 Net gain on sale of OREO 5 — 5 — — — Other operating income 3,498 48 3,546 1,581 41 1,622 Total noninterest income 6,129 12,145 18,274 4,519 11,065 15,584 Noninterest expenses: Salaries & wages 11,737 4,791 16,528 9,130 4,472 13,602 Employee benefits 2,394 962 3,356 1,587 973 2,560 Occupancy and bank premises 2,224 493 2,717 2,049 436 2,485 Amortization of intangible assets 386 505 891 197 480 677 Professional fees 889 108 997 681 58 739 Other operating expenses 7,770 1,333 9,103 6,970 1,151 8,121 Total noninterest expenses 25,400 8,192 33,592 20,614 7,570 28,184 Segment profit 16,791 3,956 20,747 12,009 3,496 15,505 Intersegment (revenues) expenses* (186 ) 186 — (112 ) 112 — Pre-tax segment profit after eliminations $ 16,605 $ 4,142 $ 20,747 $ 11,897 $ 3,608 $ 15,505 % of segment pre-tax profit after eliminations 80.0 % 20.0 % 100.0 % 76.7 % 23.3 % 100.0 % Segment assets (dollars in millions) $ 4,335.8 $ 52.6 $ 4,388.4 $ 3,424.8 $ 52.0 $ 3,476.8 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (dollars in thousands) Banking Wealth Management Consolidated Banking Wealth Management Consolidated Net interest income $ 111,479 $ 5 $ 111,484 $ 84,804 $ 2 $ 84,806 Provision for loan and lease losses 4,831 — 4,831 1,541 — 1,541 Net interest income after loan loss provision 106,648 5 106,653 83,263 2 83,265 Noninterest income: Fees for wealth management services — 31,309 31,309 — 28,761 28,761 Insurance commissions — 5,349 5,349 — 3,079 3,079 Capital markets revenue 3,481 — 3,481 1,796 — 1,796 Service charges on deposit accounts 2,191 — 2,191 1,953 — 1,953 Loan servicing and other fees 1,720 — 1,720 1,570 — 1,570 Net gain on sale of loans 1,677 — 1,677 1,948 — 1,948 Net gain on sale of investment securities available for sale 7 — 7 73 — 73 Net gain (loss) gain on sale of OREO 292 — 292 (12 ) — (12 ) Other operating income 11,709 150 11,859 4,290 138 4,428 Total noninterest income 21,077 36,808 57,885 11,618 31,978 43,596 Noninterest expenses: Salaries & wages 34,077 14,673 48,750 27,044 12,588 39,632 Employee benefits 6,992 2,949 9,941 4,565 2,888 7,453 Occupancy and bank premises 7,035 1,429 8,464 6,025 1,233 7,258 Amortization of intangible assets 1,169 1,490 2,659 588 1,469 2,057 Professional fees 2,497 180 2,677 2,318 181 2,499 Other operating expenses 29,076 3,891 32,967 21,200 3,240 24,440 Total noninterest expenses 80,846 24,612 105,458 61,740 21,599 83,339 Segment profit 46,879 12,201 59,080 33,141 10,381 43,522 Intersegment (revenues) expenses* (485 ) 485 — (336 ) 336 — Pre-tax segment profit after eliminations $ 46,394 $ 12,686 $ 59,080 $ 32,805 $ 10,717 $ 43,522 % of segment pre-tax profit after eliminations 78.5 % 21.5 % 100.0 % 75.4 % 24.6 % 100.0 % Segment assets (dollars in millions) $ 4,335.8 $ 52.6 $ 4,388.4 $ 3,424.8 $ 52.0 $ 3,476.8 * Inter-segment revenues consist of rental payments, interest on deposits and management fees. Wealth Management Segment Information (dollars in millions) September 30, December 31, Assets under management, administration, supervision and brokerage $ 13,913.3 $ 12,968.7 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Adopted Pronouncements and Pronouncements Not Yet Effective | Adopted Pronouncements: FASB ASU 2014-9 (Topic 606), “Revenue from Contracts with Customers” The Corporation adopted ASU 2014-9 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Corporation’s revenues come from interest income and other sources, including loans, leases, investment securities and derivatives, that are outside the scope of ASC 606. The Corporation’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Corporation satisfies its obligation to the customer. Services within the scope of ASC 606 include service charges on deposits, Visa debit card income, wealth management fees, investment brokerage fees, and the net gain on sale of OREO. Refer to Note 17 Revenue from Contracts with Customers for further discussion on the Corporation’s accounting policies for revenue sources within the scope of ASC 606. The adoption of this ASU did not have an impact to our Consolidated Financial Statements and related disclosures. FASB ASU 2017-1 (Topic 805), “Business Combinations” The Corporation adopted ASU 2017-1, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2016-15 (Topic 320), “Classification of Certain Cash Receipts and Cash Payments” The Corporation adopted ASU 2016-15, which provides guidance on eight specific cash flow issues and their disclosure in the consolidated statements of cash flows. The issues addressed include debt prepayment, settlement of zero-coupon debt, contingent consideration in business combinations, proceeds from settlement of insurance claims, proceeds from settlement of BOLI, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2016-1 (Subtopic 825-10), “Financial Instruments – Overall, Recognition and Measurement of Financial Assets and Financial Liabilities” The Corporation adopted ASU 2016-1 which requires that equity investments be measured at fair value with changes in fair value recognized in net income. The Corporation’s equity investments with a readily determinable fair value are currently included within trading securities and are measured at fair value with changes in fair value recognized in net income. In connection with the adoption of this ASU, the Corporation elected the practicability exception to fair value measurement for investments in equity securities without a readily determinable fair value (other than our Federal Home Loan Bank (“FHLB”), Federal Reserve Bank ("FRB"), and Atlantic Central Bankers Bank stock, which are outside of the scope of this ASU). Under the practicability exception, the investments are measured at cost, less impairment, plus or minus observable price changes (in orderly transactions) of an identical or similar investment of the same issuer. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2017-7 (Topic 715), “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” On January 1, 2018, the Corporation adopted ASU 2017-7 and all subsequent amendments to the ASU, which requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). Upon adoption, the components of net periodic benefit cost other than the service cost component were reclassified retrospectively from “ Employee benefits” to “ Other operating expenses ” in the Consolidated Statements of Income. Since both “ Employee benefits” and “ Other operating expenses ” line items are under “ Noninterest expenses ”, there was no impact to total “ Noninterest expenses ” or “ Net income .” The components of net periodic benefit cost are currently disclosed in Note 17 – “Pension and Postretirement Benefit Plans” in the Notes to Consolidated Financial Statements found in our 2017 Annual Report. Additionally, the Corporation does not currently capitalize any components of its net periodic benefit costs. The adoption of this ASU did not have a material impact on our Consolidated Financial Statements and related disclosures. Pronouncements Not Yet Effective: FASB ASU 2018-07, “Improvements to Nonemployee Share-Based Payment Accounting” Issued in June 2018, ASU 2018-07: Compensation - Stock Compensation (Topic 718), “ Improvements to Nonemployee Share-Based Payment Accounting ” expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Corporation has not historically granted share based payment awards to nonemployees other than to the Corporation’s Board of Directors, who are treated as employees for share-based payment accounting. As a result, management does not expect the adoption of this ASU to have an impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2017-4 (Topic 350), “Intangibles – Goodwill and Others” Issued in January 2017, ASU 2017-4 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-4 is effective for annual periods beginning after December 15, 2019 including interim periods within those periods. Management does not expect the adoption of this ASU to have a material impact on our Consolidated Financial Statements and related disclosures. FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments” Issued in June 2016, ASU 2016-13 significantly changes how companies measure and recognize credit impairment for many financial assets. The new current expected credit loss (“CECL”) model will require companies to immediately recognize an estimate of credit losses expected to occur over the remaining life of the financial assets that are in the scope of the standard. The ASU also makes targeted amendments to the current impairment model for available-for-sale debt securities. ASU 2016-13 is effective for the annual and interim periods in fiscal years beginning after December 15, 2019, with early adoption permitted. Adoption of this new guidance can be applied only on a prospective basis as a cumulative-effect adjustment to retained earnings. It is expected that the new model will include different assumptions used in calculating credit losses, such as estimating losses over the estimated life of a financial asset, and will consider expected future changes in macroeconomic conditions. The adoption of this ASU may result in an increase to the Corporation’s allowance for credit losses, which will depend upon the nature and characteristics of the Corporation 's portfolio at the adoption date, as well as the macroeconomic conditions and forecasts at the adoption date. The Corporation has engaged the services of a third-party consultant as well as invested in software designed to assist management in the development and implementation of the new CECL model. Management has validated historical data uploaded within the third-party software and is beginning to develop the CECL model, including evaluating key assumptions such as portfolio segmentation, life of loan assumptions, and financial forecasts. The adoption of this ASU will also require the addition of an allowance for held-to-maturity debt securities. The Corporation currently does not intend to early adopt this new guidance. FASB ASU 2016-2 (Topic 842), “Leases” Issued in February 2016, ASU 2016-2 revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and right-of-use asset for all leases. The new lease guidance also simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. ASU 2016-2 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. The standard is required to be adopted using the modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Management is in-process of migrating data and key assumptions into a third-party lease accounting software to calculate the lease liability and right-of-use asset for all existing leases of the Corporation. Management is aware that the adoption of this ASU will impact the Corporation’s balance sheet for the recording of assets and liabilities for operating leases. Any additional assets recorded as a result of implementation will have a negative impact on the Corporation and Bank capital ratios under current regulatory guidance. FASB ASU 2018-12 (Topic 944), “Targeted Improvements to the Accounting for Long-Duration Contracts” Issued in August 2018, ASU 2018-12 makes targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. Specifically, the ASU is intended to 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. ASU 2018-12 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application of the amendments is permitted. As an independent insurance agent, the Corporation does not issue insurance contracts. As a result, management does not expect the adoption of this ASU to have an impact on our Consolidated Financial Statements and related disclosures. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedules of Recognized Identified Assets Acquired and Liabilities Assumed | The following table details the consideration paid, the initial estimated fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition and the resulting goodwill recorded: (dollars in thousands) Consideration paid: Cash paid at closing $ 750 Contingent payment liability (present value) 706 Value of consideration $ 1,456 Assets acquired: Cash and due from banks 370 Intangible assets - customer relationships 779 Premises and equipment 1 Other assets 316 Total assets 1,466 Liabilities assumed: Accounts payable 657 Other liabilities 30 Total liabilities $ 687 Net assets acquired $ 779 Goodwill resulting from acquisition of Domenick $ 677 In connection with the Hirshorn acquisition, the following table details the consideration paid, the initial estimated fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition and the resulting goodwill recorded: (dollars in thousands) Consideration paid: Cash paid at closing $ 5,770 Contingent payment liability (present value) 1,690 Value of consideration 7,460 Assets acquired: Cash operating accounts 978 Intangible assets – trade name 195 Intangible assets – customer relationships 2,672 Intangible assets – non-competition agreements 41 Premises and equipment 1,795 Accounts receivable 192 Other assets 27 Total assets 5,900 Liabilities assumed: Accounts payable 800 Other liabilities 2 Total liabilities 802 Net assets acquired 5,098 Goodwill resulting from acquisition of Hirshorn $ 2,362 In connection with the RBPI Merger, the consideration paid and the estimated fair value of identifiable assets acquired and liabilities assumed as of the Effective Date, which include the effects of any measurement period adjustments in accordance with ASC 805-10, are summarized in the following table: (dollars in thousands) Consideration paid: Common shares issued (3,101,316) $ 136,768 Cash in lieu of fractional shares 7 Cash-out of certain options 112 Fair value of warrants assumed 1,853 Value of consideration $ 138,740 Assets acquired: Cash and due from banks 17,092 Investment securities available for sale 121,587 Loans 566,228 Premises and equipment 8,264 Deferred income taxes 34,586 Bank-owned life insurance 16,550 Core deposit intangible 4,670 Favorable lease asset 566 Other assets 13,996 Total assets $ 783,539 Liabilities assumed: Deposits 593,172 FHLB and other long-term borrowings 59,568 Short-term borrowings 15,000 Junior subordinated debentures 21,416 Unfavorable lease liability 322 Other liabilities 31,381 Total liabilities $ 720,859 Net assets acquired $ 62,680 Goodwill resulting from acquisition of RBPI $ 76,060 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments | The following table details the changes in fair value of the net assets acquired and liabilities assumed as of the Effective Date from the amounts originally reported in the 2017 Annual Report: (dollars in thousands) Goodwill resulting from the acquisition of RBPI reported as of December 31, 2017 $ 72,762 Value of Consideration Adjustment: Common shares issued (2,562) 113 Fair Value Adjustments: Loans 4,145 Other assets 491 Deferred income taxes (1,451 ) Total Fair Value Adjustments 3,185 Goodwill from the acquisition of RBPI as of September 30, 2018 $ 76,060 |
Summary of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table provides an updated summary of the acquired impaired loans and leases as of the Effective Date, which include the effects of any measurement period adjustments in accordance with ASC 805-10, resulting from the RBPI Merger: (dollars in thousands) Contractually required principal and interest payments $ 40,741 Contractual cash flows not expected to be collected (nonaccretable difference) (17,637 ) Cash flows expected to be collected 23,104 Interest component of expected cash flows (accretable yield) (2,644 ) Fair value of loans acquired with deterioration of credit quality $ 20,460 |
Business Acquisition, Pro Forma Information | The following table presents the pro forma income statement of the combined institution (RBPI and the Corporation) for the three and nine months ended September 30, 2017 as if the RBPI Merger had occurred on January 1, 2017. The pro forma income statement adjustments are limited to the effects of purchase accounting fair value mark amortization and accretion and intangible asset amortization. No cost savings or additional merger expenses have been included in the pro forma income statement. Due to the immaterial contribution to net income of the Hirshorn acquisition, which occurred during the year shown in the table, the pro forma effects of the Hirshorn acquisition have been excluded. (dollars in thousands) Three Months Ended Nine Months Ended Total interest income $ 43,412 $ 126,976 Total interest expense 5,480 15,013 Net interest income 37,932 111,963 Provision for loan and lease losses 1,492 2,054 Net interest income after provision for loan and lease losses 36,440 109,909 Total noninterest income 16,015 45,481 Total noninterest expenses* 33,364 99,699 Income before income taxes 19,091 55,691 Income tax expense 5,843 18,306 Net income $ 13,248 $ 37,385 Per share data**: Weighted-average basic shares outstanding 20,121,800 20,086,253 Dilutive shares 261,935 284,294 Adjusted weighted-average diluted shares 20,383,735 20,370,547 Basic earnings per common share $ 0.66 $ 1.86 Diluted earnings per common share $ 0.65 $ 1.84 * Total noninterest expense includes RBPI Net Income Attributable to Noncontrolling Interest and Preferred Stock Series A Accumulated Dividend and Accretion for pro forma presentation. ** Assumes that the shares of RBPI common stock outstanding as of December 31, 2017 were outstanding for the full three and nine month periods ended September 30, 2017 . |
Summary of Integration Related Costs | The following table details the costs identified and classified as due diligence, merger-related and merger integration costs for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2018 2017 2018 2017 Advertising $ — $ 89 $ 61 $ 108 Employee Benefits — 5 271 10 Occupancy and bank premises — — 2,145 — Furniture, fixtures, and equipment — 31 365 37 Information technology 167 41 421 300 Professional fees 193 632 1,450 1,570 Salaries and wages 29 28 852 428 Other — 24 2,196 144 Total due diligence, merger-related and merger integration expenses $ 389 $ 850 $ 7,761 $ 2,597 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair value of investment securities available for sale as of September 30, 2018 and December 31, 2017 are as follows: As of September 30, 2018 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 100 $ — $ — $ 100 Obligations of the U.S. government and agencies 196,334 17 (5,898 ) 190,453 Obligations of state and political subdivisions 15,890 1 (92 ) 15,799 Mortgage-backed securities 292,005 344 (7,928 ) 284,421 Collateralized mortgage obligations 37,811 — (1,618 ) 36,193 Other investment securities 1,100 — (2 ) 1,098 Total $ 543,240 $ 362 $ (15,538 ) $ 528,064 As of December 31, 2017 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 200,077 $ 11 $ — $ 200,088 Obligations of the U.S. government and agencies 153,028 75 (2,059 ) 151,044 Obligations of state and political subdivisions 21,352 11 (53 ) 21,310 Mortgage-backed securities 275,958 887 (1,855 ) 274,990 Collateralized mortgage obligations 37,596 14 (948 ) 36,662 Other investment securities 4,813 318 (23 ) 5,108 Total $ 692,824 $ 1,316 $ (4,938 ) $ 689,202 |
Summary of Available-for-sale Debt Securities, Unrealized Loss Position, Fair Value | The following tables present the aggregate amount of gross unrealized losses as of September 30, 2018 and December 31, 2017 on available for sale investment securities classified according to the amount of time those securities have been in a continuous unrealized loss position: As of September 30, 2018 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of the U.S. government and agencies $ 82,187 $ (1,634 ) $ 107,601 $ (4,264 ) $ 189,788 $ (5,898 ) Obligations of state and political subdivisions 11,009 (21 ) 2,303 (71 ) 13,312 (92 ) Mortgage-backed securities 136,170 (3,037 ) 130,269 (4,891 ) 266,439 (7,928 ) Collateralized mortgage obligations 10,939 (86 ) 24,945 (1,532 ) 35,884 (1,618 ) Other investment securities 549 (1 ) 249 (1 ) 798 (2 ) Total $ 240,854 $ (4,779 ) $ 265,367 $ (10,759 ) $ 506,221 $ (15,538 ) As of December 31, 2017 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Obligations of the U.S. government and agencies $ 114,120 $ (1,294 ) $ 26,726 $ (765 ) $ 140,846 $ (2,059 ) Obligations of state and political subdivisions 11,144 (29 ) 2,709 (24 ) 13,853 (53 ) Mortgage-backed securities 177,919 (1,293 ) 31,787 (562 ) 209,706 (1,855 ) Collateralized mortgage obligations 5,166 (47 ) 26,686 (901 ) 31,852 (948 ) Other investment securities 1,805 (23 ) — — 1,805 (23 ) Total $ 310,154 $ (2,686 ) $ 87,908 $ (2,252 ) $ 398,062 $ (4,938 ) |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of held to maturity investment securities as of September 30, 2018 and December 31, 2017 , by contractual maturity, are shown below: September 30, 2018 December 31, 2017 (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Mortgage-backed securities (1) $ 8,916 $ 8,544 $ 7,932 $ 7,851 (1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2018 December 31, 2017 (dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Investment securities: Due in one year or less $ 12,265 $ 12,237 $ 211,019 $ 211,019 Due after one year through five years 176,700 171,374 126,452 124,797 Due after five years through ten years 24,459 23,839 23,147 22,804 Due after ten years — — 15,439 15,421 Subtotal 213,424 207,450 376,057 374,041 Mortgage-related securities (1) 329,816 320,614 313,554 311,652 Mutual funds with no stated maturity — — 3,213 3,509 Total $ 543,240 $ 528,064 $ 692,824 $ 689,202 (1) Expected maturities of mortgage-related securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. |
Summary of Held-to-maturity Debt Securities | The amortized cost and fair value of investment securities held to maturity as of September 30, 2018 and December 31, 2017 are as follows: As of September 30, 2018 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities $ 8,916 $ — $ (372 ) $ 8,544 As of December 31, 2017 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Mortgage-backed securities $ 7,932 $ 5 $ (86 ) $ 7,851 |
Summary of Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | The following tables present the aggregate amount of gross unrealized losses as of September 30, 2018 and December 31, 2017 on held to maturity securities classified according to the amount of time those securities have been in a continuous unrealized loss position: As of September 30, 2018 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 3,882 $ (132 ) $ 4,662 $ (240 ) $ 8,544 $ (372 ) As of December 31, 2017 Less than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 2,756 $ (25 ) $ 3,866 $ (61 ) $ 6,622 $ (86 ) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The table below details portfolio loans and leases as of the dates indicated: September 30, 2018 December 31, 2017 (dollars in thousands) Originated Acquired Total Loans and Leases Originated Acquired Total Loans and Leases Loans held for sale $ 4,111 $ — $ 4,111 $ 3,794 $ — $ 3,794 Real Estate Loans: Commercial mortgage $ 1,259,397 $ 359,096 $ 1,618,493 $ 1,122,327 $ 401,050 $ 1,523,377 Home equity lines and loans 180,068 27,738 207,806 183,283 34,992 218,275 Residential mortgage 381,037 86,365 467,402 360,935 97,951 458,886 Construction 158,691 19,802 178,493 128,266 84,188 212,454 Total real estate loans $ 1,979,193 $ 493,001 $ 2,472,194 $ 1,794,811 $ 618,181 $ 2,412,992 Commercial and industrial 618,200 104,799 722,999 589,304 130,008 719,312 Consumer 44,833 2,976 47,809 35,146 3,007 38,153 Leases 109,934 28,539 138,473 68,035 47,366 115,401 Total portfolio loans and leases $ 2,752,160 $ 629,315 $ 3,381,475 $ 2,487,296 $ 798,562 $ 3,285,858 Total loans and leases $ 2,756,271 $ 629,315 $ 3,385,586 $ 2,491,090 $ 798,562 $ 3,289,652 Loans with fixed rates $ 1,167,097 $ 375,326 $ 1,542,423 $ 1,034,542 $ 538,510 $ 1,573,052 Loans with adjustable or floating rates 1,589,174 253,989 1,843,163 1,456,548 260,052 1,716,600 Total loans and leases $ 2,756,271 $ 629,315 $ 3,385,586 $ 2,491,090 $ 798,562 $ 3,289,652 Net deferred loan origination fees included in the above loan table $ 1,220 $ — $ 1,220 $ 887 $ — $ 887 |
Schedule of Components of Leveraged Lease Investments | Components of the net investment in leases are detailed as follows: September 30, 2018 December 31, 2017 (dollars in thousands) Originated Acquired Total Leases Originated Acquired Total Leases Minimum lease payments receivable $ 122,596 $ 32,039 $ 154,635 $ 75,592 $ 55,219 $ 130,811 Unearned lease income (17,717 ) (4,293 ) (22,010 ) (10,338 ) (9,523 ) (19,861 ) Initial direct costs and deferred fees 5,055 793 5,848 2,781 1,670 4,451 Total Leases $ 109,934 $ 28,539 $ 138,473 $ 68,035 $ 47,366 $ 115,401 |
Schedule of Financing Receivables, Non Accrual Status | Non-Performing Loans and Leases (1) September 30, 2018 December 31, 2017 (dollars in thousands) Originated Acquired Total Loans and Leases Originated Acquired Total Loans and Leases Commercial mortgage $ — $ 735 $ 735 $ 90 $ 782 $ 872 Home equity lines and loans 1,692 241 1,933 1,221 260 1,481 Residential mortgage 1,968 802 2,770 1,505 2,912 4,417 Construction 291 — 291 — — — Commercial and industrial 925 857 1,782 826 880 1,706 Consumer 42 75 117 — — — Leases 479 883 1,362 103 — 103 Total non-performing loans and leases $ 5,397 $ 3,593 $ 8,990 $ 3,745 $ 4,834 $ 8,579 (1) Purchased credit-impaired loans, which have been recorded at their fair values at acquisition, and which are performing, are excluded from this table, with the exception of $393 thousand and $167 thousand of purchased credit-impaired loans as of September 30, 2018 and December 31, 2017 , respectively, which became non-performing subsequent to acquisition. |
Schedule of Information Related to Purchased Credit Impaired Loans | The outstanding principal balance and related carrying amount of purchased credit-impaired loans, for which the Corporation applies ASC 310-30, Accounting for Purchased Loans with Deteriorated Credit Quality , to account for the interest earned, as of the dates indicated, are as follows: (dollars in thousands) September 30, December 31, Outstanding principal balance $ 38,062 $ 46,543 Carrying amount (1) $ 27,519 $ 30,849 (1) Includes $393 thousand and $173 thousand of purchased credit-impaired loans as of September 30, 2018 and December 31, 2017 , respectively, for which the Corporation could not estimate the timing or amount of expected cash flows to be collected at acquisition, and for which no accretable yield is recognized. Additionally, the table above includes $393 thousand and $167 thousand of purchased credit-impaired loans as of September 30, 2018 and December 31, 2017 , respectively, which became non-performing subsequent to acquisition, which are disclosed in Note 5C, above, and which also have no accretable yield. |
Schedule of Changes in Accretable Discount Related to Purchased Credit Impaired Loans | The following table presents changes in the accretable discount on purchased credit-impaired loans, for which the Corporation applies ASC 310-30, for the nine months ended September 30, 2018 : (dollars in thousands) Accretable Discount Balance, December 31, 2017 $ 4,083 Accretion (1,819 ) Reclassifications from nonaccretable difference 609 Additions/adjustments 329 Balance, September 30, 2018 $ 3,202 |
Past Due Financing Receivables | The following tables present an aging of all portfolio loans and leases as of the dates indicated: Accruing Loans and Leases As of September 30, 2018 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ — $ 2,468 $ — $ 2,468 $ 1,615,290 $ 1,617,758 $ 735 $ 1,618,493 Home equity lines and loans 324 — — 324 205,549 205,873 1,933 207,806 Residential mortgage 2,218 179 — 2,397 462,235 464,632 2,770 467,402 Construction 488 — — 488 177,714 178,202 291 178,493 Commercial and industrial 1,115 1,255 — 2,370 718,847 721,217 1,782 722,999 Consumer 46 23 — 69 47,623 47,692 117 47,809 Leases 751 252 — 1,003 136,108 137,111 1,362 138,473 Total portfolio loans and leases $ 4,942 $ 4,177 $ — $ 9,119 $ 3,363,366 $ 3,372,485 $ 8,990 $ 3,381,475 Accruing Loans and Leases As of December 31, 2017 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ 1,366 $ 2,428 $ — $ 3,794 $ 1,518,711 $ 1,522,505 $ 872 $ 1,523,377 Home equity lines and loans 338 10 — 348 216,446 216,794 1,481 218,275 Residential mortgage 1,386 79 — 1,465 453,004 454,469 4,417 458,886 Construction — — — — 212,454 212,454 — 212,454 Commercial and industrial 658 286 — 944 716,662 717,606 1,706 719,312 Consumer 1,106 — — 1,106 37,047 38,153 — 38,153 Leases 125 177 — 302 114,996 115,298 103 115,401 Total portfolio loans and leases $ 4,979 $ 2,980 $ — $ 7,959 $ 3,269,320 $ 3,277,279 $ 8,579 $ 3,285,858 *Included as “current” are $720 thousand and $4.1 million of loans and leases as of September 30, 2018 and December 31, 2017 , respectively, which are classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent. The following tables present an aging of originated portfolio loans and leases as of the dates indicated: Accruing Loans and Leases As of September 30, 2018 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ — $ 76 $ — $ 76 $ 1,259,321 $ 1,259,397 $ — $ 1,259,397 Home equity lines and loans 250 — — 250 178,126 178,376 1,692 180,068 Residential mortgage 1,475 — — 1,475 377,594 379,069 1,968 381,037 Construction 488 — — 488 157,912 158,400 291 158,691 Commercial and industrial 1,051 1,255 — 2,306 614,969 617,275 925 618,200 Consumer 46 23 — 69 44,722 44,791 42 44,833 Leases 407 115 — 522 108,933 109,455 479 109,934 Total originated portfolio loans and leases $ 3,717 $ 1,469 $ — $ 5,186 $ 2,741,577 $ 2,746,763 $ 5,397 $ 2,752,160 Accruing Loans and Leases As of December 31, 2017 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ 1,255 $ 81 $ — $ 1,336 $ 1,120,901 $ 1,122,237 $ 90 $ 1,122,327 Home equity lines and loans 26 — — 26 182,036 182,062 1,221 183,283 Residential mortgage 721 — — 721 358,709 359,430 1,505 360,935 Construction — — — — 128,266 128,266 — 128,266 Commercial and industrial 439 236 — 675 587,803 588,478 826 589,304 Consumer 21 — — 21 35,125 35,146 — 35,146 Leases 125 177 — 302 67,630 67,932 103 68,035 Total originated portfolio loans and leases $ 2,587 $ 494 $ — $ 3,081 $ 2,480,470 $ 2,483,551 $ 3,745 $ 2,487,296 *Included as “current” are $720 thousand and $4.0 million of loans and leases as of September 30, 2018 and December 31, 2017 , respectively, which are classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent. The following tables present an aging of acquired portfolio loans and leases as of the dates indicated: Accruing Loans and Leases As of September 30, 2018 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ — $ 2,392 $ — $ 2,392 $ 355,969 $ 358,361 $ 735 $ 359,096 Home equity lines and loans 74 — — 74 27,423 27,497 241 27,738 Residential mortgage 743 179 — 922 84,641 85,563 802 86,365 Construction — — — — 19,802 19,802 — 19,802 Commercial and industrial 64 — — 64 103,878 103,942 857 104,799 Consumer — — — — 2,901 2,901 75 2,976 Leases 344 137 — 481 27,175 27,656 883 28,539 Total acquired portfolio loans and leases $ 1,225 $ 2,708 $ — $ 3,933 $ 621,789 $ 625,722 $ 3,593 $ 629,315 Accruing Loans and Leases As of December 31, 2017 30 – 59 Days Past Due 60 – 89 Days Past Due Over 89 Days Past Due Total Past Due Current* Total Accruing Loans and Leases Nonaccrual Loans and Leases Total Loans and Leases (dollars in thousands) Commercial mortgage $ 111 $ 2,347 $ — $ 2,458 $ 397,810 $ 400,268 $ 782 $ 401,050 Home equity lines and loans 312 10 — 322 34,410 34,732 260 34,992 Residential mortgage 665 79 — 744 94,295 95,039 2,912 97,951 Construction — — — — 84,188 84,188 — 84,188 Commercial and industrial 219 50 — 269 128,859 129,128 880 130,008 Consumer 1,085 — — 1,085 1,922 3,007 — 3,007 Leases — — — — 47,366 47,366 — 47,366 Total acquired portfolio loans and leases $ 2,392 $ 2,486 $ — $ 4,878 $ 788,850 $ 793,728 $ 4,834 $ 798,562 *Included as “current” are $0 and $102 thousand of loans and leases as of September 30, 2018 and December 31, 2017 , respectively, which are classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent. |
Allowance for Credit Losses on Financing Receivables | The following tables detail the roll-forward of the Allowance for the three and nine months ended September 30, 2018 and 2017 : (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total Balance, $ 7,550 $ 1,086 $ 1,926 $ 937 $ 5,038 $ 246 $ 742 $ — $ 17,525 Charge-offs (74 ) (225 ) (42 ) — (1,069 ) (165 ) (2,416 ) — (3,991 ) Recoveries 8 1 55 1 17 5 232 — 319 Provision for loan and lease losses 60 30 (121 ) 303 1,319 232 3,008 — 4,831 Balance, $ 7,544 $ 892 $ 1,818 $ 1,241 $ 5,305 $ 318 $ 1,566 $ — $ 18,684 (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total Balance, $ 8,033 $ 933 $ 1,933 $ 1,158 $ 5,672 $ 289 $ 1,380 $ — $ 19,398 Charge-offs (58 ) — (42 ) — (319 ) (73 ) (1,068 ) — (1,560 ) Recoveries 2 — 54 — 16 2 108 — 182 Provision for loan and lease losses (433 ) (41 ) (127 ) 83 (64 ) 100 1,146 — 664 Balance, $ 7,544 $ 892 $ 1,818 $ 1,241 $ 5,305 $ 318 $ 1,566 $ — $ 18,684 (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total Balance, $ 6,227 $ 1,255 $ 1,917 $ 2,233 $ 5,142 $ 153 $ 559 $ — $ 17,486 Charge-offs — (676 ) (158 ) — (560 ) (96 ) (924 ) — (2,414 ) Recoveries 9 — 85 3 18 5 271 — 391 Provision for loan and lease losses 1,096 513 (23 ) (1,306 ) 280 148 833 — 1,541 Balance, $ 7,332 $ 1,092 $ 1,821 $ 930 $ 4,880 $ 210 $ 739 $ — $ 17,004 (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total Balance, $ 6,608 $ 1,214 $ 1,776 $ 1,111 $ 4,813 $ 177 $ 700 $ — $ 16,399 Charge-offs — (69 ) (88 ) — (301 ) (37 ) (411 ) — (906 ) Recoveries 3 — 85 1 2 1 86 — 178 Provision for loan and lease losses 721 (53 ) 48 (182 ) 366 69 364 — 1,333 Balance, $ 7,332 $ 1,092 $ 1,821 $ 930 $ 4,880 $ 210 $ 739 $ — $ 17,004 |
Financing Receivable by Financial Instrument Performance Status | The following tables detail the allocation of the Allowance for all portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ 19 $ 228 $ — $ 11 $ 20 $ — $ — $ 278 Collectively evaluated for impairment 7,544 873 1,590 1,241 5,294 298 1,566 — 18,406 Purchased credit-impaired (1) — — — — — — — — — Total $ 7,544 $ 892 $ 1,818 $ 1,241 $ 5,305 $ 318 $ 1,566 $ — $ 18,684 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Unallocated Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ 19 $ 230 $ — $ 5 $ 4 $ — $ — $ 258 Collectively evaluated for impairment 7,550 1,067 1,696 937 5,033 242 742 — 17,267 Purchased credit-impaired (1) — — — — — — — — — Total $ 7,550 $ 1,086 $ 1,926 $ 937 $ 5,038 $ 246 $ 742 $ — $ 17,525 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following tables detail the carrying value for all portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 736 $ 2,602 $ 5,940 $ 291 $ 1,757 $ 144 $ — $ 11,470 Collectively evaluated for impairment 1,609,375 204,694 461,462 175,802 705,015 47,665 138,473 3,342,486 Purchased credit-impaired (1) 8,382 510 — 2,400 16,227 — — 27,519 Total $ 1,618,493 $ 207,806 $ 467,402 $ 178,493 $ 722,999 $ 47,809 $ 138,473 $ 3,381,475 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As of Commercial Home Equity Residential Construction Commercial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 2,128 $ 2,162 $ 7,726 $ — $ 1,897 $ 27 $ — $ 13,940 Collectively evaluated for impairment 1,503,825 215,604 451,160 204,088 712,865 38,126 115,401 3,241,069 Purchased credit-impaired (1) 17,424 509 — 8,366 4,550 — — 30,849 Total $ 1,523,377 $ 218,275 $ 458,886 $ 212,454 $ 719,312 $ 38,153 $ 115,401 $ 3,285,858 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following tables detail the allocation of the Allowance for originated portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ 19 $ 179 $ — $ 4 $ 4 $ — $ 206 Collectively evaluated for impairment 7,544 873 1,590 1,241 5,294 298 1,566 18,406 Total $ 7,544 $ 892 $ 1,769 $ 1,241 $ 5,298 $ 302 $ 1,566 $ 18,612 As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ 19 $ 180 $ — $ 5 $ 4 $ — $ 208 Collectively evaluated for impairment 7,550 1,067 1,696 937 5,033 242 742 17,267 Total $ 7,550 $ 1,086 $ 1,876 $ 937 $ 5,038 $ 246 $ 742 $ 17,475 The following tables detail the carrying value for originated portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Home Equity Residential Construction Commercial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ — $ 2,361 $ 4,268 $ 291 $ 1,294 $ 68 $ — $ 8,282 Collectively evaluated for impairment 1,259,397 177,707 376,769 158,400 616,906 44,765 109,934 2,743,878 Total $ 1,259,397 $ 180,068 $ 381,037 $ 158,691 $ 618,200 $ 44,833 $ 109,934 $ 2,752,160 As of Commercial Home Equity Residential Construction Commercial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 1,345 $ 1,902 $ 4,418 $ — $ 1,186 $ 27 $ — $ 8,878 Collectively evaluated for impairment 1,120,982 181,381 356,517 128,266 588,118 35,119 68,035 2,478,418 Total $ 1,122,327 $ 183,283 $ 360,935 $ 128,266 $ 589,304 $ 35,146 $ 68,035 $ 2,487,296 The following tables detail the allocation of the Allowance for acquired portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Home Equity Residential Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ 49 $ — $ 7 $ 16 $ — $ 72 Collectively evaluated for impairment — — — — — — — — Purchased credit-impaired (1) — — — — — — — — Total $ — $ — $ 49 $ — $ 7 $ 16 $ — $ 72 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As of Commercial Home Equity Residential Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ 50 $ — $ — $ — $ — $ 50 Collectively evaluated for impairment — — — — — — — — Purchased credit-impaired (1) — — — — — — — — Total $ — $ — $ 50 $ — $ — $ — $ — $ 50 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. The following tables detail the carrying value for acquired portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of September 30, 2018 and December 31, 2017 : As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 736 $ 241 $ 1,672 $ — $ 463 $ 76 $ — $ 3,188 Collectively evaluated for impairment 349,978 26,987 84,693 17,402 88,109 2,900 28,539 598,608 Purchased credit-impaired (1) 8,382 510 — 2,400 16,227 — — 27,519 Total $ 359,096 $ 27,738 $ 86,365 $ 19,802 $ 104,799 $ 2,976 $ 28,539 $ 629,315 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. As of Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 783 $ 260 $ 3,308 $ — $ 711 $ — $ — $ 5,062 Collectively evaluated for impairment 382,843 34,223 94,643 75,822 124,747 3,007 47,366 762,651 Purchased credit-impaired (1) 17,424 509 — 8,366 4,550 — — 30,849 Total $ 401,050 $ 34,992 $ 97,951 $ 84,188 $ 130,008 $ 3,007 $ 47,366 $ 798,562 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. |
Financing Receivable Credit Quality Indicators | The following tables detail the carrying value of acquired portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of September 30, 2018 and December 31, 2017 : Credit Risk Profile by Internally Assigned Grade Commercial Mortgage Construction Commercial and Industrial Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Pass $ 339,258 $ 376,691 $ 16,468 $ 66,967 $ 87,183 $ 124,249 $ 442,909 $ 567,907 Special Mention 2,321 13,448 934 3,902 227 225 3,482 17,575 Substandard 16,966 10,038 2,400 13,319 17,389 4,624 36,755 27,981 Doubtful 551 873 — — — 910 551 1,783 Total $ 359,096 $ 401,050 $ 19,802 $ 84,188 $ 104,799 $ 130,008 $ 483,697 $ 615,246 The following tables detail the carrying value of all portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of September 30, 2018 and December 31, 2017 : Credit Risk Profile by Internally Assigned Grade Commercial Mortgage Construction Commercial and Industrial Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Pass $ 1,592,174 $ 1,490,862 $ 168,897 $ 193,227 $ 697,913 $ 711,145 $ 2,458,984 $ 2,395,234 Special Mention 2,321 13,448 934 3,902 2,425 889 5,680 18,239 Substandard 23,447 18,194 8,662 15,325 22,660 6,013 54,769 39,532 Doubtful 551 873 — — 1 1,265 552 2,138 Total $ 1,618,493 $ 1,523,377 $ 178,493 $ 212,454 $ 722,999 $ 719,312 $ 2,519,985 $ 2,455,143 Credit Risk Profile by Payment Activity Residential Mortgage Home Equity Lines Consumer Leases Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Performing $ 464,632 $ 454,469 $ 205,873 $ 216,794 $ 47,692 $ 38,153 $ 137,111 $ 115,298 $ 855,308 $ 824,714 Non-performing 2,770 4,417 1,933 1,481 117 — 1,362 103 6,182 6,001 Total $ 467,402 $ 458,886 $ 207,806 $ 218,275 $ 47,809 $ 38,153 $ 138,473 $ 115,401 $ 861,490 $ 830,715 The following tables detail the carrying value of originated portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of September 30, 2018 and December 31, 2017 : Credit Risk Profile by Internally Assigned Grade Commercial Mortgage Construction Commercial and Industrial Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Pass $ 1,252,916 $ 1,114,171 $ 152,429 $ 126,260 $ 610,730 $ 586,896 $ 2,016,075 $ 1,827,327 Special Mention — — — — 2,198 664 2,198 664 Substandard 6,481 8,156 6,262 2,006 5,271 1,389 18,014 11,551 Doubtful — — — — 1 355 1 355 Total $ 1,259,397 $ 1,122,327 $ 158,691 $ 128,266 $ 618,200 $ 589,304 $ 2,036,288 $ 1,839,897 Credit Risk Profile by Payment Activity Residential Mortgage Home Equity Lines Consumer Leases Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Performing $ 379,069 $ 359,430 $ 178,376 $ 182,062 $ 44,791 $ 35,146 $ 109,455 $ 67,932 $ 711,691 $ 644,570 Non-performing 1,968 1,505 1,692 1,221 42 — 479 103 4,181 2,829 Total $ 381,037 $ 360,935 $ 180,068 $ 183,283 $ 44,833 $ 35,146 $ 109,934 $ 68,035 $ 715,872 $ 647,399 |
Schedule of Allowance for Loan Losses by Portfolio Segment | Residential Mortgage Home Equity Lines Consumer Leases Total (dollars in thousands) September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Performing $ 85,563 $ 95,039 $ 27,497 $ 34,732 $ 2,901 $ 3,007 $ 27,656 $ 47,366 $ 143,617 $ 180,144 Non-performing 802 2,912 241 260 75 — 883 — 2,001 3,172 Total $ 86,365 $ 97,951 $ 27,738 $ 34,992 $ 2,976 $ 3,007 $ 28,539 $ 47,366 $ 145,618 $ 183,316 |
Troubled Debt Restructurings on Financing Receivables | The following table presents the balance of TDRs as of the indicated dates: (dollars in thousands) September 30, 2018 December 31, 2017 TDRs included in nonperforming loans and leases $ 1,208 $ 3,289 TDRs in compliance with modified terms 4,316 5,800 Total TDRs $ 5,524 $ 9,089 The following table presents information regarding loan and lease modifications categorized as TDRs for the three months ended September 30, 2018 : For the Three Months Ended September 30, 2018 (dollars in thousands) Number of Contracts Pre-Modification Outstanding Post-Modification Outstanding Home equity loans and lines — $ — $ — Residential mortgages 4 406 430 Leases — — — Total 4 $ 406 $ 430 The following table presents information regarding the types of loan and lease modifications made for the three months ended September 30, 2018 : Number of Contracts Loan Term Extension Interest Rate Change and Term Extension Interest Rate Change and/or Interest-Only Period Contractual Payment Reduction (Leases only) Temporary Payment Deferral Home equity loans and lines — — — — — Residential mortgages 1 — — — 3 Leases — — — — — Total 1 — — — 3 The following table presents information regarding loan and lease modifications categorized as TDRs for the nine months ended September 30, 2018 : For the Nine Months Ended September 30, 2018 (dollars in thousands) Number of Contracts Pre-Modification Outstanding Post-Modification Outstanding Home equity loans and lines 1 $ 8 $ 8 Residential mortgages 6 625 649 Commercial and industrial 1 18 18 Leases 2 33 33 Total 10 $ 684 $ 708 The following table presents information regarding the types of loan and lease modifications made for the nine months ended September 30, 2018 : Number of Contracts Loan Term Extension Interest Rate Change and Term Extension Interest Rate Change and/or Interest-Only Period Contractual Payment Reduction (Leases only) Temporary Payment Deferral Home equity loans and lines — 1 — — — Residential mortgages 2 1 — — 3 Commercial and industrial — 1 — — — Leases — — — 2 — Total 2 3 — 2 3 |
Impaired Financing Receivables | The following tables detail the recorded investment and principal balance of impaired loans by portfolio segment, their related Allowance and interest income recognized for the three and nine months ended September 30, 2018 and 2017 (purchased credit-impaired loans are not included in the tables): As of and for the Three Months Ended Recorded Investment** Principal Balance Related Allowance Average Principal Balance Interest Income Recognized Cash-Basis Interest Income Recognized (dollars in thousands) Impaired loans with related allowance: Home equity lines and loans $ 567 $ 567 $ 19 $ 569 $ 6 $ — Residential mortgage 1,699 1,699 228 1,702 20 — Commercial and industrial 25 25 12 25 — — Consumer 58 58 19 58 — — Total $ 2,349 $ 2,349 $ 278 $ 2,354 $ 26 $ — Impaired loans without related allowance*: Commercial mortgage $ 735 $ 793 $ — $ 930 $ — $ — Home equity lines and loans 2,035 2,096 — 2,064 2 — Residential mortgage 4,242 4,328 — 4,299 24 — Construction 291 291 — 294 — — Commercial and industrial 1,733 2,665 — 2,138 5 — Consumer 86 86 — 87 — — Total $ 9,122 $ 10,259 $ — $ 9,812 $ 31 $ — Grand total $ 11,471 $ 12,608 $ 278 $ 12,166 $ 57 $ — * The table above does not include the recorded investment of $1.4 million of impaired leases without a related Allowance. **Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. As of and for the Nine Months Ended Recorded Investment** Principal Balance Related Allowance Average Principal Balance Interest Income Recognized Cash-Basis Interest Income Recognized (dollars in thousands) Impaired loans with related allowance: Home equity lines and loans $ 567 $ 567 $ 19 $ 572 $ 17 $ — Residential mortgage 1,699 1,699 228 1,709 60 — Commercial and industrial 25 25 12 29 1 — Consumer 58 58 19 58 1 — Total $ 2,349 $ 2,349 $ 278 $ 2,368 $ 79 $ — Impaired loans without related allowance*: Commercial mortgage $ 735 $ 793 $ — $ 825 $ 6 $ — Home equity lines and loans 2,035 2,096 — 2,086 10 — Residential mortgage 4,242 4,328 — 4,228 91 — Construction 291 291 239 5 — Commercial and industrial 1,733 2,665 — 2,236 56 — Consumer 86 86 88 3 — Total $ 9,122 $ 10,259 $ — $ 9,702 $ 171 $ — Grand total $ 11,471 $ 12,608 $ 278 $ 12,070 $ 250 $ — * The table above does not include the recorded investment of $1.4 million of impaired leases without a related Allowance. **Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. As of and for the Three Months Ended Recorded Investment** Principal Balance Related Allowance Average Principal Balance Interest Income Recognized Cash-Basis Interest Income Recognized (dollars in thousands) Impaired loans with related allowance: Home equity lines and loans $ 21 $ 21 $ 3 $ 21 $ — $ — Residential mortgage 1,770 1,770 116 1,776 23 — Consumer 27 27 4 28 — — Total $ 1,818 $ 1,818 $ 123 $ 1,825 $ 23 $ — Impaired loans without related allowance*: Commercial mortgage $ 1,449 $ 1,485 $ — $ 1,451 $ 15 $ — Home equity lines and loans 633 694 — 655 1 — Residential mortgage 4,688 5,015 — 4,243 43 — Commercial and industrial 1,940 2,796 — 2,605 2 — Total $ 8,710 $ 9,990 $ — $ 8,954 $ 61 $ — Grand total $ 10,528 $ 11,808 $ 123 $ 10,779 $ 84 $ — * The table above does not include the recorded investment of $270 thousand of impaired leases without a related Allowance. **Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. As of and for the Nine Months Ended Recorded Investment** Principal Balance Related Allowance Average Principal Balance Interest Income Recognized Cash-Basis Interest Income Recognized (dollars in thousands) Impaired loans with related allowance: Home equity lines and loans $ 21 $ 21 $ 3 $ 21 $ 1 $ — Residential mortgage 1,770 1,770 116 1,797 67 — Consumer 27 27 4 28 1 — Total $ 1,818 $ 1,818 $ 123 $ 1,846 $ 69 $ — Impaired loans without related allowance*: Commercial mortgage $ 1,449 $ 1,485 $ — $ 1,475 $ 45 $ — Home equity lines and loans 633 694 — 669 5 — Residential mortgage 4,688 5,015 — 4,288 118 — Commercial and industrial 1,940 2,796 — 2,746 34 — Total $ 8,710 $ 9,990 $ — $ 9,178 $ 202 $ — Grand total $ 10,528 $ 11,808 $ 123 $ 11,024 $ 271 $ — * The table above does not include the recorded investment of $270 thousand of impaired leases without a related Allowance. **Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. (dollars in thousands) Recorded Investment (2) Principal Balance Related Allowance As of Impaired loans with related allowance: Home equity lines and loans $ 577 $ 577 $ 19 Residential mortgage 2,436 2,435 230 Commercial and industrial 18 19 5 Consumer 27 27 4 Total $ 3,058 $ 3,058 $ 258 Impaired loans without related allowance (1) : Home equity lines and loans $ 1,585 $ 1,645 $ — Residential mortgage 5,290 5,529 — Commercial and industrial 1,879 3,613 — Commercial mortgage 2,128 2,218 — Total $ 10,882 $ 13,005 $ — Grand total $ 13,940 $ 16,063 $ 258 (1) The table above does not include the recorded investment of $272 thousand of impaired leases without a related Allowance. (2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal. |
Summary of Loans Acquired | The following tables detail, for acquired loans , the outstanding principal, remaining Loan Mark, and recorded investment, by portfolio segment, as of the dates indicated: As of September 30, 2018 (dollars in thousands) Outstanding Remaining Recorded Commercial mortgage $ 369,894 $ (10,798 ) $ 359,096 Home equity lines and loans 30,240 (2,502 ) 27,738 Residential mortgage 89,302 (2,937 ) 86,365 Construction 20,142 (340 ) 19,802 Commercial and industrial 111,799 (7,000 ) 104,799 Consumer 3,094 (118 ) 2,976 Leases 29,793 (1,254 ) 28,539 Total $ 654,264 $ (24,949 ) $ 629,315 As of December 31, 2017 (dollars in thousands) Outstanding Remaining Recorded Commercial mortgage $ 412,263 $ (11,213 ) $ 401,050 Home equity lines and loans 37,944 (2,952 ) 34,992 Residential mortgage 101,523 (3,572 ) 97,951 Construction 86,081 (1,893 ) 84,188 Commercial and industrial 141,960 (11,952 ) 130,008 Consumer 3,051 (44 ) 3,007 Leases 50,530 (3,164 ) 47,366 Total $ 833,352 $ (34,790 ) $ 798,562 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Servicing Asset at Amortized Cost | The following table summarizes the Corporation’s activity related to mortgage servicing rights (“MSRs”) for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, (dollars in thousands) 2018 2017 Balance, beginning of period $ 5,511 $ 5,682 Additions — 282 Amortization (206 ) (229 ) Recovery / (Impairment) 23 (3 ) Balance, end of period $ 5,328 $ 5,732 Fair value $ 6,586 $ 6,146 Nine Months Ended September 30, (dollars in thousands) 2018 2017 Balance, beginning of period $ 5,861 $ 5,582 Additions 16 770 Amortization (623 ) (571 ) Recovery / (Impairment) 74 (49 ) Balance, end of period $ 5,328 $ 5,732 Fair value $ 6,586 $ 6,146 Residential mortgage loans serviced for others $ 596,162 $ 647,997 |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | As of September 30, 2018 , and December 31, 2017 , key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10% and 20% adverse changes in those assumptions are as follows: (dollars in thousands) September 30, December 31, Fair value amount of MSRs $ 6,586 $ 6,397 Weighted average life (in years) 6.6 6.1 Prepayment speeds (constant prepayment rate)* 8.7 % 10.3 % Impact on fair value: 10% adverse change $ (85 ) $ (194 ) 20% adverse change $ (190 ) $ (394 ) Discount rate 9.55 % 9.55 % Impact on fair value: 10% adverse change $ (245 ) $ (225 ) 20% adverse change $ (472 ) $ (434 ) * Represents the weighted average prepayment rate for the life of the MSR asset. |
Goodwill and Intangibles Asse_2
Goodwill and Intangibles Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table presents activity in the Corporation's goodwill by its reporting units and finite-lived and indefinite-lived intangible assets, other than MSRs, for the nine months ended September 30, 2018 : (dollars in thousands) Balance Additions Adjustments Amortization Balance Amortization Goodwill – Wealth $ 20,412 $ — $ — $ — $ 20,412 Indefinite Goodwill – Banking 153,545 — 3,298 — 156,843 Indefinite Goodwill – Insurance 5,932 677 — — 6,609 Indefinite Total Goodwill $ 179,889 $ 677 $ 3,298 $ — $ 183,864 Core deposit intangible $ 7,380 $ — $ — $ (1,108 ) $ 6,272 10 years Customer relationships 14,173 994 — (1,271 ) 13,896 10 to 20 years Non-compete agreements 1,319 — — (171 ) 1,148 5 to 10 years Trade name 2,322 — — (49 ) 2,273 3 years to Indefinite Domain name 151 — — — 151 Indefinite Favorable lease assets 621 — — (60 ) 561 1 to 16 years Total Intangible Assets $ 25,966 $ 994 $ — $ (2,659 ) $ 24,301 Total Goodwill and Intangible Assets $ 205,855 $ 1,671 $ 3,298 $ (2,659 ) $ 208,165 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Summary of Deposits | The following table details the components of deposits: September 30, December 31, (dollars in thousands) Interest-bearing demand $ 578,243 $ 481,336 Money market 812,027 862,639 Savings 286,266 338,572 Retail time deposits 561,123 532,202 Wholesale non-maturity deposits 24,040 62,276 Wholesale time deposits 261,164 171,929 Total interest-bearing deposits $ 2,522,863 $ 2,448,954 Noninterest-bearing deposits 834,363 924,844 Total deposits $ 3,357,226 $ 3,373,798 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term FHLB Advances (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Long-term Federal Home Loan Bank Advances [Abstract] | |
Schedule of Short-term Debt | A summary of short-term borrowings is as follows: (dollars in thousands) September 30, December 31, Repurchase agreements* – commercial customers $ 21,548 $ 25,865 Short-term FHLB advances 204,950 212,000 Total short-term borrowings $ 226,498 $ 237,865 * Overnight repurchase agreements with no expiration date |
Schedule of Additional Information on Short Term Borrowings | The following table sets forth information concerning short-term borrowings: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Balance at period-end $ 226,498 $ 180,874 $ 226,498 $ 180,874 Maximum amount outstanding at any month end $ 302,932 $ 184,578 $ 302,932 $ 184,578 Average balance outstanding during the period $ 218,551 $ 182,845 $ 205,046 $ 110,268 Weighted-average interest rate: As of the period-end 2.18 % 1.17 % 2.18 % 1.17 % Paid during the period 2.09 % 1.19 % 1.85 % 0.98 % |
Schedule of Maturities of Long-term Debt | The following table presents the remaining periods until maturity of long-term FHLB advances: (dollars in thousands) September 30, December 31, Within one year $ 28,106 $ 83,766 Over one year through five years 44,735 55,374 Total $ 72,841 $ 139,140 |
Schedule of Federal Home Loan Bank Advances and Other Borrowings Maturities | The following table presents rate and maturity information on FHLB advances and other borrowings: Maturity Range (1) Weighted Average Rate (1) Coupon Rate (1) Balance at Description From To From To September 30, December 31, Bullet maturity – fixed rate 10/1/2018 1/2/2020 1.32 % 1.31 % 2.45 % $ 72,841 $ 118,131 Convertible-fixed (2) N/A N/A N/A N/A N/A — 21,009 Total $ 72,841 $ 139,140 (1)Maturity range, weighted average rate and coupon rate range refers to September 30, 2018 balances. (2) FHLB advances whereby the FHLB has the option, at predetermined times, to convert the fixed interest rate to an adjustable interest rate indexed to the London Interbank Offered Rate (“LIBOR”). The Corporation has the option to prepay these advances, without penalty, if the FHLB elects to convert the interest rate to an adjustable rate. As of September 30, 2018 , the Corporation held no FHLB advances with this convertible feature |
Subordinated Notes (Tables)
Subordinated Notes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Subordinated Debt [Abstract] | |
Schedule of Long-term Debt Instruments | The following tables detail the subordinated notes, including debt issuance costs, as of September 30, 2018 , and December 31, 2017 : September 30, 2018 December 31, 2017 (dollars in thousands) Balance Rate (1)(2) Balance Rate (1)(2) Subordinated notes – due 2027 $ 68,855 4.25 % $ 68,829 4.25 % Subordinated notes – due 2025 29,627 4.75 % 29,587 4.75 % Total subordinated notes $ 98,482 $ 98,416 (1)The 2027 Notes bear interest at an annual fixed rate of 4.25% from the date of issuance until December 14, 2022, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 2.050% until December 15, 2027, or any early redemption date. (2)The 2025 Notes bear interest at an annual fixed rate of 4.75% from the date of issuance until August 14, 2020, and will thereafter bear interest at a variable rate that will reset quarterly to a level equal to the then-current three-month LIBOR rate plus 3.068% until August 15, 2025, or any early redemption date. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables detail the derivative instruments as of September 30, 2018 and December 31, 2017 : Asset Derivatives Liability Derivatives (dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Derivatives not designated as hedging instruments As of September 30, 2018: Customer derivatives – interest rate swaps $ 295,566 $ 5,843 $ 295,566 $ 5,843 RPAs sold — — 865 1 RPAs purchased 35,464 43 — — Total derivatives $ 331,030 $ 5,886 $ 296,431 $ 5,844 As of December 31, 2017: Customer derivatives – interest rate swaps $ 124,627 $ 1,895 $ 124,627 $ 1,895 RPAs sold — — 899 3 RPAs purchased 14,710 21 — — Total derivatives $ 139,337 $ 1,916 $ 125,526 $ 1,898 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table details the components of accumulated other comprehensive (loss) income for the three and nine month periods ended September 30, 2018 and 2017 : (dollars in thousands) Net Change in Unrealized Gains on Available-for- Sale Investment Securities Net Change in Unfunded Pension Liability Accumulated Other Comprehensive Loss Balance, June 30, 2018 $ (9,669 ) $ (1,522 ) $ (11,191 ) Other comprehensive (loss) income (2,319 ) 108 (2,211 ) Balance, September 30, 2018 $ (11,988 ) $ (1,414 ) $ (13,402 ) Balance, June 30, 2017 $ (433 ) $ (1,131 ) $ (1,564 ) Other comprehensive income 149 15 164 Balance, September 30, 2017 $ (284 ) $ (1,116 ) $ (1,400 ) (dollars in thousands) Net Change in Unrealized Gains on Available-for- Sale Investment Securities Net Change in Unfunded Pension Liability Accumulated Other Comprehensive Loss Balance, December 31, 2017 $ (2,861 ) $ (1,553 ) $ (4,414 ) Other comprehensive (loss) income (9,127 ) 139 (8,988 ) Balance, September 30, 2018 $ (11,988 ) $ (1,414 ) $ (13,402 ) Balance, December 31, 2016 $ (1,231 ) $ (1,178 ) $ (2,409 ) Other comprehensive income 947 62 1,009 Balance, September 30, 2017 $ (284 ) $ (1,116 ) $ (1,400 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following table details the amounts reclassified from each component of accumulated other comprehensive loss to each component’s applicable income statement line, for the three and nine month periods ended September 30, 2018 and 2017 : Amount Reclassified from Accumulated Other Comprehensive Loss Description of Accumulated Other Comprehensive Loss Component Three Months Ended Affected Income Statement Category 2018 2017 Net unrealized gain on investment securities available for sale: Realization of gain on sale of investment securities available for sale $ — $ 72 Net gain on sale of available for sale investment securities Realization of gain on transfer of investment securities available for sale to trading — — Other operating income Total $ — $ 72 Income tax effect — 25 Income tax expense Net of income tax $ — $ 47 Net income Unfunded pension liability: Amortization of net loss included in net periodic pension costs* $ 25 $ 24 Other operating expenses Income tax effect 5 8 Income tax expense Net of income tax $ 20 $ 16 Net income Amount Reclassified from Accumulated Other Comprehensive Loss Description of Accumulated Other Comprehensive Loss Component Nine Months Ended Affected Income Statement Category 2018 2017 Net unrealized gain on investment securities available for sale: Realization of gain on sale of investment securities available for sale $ 7 $ 73 Net gain on sale of available for sale investment securities Realization of gain on transfer of investment securities available for sale to trading 417 — Other operating income Total $ 424 $ 73 Income tax effect 89 27 Income tax expense Net of income tax $ 335 $ 46 Net income Unfunded pension liability: Amortization of net loss included in net periodic pension costs* $ 75 $ 71 Other operating expenses Income tax effect 15 25 Income tax expense Net of income tax $ 60 $ 46 Net income *Accumulated other comprehensive loss components are included in the computation of net periodic pension cost. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Nine Months Ended (dollars in thousands except share and per share data) 2018 2017 2018 2017 Numerator: Net income available to common shareholders $ 16,682 $ 10,739 $ 46,656 $ 29,216 Denominator for basic earnings per share – weighted average shares outstanding 20,270,706 17,023,046 20,237,757 16,987,499 Effect of dilutive common shares 167,670 230,936 206,318 254,728 Denominator for diluted earnings per share – adjusted weighted average shares outstanding 20,438,376 17,253,982 20,444,075 17,242,227 Basic earnings per share $ 0.82 $ 0.63 $ 2.31 $ 1.72 Diluted earnings per share $ 0.82 $ 0.62 $ 2.28 $ 1.69 Antidilutive shares excluded from computation of average dilutive earnings per share 22,232 21,621 48,807 47,268 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Corporation’s noninterest income by revenue stream and reportable segment for the three and nine months ended September 30, 2018 and 2017 . Items outside the scope of ASC 606 are noted as such. Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (dollars in thousands) Banking Wealth Consolidated Banking Wealth Consolidated Fees for wealth management services $ — $ 10,343 $ 10,343 $ — $ 9,651 $ 9,651 Insurance commissions — 1,754 1,754 — 1,373 1,373 Capital markets revenue (1) 710 — 710 843 — 843 Service charges on deposit accounts 726 — 726 676 — 676 Loan servicing and other fees (1) 559 — 559 548 — 548 Net gain on sale of loans (1) 631 — 631 799 — 799 Net gain on sale of investment securities available for sale (1) — — — 72 — 72 Net gain on sale of other real estate owned 5 — 5 — — — Dividends on FHLB and FRB stock (1) 375 — 375 217 — 217 Other operating income (2) 3,123 48 3,171 1,364 41 1,405 Total noninterest income $ 6,129 $ 12,145 $ 18,274 $ 4,519 $ 11,065 $ 15,584 (1) Not within the scope of ASC 606. (2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $595 thousand and $520 thousand for the three months ended September 30, 2018 and 2017 , respectively, which are within the scope of ASC 606. Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (dollars in thousands) Banking Wealth Consolidated Banking Wealth Consolidated Fees for wealth management services $ — $ 31,309 $ 31,309 $ — $ 28,761 $ 28,761 Insurance commissions — 5,349 5,349 — 3,079 3,079 Capital markets revenue (1) 3,481 — 3,481 1,796 — 1,796 Service charges on deposit accounts 2,191 — 2,191 1,953 — 1,953 Loan servicing and other fees (1) 1,720 — 1,720 1,570 — 1,570 Net gain on sale of loans (1) 1,677 — 1,677 1,948 — 1,948 Net gain on sale of investment securities available for sale (1) 7 — 7 73 — 73 Net gain (loss) on sale of other real estate owned 292 — 292 (12 ) — (12 ) Dividends on FHLB and FRB stock (1) 1,316 — 1,316 649 — 649 Other operating income (2) 10,393 150 10,543 3,641 138 3,779 Total noninterest income $ 21,077 $ 36,808 $ 57,885 $ 11,618 $ 31,978 $ 43,596 (1) Not within the scope of ASC 606. (2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $1.7 million and $1.5 million for the nine months ended September 30, 2018 and 2017 , respectively, which are within the scope of ASC 606. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity | The following table provides information about options outstanding for the three months ended September 30, 2018 : Shares Weighted Weighted Options outstanding, June 30, 2018 66,571 $ 19.26 $ 4.71 Forfeited — — — Expired — — — Exercised (15,150 ) $ 23.02 $ 5.09 Options outstanding, September 30, 2018 51,421 $ 18.15 $ 4.60 The following table provides information about options outstanding for the nine months ended September 30, 2018 : Shares Weighted Weighted Options outstanding, December 31, 2017 115,246 $ 20.73 $ 4.86 Forfeited — — — Expired — — — Exercised (63,825 ) $ 22.81 $ 5.06 Options outstanding, September 30, 2018 51,421 $ 18.15 $ 4.60 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | Proceeds, related tax benefits realized from options exercised and intrinsic value of options exercised were as follows: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Proceeds from exercise of stock options $ 349 $ 283 $ 1,456 $ 1,288 Related tax benefit recognized 81 96 312 402 Net proceeds of options exercised $ 430 $ 379 $ 1,768 $ 1,690 Intrinsic value of options exercised $ 386 $ 273 $ 1,484 $ 1,147 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | The following table provides information about options outstanding and exercisable at September 30, 2018 : (dollars in thousands, except share data and exercise price) Outstanding Exercisable Number of shares 51,421 51,421 Weighted average exercise price $ 18.15 $ 18.15 Aggregate intrinsic value $ 1,478 $ 1,478 Weighted average remaining contractual term in years 0.9 0.9 |
Schedule of Nonvested Restricted Stock Units Activity | The following table details the RSUs for the three and nine months ended September 30, 2018 : Three Months Ended Nine Months Ended Number of Shares Weighted Number of Shares Weighted Beginning balance 68,595 $ 36.89 75,707 $ 35.80 Granted 23,843 $ 46.29 26,243 $ 46.07 Vested (16,122 ) $ 33.65 (24,469 ) $ 32.16 Forfeited — $ — (1,165 ) $ 35.36 Ending balance 76,316 $ 40.51 76,316 $ 40.51 |
Schedule of Nonvested Performance-based Units Activity | The following table details the PSUs for the three and nine months ended September 30, 2018 : Three Months Ended Nine Months Ended Number of Shares Weighted Number of Shares Weighted Beginning balance 130,260 $ 26.73 168,453 $ 24.76 Granted 40,722 $ 44.56 40,722 $ 44.56 Vested (48,056 ) $ 16.04 (81,840 ) $ 16.40 Forfeited — $ — (4,409 ) $ 26.57 Ending balance 122,926 $ 36.82 122,926 $ 36.82 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following tables present the Corporation’s assets measured at fair value on a non-recurring basis as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 MSRs $ 6,586 $ — $ — $ 6,586 Impaired loans and leases 12,593 — — 12,593 OREO 529 — — 529 Total non-recurring fair value measurements $ 19,708 $ — $ — $ 19,708 The following tables present the Corporation’s assets measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 : As of September 30, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Investment securities available for sale: U.S. Treasury securities $ 100 $ 100 $ — $ — Obligations of U.S. government & agencies 190,453 — 190,453 — Obligations of state & political subdivisions 15,799 — 15,799 — Mortgage-backed securities 284,421 — 284,421 — Collateralized mortgage obligations 36,193 — 36,193 — Other investment securities 1,098 — 1,098 — Total investment securities available for sale $ 528,064 $ 100 $ 527,964 $ — Investment securities trading: Mutual funds $ 8,340 $ 8,340 $ — $ — Derivatives: Interest rate swaps $ 5,886 $ — $ 5,886 $ — Total recurring fair value measurements $ 542,290 $ 8,440 $ 533,850 $ — As of December 31, 2017 (dollars in thousands) Total Level 1 Level 2 Level 3 Investment securities available for sale: U.S. Treasury securities $ 200,088 $ 200,088 $ — $ — Obligations of U.S. government & agencies 151,044 — 151,044 — Obligations of state & political subdivisions 21,310 — 21,310 — Mortgage-backed securities 274,990 — 274,990 — Collateralized mortgage obligations 36,662 — 36,662 — Mutual funds 3,509 3,509 — — Other investment securities 1,599 — 1,599 — Total investment securities available for sale $ 689,202 $ 203,597 $ 485,605 $ — Investment securities trading: Mutual funds $ 4,610 $ 4,610 $ — $ — Derivatives: Interest rate swaps $ 1,898 $ — $ 1,898 $ — Total recurring fair value measurements $ 695,710 $ 208,207 $ 487,503 $ — As of December 31, 2017 (dollars in thousands) Total Level 1 Level 2 Level 3 MSRs $ 6,397 $ — $ — $ 6,397 Impaired loans and leases 13,954 — — 13,954 OREO 304 — — 304 Total non-recurring fair value measurements $ 20,655 $ — $ — $ 20,655 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value by Balance Sheet Grouping | The carrying amount and fair value of the Corporation’s financial instruments are as follows: As of September 30, 2018 As of December 31, 2017 (dollars in thousands) Fair Value Carrying Fair Value Carrying Fair Value Financial assets: Cash and cash equivalents Level 1 $ 45,354 $ 45,354 $ 60,024 $ 60,024 Investment securities - available for sale See Note 19 528,064 528,064 689,202 689,202 Investment securities - trading See Note 19 8,340 8,340 4,610 4,610 Investment securities – held to maturity Level 2 8,916 8,544 7,932 7,851 Loans held for sale Level 2 4,111 4,111 3,794 3,794 Net portfolio loans and leases Level 3 3,362,791 3,362,757 3,268,333 3,293,802 MSRs Level 3 5,328 6,586 5,861 6,397 Interest rate swaps Level 2 5,843 5,843 1,895 1,895 RPAs purchased Level 2 43 43 21 21 Other assets Level 3 44,439 44,439 46,799 46,799 Total financial assets $ 4,013,229 $ 4,014,081 $ 4,088,471 $ 4,114,395 Financial liabilities: Deposits Level 2 $ 3,357,226 $ 3,351,183 $ 3,373,798 $ 3,368,276 Short-term borrowings Level 2 226,498 226,498 237,865 237,865 Long-term FHLB advances Level 2 72,841 71,978 139,140 138,685 Subordinated notes Level 2 98,482 97,892 98,416 95,044 Junior subordinated debentures Level 2 21,538 23,564 21,416 19,366 Interest rate swaps Level 2 5,843 5,843 1,895 1,895 RPAs sold Level 2 1 1 3 3 Other liabilities Level 3 60,432 60,432 49,071 49,071 Total financial liabilities $ 3,842,861 $ 3,837,391 $ 3,921,604 $ 3,910,205 * See Note 19 in the Notes to Unaudited Consolidated Financial Statements above for a description of hierarchy levels. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables detail the Corporation’s segments for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (dollars in thousands) Banking Wealth Management Consolidated Banking Wealth Management Consolidated Net interest income $ 36,726 $ 3 $ 36,729 $ 29,437 $ 1 $ 29,438 Provision for loan and lease losses 664 — 664 1,333 — 1,333 Net interest income after loan loss provision 36,062 3 36,065 28,104 1 28,105 Noninterest income: Fees for wealth management services — 10,343 10,343 — 9,651 9,651 Insurance commissions — 1,754 1,754 — 1,373 1,373 Capital markets revenue 710 — 710 843 — 843 Service charges on deposit accounts 726 — 726 676 — 676 Loan servicing and other fees 559 — 559 548 — 548 Net gain on sale of loans 631 — 631 799 — 799 Net gain on sale of investment securities available for sale — — — 72 — 72 Net gain on sale of OREO 5 — 5 — — — Other operating income 3,498 48 3,546 1,581 41 1,622 Total noninterest income 6,129 12,145 18,274 4,519 11,065 15,584 Noninterest expenses: Salaries & wages 11,737 4,791 16,528 9,130 4,472 13,602 Employee benefits 2,394 962 3,356 1,587 973 2,560 Occupancy and bank premises 2,224 493 2,717 2,049 436 2,485 Amortization of intangible assets 386 505 891 197 480 677 Professional fees 889 108 997 681 58 739 Other operating expenses 7,770 1,333 9,103 6,970 1,151 8,121 Total noninterest expenses 25,400 8,192 33,592 20,614 7,570 28,184 Segment profit 16,791 3,956 20,747 12,009 3,496 15,505 Intersegment (revenues) expenses* (186 ) 186 — (112 ) 112 — Pre-tax segment profit after eliminations $ 16,605 $ 4,142 $ 20,747 $ 11,897 $ 3,608 $ 15,505 % of segment pre-tax profit after eliminations 80.0 % 20.0 % 100.0 % 76.7 % 23.3 % 100.0 % Segment assets (dollars in millions) $ 4,335.8 $ 52.6 $ 4,388.4 $ 3,424.8 $ 52.0 $ 3,476.8 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 (dollars in thousands) Banking Wealth Management Consolidated Banking Wealth Management Consolidated Net interest income $ 111,479 $ 5 $ 111,484 $ 84,804 $ 2 $ 84,806 Provision for loan and lease losses 4,831 — 4,831 1,541 — 1,541 Net interest income after loan loss provision 106,648 5 106,653 83,263 2 83,265 Noninterest income: Fees for wealth management services — 31,309 31,309 — 28,761 28,761 Insurance commissions — 5,349 5,349 — 3,079 3,079 Capital markets revenue 3,481 — 3,481 1,796 — 1,796 Service charges on deposit accounts 2,191 — 2,191 1,953 — 1,953 Loan servicing and other fees 1,720 — 1,720 1,570 — 1,570 Net gain on sale of loans 1,677 — 1,677 1,948 — 1,948 Net gain on sale of investment securities available for sale 7 — 7 73 — 73 Net gain (loss) gain on sale of OREO 292 — 292 (12 ) — (12 ) Other operating income 11,709 150 11,859 4,290 138 4,428 Total noninterest income 21,077 36,808 57,885 11,618 31,978 43,596 Noninterest expenses: Salaries & wages 34,077 14,673 48,750 27,044 12,588 39,632 Employee benefits 6,992 2,949 9,941 4,565 2,888 7,453 Occupancy and bank premises 7,035 1,429 8,464 6,025 1,233 7,258 Amortization of intangible assets 1,169 1,490 2,659 588 1,469 2,057 Professional fees 2,497 180 2,677 2,318 181 2,499 Other operating expenses 29,076 3,891 32,967 21,200 3,240 24,440 Total noninterest expenses 80,846 24,612 105,458 61,740 21,599 83,339 Segment profit 46,879 12,201 59,080 33,141 10,381 43,522 Intersegment (revenues) expenses* (485 ) 485 — (336 ) 336 — Pre-tax segment profit after eliminations $ 46,394 $ 12,686 $ 59,080 $ 32,805 $ 10,717 $ 43,522 % of segment pre-tax profit after eliminations 78.5 % 21.5 % 100.0 % 75.4 % 24.6 % 100.0 % Segment assets (dollars in millions) $ 4,335.8 $ 52.6 $ 4,388.4 $ 3,424.8 $ 52.0 $ 3,476.8 * Inter-segment revenues consist of rental payments, interest on deposits and management fees. Wealth Management Segment Information (dollars in millions) September 30, December 31, Assets under management, administration, supervision and brokerage $ 13,913.3 $ 12,968.7 |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2018trust | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of trusts acquired | 2 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) | May 01, 2018USD ($)payment | Dec. 15, 2017USD ($)shares | May 24, 2017USD ($)payment | Sep. 30, 2018USD ($) | Jun. 30, 2018payment | Mar. 31, 2018USD ($) |
Domenick | ||||||
Business Acquisition [Line Items] | ||||||
Consideration paid | $ 1,456,000 | |||||
Cash paid at closing | $ 750,000 | |||||
Number of contingent cash payments | payment | 3 | |||||
Maximum contingent payment per period | $ 250,000 | |||||
RBPI | ||||||
Business Acquisition [Line Items] | ||||||
Consideration paid | $ 138,740,000 | |||||
Shares issued (in shares) | shares | 3,101,316 | |||||
Cash in lieu of fractional shares | $ 7,000 | |||||
Cash-out of certain options | $ 112,000 | |||||
Warrants converted by acquirer | shares | 1,368,040 | |||||
Fair value of warrants assumed | $ 1,853,000 | |||||
Number of securities called by warrants | shares | 140,224 | |||||
Goodwill, expected tax deductible amount | $ 0 | |||||
Loans held for investment, increase in nonaccretable difference | $ 1,600,000 | $ 3,000,000 | ||||
Certain loans acquired in transfer accounted for as debt securities, accretable yield, period increase (decrease) | $ 325,000 | |||||
RBPI | Common Class A | ||||||
Business Acquisition [Line Items] | ||||||
Conversion ratio of shares in acquirer | 0.1025 | |||||
RBPI | Common Class B | ||||||
Business Acquisition [Line Items] | ||||||
Conversion ratio of shares in acquirer | 0.1179 | |||||
Hirshorn | ||||||
Business Acquisition [Line Items] | ||||||
Consideration paid | $ 7,460,000 | |||||
Cash paid at closing | $ 5,770,000 | |||||
Number of contingent cash payments | payment | 2 | |||||
Number of contingent cash payments made | payment | 1 | |||||
Contingent consideration, maximum amount of installment payment per period | $ 575,000 |
Business Combinations - Schedul
Business Combinations - Schedules of Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | May 01, 2018 | Dec. 15, 2017 | May 24, 2017 | Sep. 30, 2018 | Dec. 31, 2017 |
Liabilities assumed: | |||||
Goodwill | $ 183,864 | $ 179,889 | |||
Domenick | |||||
Consideration paid: | |||||
Cash paid at closing | $ 750 | ||||
Contingent payment liability (present value) | 706 | ||||
Value of consideration | 1,456 | ||||
Assets acquired: | |||||
Cash and due from banks | 370 | ||||
Premises and equipment | 1 | ||||
Other assets | 316 | ||||
Total assets | 1,466 | ||||
Liabilities assumed: | |||||
Accounts payable | 657 | ||||
Other liabilities | 30 | ||||
Total liabilities | 687 | ||||
Net assets acquired | 779 | ||||
Goodwill | 677 | ||||
Domenick | Customer Relationships | |||||
Assets acquired: | |||||
Intangible assets | $ 779 | ||||
RBPI | |||||
Consideration paid: | |||||
Common shares issued (3,101,316) | $ 136,768 | ||||
Cash in lieu of fractional shares | 7 | ||||
Cash-out of certain options | 112 | ||||
Fair value of warrants assumed | 1,853 | ||||
Value of consideration | $ 138,740 | ||||
Shares issued (in shares) | 3,101,316 | ||||
Assets acquired: | |||||
Cash and due from banks | $ 17,092 | ||||
Premises and equipment | 8,264 | ||||
Other assets | 13,996 | ||||
Investment securities available for sale | 121,587 | ||||
Loans | 566,228 | ||||
Deferred income taxes | 34,586 | ||||
Bank-owned life insurance | 16,550 | ||||
Total assets | 783,539 | ||||
Liabilities assumed: | |||||
Other liabilities | 31,381 | ||||
Deposits | 593,172 | ||||
FHLB and other long-term borrowings | 59,568 | ||||
Short-term borrowings | 15,000 | ||||
Junior subordinated debentures | 21,416 | ||||
Unfavorable lease liability | 322 | ||||
Total liabilities | 720,859 | ||||
Net assets acquired | 62,680 | ||||
Goodwill | 76,060 | $ 76,060 | $ 72,762 | ||
RBPI | Core Deposits | |||||
Assets acquired: | |||||
Intangible assets | 4,670 | ||||
RBPI | Off-Market Favorable Lease | |||||
Assets acquired: | |||||
Intangible assets | $ 566 | ||||
Hirshorn | |||||
Consideration paid: | |||||
Cash paid at closing | $ 5,770 | ||||
Contingent payment liability (present value) | 1,690 | ||||
Value of consideration | 7,460 | ||||
Assets acquired: | |||||
Cash and due from banks | 978 | ||||
Premises and equipment | 1,795 | ||||
Other assets | 27 | ||||
Accounts receivable | 192 | ||||
Total assets | 5,900 | ||||
Liabilities assumed: | |||||
Accounts payable | 800 | ||||
Other liabilities | 2 | ||||
Total liabilities | 802 | ||||
Net assets acquired | 5,098 | ||||
Goodwill | 2,362 | ||||
Hirshorn | Customer Relationships | |||||
Assets acquired: | |||||
Intangible assets | 2,672 | ||||
Hirshorn | Trade Names | |||||
Assets acquired: | |||||
Intangible assets | 195 | ||||
Hirshorn | Noncompete Agreements | |||||
Assets acquired: | |||||
Intangible assets | $ 41 |
Business Combinations - Provisi
Business Combinations - Provisional Estimates of Fair Value of Certain Assets Acquired (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Goodwill [Roll Forward] | |
Balance December 31, 2017 | $ 179,889 |
Balance September 30, 2018 | 183,864 |
RBPI | |
Goodwill [Roll Forward] | |
Balance December 31, 2017 | 72,762 |
Common shares issued (2,562) | $ 113 |
Common shares issued (in shares) | shares | 2,562 |
Loans | $ 4,145 |
Other assets | 491 |
Deferred income taxes | (1,451) |
Total Fair Value Adjustments | 3,185 |
Balance September 30, 2018 | $ 76,060 |
Business Combinations - Acquire
Business Combinations - Acquired Impaired Loans (Details) - RBPI $ in Thousands | Dec. 15, 2017USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually required principal and interest payments | $ 40,741 |
Contractual cash flows not expected to be collected (nonaccretable difference) | (17,637) |
Cash flows expected to be collected | 23,104 |
Interest component of expected cash flows (accretable yield) | (2,644) |
Fair value of loans acquired with deterioration of credit quality | $ 20,460 |
Business Combinations - Pro For
Business Combinations - Pro Forma Income Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Total interest income | $ 45,233 | $ 33,198 | $ 133,521 | $ 94,761 |
Total interest expense | 8,504 | 3,760 | 22,037 | 9,955 |
Net interest income | 36,729 | 29,438 | 111,484 | 84,806 |
Net interest income after provision for loan and lease losses | 36,065 | 28,105 | 106,653 | 83,265 |
Total noninterest income | 18,274 | 15,584 | 57,885 | 43,596 |
Total non-interest expense | 33,592 | 28,184 | 105,458 | 83,339 |
Income before income taxes | 20,747 | 15,505 | 59,080 | 43,522 |
Income tax expense | 4,066 | 4,766 | 12,419 | 14,306 |
Net income attributable to Bryn Mawr Bank Corporation | $ 16,682 | $ 10,739 | $ 46,656 | $ 29,216 |
Weighted-average basic shares outstanding (in shares) | 20,270,706 | 17,023,046 | 20,237,757 | 16,987,499 |
Dilutive shares | 167,670 | 230,936 | 206,318 | 254,728 |
Denominator for diluted earnings per share – adjusted weighted average shares outstanding | 20,438,376 | 17,253,982 | 20,444,075 | 17,242,227 |
Basic earnings per share (in dollars per share) | $ 0.82 | $ 0.63 | $ 2.31 | $ 1.72 |
Diluted earnings per share (in dollars per share) | $ 0.82 | $ 0.62 | $ 2.28 | $ 1.69 |
Pro Forma | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Total interest income | $ 43,412 | $ 126,976 | ||
Total interest expense | 5,480 | 15,013 | ||
Net interest income | 37,932 | 111,963 | ||
Provision for loan and lease losses | 1,492 | 2,054 | ||
Net interest income after provision for loan and lease losses | 36,440 | 109,909 | ||
Total noninterest income | 16,015 | 45,481 | ||
Total non-interest expense | 33,364 | 99,699 | ||
Income before income taxes | 19,091 | 55,691 | ||
Income tax expense | 5,843 | 18,306 | ||
Net income attributable to Bryn Mawr Bank Corporation | $ 13,248 | $ 37,385 | ||
Weighted-average basic shares outstanding (in shares) | 20,121,800 | 20,086,253 | ||
Dilutive shares | 261,935 | 284,294 | ||
Denominator for diluted earnings per share – adjusted weighted average shares outstanding | 20,383,735 | 20,370,547 | ||
Basic earnings per share (in dollars per share) | $ 0.66 | $ 1.86 | ||
Diluted earnings per share (in dollars per share) | $ 0.65 | $ 1.84 |
Business Combinations - Due Dil
Business Combinations - Due Diligence, Merger-related and Merger Integration Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Combinations [Abstract] | ||||
Advertising | $ 0 | $ 89 | $ 61 | $ 108 |
Employee Benefits | 0 | 5 | 271 | 10 |
Occupancy and bank premises | 0 | 0 | 2,145 | 0 |
Furniture, fixtures, and equipment | 0 | 31 | 365 | 37 |
Information technology | 167 | 41 | 421 | 300 |
Professional fees | 193 | 632 | 1,450 | 1,570 |
Salaries and wages | 29 | 28 | 852 | 428 |
Other | 0 | 24 | 2,196 | 144 |
Total due diligence, merger-related and merger integration expenses | $ 389 | $ 850 | $ 7,761 | $ 2,597 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 543,240 | $ 692,824 |
Gross Unrealized Gains | 362 | 1,316 |
Gross Unrealized Losses | (15,538) | (4,938) |
Fair Value | 528,064 | 689,202 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 100 | 200,077 |
Gross Unrealized Gains | 0 | 11 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 100 | 200,088 |
Obligations of the U.S. government and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 196,334 | 153,028 |
Gross Unrealized Gains | 17 | 75 |
Gross Unrealized Losses | (5,898) | (2,059) |
Fair Value | 190,453 | 151,044 |
Obligations of state and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,890 | 21,352 |
Gross Unrealized Gains | 1 | 11 |
Gross Unrealized Losses | (92) | (53) |
Fair Value | 15,799 | 21,310 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 292,005 | 275,958 |
Gross Unrealized Gains | 344 | 887 |
Gross Unrealized Losses | (7,928) | (1,855) |
Fair Value | 284,421 | 274,990 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 37,811 | 37,596 |
Gross Unrealized Gains | 0 | 14 |
Gross Unrealized Losses | (1,618) | (948) |
Fair Value | 36,193 | 36,662 |
Other investment securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,100 | 4,813 |
Gross Unrealized Gains | 0 | 318 |
Gross Unrealized Losses | (2) | (23) |
Fair Value | $ 1,098 | $ 5,108 |
Investment Securities - Securit
Investment Securities - Securities Available for Sale in an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Securities available for sale, less than 12 months, fair value | $ 240,854 | $ 310,154 |
Securities available for sale, 12 months or longer, fair value | 265,367 | 87,908 |
Securities available for sale, fair value | 506,221 | 398,062 |
Unrealized Losses | ||
Securities available for sale, less than 12 months, unrealized losses | (4,779) | (2,686) |
Securities available for sale, 12 months or longer, unrealized losses | (10,759) | (2,252) |
Securities available for sale, unrealized losses | (15,538) | (4,938) |
Obligations of the U.S. government and agencies | ||
Fair Value | ||
Securities available for sale, less than 12 months, fair value | 82,187 | 114,120 |
Securities available for sale, 12 months or longer, fair value | 107,601 | 26,726 |
Securities available for sale, fair value | 189,788 | 140,846 |
Unrealized Losses | ||
Securities available for sale, less than 12 months, unrealized losses | (1,634) | (1,294) |
Securities available for sale, 12 months or longer, unrealized losses | (4,264) | (765) |
Securities available for sale, unrealized losses | (5,898) | (2,059) |
Obligations of state and political subdivisions | ||
Fair Value | ||
Securities available for sale, less than 12 months, fair value | 11,009 | 11,144 |
Securities available for sale, 12 months or longer, fair value | 2,303 | 2,709 |
Securities available for sale, fair value | 13,312 | 13,853 |
Unrealized Losses | ||
Securities available for sale, less than 12 months, unrealized losses | (21) | (29) |
Securities available for sale, 12 months or longer, unrealized losses | (71) | (24) |
Securities available for sale, unrealized losses | (92) | (53) |
Mortgage-backed securities | ||
Fair Value | ||
Securities available for sale, less than 12 months, fair value | 136,170 | 177,919 |
Securities available for sale, 12 months or longer, fair value | 130,269 | 31,787 |
Securities available for sale, fair value | 266,439 | 209,706 |
Unrealized Losses | ||
Securities available for sale, less than 12 months, unrealized losses | (3,037) | (1,293) |
Securities available for sale, 12 months or longer, unrealized losses | (4,891) | (562) |
Securities available for sale, unrealized losses | (7,928) | (1,855) |
Collateralized mortgage obligations | ||
Fair Value | ||
Securities available for sale, less than 12 months, fair value | 10,939 | 5,166 |
Securities available for sale, 12 months or longer, fair value | 24,945 | 26,686 |
Securities available for sale, fair value | 35,884 | 31,852 |
Unrealized Losses | ||
Securities available for sale, less than 12 months, unrealized losses | (86) | (47) |
Securities available for sale, 12 months or longer, unrealized losses | (1,532) | (901) |
Securities available for sale, unrealized losses | (1,618) | (948) |
Other investment securities | ||
Fair Value | ||
Securities available for sale, less than 12 months, fair value | 549 | 1,805 |
Securities available for sale, 12 months or longer, fair value | 249 | 0 |
Securities available for sale, fair value | 798 | 1,805 |
Unrealized Losses | ||
Securities available for sale, less than 12 months, unrealized losses | (1) | (23) |
Securities available for sale, 12 months or longer, unrealized losses | (1) | 0 |
Securities available for sale, unrealized losses | $ (2) | $ (23) |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Securities pledged as collateral | $ 121,100 | $ 126,200 | |
Investment securities held in trading accounts | $ 8,340 | $ 4,610 | |
Available for sale securities reclassified to trading | $ 3,200 |
Investment Securities - Secur_2
Investment Securities - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Available for sale securities, due in one year or less, amortized cost | $ 12,265 | $ 211,019 |
Available for sale securities, due after one year through five years, amortized cost | 176,700 | 126,452 |
Available for sale securities, due after five years through ten years, amortized cost | 24,459 | 23,147 |
Available for sale securities, due after ten years, amortized cost | 0 | 15,439 |
Available for sale securities, subtotal, amortized cost | 213,424 | 376,057 |
Amortized Cost | 543,240 | 692,824 |
Fair Value | ||
Available for sale securities, due in one year or less, fair value | 12,237 | 211,019 |
Available for sale securities, due after one year through five years, fair value | 171,374 | 124,797 |
Available for sale securities, due after five years through ten years, fair value | 23,839 | 22,804 |
Available for sale securities, due after ten years, fair value | 0 | 15,421 |
Available for sale securities, subtotal, fair value | 207,450 | 374,041 |
Fair Value | 528,064 | 689,202 |
Mortgage-backed securities | ||
Amortized Cost | ||
Available for sale securities, no stated maturity, amortized cost | 329,816 | 313,554 |
Amortized Cost | 292,005 | 275,958 |
Fair Value | ||
Available for sale securities, no stated maturity, fair value | 320,614 | 311,652 |
Fair Value | 284,421 | 274,990 |
Mutual funds with no stated maturity | ||
Amortized Cost | ||
Available for sale securities, no stated maturity, amortized cost | 0 | 3,213 |
Fair Value | ||
Available for sale securities, no stated maturity, fair value | $ 0 | $ 3,509 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value of Securities Held to Maturity (Details) - Mortgage-backed securities - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity securities, amortized cost | $ 8,916 | $ 7,932 |
Held to maturity securities, gross unrealized gains | 0 | 5 |
Held to maturity securities, gross unrealized losses | (372) | (86) |
Held to maturity securities, fair value | $ 8,544 | $ 7,851 |
Investment Securities - Secur_3
Investment Securities - Securities Held to Maturity in an Unrealized Loss Position (Details) - Mortgage-backed securities - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value | ||
Held to maturity securities, less than 12 months, fair value | $ 3,882 | $ 2,756 |
Held to maturity securities, 12 months or longer, fair value | 4,662 | 3,866 |
Held to maturity securities, fair value | 8,544 | 6,622 |
Unrealized Losses | ||
Held to maturity securities, less than 12 months, unrealized losses | (132) | (25) |
Held to maturity securities, 12 months or longer, unrealized losses | (240) | (61) |
Held to maturity securities, unrealized losses | $ (372) | $ (86) |
Investment Securities - Amort_3
Investment Securities - Amortized Cost and Fair Value of Held to Maturity Securities (Details) - Mortgage-backed securities - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 8,916 | $ 7,932 |
Fair Value | $ 8,544 | $ 7,851 |
Loans and Leases - Narrative (D
Loans and Leases - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)contract | |
Home equity loans and lines | |
Loans and Leases Receivable Disclosure [Line Items] | |
Home equity loan, number of contracts | contract | 1 |
Home equity line of credit principal balance | $ | $ 25 |
Leases | |
Loans and Leases Receivable Disclosure [Line Items] | |
Home equity loan, number of contracts | contract | 1 |
Home equity line of credit principal balance | $ | $ 50 |
Loans and Leases - Portfolio Lo
Loans and Leases - Portfolio Loans and Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale | $ 4,111 | $ 3,794 |
Portfolio loans and leases | 3,381,475 | 3,285,858 |
Total loans and leases | 3,385,586 | 3,289,652 |
Loans with fixed rates | 1,542,423 | 1,573,052 |
Loans with adjustable or floating rates | 1,843,163 | 1,716,600 |
Total loans and leases | 3,385,586 | 3,289,652 |
Net deferred loan origination fees included in the above loan table | (1,220) | (887) |
Commercial mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,618,493 | 1,523,377 |
Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 207,806 | 218,275 |
Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 467,402 | 458,886 |
Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 178,493 | 212,454 |
Real estate loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,472,194 | 2,412,992 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 722,999 | 719,312 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 47,809 | 38,153 |
Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 138,473 | 115,401 |
Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale | 4,111 | 3,794 |
Portfolio loans and leases | 2,752,160 | 2,487,296 |
Total loans and leases | 2,756,271 | 2,491,090 |
Loans with fixed rates | 1,167,097 | 1,034,542 |
Loans with adjustable or floating rates | 1,589,174 | 1,456,548 |
Total loans and leases | 2,756,271 | 2,491,090 |
Net deferred loan origination fees included in the above loan table | (1,220) | (887) |
Originated | Commercial mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,259,397 | 1,122,327 |
Originated | Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 180,068 | 183,283 |
Originated | Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 381,037 | 360,935 |
Originated | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 158,691 | 128,266 |
Originated | Real estate loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,979,193 | 1,794,811 |
Originated | Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 618,200 | 589,304 |
Originated | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 44,833 | 35,146 |
Originated | Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 109,934 | 68,035 |
Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans held for sale | 0 | 0 |
Portfolio loans and leases | 629,315 | 798,562 |
Total loans and leases | 629,315 | 798,562 |
Loans with fixed rates | 375,326 | 538,510 |
Loans with adjustable or floating rates | 253,989 | 260,052 |
Total loans and leases | 629,315 | 798,562 |
Net deferred loan origination fees included in the above loan table | 0 | 0 |
Acquired | Commercial mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 359,096 | 401,050 |
Acquired | Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 27,738 | 34,992 |
Acquired | Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 86,365 | 97,951 |
Acquired | Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 19,802 | 84,188 |
Acquired | Real estate loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 493,001 | 618,181 |
Acquired | Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 104,799 | 130,008 |
Acquired | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,976 | 3,007 |
Acquired | Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | $ 28,539 | $ 47,366 |
Loans and Leases - Net Investme
Loans and Leases - Net Investments in Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Minimum lease payments receivable | $ 154,635 | $ 130,811 |
Unearned lease income | (22,010) | (19,861) |
Initial direct costs and deferred fees | 5,848 | 4,451 |
Total Leases | 138,473 | 115,401 |
Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Minimum lease payments receivable | 122,596 | 75,592 |
Unearned lease income | (17,717) | (10,338) |
Initial direct costs and deferred fees | 5,055 | 2,781 |
Total Leases | 109,934 | 68,035 |
Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Minimum lease payments receivable | 32,039 | 55,219 |
Unearned lease income | (4,293) | (9,523) |
Initial direct costs and deferred fees | 793 | 1,670 |
Total Leases | $ 28,539 | $ 47,366 |
Loans and Leases - Non-performi
Loans and Leases - Non-performing Loans and Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | $ 8,990 | $ 8,579 |
Purchased credit impaired became non-performing subsequent to acquisition | 393 | 167 |
Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 5,397 | 3,745 |
Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 3,593 | 4,834 |
Commercial mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 735 | 872 |
Commercial mortgage | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 0 | 90 |
Commercial mortgage | Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 735 | 782 |
Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 1,933 | 1,481 |
Home equity loans and lines | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 1,692 | 1,221 |
Home equity loans and lines | Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 241 | 260 |
Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 2,770 | 4,417 |
Residential mortgage | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 1,968 | 1,505 |
Residential mortgage | Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 802 | 2,912 |
Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 291 | 0 |
Construction | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 291 | 0 |
Construction | Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 0 | 0 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 1,782 | 1,706 |
Commercial and industrial | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 925 | 826 |
Commercial and industrial | Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 857 | 880 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 117 | 0 |
Consumer | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 42 | 0 |
Consumer | Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 75 | 0 |
Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 1,362 | 103 |
Leases | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | 479 | 103 |
Leases | Acquired | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Non-accrual loans and leases | $ 883 | $ 0 |
Loans and Leases - Purchased Cr
Loans and Leases - Purchased Credit-Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Outstanding principal balance | $ 38,062 | $ 46,543 |
Carrying amount | 27,519 | 30,849 |
Purchased credit impaired loans without estimate of expected cash flows recorded investment | 393 | 173 |
Purchased credit impaired became non-performing subsequent to acquisition | $ 393 | $ 167 |
Loans and Leases - Accretable D
Loans and Leases - Accretable Discount on Purchased Credit-impaired Loans (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance | $ 4,083 |
Accretion | (1,819) |
Reclassifications from nonaccretable difference | 609 |
Additions/adjustments | 329 |
Balance | $ 3,202 |
Loans and Leases - Past Due Loa
Loans and Leases - Past Due Loans and Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | $ 9,119 | $ 7,959 |
Loans and leases, current | 3,363,366 | 3,269,320 |
Loans and leases, accruing | 3,372,485 | 3,277,279 |
Non-accrual loans and leases | 8,990 | 8,579 |
Total portfolio loans and leases | 3,381,475 | 3,285,858 |
Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 5,186 | 3,081 |
Loans and leases, current | 2,741,577 | 2,480,470 |
Loans and leases, accruing | 2,746,763 | 2,483,551 |
Non-accrual loans and leases | 5,397 | 3,745 |
Total portfolio loans and leases | 2,752,160 | 2,487,296 |
Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 3,933 | 4,878 |
Loans and leases, current | 621,789 | 788,850 |
Loans and leases, accruing | 625,722 | 793,728 |
Non-accrual loans and leases | 3,593 | 4,834 |
Total portfolio loans and leases | 629,315 | 798,562 |
Administratively Delinquent | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, current | 720 | 4,100 |
Commercial mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,468 | 3,794 |
Loans and leases, current | 1,615,290 | 1,518,711 |
Loans and leases, accruing | 1,617,758 | 1,522,505 |
Non-accrual loans and leases | 735 | 872 |
Total portfolio loans and leases | 1,618,493 | 1,523,377 |
Commercial mortgage | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 76 | 1,336 |
Loans and leases, current | 1,259,321 | 1,120,901 |
Loans and leases, accruing | 1,259,397 | 1,122,237 |
Non-accrual loans and leases | 0 | 90 |
Total portfolio loans and leases | 1,259,397 | 1,122,327 |
Commercial mortgage | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,392 | 2,458 |
Loans and leases, current | 355,969 | 397,810 |
Loans and leases, accruing | 358,361 | 400,268 |
Non-accrual loans and leases | 735 | 782 |
Total portfolio loans and leases | 359,096 | 401,050 |
Home equity loans and lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 324 | 348 |
Loans and leases, current | 205,549 | 216,446 |
Loans and leases, accruing | 205,873 | 216,794 |
Non-accrual loans and leases | 1,933 | 1,481 |
Total portfolio loans and leases | 207,806 | 218,275 |
Home equity loans and lines | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 250 | 26 |
Loans and leases, current | 178,126 | 182,036 |
Loans and leases, accruing | 178,376 | 182,062 |
Non-accrual loans and leases | 1,692 | 1,221 |
Total portfolio loans and leases | 180,068 | 183,283 |
Home equity loans and lines | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 74 | 322 |
Loans and leases, current | 27,423 | 34,410 |
Loans and leases, accruing | 27,497 | 34,732 |
Non-accrual loans and leases | 241 | 260 |
Total portfolio loans and leases | 27,738 | 34,992 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,397 | 1,465 |
Loans and leases, current | 462,235 | 453,004 |
Loans and leases, accruing | 464,632 | 454,469 |
Non-accrual loans and leases | 2,770 | 4,417 |
Total portfolio loans and leases | 467,402 | 458,886 |
Residential mortgage | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,475 | 721 |
Loans and leases, current | 377,594 | 358,709 |
Loans and leases, accruing | 379,069 | 359,430 |
Non-accrual loans and leases | 1,968 | 1,505 |
Total portfolio loans and leases | 381,037 | 360,935 |
Residential mortgage | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 922 | 744 |
Loans and leases, current | 84,641 | 94,295 |
Loans and leases, accruing | 85,563 | 95,039 |
Non-accrual loans and leases | 802 | 2,912 |
Total portfolio loans and leases | 86,365 | 97,951 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 488 | 0 |
Loans and leases, current | 177,714 | 212,454 |
Loans and leases, accruing | 178,202 | 212,454 |
Non-accrual loans and leases | 291 | 0 |
Total portfolio loans and leases | 178,493 | 212,454 |
Construction | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 488 | 0 |
Loans and leases, current | 157,912 | 128,266 |
Loans and leases, accruing | 158,400 | 128,266 |
Non-accrual loans and leases | 291 | 0 |
Total portfolio loans and leases | 158,691 | 128,266 |
Construction | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Loans and leases, current | 19,802 | 84,188 |
Loans and leases, accruing | 19,802 | 84,188 |
Non-accrual loans and leases | 0 | 0 |
Total portfolio loans and leases | 19,802 | 84,188 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,370 | 944 |
Loans and leases, current | 718,847 | 716,662 |
Loans and leases, accruing | 721,217 | 717,606 |
Non-accrual loans and leases | 1,782 | 1,706 |
Total portfolio loans and leases | 722,999 | 719,312 |
Commercial and industrial | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,306 | 675 |
Loans and leases, current | 614,969 | 587,803 |
Loans and leases, accruing | 617,275 | 588,478 |
Non-accrual loans and leases | 925 | 826 |
Total portfolio loans and leases | 618,200 | 589,304 |
Commercial and industrial | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 64 | 269 |
Loans and leases, current | 103,878 | 128,859 |
Loans and leases, accruing | 103,942 | 129,128 |
Non-accrual loans and leases | 857 | 880 |
Total portfolio loans and leases | 104,799 | 130,008 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 69 | 1,106 |
Loans and leases, current | 47,623 | 37,047 |
Loans and leases, accruing | 47,692 | 38,153 |
Non-accrual loans and leases | 117 | 0 |
Total portfolio loans and leases | 47,809 | 38,153 |
Consumer | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 69 | 21 |
Loans and leases, current | 44,722 | 35,125 |
Loans and leases, accruing | 44,791 | 35,146 |
Non-accrual loans and leases | 42 | 0 |
Total portfolio loans and leases | 44,833 | 35,146 |
Consumer | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 1,085 |
Loans and leases, current | 2,901 | 1,922 |
Loans and leases, accruing | 2,901 | 3,007 |
Non-accrual loans and leases | 75 | 0 |
Total portfolio loans and leases | 2,976 | 3,007 |
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,003 | 302 |
Loans and leases, current | 136,108 | 114,996 |
Loans and leases, accruing | 137,111 | 115,298 |
Non-accrual loans and leases | 1,362 | 103 |
Total portfolio loans and leases | 138,473 | 115,401 |
Leases | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 522 | 302 |
Loans and leases, current | 108,933 | 67,630 |
Loans and leases, accruing | 109,455 | 67,932 |
Non-accrual loans and leases | 479 | 103 |
Total portfolio loans and leases | 109,934 | 68,035 |
Leases | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 481 | 0 |
Loans and leases, current | 27,175 | 47,366 |
Loans and leases, accruing | 27,656 | 47,366 |
Non-accrual loans and leases | 883 | 0 |
Total portfolio loans and leases | 28,539 | 47,366 |
30 – 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 4,942 | 4,979 |
30 – 59 Days Past Due | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 3,717 | 2,587 |
30 – 59 Days Past Due | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,225 | 2,392 |
30 – 59 Days Past Due | Commercial mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 1,366 |
30 – 59 Days Past Due | Commercial mortgage | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 1,255 |
30 – 59 Days Past Due | Commercial mortgage | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 111 |
30 – 59 Days Past Due | Home equity loans and lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 324 | 338 |
30 – 59 Days Past Due | Home equity loans and lines | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 250 | 26 |
30 – 59 Days Past Due | Home equity loans and lines | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 74 | 312 |
30 – 59 Days Past Due | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,218 | 1,386 |
30 – 59 Days Past Due | Residential mortgage | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,475 | 721 |
30 – 59 Days Past Due | Residential mortgage | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 743 | 665 |
30 – 59 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 488 | 0 |
30 – 59 Days Past Due | Construction | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 488 | 0 |
30 – 59 Days Past Due | Construction | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
30 – 59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,115 | 658 |
30 – 59 Days Past Due | Commercial and industrial | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,051 | 439 |
30 – 59 Days Past Due | Commercial and industrial | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 64 | 219 |
30 – 59 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 46 | 1,106 |
30 – 59 Days Past Due | Consumer | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 46 | 21 |
30 – 59 Days Past Due | Consumer | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 1,085 |
30 – 59 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 751 | 125 |
30 – 59 Days Past Due | Leases | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 407 | 125 |
30 – 59 Days Past Due | Leases | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 344 | 0 |
60 – 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 4,177 | 2,980 |
60 – 89 Days Past Due | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,469 | 494 |
60 – 89 Days Past Due | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,708 | 2,486 |
60 – 89 Days Past Due | Commercial mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,468 | 2,428 |
60 – 89 Days Past Due | Commercial mortgage | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 76 | 81 |
60 – 89 Days Past Due | Commercial mortgage | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 2,392 | 2,347 |
60 – 89 Days Past Due | Home equity loans and lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 10 |
60 – 89 Days Past Due | Home equity loans and lines | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
60 – 89 Days Past Due | Home equity loans and lines | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 10 |
60 – 89 Days Past Due | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 179 | 79 |
60 – 89 Days Past Due | Residential mortgage | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
60 – 89 Days Past Due | Residential mortgage | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 179 | 79 |
60 – 89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
60 – 89 Days Past Due | Construction | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
60 – 89 Days Past Due | Construction | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
60 – 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,255 | 286 |
60 – 89 Days Past Due | Commercial and industrial | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 1,255 | 236 |
60 – 89 Days Past Due | Commercial and industrial | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 50 |
60 – 89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 23 | 0 |
60 – 89 Days Past Due | Consumer | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 23 | 0 |
60 – 89 Days Past Due | Consumer | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
60 – 89 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 252 | 177 |
60 – 89 Days Past Due | Leases | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 115 | 177 |
60 – 89 Days Past Due | Leases | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 137 | 0 |
Over 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Commercial mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Commercial mortgage | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Commercial mortgage | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Home equity loans and lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Home equity loans and lines | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Home equity loans and lines | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Residential mortgage | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Residential mortgage | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Construction | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Construction | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Commercial and industrial | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Commercial and industrial | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Consumer | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Consumer | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Leases | Originated | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Over 89 Days Past Due | Leases | Acquired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, past due | 0 | 0 |
Originated Loans | Administratively Delinquent | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, current | 720 | 4,000 |
Acquired Loans | Administratively Delinquent | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases, current | $ 0 | $ 102 |
Loans and Leases - Allowance fo
Loans and Leases - Allowance for Loan and Leases Losses Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | $ 19,398 | $ 16,399 | $ 17,525 | $ 17,486 |
Charge-offs | (1,560) | (906) | (3,991) | (2,414) |
Recoveries | 182 | 178 | 319 | 391 |
Provision for loan and lease losses | 664 | 1,333 | 4,831 | 1,541 |
Balance | 18,684 | 17,004 | 18,684 | 17,004 |
Commercial mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | 8,033 | 6,608 | 7,550 | 6,227 |
Charge-offs | (58) | 0 | (74) | 0 |
Recoveries | 2 | 3 | 8 | 9 |
Provision for loan and lease losses | (433) | 721 | 60 | 1,096 |
Balance | 7,544 | 7,332 | 7,544 | 7,332 |
Home equity loans and lines | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | 933 | 1,214 | 1,086 | 1,255 |
Charge-offs | 0 | (69) | (225) | (676) |
Recoveries | 0 | 0 | 1 | 0 |
Provision for loan and lease losses | (41) | (53) | 30 | 513 |
Balance | 892 | 1,092 | 892 | 1,092 |
Residential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | 1,933 | 1,776 | 1,926 | 1,917 |
Charge-offs | (42) | (88) | (42) | (158) |
Recoveries | 54 | 85 | 55 | 85 |
Provision for loan and lease losses | (127) | 48 | (121) | (23) |
Balance | 1,818 | 1,821 | 1,818 | 1,821 |
Construction | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | 1,158 | 1,111 | 937 | 2,233 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 1 | 1 | 3 |
Provision for loan and lease losses | 83 | (182) | 303 | (1,306) |
Balance | 1,241 | 930 | 1,241 | 930 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | 5,672 | 4,813 | 5,038 | 5,142 |
Charge-offs | (319) | (301) | (1,069) | (560) |
Recoveries | 16 | 2 | 17 | 18 |
Provision for loan and lease losses | (64) | 366 | 1,319 | 280 |
Balance | 5,305 | 4,880 | 5,305 | 4,880 |
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | 289 | 177 | 246 | 153 |
Charge-offs | (73) | (37) | (165) | (96) |
Recoveries | 2 | 1 | 5 | 5 |
Provision for loan and lease losses | 100 | 69 | 232 | 148 |
Balance | 318 | 210 | 318 | 210 |
Leases | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | 1,380 | 700 | 742 | 559 |
Charge-offs | (1,068) | (411) | (2,416) | (924) |
Recoveries | 108 | 86 | 232 | 271 |
Provision for loan and lease losses | 1,146 | 364 | 3,008 | 833 |
Balance | 1,566 | 739 | 1,566 | 739 |
Unallocated | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision for loan and lease losses | 0 | 0 | 0 | 0 |
Balance | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Leases - Allowance _2
Loans and Leases - Allowance for Loan and Lease Losses by Method of Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | $ 278 | $ 258 | ||||
Collectively evaluated for impairment | 18,406 | 17,267 | ||||
Allowance on loans and leases | 18,684 | $ 19,398 | 17,525 | $ 17,004 | $ 16,399 | $ 17,486 |
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 11,470 | 13,940 | ||||
Collectively evaluated for impairment | 3,342,486 | 3,241,069 | ||||
Portfolio loans and leases | 3,381,475 | 3,285,858 | ||||
Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | 0 | 0 | ||||
Carrying value of loans and leases: | ||||||
Portfolio loans and leases | 27,519 | 30,849 | ||||
Originated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 206 | 208 | ||||
Collectively evaluated for impairment | 18,406 | 17,267 | ||||
Allowance on loans and leases | 18,612 | 17,475 | ||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 8,282 | 8,878 | ||||
Collectively evaluated for impairment | 2,743,878 | 2,478,418 | ||||
Portfolio loans and leases | 2,752,160 | 2,487,296 | ||||
Acquired | ||||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 3,188 | 5,062 | ||||
Collectively evaluated for impairment | 598,608 | 762,651 | ||||
Portfolio loans and leases | 629,315 | 798,562 | ||||
Financial Asset Acquired With and Without Credit Deterioration | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 72 | 50 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 72 | 50 | ||||
Commercial mortgage | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 7,544 | 7,550 | ||||
Allowance on loans and leases | 7,544 | 8,033 | 7,550 | 7,332 | 6,608 | 6,227 |
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 736 | 2,128 | ||||
Collectively evaluated for impairment | 1,609,375 | 1,503,825 | ||||
Portfolio loans and leases | 1,618,493 | 1,523,377 | ||||
Commercial mortgage | Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | 0 | 0 | ||||
Carrying value of loans and leases: | ||||||
Portfolio loans and leases | 8,382 | 17,424 | ||||
Commercial mortgage | Originated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 7,544 | 7,550 | ||||
Allowance on loans and leases | 7,544 | 7,550 | ||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 0 | 1,345 | ||||
Collectively evaluated for impairment | 1,259,397 | 1,120,982 | ||||
Portfolio loans and leases | 1,259,397 | 1,122,327 | ||||
Commercial mortgage | Acquired | ||||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 736 | 783 | ||||
Collectively evaluated for impairment | 349,978 | 382,843 | ||||
Portfolio loans and leases | 359,096 | 401,050 | ||||
Commercial mortgage | Financial Asset Acquired With and Without Credit Deterioration | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 0 | 0 | ||||
Home equity loans and lines | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 19 | 19 | ||||
Collectively evaluated for impairment | 873 | 1,067 | ||||
Allowance on loans and leases | 892 | 933 | 1,086 | 1,092 | 1,214 | 1,255 |
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 2,602 | 2,162 | ||||
Collectively evaluated for impairment | 204,694 | 215,604 | ||||
Portfolio loans and leases | 207,806 | 218,275 | ||||
Home equity loans and lines | Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | 0 | 0 | ||||
Carrying value of loans and leases: | ||||||
Portfolio loans and leases | 510 | 509 | ||||
Home equity loans and lines | Originated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 19 | 19 | ||||
Collectively evaluated for impairment | 873 | 1,067 | ||||
Allowance on loans and leases | 892 | 1,086 | ||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 2,361 | 1,902 | ||||
Collectively evaluated for impairment | 177,707 | 181,381 | ||||
Portfolio loans and leases | 180,068 | 183,283 | ||||
Home equity loans and lines | Acquired | ||||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 241 | 260 | ||||
Collectively evaluated for impairment | 26,987 | 34,223 | ||||
Portfolio loans and leases | 27,738 | 34,992 | ||||
Home equity loans and lines | Financial Asset Acquired With and Without Credit Deterioration | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 0 | 0 | ||||
Residential mortgage | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 228 | 230 | ||||
Collectively evaluated for impairment | 1,590 | 1,696 | ||||
Allowance on loans and leases | 1,818 | 1,933 | 1,926 | 1,821 | 1,776 | 1,917 |
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 5,940 | 7,726 | ||||
Collectively evaluated for impairment | 461,462 | 451,160 | ||||
Portfolio loans and leases | 467,402 | 458,886 | ||||
Residential mortgage | Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | 0 | 0 | ||||
Carrying value of loans and leases: | ||||||
Portfolio loans and leases | 0 | 0 | ||||
Residential mortgage | Originated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 179 | 180 | ||||
Collectively evaluated for impairment | 1,590 | 1,696 | ||||
Allowance on loans and leases | 1,769 | 1,876 | ||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 4,268 | 4,418 | ||||
Collectively evaluated for impairment | 376,769 | 356,517 | ||||
Portfolio loans and leases | 381,037 | 360,935 | ||||
Residential mortgage | Acquired | ||||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 1,672 | 3,308 | ||||
Collectively evaluated for impairment | 84,693 | 94,643 | ||||
Portfolio loans and leases | 86,365 | 97,951 | ||||
Residential mortgage | Financial Asset Acquired With and Without Credit Deterioration | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 49 | 50 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 49 | 50 | ||||
Construction | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,241 | 937 | ||||
Allowance on loans and leases | 1,241 | 1,158 | 937 | 930 | 1,111 | 2,233 |
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 291 | 0 | ||||
Collectively evaluated for impairment | 175,802 | 204,088 | ||||
Portfolio loans and leases | 178,493 | 212,454 | ||||
Construction | Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | 0 | 0 | ||||
Carrying value of loans and leases: | ||||||
Portfolio loans and leases | 2,400 | 8,366 | ||||
Construction | Originated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,241 | 937 | ||||
Allowance on loans and leases | 1,241 | 937 | ||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 291 | 0 | ||||
Collectively evaluated for impairment | 158,400 | 128,266 | ||||
Portfolio loans and leases | 158,691 | 128,266 | ||||
Construction | Acquired | ||||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 17,402 | 75,822 | ||||
Portfolio loans and leases | 19,802 | 84,188 | ||||
Construction | Financial Asset Acquired With and Without Credit Deterioration | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 0 | 0 | ||||
Commercial and industrial | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 11 | 5 | ||||
Collectively evaluated for impairment | 5,294 | 5,033 | ||||
Allowance on loans and leases | 5,305 | 5,672 | 5,038 | 4,880 | 4,813 | 5,142 |
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 1,757 | 1,897 | ||||
Collectively evaluated for impairment | 705,015 | 712,865 | ||||
Portfolio loans and leases | 722,999 | 719,312 | ||||
Commercial and industrial | Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | 0 | 0 | ||||
Carrying value of loans and leases: | ||||||
Portfolio loans and leases | 16,227 | 4,550 | ||||
Commercial and industrial | Originated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 4 | 5 | ||||
Collectively evaluated for impairment | 5,294 | 5,033 | ||||
Allowance on loans and leases | 5,298 | 5,038 | ||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 1,294 | 1,186 | ||||
Collectively evaluated for impairment | 616,906 | 588,118 | ||||
Portfolio loans and leases | 618,200 | 589,304 | ||||
Commercial and industrial | Acquired | ||||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 463 | 711 | ||||
Collectively evaluated for impairment | 88,109 | 124,747 | ||||
Portfolio loans and leases | 104,799 | 130,008 | ||||
Commercial and industrial | Financial Asset Acquired With and Without Credit Deterioration | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 7 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 7 | 0 | ||||
Consumer | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 20 | 4 | ||||
Collectively evaluated for impairment | 298 | 242 | ||||
Allowance on loans and leases | 318 | 289 | 246 | 210 | 177 | 153 |
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 144 | 27 | ||||
Collectively evaluated for impairment | 47,665 | 38,126 | ||||
Portfolio loans and leases | 47,809 | 38,153 | ||||
Consumer | Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | 0 | 0 | ||||
Carrying value of loans and leases: | ||||||
Portfolio loans and leases | 0 | 0 | ||||
Consumer | Originated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 4 | 4 | ||||
Collectively evaluated for impairment | 298 | 242 | ||||
Allowance on loans and leases | 302 | 246 | ||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 68 | 27 | ||||
Collectively evaluated for impairment | 44,765 | 35,119 | ||||
Portfolio loans and leases | 44,833 | 35,146 | ||||
Consumer | Acquired | ||||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 76 | 0 | ||||
Collectively evaluated for impairment | 2,900 | 3,007 | ||||
Portfolio loans and leases | 2,976 | 3,007 | ||||
Consumer | Financial Asset Acquired With and Without Credit Deterioration | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 16 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 16 | 0 | ||||
Leases | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,566 | 742 | ||||
Allowance on loans and leases | 1,566 | 1,380 | 742 | 739 | 700 | 559 |
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 138,473 | 115,401 | ||||
Portfolio loans and leases | 138,473 | 115,401 | ||||
Leases | Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | 0 | 0 | ||||
Carrying value of loans and leases: | ||||||
Portfolio loans and leases | 0 | 0 | ||||
Leases | Originated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,566 | 742 | ||||
Allowance on loans and leases | 1,566 | 742 | ||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 109,934 | 68,035 | ||||
Portfolio loans and leases | 109,934 | 68,035 | ||||
Leases | Acquired | ||||||
Carrying value of loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 28,539 | 47,366 | ||||
Portfolio loans and leases | 28,539 | 47,366 | ||||
Leases | Financial Asset Acquired With and Without Credit Deterioration | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 0 | 0 | ||||
Unallocated | ||||||
Allowance on loans and leases: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Unallocated | Purchased credit-impaired | ||||||
Allowance on loans and leases: | ||||||
Allowance on loans and leases | $ 0 | $ 0 |
Loans and Leases - Credit Risk
Loans and Leases - Credit Risk Profile by Internally Assigned Grade (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | $ 3,381,475 | $ 3,285,858 |
Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,752,160 | 2,487,296 |
Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,458,984 | 2,395,234 |
Pass | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,016,075 | 1,827,327 |
Pass | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 442,909 | 567,907 |
Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 5,680 | 18,239 |
Special Mention | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,198 | 664 |
Special Mention | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 3,482 | 17,575 |
Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 54,769 | 39,532 |
Substandard | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 18,014 | 11,551 |
Substandard | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 36,755 | 27,981 |
Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 552 | 2,138 |
Doubtful | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1 | 355 |
Doubtful | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 551 | 1,783 |
Pass, Special Mention and Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,519,985 | 2,455,143 |
Pass, Special Mention and Substandard | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,036,288 | 1,839,897 |
Pass, Special Mention and Substandard | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 483,697 | 615,246 |
Commercial mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,618,493 | 1,523,377 |
Commercial mortgage | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,259,397 | 1,122,327 |
Commercial mortgage | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,592,174 | 1,490,862 |
Commercial mortgage | Pass | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,252,916 | 1,114,171 |
Commercial mortgage | Pass | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 339,258 | 376,691 |
Commercial mortgage | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,321 | 13,448 |
Commercial mortgage | Special Mention | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 0 | 0 |
Commercial mortgage | Special Mention | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,321 | 13,448 |
Commercial mortgage | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 23,447 | 18,194 |
Commercial mortgage | Substandard | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 6,481 | 8,156 |
Commercial mortgage | Substandard | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 16,966 | 10,038 |
Commercial mortgage | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 551 | 873 |
Commercial mortgage | Doubtful | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 0 | 0 |
Commercial mortgage | Doubtful | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 551 | 873 |
Commercial mortgage | Pass, Special Mention and Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,618,493 | 1,523,377 |
Commercial mortgage | Pass, Special Mention and Substandard | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,259,397 | 1,122,327 |
Commercial mortgage | Pass, Special Mention and Substandard | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 359,096 | 401,050 |
Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 178,493 | 212,454 |
Construction | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 158,691 | 128,266 |
Construction | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 168,897 | 193,227 |
Construction | Pass | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 152,429 | 126,260 |
Construction | Pass | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 16,468 | 66,967 |
Construction | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 934 | 3,902 |
Construction | Special Mention | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 0 | 0 |
Construction | Special Mention | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 934 | 3,902 |
Construction | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 8,662 | 15,325 |
Construction | Substandard | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 6,262 | 2,006 |
Construction | Substandard | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,400 | 13,319 |
Construction | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 0 | 0 |
Construction | Doubtful | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 0 | 0 |
Construction | Doubtful | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 0 | 0 |
Construction | Pass, Special Mention and Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 178,493 | 212,454 |
Construction | Pass, Special Mention and Substandard | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 158,691 | 128,266 |
Construction | Pass, Special Mention and Substandard | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 19,802 | 84,188 |
Real estate loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,472,194 | 2,412,992 |
Real estate loans | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,979,193 | 1,794,811 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 722,999 | 719,312 |
Commercial and industrial | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 618,200 | 589,304 |
Commercial and industrial | Pass | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 697,913 | 711,145 |
Commercial and industrial | Pass | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 610,730 | 586,896 |
Commercial and industrial | Pass | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 87,183 | 124,249 |
Commercial and industrial | Special Mention | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,425 | 889 |
Commercial and industrial | Special Mention | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,198 | 664 |
Commercial and industrial | Special Mention | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 227 | 225 |
Commercial and industrial | Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 22,660 | 6,013 |
Commercial and industrial | Substandard | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 5,271 | 1,389 |
Commercial and industrial | Substandard | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 17,389 | 4,624 |
Commercial and industrial | Doubtful | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1 | 1,265 |
Commercial and industrial | Doubtful | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1 | 355 |
Commercial and industrial | Doubtful | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 0 | 910 |
Commercial and industrial | Pass, Special Mention and Substandard | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 722,999 | 719,312 |
Commercial and industrial | Pass, Special Mention and Substandard | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 618,200 | 589,304 |
Commercial and industrial | Pass, Special Mention and Substandard | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | $ 104,799 | $ 130,008 |
Loans and Leases - Credit Ris_2
Loans and Leases - Credit Risk Profile by Payment Activity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | $ 3,381,475 | $ 3,285,858 |
Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,752,160 | 2,487,296 |
Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 467,402 | 458,886 |
Residential mortgage | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 381,037 | 360,935 |
Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 207,806 | 218,275 |
Home equity loans and lines | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 180,068 | 183,283 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 47,809 | 38,153 |
Consumer | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 44,833 | 35,146 |
Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 138,473 | 115,401 |
Leases | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 109,934 | 68,035 |
Performing Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 855,308 | 824,714 |
Performing Financial Instruments | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 711,691 | 644,570 |
Performing Financial Instruments | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 143,617 | 180,144 |
Performing Financial Instruments | Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 464,632 | 454,469 |
Performing Financial Instruments | Residential mortgage | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 379,069 | 359,430 |
Performing Financial Instruments | Residential mortgage | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 85,563 | 95,039 |
Performing Financial Instruments | Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 205,873 | 216,794 |
Performing Financial Instruments | Home equity loans and lines | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 178,376 | 182,062 |
Performing Financial Instruments | Home equity loans and lines | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 27,497 | 34,732 |
Performing Financial Instruments | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 47,692 | 38,153 |
Performing Financial Instruments | Consumer | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 44,791 | 35,146 |
Performing Financial Instruments | Consumer | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,901 | 3,007 |
Performing Financial Instruments | Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 137,111 | 115,298 |
Performing Financial Instruments | Leases | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 109,455 | 67,932 |
Performing Financial Instruments | Leases | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 27,656 | 47,366 |
Nonperforming Financial Instruments | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 6,182 | 6,001 |
Nonperforming Financial Instruments | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 4,181 | 2,829 |
Nonperforming Financial Instruments | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,001 | 3,172 |
Nonperforming Financial Instruments | Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,770 | 4,417 |
Nonperforming Financial Instruments | Residential mortgage | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,968 | 1,505 |
Nonperforming Financial Instruments | Residential mortgage | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 802 | 2,912 |
Nonperforming Financial Instruments | Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,933 | 1,481 |
Nonperforming Financial Instruments | Home equity loans and lines | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,692 | 1,221 |
Nonperforming Financial Instruments | Home equity loans and lines | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 241 | 260 |
Nonperforming Financial Instruments | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 117 | 0 |
Nonperforming Financial Instruments | Consumer | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 42 | 0 |
Nonperforming Financial Instruments | Consumer | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 75 | 0 |
Nonperforming Financial Instruments | Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 1,362 | 103 |
Nonperforming Financial Instruments | Leases | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 479 | 103 |
Nonperforming Financial Instruments | Leases | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 883 | 0 |
Performing and Non-performing | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 861,490 | 830,715 |
Performing and Non-performing | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 715,872 | 647,399 |
Performing and Non-performing | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 145,618 | 183,316 |
Performing and Non-performing | Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 467,402 | 458,886 |
Performing and Non-performing | Residential mortgage | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 381,037 | 360,935 |
Performing and Non-performing | Residential mortgage | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 86,365 | 97,951 |
Performing and Non-performing | Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 207,806 | 218,275 |
Performing and Non-performing | Home equity loans and lines | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 180,068 | 183,283 |
Performing and Non-performing | Home equity loans and lines | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 27,738 | 34,992 |
Performing and Non-performing | Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 47,809 | 38,153 |
Performing and Non-performing | Consumer | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 44,833 | 35,146 |
Performing and Non-performing | Consumer | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 2,976 | 3,007 |
Performing and Non-performing | Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 138,473 | 115,401 |
Performing and Non-performing | Leases | Originated | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | 109,934 | 68,035 |
Performing and Non-performing | Leases | Financial Asset Acquired With and Without Credit Deterioration | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Portfolio loans and leases | $ 28,539 | $ 47,366 |
Loans and Leases - Troubled Deb
Loans and Leases - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018USD ($)contract | Sep. 30, 2018USD ($)contract | Dec. 31, 2017USD ($) | |
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | $ | $ 5,524 | $ 5,524 | $ 9,089 |
Number of contracts | 4 | 10 | |
Pre-Modification Outstanding Recorded Investment | $ | $ 406 | $ 684 | |
Post-Modification Outstanding Recorded Investment | $ | $ 430 | $ 708 | |
Loan Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 1 | 2 | |
Interest Rate Change and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 3 | |
Interest Rate Change and/or Interest-Only Period | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Contractual Payment Reduction (Leases only) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 2 | |
Temporary Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 3 | 3 | |
Home equity loans and lines | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 8 | |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 8 | |
Home equity loans and lines | Loan Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Home equity loans and lines | Interest Rate Change and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 1 | |
Home equity loans and lines | Interest Rate Change and/or Interest-Only Period | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Home equity loans and lines | Contractual Payment Reduction (Leases only) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Home equity loans and lines | Temporary Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 4 | 6 | |
Pre-Modification Outstanding Recorded Investment | $ | $ 406 | $ 625 | |
Post-Modification Outstanding Recorded Investment | $ | $ 430 | $ 649 | |
Residential mortgage | Loan Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 1 | 2 | |
Residential mortgage | Interest Rate Change and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 1 | |
Residential mortgage | Interest Rate Change and/or Interest-Only Period | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Residential mortgage | Contractual Payment Reduction (Leases only) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Residential mortgage | Temporary Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 3 | 3 | |
Leases | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 33 | |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 33 | |
Leases | Loan Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Leases | Interest Rate Change and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Leases | Interest Rate Change and/or Interest-Only Period | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Leases | Contractual Payment Reduction (Leases only) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 2 | |
Leases | Temporary Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | 0 | |
Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ | $ 18 | ||
Post-Modification Outstanding Recorded Investment | $ | $ 18 | ||
Commercial and industrial | Loan Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | ||
Commercial and industrial | Interest Rate Change and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 1 | ||
Commercial and industrial | Interest Rate Change and/or Interest-Only Period | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | ||
Commercial and industrial | Contractual Payment Reduction (Leases only) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | ||
Commercial and industrial | Temporary Payment Deferral | |||
Financing Receivable, Modifications [Line Items] | |||
Number of contracts | 0 | ||
Nonperforming Financial Instruments | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | $ | $ 1,208 | $ 1,208 | 3,289 |
Performing Financial Instruments | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructurings | $ | $ 4,316 | $ 4,316 | $ 5,800 |
Loans and Leases - Impaired Loa
Loans and Leases - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with related allowance, recorded investment | $ 2,349 | $ 1,818 | $ 2,349 | $ 1,818 | $ 3,058 |
Impaired loans with related allowance, principal balance | 2,349 | 1,818 | 2,349 | 1,818 | 3,058 |
Impaired loans, related allowance | 278 | 123 | 278 | 123 | 258 |
Impaired loans with related allowance, average principal balance | 2,354 | 1,825 | 2,368 | 1,846 | |
Impaired loans with related allowance, interest income recognized | 26 | 23 | 79 | 69 | |
Impaired loans without related allowance, recorded investment | 9,122 | 8,710 | 9,122 | 8,710 | 10,882 |
Impaired loans without related allowance, principal balance | 10,259 | 9,990 | 10,259 | 9,990 | 13,005 |
Impaired loans without related allowance, average principal balance | 9,812 | 8,954 | 9,702 | 9,178 | |
Impaired loans without related allowance, interest income recognized | 31 | 61 | 171 | 202 | |
Impaired loans, recorded investment | 11,471 | 10,528 | 11,471 | 10,528 | 13,940 |
Impaired loans, principal balance | 12,608 | 11,808 | 12,608 | 11,808 | 16,063 |
Impaired loans, related allowance | 278 | 123 | 278 | 123 | 258 |
Impaired loans, average principal balance | 12,166 | 10,779 | 12,070 | 11,024 | |
Impaired loans, interest income recognized | 57 | 84 | 250 | 271 | |
Home equity loans and lines | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with related allowance, recorded investment | 567 | 21 | 567 | 21 | 577 |
Impaired loans with related allowance, principal balance | 567 | 21 | 567 | 21 | 577 |
Impaired loans, related allowance | 19 | 3 | 19 | 3 | 19 |
Impaired loans with related allowance, average principal balance | 569 | 21 | 572 | 21 | |
Impaired loans with related allowance, interest income recognized | 6 | 0 | 17 | 1 | |
Impaired loans without related allowance, recorded investment | 2,035 | 633 | 2,035 | 633 | 1,585 |
Impaired loans without related allowance, principal balance | 2,096 | 694 | 2,096 | 694 | 1,645 |
Impaired loans without related allowance, average principal balance | 2,064 | 655 | 2,086 | 669 | |
Impaired loans without related allowance, interest income recognized | 2 | 1 | 10 | 5 | |
Impaired loans, related allowance | 19 | 3 | 19 | 3 | 19 |
Commercial mortgage | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans without related allowance, recorded investment | 735 | 1,449 | 735 | 1,449 | 2,128 |
Impaired loans without related allowance, principal balance | 793 | 1,485 | 793 | 1,485 | 2,218 |
Impaired loans without related allowance, average principal balance | 930 | 1,451 | 825 | 1,475 | |
Impaired loans without related allowance, interest income recognized | 0 | 15 | 6 | 45 | |
Residential mortgage | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with related allowance, recorded investment | 1,699 | 1,770 | 1,699 | 1,770 | 2,436 |
Impaired loans with related allowance, principal balance | 1,699 | 1,770 | 1,699 | 1,770 | 2,435 |
Impaired loans, related allowance | 228 | 116 | 228 | 116 | 230 |
Impaired loans with related allowance, average principal balance | 1,702 | 1,776 | 1,709 | 1,797 | |
Impaired loans with related allowance, interest income recognized | 20 | 23 | 60 | 67 | |
Impaired loans without related allowance, recorded investment | 4,242 | 4,688 | 4,242 | 4,688 | 5,290 |
Impaired loans without related allowance, principal balance | 4,328 | 5,015 | 4,328 | 5,015 | 5,529 |
Impaired loans without related allowance, average principal balance | 4,299 | 4,243 | 4,228 | 4,288 | |
Impaired loans without related allowance, interest income recognized | 24 | 43 | 91 | 118 | |
Impaired loans, related allowance | 228 | 116 | 228 | 116 | 230 |
Construction | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans without related allowance, recorded investment | 291 | 291 | |||
Impaired loans without related allowance, principal balance | 291 | 291 | |||
Impaired loans without related allowance, average principal balance | 294 | 239 | |||
Impaired loans without related allowance, interest income recognized | 0 | 5 | |||
Commercial and industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with related allowance, recorded investment | 25 | 25 | 18 | ||
Impaired loans with related allowance, principal balance | 25 | 25 | 19 | ||
Impaired loans, related allowance | 12 | 12 | 5 | ||
Impaired loans with related allowance, average principal balance | 25 | 29 | |||
Impaired loans with related allowance, interest income recognized | 0 | 1 | |||
Impaired loans without related allowance, recorded investment | 1,733 | 1,940 | 1,733 | 1,940 | 1,879 |
Impaired loans without related allowance, principal balance | 2,665 | 2,796 | 2,665 | 2,796 | 3,613 |
Impaired loans without related allowance, average principal balance | 2,138 | 2,605 | 2,236 | 2,746 | |
Impaired loans without related allowance, interest income recognized | 5 | 2 | 56 | 34 | |
Impaired loans, related allowance | 12 | 12 | 5 | ||
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans with related allowance, recorded investment | 58 | 27 | 58 | 27 | 27 |
Impaired loans with related allowance, principal balance | 58 | 27 | 58 | 27 | 27 |
Impaired loans, related allowance | 19 | 4 | 19 | 4 | 4 |
Impaired loans with related allowance, average principal balance | 58 | 28 | 58 | 28 | |
Impaired loans with related allowance, interest income recognized | 0 | 0 | 1 | 1 | |
Impaired loans without related allowance, recorded investment | 86 | 86 | |||
Impaired loans without related allowance, principal balance | 86 | 86 | |||
Impaired loans without related allowance, average principal balance | 87 | 88 | |||
Impaired loans without related allowance, interest income recognized | 0 | 3 | |||
Impaired loans, related allowance | 19 | 4 | 19 | 4 | 4 |
Impaired Loans Without Related Allowance | Leases | |||||
Financing Receivable, Impaired [Line Items] | |||||
Impaired loans, recorded investment | $ 1,400 | $ 270 | $ 1,400 | $ 270 | $ 272 |
Loans and Leases - Loan Acquire
Loans and Leases - Loan Acquired (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Acquired loans, outstanding principal | $ 654,264 | $ 833,352 |
Acquired loans, remaining loan mark | (24,949) | (34,790) |
Acquired loans, recorded investment | 629,315 | 798,562 |
Commercial mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Acquired loans, outstanding principal | 369,894 | 412,263 |
Acquired loans, remaining loan mark | (10,798) | (11,213) |
Acquired loans, recorded investment | 359,096 | 401,050 |
Home equity loans and lines | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Acquired loans, outstanding principal | 30,240 | 37,944 |
Acquired loans, remaining loan mark | (2,502) | (2,952) |
Acquired loans, recorded investment | 27,738 | 34,992 |
Residential mortgage | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Acquired loans, outstanding principal | 89,302 | 101,523 |
Acquired loans, remaining loan mark | (2,937) | (3,572) |
Acquired loans, recorded investment | 86,365 | 97,951 |
Construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Acquired loans, outstanding principal | 20,142 | 86,081 |
Acquired loans, remaining loan mark | (340) | (1,893) |
Acquired loans, recorded investment | 19,802 | 84,188 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Acquired loans, outstanding principal | 111,799 | 141,960 |
Acquired loans, remaining loan mark | (7,000) | (11,952) |
Acquired loans, recorded investment | 104,799 | 130,008 |
Consumer | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Acquired loans, outstanding principal | 3,094 | 3,051 |
Acquired loans, remaining loan mark | (118) | (44) |
Acquired loans, recorded investment | 2,976 | 3,007 |
Leases | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Acquired loans, outstanding principal | 29,793 | 50,530 |
Acquired loans, remaining loan mark | (1,254) | (3,164) |
Acquired loans, recorded investment | $ 28,539 | $ 47,366 |
Mortgage Servicing Rights - Mor
Mortgage Servicing Rights - Mortgage Servicing Rights Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Balance, beginning of period | $ 5,861 | ||||
Balance, end of period | $ 5,328 | 5,328 | |||
Fair value | 6,600 | 6,600 | $ 6,400 | ||
Residential mortgages | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Balance, beginning of period | 5,511 | $ 5,682 | 5,861 | $ 5,582 | |
Additions | 0 | 282 | 16 | 770 | |
Amortization | (206) | (229) | (623) | (571) | |
Recovery / (Impairment) | 23 | (3) | 74 | (49) | |
Balance, end of period | 5,328 | 5,732 | 5,328 | 5,732 | |
Fair value | 6,586 | 6,146 | 6,586 | 6,146 | $ 6,397 |
Residential mortgage loans serviced for others | $ 596,162 | $ 647,997 | $ 596,162 | $ 647,997 |
Mortgage Servicing Rights - Nar
Mortgage Servicing Rights - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Transfers and Servicing [Abstract] | ||
Sensitivity percent, adverse change in assumption, low | 10.00% | |
Sensitivity percent, adverse change in assumption, high | 20.00% | |
Fair value | $ 6.6 | $ 6.4 |
Mortgage Servicing Rights - Key
Mortgage Servicing Rights - Key Economic Assumptions and Sensitivity of Current Fair Value of MSRs (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Servicing Assets at Fair Value [Line Items] | |||
Fair value | $ 6,600 | $ 6,400 | |
Residential mortgages | |||
Servicing Assets at Fair Value [Line Items] | |||
Fair value | $ 6,586 | $ 6,397 | $ 6,146 |
Weighted average life (in years) | 6 years 7 months 6 days | 6 years 36 days | |
Prepayment speeds (constant prepayment rate) | 8.70% | 10.30% | |
10% adverse change | $ (85) | $ (194) | |
20% adverse change | $ (190) | $ (394) | |
Discount rate (as a percent) | 9.55% | 9.55% | |
10% adverse change | $ (245) | $ (225) | |
20% adverse change | $ (472) | $ (434) |
Goodwill and Intangibles Asse_3
Goodwill and Intangibles Assets - Goodwill and Intangible Assets Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Roll Forward] | ||||
Balance December 31, 2017 | $ 179,889 | |||
Additions | 677 | |||
Adjustments | 3,298 | |||
Balance September 30, 2018 | $ 183,864 | 183,864 | ||
Finite-lived Intangible Assets [Roll Forward] | ||||
Additions | 994 | |||
Intangible assets amortization | (891) | $ (677) | (2,659) | $ (2,057) |
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Total Intangible Assets | 25,966 | |||
Additions | 994 | |||
Intangible assets amortization | (891) | $ (677) | (2,659) | $ (2,057) |
Total Intangible Assets | 24,301 | 24,301 | ||
Total Goodwill and Intangible Assets, beginning balance | 205,855 | |||
Intangible Assets (Including Goodwill) Acquired | 1,671 | |||
Grand Total adjustments | 3,298 | |||
Intangible assets amortization | (2,659) | |||
Total Goodwill and Intangible Assets, ending balance | 208,165 | 208,165 | ||
Domain Name | ||||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Indefinite-lived intangible assets | 151 | |||
Indefinite-lived intangible assets acquired | 0 | |||
Indefinite-lived intangible assets | 151 | 151 | ||
Core deposit intangible | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance December 31, 2017 | 7,380 | |||
Additions | 0 | |||
Intangible assets amortization | (1,108) | |||
Balance September 30, 2018 | 6,272 | $ 6,272 | ||
Intangible asset amortization period (Year) | 10 years | |||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Additions | $ 0 | |||
Intangible assets amortization | (1,108) | |||
Customer relationships | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance December 31, 2017 | 14,173 | |||
Additions | 994 | |||
Intangible assets amortization | (1,271) | |||
Balance September 30, 2018 | $ 13,896 | 13,896 | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Additions | 994 | |||
Intangible assets amortization | (1,271) | |||
Customer relationships | Minimum | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset amortization period (Year) | 10 years | |||
Customer relationships | Maximum | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset amortization period (Year) | 20 years | |||
Non-compete agreements | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance December 31, 2017 | 1,319 | |||
Additions | 0 | |||
Intangible assets amortization | (171) | |||
Balance September 30, 2018 | $ 1,148 | 1,148 | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Additions | 0 | |||
Intangible assets amortization | (171) | |||
Non-compete agreements | Minimum | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset amortization period (Year) | 5 years | |||
Non-compete agreements | Maximum | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset amortization period (Year) | 10 years | |||
Trade name | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance December 31, 2017 | 2,322 | |||
Additions | 0 | |||
Intangible assets amortization | (49) | |||
Balance September 30, 2018 | $ 2,273 | 2,273 | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Additions | 0 | |||
Intangible assets amortization | (49) | |||
Trade name | Minimum | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset amortization period (Year) | 3 years | |||
Favorable lease assets | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Balance December 31, 2017 | 621 | |||
Additions | 0 | |||
Intangible assets amortization | (60) | |||
Balance September 30, 2018 | $ 561 | 561 | ||
Indefinite-lived Intangible Assets [Roll Forward] | ||||
Additions | 0 | |||
Intangible assets amortization | (60) | |||
Favorable lease assets | Minimum | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset amortization period (Year) | 1 year | |||
Favorable lease assets | Maximum | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible asset amortization period (Year) | 16 years | |||
Goodwill – Wealth | ||||
Goodwill [Roll Forward] | ||||
Balance December 31, 2017 | 20,412 | |||
Additions | 0 | |||
Adjustments | 0 | |||
Balance September 30, 2018 | $ 20,412 | 20,412 | ||
Goodwill – Banking | ||||
Goodwill [Roll Forward] | ||||
Balance December 31, 2017 | 153,545 | |||
Additions | 0 | |||
Adjustments | 3,298 | |||
Balance September 30, 2018 | 156,843 | 156,843 | ||
Goodwill – Insurance | ||||
Goodwill [Roll Forward] | ||||
Balance December 31, 2017 | 5,932 | |||
Additions | 677 | |||
Adjustments | 0 | |||
Balance September 30, 2018 | $ 6,609 | $ 6,609 |
Goodwill and Intangibles Asse_4
Goodwill and Intangibles Assets - Narrative (Details) - USD ($) | Oct. 31, 2017 | Sep. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $ 0 | |
Impairment of intangibles | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Interest-bearing demand | $ 578,243 | $ 481,336 |
Money market | 812,027 | 862,639 |
Savings | 286,266 | 338,572 |
Retail time deposits | 561,123 | 532,202 |
Wholesale non-maturity deposits | 24,040 | 62,276 |
Wholesale time deposits | 261,164 | 171,929 |
Total interest-bearing deposits | 2,522,863 | 2,448,954 |
Noninterest-bearing deposits | 834,363 | 924,844 |
Total deposits | $ 3,357,226 | $ 3,373,798 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term FHLB Advances - Short-term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 226,498 | $ 237,865 | $ 180,874 |
Repurchase agreements – commercial customers | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | 21,548 | 25,865 | |
Short-term FHLB advances | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 204,950 | $ 212,000 |
Short-Term Borrowings and Lon_4
Short-Term Borrowings and Long-Term FHLB Advances - Information Concerning Short-term Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Long-term Federal Home Loan Bank Advances [Abstract] | |||||
Balance at period-end | $ 226,498 | $ 180,874 | $ 226,498 | $ 180,874 | $ 237,865 |
Maximum amount outstanding at any month end | 302,932 | 184,578 | 302,932 | 184,578 | |
Average balance outstanding during the period | $ 218,551 | $ 182,845 | $ 205,046 | $ 110,268 | |
Short-term debt, weighted average interest rate at period end (as a percent) | 2.18% | 1.17% | 2.18% | 1.17% | |
Short-term debt, weighted average interest rate aid during the period (as a percent) | 2.09% | 1.19% | 1.85% | 0.98% |
Short-Term Borrowings and Lon_5
Short-Term Borrowings and Long-Term FHLB Advances - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances [Line Items] | ||
Long-term FHLB advances | $ 72,841 | $ 139,140 |
Federal Home Loan Bank stock | 14,678 | $ 20,083 |
Federal Home Loan Bank maximum borrowing capacity | 1,500,000 | |
Federal Home Loan Bank, advances, amount available | 1,200,000 | |
Overnight Federal Funds | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, advances, amount available | 79,000 | |
Federal Reserve Discount Window | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, advances, amount available | $ 139,600 |
Short-Term Borrowings and Lon_6
Short-Term Borrowings and Long-Term FHLB Advances - Maturity of FHLB Advances and Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances [Line Items] | ||
Total | $ 72,841 | $ 139,140 |
Short-term FHLB advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Within one year | 28,106 | 83,766 |
Over one year through five years | 44,735 | 55,374 |
Total | $ 72,841 | $ 139,140 |
- Rate and Maturity Information
- Rate and Maturity Information on Federal Home Loan Bank Advances and Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances [Line Items] | ||
Other long-term debt | $ 72,841 | $ 139,140 |
Bullet maturity – fixed rate | Fixed Rate | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Other long-term debt | $ 72,841 | 118,131 |
Bullet maturity – fixed rate | Fixed Rate | Weighted average rate | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, advances, interest rate at period end | 1.32% | |
Bullet maturity – fixed rate | Fixed Rate | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, advances, interest rate at period end | 1.31% | |
Bullet maturity – fixed rate | Fixed Rate | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, advances, interest rate at period end | 2.45% | |
Convertible-fixed | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Other long-term debt | $ 0 | $ 21,009 |
Subordinated Notes - Narrative
Subordinated Notes - Narrative (Details) - Subordinated Debt - USD ($) | Dec. 13, 2017 | Aug. 06, 2015 |
Subordinated notes – due 2027 | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 70,000,000 | |
Subordinated notes – due 2025 | ||
Debt Instrument [Line Items] | ||
Debt issued | $ 30,000,000 |
Subordinated Notes - Subordinat
Subordinated Notes - Subordinated Notes, Including Debt Issuance Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Subordinated debt | $ 98,482 | $ 98,416 |
Subordinated notes – due 2027 | ||
Debt Instrument [Line Items] | ||
Subordinated debt | $ 68,855 | $ 68,829 |
Stated interest rate | 4.25% | 4.25% |
Subordinated notes – due 2025 | ||
Debt Instrument [Line Items] | ||
Subordinated debt | $ 29,627 | $ 29,587 |
Stated interest rate | 4.75% | 4.75% |
Subordinated Debt | Subordinated notes – due 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.25% | |
Subordinated Debt | Subordinated notes – due 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.75% | |
Subordinated Debt | LIBOR | Subordinated notes – due 2027 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.05% | |
Subordinated Debt | LIBOR | Subordinated notes – due 2025 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.068% |
Junior Subordinated Debentures
Junior Subordinated Debentures (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 15, 2017 | |
Investment Holdings [Line Items] | |||
Common securities of Trust I and Trust II owned | $ 16,529,000 | $ 12,470,000 | |
Royal Bancshares Capital Trust II | |||
Investment Holdings [Line Items] | |||
Capital securities issued, amount | 12,500,000 | ||
Common securities issued, amount | 387,000 | ||
Royal Bancshares Capital Trust I | |||
Investment Holdings [Line Items] | |||
Capital securities issued, amount | 12,500,000 | ||
Common securities issued, amount | $ 387,000 | ||
Junior Subordinated Debentures, RBPI Merger | Junior Subordinated Debt | |||
Investment Holdings [Line Items] | |||
Coupon rate (as a percent) | 4.48% | ||
Junior Subordinated Debentures, RBPI Merger | Junior Subordinated Debt | LIBOR | |||
Investment Holdings [Line Items] | |||
Basis spread on variable rate | 2.15% | ||
Royal Bancshares of Pennsylvania, Inc. | |||
Investment Holdings [Line Items] | |||
Junior subordinated debentures | $ 21,400,000 | ||
Royal Bancshares of Pennsylvania, Inc. | Royal Bancshares Capital Trust I | |||
Investment Holdings [Line Items] | |||
Junior subordinated debentures | 10,700,000 | ||
Royal Bancshares Capital Trust II | |||
Investment Holdings [Line Items] | |||
Common securities of Trust I and Trust II owned | $ 387,000 | ||
Royal Bancshares Capital Trust II | Royal Bancshares of Pennsylvania, Inc. | |||
Investment Holdings [Line Items] | |||
Junior subordinated debentures | 10,700,000 | ||
Royal Bancshares Capital Trust I and II | |||
Investment Holdings [Line Items] | |||
Common securities of Trust I and Trust II owned | $ 774,000 | ||
Royal Bancshares Capital Trust I | |||
Investment Holdings [Line Items] | |||
Common securities of Trust I and Trust II owned | $ 387,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative liability held as collateral | $ 420 | $ 1,300 |
Fair value of net derivatives | $ 1,800 | $ 1,600 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative Asset [Abstract] | ||
Notional Amount | $ 331,030 | $ 139,337 |
Fair Value | 5,886 | 1,916 |
Derivative Liability [Abstract] | ||
Notional Amount | 296,431 | 125,526 |
Fair Value | 5,844 | 1,898 |
Customer derivatives – interest rate swaps | ||
Derivative Asset [Abstract] | ||
Notional Amount | 295,566 | 124,627 |
Fair Value | 5,843 | 1,895 |
Derivative Liability [Abstract] | ||
Notional Amount | 295,566 | 124,627 |
Fair Value | 5,843 | 1,895 |
RPAs sold | ||
Derivative Asset [Abstract] | ||
Notional Amount | 0 | 0 |
Fair Value | 0 | 0 |
Derivative Liability [Abstract] | ||
Notional Amount | 865 | 899 |
Fair Value | 1 | 3 |
RPAs purchased | ||
Derivative Asset [Abstract] | ||
Notional Amount | 35,464 | 14,710 |
Fair Value | 43 | 21 |
Derivative Liability [Abstract] | ||
Notional Amount | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Accounting for Uncertainty in_2
Accounting for Uncertainty in Income Taxes (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Accrued interest and penalties | $ 0 | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Oct. 17, 2018 | Aug. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Aug. 06, 2015 |
Class of Stock [Line Items] | ||||||
Dividends paid (in dollars per share) | $ 0.25 | |||||
Total dividends | $ 5,100,000 | |||||
Common stock, outstanding (in shares) | 20,443,918 | 20,292,420 | 20,292,420 | 20,161,395 | ||
Maximum investment under stock purchase and dividend reinvestment plan | $ 120,000 | |||||
Shares issued pursuant to exercise of stock options (in shares) | 15,150 | 63,825 | ||||
Stock issued, increase in shareholders' equity | $ 349,000 | $ 1,500,000 | ||||
The 2015 Program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, number of shares authorized to be repurchased | 1,200,000 | |||||
Shares repurchased during period | 14,263 | |||||
Shares remaining authorized for repurchase | $ 175,037 | 175,037 | ||||
RSU's and PSU's | ||||||
Class of Stock [Line Items] | ||||||
Share based compensation expense | $ 708,000 | $ 1,900,000 | ||||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Shelf registration, shares registered | 1,500,000 | 1,500,000 | ||||
Maximum | The 2015 Program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 40,000,000 | |||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Dividends declared per share (in dollars per share) | $ 0.25 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 528,802 | |||
Other comprehensive income (loss) | $ (2,211) | $ 164 | (8,988) | $ 1,009 |
Ending balance | 552,103 | 552,103 | ||
Net Change in Unrealized Gains on Available-for- Sale Investment Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (9,669) | (433) | (2,861) | (1,231) |
Other comprehensive income (loss) | (2,319) | 149 | (9,127) | 947 |
Ending balance | (11,988) | (284) | (11,988) | (284) |
Net Change in Unfunded Pension Liability | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,522) | (1,131) | (1,553) | (1,178) |
Other comprehensive income (loss) | 108 | 15 | 139 | 62 |
Ending balance | (1,414) | (1,116) | (1,414) | (1,116) |
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (11,191) | (1,564) | (4,414) | (2,409) |
Other comprehensive income (loss) | (8,988) | |||
Ending balance | $ (13,402) | $ (1,400) | $ (13,402) | $ (1,400) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified From Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other operating expenses | $ 4,668 | $ 4,071 | $ 12,970 | $ 11,353 |
Other operating income | 3,171 | 1,405 | 10,543 | 3,779 |
Income before income taxes | 20,747 | 15,505 | 59,080 | 43,522 |
Income tax expense | 4,066 | 4,766 | 12,419 | 14,306 |
Net income attributable to Bryn Mawr Bank Corporation | 16,682 | 10,739 | 46,656 | 29,216 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Net Change in Unrealized Gains on Available-for- Sale Investment Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Realization of gain on sale of investment securities available for sale | 0 | (72) | 7 | 73 |
Other operating income | 0 | 0 | 417 | 0 |
Income before income taxes | 0 | (72) | 424 | 73 |
Income tax expense | 0 | (25) | 89 | 27 |
Net income attributable to Bryn Mawr Bank Corporation | 0 | (47) | 335 | 46 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Net Change in Unfunded Pension Liability | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other operating expenses | 25 | 24 | 75 | 71 |
Income tax expense | 5 | 8 | 15 | 25 |
Net income attributable to Bryn Mawr Bank Corporation | $ 20 | $ 16 | $ 60 | $ 46 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Bryn Mawr Bank Corporation | $ 16,682 | $ 10,739 | $ 46,656 | $ 29,216 |
Denominator for basic earnings per share – weighted average shares outstanding | 20,270,706 | 17,023,046 | 20,237,757 | 16,987,499 |
Effect of dilutive common shares | 167,670 | 230,936 | 206,318 | 254,728 |
Denominator for diluted earnings per share – adjusted weighted average shares outstanding | 20,438,376 | 17,253,982 | 20,444,075 | 17,242,227 |
Basic earnings per share (in dollars per share) | $ 0.82 | $ 0.63 | $ 2.31 | $ 1.72 |
Diluted earnings per share (in dollars per share) | $ 0.82 | $ 0.62 | $ 2.28 | $ 1.69 |
Antidilutive shares excluded from computation of average dilutive earnings per share | 22,232 | 21,621 | 48,807 | 47,268 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Insurance commissions | $ 1,754 | $ 1,373 | $ 5,349 | $ 3,079 |
Capital markets revenue | 710 | 843 | 3,481 | 1,796 |
Loan servicing and other fees | 559 | 548 | 1,720 | 1,570 |
Net gain on sale of loans | 631 | 799 | 1,677 | 1,948 |
Net gain on sale of investment securities available for sale | 0 | 72 | 7 | 73 |
Net gain (loss) on sale of other real estate owned (OREO) | 5 | 0 | 292 | (12) |
Dividends on FHLB and FRB stock | 375 | 217 | 1,316 | 649 |
Other operating income | 3,171 | 1,405 | 10,543 | 3,779 |
Total noninterest income | 18,274 | 15,584 | 57,885 | 43,596 |
Fees for wealth management services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,343 | 9,651 | 31,309 | 28,761 |
Service charges on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 726 | 676 | 2,191 | 1,953 |
Merchant Interchange Fees, Safe Deposit Box Rentals, and Rent Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 595 | 520 | 1,700 | 1,500 |
Banking | ||||
Disaggregation of Revenue [Line Items] | ||||
Insurance commissions | 0 | 0 | 0 | 0 |
Capital markets revenue | 710 | 843 | 3,481 | 1,796 |
Loan servicing and other fees | 559 | 548 | 1,720 | 1,570 |
Net gain on sale of loans | 631 | 799 | 1,677 | 1,948 |
Net gain on sale of investment securities available for sale | 0 | 72 | 7 | 73 |
Net gain (loss) on sale of other real estate owned (OREO) | 5 | 0 | 292 | (12) |
Dividends on FHLB and FRB stock | 375 | 217 | 1,316 | 649 |
Other operating income | 3,123 | 1,364 | 10,393 | 3,641 |
Total noninterest income | 6,129 | 4,519 | 21,077 | 11,618 |
Banking | Fees for wealth management services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Banking | Service charges on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 726 | 676 | 2,191 | 1,953 |
Wealth Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Insurance commissions | 1,754 | 1,373 | 5,349 | 3,079 |
Capital markets revenue | 0 | 0 | 0 | 0 |
Loan servicing and other fees | 0 | 0 | 0 | 0 |
Net gain on sale of loans | 0 | 0 | 0 | 0 |
Net gain on sale of investment securities available for sale | 0 | 0 | 0 | 0 |
Net gain (loss) on sale of other real estate owned (OREO) | 0 | 0 | 0 | 0 |
Dividends on FHLB and FRB stock | 0 | 0 | 0 | 0 |
Other operating income | 48 | 41 | 150 | 138 |
Total noninterest income | 12,145 | 11,065 | 36,808 | 31,978 |
Wealth Management | Fees for wealth management services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,343 | 9,651 | 31,309 | 28,761 |
Wealth Management | Service charges on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2018 | Apr. 30, 2015 | Apr. 29, 2015 | Apr. 28, 2010 | Apr. 25, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance shares, minimum target (as a percent) | 0.00% | |||||
Performance shares, maximum target (as a percent) | 150.00% | |||||
Number of unvested options (in shares) | 0 | 0 | ||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation expense | $ 318 | $ 873 | ||||
Unrecognized compensation costs | 2,300 | $ 2,300 | ||||
Unrecognized compensation costs, period of recognition | 2 years 3 months 18 days | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation expense | 390 | $ 1,100 | ||||
Unrecognized compensation costs | $ 3,300 | $ 3,300 | ||||
Unrecognized compensation costs, period of recognition | 2 years 2 months 12 days | |||||
The 2007 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 428,996 | |||||
The 2010 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 945,002 | 500,000 | 445,002 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Shares | ||
Options outstanding (in shares) | 66,571 | 115,246 |
Forfeited (in shares) | 0 | 0 |
Expired (in shares) | 0 | 0 |
Exercised (in shares) | (15,150) | (63,825) |
Options outstanding (in shares) | 51,421 | 51,421 |
Weighted Average Exercise Price | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 19.26 | $ 20.73 |
Forfeited, weighted average exercise price (in dollars per share) | 0 | 0 |
Expired, weighted average exercise price (in dollars per share) | 0 | 0 |
Exercised, weighted average exercise price (in dollars per share) | 23.02 | 22.81 |
Options outstanding, weighted average exercise price (in dollars per share) | 18.15 | 18.15 |
Weighted Average Grant Date Fair Value | ||
Options outstanding, weighted average grant date fair value (in dollars per share) | 4.71 | 4.86 |
Forfeited, weighted average grant date fair value (in dollars per share) | 0 | 0 |
Expired, weighted average grant date fair value (in dollars per share) | 0 | 0 |
Exercised, weighted average grant date fair value (in dollars per share) | 5.09 | 5.06 |
Options outstanding, weighted average grant date fair value (in dollars per share) | $ 4.60 | $ 4.60 |
Stock-Based Compensation - Proc
Stock-Based Compensation - Proceeds, Related Tax Benefits Realized from Options Exercised and Intrinsic Value of Options Exercised (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Proceeds from exercise of stock options | $ 349 | $ 283 | $ 1,456 | $ 1,288 |
Related tax benefit recognized | 81 | 96 | 312 | 402 |
Net proceeds of options exercised | 430 | 379 | 1,768 | 1,690 |
Intrinsic value of options exercised | $ 386 | $ 273 | $ 1,484 | $ 1,147 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options Outstanding and Exercisable (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Options outstanding (in shares) | 51,421 | 66,571 | 115,246 |
Weighted average exercise price, options outstanding (in dollars per share) | $ 18.15 | $ 19.26 | $ 20.73 |
Aggregate intrinsic value, options outstanding | $ 1,478 | ||
Weighted average contractual term, options outstanding (Year) | 10 months 24 days | ||
Exercisable options (in shares) | 51,421 | ||
Weighted average exercise price, exercisable options (in dollars per share) | $ 18.15 | ||
Aggregate intrinsic value, exercisable options | $ 1,478 | ||
Weighted average contractual term, exercisable options (Year) | 10 months 24 days |
Stock-Based Compensation - Unve
Stock-Based Compensation - Unvested Restricted Stock Units Awards (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Number of Shares | ||
Balance (in shares) | 68,595 | 75,707 |
Granted (in shares) | 23,843 | 26,243 |
Vested (in shares) | (16,122) | (24,469) |
Forfeited (in shares) | 0 | (1,165) |
Balance (in shares) | 76,316 | 76,316 |
Weighted Average Grant Date Fair Value | ||
Balance, weighted average grant date fair value (in dollars per share) | $ 36.89 | $ 35.80 |
Granted, weighted average grant date fair value (in dollars per share) | 46.29 | 46.07 |
Vested, weighted average grant date fair value (in dollars per share) | 33.65 | 32.16 |
Forfeited, weighted average grant date fair value (in dollars per share) | 0 | 35.36 |
Balance, weighted average grant date fair value (in dollars per share) | $ 40.51 | $ 40.51 |
Stock-Based Compensation - Un_2
Stock-Based Compensation - Unvested Performance Stock Awards (Details) - Performance Stock Awards - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Number of Shares | ||
Balance (in shares) | 130,260 | 168,453 |
Granted (in shares) | 40,722 | 40,722 |
Vested (in shares) | (48,056) | (81,840) |
Forfeited (in shares) | 0 | (4,409) |
Balance (in shares) | 122,926 | 122,926 |
Weighted Average Grant Date Fair Value | ||
Balance, weighted average grant date fair value (in dollars per share) | $ 26.73 | $ 24.76 |
Granted, weighted average grant date fair value (in dollars per share) | 44.56 | 44.56 |
Vested, weighted average grant date fair value (in dollars per share) | 16.04 | 16.40 |
Forfeited, weighted average grant date fair value (in dollars per share) | 0 | 26.57 |
Balance, weighted average grant date fair value (in dollars per share) | $ 36.82 | $ 36.82 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Allowance for Loan and Lease Loss | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Valuation allowance, period increase (decrease) | $ (148) | $ 20 |
Minimum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount on appraisals of secured collateral (as a percent) | 10.00% | |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Discount on appraisals of secured collateral (as a percent) | 50.00% |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Assets Measured on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 528,064 | $ 689,202 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 528,064 | 689,202 |
Derivatives | 5,886 | 1,898 |
Total financial assets | 542,290 | 695,710 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 100 | 203,597 |
Derivatives | 0 | 0 |
Total financial assets | 8,440 | 208,207 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 527,964 | 485,605 |
Derivatives | 5,886 | 1,898 |
Total financial assets | 533,850 | 487,503 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Derivatives | 0 | 0 |
Total financial assets | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 100 | 200,088 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 100 | 200,088 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Obligations of the U.S. government and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 190,453 | 151,044 |
Fair Value, Measurements, Recurring | Obligations of the U.S. government and agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Obligations of the U.S. government and agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 190,453 | 151,044 |
Fair Value, Measurements, Recurring | Obligations of the U.S. government and agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15,799 | 21,310 |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15,799 | 21,310 |
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 284,421 | 274,990 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 284,421 | 274,990 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 36,193 | 36,662 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 36,193 | 36,662 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Other investment securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,098 | 1,599 |
Fair Value, Measurements, Recurring | Other investment securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Other investment securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,098 | 1,599 |
Fair Value, Measurements, Recurring | Other investment securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Mutual funds with no stated maturity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,509 | |
Investment securities trading | 8,340 | 4,610 |
Fair Value, Measurements, Recurring | Mutual funds with no stated maturity | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 3,509 | |
Investment securities trading | 8,340 | 4,610 |
Fair Value, Measurements, Recurring | Mutual funds with no stated maturity | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Investment securities trading | 0 | 0 |
Fair Value, Measurements, Recurring | Mutual funds with no stated maturity | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Investment securities trading | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 19,708 | 20,655 |
MSRs | 6,586 | 6,397 |
Impaired loans and leases | 12,593 | 13,954 |
OREO | 529 | 304 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
MSRs | 0 | 0 |
Impaired loans and leases | 0 | 0 |
OREO | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
MSRs | 0 | 0 |
Impaired loans and leases | 0 | 0 |
OREO | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 19,708 | 20,655 |
MSRs | 6,586 | 6,397 |
Impaired loans and leases | 12,593 | 13,954 |
OREO | $ 529 | $ 304 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Investment securities - available for sale | $ 528,064 | $ 689,202 |
Investment securities, trading | 8,340 | 4,610 |
Investment securities – held to maturity | 8,544 | 7,851 |
Carrying Amount | ||
Financial assets: | ||
Investment securities - available for sale | 528,064 | 689,202 |
Investment securities, trading | 8,340 | 4,610 |
Total financial assets | 4,013,229 | 4,088,471 |
Financial liabilities: | ||
Total financial liabilities | 3,842,861 | 3,921,604 |
Fair Value | ||
Financial assets: | ||
Investment securities - available for sale | 528,064 | 689,202 |
Investment securities, trading | 8,340 | 4,610 |
Total financial assets | 4,014,081 | 4,114,395 |
Financial liabilities: | ||
Total financial liabilities | 3,837,391 | 3,910,205 |
Level 1 | Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 45,354 | 60,024 |
Level 1 | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 45,354 | 60,024 |
Level 2 | Carrying Amount | ||
Financial assets: | ||
Investment securities – held to maturity | 8,916 | 7,932 |
Loans held for sale | 4,111 | 3,794 |
Financial liabilities: | ||
Deposits | 3,357,226 | 3,373,798 |
Short-term borrowings | 226,498 | 237,865 |
Long-term FHLB advances | 72,841 | 139,140 |
Subordinated notes | 98,482 | 98,416 |
Junior subordinated debentures | 21,538 | 21,416 |
Level 2 | Carrying Amount | Interest rate swaps | ||
Financial assets: | ||
Derivative assets | 5,843 | 1,895 |
Financial liabilities: | ||
Derivative liabilities | 5,843 | 1,895 |
Level 2 | Carrying Amount | RPAs purchased | ||
Financial assets: | ||
Derivative assets | 43 | 21 |
Level 2 | Carrying Amount | RPAs sold | ||
Financial liabilities: | ||
Derivative liabilities | 1 | 3 |
Level 2 | Fair Value | ||
Financial assets: | ||
Investment securities – held to maturity | 8,544 | 7,851 |
Loans held for sale | 4,111 | 3,794 |
Financial liabilities: | ||
Deposits | 3,351,183 | 3,368,276 |
Short-term borrowings | 226,498 | 237,865 |
Long-term FHLB advances | 71,978 | 138,685 |
Subordinated notes | 97,892 | 95,044 |
Junior subordinated debentures | 23,564 | 19,366 |
Level 2 | Fair Value | Interest rate swaps | ||
Financial assets: | ||
Derivative assets | 5,843 | 1,895 |
Financial liabilities: | ||
Derivative liabilities | 5,843 | 1,895 |
Level 2 | Fair Value | RPAs purchased | ||
Financial assets: | ||
Derivative assets | 43 | 21 |
Level 2 | Fair Value | RPAs sold | ||
Financial liabilities: | ||
Derivative liabilities | 1 | 3 |
Level 3 | Carrying Amount | ||
Financial assets: | ||
Net portfolio loans and leases | 3,362,791 | 3,268,333 |
MSRs | 5,328 | 5,861 |
Other assets | 44,439 | 46,799 |
Financial liabilities: | ||
Other liabilities | 60,432 | 49,071 |
Level 3 | Fair Value | ||
Financial assets: | ||
Net portfolio loans and leases | 3,362,757 | 3,293,802 |
MSRs | 6,586 | 6,397 |
Other assets | 44,439 | 46,799 |
Financial liabilities: | ||
Other liabilities | $ 60,432 | $ 49,071 |
Financial Instruments With Of_2
Financial Instruments With Off-Balance Sheet Risk, Contingencies and Concentration of Credit Risk (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Standby Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Commitments and obligations, liability outstanding | $ 21.2 | $ 17.7 |
Commitments to Extend Credit | ||
Loss Contingencies [Line Items] | ||
Commitments and obligations, liability outstanding | $ 764.7 | $ 748.3 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 36,729 | $ 29,438 | $ 111,484 | $ 84,806 | |
Provision for loan and lease losses | 664 | 1,333 | 4,831 | 1,541 | |
Net interest income after provision for loan and lease losses | 36,065 | 28,105 | 106,653 | 83,265 | |
Fees for wealth management services | 10,343 | 9,651 | 31,309 | 28,761 | |
Insurance commissions | 1,754 | 1,373 | 5,349 | 3,079 | |
Capital markets revenue | 710 | 843 | 3,481 | 1,796 | |
Service charges on deposit accounts | 726 | 676 | 2,191 | 1,953 | |
Loan servicing and other fees | 559 | 548 | 1,720 | 1,570 | |
Net gain on sale of loans | 631 | 799 | 1,677 | 1,948 | |
Net gain on sale of investment securities available for sale | 7 | 73 | |||
Net gain on sale of OREO | 5 | 0 | 292 | (12) | |
Other operating income | 3,546 | 1,622 | 11,859 | 4,428 | |
Total noninterest income | 18,274 | 15,584 | 57,885 | 43,596 | |
Salaries and wages | 16,528 | 13,602 | 48,750 | 39,632 | |
Employee benefits | 3,356 | 2,560 | 9,941 | 7,453 | |
Occupancy and bank premises | 2,717 | 2,485 | 8,464 | 7,258 | |
Amortization of intangible assets | 891 | 677 | 2,659 | 2,057 | |
Professional fees | 997 | 739 | 2,677 | 2,499 | |
Other operating expenses | 9,103 | 8,121 | 32,967 | 24,440 | |
Total noninterest expenses | 33,592 | 28,184 | 105,458 | 83,339 | |
Segment profit | 20,747 | 15,505 | 59,080 | 43,522 | |
Intersegment (revenues) expenses | 0 | 0 | 0 | 0 | |
Pre-tax segment profit after eliminations | $ 20,747 | $ 15,505 | $ 59,080 | $ 43,522 | |
% of segment pre-tax profit after eliminations | 100.00% | 100.00% | 100.00% | 100.00% | |
Segment assets | $ 4,388,442 | $ 3,476,800 | $ 4,388,442 | $ 3,476,800 | $ 4,449,720 |
Assets under management, administration, supervision and brokerage | 13,913,300 | 13,913,300 | $ 12,968,700 | ||
Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 36,726 | 29,437 | 111,479 | 84,804 | |
Provision for loan and lease losses | 664 | 1,333 | 4,831 | 1,541 | |
Net interest income after provision for loan and lease losses | 36,062 | 28,104 | 106,648 | 83,263 | |
Fees for wealth management services | 0 | 0 | 0 | 0 | |
Insurance commissions | 0 | 0 | 0 | 0 | |
Capital markets revenue | 710 | 843 | 3,481 | 1,796 | |
Service charges on deposit accounts | 726 | 676 | 2,191 | 1,953 | |
Loan servicing and other fees | 559 | 548 | 1,720 | 1,570 | |
Net gain on sale of loans | 631 | 799 | 1,677 | 1,948 | |
Net gain on sale of investment securities available for sale | 7 | 73 | |||
Net gain on sale of OREO | 5 | 0 | 292 | (12) | |
Other operating income | 3,498 | 1,581 | 11,709 | 4,290 | |
Total noninterest income | 6,129 | 4,519 | 21,077 | 11,618 | |
Salaries and wages | 11,737 | 9,130 | 34,077 | 27,044 | |
Employee benefits | 2,394 | 1,587 | 6,992 | 4,565 | |
Occupancy and bank premises | 2,224 | 2,049 | 7,035 | 6,025 | |
Amortization of intangible assets | 386 | 197 | 1,169 | 588 | |
Professional fees | 889 | 681 | 2,497 | 2,318 | |
Other operating expenses | 7,770 | 6,970 | 29,076 | 21,200 | |
Total noninterest expenses | 25,400 | 20,614 | 80,846 | 61,740 | |
Segment profit | 16,791 | 12,009 | 46,879 | 33,141 | |
Intersegment (revenues) expenses | (186) | (112) | (485) | (336) | |
Pre-tax segment profit after eliminations | $ 16,605 | $ 11,897 | $ 46,394 | $ 32,805 | |
% of segment pre-tax profit after eliminations | 80.00% | 76.70% | 78.50% | 75.40% | |
Segment assets | $ 4,335,800 | $ 3,424,800 | $ 4,335,800 | $ 3,424,800 | |
Wealth Management | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 3 | 1 | 5 | 2 | |
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for loan and lease losses | 3 | 1 | 5 | 2 | |
Fees for wealth management services | 10,343 | 9,651 | 31,309 | 28,761 | |
Insurance commissions | 1,754 | 1,373 | 5,349 | 3,079 | |
Capital markets revenue | 0 | 0 | 0 | 0 | |
Service charges on deposit accounts | 0 | 0 | 0 | 0 | |
Loan servicing and other fees | 0 | 0 | 0 | 0 | |
Net gain on sale of loans | 0 | 0 | 0 | 0 | |
Net gain on sale of investment securities available for sale | 0 | 0 | |||
Net gain on sale of OREO | 0 | 0 | 0 | 0 | |
Other operating income | 48 | 41 | 150 | 138 | |
Total noninterest income | 12,145 | 11,065 | 36,808 | 31,978 | |
Salaries and wages | 4,791 | 4,472 | 14,673 | 12,588 | |
Employee benefits | 962 | 973 | 2,949 | 2,888 | |
Occupancy and bank premises | 493 | 436 | 1,429 | 1,233 | |
Amortization of intangible assets | 505 | 480 | 1,490 | 1,469 | |
Professional fees | 108 | 58 | 180 | 181 | |
Other operating expenses | 1,333 | 1,151 | 3,891 | 3,240 | |
Total noninterest expenses | 8,192 | 7,570 | 24,612 | 21,599 | |
Segment profit | 3,956 | 3,496 | 12,201 | 10,381 | |
Intersegment (revenues) expenses | 186 | 112 | 485 | 336 | |
Pre-tax segment profit after eliminations | $ 4,142 | $ 3,608 | $ 12,686 | $ 10,717 | |
% of segment pre-tax profit after eliminations | 20.00% | 23.30% | 21.50% | 24.60% | |
Segment assets | $ 52,600 | $ 52,000 | $ 52,600 | $ 52,000 |