Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | WSFS | |
Entity Registrant Name | WSFS FINANCIAL CORP | |
Entity Central Index Key | 828,944 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 31,452,055 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest income: | ||
Interest and fees on loans | $ 54,681 | $ 44,562 |
Interest on mortgage-backed securities | 4,395 | 3,894 |
Interest and dividends on investment securities: | ||
Taxable | 117 | 77 |
Tax-exempt | 1,132 | 1,143 |
Other interest income | 501 | 370 |
Total interest income | 60,826 | 50,046 |
Interest expense: | ||
Interest on deposits | 3,075 | 2,118 |
Interest on senior debt | 2,121 | 942 |
Interest on Federal Home Loan Bank advances | 1,858 | 1,048 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 201 | 182 |
Interest on trust preferred borrowings | 446 | 371 |
Interest on other borrowings | 22 | 29 |
Total interest expense | 7,723 | 4,690 |
Net interest income | 53,103 | 45,356 |
Provision for loan losses | 2,162 | 780 |
Net interest income after provision for loan losses | 50,941 | 44,576 |
Noninterest income: | ||
Credit/debit card and ATM income | 8,131 | 6,901 |
Investment management and fiduciary income | 8,039 | 5,254 |
Deposit service charges | 4,397 | 4,276 |
Mortgage banking activities, net | 1,185 | 1,654 |
Securities gains, net | 320 | 305 |
Loan fee income | 549 | 477 |
Bank owned life insurance income | 275 | 231 |
Other income | 5,196 | 4,570 |
Total non interest income | 28,092 | 23,668 |
Noninterest expense: | ||
Salaries, benefits and other compensation | 28,836 | 22,876 |
Occupancy expense | 5,162 | 4,270 |
Equipment expense | 3,124 | 2,473 |
Professional fees | 1,635 | 2,403 |
Data processing and operations expenses | 1,618 | 1,542 |
Marketing expense | 624 | 664 |
Loan workout and OREO expenses | 521 | 503 |
FDIC expenses | 529 | 838 |
Corporate development expense | 338 | 569 |
Other operating expense | 9,119 | 7,659 |
Total non interest expenses | 51,506 | 43,797 |
Income before taxes | 27,527 | 24,447 |
Income tax provision | 8,590 | 8,677 |
Net income | $ 18,937 | $ 15,770 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.60 | $ 0.53 |
Diluted (in dollars per share) | $ 0.59 | $ 0.52 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 18,937 | $ 15,770 |
Net change in unrealized gains on investment securities available for sale | ||
Net unrealized gains arising during the period, net of tax expense of $779 and $6,479, respectively | 1,272 | 10,572 |
Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of $114 and $116, respectively | (206) | (189) |
Net change in unrealized gains (losses) on investment securities available-for-sale | 1,066 | 10,383 |
Net change in securities held to maturity | ||
Amortization of unrealized gain on securities reclassified to held-to-maturity, net of tax expense of $59 and $65, respectively | (101) | (103) |
Net change in unfunded pension liability | ||
Change in unfunded pension liability related to unrealized (loss) gain, prior service cost and transition obligation, net of tax (benefit) expense of ($12) and $306, respectively | (23) | 478 |
Net change in cash flow hedge | ||
Net unrealized loss arising during the period, net of tax benefit of ($69) and $0, respectively | (112) | 0 |
Total other comprehensive income | 830 | 10,758 |
Total comprehensive income | $ 19,767 | $ 26,528 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net change in Unrealized (losses) gains, tax (benefit) expense | $ 779 | $ 6,479 |
Reclassification adjustment for gains, tax expense | 114 | 116 |
Amortization of unrealized gain on securities reclassified to held-to-maturity, tax expense | 59 | 65 |
Change in unfunded pension liability related to unrealized (loss) gain, prior service cost and transition obligation, tax (benefit) expense | (12) | 306 |
Net change in cash flow hedge, tax expense | $ (69) | $ 0 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash and due from banks | $ 120,913 | $ 119,929 |
Cash in non-owned ATMs | 730,747 | 698,454 |
Interest-bearing deposits in other banks including collateral of $3,380 at March 31, 2017 and December 31, 2016 | 3,603 | 3,540 |
Total cash and cash equivalents | 855,263 | 821,923 |
Investment securities, available for sale (amortized cost of $800,612 at March 31, 2017 and $807,761 at December 31, 2016) | 789,125 | 794,543 |
Investment securities, held to maturity-at cost (fair value of $163,241 at March 31, 2017 and $163,232 at December 31, 2016) | 163,611 | 164,346 |
Loans, held for sale at fair value | 29,394 | 54,782 |
Loans, net of allowance for loan losses of $39,826 at March 31, 2017 and $39,751 at December 31, 2016 | 4,552,151 | 4,444,375 |
Bank owned life insurance | 101,700 | 101,425 |
Stock in Federal Home Loan Bank of Pittsburgh-at cost | 20,002 | 38,248 |
Other real estate owned | 3,582 | 3,591 |
Accrued interest receivable | 16,712 | 17,027 |
Premises and equipment | 49,194 | 48,871 |
Goodwill | 165,960 | 167,539 |
Intangible assets | 24,412 | 23,708 |
Other assets | 81,793 | 84,892 |
Total assets | 6,852,899 | 6,765,270 |
Deposits: | ||
Noninterest-bearing demand | 1,658,111 | 1,266,306 |
Interest-bearing demand | 932,284 | 935,333 |
Money market | 1,342,464 | 1,257,520 |
Savings | 597,186 | 547,293 |
Time | 321,325 | 332,624 |
Jumbo certificates of deposit – customer | 248,861 | 260,560 |
Total customer deposits | 5,100,231 | 4,599,636 |
Brokered deposits | 276,599 | 138,802 |
Total deposits | 5,376,830 | 4,738,438 |
Federal funds purchased and securities sold under agreements to repurchase | 135,000 | 130,000 |
Federal Home Loan Bank advances | 298,095 | 854,236 |
Trust preferred borrowings | 67,011 | 67,011 |
Senior debt | 152,177 | 152,050 |
Other borrowed funds | 48,566 | 64,150 |
Accrued interest payable | 2,931 | 1,151 |
Other liabilities | 68,288 | 70,898 |
Total liabilities | 6,148,898 | 6,077,934 |
Stockholders’ Equity: | ||
Common stock $0.01 par value, 65,000,000 shares authorized; issued 56,125,000 at March 31, 2017 and 55,995,219 at December 31, 2016 | 581 | 580 |
Capital in excess of par value | 331,371 | 329,457 |
Accumulated other comprehensive loss | (6,787) | (7,617) |
Retained earnings | 643,816 | 627,078 |
Treasury stock at cost, 24,667,145 shares at March 31, 2017 and 24,605,145 shares at December 31, 2016 | (264,980) | (262,162) |
Total stockholders’ equity | 704,001 | 687,336 |
Total liabilities and stockholders’ equity | $ 6,852,899 | $ 6,765,270 |
Consolidated Statements of Fin6
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Interest-bearing deposits in banks and other financial institutions, collateral | $ 3,380 | $ 3,380 |
Available-for-sale securities, amortized cost basis | 800,612 | 807,761 |
Held-to-maturity securities, fair value | 163,241 | 163,232 |
Allowance for loan losses | $ 39,826 | $ 39,751 |
Common stock, shares authorized (in shares) | 65,000,000 | 65,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 56,125,000 | 55,995,219 |
Treasury stock, shares (in shares) | 24,667,145 | 24,605,145 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Equity (Uaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Beginning Balance at Dec. 31, 2015 | $ 580,471 | $ 560 | $ 256,435 | $ 696 | $ 570,630 | $ (247,850) |
Beginning Balance (in shares) at Dec. 31, 2015 | 55,945,245 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 15,770 | 15,770 | ||||
Other comprehensive income | 10,758 | 10,758 | ||||
Cash dividend | (1,783) | (1,783) | ||||
Issuance of common stock including proceeds from exercise of common stock options | 660 | $ 1 | 659 | |||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 61,498 | |||||
Stock-based compensation expense | 699 | 699 | ||||
Repurchase of common stock | (8,995) | (8,995) | ||||
Ending Balance at Mar. 31, 2016 | 597,580 | $ 561 | 257,793 | 11,454 | 584,617 | (256,845) |
Ending Balance (in shares) at Mar. 31, 2016 | 56,006,743 | |||||
Beginning Balance at Dec. 31, 2016 | 687,336 | $ 580 | 329,457 | (7,617) | 627,078 | (262,162) |
Beginning Balance (in shares) at Dec. 31, 2016 | 55,995,219 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 18,937 | 18,937 | ||||
Other comprehensive income | 830 | 830 | ||||
Cash dividend | (2,199) | (2,199) | ||||
Issuance of common stock including proceeds from exercise of common stock options | 1,094 | $ 1 | 1,093 | |||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 129,781 | |||||
Stock-based compensation expense | 821 | 821 | ||||
Repurchase of common stock | (2,818) | (2,818) | ||||
Ending Balance at Mar. 31, 2017 | $ 704,001 | $ 581 | $ 331,371 | $ (6,787) | $ 643,816 | $ (264,980) |
Ending Balance (in shares) at Mar. 31, 2017 | 56,125,000 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders Equity (Uaudited) Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash dividend (in dollars per share) | $ 0.7 | $ 0.6 |
Common Stock | ||
Repurchase of common stock (in shares) | 62,000 | 301,871 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net Income | $ 18,937 | $ 15,770 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 2,162 | 780 |
Depreciation of premises and equipment, net | 2,190 | 1,903 |
Amortization of fees and discounts, net | 4,742 | 3,895 |
Amortization of intangible assets | 857 | 549 |
Decrease in accrued interest receivable | 315 | 48 |
Increase in other assets | (1,838) | (3,534) |
Origination of loans held for sale | (85,833) | (72,474) |
Proceeds from sales of loans held for sale | 105,436 | 77,834 |
Gain on mortgage banking activities, net | (1,185) | (1,654) |
Gain on sale of securities, net | (320) | (305) |
Stock-based compensation expense | 821 | 758 |
Increase in accrued interest payable | 1,780 | 539 |
Decrease in other liabilities | (1,537) | (7,930) |
Loss on sale of other real estate owned and valuation adjustments, net | 39 | 76 |
Deferred income tax expense | 3,190 | 3,293 |
Increase in value of bank owned life insurance | (275) | (231) |
Increase in capitalized interest, net | (1,316) | (1,193) |
Net cash provided by operating activities | 48,165 | 18,124 |
Investing activities: | ||
Purchases of investment securities held to maturity | 0 | (3,329) |
Repayments of investment securities held to maturity | 250 | 1,335 |
Maturities and calls of investment securities held to maturity | 0 | 400 |
Sale of investment securities available for sale | 263,015 | 38,932 |
Purchases of investment securities available for sale | (375,687) | (91,963) |
Repayments of investment securities available for sale | 119,313 | 15,463 |
Net increase in loans | (106,933) | (30,010) |
Redemptions of stock of Federal Home Loan Bank of Pittsburgh | (54,990) | (20,037) |
Redemptions of stock of Federal Home Loan Bank of Pittsburgh | 73,236 | 19,845 |
Sales of other real estate owned | 1,707 | 1,442 |
Investment in premises and equipment | (2,480) | (1,234) |
Net cash used for investing activities | (82,569) | (69,156) |
Financing activities: | ||
Net increase in demand and saving deposits | 508,429 | 35,907 |
Decrease in time deposits | (22,998) | (26,072) |
Increase in brokered deposits | 137,797 | 43,353 |
Decrease in loan payable | (420) | (407) |
Receipts from FHLB advances | 42,415,835 | 28,349,212 |
Repayments of FHLB advances | (42,971,976) | (28,310,900) |
Receipts from federal funds purchased and securities sold under agreement to repurchase | 6,688,000 | 8,710,770 |
Repayments of federal funds purchased and securities sold under agreement to repurchase | (6,683,000) | (8,711,445) |
Dividends paid | (2,199) | (1,783) |
Issuance of common stock and exercise of common stock options | 1,094 | 241 |
Purchase of treasury stock | (2,818) | (8,995) |
Net cash provided by financing activities | 67,744 | 79,881 |
Increase in cash and cash equivalents | 33,340 | 28,849 |
Cash and cash equivalents at beginning of period | 821,923 | 561,179 |
Cash and cash equivalents at end of period | 855,263 | 590,028 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for interest during the period | 5,943 | 4,151 |
Cash (received) paid for income taxes, net | (1,199) | 9,554 |
Loans transferred to other real estate owned | 1,737 | 417 |
Loans transferred to portfolio from held-for-sale at fair value | 6,470 | 1,510 |
Net change in accumulated other comprehensive income | 830 | 10,758 |
Non-cash goodwill adjustments, net | $ (1,579) | $ (358) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION General Our unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (the Company, our Company, we, our or us), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital) and Cypress Capital Management, LLC (Cypress). We also have one unconsolidated subsidiary, WSFS Capital Trust III (the Capital Trust). WSFS Bank has three wholly-owned subsidiaries: WSFS Wealth Investments, 1832 Holdings, Inc. and Monarch Entity Services LLC (Monarch). Overview Founded in 1832, the Bank is one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). We provide residential and commercial real estate, commercial and consumer lending services, as well as retail deposit and cash management services. Lending activities are funded primarily with customer deposits and borrowings. In addition, we offer a variety of wealth management and trust services to personal and corporate customers. The Federal Deposit Insurance Corporation (FDIC) insures our customers’ deposits to their legal maximums. We serve our customers primarily from our 77 offices located in Delaware ( 46 ), Pennsylvania ( 29 ), Virginia ( 1 ) and Nevada ( 1 ) and through our website at www.wsfsbank.com . Information on our website is not incorporated by reference into this quarterly report. In preparing the unaudited Consolidated Financial Statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for loan losses and reserves for lending related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, other-than-temporary impairment (OTTI), and the income tax valuation allowance. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of the allowance and lending related commitments as well as increased post-retirement benefits expense. Our accounting and reporting policies conform to Generally Accepted Accounting Principles (GAAP) in the U.S., prevailing practices within the banking industry for interim financial information and Rule 10-01 of SEC Regulation S-X (Rule 10-01). Rule 10-01 does not require us to include all information and notes that would be required in audited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any future quarters or for the year ending December 31, 2017 . These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our 2016 Annual Report on Form 10-K that was filed with the SEC on March 1, 2017 and is available at www.sec.gov or on our website at http://investors.wsfsbank.com/financials.cfm. Whenever necessary, reclassifications have been made to the prior period Consolidated Financial Statements to conform to the current period’s presentation. All significant intercompany transactions were eliminated in consolidation. The significant accounting policies used in preparation of our Consolidated Financial Statements are disclosed in our 2016 Annual Report on Form 10-K. There have not been any material changes in our significant accounting policies from those disclosed in our 2016 Annual Report on Form 10-K. Senior Debt On June 13, 2016, the Company issued $100.0 million of senior unsecured fixed-to-floating rate notes. The senior unsecured notes mature on June 15, 2026 and have a fixed coupon rate of 4.50% from issuance until June 15, 2021 and a variable coupon rate of three month LIBOR plus 3.30% from June 15, 2021 until maturity. The senior unsecured notes may be redeemed beginning on June 15, 2021 at 100% of principal plus accrued and unpaid interest. The net proceeds from the issuance of the notes are being used for general corporate purposes. In 2012, we issued and sold $55.0 million in aggregate principal amount of 6.25% senior notes due 2019 (the “2012 senior debt”). The 2012 senior debt is unsecured and ranks equally with all of our other present and future unsecured unsubordinated obligations. The 2012 senior debt is effectively subordinated to our secured indebtedness and structurally subordinated to the indebtedness of our subsidiaries. At our option, the 2012 senior debt is callable, in whole or in part, on September 1, 2017, or on any scheduled interest payment date thereafter, at a price equal to the outstanding principal amount to be redeemed plus accrued and unpaid interest. The 2012 senior debt matures on September 1, 2019. Acquisitions in 2016 On August 12, 2016, we completed the acquisition of Penn Liberty Financial Corp. (Penn Liberty), a community bank headquartered in Wayne, Pennsylvania. We expect this acquisition to build our market share, deepen our presence in the southeastern Pennsylvania market, and enhance our customer base. The results of Penn Liberty’s operations are included in our Consolidated Financial Statements since the date of the acquisition. See Note 2 – Business Combinations for further information. During the third and fourth quarters of 2016, respectively, we acquired the assets of Powdermill Financial Solutions LLC, a multi-family office serving an affluent clientele in the local community and throughout the U.S., and West Capital Management, Inc., an independent, fee-only wealth management firm providing fully customized solutions tailored to the unique needs of institutions and high net worth individuals which operates under a multi-family office philosophy. These acquisitions align with our strategic plan to expand our wealth management offerings and to diversify our fee-income generating businesses. Correction of Prior Period Balances The Consolidated Statements of Income for the quarter ended March 31, 2016 has been revised to correct an immaterial error in Noninterest income - Other revenue and Noninterest expense - Other operating expense related to revenue earned for cash servicing fees. As a result, the Consolidated Statement of Income has been revised to reflect these changes, as follows: Three months ended March 31, 2016 As originally reported Adjustments As revised Noninterest income - Other revenue $ 3,972 $ 598 $ 4,570 Noninterest expense - Other operating expense 7,061 598 7,659 The above revision had no effect on earnings per share or retained earnings. Periods not presented herein will be revised, as applicable, as they are included in future filings. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2017 In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-05: Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , which amends Accounting Standards Codification (ASC) Topic 815: Derivatives and Hedging. This new guidance clarifies that the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, cause a hedge accounting relationship to be discontinued because it does not represent a termination of the original derivative instrument or a change in the critical terms of the hedge relationship. This new guidance is effective for annual reporting periods beginning after December 15, 2016 and may be adopted prospectively or retroactively. Early adoption is permitted, including adoption in an interim period. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact to our Consolidated Financial statements, as the standard is applied on a prospective basis. In March 2016, the FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments, Derivatives and Hedging (Topic 815). ASU 2016-06 clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. The standard is effective for public business entities in interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued, but would be retroactively applied to the beginning of the year that includes the interim period. The standard requires a modified retrospective transition approach, with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. For instruments that are eligible for the fair value option, an entity has a one-time option to irrevocably elect to measure the debt instrument affected by the standard in its entirety at fair value with changes in fair value recognized in earnings. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact on our Consolidated Statements of Income or Consolidated Statements of Financial Condition. In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, Investments - Equity Method and Joint Ventures (Topic 323). ASU 2016-07 eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. The standard is effective for all entities in annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied prospectively to changes in ownership (or influence) after the adoption date. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact to our Consolidated Financial statements, as the standard is applied on a prospective basis. Accounting Guidance Pending Adoption at March 31, 2017 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU No. 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers using a five-step model that requires entities to exercise judgment when considering the terms of the contracts. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This amendment defers the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU 2016- 08, Principal versus Agent Considerations (Reporting Gross versus Net) , which amends the principal versus agent guidance and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In addition, the FASB issued ASU Nos. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers and 2016-12, Narrow-Scope Improvements and Practical Expedients , both of which provide additional clarification of certain provisions in Topic 606. These Accounting Standards Codification (“ASC”) updates are effective for public business entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or retrospectively with the cumulative effect transition method. The Company is currently in the process of evaluating all revenue streams, accounting policies, practices and reporting to identify and understand any impact on the Company’s Consolidated Financial Statements. Our preliminary evaluation suggests that adoption of this guidance is not expected to have a material effect on our Consolidated Financial Statements. The Company anticipates completing our assessment in the second half of 2017. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This amendment requires that equity investments be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. For financial liabilities that are measured at fair value, the amendment requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument specific credit risk. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Entities may apply this guidance on a prospective or retrospective basis. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a 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 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. Adoption using the modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of adopting ASU 2016-02 on its Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 represents the Emerging Issues Task Force’s (“the EITF”) final consensus on eight issues related to the classification of cash payments and receipts in the statement of cash flows for a number of common transactions. The consensus also clarifies when identifiable cash flows should be separated versus classified based on their predominant source or use. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 provides a new, two-step framework for determining whether a transaction is accounted for as an acquisition (or disposal) of assets or a business. The first step is evaluating whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the transaction is not considered a business. Also, in order to be considered a business, the transaction would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted for transactions that have not been reported in financial statements that have been issued or been made available for issuance. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the measurement of goodwill impairment by removing the hypothetical purchase price allocation (“Step 2”). The new guidance requires an impairment of goodwill be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, up to the amount of goodwill recorded. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. In February 2017, the FASB issued ASU No. 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 provides clarification of the scope of ASC 610-20. Specifically, the new guidance clarifies that ASC 610-20 applies to nonfinancial assets which do not meet the definition of a business or not-for-profit activity. Further, the new guidance clarifies that a financial asset is within the scope of ASC 610-20 if it meets the definition of an in-substance nonfinancial asset which is defined as a financial asset promised to a counterparty in a contract where substantially all of the assets promised are nonfinancial. Finally, the new guidance clarifies that each distinct nonfinancial asset and in-substance nonfinancial asset should be derecognized when the counterparty obtains control of it. The guidance is effective for public entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of adopting ASU 2017-05 on its Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance requires that the service cost component of net periodic pension cost be disclosed with other compensation costs in the income statement. For all other cost components, an entity must either separately disclose the other cost components in separate line item(s) outside a subtotal of income from operations in the income statement or disclose the line item(s) used to present the other cost components in the income statement. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities . The new guidance requires the amortization period for certain non-contingent callable debt securities held at a premium to end at the earliest call date of the debt security. If the call option is not exercised at the earliest call date, the guidance requires the debt security's effective yield to be reset based on the contractual payment terms of the debt security. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. Use of the modified retrospective method, with a cumulative-effect adjustment to retained earnings, is required. In the period of adoption, a change in accounting principle disclosure is required. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS Penn Liberty Financial Corporation On August 12, 2016, we completed the acquisition of Penn Liberty. The acquisition of Penn Liberty was accounted for as a business combination using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration transferred were recorded at their estimated fair values as of the acquisition date. The fair values are preliminary estimates and are subject to adjustment during the one-year measurement period after the acquisition. In connection with the merger, the consideration transferred and the fair value of identifiable assets acquired and liabilities assumed, including remeasurement adjustments subsequent to the date of acquisition, are summarized in the following table: (Dollars in thousands) Fair Value Consideration Transferred: Common shares issued (1,806,748) $ 68,352 Cash paid to Penn Liberty stock and option holders 40,549 Value of consideration 108,901 Assets acquired: Cash and due from banks 102,301 Investment securities 627 Loans 483,482 Premises and equipment 6,817 Deferred income taxes 6,542 Bank owned life insurance 8,666 Core deposit intangible 2,882 Other real estate owned 996 Other assets 12,092 Total assets 624,405 Liabilities assumed: Deposits 568,706 Other borrowings 10,000 Other liabilities 3,977 Total liabilities 582,683 Net assets acquired: 41,722 Goodwill resulting from acquisition of Penn Liberty $ 67,179 The following table details the change to goodwill recorded subsequent to acquisition: (Dollars in thousands) Fair Value Goodwill resulting from the acquisition of Penn Liberty reported as of December 31, 2016 $ 68,814 Effects of adjustments to: Deferred income taxes 880 Other assets (1,447 ) Other liabilities (1,068 ) Adjusted goodwill resulting from the acquisition of Penn Liberty as of March 31, 2017 $ 67,179 In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating the cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table shows the computation of basic and diluted earnings per share: Three Months Ended March 31, (Dollars and Shares in thousands, except per share data) 2017 2016 Numerator: Net income $ 18,937 $ 15,770 Denominator: Weighted average basic shares 31,407 29,671 Dilutive potential common shares 942 558 Weighted average fully diluted shares 32,349 30,229 Earnings per share: Basic $ 0.60 $ 0.53 Diluted $ 0.59 $ 0.52 Outstanding common stock equivalents having no dilutive effect 22 42 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The following tables detail the amortized cost and the estimated fair value of our available-for-sale and held-to-maturity investment securities. None of our investment securities are classified as trading. (Dollars in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Available-for-Sale Securities: March 31, 2017 GSE $ 33,051 $ 2 $ 72 $ 32,981 CMO 280,576 699 3,564 277,711 FNMA MBS 393,356 984 8,289 386,051 FHLMC MBS 65,228 204 1,261 64,171 GNMA MBS 27,767 275 445 27,597 Other investments 634 — 20 614 $ 800,612 $ 2,164 $ 13,651 $ 789,125 December 31, 2016 GSE $ 35,061 $ 9 $ 60 $ 35,010 CMO 264,607 566 3,957 261,216 FNMA MBS 414,218 950 9,404 405,764 FHLMC MBS 64,709 135 1,330 63,514 GNMA MBS 28,540 303 427 28,416 Other investments 626 — 3 623 $ 807,761 $ 1,963 $ 15,181 $ 794,543 (Dollars in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Held-to-Maturity Securities (1) March 31, 2017 State and political subdivisions $ 163,611 $ 646 $ 1,016 $ 163,241 December 31, 2016 State and political subdivisions $ 164,346 $ 271 $ 1,385 $ 163,232 (1) Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $2.1 million and $2.2 million at March 31, 2017 and December 31, 2016 , respectively, related to securities transferred, which are offset in Accumulated Other Comprehensive Income, net of tax. The scheduled maturities of investment securities available for sale and held to maturity at March 31, 2017 and December 31, 2016 are presented in the table below: Available for Sale (1) (2) Amortized Fair (Dollars in thousands) Cost Value March 31, 2017 Within one year $ 20,012 $ 19,997 After one year but within five years 18,059 17,981 After five years but within ten years 210,595 205,242 After ten years 551,312 545,291 $ 799,978 $ 788,511 December 31, 2016 Within one year $ 16,009 $ 16,017 After one year but within five years 19,052 18,992 After five years but within ten years 276,635 270,300 After ten years 495,439 488,611 $ 807,135 $ 793,920 Held to Maturity (2) Amortized Fair (Dollars in thousands) Cost Value March 31, 2017 Within one year $ — $ — After one year but within five years 5,940 5,975 After five years but within ten years 10,482 10,511 After ten years 147,189 146,755 $ 163,611 $ 163,241 December 31, 2016 Within one year $ — $ — After one year but within five years 6,168 6,162 After five years but within ten years 8,882 8,870 After ten years 149,296 148,200 $ 164,346 $ 163,232 (1) Included in the investment portfolio, but not in the table above, is a mutual fund with an amortized cost and fair value of $0.6 million as of March 31, 2017 and December 31, 2016 which has no stated maturity. (2) Actual maturities could differ Mortgage-backed securities (MBS) have expected maturities that differ from their contractual maturities. These differences arise because borrowers have the right to call or prepay obligations with or without a prepayment penalty. Investment securities with fair market values aggregating $615.8 million and $562.5 million were pledged as collateral for retail customer repurchase agreements, municipal deposits, and other obligations as of March 31, 2017 and December 31, 2016 , respectively. During the first three months of 2017 , we sold $263.0 million of investment securities categorized as available for sale, resulting in realized gains of $0.3 million and one security with an immaterial realized loss. During the first three months of 2016, we sold $38.9 million of investment securities categorized as available for sale, resulting in realized gains of $0.3 million and no realized losses. The cost basis of all investment securities sales is based on the specific identification method. As of March 31, 2017 and December 31, 2016 , our investment securities portfolio had remaining unamortized premiums of $16.3 million and $18.0 million , respectively, and unaccreted discounts of $0.6 million and $0.4 million , respectively. For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at March 31, 2017 . Duration of Unrealized Loss Position Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Available-for-sale securities: GSE $ 25,981 $ 72 $ — $ — $ 25,981 $ 72 CMO 161,225 3,469 4,239 95 165,464 3,564 FNMA MBS 276,175 8,289 — — 276,175 8,289 FHLMC MBS 41,765 1,261 — — 41,765 1,261 GNMA MBS 16,236 445 — — 16,236 445 Other investments 634 20 — — 634 20 Total temporarily impaired investments 522,016 13,556 4,239 95 526,255 13,651 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Held-to-maturity securities: State and political subdivisions $ 84,121 $ 969 $ 1,960 $ 47 $ 86,081 $ 1,016 Total temporarily impaired investments $ 84,121 $ 969 $ 1,960 $ 47 $ 86,081 $ 1,016 For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at December 31, 2016 . Duration of Unrealized Loss Position Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Available-for-sale securities: GSE $ 21,996 $ 60 $ — $ — $ 21,996 $ 60 CMO 160,572 3,867 4,654 90 165,226 3,957 FNMA MBS 50,878 1,330 — — 50,878 1,330 FHLMC MBS 300,403 9,404 — — 300,403 9,404 GNMA MBS 16,480 427 — — 16,480 427 Other investments 623 3 — — 623 3 Total temporarily impaired investments $ 550,952 $ 15,091 $ 4,654 $ 90 $ 555,606 $ 15,181 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Held-to-maturity securities: State and political subdivisions $ 112,642 $ 1,374 $ 695 $ 11 $ 113,337 $ 1,385 Total temporarily impaired investments $ 112,642 $ 1,374 $ 695 $ 11 $ 113,337 $ 1,385 At March 31, 2017 , we owned investment securities totaling $612.3 million for which the amortized cost basis exceeded fair value. Total unrealized losses on these securities were $14.7 million at March 31, 2017 . The temporary impairment is the result of changes in market interest rates subsequent to the purchase of the securities. Our investment portfolio is reviewed each quarter for indications of OTTI. This review includes analyzing the length of time and the extent to which the fair value has been lower than the amortized cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and our intent and ability to hold the investment for a period of time sufficient to allow for full recovery of the unrealized loss. We evaluate our intent and ability to hold securities based upon our investment strategy for the particular type of security and our cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not have the intent to sell, nor is it more likely-than-not we will be required to sell these securities before we are able to recover the amortized cost basis. All securities, with the exception of one having a fair value of $1.0 million at March 31, 2017 , were AA-rated or better at the time of purchase and remained investment grade at March 31, 2017 . All securities were evaluated for OTTI at March 31, 2017 and December 31, 2016 . The result of this evaluation showed no OTTI as of March 31, 2017 or December 31, 2016 . The estimated weighted average duration of MBS was 5.34 years at March 31, 2017 . |
Loans
Loans | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Loans | LOANS The following table shows our loan portfolio by category: (Dollars in thousands) March 31, 2017 December 31, 2016 Commercial and industrial $ 1,339,867 $ 1,287,731 Owner-occupied commercial 1,092,292 1,078,162 Commercial mortgages 1,165,556 1,163,554 Construction 255,760 222,712 Residential (1) 281,760 289,611 Consumer 464,898 450,029 4,600,133 4,491,799 Less: Deferred fees, net 8,156 7,673 Allowance for loan losses 39,826 39,751 Net loans $ 4,552,151 $ 4,444,375 (1) Includes Reverse Mortgages, at fair value of $22.5 million at March 31, 2017 and $22.6 million at December 31, 2016 . The following table shows the outstanding principal balance and carrying amounts for acquired credit impaired loans for which the Company applies ASC 310-30 as of the dates indicated: (Dollars in thousands) March 31, 2017 December 31, 2016 Outstanding principal balance $ 38,418 $ 41,574 Carrying amount 30,783 33,104 Allowance for loan losses 464 510 The following table presents the changes in accretable yield on the acquired credit impaired loans for the three months ended March 31, 2017 : (Dollars in thousands) Three months ended March 31, 2017 Balance at beginning of period $ 5,150 Accretion (792 ) Reclassification from nonaccretable difference (144 ) Additions/adjustments (112 ) Disposals — $ 4,102 |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality Information | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Credit Quality Information | ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION Allowance for Loan Losses We maintain an allowance for loan losses which represents our best estimate of probable losses within our loan portfolio. As losses are realized, they are charged to this allowance. We established our allowance in accordance with guidance provided in the SEC’s Staff Accounting Bulletin 102 (SAB 102), Selected Loan Loss Allowance Methodology and Documentation Issues, Accounting Standard Codification ("ASC") Contingencies (ASC 450) and Receivables (ASC 310). When we have reason to believe it is probable that we will not be able to collect all contractually due amounts of principal and interest, loans are evaluated for impairment on an individual basis and a specific allocation of the allowance is assigned in accordance with ASC 310-10. We also maintain an allowance for loan losses on acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining credit discount recorded at the time of acquisition. The determination of the allowance for loan losses requires significant judgment reflecting our best estimate of impairment related to specifically identified impaired loans as well as probable loan losses in the remaining loan portfolio. Our evaluation is based on a continuing review of these portfolios. The following are included in our allowance for loan losses: • Specific reserves for impaired loans • An allowance for each pool of homogenous loans based on historical loss experience • Adjustments for qualitative and environmental factors allocated to pools of homogenous loans When it is probable that the Bank will be unable to collect all amounts due (interest and principal) in accordance with the contractual terms of the loan agreement, it assigns a specific reserve to that loan, if necessary. Unless loans are well-secured and collection is imminent, loans greater than 90 days past due are deemed impaired and their respective reserves are generally charged-off once the loss has been confirmed. Estimated specific reserves are based on collateral values, estimates of future cash flows or market valuations. We charge loans off when they are deemed to be uncollectible. During the three months ended March 31, 2017 and 2016 , net charge-offs totaled $2.1 million or 0.19% of average loans annualized, and $0.3 million , or 0.03% of average loans annualized, respectively. Allowances for pooled homogeneous loans, that are not deemed impaired, are based on historical net loss experience. Estimated losses for pooled portfolios are determined differently for commercial loan pools and retail loan pools. Commercial loans are pooled as follows: commercial, owner-occupied commercial, commercial mortgages and construction. Each pool is further segmented by internally assessed risk ratings. Loan losses for commercial loans are estimated by determining the probability of default and expected loss severity upon default. Probability of default is calculated based on the historical rate of migration to impaired status during the last 25 quarters. During the three months ended March 31, 2017 , we increased the look-back period to 25 quarters from the 24 quarters used at December 31, 2016 . This increase in the look-back period allows us to continue to anchor to the fourth quarter of 2010 to ensure that the core reserves calculated by the ALLL model are adequately considering the losses within a full credit cycle. Loss severity upon default is calculated as the actual loan losses (net of recoveries) on impaired loans in their respective pool during the same time frame. Retail loans are pooled into the following segments: residential mortgage, consumer secured and consumer unsecured loans. Pooled reserves for retail loans are calculated based solely on average net loss rates over the same 25 quarter look-back period. Qualitative adjustment factors consider various current internal and external conditions which are allocated among loan types and take into consideration: • Current underwriting policies, staff, and portfolio mix, • Internal trends of delinquency, nonaccrual and criticized loans by segment, • Risk rating accuracy, control and regulatory assessments/environment, • General economic conditions - locally and nationally, • Market trends impacting collateral values, • The competitive environment, as it could impact loan structure and underwriting, and • Valuation complexity by segment. The above factors are based on their relative standing compared to the period in which historic losses are used in core reserve estimates and current directional trends. Qualitative factors in our model can add to or subtract from core reserves. The allowance methodology uses a loss emergence period (LEP), which is the period of time between an event that triggers the probability of a loss and the confirmation of the loss. We estimate the commercial LEP to be approximately 8 quarters as of March 31, 2017 . Our residential mortgage and consumer LEP remained at 4 quarters as of March 31, 2017 . We evaluate LEP quarterly for reasonableness and complete a detailed historical analysis of our LEP annually for our commercial portfolio and review the current 4 quarter LEP for the retail portfolio to determine the continued reasonableness of this assumption. In prior periods, we had a component of the allowance for model estimation and complexity risk reserve. During the second quarter of 2016 as a result of continued improvement in the model and normal review of the factors, we removed the model estimation and complexity risk reserve from our calculation of the allowance of loan losses. Our loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review our loan ratings and allowance for loan losses and the Bank’s internal loan review department performs loan reviews. The following tables provide the activity of our allowance for loan losses and loan balances for the three months ended March 31, 2017 : Three months ended March 31, 2017 (Dollars in thousands) Commercial Owner-occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Total Allowance for loan losses Beginning balance $ 13,339 $ 6,588 $ 8,915 $ 2,838 $ 2,059 $ 6,012 $ 39,751 Charge-offs (1,255 ) (192 ) (104 ) (14 ) (11 ) (1,143 ) (2,719 ) Recoveries 84 75 46 2 120 305 632 Provision (credit) 1,949 (441 ) (518 ) 158 (114 ) 1,080 2,114 Provision for acquired loans 88 — (4 ) (23 ) — (13 ) 48 Ending balance $ 14,205 $ 6,030 $ 8,335 $ 2,961 $ 2,054 $ 6,241 $ 39,826 Period-end allowance allocated to: Loans individually evaluated for impairment $ 1,860 $ — $ 1,395 $ 500 $ 887 $ 194 $ 4,836 Loans collectively evaluated for impairment 12,165 6,015 6,763 2,397 1,144 6,042 34,526 Acquired loans evaluated for impairment 180 15 177 64 23 5 464 Ending balance $ 14,205 $ 6,030 $ 8,335 $ 2,961 $ 2,054 $ 6,241 $ 39,826 Period-end loan balances evaluated for: Loans individually evaluated for impairment (2) $ 16,767 $ 4,020 $ 9,771 $ 3,130 $ 14,280 $ 9,029 $ 56,997 Loans collectively evaluated for impairment 1,175,911 919,508 928,925 225,718 158,430 405,285 3,813,777 Acquired nonimpaired loans 141,933 156,724 216,410 24,540 85,679 50,321 675,607 Acquired impaired loans 5,256 12,040 10,450 2,372 866 263 31,247 Ending balance (3) $ 1,339,867 $ 1,092,292 $ 1,165,556 $ 255,760 $ 259,255 $ 464,898 $ 4,577,628 (1) Period-end loan balance excludes Reverse Mortgages, at fair value of $22.5 million . (2) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $17.3 million for the period ending March 31, 2017 . Accruing troubled debt restructured loans are considered impaired loans. (3) Ending loan balances do not include net deferred fees. The following table provides the activity of the allowance for loan losses and loan balances for the three months ended March 31, 2016 : Three months ended March 31, 2016 (Dollars in thousands) Commercial Owner - occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Complexity Risk (2) Total Allowance for loan losses Beginning balance $ 11,156 $ 6,670 $ 6,487 $ 3,521 $ 2,281 $ 5,964 $ 1,010 $ 37,089 Charge-offs (179 ) — (17 ) (26 ) (14 ) (631 ) — (867 ) Recoveries 110 38 79 46 22 259 — 554 Provision (credit) 484 (6 ) (37 ) 72 (20 ) 400 14 907 Provision for acquired loans (89 ) — 4 (4 ) — (38 ) — (127 ) Ending balance $ 11,482 $ 6,702 $ 6,516 $ 3,609 $ 2,269 $ 5,954 $ 1,024 $ 37,556 Period-end allowance allocated to: Loans individually evaluated for impairment $ 1,473 $ — $ — $ 211 $ 911 $ 208 $ — $ 2,803 Loans collectively evaluated for impairment 10,005 6,680 6,427 3,398 1,354 5,746 1,024 34,634 Acquired loans evaluated for impairment 4 22 89 — 4 — — 119 Ending balance $ 11,482 $ 6,702 $ 6,516 $ 3,609 $ 2,269 $ 5,954 $ 1,024 $ 37,556 Period-end loan balances: Loans individually evaluated for impairment (3) $ 5,278 $ 1,270 $ 2,678 $ 1,419 $ 15,260 $ 7,795 $ — $ 33,700 Loans collectively evaluated for impairment 957,863 839,819 893,036 194,654 161,610 336,053 — 3,383,035 Acquired nonimpaired loans 107,380 49,765 80,795 27,711 73,240 15,803 — 354,694 Acquired impaired loans 12,600 4,603 10,557 3,564 955 5 — 32,284 Ending balance (4) $ 1,083,121 $ 895,457 $ 987,066 $ 227,348 $ 251,065 $ 359,656 $ — $ 3,803,713 (1) Period-end loan balance excludes Reverse Mortgages, at fair value of $24.7 million . (2) Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology. (3) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $13.9 million for the period ending March 31, 2016 . Accruing troubled debt restructured loans are considered impaired loans. (4) Ending loan balances do not include net deferred fees. Nonaccrual and Past Due Loans Nonaccruing loans are those on which the accrual of interest has ceased. Typically, we discontinue accrual of interest on originated loans after payments become more than 90 days past due or earlier if we do not expect the full collection of principal or interest in accordance with the terms of the loan agreement. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the accretion of net deferred loan fees and amortization of net deferred loan costs is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on our assessment of the ultimate collectability of principal and interest. Loans greater than 90 days past due and still accruing are defined as loans contractually past due 90 days or more as to principal or interest payments, but which remain in accrual status because they are considered well secured and are in the process of collection. The following tables show our nonaccrual and past due loans at the dates indicated: March 31, 2017 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Than 90 Days Past Due and Still Accruing Total Past Due And Still Accruing Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial $ 783 $ 467 $ — $ 1,250 $ 1,316,841 $ 5,256 $ 16,520 $ 1,339,867 Owner-occupied commercial 341 500 — 841 1,075,391 12,040 4,020 1,092,292 Commercial mortgages 451 — 343 794 1,144,617 10,450 9,695 1,165,556 Construction 37 — 466 503 252,885 2,372 — 255,760 Residential (1) 2,020 119 850 2,989 250,443 866 4,957 259,255 Consumer 374 612 106 1,092 459,057 263 4,486 464,898 Total (2) $ 4,006 $ 1,698 $ 1,765 $ 7,469 $ 4,499,234 $ 31,247 $ 39,678 $ 4,577,628 % of Total Loans 0.08 % 0.04 % 0.04 % 0.16 % 98.29 % 0.68 % 0.87 % 100 % (1) Residential accruing current balances excludes Reverse Mortgages at fair value of $22.5 million . (2) The balances above include a total of $675.6 million of acquired nonimpaired loans. December 31, 2016 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Than 90 Days Past Due and Still Accruing Total Past Due And Still Accruing Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial $ 1,507 $ 278 $ — $ 1,785 $ 1,277,748 $ 6,183 $ 2,015 $ 1,287,731 Owner-occupied commercial 116 540 — 656 1,063,306 12,122 2,078 1,078,162 Commercial mortgages 167 — — 167 1,143,180 10,386 9,821 1,163,554 Construction 132 — — 132 218,886 3,694 — 222,712 Residential (1) 3,176 638 153 3,967 257,234 860 4,967 267,028 Consumer 392 346 285 1,023 444,642 369 3,995 450,029 Total (2) $ 5,490 $ 1,802 $ 438 $ 7,730 $ 4,404,996 $ 33,614 $ 22,876 $ 4,469,216 % of Total Loans 0.12 % 0.04 % 0.01 % 0.17 % 98.56 % 0.75 % 0.51 % 100 % (1) Residential accruing current balances excludes Reverse Mortgages, at fair value of $22.6 million . (2) The balances above include a total of $724.1 million of acquired nonimpaired loans. Impaired Loans Loans for which it is probable we will not collect all principal and interest due according to their contractual terms, which is assessed based on the credit characteristics of the loan and/or payment status, are measured for impairment in accordance with the provisions of SAB 102 and FASB ASC 310, Receivables (ASC 310). The amount of impairment is required to be measured using one of three methods: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the fair value of collateral, if the loan is collateral dependent or (3) the loan’s observable market price. If the measure of the impaired loan is less than the recorded investment in the loan, a related allowance is allocated for the impairment. The following tables provide an analysis of our impaired loans at March 31, 2017 and December 31, 2016 : March 31, 2017 (Dollars in thousands) Ending Loan Balances Loans with No Related Reserve (1) Loans with Related Reserve Related Reserve Contractual Principal Balances Average Loan Balances Commercial $ 18,550 $ 2,598 $ 15,952 $ 2,040 $ 20,197 $ 7,535 Owner-occupied commercial 6,210 4,020 2,190 15 6,372 4,155 Commercial mortgages 14,478 4,220 10,258 1,572 19,906 9,288 Construction 4,435 1,117 3,318 564 4,546 2,979 Residential 15,000 8,056 6,944 910 17,904 14,941 Consumer 9,070 7,526 1,544 199 11,578 8,191 Total (2) $ 67,743 $ 27,537 $ 40,206 $ 5,300 $ 80,503 $ 47,089 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $10.7 million in the ending loan balance and $11.8 million in the contractual principal balance. December 31, 2016 (Dollars in thousands) Ending Loan Balances Loans with No Related (1) Loans with Related Reserve Related Reserve Contractual Principal Balances Average Loan Balances Commercial $ 4,250 $ 1,395 $ 2,855 $ 505 $ 5,572 $ 5,053 Owner-occupied commercial 4,650 2,078 2,572 15 5,129 3,339 Commercial mortgages 15,065 4,348 10,717 1,433 20,716 7,323 Construction 3,662 — 3,662 303 3,972 2,376 Residential 14,256 7,122 7,134 934 17,298 15,083 Consumer 8,021 6,561 1,460 215 11,978 7,910 Total (2) $ 49,904 $ 21,504 $ 28,400 $ 3,405 $ 64,665 $ 41,084 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $12.8 million in the ending loan balance and $15.0 million in the contractual principal balance. Interest income of $0.3 million and $0.2 million was recognized on impaired loans during the three months ended March 31, 2017 and March 31, 2016 , respectively. As of March 31, 2017 , there were 39 residential loans and 7 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $4.9 million and $2.2 million , respectively. As of December 31, 2016 , there were 29 residential loans and 7 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $3.7 million and $3.6 million , respectively. Reserves on Acquired Nonimpaired Loans In accordance with FASB ASC 310, loans acquired by the Bank through its mergers with FNBW, Alliance and Penn Liberty are required to be reflected on the balance sheet at their fair values on the date of acquisition as opposed to their contractual values. Therefore, on the date of acquisition establishing an allowance for acquired loans is prohibited. After the acquisition date the Bank performs a separate allowance analysis on a quarterly basis to determine if an allowance for loan loss is necessary. Should the credit risk calculated exceed the purchased loan portfolio’s remaining credit mark, additional reserves will be added to the Bank’s allowance. When a purchased loan becomes impaired after its acquisition, it is evaluated as part of the Bank’s reserve analysis and a specific reserve is established to be included in the Bank’s allowance. Credit Quality Indicators Below is a description of each of our risk ratings for all commercial loans: • Pass . These borrowers currently show no indication of deterioration or potential problems and their loans are considered fully collectible • Special Mention. Borrowers have potential weaknesses that deserve management’s close attention. Borrowers in this category may be experiencing adverse operating trends, for example, declining revenues or margins, high leverage, tight liquidity, or increasing inventory without increasing sales. These adverse trends can have a potential negative effect on the borrower’s repayment capacity. These assets are not adversely classified and do not expose the Bank to significant risk that would warrant a more severe rating. Borrowers in this category may also be experiencing significant management problems, pending litigation, or other structural credit weaknesses. • Substandard . Borrowers have well-defined weaknesses that require extensive oversight by management. Borrowers in this category may exhibit one or more of the following: inadequate debt service coverage, unprofitable operations, insufficient liquidity, high leverage, and weak or inadequate capitalization. Relationships in this category are not adequately protected by the sound financial worth and paying capacity of the obligor or the collateral pledged on the loan, if any. A distinct possibility exists that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful . Borrowers have well-defined weaknesses inherent in the Substandard category with the added characteristic that the possibility of loss is extremely high. Current circumstances in the credit relationship make collection or liquidation in full highly questionable. A doubtful asset has some pending event that may strengthen the asset that defers the loss classification. Such impending events include: perfecting liens on additional collateral, obtaining collateral valuations, an acquisition or liquidation preceding, proposed merger, or refinancing plan. • Loss . Borrowers are uncollectible or of such negligible value that continuance as a bankable asset is not supportable. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical to defer writing off this asset even though partial recovery may be recognized sometime in the future. Residential and Consumer Loans The residential and consumer loan portfolios are monitored on an ongoing basis using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans that are greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss. Commercial Credit Exposure March 31, 2017 (Dollars in thousands) Commercial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) Amount % Risk Rating: Special mention $ 17,590 $ 6,849 $ 21,931 $ 1,008 $ 47,378 Substandard: Accrual 41,136 20,162 3,216 4,489 69,003 Nonaccrual 14,660 4,020 8,300 — 26,980 Doubtful 1,860 — 1,395 — 3,255 Total Special Mention and Substandard 75,246 31,031 34,842 5,497 146,616 4 % Acquired impaired 5,256 12,040 10,450 2,372 30,118 1 % Pass 1,259,365 1,049,221 1,120,264 247,891 3,676,741 95 % Total $ 1,339,867 $ 1,092,292 $ 1,165,556 $ 255,760 $ 3,853,475 100 % (1) Table includes $539.6 million of acquired nonimpaired loans as of March 31, 2017 . December 31, 2016 (Dollars in thousands) Commercial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) Amount % Risk Rating: Special mention $ 17,630 $ 11,419 $ 34,198 $ — $ 63,247 Substandard: Accrual 45,067 19,871 239 2,193 67,370 Nonaccrual 1,693 2,078 8,574 — 12,345 Doubtful 322 — 1,247 — 1,569 Total Special Mention and Substandard 64,712 33,368 44,258 2,193 144,531 4 % Acquired impaired 6,183 12,122 10,386 3,694 32,385 1 % Pass 1,216,836 1,032,672 1,108,910 216,825 3,575,243 95 % Total $ 1,287,731 $ 1,078,162 $ 1,163,554 $ 222,712 $ 3,752,159 100 % (1) Table includes $573.5 million of acquired nonimpaired loans as of December 31, 2016 . Residential and Consumer Credit Exposure (Dollars in thousands) Residential (2) Consumer Total Residential and Consumer (3) March 31, December 31, March 31, December 31, March 31, 2017 December 31, 2016 2017 2016 2017 2016 Amount Percent Amount Percent Nonperforming (1) $ 14,280 $ 13,547 $ 9,030 $ 7,863 $ 23,310 3 % $ 21,410 3 % Acquired impaired loans 866 860 263 369 1,129 — % 1,229 — % Performing 244,109 252,621 455,605 441,797 699,714 97 % 694,418 97 % Total $ 259,255 $ 267,028 $ 464,898 $ 450,029 $ 724,153 100 % $ 717,057 100 % (1) Includes $13.7 million as of March 31, 2017 and $12.4 million as of December 31, 2016 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest. (2) Residential performing loans excludes $22.5 million and $22.6 million of Reverse Mortgages at fair value as of March 31, 2017 and December 31, 2016 , respectively. (3) Total includes $136.0 million and $150.5 million in acquired nonimpaired loans as of March 31, 2017 and December 31, 2016 , respectively. Troubled Debt Restructurings (TDRs) TDRs are recorded in accordance with FASB ASC 310-40, Troubled Debt Restructuring by Creditors (ASC 310-40) . The following table presents the balance of TDRs as of the indicated dates: (Dollars in thousands) March 31, 2017 December 31, 2016 Performing TDRs $ 17,260 $ 14,336 Nonperforming TDRs 10,778 8,451 Total TDRs 28,038 22,787 Approximately $1.9 million and $1.3 million in related reserves have been established for these loans at March 31, 2017 and December 31, 2016 , respectively. The following table presents information regarding the types of loan modifications made for the three months ended March 31, 2017 : (Dollars in thousands) Maturity Date Extension Discharged in bankruptcy Other (1) Total Commercial 1 — — 1 Owner-occupied commercial 1 — — 1 Construction 2 — — 2 Residential — 1 — 1 Consumer — 6 1 7 4 7 1 12 (1) Other includes underwriting exception. Principal balances are generally not forgiven when a loan is modified as a TDR. Nonaccruing restructured loans remain in nonaccrual status until there has been a period of sustained repayment performance, typically six months and payment is reasonably assured. The following table presents loans identified as TDRs during the three months ended March 31, 2017 and 2016 . Three Months Ended March 31, 2017 2016 (Dollars in thousands) Pre Modification Post Modification Pre Modification Post Modification Commercial $ 443 $ 443 $ 984 $ 984 Owner-occupied commercial 3,071 3,071 — — Commercial mortgages — — — — Construction 1,712 1,712 — — Residential 242 242 614 614 Consumer 584 584 215 215 Total $ 6,052 $ 6,052 $ 1,813 $ 1,813 During the three months ended March 31, 2017 , the TDRs set forth in the table above increased our allowance for loan losses less than $0.3 million , and resulted in no additional charge-offs. For the same period of 2016 , the TDRs set forth in the table above had no change on our allowance for loan losses allocation of the related reserve and resulted in charge-offs of less than $0.1 million . During the three months ended March 31, 2017 , three TDRs defaulted that had received troubled debt modification during the past twelve months with a total loan amount $0.7 million . |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | GOODWILL AND INTANGIBLES In accordance with FASB ASC 805, Business Combinations (ASC 805) and FASB ASC 350, Intangibles-Goodwill and Other (ASC 350), all assets and liabilities acquired in purchase acquisitions, including goodwill, indefinite-lived intangibles and other intangibles are recorded at fair value. During the three months ended March 31, 2017 , we determined there were no events or other indicators of impairment as it relates to goodwill or other intangibles. The following table shows the changes in our goodwill during the quarter as well as the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing: WSFS Cash Wealth Consolidated (Dollars in thousands) Bank Connect Management Company December 31, 2016 $ 147,396 $ — $ 20,143 $ 167,539 Remeasurement adjustments (1,635 ) — 56 (1,579 ) Goodwill from business combinations — — — — March 31, 2017 $ 145,761 $ — $ 20,199 $ 165,960 ASC 350 also requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so. The following tables summarize other intangible assets: March 31, 2017 (Dollars in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Amortization Period Core deposits $ 10,658 $ (3,440 ) $ 7,218 10 years Customer relationships 17,561 (3,013 ) 14,548 7-15 years Non-compete agreements 221 (24 ) 197 5 years Loan servicing rights 1,821 (1,092 ) 729 10-30 years Favorable lease asset 1,932 (212 ) 1,720 10 months-18 years Total intangible assets $ 32,193 $ (7,781 ) $ 24,412 December 31, 2016 (Dollars in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Amortization Period Core deposits $ 13,128 $ (5,630 ) $ 7,498 10 years Customer relationships 17,561 (2,612 ) 14,949 7-15 years Non-compete agreements 1,006 (728 ) 278 6 months- 5 years Loan servicing rights 1,708 (1,067 ) 641 10-30 years Favorable lease asset 458 (116 ) 342 10 months-15 years Total intangible assets $ 33,861 $ (10,153 ) $ 23,708 Core deposits are amortized over their expected lives using the present value of the benefit of the core deposits and either accelerated or straight-line methods of amortization. During the three months ended March 31, 2017 , we recognized amortization expense on other intangible assets of $0.9 million . The following table shows the estimated future amortization expense related to our intangible assets: (Dollars in thousands) Amortization of Intangibles Remaining in 2017 $ 2,287 2018 2,965 2019 2,897 2020 2,701 2021 2,329 Thereafter 11,233 Total $ 24,412 |
Associate Benefit Plans
Associate Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Associate Benefit Plans | ASSOCIATE BENEFIT PLANS Postretirement Medical Benefits We share certain costs of providing health and life insurance benefits to eligible retired Associates (employees) and their eligible dependents. Previously, all Associates were eligible for these benefits if they reached normal retirement age while working for us. Effective March 31, 2014, we changed the eligibility of this plan to include only those Associates who have achieved ten years of service with us as of March 31, 2014. As of December 31, 2014, we began to use the mortality table issued by the Office of the Actuary of the U.S. Bureau of Census in October 2014 in our calculation. We account for our obligations under the provisions of FASB ASC 715, Compensation - Retirement Benefits (ASC 715). ASC 715 requires that we recognize the costs of these benefits over an Associate’s active working career. Amortization of unrecognized net gains or losses resulting from experience different from that assumed and from changes in assumptions is included as a component of net periodic benefit cost over the remaining service period of active employees to the extent that such gains and losses exceed 10% of the accumulated postretirement benefit obligation, as of the beginning of the year. The following are disclosures of the net periodic benefit cost components of postretirement medical benefits measured at January 1, 2017 and 2016. Three months ended March 31, (Dollars in thousands) 2017 2016 Service cost $ 15 $ 15 Interest cost 19 19 Prior service cost amortization (19 ) (7 ) Net gain recognition (16 ) (15 ) Net periodic benefit cost $ (1 ) $ 12 Alliance Associate Pension Plan During the fourth quarter of 2015, we completed the acquisition of Alliance and its wholly owned subsidiary, Alliance Bank, headquartered in Broomall, Pennsylvania. At the time of the acquisition we assumed the Alliance pension plan offered to its current associates. The following table shows the net periodic benefit cost components for the Alliance Associate Pension Plan benefits measured at January 1, 2017. (Dollars in thousands) Three months ended March 31, 2017 Service cost $ 10 Interest cost 75 Expected Return on Plan Assets (135 ) Prior service cost amortization — Net gain recognition — Net periodic benefit cost $ (50 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We account for income taxes in accordance with FASB ASC 740, Income Taxes (ASC 740). ASC 740 requires the recording of deferred income taxes that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We exercise significant judgment in the evaluation of the amount and timing of the recognition of the resulting tax assets and liabilities. The judgments and estimates required for the evaluation are updated based on changes in business factors and the tax laws. If actual results differ from the assumptions and other considerations used in estimating the amount and timing of tax recognized, there can be no assurance that additional expenses will not be required in future periods. ASC 740 prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. We recognize, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the financial statements. Assessment of uncertain tax positions under ASC 740 requires careful consideration of the technical merits of a position based on our analysis of tax regulations and interpretations. There were no unrecognized tax benefits as of March 31, 2017 . We record interest and penalties on potential income tax deficiencies as income tax expense. Our federal and state tax returns for the 2013 through 2016 tax years are subject to examination as of March 31, 2017 . We do not expect to record or realize any material unrecognized tax benefits during 2017 . As a result of the adoption of ASU No. 2014-01, “ Investments-Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects ,” the amortization of our low-income housing credit investments has been reflected as income tax expense. Accordingly, $0.4 million of such amortization has been reflected as income tax expense for the three months ended March 31, 2017 compared to $0.4 million for the same period in 2016 . The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the three months ended March 31, 2017 were $0.4 million , $0.4 million and $0.1 million , respectively. The carrying value of the investment in affordable housing credits is $15.0 million at March 31, 2017 , compared to $15.4 million at December 31, 2016 . |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Stock-based compensation is accounted for in accordance with FASB ASC 718, Stock Compensation. Compensation expense relating to all share-based payments is recognized on a straight-line basis over the applicable vesting period. Our Stock Incentive Plans provide for the granting of stock options, stock appreciation rights, performance awards, restricted stock and restricted stock unit awards, deferred stock units, and other awards that are payable in or valued by reference to our common shares. The number of shares reserved for issuance under our 2013 Incentive Plan (2013 Plan) is 2,096,535 . At March 31, 2017 , there were 490,926 shares available for future grants under the 2013 Plan. We record stock-based compensation expense related to awards granted to Associates in Salaries, benefits and other compensation ; expense related to awards granted to directors is recorded in Other operating expense in our Consolidated Statements of Income. Total stock-based compensation expense recognized during the three months ended March 31, 2017 and 2016 was $0.9 million ( $0.6 million after tax) and $0.8 million ( $0.4 million after tax), respectively. Stock Options Stock options are granted with an exercise price not less than the fair market value of our common stock on the date of the grant. All stock options are to be granted at not less than the fair market value of our common stock on the date of the grant. All stock options granted during 2017 and 2016 vest in 25% per annum increments, start to become exercisable one year from the grant date and expire seven years from the grant date. Generally, all awards become exercisable immediately in the event of a change in control, as defined within the Stock Incentive Plans. We issue new shares upon the exercise of options. We determine the grant date fair value of stock options using the Black-Scholes option-pricing model. The model requires the use of numerous assumptions, many of which are subjective. The expected term was derived from historical exercise patterns and represents the amount of time that stock options granted are expected to be outstanding. Other significant assumptions to determine 2017 and 2016 grant date fair value included volatility measured using the fluctuation in month end closing stock prices over a period which corresponds with the average expected option life; a weighted-average risk-free rate of return (zero coupon treasury yield); and a dividend yield indicative of our current dividend rate The following table summarizes the assumptions we used to value options issued during the three months ended March 31, 2017 and 2016 : March 31, 2017 March 31, 2016 Expected Term (in years) 5.3 5.3 Volatility 24.85 % 29.60 % Weighted-average risk free interest rate 1.95 % 1.24 % Dividend Yield 0.6 % 0.8 % The following table summarizes our stock option activity for the three months ended March 31, 2017 . Three months ended March 31, 2017 Shares Weighted- Average Exercise Price Stock Options: Outstanding at beginning of period 1,547,980 17.83 Granted 45,134 47.05 Exercised (117,612 ) 15.47 Forfeited (750 ) 15.83 Outstanding at end of period 1,474,752 18.91 Nonvested at end of period 424,459 23.64 Exercisable at end of period 1,050,293 17.00 Weighted-average fair value of options granted $ 11.50 The following table provides information about our nonvested stock options outstanding at March 31, 2017 : March 31, 2017 Shares Weighted- Average Exercise Price Stock Options: Nonvested at beginning of period $ 704,421 $ 19.08 Granted 45,134 47.05 Forfeited (750 ) 15.83 Vested during period (324,346 ) 17.01 Nonvested at end of period $ 424,459 23.64 The total amount of unrecognized compensation cost related to nonvested stock options as of March 31, 2017 was $ 5.5 million . The weighted-average period over which the expense is expected to be recognized is 1.86 years. During the first quarter of 2017, we recognized $ 0.5 million of compensation expense related to these awards. Restricted Stock Units Restricted stock units (RSUs) are granted at no cost to the recipient and generally vest over a four year period. All outstanding awards granted to senior executives vest over no less than a four year period. The 2013 Plan allows for awards with vesting periods less than four years subject to Board approval. The fair value of RSUs is equal to the fair value of the Company’s common stock on the date of grant. We recognize the expense related to RSUs granted to Associates in Salaries, benefits and other compensation expense; expense related to awards granted to directors is recorded in Other operating expense in our Statements of Income on an accrual basis over the requisite service period for the entire award. The Long-Term Performance-Based Restricted Stock Unit program (Long-Term Program) provided for awards up to an aggregate of 233,400 RSUs to participants, only after the achievement of targeted levels of return on assets (ROA) in any year through 2013. During 2013, the Company achieved the 1.00% ROA performance level. In accordance with the Long-Term Program, the Company issued 108,456 RSUs to the plan’s participants in 2014. The RSUs vest in 25% increments over four years and we recognize expense over the implicit service period associated with the performance condition. During the first quarter of 2017, we recognized $0.1 of compensation expense related to this program. The following table summarizes the Company’s RSAs and RSUs, including performance awards, and changes during the three months ended March 31, 2017: Three months ended March 31, 2017 Units (in whole) Weighted Average Grant-Date Fair Value per Unit Outstanding at beginning of period $ 135,592 $ 27.14 Granted 36,523 47.05 Vested (33,803 ) 20.22 Forfeited (1,823 ) 27.21 Outstanding at end of period $ 136,489 34.20 The total amount of compensation cost to be recognized relating to non-vested restricted stock, including performance awards, as of March 31, 2016, was $7.0 million . The weighted-average period over which the expense is expected to be recognized is 3.2 years . During the three months ended March 31, 2017 , we recognized $0.2 million of compensation cost related to these awards. |
Fair Value Disclosures of Finan
Fair Value Disclosures of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures of Financial Assets and Liabilities | FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: • Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. • Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following tables present financial instruments carried at fair value as of March 31, 2017 and December 31, 2016 by level in the valuation hierarchy (as described above): March 31, 2017 (Dollars in thousands) Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets measured at fair value on a recurring basis: Available-for-sale securities: CMO $ — $ 277,711 $ — $ 277,711 FNMA MBS — 386,051 — 386,051 FHLMC MBS — 64,171 — 64,171 GNMA MBS — 27,597 — 27,597 GSE — 32,981 — 32,981 Other investments 614 — — 614 Other assets — 1,108 — 1,108 Total assets measured at fair value on a recurring basis $ 614 $ 789,619 $ — $ 790,233 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 3,194 $ — $ 3,194 Assets measured at fair value on a nonrecurring basis: Other real estate owned $ — $ — $ 3,582 $ 3,582 Loans held for sale — 29,394 — 29,394 Impaired loans, net — — 62,443 62,443 Total assets measured at fair value on a nonrecurring basis $ — $ 29,394 $ 66,025 $ 95,419 December 31, 2016 (Dollars in thousands) Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets measured at fair value on a recurring basis: Available-for-sale securities: CMO $ — $ 261,215 $ — $ 261,215 FNMA MBS — 405,764 — 405,764 FHLMC MBS — 63,515 — 63,515 GNMA MBS — 28,416 — 28,416 GSE — 35,010 — 35,010 Other investments 623 — — 623 Other assets — 1,508 — 1,508 Total assets measured at fair value on a recurring basis $ 623 $ 795,428 $ — $ 796,051 Liabilities measured at fair value on a recurring basis: Other liabilities — 3,380 — 3,380 Assets measured at fair value on a nonrecurring basis Other real estate owned — — 3,591 3,591 Loans held for sale — 54,782 — 54,782 Impaired loans, net — — 46,499 46,499 Total assets measured at fair value on a nonrecurring basis $ — $ 54,782 $ 50,090 $ 104,872 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ending March 31, 2017 . Fair value is based on quoted market prices, where available. If such quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include unobservable parameters. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While we believe our valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Available-for-sale securities As of March 31, 2017 , securities classified as available-for-sale are reported at fair value using Level 2 inputs, except for one mutual fund asset acquired as part of the Penn Liberty acquisition, which is categorized as Level 1. Included in the Level 2 total are approximately $33.0 million in U.S. Treasury Notes and Federal Agency debentures, and $755.5 million in Federal Agency MBS. We believe that this Level 2 designation is appropriate for these securities under ASC 820-10 as, with almost all fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities we obtain fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. Other real estate owned Other real estate owned consists of loan collateral which has been repossessed through foreclosure or other measures. Initially, foreclosed assets are recorded at the lower of the loan balance or fair value of the collateral less estimated selling costs. Subsequent to foreclosure, valuations are updated periodically and the assets may be marked down further, reflecting a new cost basis. The fair value of our real estate owned was estimated using Level 3 inputs based on appraisals obtained from third parties. Loans held for sale The fair value of our loans held for sale is based on estimates using Level 2 inputs. These inputs are based on pricing information obtained from secondary markets and brokers and applied to loans with similar interest rates and maturities. Impaired loans We evaluate and value 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 us. 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 gross amount of impaired loans, which are measured for impairment by either calculating the expected future cash flows discounted at the loan’s effective interest rate or determining the fair value of the collateral for collateral dependent loans was $67.7 million and $51.6 million at March 31, 2017 and December 31, 2016 , respectively. The valuation allowance on impaired loans was $5.3 million as of March 31, 2017 and $3.4 million as of December 31, 2016 . FAIR VALUE OF FINANCIAL INSTRUMENTS The reported fair values of financial instruments are based on a variety of factors. In certain cases, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions regarding the amount and timing of estimated future cash flows that are discounted to reflect current market rates and varying degrees of risk. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of period-end or that will be realized in the future. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and cash equivalents For cash and short-term investment securities, including due from banks, federal funds sold or purchased under agreements to resell and interest-bearing deposits with other banks, the carrying amount is a reasonable estimate of fair value. Investment securities Fair value is estimated using quoted prices for similar securities, which we obtain from a third party vendor. We utilize one of the largest providers of securities pricing to the industry and management periodically assesses the inputs used by this vendor to price the various types of securities owned by us to validate the vendor’s methodology. Loans held for sale Loans held for sale are carried at their fair value (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type: commercial, commercial mortgages, owner-occupied commercial, construction, residential mortgages and consumer. For loans that reprice frequently, the book value approximates fair value. The fair values of other types of loans, with the exception of reverse mortgages, are estimated by discounting expected cash flows using the current rates at which similar loans would be made to borrowers with comparable credit ratings and for similar remaining maturities. The fair values of reverse mortgages are based on the net present value of the expected cash flows using a discount rate specific to the reverse mortgages portfolio. The fair value of nonperforming loans is based on recent external appraisals of the underlying collateral. Estimated cash flows, discounted using a rate commensurate with current rates and the risk associated with the estimated cash flows, are utilized if appraisals are not available. This technique does not contemplate an exit price. Stock in the Federal Home Loan Bank (FHLB) of Pittsburgh The fair value of FHLB stock is assumed to be equal to its cost basis, since the stock is non-marketable but redeemable at its par value. Other assets Other assets includes, among others, other real estate owned (see discussion earlier in this note) and our investment in Visa Class B stock. Our ownership includes shares acquired at no cost from our prior participation in Visa’s network, while Visa operated as a cooperative. During 2016 and 2017 we purchased additional shares which are accounted for as non-marketable equity securities and carried at cost. We evaluated the shares carried at cost for OTTI as of March 31, 2017 , and the evaluation showed no OTTI as of March 31, 2017 . Following resolution of Visa’s covered litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares. While only current owners of Class B shares are allowed to purchase other Class B shares, there have been several transactions between Class B shareholders. Based on these transactions we estimate the value of our Visa Class B shares to be $23.1 million as of March 31, 2017 . Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, money market and interest-bearing demand deposits, is assumed to be equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using rates currently offered for deposits with comparable remaining maturities. Borrowed funds Rates currently available to us for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Other Liabilities Other liabilities includes cash flow derivatives and derivative on the residential mortgage held for sale pipeline. Off-balance sheet instruments The fair value of off-balance sheet instruments, including commitments to extend credit and standby letters of credit, approximates the recorded net deferred fee amounts, which are not significant. Because commitments to extend credit and letters of credit are generally not assignable by either us or the borrower, they only have value to us and the borrower. The book value and estimated fair value of our financial instruments are as follows: (Dollars in thousands) Fair Value March 31, 2017 December 31, 2016 Measurement Book Value Fair Value Book Value Fair Value Financial assets: Cash and cash equivalents Level 1 $ 855,263 $ 855,263 $ 821,923 $ 821,923 Investment securities available for sale See previous table 789,125 789,125 794,543 794,543 Investment securities held to maturity Level 2 163,611 163,241 164,346 163,232 Loans, held for sale Level 2 29,394 29,394 54,782 54,782 Loans, net (1)(2) Level 2, 3 4,489,708 4,450,924 4,397,876 4,300,963 Impaired loans, net Level 3 62,443 62,443 46,499 46,499 Stock in FHLB of Pittsburgh Level 2 20,002 20,002 38,248 38,248 Accrued interest receivable Level 2 16,712 16,712 17,027 17,027 Other assets Level 3 13,920 28,527 9,189 15,787 Financial liabilities: Deposits Level 2 5,376,830 5,040,211 4,738,438 4,423,921 Borrowed funds Level 2 700,849 697,952 1,267,447 1,264,170 Standby letters of credit Level 3 507 507 468 468 Accrued interest payable Level 2 2,931 2,931 1,151 1,151 Other liabilities Level 2 3,194 3,194 3,380 3,380 (1) Excludes impaired loans, net. (2) Includes reverse mortgage loans, which are categorized as Level 3. At March 31, 2017 and December 31, 2016 we had no commitments to extend credit measured at fair value. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of our assets and liabilities. We manage a matched book with respect to our derivative instruments in order to minimize our net risk exposure resulting from such transactions. Fair Values of Derivative Instruments The table below presents the fair value of our derivative financial instruments as well as their location on the Consolidated Statements of Financial Condition as of March 31, 2017 . Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Liability Derivatives (Fair Value) Derivatives designated as hedging instruments: Interest rate products 3 $ 75,000 Other Liabilities $ 3,039 Total derivatives designated as hedging instruments $ 3,039 Cash Flow Hedges of Interest Rate Risk Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. During the three months ended March 31, 2017 , such derivatives were used to hedge the variable cash flows associated with a forecasted issuance of debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three months ended March 31, 2017 , we did not record any hedge ineffectiveness. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next twelve months, we estimate that less than $0.1 million will be reclassified as an increase to interest expense. We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of 1 month (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). As of March 31, 2017 , we had three outstanding interest rate derivatives with a notional of $75 million that were designated as cash flow hedges of interest rate risk. Effect of Derivative Instruments on the Income Statement The table below presents the effect of the derivative financial instruments on the Consolidated Statements of Income for the three months ended March 31, 2017 and March 31, 2016 . (Dollars in thousands) Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) Location of (Loss) or Gain Reclassified from Accumulated OCI into Income (Effective Portion) Three months ended March 31, Derivatives in Cash Flow Hedging Relationships 2017 2016 Interest Rate Products $ (3,039 ) $ — Interest expense Total $ (3,039 ) $ — Credit-risk-related Contingent Features We have agreements with certain of our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. We also have agreements with certain of our derivative counterparties that contain a provision where if we fail to maintain our status as a well/adequately capitalized institution, then the counterparty could terminate the derivative positions and we would be required to settle our obligations under the agreements. As of March 31, 2017 , the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $3.0 million . We have minimum collateral posting thresholds with certain of our derivative counterparties, and have posted collateral of $3.4 million against our obligations under these agreements. If we had breached any of these provisions at March 31, 2017 , we could have been required to settle our obligations under the agreements at the termination value. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION As defined in FASB ASC 280, Segment Reporting (ASC 280), an operating segment is a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision makers to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. We evaluate performance based on pretax ordinary income relative to resources used, and allocate resources based on these results. The accounting policies applicable to our segments are those that apply to our preparation of the accompanying unaudited Consolidated Financial Statements. Based on these criteria, we have identified three segments: WSFS Bank, Cash Connect ® , and Wealth Management. The WSFS Bank segment provides financial products to commercial and retail customers. Retail and Commercial Banking, Commercial Real Estate Lending and other banking business units are operating departments of WSFS Bank. These departments share the same regulator, the same market, many of the same customers and provide similar products and services through the general infrastructure of the Bank. Accordingly, these departments are not considered discrete segments and are appropriately aggregated within the WSFS Bank segment in accordance with ASC 280. Cash Connect ® provides ATM vault cash and smart safe and cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry. The balance sheet category “Cash in non-owned ATMs” includes cash from which fee income is earned through bailment arrangements with customers of Cash Connect ® . The Wealth Management segment provides a broad array of fiduciary, investment management, credit and deposit products to clients through six business lines. WSFS Wealth Investments provides insurance and brokerage products primarily to our retail banking clients. Cypress Capital Management, LLC is a registered investment advisor. Cypress’ primary market segment is high net worth individuals, offering a ‘balanced’ investment style focused on preservation of capital and current income. West Capital Management, a registered investment advisor, is a fee-only wealth management firm which operates under a multi-family office philosophy and provides fully-customized solutions tailored to the unique needs of institutions and high net worth individuals. Christiana Trust provides fiduciary and investment services to personal trust clients, and trustee, agency, bankruptcy administration, custodial and commercial domicile services to corporate and institutional clients. Powdermill Financial Solutions is a multi-family office that specializes in providing unique, independent solutions to high net worth individuals, families and corporate executives through a coordinated, centralized approach. WSFS Private Banking serves high net worth clients by delivering credit and deposit products and partnering with other business units to deliver investment management and fiduciary products and services. Segment information for the three months ended March 31, 2017 and 2016 is as follows: Three months ended March 31, 2017 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Management Total Statement of Income External customer revenues: Interest income $ 58,688 $ — $ 2,138 $ 60,826 Noninterest income 10,167 9,677 8,248 28,092 Total external customer revenues 68,855 9,677 10,386 88,918 Inter-segment revenues: Interest income 1,996 — 2,065 4,061 Noninterest income 2,164 191 36 2,391 Total inter-segment revenues 4,160 191 2,101 6,452 Total revenue 73,015 9,868 12,487 95,370 External customer expenses: Interest expense 7,463 — 260 7,723 Noninterest expenses 38,960 6,135 6,411 51,506 Provision for loan losses 1,716 — 446 2,162 Total external customer expenses 48,139 6,135 7,117 61,391 Inter-segment expenses: Interest expense 2,065 1,405 591 4,061 Noninterest expenses 227 715 1,449 2,391 Total inter-segment expenses 2,292 2,120 2,040 6,452 Total expenses 50,431 8,255 9,157 67,843 Income before taxes $ 22,584 $ 1,613 $ 3,330 $ 27,527 Income tax provision 8,590 Consolidated net income 18,937 Capital expenditures $ 2,088 $ 22 $ 254 $ 2,364 March 31, 2017 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Management Total Statement of Financial Condition Cash and cash equivalents $ 99,812 $ 751,201 $ 4,250 $ 855,263 Goodwill 145,761 — 20,199 165,960 Other segment assets 5,608,912 4,097 218,667 5,831,676 Total segment assets $ 5,854,485 $ 755,298 $ 243,116 $ 6,852,899 Three months ended March 31, 2016 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Management Total Statement of Income External customer revenues: Interest income $ 48,038 $ — $ 2,008 $ 50,046 Noninterest income 9,852 8,271 (r) 5,545 23,668 Total external customer revenues 57,890 8,271 7,553 73,714 Inter-segment revenues: Interest income 1,061 — 1,895 2,956 Noninterest income 2,060 193 24 2,277 Total inter-segment revenues 3,121 193 1,919 5,233 Total revenue 61,011 8,464 9,472 78,947 External customer expenses: Interest expense 4,497 — 193 4,690 Noninterest expenses 33,812 5,448 (r) 4,537 43,797 Provision for loan losses 815 — (35 ) 780 Total external customer expenses 39,124 5,448 4,695 49,267 Inter-segment expenses Interest expense 1,895 555 506 2,956 Noninterest expenses 217 715 1,345 2,277 Total inter-segment expenses 2,112 1,270 1,851 5,233 Total expenses 41,236 6,718 6,546 54,500 Income before taxes $ 19,775 $ 1,746 $ 2,926 $ 24,447 Income tax provision 8,677 Consolidated net income 15,770 Capital expenditures $ 1,211 $ 20 $ 2 $ 1,233 December 31, 2016 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Management Total Statement of Financial Condition Cash and cash equivalents $ 100,893 $ 717,643 $ 3,387 $ 821,923 Goodwill 147,396 — 20,143 167,539 Other segment assets 5,545,611 3,533 226,664 5,775,808 Total segment assets $ 5,793,900 $ 721,176 $ 250,194 $ 6,765,270 (r) Noninterest income and Noninterest expense for the period ended March 31, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information. |
Indemnifications and Guarantees
Indemnifications and Guarantees | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Indemnifications and Guarantees | INDEMNIFICATIONS AND GUARANTEES Secondary Market Loan Sales Given the current interest rate environment, coupled with our desire not to hold newly originated residential mortgage loans in our portfolio, we generally sell these assets in the secondary market to mortgage loan aggregators and on a more limited basis, to GSEs such as FHLMC, FNMA, and the FHLB. Loans held for sale are reflected on our unaudited Consolidated Statements of Financial Condition at fair value with changes in the value reflected in our unaudited Consolidated Statements of Income. Gains and losses are recognized at the time of sale. We periodically retain the servicing rights on residential mortgage loans sold which results in monthly service fee income. The mortgage servicing rights are included in our intangible assets in our unaudited Consolidated Statements of Financial Condition. Otherwise, we sell loans with servicing released on a nonrecourse basis. Rate-locked loan commitments that we intend to sell in the secondary market are accounted for as derivatives under ASC Topic 815, Derivatives and Hedging (ASC:815) . We generally do not sell loans with recourse, except for standard loan sale contract provisions covering violations of representations and warranties and, under certain circumstances, early payment default by the borrower. These are customary repurchase provisions in the secondary market for residential mortgage loan sales. These provisions may include either an indemnification from loss or the repurchase of the loans. 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 months ended March 31, 2017 . Swap Guarantees We entered into agreements with three unrelated financial institutions whereby those financial institutions entered into interest rate derivative contracts (interest rate swap transactions) with customers referred to them by us. Under the terms of the agreements, those financial institutions have recourse to us for any exposure created under each swap transaction in the event that the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. This is a customary arrangement that allows us to provide access to interest rate swap transactions for our customers without creating the swap ourselves. These swap guarantees are accounted for as credit derivatives . At both March 31, 2017 and December 31, 2016 , there were 134 variable-rate to fixed-rate swap transactions between the third party financial institutions and our customers. The initial notional aggregate amount was approximately $538.7 million at March 31, 2017 compared to $518.8 million at December 31, 2016 . At March 31, 2017 maturities ranged from under one year to twenty years. The aggregate market value of these swaps to the customers was a liability of $10.0 million at March 31, 2017 and $10.9 million at December 31, 2016 . We had no reserves for the swap guarantees as of March 31, 2017 . |
Change in Accumulated Other Com
Change in Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Change in Accumulated Other Comprehensive (Loss) Income | CHANGE IN ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME Accumulated other comprehensive (loss) income includes unrealized gains and losses on available-for-sale investments, unrealized gains and losses on cash flow hedges, as well as unrecognized prior service costs, transition costs, and actuarial gains and losses on defined benefit pension plans. Changes to accumulated other comprehensive (loss) income are presented net of tax as a component of stockholder's equity. Amounts that are reclassified out of accumulated other comprehensive (loss) income are recorded on the Consolidated Statement of Income either as a gain or loss. Changes to accumulated other comprehensive (loss) income by component are shown net of taxes in the following tables for the period indicated: (Dollars in thousands) Net change in investment securities available for sale Net change in securities held to maturity Net change in defined benefit plan Net change in fair value of derivative used for cash flow hedge Total Balance, December 31, 2016 $ (8,194 ) $ 1,392 $ 957 $ (1,772 ) $ (7,617 ) Other comprehensive income (loss) before reclassifications 1,272 — — (112 ) 1,160 Less: Amounts reclassified from accumulated other comprehensive loss (206 ) (101 ) (23 ) — (330 ) Net current-period other comprehensive income (loss) 1,066 (101 ) (23 ) (112 ) 830 Balance, March 31, 2017 $ (7,128 ) $ 1,291 $ 934 $ (1,884 ) $ (6,787 ) Balance, December 31, 2015 $ (1,887 ) $ 1,795 $ 788 $ — $ 696 Other comprehensive income before reclassifications 10,572 — — — 10,572 Less: Amounts reclassified from accumulated other comprehensive income (189 ) (103 ) 478 — 186 Net current-period other comprehensive income (loss) 10,383 (103 ) 478 — 10,758 Balance, March 31, 2016 $ 8,496 $ 1,692 $ 1,266 $ — $ 11,454 The Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below: Affected line item in Three Months Ended Consolidated (Dollars in thousands) March 31, Statements of Income 2017 2016 Securities available for sale: Realized gains on securities transactions $ (320 ) $ (305 ) Security gains, net Income taxes 114 116 Income tax provision Net of tax $ (206 ) $ (189 ) Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized gains to income during the period $ (160 ) $ (168 ) Interest income on investment securities Income taxes 59 65 Income tax provision Net of tax $ (101 ) $ (103 ) Amortization of Defined Benefit Pension items: Prior service (credits) costs $ (19 ) $ (7 ) Actuarial (gains) losses (16 ) 791 Total before tax $ (35 ) $ 784 Salaries, benefits and other compensation Income taxes 12 (306 ) Income tax provision Net of tax (23 ) 478 Total reclassifications $ (330 ) $ 186 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS In the ordinary course of business, from time to time we enter into transactions with related parties, including, but not limited to, our officers and directors. These transactions are made on substantially the same terms and conditions, including interest rates and collateral requirements, as those prevailing at the same time for comparable transactions with other customers. They do not, in the opinion of management, involve greater than normal credit risk or include other unfavorable features. The outstanding balances of loans to related parties at March 31, 2017 and December 31, 2016 were $1.6 million and $1.3 million , respectively. Total deposits from related parties at March 31, 2017 and December 31, 2016 were $6.3 million and $3.6 million , respectively. During the first quarter of 2017, new loans and credit line advances to related parties totaled $0.4 million and repayments were less than $0.1 million . |
Legal and Other Proceedings
Legal and Other Proceedings | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Other Proceedings | LEGAL AND OTHER PROCEEDINGS In accordance with the current accounting standards for loss contingencies, we establish reserves for litigation-related matters that arise in the ordinary course of our business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. From time to time we are brought into certain legal matters and/or disputes through our Wealth Management segment, as a result of sometimes highly complex documents and servicing requirements that are part of this business. While the outcomes carry some degree of uncertainty, management does not currently anticipate that the ultimate liability, if any, arising out of such other proceedings we are aware of, will have a material effect on the Consolidated Financial Statements. On April 7, 2015, WSFS Bank received a notice of arbitration and statement of claim (the Claim) from Universitas Education, LLC (Universitas) relating to Christiana Trust acting as “insurance trustee” of the Charter Oak Trust Welfare Benefit Plan (the Trust). The actions underlying the Claim occurred during a period prior to WSFS Corp’s acquisition of Christiana Trust. According to the allegations contained in the Claim, certain death benefits made payable to the asserted trustee of the Trust were misappropriated by individuals associated with that trustee and plan sponsor. None of those individuals, however, were employed by or agents of Christiana Trust or WSFS Bank. It also is alleged that Christiana Trust breached its fiduciary duty and engaged in fraud, negligence and statutory theft in connection with the disappearance of the misappropriated funds. It is further alleged that Universitas was the rightful beneficiary under the Trust of the misappropriated funds, and thus was harmed because it did not receive the death benefits that had been paid over to the asserted trustee of the Trust. The Claim subsequently was amended to add a count for breach of contract. The Claim seeks an award of approximately $30 million plus interest, as well as the costs incurred by Universitas in pursuing the Claim and statutory and other penalties. WSFS is vigorously defending itself against the Claim and believes that it has valid factual and legal defenses to the Claim. WSFS does not believe that the ultimate resolution of the Claim will have a material adverse effect on the Company, but there can be no assurance as to the ultimate outcome. There were no material changes or additions to other significant pending legal or other proceedings involving us other than those arising out of routine operations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | General Our unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (the Company, our Company, we, our or us), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital) and Cypress Capital Management, LLC (Cypress). We also have one unconsolidated subsidiary, WSFS Capital Trust III (the Capital Trust). WSFS Bank has three wholly-owned subsidiaries: WSFS Wealth Investments, 1832 Holdings, Inc. and Monarch Entity Services LLC (Monarch). Overview Founded in 1832, the Bank is one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). We provide residential and commercial real estate, commercial and consumer lending services, as well as retail deposit and cash management services. Lending activities are funded primarily with customer deposits and borrowings. In addition, we offer a variety of wealth management and trust services to personal and corporate customers. The Federal Deposit Insurance Corporation (FDIC) insures our customers’ deposits to their legal maximums. We serve our customers primarily from our 77 offices located in Delaware ( 46 ), Pennsylvania ( 29 ), Virginia ( 1 ) and Nevada ( 1 ) and through our website at www.wsfsbank.com . Information on our website is not incorporated by reference into this quarterly report. In preparing the unaudited Consolidated Financial Statements, we are required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for loan losses and reserves for lending related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, other-than-temporary impairment (OTTI), and the income tax valuation allowance. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets and establishment of the allowance and lending related commitments as well as increased post-retirement benefits expense. Our accounting and reporting policies conform to Generally Accepted Accounting Principles (GAAP) in the U.S., prevailing practices within the banking industry for interim financial information and Rule 10-01 of SEC Regulation S-X (Rule 10-01). Rule 10-01 does not require us to include all information and notes that would be required in audited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any future quarters or for the year ending December 31, 2017 . These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our 2016 Annual Report on Form 10-K that was filed with the SEC on March 1, 2017 and is available at www.sec.gov or on our website at http://investors.wsfsbank.com/financials.cfm. Whenever necessary, reclassifications have been made to the prior period Consolidated Financial Statements to conform to the current period’s presentation. All significant intercompany transactions were eliminated in consolidation. The significant accounting policies used in preparation of our Consolidated Financial Statements are disclosed in our 2016 Annual Report on Form 10-K. There have not been any material changes in our significant accounting policies from those disclosed in our 2016 Annual Report on Form 10-K. |
Acquisitions | Acquisitions in 2016 On August 12, 2016, we completed the acquisition of Penn Liberty Financial Corp. (Penn Liberty), a community bank headquartered in Wayne, Pennsylvania. We expect this acquisition to build our market share, deepen our presence in the southeastern Pennsylvania market, and enhance our customer base. The results of Penn Liberty’s operations are included in our Consolidated Financial Statements since the date of the acquisition. See Note 2 – Business Combinations for further information. During the third and fourth quarters of 2016, respectively, we acquired the assets of Powdermill Financial Solutions LLC, a multi-family office serving an affluent clientele in the local community and throughout the U.S., and West Capital Management, Inc., an independent, fee-only wealth management firm providing fully customized solutions tailored to the unique needs of institutions and high net worth individuals which operates under a multi-family office philosophy. These acquisitions align with our strategic plan to expand our wealth management offerings and to diversify our fee-income generating businesses. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2017 In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-05: Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , which amends Accounting Standards Codification (ASC) Topic 815: Derivatives and Hedging. This new guidance clarifies that the novation of a derivative contract (i.e., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, cause a hedge accounting relationship to be discontinued because it does not represent a termination of the original derivative instrument or a change in the critical terms of the hedge relationship. This new guidance is effective for annual reporting periods beginning after December 15, 2016 and may be adopted prospectively or retroactively. Early adoption is permitted, including adoption in an interim period. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact to our Consolidated Financial statements, as the standard is applied on a prospective basis. In March 2016, the FASB issued ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments, Derivatives and Hedging (Topic 815). ASU 2016-06 clarifies that determining whether the economic characteristics of a put or call are clearly and closely related to its debt host requires only an assessment of the four-step decision sequence outlined in FASB ASC paragraph 815-15-25-24. Additionally, entities are not required to separately assess whether the contingency itself is clearly and closely related. The standard is effective for public business entities in interim and annual periods in fiscal years beginning after December 15, 2016. Early adoption is permitted in any interim period for which the entity’s financial statements have not been issued, but would be retroactively applied to the beginning of the year that includes the interim period. The standard requires a modified retrospective transition approach, with a cumulative catch-up adjustment to opening retained earnings in the period of adoption. For instruments that are eligible for the fair value option, an entity has a one-time option to irrevocably elect to measure the debt instrument affected by the standard in its entirety at fair value with changes in fair value recognized in earnings. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact on our Consolidated Statements of Income or Consolidated Statements of Financial Condition. In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting, Investments - Equity Method and Joint Ventures (Topic 323). ASU 2016-07 eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. The standard is effective for all entities in annual and interim periods in fiscal years beginning after December 15, 2016. Early adoption is permitted. The new guidance will be applied prospectively to changes in ownership (or influence) after the adoption date. The Company adopted this accounting guidance during the quarter ended March 31, 2017 with no impact to our Consolidated Financial statements, as the standard is applied on a prospective basis. Accounting Guidance Pending Adoption at March 31, 2017 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This ASU supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU No. 2014-09 will require an entity to recognize revenue when it transfers promised goods or services to customers using a five-step model that requires entities to exercise judgment when considering the terms of the contracts. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This amendment defers the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU 2016- 08, Principal versus Agent Considerations (Reporting Gross versus Net) , which amends the principal versus agent guidance and clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. In addition, the FASB issued ASU Nos. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers and 2016-12, Narrow-Scope Improvements and Practical Expedients , both of which provide additional clarification of certain provisions in Topic 606. These Accounting Standards Codification (“ASC”) updates are effective for public business entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The standard permits the use of either the retrospective or retrospectively with the cumulative effect transition method. The Company is currently in the process of evaluating all revenue streams, accounting policies, practices and reporting to identify and understand any impact on the Company’s Consolidated Financial Statements. Our preliminary evaluation suggests that adoption of this guidance is not expected to have a material effect on our Consolidated Financial Statements. The Company anticipates completing our assessment in the second half of 2017. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This amendment requires that equity investments be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. For financial liabilities that are measured at fair value, the amendment requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument specific credit risk. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Entities may apply this guidance on a prospective or retrospective basis. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU revises the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a 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 2016-02 is effective for the first interim period within annual periods beginning after December 15, 2018, with early adoption permitted. Adoption using the modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of adopting ASU 2016-02 on its Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. This guidance is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 represents the Emerging Issues Task Force’s (“the EITF”) final consensus on eight issues related to the classification of cash payments and receipts in the statement of cash flows for a number of common transactions. The consensus also clarifies when identifiable cash flows should be separated versus classified based on their predominant source or use. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this guidance on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 provides a new, two-step framework for determining whether a transaction is accounted for as an acquisition (or disposal) of assets or a business. The first step is evaluating whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the transaction is not considered a business. Also, in order to be considered a business, the transaction would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted for transactions that have not been reported in financial statements that have been issued or been made available for issuance. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 simplifies the measurement of goodwill impairment by removing the hypothetical purchase price allocation (“Step 2”). The new guidance requires an impairment of goodwill be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, up to the amount of goodwill recorded. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for goodwill impairment tests with measurement dates after January 1, 2017. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. In February 2017, the FASB issued ASU No. 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 provides clarification of the scope of ASC 610-20. Specifically, the new guidance clarifies that ASC 610-20 applies to nonfinancial assets which do not meet the definition of a business or not-for-profit activity. Further, the new guidance clarifies that a financial asset is within the scope of ASC 610-20 if it meets the definition of an in-substance nonfinancial asset which is defined as a financial asset promised to a counterparty in a contract where substantially all of the assets promised are nonfinancial. Finally, the new guidance clarifies that each distinct nonfinancial asset and in-substance nonfinancial asset should be derecognized when the counterparty obtains control of it. The guidance is effective for public entities in annual and interim reporting periods in fiscal years beginning after December 15, 2017. Early application is permitted for all entities, but not before annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of adopting ASU 2017-05 on its Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The new guidance requires that the service cost component of net periodic pension cost be disclosed with other compensation costs in the income statement. For all other cost components, an entity must either separately disclose the other cost components in separate line item(s) outside a subtotal of income from operations in the income statement or disclose the line item(s) used to present the other cost components in the income statement. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities . The new guidance requires the amortization period for certain non-contingent callable debt securities held at a premium to end at the earliest call date of the debt security. If the call option is not exercised at the earliest call date, the guidance requires the debt security's effective yield to be reset based on the contractual payment terms of the debt security. The guidance is effective for public entities in annual and interim periods in fiscal years beginning after December 15, 2018. Early adoption is permitted. Use of the modified retrospective method, with a cumulative-effect adjustment to retained earnings, is required. In the period of adoption, a change in accounting principle disclosure is required. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | As a result, the Consolidated Statement of Income has been revised to reflect these changes, as follows: Three months ended March 31, 2016 As originally reported Adjustments As revised Noninterest income - Other revenue $ 3,972 $ 598 $ 4,570 Noninterest expense - Other operating expense 7,061 598 7,659 |
Business Combinations (Tables)
Business Combinations (Tables) - Penn Liberty Financial Corporation | 3 Months Ended |
Mar. 31, 2017 | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed | In connection with the merger, the consideration transferred and the fair value of identifiable assets acquired and liabilities assumed, including remeasurement adjustments subsequent to the date of acquisition, are summarized in the following table: (Dollars in thousands) Fair Value Consideration Transferred: Common shares issued (1,806,748) $ 68,352 Cash paid to Penn Liberty stock and option holders 40,549 Value of consideration 108,901 Assets acquired: Cash and due from banks 102,301 Investment securities 627 Loans 483,482 Premises and equipment 6,817 Deferred income taxes 6,542 Bank owned life insurance 8,666 Core deposit intangible 2,882 Other real estate owned 996 Other assets 12,092 Total assets 624,405 Liabilities assumed: Deposits 568,706 Other borrowings 10,000 Other liabilities 3,977 Total liabilities 582,683 Net assets acquired: 41,722 Goodwill resulting from acquisition of Penn Liberty $ 67,179 |
Schedule of Change to Goodwill | The following table details the change to goodwill recorded subsequent to acquisition: (Dollars in thousands) Fair Value Goodwill resulting from the acquisition of Penn Liberty reported as of December 31, 2016 $ 68,814 Effects of adjustments to: Deferred income taxes 880 Other assets (1,447 ) Other liabilities (1,068 ) Adjusted goodwill resulting from the acquisition of Penn Liberty as of March 31, 2017 $ 67,179 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted earnings per share: Three Months Ended March 31, (Dollars and Shares in thousands, except per share data) 2017 2016 Numerator: Net income $ 18,937 $ 15,770 Denominator: Weighted average basic shares 31,407 29,671 Dilutive potential common shares 942 558 Weighted average fully diluted shares 32,349 30,229 Earnings per share: Basic $ 0.60 $ 0.53 Diluted $ 0.59 $ 0.52 Outstanding common stock equivalents having no dilutive effect 22 42 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities | The following tables detail the amortized cost and the estimated fair value of our available-for-sale and held-to-maturity investment securities. None of our investment securities are classified as trading. (Dollars in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Available-for-Sale Securities: March 31, 2017 GSE $ 33,051 $ 2 $ 72 $ 32,981 CMO 280,576 699 3,564 277,711 FNMA MBS 393,356 984 8,289 386,051 FHLMC MBS 65,228 204 1,261 64,171 GNMA MBS 27,767 275 445 27,597 Other investments 634 — 20 614 $ 800,612 $ 2,164 $ 13,651 $ 789,125 December 31, 2016 GSE $ 35,061 $ 9 $ 60 $ 35,010 CMO 264,607 566 3,957 261,216 FNMA MBS 414,218 950 9,404 405,764 FHLMC MBS 64,709 135 1,330 63,514 GNMA MBS 28,540 303 427 28,416 Other investments 626 — 3 623 $ 807,761 $ 1,963 $ 15,181 $ 794,543 (Dollars in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Held-to-Maturity Securities (1) March 31, 2017 State and political subdivisions $ 163,611 $ 646 $ 1,016 $ 163,241 December 31, 2016 State and political subdivisions $ 164,346 $ 271 $ 1,385 $ 163,232 (1) Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $2.1 million and $2.2 million at March 31, 2017 and December 31, 2016 , respectively, related to securities transferred, which are offset in Accumulated Other Comprehensive Income, net of tax. |
Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of investment securities available for sale and held to maturity at March 31, 2017 and December 31, 2016 are presented in the table below: Available for Sale (1) (2) Amortized Fair (Dollars in thousands) Cost Value March 31, 2017 Within one year $ 20,012 $ 19,997 After one year but within five years 18,059 17,981 After five years but within ten years 210,595 205,242 After ten years 551,312 545,291 $ 799,978 $ 788,511 December 31, 2016 Within one year $ 16,009 $ 16,017 After one year but within five years 19,052 18,992 After five years but within ten years 276,635 270,300 After ten years 495,439 488,611 $ 807,135 $ 793,920 Held to Maturity (2) Amortized Fair (Dollars in thousands) Cost Value March 31, 2017 Within one year $ — $ — After one year but within five years 5,940 5,975 After five years but within ten years 10,482 10,511 After ten years 147,189 146,755 $ 163,611 $ 163,241 December 31, 2016 Within one year $ — $ — After one year but within five years 6,168 6,162 After five years but within ten years 8,882 8,870 After ten years 149,296 148,200 $ 164,346 $ 163,232 (1) Included in the investment portfolio, but not in the table above, is a mutual fund with an amortized cost and fair value of $0.6 million as of March 31, 2017 and December 31, 2016 which has no stated maturity. (2) Actual maturities could differ |
Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category | For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at March 31, 2017 . Duration of Unrealized Loss Position Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Available-for-sale securities: GSE $ 25,981 $ 72 $ — $ — $ 25,981 $ 72 CMO 161,225 3,469 4,239 95 165,464 3,564 FNMA MBS 276,175 8,289 — — 276,175 8,289 FHLMC MBS 41,765 1,261 — — 41,765 1,261 GNMA MBS 16,236 445 — — 16,236 445 Other investments 634 20 — — 634 20 Total temporarily impaired investments 522,016 13,556 4,239 95 526,255 13,651 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Held-to-maturity securities: State and political subdivisions $ 84,121 $ 969 $ 1,960 $ 47 $ 86,081 $ 1,016 Total temporarily impaired investments $ 84,121 $ 969 $ 1,960 $ 47 $ 86,081 $ 1,016 For investment securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual securities were in a continuous unrealized loss position at December 31, 2016 . Duration of Unrealized Loss Position Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Available-for-sale securities: GSE $ 21,996 $ 60 $ — $ — $ 21,996 $ 60 CMO 160,572 3,867 4,654 90 165,226 3,957 FNMA MBS 50,878 1,330 — — 50,878 1,330 FHLMC MBS 300,403 9,404 — — 300,403 9,404 GNMA MBS 16,480 427 — — 16,480 427 Other investments 623 3 — — 623 3 Total temporarily impaired investments $ 550,952 $ 15,091 $ 4,654 $ 90 $ 555,606 $ 15,181 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Held-to-maturity securities: State and political subdivisions $ 112,642 $ 1,374 $ 695 $ 11 $ 113,337 $ 1,385 Total temporarily impaired investments $ 112,642 $ 1,374 $ 695 $ 11 $ 113,337 $ 1,385 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Summary of Loan Portfolio by Category | The following table shows our loan portfolio by category: (Dollars in thousands) March 31, 2017 December 31, 2016 Commercial and industrial $ 1,339,867 $ 1,287,731 Owner-occupied commercial 1,092,292 1,078,162 Commercial mortgages 1,165,556 1,163,554 Construction 255,760 222,712 Residential (1) 281,760 289,611 Consumer 464,898 450,029 4,600,133 4,491,799 Less: Deferred fees, net 8,156 7,673 Allowance for loan losses 39,826 39,751 Net loans $ 4,552,151 $ 4,444,375 (1) Includes Reverse Mortgages, at fair value of $22.5 million at March 31, 2017 and $22.6 million at December 31, 2016 . |
Schedule of Outstanding Principal Balance and Carrying Amounts for Acquired Credit-Impaired Loans | The following table shows the outstanding principal balance and carrying amounts for acquired credit impaired loans for which the Company applies ASC 310-30 as of the dates indicated: (Dollars in thousands) March 31, 2017 December 31, 2016 Outstanding principal balance $ 38,418 $ 41,574 Carrying amount 30,783 33,104 Allowance for loan losses 464 510 |
Summary of Changes in Accretable Yield on Acquired Credit Impaired Loans | The following table presents the changes in accretable yield on the acquired credit impaired loans for the three months ended March 31, 2017 : (Dollars in thousands) Three months ended March 31, 2017 Balance at beginning of period $ 5,150 Accretion (792 ) Reclassification from nonaccretable difference (144 ) Additions/adjustments (112 ) Disposals — $ 4,102 |
Allowance for Loan Losses and33
Allowance for Loan Losses and Credit Quality Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Allowance for Loan Losses and Loan Balances | The following tables provide the activity of our allowance for loan losses and loan balances for the three months ended March 31, 2017 : Three months ended March 31, 2017 (Dollars in thousands) Commercial Owner-occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Total Allowance for loan losses Beginning balance $ 13,339 $ 6,588 $ 8,915 $ 2,838 $ 2,059 $ 6,012 $ 39,751 Charge-offs (1,255 ) (192 ) (104 ) (14 ) (11 ) (1,143 ) (2,719 ) Recoveries 84 75 46 2 120 305 632 Provision (credit) 1,949 (441 ) (518 ) 158 (114 ) 1,080 2,114 Provision for acquired loans 88 — (4 ) (23 ) — (13 ) 48 Ending balance $ 14,205 $ 6,030 $ 8,335 $ 2,961 $ 2,054 $ 6,241 $ 39,826 Period-end allowance allocated to: Loans individually evaluated for impairment $ 1,860 $ — $ 1,395 $ 500 $ 887 $ 194 $ 4,836 Loans collectively evaluated for impairment 12,165 6,015 6,763 2,397 1,144 6,042 34,526 Acquired loans evaluated for impairment 180 15 177 64 23 5 464 Ending balance $ 14,205 $ 6,030 $ 8,335 $ 2,961 $ 2,054 $ 6,241 $ 39,826 Period-end loan balances evaluated for: Loans individually evaluated for impairment (2) $ 16,767 $ 4,020 $ 9,771 $ 3,130 $ 14,280 $ 9,029 $ 56,997 Loans collectively evaluated for impairment 1,175,911 919,508 928,925 225,718 158,430 405,285 3,813,777 Acquired nonimpaired loans 141,933 156,724 216,410 24,540 85,679 50,321 675,607 Acquired impaired loans 5,256 12,040 10,450 2,372 866 263 31,247 Ending balance (3) $ 1,339,867 $ 1,092,292 $ 1,165,556 $ 255,760 $ 259,255 $ 464,898 $ 4,577,628 (1) Period-end loan balance excludes Reverse Mortgages, at fair value of $22.5 million . (2) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $17.3 million for the period ending March 31, 2017 . Accruing troubled debt restructured loans are considered impaired loans. (3) Ending loan balances do not include net deferred fees. The following table provides the activity of the allowance for loan losses and loan balances for the three months ended March 31, 2016 : Three months ended March 31, 2016 (Dollars in thousands) Commercial Owner - occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Complexity Risk (2) Total Allowance for loan losses Beginning balance $ 11,156 $ 6,670 $ 6,487 $ 3,521 $ 2,281 $ 5,964 $ 1,010 $ 37,089 Charge-offs (179 ) — (17 ) (26 ) (14 ) (631 ) — (867 ) Recoveries 110 38 79 46 22 259 — 554 Provision (credit) 484 (6 ) (37 ) 72 (20 ) 400 14 907 Provision for acquired loans (89 ) — 4 (4 ) — (38 ) — (127 ) Ending balance $ 11,482 $ 6,702 $ 6,516 $ 3,609 $ 2,269 $ 5,954 $ 1,024 $ 37,556 Period-end allowance allocated to: Loans individually evaluated for impairment $ 1,473 $ — $ — $ 211 $ 911 $ 208 $ — $ 2,803 Loans collectively evaluated for impairment 10,005 6,680 6,427 3,398 1,354 5,746 1,024 34,634 Acquired loans evaluated for impairment 4 22 89 — 4 — — 119 Ending balance $ 11,482 $ 6,702 $ 6,516 $ 3,609 $ 2,269 $ 5,954 $ 1,024 $ 37,556 Period-end loan balances: Loans individually evaluated for impairment (3) $ 5,278 $ 1,270 $ 2,678 $ 1,419 $ 15,260 $ 7,795 $ — $ 33,700 Loans collectively evaluated for impairment 957,863 839,819 893,036 194,654 161,610 336,053 — 3,383,035 Acquired nonimpaired loans 107,380 49,765 80,795 27,711 73,240 15,803 — 354,694 Acquired impaired loans 12,600 4,603 10,557 3,564 955 5 — 32,284 Ending balance (4) $ 1,083,121 $ 895,457 $ 987,066 $ 227,348 $ 251,065 $ 359,656 $ — $ 3,803,713 (1) Period-end loan balance excludes Reverse Mortgages, at fair value of $24.7 million . (2) Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology. (3) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $13.9 million for the period ending March 31, 2016 . Accruing troubled debt restructured loans are considered impaired loans. (4) Ending loan balances do not include net deferred fees. |
Summary of Nonaccrual and Past Due Loans | The following tables show our nonaccrual and past due loans at the dates indicated: March 31, 2017 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Than 90 Days Past Due and Still Accruing Total Past Due And Still Accruing Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial $ 783 $ 467 $ — $ 1,250 $ 1,316,841 $ 5,256 $ 16,520 $ 1,339,867 Owner-occupied commercial 341 500 — 841 1,075,391 12,040 4,020 1,092,292 Commercial mortgages 451 — 343 794 1,144,617 10,450 9,695 1,165,556 Construction 37 — 466 503 252,885 2,372 — 255,760 Residential (1) 2,020 119 850 2,989 250,443 866 4,957 259,255 Consumer 374 612 106 1,092 459,057 263 4,486 464,898 Total (2) $ 4,006 $ 1,698 $ 1,765 $ 7,469 $ 4,499,234 $ 31,247 $ 39,678 $ 4,577,628 % of Total Loans 0.08 % 0.04 % 0.04 % 0.16 % 98.29 % 0.68 % 0.87 % 100 % (1) Residential accruing current balances excludes Reverse Mortgages at fair value of $22.5 million . (2) The balances above include a total of $675.6 million of acquired nonimpaired loans. December 31, 2016 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Than 90 Days Past Due and Still Accruing Total Past Due And Still Accruing Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial $ 1,507 $ 278 $ — $ 1,785 $ 1,277,748 $ 6,183 $ 2,015 $ 1,287,731 Owner-occupied commercial 116 540 — 656 1,063,306 12,122 2,078 1,078,162 Commercial mortgages 167 — — 167 1,143,180 10,386 9,821 1,163,554 Construction 132 — — 132 218,886 3,694 — 222,712 Residential (1) 3,176 638 153 3,967 257,234 860 4,967 267,028 Consumer 392 346 285 1,023 444,642 369 3,995 450,029 Total (2) $ 5,490 $ 1,802 $ 438 $ 7,730 $ 4,404,996 $ 33,614 $ 22,876 $ 4,469,216 % of Total Loans 0.12 % 0.04 % 0.01 % 0.17 % 98.56 % 0.75 % 0.51 % 100 % (1) Residential accruing current balances excludes Reverse Mortgages, at fair value of $22.6 million . (2) The balances above include a total of $724.1 million of acquired nonimpaired loans |
Analysis of Impaired Loans | The following tables provide an analysis of our impaired loans at March 31, 2017 and December 31, 2016 : March 31, 2017 (Dollars in thousands) Ending Loan Balances Loans with No Related Reserve (1) Loans with Related Reserve Related Reserve Contractual Principal Balances Average Loan Balances Commercial $ 18,550 $ 2,598 $ 15,952 $ 2,040 $ 20,197 $ 7,535 Owner-occupied commercial 6,210 4,020 2,190 15 6,372 4,155 Commercial mortgages 14,478 4,220 10,258 1,572 19,906 9,288 Construction 4,435 1,117 3,318 564 4,546 2,979 Residential 15,000 8,056 6,944 910 17,904 14,941 Consumer 9,070 7,526 1,544 199 11,578 8,191 Total (2) $ 67,743 $ 27,537 $ 40,206 $ 5,300 $ 80,503 $ 47,089 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $10.7 million in the ending loan balance and $11.8 million in the contractual principal balance. December 31, 2016 (Dollars in thousands) Ending Loan Balances Loans with No Related (1) Loans with Related Reserve Related Reserve Contractual Principal Balances Average Loan Balances Commercial $ 4,250 $ 1,395 $ 2,855 $ 505 $ 5,572 $ 5,053 Owner-occupied commercial 4,650 2,078 2,572 15 5,129 3,339 Commercial mortgages 15,065 4,348 10,717 1,433 20,716 7,323 Construction 3,662 — 3,662 303 3,972 2,376 Residential 14,256 7,122 7,134 934 17,298 15,083 Consumer 8,021 6,561 1,460 215 11,978 7,910 Total (2) $ 49,904 $ 21,504 $ 28,400 $ 3,405 $ 64,665 $ 41,084 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $12.8 million in the ending loan balance and $15.0 million in the contractual principal balance. |
Schedule of Commercial Credit Exposure | The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss. Commercial Credit Exposure March 31, 2017 (Dollars in thousands) Commercial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) Amount % Risk Rating: Special mention $ 17,590 $ 6,849 $ 21,931 $ 1,008 $ 47,378 Substandard: Accrual 41,136 20,162 3,216 4,489 69,003 Nonaccrual 14,660 4,020 8,300 — 26,980 Doubtful 1,860 — 1,395 — 3,255 Total Special Mention and Substandard 75,246 31,031 34,842 5,497 146,616 4 % Acquired impaired 5,256 12,040 10,450 2,372 30,118 1 % Pass 1,259,365 1,049,221 1,120,264 247,891 3,676,741 95 % Total $ 1,339,867 $ 1,092,292 $ 1,165,556 $ 255,760 $ 3,853,475 100 % (1) Table includes $539.6 million of acquired nonimpaired loans as of March 31, 2017 . December 31, 2016 (Dollars in thousands) Commercial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) Amount % Risk Rating: Special mention $ 17,630 $ 11,419 $ 34,198 $ — $ 63,247 Substandard: Accrual 45,067 19,871 239 2,193 67,370 Nonaccrual 1,693 2,078 8,574 — 12,345 Doubtful 322 — 1,247 — 1,569 Total Special Mention and Substandard 64,712 33,368 44,258 2,193 144,531 4 % Acquired impaired 6,183 12,122 10,386 3,694 32,385 1 % Pass 1,216,836 1,032,672 1,108,910 216,825 3,575,243 95 % Total $ 1,287,731 $ 1,078,162 $ 1,163,554 $ 222,712 $ 3,752,159 100 % (1) Table includes $573.5 million of acquired nonimpaired loans as of December 31, 2016 . |
Schedule of Consumer Credit Exposure | Residential and Consumer Credit Exposure (Dollars in thousands) Residential (2) Consumer Total Residential and Consumer (3) March 31, December 31, March 31, December 31, March 31, 2017 December 31, 2016 2017 2016 2017 2016 Amount Percent Amount Percent Nonperforming (1) $ 14,280 $ 13,547 $ 9,030 $ 7,863 $ 23,310 3 % $ 21,410 3 % Acquired impaired loans 866 860 263 369 1,129 — % 1,229 — % Performing 244,109 252,621 455,605 441,797 699,714 97 % 694,418 97 % Total $ 259,255 $ 267,028 $ 464,898 $ 450,029 $ 724,153 100 % $ 717,057 100 % (1) Includes $13.7 million as of March 31, 2017 and $12.4 million as of December 31, 2016 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest. (2) Residential performing loans excludes $22.5 million and $22.6 million of Reverse Mortgages at fair value as of March 31, 2017 and December 31, 2016 , respectively. (3) Total includes $136.0 million and $150.5 million in acquired nonimpaired loans as of March 31, 2017 and December 31, 2016 , respectively. |
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated | The following table presents loans identified as TDRs during the three months ended March 31, 2017 and 2016 . Three Months Ended March 31, 2017 2016 (Dollars in thousands) Pre Modification Post Modification Pre Modification Post Modification Commercial $ 443 $ 443 $ 984 $ 984 Owner-occupied commercial 3,071 3,071 — — Commercial mortgages — — — — Construction 1,712 1,712 — — Residential 242 242 614 614 Consumer 584 584 215 215 Total $ 6,052 $ 6,052 $ 1,813 $ 1,813 The following table presents information regarding the types of loan modifications made for the three months ended March 31, 2017 : (Dollars in thousands) Maturity Date Extension Discharged in bankruptcy Other (1) Total Commercial 1 — — 1 Owner-occupied commercial 1 — — 1 Construction 2 — — 2 Residential — 1 — 1 Consumer — 6 1 7 4 7 1 12 (1) Other includes underwriting exception. The following table presents the balance of TDRs as of the indicated dates: (Dollars in thousands) March 31, 2017 December 31, 2016 Performing TDRs $ 17,260 $ 14,336 Nonperforming TDRs 10,778 8,451 Total TDRs 28,038 22,787 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Allocation of Goodwill to Our Reportable Operating Segments for Purposes of Goodwill Impairment Testing | The following table shows the changes in our goodwill during the quarter as well as the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing: WSFS Cash Wealth Consolidated (Dollars in thousands) Bank Connect Management Company December 31, 2016 $ 147,396 $ — $ 20,143 $ 167,539 Remeasurement adjustments (1,635 ) — 56 (1,579 ) Goodwill from business combinations — — — — March 31, 2017 $ 145,761 $ — $ 20,199 $ 165,960 |
Summary of Other Intangible Assets | The following tables summarize other intangible assets: March 31, 2017 (Dollars in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Amortization Period Core deposits $ 10,658 $ (3,440 ) $ 7,218 10 years Customer relationships 17,561 (3,013 ) 14,548 7-15 years Non-compete agreements 221 (24 ) 197 5 years Loan servicing rights 1,821 (1,092 ) 729 10-30 years Favorable lease asset 1,932 (212 ) 1,720 10 months-18 years Total intangible assets $ 32,193 $ (7,781 ) $ 24,412 December 31, 2016 (Dollars in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Amortization Period Core deposits $ 13,128 $ (5,630 ) $ 7,498 10 years Customer relationships 17,561 (2,612 ) 14,949 7-15 years Non-compete agreements 1,006 (728 ) 278 6 months- 5 years Loan servicing rights 1,708 (1,067 ) 641 10-30 years Favorable lease asset 458 (116 ) 342 10 months-15 years Total intangible assets $ 33,861 $ (10,153 ) $ 23,708 |
Schedule of Estimated Amortization Expense of Intangibles | The following table shows the estimated future amortization expense related to our intangible assets: (Dollars in thousands) Amortization of Intangibles Remaining in 2017 $ 2,287 2018 2,965 2019 2,897 2020 2,701 2021 2,329 Thereafter 11,233 Total $ 24,412 |
Associate Benefit Plans (Tables
Associate Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost Components of Postretirement Benefits | The following are disclosures of the net periodic benefit cost components of postretirement medical benefits measured at January 1, 2017 and 2016. Three months ended March 31, (Dollars in thousands) 2017 2016 Service cost $ 15 $ 15 Interest cost 19 19 Prior service cost amortization (19 ) (7 ) Net gain recognition (16 ) (15 ) Net periodic benefit cost $ (1 ) $ 12 The following table shows the net periodic benefit cost components for the Alliance Associate Pension Plan benefits measured at January 1, 2017. (Dollars in thousands) Three months ended March 31, 2017 Service cost $ 10 Interest cost 75 Expected Return on Plan Assets (135 ) Prior service cost amortization — Net gain recognition — Net periodic benefit cost $ (50 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Assumptions for Options Issued | The following table summarizes the assumptions we used to value options issued during the three months ended March 31, 2017 and 2016 : March 31, 2017 March 31, 2016 Expected Term (in years) 5.3 5.3 Volatility 24.85 % 29.60 % Weighted-average risk free interest rate 1.95 % 1.24 % Dividend Yield 0.6 % 0.8 % |
Summary of Options Including Non-Plan Stock Options | The following table summarizes our stock option activity for the three months ended March 31, 2017 . Three months ended March 31, 2017 Shares Weighted- Average Exercise Price Stock Options: Outstanding at beginning of period 1,547,980 17.83 Granted 45,134 47.05 Exercised (117,612 ) 15.47 Forfeited (750 ) 15.83 Outstanding at end of period 1,474,752 18.91 Nonvested at end of period 424,459 23.64 Exercisable at end of period 1,050,293 17.00 Weighted-average fair value of options granted $ 11.50 |
Schedule of Nonvested Stock Option Outstanding | The following table provides information about our nonvested stock options outstanding at March 31, 2017 : March 31, 2017 Shares Weighted- Average Exercise Price Stock Options: Nonvested at beginning of period $ 704,421 $ 19.08 Granted 45,134 47.05 Forfeited (750 ) 15.83 Vested during period (324,346 ) 17.01 Nonvested at end of period $ 424,459 23.64 |
Schedule of RSAs and RSUs | The following table summarizes the Company’s RSAs and RSUs, including performance awards, and changes during the three months ended March 31, 2017: Three months ended March 31, 2017 Units (in whole) Weighted Average Grant-Date Fair Value per Unit Outstanding at beginning of period $ 135,592 $ 27.14 Granted 36,523 47.05 Vested (33,803 ) 20.22 Forfeited (1,823 ) 27.21 Outstanding at end of period $ 136,489 34.20 |
Fair Value Disclosures of Fin37
Fair Value Disclosures of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Carried at Fair Value | The following tables present financial instruments carried at fair value as of March 31, 2017 and December 31, 2016 by level in the valuation hierarchy (as described above): March 31, 2017 (Dollars in thousands) Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Assets measured at fair value on a recurring basis: Available-for-sale securities: CMO $ — $ 277,711 $ — $ 277,711 FNMA MBS — 386,051 — 386,051 FHLMC MBS — 64,171 — 64,171 GNMA MBS — 27,597 — 27,597 GSE — 32,981 — 32,981 Other investments 614 — — 614 Other assets — 1,108 — 1,108 Total assets measured at fair value on a recurring basis $ 614 $ 789,619 $ — $ 790,233 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 3,194 $ — $ 3,194 Assets measured at fair value on a nonrecurring basis: Other real estate owned $ — $ — $ 3,582 $ 3,582 Loans held for sale — 29,394 — 29,394 Impaired loans, net — — 62,443 62,443 Total assets measured at fair value on a nonrecurring basis $ — $ 29,394 $ 66,025 $ 95,419 |
Book Value and Estimated Fair Value of Financial Instruments | The book value and estimated fair value of our financial instruments are as follows: (Dollars in thousands) Fair Value March 31, 2017 December 31, 2016 Measurement Book Value Fair Value Book Value Fair Value Financial assets: Cash and cash equivalents Level 1 $ 855,263 $ 855,263 $ 821,923 $ 821,923 Investment securities available for sale See previous table 789,125 789,125 794,543 794,543 Investment securities held to maturity Level 2 163,611 163,241 164,346 163,232 Loans, held for sale Level 2 29,394 29,394 54,782 54,782 Loans, net (1)(2) Level 2, 3 4,489,708 4,450,924 4,397,876 4,300,963 Impaired loans, net Level 3 62,443 62,443 46,499 46,499 Stock in FHLB of Pittsburgh Level 2 20,002 20,002 38,248 38,248 Accrued interest receivable Level 2 16,712 16,712 17,027 17,027 Other assets Level 3 13,920 28,527 9,189 15,787 Financial liabilities: Deposits Level 2 5,376,830 5,040,211 4,738,438 4,423,921 Borrowed funds Level 2 700,849 697,952 1,267,447 1,264,170 Standby letters of credit Level 3 507 507 468 468 Accrued interest payable Level 2 2,931 2,931 1,151 1,151 Other liabilities Level 2 3,194 3,194 3,380 3,380 (1) Excludes impaired loans, net. (2) |
Derivative Financial Instrume38
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | The table below presents the fair value of our derivative financial instruments as well as their location on the Consolidated Statements of Financial Condition as of March 31, 2017 . Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Liability Derivatives (Fair Value) Derivatives designated as hedging instruments: Interest rate products 3 $ 75,000 Other Liabilities $ 3,039 Total derivatives designated as hedging instruments $ 3,039 |
Summary of Company's Derivative Financial Instruments | he table below presents the effect of the derivative financial instruments on the Consolidated Statements of Income for the three months ended March 31, 2017 and March 31, 2016 . (Dollars in thousands) Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) Location of (Loss) or Gain Reclassified from Accumulated OCI into Income (Effective Portion) Three months ended March 31, Derivatives in Cash Flow Hedging Relationships 2017 2016 Interest Rate Products $ (3,039 ) $ — Interest expense Total $ (3,039 ) $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Details of Segment Information | Segment information for the three months ended March 31, 2017 and 2016 is as follows: Three months ended March 31, 2017 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Management Total Statement of Income External customer revenues: Interest income $ 58,688 $ — $ 2,138 $ 60,826 Noninterest income 10,167 9,677 8,248 28,092 Total external customer revenues 68,855 9,677 10,386 88,918 Inter-segment revenues: Interest income 1,996 — 2,065 4,061 Noninterest income 2,164 191 36 2,391 Total inter-segment revenues 4,160 191 2,101 6,452 Total revenue 73,015 9,868 12,487 95,370 External customer expenses: Interest expense 7,463 — 260 7,723 Noninterest expenses 38,960 6,135 6,411 51,506 Provision for loan losses 1,716 — 446 2,162 Total external customer expenses 48,139 6,135 7,117 61,391 Inter-segment expenses: Interest expense 2,065 1,405 591 4,061 Noninterest expenses 227 715 1,449 2,391 Total inter-segment expenses 2,292 2,120 2,040 6,452 Total expenses 50,431 8,255 9,157 67,843 Income before taxes $ 22,584 $ 1,613 $ 3,330 $ 27,527 Income tax provision 8,590 Consolidated net income 18,937 Capital expenditures $ 2,088 $ 22 $ 254 $ 2,364 March 31, 2017 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Management Total Statement of Financial Condition Cash and cash equivalents $ 99,812 $ 751,201 $ 4,250 $ 855,263 Goodwill 145,761 — 20,199 165,960 Other segment assets 5,608,912 4,097 218,667 5,831,676 Total segment assets $ 5,854,485 $ 755,298 $ 243,116 $ 6,852,899 Three months ended March 31, 2016 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Management Total Statement of Income External customer revenues: Interest income $ 48,038 $ — $ 2,008 $ 50,046 Noninterest income 9,852 8,271 (r) 5,545 23,668 Total external customer revenues 57,890 8,271 7,553 73,714 Inter-segment revenues: Interest income 1,061 — 1,895 2,956 Noninterest income 2,060 193 24 2,277 Total inter-segment revenues 3,121 193 1,919 5,233 Total revenue 61,011 8,464 9,472 78,947 External customer expenses: Interest expense 4,497 — 193 4,690 Noninterest expenses 33,812 5,448 (r) 4,537 43,797 Provision for loan losses 815 — (35 ) 780 Total external customer expenses 39,124 5,448 4,695 49,267 Inter-segment expenses Interest expense 1,895 555 506 2,956 Noninterest expenses 217 715 1,345 2,277 Total inter-segment expenses 2,112 1,270 1,851 5,233 Total expenses 41,236 6,718 6,546 54,500 Income before taxes $ 19,775 $ 1,746 $ 2,926 $ 24,447 Income tax provision 8,677 Consolidated net income 15,770 Capital expenditures $ 1,211 $ 20 $ 2 $ 1,233 December 31, 2016 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Management Total Statement of Financial Condition Cash and cash equivalents $ 100,893 $ 717,643 $ 3,387 $ 821,923 Goodwill 147,396 — 20,143 167,539 Other segment assets 5,545,611 3,533 226,664 5,775,808 Total segment assets $ 5,793,900 $ 721,176 $ 250,194 $ 6,765,270 (r) Noninterest income and Noninterest expense for the period ended March 31, 2016 have been restated to correct an immaterial error related to revenue earned for cash servicing fees. See Note 1 - Basis of Presentation for further information. |
Change in Accumulated Other C40
Change in Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income | Changes to accumulated other comprehensive (loss) income by component are shown net of taxes in the following tables for the period indicated: (Dollars in thousands) Net change in investment securities available for sale Net change in securities held to maturity Net change in defined benefit plan Net change in fair value of derivative used for cash flow hedge Total Balance, December 31, 2016 $ (8,194 ) $ 1,392 $ 957 $ (1,772 ) $ (7,617 ) Other comprehensive income (loss) before reclassifications 1,272 — — (112 ) 1,160 Less: Amounts reclassified from accumulated other comprehensive loss (206 ) (101 ) (23 ) — (330 ) Net current-period other comprehensive income (loss) 1,066 (101 ) (23 ) (112 ) 830 Balance, March 31, 2017 $ (7,128 ) $ 1,291 $ 934 $ (1,884 ) $ (6,787 ) Balance, December 31, 2015 $ (1,887 ) $ 1,795 $ 788 $ — $ 696 Other comprehensive income before reclassifications 10,572 — — — 10,572 Less: Amounts reclassified from accumulated other comprehensive income (189 ) (103 ) 478 — 186 Net current-period other comprehensive income (loss) 10,383 (103 ) 478 — 10,758 Balance, March 31, 2016 $ 8,496 $ 1,692 $ 1,266 $ — $ 11,454 |
Components of Other Comprehensive Income (Loss) | The Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below: Affected line item in Three Months Ended Consolidated (Dollars in thousands) March 31, Statements of Income 2017 2016 Securities available for sale: Realized gains on securities transactions $ (320 ) $ (305 ) Security gains, net Income taxes 114 116 Income tax provision Net of tax $ (206 ) $ (189 ) Net unrealized holding gains on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized gains to income during the period $ (160 ) $ (168 ) Interest income on investment securities Income taxes 59 65 Income tax provision Net of tax $ (101 ) $ (103 ) Amortization of Defined Benefit Pension items: Prior service (credits) costs $ (19 ) $ (7 ) Actuarial (gains) losses (16 ) 791 Total before tax $ (35 ) $ 784 Salaries, benefits and other compensation Income taxes 12 (306 ) Income tax provision Net of tax (23 ) 478 Total reclassifications $ (330 ) $ 186 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 3 Months Ended | |||
Mar. 31, 2017USD ($)SubsidiaryOffice | Dec. 31, 2016USD ($) | Jun. 13, 2016USD ($) | Dec. 31, 2012USD ($) | |
Basis Of Presentation [Line Items] | ||||
Number of unconsolidated affiliate | 1 | |||
Number of banking offices | 77 | |||
Senior debt | $ | $ 152,177,000 | $ 152,050,000 | ||
Senior Unsecured Fixed - to - Floating Rate Notes | ||||
Basis Of Presentation [Line Items] | ||||
Senior unsecured fixed-to-floating rate notes, issued amount | $ | $ 100,000,000 | |||
Interest rate on unsecured debt | 4.50% | |||
Senior unsecured notes, redemption price percentage of principal | 100.00% | |||
Senior Unsecured Fixed - to - Floating Rate Notes | London Interbank Offered Rate (LIBOR) | ||||
Basis Of Presentation [Line Items] | ||||
Senior unsecured notes, variable rate added to LIBOR | 3.30% | |||
Delaware | ||||
Basis Of Presentation [Line Items] | ||||
Number of banking offices | 46 | |||
Pennsylvania | ||||
Basis Of Presentation [Line Items] | ||||
Number of banking offices | 29 | |||
Virginia | ||||
Basis Of Presentation [Line Items] | ||||
Number of banking offices | 1 | |||
Nevada | ||||
Basis Of Presentation [Line Items] | ||||
Number of banking offices | 1 | |||
WSFS Financial Corporation | ||||
Basis Of Presentation [Line Items] | ||||
Number of wholly-owned subsidiaries | Subsidiary | 3 | |||
Senior notes due 2019 | ||||
Basis Of Presentation [Line Items] | ||||
Interest rate on unsecured debt | 6.25% | |||
Senior debt | $ | $ 55,000,000 |
Basis of Presentation - Correct
Basis of Presentation - Correction of Prior Period Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Noninterest income - Other revenue | $ 5,196 | $ 4,570 |
Noninterest expense - Other operating expense | $ 9,119 | 7,659 |
Immaterial error, cash servicing fees | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Noninterest income - Other revenue | 4,570 | |
Noninterest expense - Other operating expense | 7,659 | |
Immaterial error, cash servicing fees | As originally reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Noninterest income - Other revenue | 3,972 | |
Noninterest expense - Other operating expense | 7,061 | |
Immaterial error, cash servicing fees | Adjustments | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Noninterest income - Other revenue | 598 | |
Noninterest expense - Other operating expense | $ 598 |
Business Combinations - Summary
Business Combinations - Summary of Consideration Paid and Fair Value of Identifiable Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Aug. 12, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Liabilities assumed: | |||
Goodwill resulting from acquisition of Penn Liberty | $ 165,960 | $ 167,539 | |
Penn Liberty Financial Corporation | |||
Liabilities assumed: | |||
Goodwill resulting from acquisition of Penn Liberty | $ 67,179 | $ 68,814 | |
Pennsylvania | Penn Liberty Financial Corporation | |||
Consideration Transferred: | |||
Common shares issued (1,806,748) | $ 68,352 | ||
Common shares issued (in shares) | 1,806,748 | ||
Cash paid to Penn Liberty stock and option holders | $ 40,549 | ||
Value of consideration | 108,901 | ||
Assets acquired: | |||
Cash and due from banks | 102,301 | ||
Investment securities | 627 | ||
Loans | 483,482 | ||
Premises and equipment | 6,817 | ||
Deferred income taxes | 6,542 | ||
Bank owned life insurance | 8,666 | ||
Core deposit intangible | 2,882 | ||
Other real estate owned | 996 | ||
Other assets | 12,092 | ||
Total assets | 624,405 | ||
Liabilities assumed: | |||
Deposits | 568,706 | ||
Other borrowings | 10,000 | ||
Other liabilities | 3,977 | ||
Total liabilities | 582,683 | ||
Net assets acquired: | 41,722 | ||
Goodwill resulting from acquisition of Penn Liberty | $ 67,179 |
Business Combinations - Summa44
Business Combinations - Summary of Changes to Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill resulting from the acquisition beginning balance | $ 167,539 |
Goodwill resulting from the acquisition ending balance | 165,960 |
Penn Liberty Financial Corporation | |
Goodwill [Roll Forward] | |
Goodwill resulting from the acquisition beginning balance | 68,814 |
Goodwill resulting from the acquisition ending balance | 67,179 |
Deferred income taxes | Penn Liberty Financial Corporation | |
Goodwill [Roll Forward] | |
Effects of adjustments to | 880 |
Other assets | Penn Liberty Financial Corporation | |
Goodwill [Roll Forward] | |
Effects of adjustments to | (1,447) |
Other liabilities | Penn Liberty Financial Corporation | |
Goodwill [Roll Forward] | |
Effects of adjustments to | $ (1,068) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net Income | $ 18,937 | $ 15,770 |
Denominator: | ||
Weighted average basic shares (in shares) | 31,407 | 29,671 |
Dilutive potential common shares (in shares) | 942 | 558 |
Weighted average fully diluted shares (in shares) | 32,349 | 30,229 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.60 | $ 0.53 |
Diluted (in dollars per share) | $ 0.59 | $ 0.52 |
Outstanding common stock equivalents having no dilutive effect (in shares) | 22 | 42 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)secuirty | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Trading securities | $ 0 | ||
Available-for-sale securities, amortized cost basis | 800,612,000 | $ 807,761,000 | |
Securities pledged as collateral | 615,800,000 | 562,500,000 | |
Proceeds from sale of investment securities | 263,000,000 | $ 38,900,000 | |
Gains from sale of Available-for-sale securities | $ 300,000 | 300,000 | |
Security sold | secuirty | 1 | ||
Losses from sale of Available-for-sale securities | $ 0 | $ 0 | |
Unamortized premiums | 16,300,000 | 18,000,000 | |
Unaccreted discounts | 600,000 | 400,000 | |
Owned investment securities | 612,300,000 | ||
Total unrealized losses on securities | $ 14,700,000 | ||
Number of securities, below investment grade | secuirty | 1 | ||
Available-for-sale securities, below investment grade, fair value | $ 1,000,000 | ||
Weighted average duration of MBS portfolio | 5 years 4 months 2 days | ||
Mortgage-Backed Securities (MBS) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
OTTI on evaluation of securities | $ 0 | 0 | |
Mutual Fund | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities, amortized cost basis | 600,000 | 600,000 | |
State and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities transferred from available-for-sale to held-to-maturity, net unrealized gain | $ 2,100,000 | $ 2,200,000 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 800,612 | $ 807,761 |
Gross Unrealized Gain | 2,164 | 1,963 |
Gross Unrealized Loss | 13,651 | 15,181 |
Investment securities available for sale | 789,125 | 794,543 |
Held-to-Maturity Securities, Amortized Cost | 163,611 | 164,346 |
Held-to-Maturity Securities, Fair Value | 163,241 | 163,232 |
CMO | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 280,576 | 264,607 |
Gross Unrealized Gain | 699 | 566 |
Gross Unrealized Loss | 3,564 | 3,957 |
Investment securities available for sale | 277,711 | 261,216 |
FNMA MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 393,356 | 414,218 |
Gross Unrealized Gain | 984 | 950 |
Gross Unrealized Loss | 8,289 | 9,404 |
Investment securities available for sale | 386,051 | 405,764 |
FHLMC MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 65,228 | 64,709 |
Gross Unrealized Gain | 204 | 135 |
Gross Unrealized Loss | 1,261 | 1,330 |
Investment securities available for sale | 64,171 | 63,514 |
GNMA MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 27,767 | 28,540 |
Gross Unrealized Gain | 275 | 303 |
Gross Unrealized Loss | 445 | 427 |
Investment securities available for sale | 27,597 | 28,416 |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 634 | 626 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 20 | 3 |
Investment securities available for sale | 614 | 623 |
GSE | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 33,051 | 35,061 |
Gross Unrealized Gain | 2 | 9 |
Gross Unrealized Loss | 72 | 60 |
Investment securities available for sale | 32,981 | 35,010 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-Maturity Securities, Amortized Cost | 163,611 | 164,346 |
Held-to-Maturity Securities, Gross Unrealized Gain | 646 | 271 |
Held-to-Maturity Securities, Gross Unrealized Loss | 1,016 | 1,385 |
Held-to-Maturity Securities, Fair Value | $ 163,241 | $ 163,232 |
Investment Securities - Sched48
Investment Securities - Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities, amortized cost within one year | $ 20,012 | $ 16,009 |
Available-for-sale securities, amortized cost after one year but within five years | 18,059 | 19,052 |
Available-for-sale securities, amortized cost after five years but within ten years | 210,595 | 276,635 |
Available-for-sale securities, amortized cost after ten years | 551,312 | 495,439 |
Available-for-sale securities, amortized cost total | 799,978 | 807,135 |
Available-for-sale securities, fair value within one year | 19,997 | 16,017 |
Available-for-sale securities, fair value after one year but within five years | 17,981 | 18,992 |
Available-for-sale securities, fair value after five years but within ten years | 205,242 | 270,300 |
Available-for-sale securities, fair value after ten years | 545,291 | 488,611 |
Available-for-sale securities, fair value total | 788,511 | 793,920 |
Held-to-maturity securities, amortized cost within one year | 0 | 0 |
Held-to-maturity securities, amortized cost after one year but within five years | 5,940 | 6,168 |
Held-to-maturity securities, amortized cost after five years but within ten years | 10,482 | 8,882 |
Held-to-maturity securities, amortized cost after ten years | 147,189 | 149,296 |
Held-to-Maturity Securities, Amortized Cost | 163,611 | 164,346 |
Held-to-maturity securities, fair value within one year | 0 | 0 |
Held-to-maturity securities, fair value after one year but within five years | 5,975 | 6,162 |
Held-to-maturity securities, after five years but within ten years | 10,511 | 8,870 |
Held-to-maturity securities, after ten years | 146,755 | 148,200 |
Held-to-maturity securities, fair value total | $ 163,241 | $ 163,232 |
Investment Securities - Sched49
Investment Securities - Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Less than 12 months, Fair Value | $ 522,016 | $ 550,952 |
Available-for-sale securities, Less than 12 months, Unrealized Loss | 13,556 | 15,091 |
Available-for-sale securities, 12 months or longer, Fair Value | 4,239 | 4,654 |
Available-for-sale securities, 12 months or longer, Unrealized Loss | 95 | 90 |
Available-for-sale securities, Total, Fair Value | 526,255 | 555,606 |
Available-for-sale securities, Total, Unrealized Loss | 13,651 | 15,181 |
Held-to-maturity, Less than 12 months, Fair Value | 84,121 | 112,642 |
Held-to-maturity, Less than 12 months, Unrealized Loss | 969 | 1,374 |
Held-to-maturity, 12 months or longer, Fair Value | 1,960 | 695 |
Held-to-maturity, 12 months or longer, Unrealized Loss | 47 | 11 |
Held-to-maturity, Total, Fair Value | 86,081 | 113,337 |
Held-to-maturity, Total, Unrealized Loss | 1,016 | 1,385 |
CMO | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Less than 12 months, Fair Value | 161,225 | 160,572 |
Available-for-sale securities, Less than 12 months, Unrealized Loss | 3,469 | 3,867 |
Available-for-sale securities, 12 months or longer, Fair Value | 4,239 | 4,654 |
Available-for-sale securities, 12 months or longer, Unrealized Loss | 95 | 90 |
Available-for-sale securities, Total, Fair Value | 165,464 | 165,226 |
Available-for-sale securities, Total, Unrealized Loss | 3,564 | 3,957 |
FNMA MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Less than 12 months, Fair Value | 276,175 | 50,878 |
Available-for-sale securities, Less than 12 months, Unrealized Loss | 8,289 | 1,330 |
Available-for-sale securities, 12 months or longer, Fair Value | 0 | 0 |
Available-for-sale securities, 12 months or longer, Unrealized Loss | 0 | 0 |
Available-for-sale securities, Total, Fair Value | 276,175 | 50,878 |
Available-for-sale securities, Total, Unrealized Loss | 8,289 | 1,330 |
FHLMC MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Less than 12 months, Fair Value | 41,765 | 300,403 |
Available-for-sale securities, Less than 12 months, Unrealized Loss | 1,261 | 9,404 |
Available-for-sale securities, 12 months or longer, Fair Value | 0 | 0 |
Available-for-sale securities, 12 months or longer, Unrealized Loss | 0 | 0 |
Available-for-sale securities, Total, Fair Value | 41,765 | 300,403 |
Available-for-sale securities, Total, Unrealized Loss | 1,261 | 9,404 |
GNMA MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Less than 12 months, Fair Value | 16,236 | 16,480 |
Available-for-sale securities, Less than 12 months, Unrealized Loss | 445 | 427 |
Available-for-sale securities, 12 months or longer, Fair Value | 0 | 0 |
Available-for-sale securities, 12 months or longer, Unrealized Loss | 0 | 0 |
Available-for-sale securities, Total, Fair Value | 16,236 | 16,480 |
Available-for-sale securities, Total, Unrealized Loss | 445 | 427 |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Less than 12 months, Fair Value | 634 | 623 |
Available-for-sale securities, Less than 12 months, Unrealized Loss | 20 | 3 |
Available-for-sale securities, 12 months or longer, Fair Value | 0 | 0 |
Available-for-sale securities, 12 months or longer, Unrealized Loss | 0 | 0 |
Available-for-sale securities, Total, Fair Value | 634 | 623 |
Available-for-sale securities, Total, Unrealized Loss | 20 | 3 |
GSE | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, Less than 12 months, Fair Value | 25,981 | 21,996 |
Available-for-sale securities, Less than 12 months, Unrealized Loss | 72 | 60 |
Available-for-sale securities, 12 months or longer, Fair Value | 0 | 0 |
Available-for-sale securities, 12 months or longer, Unrealized Loss | 0 | 0 |
Available-for-sale securities, Total, Fair Value | 25,981 | 21,996 |
Available-for-sale securities, Total, Unrealized Loss | 72 | 60 |
State and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Fair Value | 84,121 | 112,642 |
Held-to-maturity, Less than 12 months, Unrealized Loss | 969 | 1,374 |
Held-to-maturity, 12 months or longer, Fair Value | 1,960 | 695 |
Held-to-maturity, 12 months or longer, Unrealized Loss | 47 | 11 |
Held-to-maturity, Total, Fair Value | 86,081 | 113,337 |
Held-to-maturity, Total, Unrealized Loss | $ 1,016 | $ 1,385 |
Loans - Summary of Loan Portfol
Loans - Summary of Loan Portfolio by Category (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 4,577,628 | $ 4,469,216 | $ 3,803,713 | |
Deferred fees, net | 8,156 | 7,673 | ||
Allowance for loan losses | 39,826 | 39,751 | 37,556 | $ 37,089 |
Net loans | 4,552,151 | 4,444,375 | ||
Reverse mortgage, fair value | 22,500 | 22,600 | 24,700 | |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 464,898 | 450,029 | 359,656 | |
Allowance for loan losses | 6,241 | 6,012 | 5,954 | 5,964 |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 1,339,867 | 1,287,731 | ||
Owner-occupied commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 1,092,292 | 1,078,162 | 895,457 | |
Allowance for loan losses | 6,030 | 6,588 | 6,702 | 6,670 |
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 1,165,556 | 1,163,554 | 987,066 | |
Allowance for loan losses | 8,335 | 8,915 | 6,516 | 6,487 |
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 255,760 | 222,712 | 227,348 | |
Allowance for loan losses | 2,961 | 2,838 | $ 3,609 | $ 3,521 |
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 281,760 | 289,611 | ||
Financing Receivable Portfolio Segment, Including Reverse Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 4,600,133 | $ 4,491,799 |
Loans - Schedule of Outstanding
Loans - Schedule of Outstanding Principal Balance and Carrying Amounts for Acquired Credit-Impaired Loans (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Outstanding principal balance | $ 38,418 | $ 41,574 |
Carrying amount | 30,783 | 33,104 |
Allowance for loan losses | $ 464 | $ 510 |
Loans - Summary of Changes in A
Loans - Summary of Changes in Accretable Yield on Acquired Credit Impaired Loans (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | $ 5,150 |
Accretion | (792) |
Reclassification from nonaccretable difference | (144) |
Additions/adjustments | (112) |
Disposals | 0 |
Balance at the end of the period | $ 4,102 |
Allowance for Loan Losses and53
Allowance for Loan Losses and Credit Quality Information - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($)SecurityLoan | Mar. 31, 2017USD ($)loan | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)SecurityLoan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Net charge-offs | $ 2,100,000 | $ 300,000 | |||||
Percentage of average loans annualized, charged-offs | 0.19% | 0.03% | |||||
Reverse mortgage, fair value | $ 22,500,000 | $ 22,500,000 | 22,500,000 | $ 22,500,000 | $ 22,500,000 | $ 24,700,000 | $ 22,600,000 |
Performing TDRs | 17,260,000 | 13,900,000 | 14,336,000 | ||||
Acquired nonimpaired loans | 675,607,000 | 675,607,000 | 675,607,000 | 675,607,000 | 675,607,000 | 354,694,000 | 724,100,000 |
Acquired impaired loans | 10,700,000 | 10,700,000 | 10,700,000 | 10,700,000 | 10,700,000 | 12,800,000 | |
Contractual principal balance | 11,800,000 | 11,800,000 | 11,800,000 | 11,800,000 | 11,800,000 | 15,000,000 | |
Interest income on impaired loans | 300,000 | 200,000 | |||||
Accrued troubled debt restructured loans | 13,700,000 | 13,700,000 | 13,700,000 | 13,700,000 | 13,700,000 | 12,400,000 | |
Total TDRs | 28,038,000 | 28,038,000 | 28,038,000 | 28,038,000 | 28,038,000 | 22,787,000 | |
Nonperforming TDRs | 10,778,000 | 8,451,000 | |||||
Troubled debt restructuring related reserves | $ 1,900,000 | 1,900,000 | 1,900,000 | $ 1,900,000 | $ 1,900,000 | $ 1,300,000 | |
Number of term loans modified in troubled debt restructurings | SecurityLoan | 12 | ||||||
Maturity Date Extension | SecurityLoan | 4 | ||||||
Usual sustained repayment performance period | 6 months | ||||||
TRD defaulted | 7 | 3 | |||||
Subsequent default, loan amount | 700,000 | ||||||
Commercial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Acquired nonimpaired loans | $ 141,933,000 | 141,933,000 | 141,933,000 | $ 141,933,000 | $ 141,933,000 | 107,380,000 | |
Number of commercial loans | SecurityLoan | 7 | 7 | |||||
Total loans outstanding,commercial loans | 2,200,000 | 2,200,000 | 2,200,000 | $ 2,200,000 | 2,200,000 | $ 3,600,000 | |
Number of term loans modified in troubled debt restructurings | SecurityLoan | 1 | ||||||
Maturity Date Extension | SecurityLoan | 1 | ||||||
TRD defaulted | SecurityLoan | 0 | ||||||
Residential | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Acquired nonimpaired loans | 85,679,000 | 85,679,000 | 85,679,000 | $ 85,679,000 | 85,679,000 | 73,240,000 | |
Number of residential loans in the process of foreclosure | SecurityLoan | 39 | 29 | |||||
Total loans outstanding, residential loans | 4,900,000 | $ 3,700,000 | |||||
Number of term loans modified in troubled debt restructurings | SecurityLoan | 1 | ||||||
Maturity Date Extension | SecurityLoan | 0 | ||||||
TRD defaulted | SecurityLoan | 1 | ||||||
Consumer | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Acquired nonimpaired loans | $ 50,321,000 | 50,321,000 | 50,321,000 | $ 50,321,000 | 50,321,000 | 15,803,000 | |
Number of term loans modified in troubled debt restructurings | SecurityLoan | 7 | ||||||
Maturity Date Extension | SecurityLoan | 0 | ||||||
TRD defaulted | SecurityLoan | 6 | ||||||
Minimum | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Period for impairment loans | 90 days | ||||||
Maximum | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Increase in allowance for loan losses (less than) | 300,000 | 0 | |||||
Troubled debt restructurings charged off (less than) | 0 | $ 100,000 | |||||
Total Residential and Consumer | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Acquired nonimpaired loans | $ 136,000,000 | 136,000,000 | 136,000,000 | $ 136,000,000 | 136,000,000 | 150,500,000 | |
Impairment loans, charge off period | 90 days | ||||||
Total Commercial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Acquired nonimpaired loans | $ 539,600,000 | $ 539,600,000 | $ 539,600,000 | $ 539,600,000 | $ 539,600,000 | $ 573,500,000 |
Allowance for Loan Losses and54
Allowance for Loan Losses and Credit Quality Information - Schedule of Allowance for Loan Losses and Loan Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Allowance for loan losses | |||
Beginning balance | $ 39,751 | $ 37,089 | $ 37,089 |
Charge-offs | (2,719) | (867) | |
Recoveries | 632 | 554 | |
Provision (credit) | 2,114 | 907 | |
Provision for acquired loans | 48 | (127) | |
Ending balance | 39,826 | 37,556 | 39,751 |
Loans individually evaluated for impairment | 4,836 | 2,803 | |
Loans collectively evaluated for impairment | 34,526 | 34,634 | |
Acquired loans evaluated for impairment | 464 | 119 | |
Ending balance | 39,826 | 37,556 | |
Loans individually evaluated for impairment | 56,997 | 33,700 | |
Loans collectively evaluated for impairment | 3,813,777 | 3,383,035 | |
Acquired nonimpaired loans | 675,607 | 354,694 | 724,100 |
Acquired impaired loans | 31,247 | 32,284 | 33,614 |
Ending balance | 4,577,628 | 3,803,713 | 4,469,216 |
Owner-occupied commercial | |||
Allowance for loan losses | |||
Beginning balance | 6,588 | 6,670 | 6,670 |
Charge-offs | (192) | 0 | |
Recoveries | 75 | 38 | |
Provision (credit) | (441) | (6) | |
Provision for acquired loans | 0 | 0 | |
Ending balance | 6,030 | 6,702 | 6,588 |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 6,015 | 6,680 | |
Acquired loans evaluated for impairment | 15 | 22 | |
Ending balance | 6,030 | 6,702 | |
Loans individually evaluated for impairment | 4,020 | 1,270 | |
Loans collectively evaluated for impairment | 919,508 | 839,819 | |
Acquired nonimpaired loans | 156,724 | 49,765 | |
Acquired impaired loans | 12,040 | 4,603 | 12,122 |
Ending balance | 1,092,292 | 895,457 | 1,078,162 |
Commercial mortgages | |||
Allowance for loan losses | |||
Beginning balance | 8,915 | 6,487 | 6,487 |
Charge-offs | (104) | (17) | |
Recoveries | 46 | 79 | |
Provision (credit) | (518) | (37) | |
Provision for acquired loans | (4) | 4 | |
Ending balance | 8,335 | 6,516 | 8,915 |
Loans individually evaluated for impairment | 1,395 | 0 | |
Loans collectively evaluated for impairment | 6,763 | 6,427 | |
Acquired loans evaluated for impairment | 177 | 89 | |
Ending balance | 8,335 | 6,516 | |
Loans individually evaluated for impairment | 9,771 | 2,678 | |
Loans collectively evaluated for impairment | 928,925 | 893,036 | |
Acquired nonimpaired loans | 216,410 | 80,795 | |
Acquired impaired loans | 10,450 | 10,557 | 10,386 |
Ending balance | 1,165,556 | 987,066 | 1,163,554 |
Construction | |||
Allowance for loan losses | |||
Beginning balance | 2,838 | 3,521 | 3,521 |
Charge-offs | (14) | (26) | |
Recoveries | 2 | 46 | |
Provision (credit) | 158 | 72 | |
Provision for acquired loans | (23) | (4) | |
Ending balance | 2,961 | 3,609 | 2,838 |
Loans individually evaluated for impairment | 500 | 211 | |
Loans collectively evaluated for impairment | 2,397 | 3,398 | |
Acquired loans evaluated for impairment | 64 | 0 | |
Ending balance | 2,961 | 3,609 | |
Loans individually evaluated for impairment | 3,130 | 1,419 | |
Loans collectively evaluated for impairment | 225,718 | 194,654 | |
Acquired nonimpaired loans | 24,540 | 27,711 | |
Acquired impaired loans | 2,372 | 3,564 | 3,694 |
Ending balance | 255,760 | 227,348 | 222,712 |
Complexity Risk | |||
Allowance for loan losses | |||
Beginning balance | 1,010 | 1,010 | |
Charge-offs | 0 | ||
Recoveries | 0 | ||
Provision (credit) | 14 | ||
Provision for acquired loans | 0 | ||
Ending balance | 1,024 | ||
Loans individually evaluated for impairment | 0 | ||
Loans collectively evaluated for impairment | 1,024 | ||
Acquired loans evaluated for impairment | 0 | ||
Ending balance | 1,024 | ||
Loans individually evaluated for impairment | 0 | ||
Loans collectively evaluated for impairment | 0 | ||
Acquired nonimpaired loans | 0 | ||
Acquired impaired loans | 0 | ||
Ending balance | 0 | ||
Commercial | |||
Allowance for loan losses | |||
Beginning balance | 13,339 | 11,156 | 11,156 |
Charge-offs | (1,255) | (179) | |
Recoveries | 84 | 110 | |
Provision (credit) | 1,949 | 484 | |
Provision for acquired loans | 88 | (89) | |
Ending balance | 14,205 | 11,482 | 13,339 |
Loans individually evaluated for impairment | 1,860 | 1,473 | |
Loans collectively evaluated for impairment | 12,165 | 10,005 | |
Acquired loans evaluated for impairment | 180 | 4 | |
Ending balance | 14,205 | 11,482 | |
Loans individually evaluated for impairment | 16,767 | 5,278 | |
Loans collectively evaluated for impairment | 1,175,911 | 957,863 | |
Acquired nonimpaired loans | 141,933 | 107,380 | |
Acquired impaired loans | 5,256 | 12,600 | 6,183 |
Ending balance | 1,339,867 | 1,083,121 | 1,287,731 |
Residential | |||
Allowance for loan losses | |||
Beginning balance | 2,059 | 2,281 | 2,281 |
Charge-offs | (11) | (14) | |
Recoveries | 120 | 22 | |
Provision (credit) | (114) | (20) | |
Provision for acquired loans | 0 | 0 | |
Ending balance | 2,054 | 2,269 | 2,059 |
Loans individually evaluated for impairment | 887 | 911 | |
Loans collectively evaluated for impairment | 1,144 | 1,354 | |
Acquired loans evaluated for impairment | 23 | 4 | |
Ending balance | 2,054 | 2,269 | |
Loans individually evaluated for impairment | 14,280 | 15,260 | |
Loans collectively evaluated for impairment | 158,430 | 161,610 | |
Acquired nonimpaired loans | 85,679 | 73,240 | |
Acquired impaired loans | 866 | 955 | 860 |
Ending balance | 259,255 | 251,065 | 267,028 |
Consumer | |||
Allowance for loan losses | |||
Beginning balance | 6,012 | 5,964 | 5,964 |
Charge-offs | (1,143) | (631) | |
Recoveries | 305 | 259 | |
Provision (credit) | 1,080 | 400 | |
Provision for acquired loans | (13) | (38) | |
Ending balance | 6,241 | 5,954 | 6,012 |
Loans individually evaluated for impairment | 194 | 208 | |
Loans collectively evaluated for impairment | 6,042 | 5,746 | |
Acquired loans evaluated for impairment | 5 | 0 | |
Ending balance | 6,241 | 5,954 | |
Loans individually evaluated for impairment | 9,029 | 7,795 | |
Loans collectively evaluated for impairment | 405,285 | 336,053 | |
Acquired nonimpaired loans | 50,321 | 15,803 | |
Acquired impaired loans | 263 | 5 | 369 |
Ending balance | $ 464,898 | $ 359,656 | $ 450,029 |
Allowance for Loan Losses and55
Allowance for Loan Losses and Credit Quality Information - Summary of Nonaccrual and Past Due Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | $ 7,469 | $ 7,730 | |
Accruing Current Balances | 4,499,234 | 4,404,996 | |
Acquired Impaired Loans | 31,247 | $ 32,284 | 33,614 |
Nonaccrual Loans | 39,678 | 22,876 | |
Total Loans | $ 4,577,628 | 3,803,713 | $ 4,469,216 |
30-59 Days Past Due and Still Accruing, % of Total Loans | 0.08% | 0.12% | |
60-89 Days Past Due and Still Accruing, % of Total Loans | 0.04% | 0.04% | |
Greater Than 90 Days Past Due and Still Accruing, % of Total Loans | 0.04% | 0.01% | |
Total Past Due And Still Accruing, % of Total Loans | 0.16% | 0.17% | |
Accruing Current Balances, % of Total Loans | 98.29% | 98.56% | |
Acquired Impaired Loans, % of Total Loans | 0.68% | 0.75% | |
Nonaccrual Loans, % of Total Loans | 0.87% | 0.51% | |
% of Total Loans | 100.00% | 100.00% | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | $ 1,250 | $ 1,785 | |
Accruing Current Balances | 1,316,841 | 1,277,748 | |
Acquired Impaired Loans | 5,256 | 12,600 | 6,183 |
Nonaccrual Loans | 16,520 | 2,015 | |
Total Loans | 1,339,867 | 1,083,121 | 1,287,731 |
Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 2,989 | 3,967 | |
Accruing Current Balances | 250,443 | 257,234 | |
Acquired Impaired Loans | 866 | 955 | 860 |
Nonaccrual Loans | 4,957 | 4,967 | |
Total Loans | 259,255 | 251,065 | 267,028 |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 1,092 | 1,023 | |
Accruing Current Balances | 459,057 | 444,642 | |
Acquired Impaired Loans | 263 | 5 | 369 |
Nonaccrual Loans | 4,486 | 3,995 | |
Total Loans | 464,898 | 359,656 | 450,029 |
30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 4,006 | 5,490 | |
30–59 Days Past Due and Still Accruing | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 783 | 1,507 | |
30–59 Days Past Due and Still Accruing | Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 2,020 | 3,176 | |
30–59 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 374 | 392 | |
60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 1,698 | 1,802 | |
60–89 Days Past Due and Still Accruing | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 467 | 278 | |
60–89 Days Past Due and Still Accruing | Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 119 | 638 | |
60–89 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 612 | 346 | |
Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 1,765 | 438 | |
Greater Than 90 Days Past Due and Still Accruing | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 0 | |
Greater Than 90 Days Past Due and Still Accruing | Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 850 | 153 | |
Greater Than 90 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 106 | 285 | |
Owner-occupied commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 841 | 656 | |
Accruing Current Balances | 1,075,391 | 1,063,306 | |
Acquired Impaired Loans | 12,040 | 4,603 | 12,122 |
Nonaccrual Loans | 4,020 | 2,078 | |
Total Loans | 1,092,292 | 895,457 | 1,078,162 |
Owner-occupied commercial | 30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 341 | 116 | |
Owner-occupied commercial | 60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 500 | 540 | |
Owner-occupied commercial | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 0 | |
Commercial mortgages | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 794 | 167 | |
Accruing Current Balances | 1,144,617 | 1,143,180 | |
Acquired Impaired Loans | 10,450 | 10,557 | 10,386 |
Nonaccrual Loans | 9,695 | 9,821 | |
Total Loans | 1,165,556 | 987,066 | 1,163,554 |
Commercial mortgages | 30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 451 | 167 | |
Commercial mortgages | 60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 0 | |
Commercial mortgages | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 343 | 0 | |
Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 503 | 132 | |
Accruing Current Balances | 252,885 | 218,886 | |
Acquired Impaired Loans | 2,372 | 3,564 | 3,694 |
Nonaccrual Loans | 0 | 0 | |
Total Loans | 255,760 | $ 227,348 | 222,712 |
Construction | 30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 37 | 132 | |
Construction | 60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 0 | |
Construction | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | $ 466 | $ 0 |
Allowance for Loan Losses and56
Allowance for Loan Losses and Credit Quality Information - Analysis of Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | $ 67,743 | $ 51,600 |
Loans with No Related Reserve | 27,537 | 21,504 |
Loans with Related Reserve | 40,206 | 28,400 |
Related Reserve | 5,300 | 3,405 |
Contractual Principal Balances | 80,503 | 64,665 |
Average Loan Balances | 47,089 | 41,084 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 18,550 | 4,250 |
Loans with No Related Reserve | 2,598 | 1,395 |
Loans with Related Reserve | 15,952 | 2,855 |
Related Reserve | 2,040 | 505 |
Contractual Principal Balances | 20,197 | 5,572 |
Average Loan Balances | 7,535 | 5,053 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 15,000 | 14,256 |
Loans with No Related Reserve | 8,056 | 7,122 |
Loans with Related Reserve | 6,944 | 7,134 |
Related Reserve | 910 | 934 |
Contractual Principal Balances | 17,904 | 17,298 |
Average Loan Balances | 14,941 | 15,083 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 9,070 | 8,021 |
Loans with No Related Reserve | 7,526 | 6,561 |
Loans with Related Reserve | 1,544 | 1,460 |
Related Reserve | 199 | 215 |
Contractual Principal Balances | 11,578 | 11,978 |
Average Loan Balances | 8,191 | 7,910 |
Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 6,210 | 4,650 |
Loans with No Related Reserve | 4,020 | 2,078 |
Loans with Related Reserve | 2,190 | 2,572 |
Related Reserve | 15 | 15 |
Contractual Principal Balances | 6,372 | 5,129 |
Average Loan Balances | 4,155 | 3,339 |
Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 14,478 | 15,065 |
Loans with No Related Reserve | 4,220 | 4,348 |
Loans with Related Reserve | 10,258 | 10,717 |
Related Reserve | 1,572 | 1,433 |
Contractual Principal Balances | 19,906 | 20,716 |
Average Loan Balances | 9,288 | 7,323 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 4,435 | 3,662 |
Loans with No Related Reserve | 1,117 | 0 |
Loans with Related Reserve | 3,318 | 3,662 |
Related Reserve | 564 | 303 |
Contractual Principal Balances | 4,546 | 3,972 |
Average Loan Balances | $ 2,979 | 2,376 |
Collateral Dependent Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | $ 49,904 |
Allowance for Loan Losses and57
Allowance for Loan Losses and Credit Quality Information - Schedule of Commercial Credit Exposure (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial Loans | 100.00% | 100.00% |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 1,339,867 | $ 1,287,731 |
Special mention | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 17,590 | 17,630 |
Accrual | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 41,136 | 45,067 |
Nonaccrual | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 14,660 | 1,693 |
Doubtful | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 1,860 | $ 322 |
Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial Loans | 4.00% | 4.00% |
Total Special Mention and Substandard | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 75,246 | $ 64,712 |
Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial Loans | 1.00% | 1.00% |
Acquired impaired | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 5,256 | $ 6,183 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial Loans | 95.00% | 95.00% |
Pass | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 1,259,365 | $ 1,216,836 |
Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,092,292 | 1,078,162 |
Owner-occupied commercial | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 6,849 | 11,419 |
Owner-occupied commercial | Accrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 20,162 | 19,871 |
Owner-occupied commercial | Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 4,020 | 2,078 |
Owner-occupied commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 0 | 0 |
Owner-occupied commercial | Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 31,031 | 33,368 |
Owner-occupied commercial | Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 12,040 | 12,122 |
Owner-occupied commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,049,221 | 1,032,672 |
Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,165,556 | 1,163,554 |
Commercial mortgages | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 21,931 | 34,198 |
Commercial mortgages | Accrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 3,216 | 239 |
Commercial mortgages | Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 8,300 | 8,574 |
Commercial mortgages | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,395 | 1,247 |
Commercial mortgages | Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 34,842 | 44,258 |
Commercial mortgages | Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 10,450 | 10,386 |
Commercial mortgages | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,120,264 | 1,108,910 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 255,760 | 222,712 |
Construction | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,008 | 0 |
Construction | Accrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 4,489 | 2,193 |
Construction | Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 0 | 0 |
Construction | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 0 | 0 |
Construction | Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 5,497 | 2,193 |
Construction | Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 2,372 | 3,694 |
Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 247,891 | 216,825 |
Total Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 3,853,475 | 3,752,159 |
Total Commercial | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 47,378 | 63,247 |
Total Commercial | Accrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 69,003 | 67,370 |
Total Commercial | Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 26,980 | 12,345 |
Total Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 3,255 | 1,569 |
Total Commercial | Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 146,616 | 144,531 |
Total Commercial | Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 30,118 | 32,385 |
Total Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 3,676,741 | $ 3,575,243 |
Allowance for Loan Losses and58
Allowance for Loan Losses and Credit Quality Information - Schedule of Residential and Consumer Credit Exposure (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 4,577,628 | $ 4,469,216 | $ 3,803,713 |
Total | 100.00% | 100.00% | |
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 259,255 | $ 267,028 | 251,065 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 464,898 | 450,029 | $ 359,656 |
Nonperforming | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 14,280 | 13,547 | |
Nonperforming | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 9,030 | 7,863 | |
Performing | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 244,109 | 252,621 | |
Performing | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 455,605 | $ 441,797 | |
Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 1.00% | 1.00% | |
Acquired impaired | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 866 | $ 860 | |
Acquired impaired | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 263 | 369 | |
Total Residential and Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 724,153 | $ 717,057 | |
Total | 100.00% | 100.00% | |
Total Residential and Consumer | Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 23,310 | $ 21,410 | |
Total | 3.00% | 3.00% | |
Total Residential and Consumer | Performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 699,714 | $ 694,418 | |
Total | 97.00% | 97.00% | |
Total Residential and Consumer | Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 1,129 | $ 1,229 | |
Total | 0.00% | 0.00% |
Allowance for Loan Losses and59
Allowance for Loan Losses and Credit Quality Information - Schedule of Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Performing TDRs | $ 17,260 | $ 13,900 | $ 14,336 |
Nonperforming TDRs | 10,778 | 8,451 | |
Total TDRs | $ 28,038 | $ 22,787 |
Allowance for Loan Losses and60
Allowance for Loan Losses and Credit Quality Information - Schedule of Types of TDR (Detail) - 3 months ended Mar. 31, 2017 | SecurityLoan | loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity Date Extension | 4 | |
Discharged in bankruptcy | 7 | 3 |
Other | 1 | |
Total | 12 | |
Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity Date Extension | 1 | |
Discharged in bankruptcy | 0 | |
Other | 0 | |
Total | 1 | |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity Date Extension | 1 | |
Discharged in bankruptcy | 0 | |
Other | 0 | |
Total | 1 | |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity Date Extension | 2 | |
Discharged in bankruptcy | 0 | |
Other | 0 | |
Total | 2 | |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity Date Extension | 0 | |
Discharged in bankruptcy | 1 | |
Other | 0 | |
Total | 1 | |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity Date Extension | 0 | |
Discharged in bankruptcy | 6 | |
Other | 1 | |
Total | 7 |
Allowance for Loan Losses and61
Allowance for Loan Losses and Credit Quality Information - Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable, Modifications [Line Items] | ||
Total loans identified during the period | $ 6,052 | $ 1,813 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Total loans identified during the period | 443 | 984 |
Commercial mortgages | ||
Financing Receivable, Modifications [Line Items] | ||
Total loans identified during the period | 0 | 0 |
Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Total loans identified during the period | 1,712 | 0 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Total loans identified during the period | 242 | 614 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Total loans identified during the period | 584 | 215 |
Owner-occupied commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Total loans identified during the period | $ 3,071 | $ 0 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Allocation of Goodwill to Our Reportable Operating Segments for Purposes of Goodwill Impairment Testing (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill resulting from the acquisition beginning balance | $ 167,539 | |
Remeasurement adjustments | (1,579) | $ (358) |
Goodwill from business combinations | 0 | |
Goodwill resulting from the acquisition ending balance | 165,960 | |
WSFS Bank | ||
Goodwill [Roll Forward] | ||
Goodwill resulting from the acquisition beginning balance | 147,396 | |
Remeasurement adjustments | (1,635) | |
Goodwill from business combinations | 0 | |
Goodwill resulting from the acquisition ending balance | 145,761 | |
Cash Connect | ||
Goodwill [Roll Forward] | ||
Goodwill resulting from the acquisition beginning balance | 0 | |
Remeasurement adjustments | 0 | |
Goodwill from business combinations | 0 | |
Goodwill resulting from the acquisition ending balance | 0 | |
Wealth Management | ||
Goodwill [Roll Forward] | ||
Goodwill resulting from the acquisition beginning balance | 20,143 | |
Remeasurement adjustments | 56 | |
Goodwill from business combinations | 0 | |
Goodwill resulting from the acquisition ending balance | $ 20,199 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 32,193 | $ 33,861 |
Accumulated Amortization | (7,781) | (10,153) |
Total | 24,412 | 23,708 |
Core deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 10,658 | 13,128 |
Accumulated Amortization | (3,440) | (5,630) |
Total | $ 7,218 | $ 7,498 |
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 17,561 | $ 17,561 |
Accumulated Amortization | (3,013) | (2,612) |
Total | 14,548 | 14,949 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 221 | 1,006 |
Accumulated Amortization | (24) | (728) |
Total | $ 197 | 278 |
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 1,821 | 1,708 |
Accumulated Amortization | (1,092) | (1,067) |
Total | 729 | 641 |
Favorable lease asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 1,932 | 458 |
Accumulated Amortization | (212) | (116) |
Total | $ 1,720 | $ 342 |
Minimum | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 7 years | 7 years |
Minimum | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 months | |
Minimum | Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years |
Minimum | Favorable lease asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 months | 10 months |
Maximum | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years |
Maximum | Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Maximum | Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 30 years | 30 years |
Maximum | Favorable lease asset | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 18 years | 15 years |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense on other intangible assets | $ 857 | $ 549 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense on other intangible assets | $ 900 |
Goodwill and Intangibles - Sc65
Goodwill and Intangibles - Schedule of Estimated Amortization Expense of Intangibles (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining in 2017 | $ 2,287 | |
2,018 | 2,965 | |
2,019 | 2,897 | |
2,020 | 2,701 | |
2,021 | 2,329 | |
Thereafter | 11,233 | |
Total | $ 24,412 | $ 23,708 |
Associate (Employee) Benefit Pl
Associate (Employee) Benefit Plans - Additional Information (Detail) | Mar. 31, 2014 | Mar. 31, 2017 |
Postemployment Benefits [Abstract] | ||
Requisite service period | 10 years | |
Amortization of unrecognized gains losses exceed percentage | 10.00% |
Associate (Employee) Benefit 67
Associate (Employee) Benefit Plans - Schedule of Net Periodic Benefit Cost Components of Postretirement Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Business Acquisition [Line Items] | ||
Service cost | $ 15 | $ 15 |
Interest cost | 19 | 19 |
Prior service cost amortization | (19) | (7) |
Net gain recognition | (16) | (15) |
Net periodic benefit cost | (1) | $ 12 |
Alliance | ||
Business Acquisition [Line Items] | ||
Service cost | 10 | |
Interest cost | 75 | |
Expected Return on Plan Assets | (135) | |
Prior service cost amortization | 0 | |
Net gain recognition | 0 | |
Net periodic benefit cost | $ (50) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Tax Examination [Line Items] | |||
Unrecognized tax benefits | $ 0 | ||
Amortization method qualified affordable housing project investments, amortization | 400,000 | $ 400,000 | |
Tax benefits recorded as income tax expense | 100,000 | ||
Carrying value of investment in affordable housing credits | 15,000,000 | $ 15,400,000 | |
Tax Credit | |||
Income Tax Examination [Line Items] | |||
Affordable housing tax credits | $ 400,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 0.9 | $ 0.8 | ||||
Share-based compensation expense, net of tax | $ 0.6 | 0.4 | ||||
Stock Incentive Plan 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options, outstanding (in shares) | 2,096,535 | |||||
Number of shares available for grant (in shares) | 490,926 | |||||
Share based payment awards performance period | 4 years | |||||
Employee Stock Option | Stock Incentive Plan 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options, outstanding (in shares) | 1,474,752 | 1,547,980 | ||||
Share-based compensation expense | $ 0.5 | |||||
Award vesting rights | 25.00% | |||||
Award vesting period | 1 year | |||||
Expiration period | 7 years | |||||
Compensation not yet recognized | $ 5.5 | |||||
Compensation cost not yet recognized, period for recognition | 1 year 10 months 10 days | |||||
Restricted Stock Units (RSUs) | Stock Incentive Plan 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 0.1 | |||||
Award vesting rights | 25.00% | |||||
Award vesting period | 4 years | |||||
Number of shares authorized (in shares) | 233,400 | |||||
Percentage of annual return on assets | 1.00% | |||||
Stock issued during period (in shares) | 108,456 | |||||
Restricted Stock And Restricted Stock Units | Stock Incentive Plan 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 0.2 | |||||
Compensation not yet recognized, Share-based awards other than options | $ 7 | |||||
Weighted average remaining contractual terms | 3 years 2 months | |||||
Minimum | Restricted Stock Units (RSUs) | Stock Incentive Plan 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Executive Officer | Minimum | Restricted Stock Units (RSUs) | Stock Incentive Plan 2013 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Assumptions for Options Issued (Detail) - Stock Incentive Plan 2013 - Employee Stock Option | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Term (in years) | 5 years 3 months | 5 years 3 months |
Volatility | 24.85% | 29.60% |
Weighted-average risk free interest rate | 1.95% | 1.24% |
Dividend Yield | 0.60% | 0.80% |
Stock-Based Compensation - Su71
Stock-Based Compensation - Summary of Options Including Non-Plan Stock Options (Detail) - Stock Incentive Plan 2013 - $ / shares | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Shares | ||
Outstanding at end of period (in shares) | 2,096,535 | |
Employee Stock Option | ||
Shares | ||
Outstanding at beginning of period (in shares) | 1,547,980 | |
Granted (in shares) | 45,134 | |
Exercised (in shares) | (117,612) | |
Forfeited (in shares) | (750) | |
Outstanding at end of period (in shares) | 1,474,752 | |
Weighted- Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 17.83 | |
Granted (in dollars per share) | 47.05 | |
Exercised (in dollars per share) | 15.47 | |
Forfeited (in dollars per share) | 15.83 | |
Outstanding at end of period (in dollars per share) | $ 18.91 | |
Nonvested at end of period (in shares) | 424,459 | 704,421 |
Nonvested at end of period (in dollars per share) | $ 23.64 | $ 19.08 |
Exercisable at end of period (in shares) | 1,050,293 | |
Exercisable at end of period (in dollars per share) | $ 17 | |
Weighted-average fair value of options granted (in shares) | $ 11.50 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Nonvested Stock Option Outstanding (Detail) - Stock Incentive Plan 2013 - Employee Stock Option | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Shares | |
Nonvested at beginning of period (in shares) | shares | 704,421 |
Granted (in shares) | shares | 45,134 |
Forfeited (in shares) | shares | (750) |
Vested during period (in shares) | shares | (324,346) |
Nonvested at end of period (in shares) | shares | 424,459 |
Weighted- Average Exercise Price | |
Nonvested at beginning of period (in dollars per share) | $ / shares | $ 19.08 |
Granted (in dollars per share) | $ / shares | 47.05 |
Forfeited (in dollars per share) | $ / shares | 15.83 |
Vested during period (in dollars per share) | $ / shares | 17.01 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 23.64 |
Stock-Based Compensation - Sc73
Stock-Based Compensation - Schedule of RSUs and RSAs (Detail) - Stock Incentive Plan 2013 - Restricted Stock And Restricted Stock Units | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Units (in whole) | |
Outstanding at beginning of period (in shares) | shares | 135,592 |
Granted (in shares) | shares | 36,523 |
Vested (in shares) | shares | (33,803) |
Forfeited (in shares) | shares | (1,823) |
Outstanding at end of period (in shares) | shares | 136,489 |
Weighted Average Grant-Date Fair Value per Unit | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 27.14 |
Granted (in dollars per share) | $ / shares | 47.05 |
Vested (in dollars per share) | $ / shares | 20.22 |
Forfeited (in dollars per share) | $ / shares | 27.21 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 34.20 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Financial Instruments Carried at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | $ 789,125 | $ 794,543 |
Total assets measured at fair value on a recurring basis | 790,233 | 796,051 |
Other real estate owned | 3,582 | 3,591 |
Loans held for sale | 29,394 | 54,782 |
Impaired loans (collateral dependent),net | 62,443 | 46,499 |
Total assets measured at fair value on a nonrecurring basis | 95,419 | 104,872 |
Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Other liabilities | 3,194 | 3,380 |
GSE | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 32,981 | 35,010 |
CMO | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 277,711 | 261,216 |
CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 277,711 | 261,215 |
FNMA MBS | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 386,051 | 405,764 |
FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 386,051 | 405,764 |
FHLMC MBS | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 64,171 | 63,514 |
FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 64,171 | 63,515 |
GNMA MBS | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 27,597 | 28,416 |
GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 27,597 | 28,416 |
Other investments | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 614 | 623 |
Other assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,108 | 1,508 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a recurring basis | 614 | 623 |
Other real estate owned | 0 | 0 |
Loans held for sale | 0 | 0 |
Impaired loans (collateral dependent),net | 0 | 0 |
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Other liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | GSE | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other investments | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 614 | 623 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a recurring basis | 789,619 | 795,428 |
Other real estate owned | 0 | 0 |
Loans held for sale | 29,394 | 54,782 |
Impaired loans (collateral dependent),net | 0 | 0 |
Total assets measured at fair value on a nonrecurring basis | 29,394 | 54,782 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Other liabilities | 3,194 | 3,380 |
Significant Other Observable Inputs (Level 2) | GSE | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 32,981 | 35,010 |
Significant Other Observable Inputs (Level 2) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 277,711 | 261,215 |
Significant Other Observable Inputs (Level 2) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 386,051 | 405,764 |
Significant Other Observable Inputs (Level 2) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 64,171 | 63,515 |
Significant Other Observable Inputs (Level 2) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 27,597 | 28,416 |
Significant Other Observable Inputs (Level 2) | Other investments | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,108 | 1,508 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a recurring basis | 0 | 0 |
Other real estate owned | 3,582 | 3,591 |
Loans held for sale | 0 | 0 |
Impaired loans (collateral dependent),net | 62,443 | 46,499 |
Total assets measured at fair value on a nonrecurring basis | 66,025 | 50,090 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Other liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | GSE | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other investments | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | $ 0 | $ 0 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Detail) | Mar. 31, 2017USD ($)secuirty | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($)secuirty |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment securities available for sale | $ 789,125,000 | $ 794,543,000 | $ 789,125,000 |
Minimum discount rate on appraisals of collateral securing loan | 10.00% | ||
Maximum discount rate on appraisals of collateral securing loan | 50.00% | ||
Ending Loan Balances | 67,743,000 | 51,600,000 | $ 67,743,000 |
Related Reserve | 5,300,000 | 3,405,000 | 5,300,000 |
Collateral for collateral dependent loans | 62,443,000 | 46,499,000 | 62,443,000 |
Commitments of lending operations | 0 | 0 | |
U.S. Treasury Notes | AAA-Rated | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment securities available for sale | 33,000,000 | 33,000,000 | |
Federal Agency MBS | AAA-Rated | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment securities available for sale | 755,500,000 | 755,500,000 | |
Collateral Dependent Impaired Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Ending Loan Balances | 49,904,000 | ||
Visa | Common Class B | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Estimated value of shares | 23,100,000 | 23,100,000 | |
Quoted Prices in Active Markets for Identical Asset (Level 1) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Collateral for collateral dependent loans | $ 0 | $ 0 | $ 0 |
Penn Liberty Financial Corporation | Quoted Prices in Active Markets for Identical Asset (Level 1) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Available-for-sale securities, security | secuirty | 1 | 1 |
Fair Value Disclosures - Book V
Fair Value Disclosures - Book Value and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Investment securities available for sale | $ 789,125 | $ 794,543 |
Investment securities held to maturity | 163,611 | 164,346 |
Loans, held for sale | 29,394 | 54,782 |
Loans, net | 4,552,151 | 4,444,375 |
Impaired loans, net | 62,443 | 46,499 |
Stock in FHLB of Pittsburgh | 20,002 | 38,248 |
Accrued interest receivable | 16,712 | 17,027 |
Other assets | 81,793 | 84,892 |
Financial liabilities: | ||
Deposits | 5,376,830 | 4,738,438 |
Accrued interest payable | 2,931 | 1,151 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Financial assets: | ||
Loans, held for sale | 0 | 0 |
Impaired loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Loans, held for sale | 29,394 | 54,782 |
Impaired loans, net | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans, held for sale | 0 | 0 |
Impaired loans, net | 62,443 | 46,499 |
Book Value | Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 855,263 | 821,923 |
Book Value | Fair Value Inputs Level 1 And Level 2 | ||
Financial assets: | ||
Investment securities available for sale | 789,125 | 794,543 |
Book Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Investment securities held to maturity | 163,611 | 164,346 |
Loans, held for sale | 29,394 | 54,782 |
Stock in FHLB of Pittsburgh | 20,002 | 38,248 |
Accrued interest receivable | 16,712 | 17,027 |
Financial liabilities: | ||
Deposits | 5,376,830 | 4,738,438 |
Borrowed funds | 700,849 | 1,267,447 |
Accrued interest payable | 2,931 | 1,151 |
Other liabilities | 3,194 | 3,380 |
Book Value | Fair Value Inputs Level 2 And Level 3 | ||
Financial assets: | ||
Loans, net | 4,489,708 | 4,397,876 |
Book Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Impaired loans, net | 62,443 | 46,499 |
Other assets | 13,920 | 9,189 |
Financial liabilities: | ||
Standby letters of credit | 507 | 468 |
Fair Value | Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 855,263 | 821,923 |
Fair Value | Fair Value Inputs Level 1 And Level 2 | ||
Financial assets: | ||
Investment securities available for sale | 789,125 | 794,543 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Investment securities held to maturity | 163,241 | 163,232 |
Loans, held for sale | 29,394 | 54,782 |
Stock in FHLB of Pittsburgh | 20,002 | 38,248 |
Accrued interest receivable | 16,712 | 17,027 |
Financial liabilities: | ||
Deposits | 5,040,211 | 4,423,921 |
Borrowed funds | 697,952 | 1,264,170 |
Accrued interest payable | 2,931 | 1,151 |
Other liabilities | 3,194 | 3,380 |
Fair Value | Fair Value Inputs Level 2 And Level 3 | ||
Financial assets: | ||
Loans, net | 4,450,924 | 4,300,963 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Impaired loans, net | 62,443 | 46,499 |
Other assets | 28,527 | 15,787 |
Financial liabilities: | ||
Standby letters of credit | $ 507 | $ 468 |
Derivative Financial Instrume77
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) $ in Thousands | Mar. 31, 2017USD ($)instrument | Dec. 31, 2016USD ($) |
Derivative [Line Items] | ||
Notional | $ 538,700 | $ 518,800 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Count | instrument | 3 | |
Notional | $ 75,000 | |
Liability Derivatives (Fair Value) | 3,039 | |
Other liabilities | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Liability Derivatives (Fair Value) | $ 3,039 |
Derivative Financial Instrume78
Derivative Financial Instruments - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2017USD ($)instrument | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | ||
Derivative hedge Ineffectiveness gain (loss) | $ 0 | |
Interest rate cash flow hedge increase decrease interest expense to be reclassified during next 12 months net (less than) | 100,000 | |
Notional | 538,700,000 | $ 518,800,000 |
Collateral value against obligations | $ 3,400,000 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Count | instrument | 3 | |
Notional | $ 75,000,000 | |
Accrued Liabilities | ||
Derivative [Line Items] | ||
Termination value of derivatives | $ 3,000,000 |
Derivative Financial Instrume79
Derivative Financial Instruments - Effect of Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative [Line Items] | ||
Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) | $ (3,039) | $ 0 |
Interest Rate Products | ||
Derivative [Line Items] | ||
Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) | $ (3,039) | $ 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2017Business_LineSegment | |
Segment Reporting [Abstract] | |
Number of businesses | Segment | 3 |
Number of business lines | Business_Line | 6 |
Segment Information - Details o
Segment Information - Details of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Interest income | $ 60,826 | $ 50,046 |
Noninterest income | 28,092 | 23,668 |
Total revenue | 88,918 | 73,714 |
Interest expense | 7,723 | 4,690 |
Noninterest expenses | 51,506 | 43,797 |
Provision for loan losses | 2,162 | 780 |
Total expenses | 61,391 | 49,267 |
Income before taxes | 27,527 | 24,447 |
Income tax provision | 8,590 | 8,677 |
Net income | 18,937 | 15,770 |
Capital expenditures | 2,364 | 1,233 |
Inter-Segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Interest income | 4,061 | 2,956 |
Noninterest income | 2,391 | 2,277 |
Total revenue | 6,452 | 5,233 |
Interest expense | 4,061 | 2,956 |
Noninterest expenses | 2,391 | 2,277 |
Total expenses | 6,452 | 5,233 |
External Customer | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 95,370 | 78,947 |
Total expenses | 67,843 | 54,500 |
WSFS Bank | ||
Segment Reporting Information [Line Items] | ||
Interest income | 58,688 | 48,038 |
Noninterest income | 10,167 | 9,852 |
Total revenue | 68,855 | 57,890 |
Interest expense | 7,463 | 4,497 |
Noninterest expenses | 38,960 | 33,812 |
Provision for loan losses | 1,716 | 815 |
Total expenses | 48,139 | 39,124 |
Income before taxes | 22,584 | 19,775 |
Capital expenditures | 2,088 | 1,211 |
WSFS Bank | Inter-Segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Interest income | 1,996 | 1,061 |
Noninterest income | 2,164 | 2,060 |
Total revenue | 4,160 | 3,121 |
Interest expense | 2,065 | 1,895 |
Noninterest expenses | 227 | 217 |
Total expenses | 2,292 | 2,112 |
WSFS Bank | External Customer | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 73,015 | 61,011 |
Total expenses | 50,431 | 41,236 |
Cash Connect | ||
Segment Reporting Information [Line Items] | ||
Interest income | 0 | 0 |
Noninterest income | 9,677 | 8,271 |
Total revenue | 9,677 | 8,271 |
Interest expense | 0 | 0 |
Noninterest expenses | 6,135 | 5,448 |
Provision for loan losses | 0 | 0 |
Total expenses | 6,135 | 5,448 |
Income before taxes | 1,613 | 1,746 |
Capital expenditures | 22 | 20 |
Cash Connect | Inter-Segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Interest income | 0 | 0 |
Noninterest income | 191 | 193 |
Total revenue | 191 | 193 |
Interest expense | 1,405 | 555 |
Noninterest expenses | 715 | 715 |
Total expenses | 2,120 | 1,270 |
Cash Connect | External Customer | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 9,868 | 8,464 |
Total expenses | 8,255 | 6,718 |
Wealth Management | ||
Segment Reporting Information [Line Items] | ||
Interest income | 2,138 | 2,008 |
Noninterest income | 8,248 | 5,545 |
Total revenue | 10,386 | 7,553 |
Interest expense | 260 | 193 |
Noninterest expenses | 6,411 | 4,537 |
Provision for loan losses | 446 | (35) |
Total expenses | 7,117 | 4,695 |
Income before taxes | 3,330 | 2,926 |
Capital expenditures | 254 | 2 |
Wealth Management | Inter-Segment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Interest income | 2,065 | 1,895 |
Noninterest income | 36 | 24 |
Total revenue | 2,101 | 1,919 |
Interest expense | 591 | 506 |
Noninterest expenses | 1,449 | 1,345 |
Total expenses | 2,040 | 1,851 |
Wealth Management | External Customer | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 12,487 | 9,472 |
Total expenses | $ 9,157 | $ 6,546 |
Segment Information - Details82
Segment Information - Details of Segment Information- Statement of Financial Condition (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 855,263 | $ 821,923 | $ 590,028 | $ 561,179 |
Goodwill | 165,960 | 167,539 | ||
Other segment assets | 5,831,676 | 5,775,808 | ||
Total assets | 6,852,899 | 6,765,270 | ||
WSFS Bank | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 99,812 | 100,893 | ||
Goodwill | 145,761 | 147,396 | ||
Other segment assets | 5,608,912 | 5,545,611 | ||
Total assets | 5,854,485 | 5,793,900 | ||
Cash Connect | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 751,201 | 717,643 | ||
Goodwill | 0 | 0 | ||
Other segment assets | 4,097 | 3,533 | ||
Total assets | 755,298 | 721,176 | ||
Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 4,250 | 3,387 | ||
Goodwill | 20,199 | 20,143 | ||
Other segment assets | 218,667 | 226,664 | ||
Total assets | $ 243,116 | $ 250,194 |
Indemnifications and Guarante83
Indemnifications and Guarantees - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2017USD ($)loanFinancial_InstitutionTransaction | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)loan | |
Guarantor Obligations [Line Items] | |||
Provision for losses at the time of sale | $ 2,162,000 | $ 780,000 | |
Number of unrelated financial institutions | Financial_Institution | 3 | ||
Derivative transaction held for guarantee | loan | 134 | 134 | |
Notional | $ 538,700,000 | $ 518,800,000 | |
Aggregate fair value of swaps to customers | 10,000,000 | $ 10,900,000 | |
Reserves for swap guarantees | $ 0 | ||
Minimum | |||
Guarantor Obligations [Line Items] | |||
Notional amount maturity period | 1 year | ||
Maximum | |||
Guarantor Obligations [Line Items] | |||
Notional amount maturity period | 20 years | ||
Secondary Market Loan Sales | |||
Guarantor Obligations [Line Items] | |||
Provision for losses at the time of sale | $ 0 | ||
Number of loans repurchased | Transaction | 0 |
Change in Accumulated Other C84
Change in Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 687,336 | $ 580,471 |
Ending Balance | 704,001 | 597,580 |
Net change in investment securities available for sale | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (8,194) | (1,887) |
Other comprehensive income (loss) before reclassifications | 1,272 | 10,572 |
Less: Amounts reclassified from accumulated other comprehensive loss | (206) | (189) |
Net current-period other comprehensive income (loss) | 1,066 | 10,383 |
Ending Balance | (7,128) | 8,496 |
Net change in securities held to maturity | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 1,392 | 1,795 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Less: Amounts reclassified from accumulated other comprehensive loss | (101) | (103) |
Net current-period other comprehensive income (loss) | (101) | (103) |
Ending Balance | 1,291 | 1,692 |
Net change in defined benefit plan | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 957 | 788 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Less: Amounts reclassified from accumulated other comprehensive loss | (23) | 478 |
Net current-period other comprehensive income (loss) | (23) | 478 |
Ending Balance | 934 | 1,266 |
Net change in fair value of derivative used for cash flow hedge | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (1,772) | 0 |
Other comprehensive income (loss) before reclassifications | (112) | 0 |
Less: Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | (112) | 0 |
Ending Balance | (1,884) | 0 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (7,617) | 696 |
Other comprehensive income (loss) before reclassifications | 1,160 | 10,572 |
Less: Amounts reclassified from accumulated other comprehensive loss | (330) | 186 |
Net current-period other comprehensive income (loss) | 830 | 10,758 |
Ending Balance | $ (6,787) | $ 11,454 |
Change in Accumulated Other C85
Change in Accumulated Other Comprehensive Income - Components of Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gains on securities transactions | $ 320 | $ 305 |
Income taxes | (8,590) | (8,677) |
Income before taxes | 27,527 | 24,447 |
Net income | 18,937 | 15,770 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | (330) | 186 |
Reclassification out of Accumulated Other Comprehensive Income | Net change in defined benefit plan | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income taxes | 12 | (306) |
Prior service (credits) costs | (19) | (7) |
Actuarial (gains) losses | (16) | 791 |
Income before taxes | (35) | 784 |
Net income | (23) | 478 |
Reclassification out of Accumulated Other Comprehensive Income | Realized Gains on Securities Transactions | Net change in investment securities available for sale | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Realized gains on securities transactions | (320) | (305) |
Income taxes | 114 | 116 |
Net income | (206) | (189) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Net Unrealized Gains to Income During Period | Net change in investment securities available for sale | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income taxes | 59 | 65 |
Amortization of net unrealized gains to income during the period | (160) | (168) |
Net income | $ (101) | $ (103) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Total deposits from related parties | $ 6.3 | $ 3.6 |
Loans | ||
Related Party Transaction [Line Items] | ||
Related party loan repayment | 1.6 | $ 1.3 |
New Loans And Credit Line Advance To Related Parties | ||
Related Party Transaction [Line Items] | ||
New loans and credit line advance to related parties | 0.4 | |
Proceeds from Related Party Debt | $ 0.1 |
Legal and Other Proceedings - A
Legal and Other Proceedings - Additional Information (Detail) - USD ($) | Apr. 07, 2015 | Mar. 31, 2017 |
Subsequent Event [Line Items] | ||
Additions to other significant pending legal or other proceedings | $ 0 | |
Universitas Education, LLC | Pending Litigation | ||
Subsequent Event [Line Items] | ||
Loss contingency, damages sought | $ 30,000,000 |