Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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) | 31,771,831 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
Interest and fees on loans | $ 64,442 | $ 56,073 | $ 124,907 | $ 110,754 |
Interest on mortgage-backed securities | 6,190 | 4,782 | 11,589 | 9,177 |
Interest and dividends on investment securities: | ||||
Taxable | 16 | 6 | 33 | 123 |
Tax-exempt | 1,092 | 1,130 | 2,195 | 2,262 |
Other interest income | 411 | 343 | 1,040 | 844 |
Total interest income | 72,151 | 62,334 | 139,764 | 123,160 |
Interest expense: | ||||
Interest on deposits | 6,368 | 3,341 | 11,608 | 6,416 |
Interest on senior debt | 1,180 | 2,121 | 2,359 | 4,242 |
Interest on Federal Home Loan Bank advances | 2,536 | 1,797 | 4,999 | 3,655 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 434 | 235 | 880 | 436 |
Interest on trust preferred borrowings | 637 | 472 | 1,194 | 918 |
Interest on other borrowings | 7 | 54 | 21 | 76 |
Total interest expense | 11,162 | 8,020 | 21,061 | 15,743 |
Net interest income | 60,989 | 54,314 | 118,703 | 107,417 |
Provision for loan losses | 2,498 | 1,843 | 6,148 | 4,005 |
Net interest income after provision for loan losses | 58,491 | 52,471 | 112,555 | 103,412 |
Noninterest income: | ||||
Securities gains, net | 0 | 708 | 21 | 1,028 |
Unrealized gains on equity investments | 0 | 0 | 15,346 | 0 |
Bank owned life insurance income | 0 | 302 | 232 | 578 |
Total non interest income | 34,987 | 31,676 | 82,454 | 59,768 |
Noninterest expense: | ||||
Salaries, benefits and other compensation | 30,944 | 28,223 | 60,797 | 57,059 |
Occupancy expense | 5,008 | 4,684 | 10,256 | 9,846 |
Equipment expense | 3,176 | 3,498 | 6,265 | 6,622 |
Data processing and operations expenses | 1,896 | 1,750 | 3,803 | 3,368 |
Professional fees | 2,320 | 2,669 | 4,045 | 4,304 |
Marketing expense | 1,084 | 932 | 1,842 | 1,556 |
FDIC expenses | 515 | 594 | 1,114 | 1,123 |
Loan workout and OREO expenses | 681 | 499 | 1,107 | 1,020 |
Corporate development expense | 457 | 366 | 457 | 704 |
Recovery of fraud loss | 0 | 0 | (1,665) | 0 |
Other operating expense | 11,750 | 9,512 | 23,222 | 18,631 |
Total non interest expenses | 57,831 | 52,727 | 111,243 | 104,233 |
Income before taxes | 35,647 | 31,420 | 83,766 | 58,947 |
Income tax provision | 6,907 | 10,850 | 17,676 | 19,440 |
Net income | $ 28,740 | $ 20,570 | $ 66,090 | $ 39,507 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.91 | $ 0.65 | $ 2.10 | $ 1.26 |
Diluted (in dollars per share) | $ 0.89 | $ 0.64 | $ 2.05 | $ 1.22 |
Credit/debit card and ATM income | ||||
Noninterest income: | ||||
Deposit service charges | $ 10,709 | $ 8,925 | $ 20,514 | $ 17,056 |
Investment management and fiduciary income | ||||
Noninterest income: | ||||
Deposit service charges | 10,244 | 8,835 | 19,433 | 16,874 |
Deposit service charges | ||||
Noninterest income: | ||||
Deposit service charges | 4,664 | 4,560 | 9,294 | 8,957 |
Mortgage banking activities, net | ||||
Noninterest income: | ||||
Deposit service charges | 1,692 | 1,844 | 3,429 | 3,029 |
Loan fee income | ||||
Noninterest income: | ||||
Deposit service charges | 567 | 451 | 1,166 | 1,000 |
Other income | ||||
Noninterest income: | ||||
Deposit service charges | $ 7,111 | $ 6,051 | $ 13,019 | $ 11,246 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 28,740 | $ 20,570 | $ 66,090 | $ 39,507 |
Net change in unrealized (loss) gains on investment securities available for sale | ||||
Net unrealized (loss) gains arising during the period, net of tax (benefit) expense of ($1,398), $1,958, ($5,112) and $2,737, respectively | (4,501) | 3,241 | (16,328) | 4,513 |
Less: reclassification adjustment for net gains on sales realized in net income, net of tax expense of $0, $253, $5, and $367, respectively | 0 | (455) | (16) | (661) |
Net change in unrealized gains (losses) on investment securities available-for-sale | (4,501) | 2,786 | (16,344) | 3,852 |
Net change in securities held to maturity | ||||
Amortization of unrealized gain on securities reclassified to held-to-maturity, net of tax benefit of $36, $62, $73 and $121, respectively | (117) | (97) | (236) | (198) |
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 ($9), ($15), $9, and ($27), respectively | (30) | (22) | 29 | (45) |
Net change in cash flow hedge | ||||
Net unrealized (loss) gain arising during the period, net of tax (benefit) tax of ($76), $161, ($316) and $92 respectively | (245) | 262 | (1,010) | 150 |
Total other comprehensive (loss) income | (4,893) | 2,929 | (17,561) | 3,759 |
Total comprehensive income | $ 23,847 | $ 23,499 | $ 48,529 | $ 43,266 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in Unrealized (losses) gains, tax (benefit) expense | $ (1,398) | $ 1,958 | $ (5,112) | $ 2,737 |
Reclassification adjustment for gains, tax expense | 0 | 253 | 5 | 367 |
Amortization of unrealized gain on securities reclassified to held-to-maturity, tax expense | 36 | 62 | 73 | 121 |
Change in unfunded pension liability related to unrealized (loss) gain, prior service cost and transition obligation, tax (benefit) expense | (9) | (15) | 9 | (27) |
Reclassification adjustment related to derivatives, tax benefit (expense) | $ (76) | $ 161 | $ (316) | $ 92 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and due from banks | $ 111,392 | $ 122,141 |
Cash in non-owned ATMs | 591,845 | 598,117 |
Interest-bearing deposits in other banks including collateral of $0 and $3,380 at June 30, 2018 and December 31, 2017, respectively | 243 | 3,608 |
Total cash and cash equivalents | 703,480 | 723,866 |
Investment securities, available for sale (amortized cost of $995,943 at June 30, 2018 and $847,791 at December 31, 2017) | 964,120 | 837,499 |
Investment securities, held to maturity-at cost (fair value of $155,644 at June 30, 2018 and $162,853 at December 31, 2017) | 156,456 | 161,186 |
Other investments | 33,589 | 17,971 |
Loans, held for sale at fair value | 31,672 | 31,055 |
Loans, net of allowance for loan losses of $41,037 at June 30, 2018 and $40,599 at December 31, 2017 | 4,869,055 | 4,776,318 |
Bank owned life insurance | 5,750 | 102,958 |
Stock in Federal Home Loan Bank of Pittsburgh at cost | 29,805 | 31,284 |
Other real estate owned | 2,609 | 2,503 |
Accrued interest receivable | 20,393 | 19,405 |
Premises and equipment | 47,433 | 47,983 |
Goodwill | 166,007 | 166,007 |
Intangible assets | 21,252 | 22,437 |
Other assets | 60,926 | 59,068 |
Total assets | 7,112,547 | 6,999,540 |
Deposits: | ||
Noninterest-bearing | 1,434,549 | 1,420,760 |
Interest-bearing | 3,932,006 | 3,826,844 |
Total deposits | 5,366,555 | 5,247,604 |
Federal funds purchased | 70,000 | 28,000 |
Federal Home Loan Bank advances | 630,339 | 710,001 |
Trust preferred borrowings | 67,011 | 67,011 |
Senior debt | 98,279 | 98,171 |
Other borrowed funds | 30,721 | 34,623 |
Accrued interest payable | 4,131 | 1,037 |
Other liabilities | 76,534 | 88,748 |
Total liabilities | 6,343,570 | 6,275,195 |
Stockholders’ Equity: | ||
Common stock $0.01 par value, 65,000,000 shares authorized; issued 56,685,384 at June 30, 2018 and 56,279,527 at December 31, 2017 | 566 | 563 |
Capital in excess of par value | 344,750 | 336,271 |
Accumulated other comprehensive loss | (25,713) | (8,152) |
Retained earnings | 729,329 | 669,557 |
Treasury stock at cost, 24,981,145 shares at June 30, 2018 and 24,861,145 shares at December 31, 2017 | (279,955) | (273,894) |
Total stockholders’ equity | 768,977 | 724,345 |
Total liabilities and stockholders’ equity | $ 7,112,547 | $ 6,999,540 |
CONSOLIDATED STATEMENTS OF FIN6
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Interest-bearing deposits in banks and other financial institutions, collateral | $ 0 | $ 3,380 |
Available-for-sale securities, amortized cost basis | 995,943 | 847,791 |
Held-to-maturity securities, fair value | 155,644 | 162,853 |
Allowance for loan losses | $ 41,037 | $ 40,599 |
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) | 56,685,384 | 56,279,527 |
Treasury stock, shares (in shares) | 24,981,145 | 24,861,145 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - 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, 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 | 39,507 | 39,507 | ||||
Other comprehensive income (loss) | 3,759 | 3,759 | ||||
Cash dividend | (4,399) | (4,399) | ||||
Issuance of common stock including proceeds from exercise of common stock options | 885 | $ 1 | 884 | |||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 178,583 | |||||
Stock-based compensation expense | 1,564 | 1,564 | ||||
Repurchase of common stock | $ (6,029) | (6,029) | ||||
Repurchase of common stock (in shares) | 133,000 | |||||
Ending Balance at Jun. 30, 2017 | $ 722,623 | $ 581 | 331,905 | (3,858) | 662,186 | (268,191) |
Ending Balance (in shares) at Jun. 30, 2017 | 56,173,802 | |||||
Beginning Balance at Mar. 31, 2017 | (6,787) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 20,570 | |||||
Other comprehensive income (loss) | 2,929 | |||||
Ending Balance at Jun. 30, 2017 | 722,623 | $ 581 | 331,905 | (3,858) | 662,186 | (268,191) |
Ending Balance (in shares) at Jun. 30, 2017 | 56,173,802 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Reclassification due to the adoption of ASU No. 2016-01 | 0 | 20 | (20) | |||
Beginning Balance at Dec. 31, 2017 | 724,345 | $ 563 | 336,271 | (8,152) | 669,557 | (273,894) |
Beginning Balance (in shares) at Dec. 31, 2017 | 56,279,527 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 66,090 | 66,090 | ||||
Other comprehensive income (loss) | (17,561) | (17,581) | ||||
Cash dividend | (6,298) | (6,298) | ||||
Issuance of common stock including proceeds from exercise of common stock options | 7,062 | $ 3 | 7,059 | |||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 405,857 | |||||
Stock-based compensation expense | 1,420 | 1,420 | ||||
Repurchase of common stock | $ (6,061) | (6,061) | ||||
Repurchase of common stock (in shares) | 120,000 | |||||
Ending Balance at Jun. 30, 2018 | $ 768,977 | $ 566 | 344,750 | (25,713) | 729,329 | (279,955) |
Ending Balance (in shares) at Jun. 30, 2018 | 56,685,384 | |||||
Beginning Balance at Mar. 31, 2018 | (20,820) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 28,740 | |||||
Other comprehensive income (loss) | (4,893) | |||||
Ending Balance at Jun. 30, 2018 | $ 768,977 | $ 566 | $ 344,750 | $ (25,713) | $ 729,329 | $ (279,955) |
Ending Balance (in shares) at Jun. 30, 2018 | 56,685,384 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend (in dollars per share) | $ 0.20 | $ 0.14 |
Repurchase of common stock (in shares) | 120,000 | 133,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities: | ||
Net Income | $ 66,090 | $ 39,507 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 6,148 | 4,005 |
Depreciation of premises and equipment, net | 4,189 | 4,286 |
Amortization of fees and discounts, net | 7,914 | 10,266 |
Amortization of intangible assets | 1,482 | 1,639 |
Income from mortgage banking activities, net | (3,429) | (3,029) |
Gain on sale of securities, net | (21) | (1,028) |
Loss on sale of other real estate owned and valuation adjustments, net | 70 | 131 |
Stock-based compensation expense | 1,420 | 1,564 |
Unrealized gain on equity securities | (15,346) | 0 |
Deferred income tax expense | 2,132 | 2,808 |
(Increase) decrease in accrued interest receivable | (988) | 285 |
Decrease (increase) in other assets | 1,827 | (8,156) |
Origination of loans held for sale | (178,182) | (181,851) |
Proceeds from sales of loans held for sale | 177,997 | 192,130 |
Increase in accrued interest payable | 3,094 | 1,254 |
Decrease in other liabilities | (13,526) | (1,004) |
Decrease (increase) in value of bank owned life insurance | 779 | (582) |
Increase in capitalized interest, net | (1,815) | (2,334) |
Net cash provided by operating activities | 59,835 | 59,891 |
Investing activities: | ||
Repayments, maturities and calls of investment securities held to maturity | 3,780 | 780 |
Sale of investment securities available for sale | 7,012 | 351,614 |
Purchases of investment securities available for sale | (206,667) | (481,978) |
Repayments of investment securities available for sale | 50,233 | 144,208 |
Proceeds from BOLI surrender | 96,429 | 0 |
Net increase in loans | (101,978) | (135,856) |
Purchases of stock of Federal Home Loan Bank of Pittsburgh | (92,211) | (100,438) |
Redemptions of stock of Federal Home Loan Bank of Pittsburgh | 93,690 | 102,854 |
Sales of other real estate owned | 1,121 | 4,105 |
Investment in premises and equipment | (3,792) | (4,490) |
Sales of premises and equipment | 157 | 1,585 |
Net cash used for investing activities | (152,226) | (117,616) |
Financing activities: | ||
Net (decrease) increase in demand and saving deposits | (45,121) | 101,267 |
Increase (decrease) in time deposits | 61,196 | (58,069) |
Increase in brokered deposits | 98,890 | 43,419 |
Decrease in loan payable | 0 | (376) |
Receipts from FHLB advances | 68,146,387 | 72,320,785 |
Repayments of FHLB advances | (68,226,050) | (72,351,370) |
Receipts from federal funds purchased and securities sold under agreement to repurchase | 13,923,750 | 12,312,000 |
Repayments of federal funds purchased and securities sold under agreement to repurchase | (13,881,750) | (12,377,000) |
Dividends paid | (6,298) | (4,399) |
Issuance of common stock and exercise of common stock options | 7,062 | 885 |
Purchase of treasury stock | (6,061) | (6,029) |
Net cash provided by (used for) financing activities | 72,005 | (18,887) |
Decrease in cash and cash equivalents | (20,386) | (76,612) |
Cash and cash equivalents at beginning of period | 723,866 | 821,923 |
Cash and cash equivalents at end of period | 703,480 | 745,311 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest | 17,967 | 14,490 |
Income taxes | 17,594 | 10,352 |
Non-cash information: | ||
Loans transferred to other real estate owned | 1,296 | 2,766 |
Loans transferred to portfolio from held-for-sale at fair value | 1,766 | 11,015 |
Goodwill adjustments, net | $ 0 | $ (1,532) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
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 or WSFS), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital), Cypress Capital Management, LLC (Cypress) and Christiana Trust Company of Delaware (Christiana Trust DE). We also have one unconsolidated subsidiary, WSFS Capital Trust III. WSFS Bank has three wholly-owned subsidiaries: WSFS Wealth Investments, 1832 Holdings, Inc. and Monarch Entity Services LLC. 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, and other-than-temporary impairment (OTTI). Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the 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. Certain prior period amounts have been reclassified to conform with current period presentation. 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, 2018 . These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the 2017 Annual Report on Form 10-K) that was filed with the SEC on March 1, 2018 and is available at www.sec.gov or on our website at http://investors.wsfsbank.com/financials.cfm. All significant intercompany transactions were eliminated in consolidation. Significant Accounting Policies: The significant accounting policies used in preparation of our Consolidated Financial Statements are disclosed in our 2017 Annual Report on Form 10-K. Those significant accounting policies remain unchanged at June 30, 2018 except as described below: Equity Securities Following our adoption of ASU 2016-01 on January 1, 2018, as described in " Recent Accounting Pronouncements ", we account for our investments in equity securities in accordance with ASC 321-10 Investments - Equity Securities. Our equity securities may be classified into two categories and accounted for as follows: • Equity securities with a readily determinable fair value are reported at fair value, with unrealized gains and losses included in earnings. Any dividends received are recorded in interest income. • Equity securities without a readily determinable fair value are reported at their cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer and their impact on fair value. Any dividends received are recorded in interest income. Equity investments include our investment in Visa Class B shares and certain other equity investments. The fair value of equity investments with readily determinable fair values is primarily obtained from third-party pricing services. For equity investments without readily determinable fair values, when an orderly transaction for the identical or similar investment of the same issuer is identified, we use the valuation techniques permitted under ASC 820 Fair Value to evaluate the observed transaction(s) and adjust the fair value of the equity investment. ASC 321-10 also provides guidance related to accounting for impairment of equity securities without readily determinable fair values. The qualitative assessment to determine whether impairment exists requires the use of our judgment in certain circumstances. If, after completing the qualitative assessment we conclude an equity investment without a readily determinable fair value is impaired, a loss for the difference between the equity investment’s carrying value and its fair value may be recognized as a reduction to noninterest income in the Consolidated Statements of Income. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2018 In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 requires an entity to recognize revenue when it transfers promised goods or services to customers using a five-step model in which entities should 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 deferred 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 on certain provisions in Topic 606. These ASC updates were effective for public business entities with annual and interim reporting periods in fiscal years beginning after December 15, 2017. The standard permits the use of either the retrospective or modified retrospectively with the cumulative effect transition method. The Company adopted the standard on January 1, 2018. Consistent with the transition guidance in ASC 606, results for reporting periods beginning after January 1, 2018 are presented in accordance with ASC 606, while prior period amounts are reported in accordance with ASC 605. For revenue streams determined to be within the scope of the new standard, we concluded that the adoption of the standard did not have a material effect on our Consolidated Financial Statements at the time of adoption. See Note 2 for additional disclosures resulting from our adoption of this standard. 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, less 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. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The standard requires retrospective application for equity investments with readily determinable fair values and prospective application for equity investments without readily determinable fair values. The Company adopted the standard on January 1, 2018 on a prospective basis for its equity investments without readily determinable fair values, and the adoption of the standard did not have an effect on our Consolidated Financial Statements at the time of adoption. Subsequent to the filing of our 2017 Annual Report on Form 10-K, we identified observable transactions related to an equity investment without a readily determinable fair value. These identified, observable transactions required the revaluation of this equity investment. The result of the revaluation was recorded in the Consolidated Statements of Income in the first quarter of 2018. See Note 10 for further information. 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 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 adopted this standard on January 1, 2018, on a retrospective basis and the adoption did not have an effect on the 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 adopted this standard on January 1, 2018 on a prospective basis with no impact to the Consolidated Financial Statements at the time of adoption. 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, 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, each distinct nonfinancial asset and in-substance nonfinancial asset should be derecognized when the counterparty obtains control. The guidance is effective 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 adopted this standard on January 1, 2018 on a modified retrospective basis and the adoption did not have an effect on the Consolidated Financial Statements at the time of adoption. 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 in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company adopted this standard on January 1, 2018 on a retrospective basis with no impact to the Consolidated Financial Statements at the time of adoption. In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting . The new guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the award’s fair value, vesting conditions and classification remain the same immediately before and after the change, modification accounting is not applied. Additionally, the guidance does not require valuation before or after the change if the change does not affect any of the inputs to the model used to value the award. The guidance is effective in annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The new guidance will be applied on a prospective basis to awards modified on or after the adoption date. The Company adopted this standard on January 1, 2018 on a prospective basis with no impact to the Consolidated Financial Statements at the time of adoption. Accounting Guidance Pending Adoption at June 30, 2018 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 substantially 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 will adopt this guidance on January 1, 2019. The Company has substantially completed its process of identifying its lease population as defined by this guidance and anticipates finalizing the impact analysis on the Consolidated Financial Statements early in the fourth quarter. To date, our preliminary review suggests that adoption will result in the recognition of additional assets and liabilities on our Consolidated Statements of Financial Condition. The Company will continue to assess the impact of this guidance, taking into consideration available accounting policy elections and significant assumptions and judgments such as the discount rate and renewal options. In addition, the Company continues to evaluate its internal systems, accounting policies, processes and related internal controls for potential effects. Our preliminary review determined a lease accounting and administration software would be used to assist us with initial and on-going requirements of the new guidance. The Company is currently in the process of implementing the software and anticipates completing implementation early in the fourth quarter. 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 does not plan to early adopt this guidance and will adopt this guidance on January 1, 2020. A cross-functional team from Finance, Credit, and IT is leading the implementation efforts to evaluate the impact of this guidance on the Company's Consolidated Financial Statements, internal systems, accounting policies, processes and related internal controls. We have engaged third-party experts and specialists, where necessary, to assist with the implementation efforts. To date, we are in the final phases of due diligence for potential software solutions which can support the acceptable methodologies, and expect to select a software solution during the third quarter of 2018. We also continue to perform due diligence on acceptable methodologies under the guidance, as well as evaluate the potential effects to our accounting policies, processes and related internal controls. Our review of this guidance to date suggests that adoption may materially increase the allowance for loan losses and decrease capital levels; however, the extent of these impacts will depend on the asset quality of the portfolio, macroeconomic conditions, and significant estimates and judgments made by management at the time of adoption. 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. 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 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, using the prospective method of adoption. 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 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. In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) . The new guidance changes both the designation and measurement guidance for qualifying hedging relationships and simplifies the presentation of hedge results. Specifically, the guidance eliminates the requirement to separately measure and report hedge ineffectiveness and also aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Further, the new guidance provides entities the ability to apply hedge accounting to additional hedging strategies as well as permits a one-time reclassification of eligible to be hedged instruments from held to maturity to available for sale upon adoption. The guidance is effective in annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Adoption using the modified retrospective approach is required for hedging relationships that exist as of the date of adoption; presentation and disclosure requirements are applied prospectively. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements, except for the one-time reclassification, if elected. |
NONINTEREST INCOME
NONINTEREST INCOME | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
NONINTEREST INCOME | NONINTEREST INCOME On January 1,2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. The standard applies to certain revenue streams included in noninterest income on our unaudited Consolidated Statements of Income, discussed in more detail below. See Note 1 for further information about our adoption of ASU 2014-09, and Note 12 for further information about the disaggregation of noninterest income by segment. Credit/debit card and ATM income The following table presents the components of credit/debit card and ATM income: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Bailment fees $ 6,588 $ 5,160 $ 12,681 $ 9,863 Interchange fees 3,847 3,498 7,307 6,696 Other card and ATM fees 274 267 526 497 Total credit/debit card and ATM income $ 10,709 $ 8,925 $ 20,514 $ 17,056 Credit/debit card and ATM income is primarily composed of bailment fees which are earned from bailment arrangements with our customers. Bailment arrangements are legal relationships in which property is delivered to another party's temporary custody and control without a transfer of ownership. The party receiving the property (the bailee) has possession and control of the property and is obligated to take reasonable care of the property. The party who transferred the property (the bailor) retains ownership interest of the property. In the event that the bailee files for bankruptcy protection, the property is not included in the bailee's assets. The bailee pays an agreed-upon fee for the use of the bailor's property in exchange for the bailor allowing use of the assets at the bailee's site. Bailment fees are earned from cash that is owned by WSFS but available for customers' use at an offsite location, such as cash located in an ATM at a customer's place of business. This revenue stream generates fee income through monthly billing for bailment services. Credit/debit card and ATM income also includes interchange fees. Interchange fees are paid by a merchant's bank to a bank that issued the debit or credit card used in a transaction to compensate the issuing bank for the value and benefit the merchant receives from accepting electronic payments. These revenue streams generate fee income at the time a transaction occurs and are recorded as revenue at the time of the transaction. Investment management and fiduciary income The following table presents the components of investment management and fiduciary income: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Trust fees $ 6,118 $ 4,977 $ 11,366 $ 9,273 Wealth management and advisory fees 4,126 3,858 8,067 7,601 Total investment management and fiduciary income $ 10,244 $ 8,835 $ 19,433 $ 16,874 Investment management and fiduciary income is primarily composed of trust fees and wealth management and advisory fees. Trust fees are based on revenue earned from investment and trustee services to families and individuals across the U.S.; custody, escrow and trustee services on structured finance transactions; indenture trustee, administrative agent and collateral agent services to institutions and corporations; and commercial domicile and independent director services. Most fees are flat fees, except for a portion of personal and corporate trustee fees where we earn a percentage on the assets under management. This revenue stream primarily generates fee income through monthly, quarterly and annual billings for services provided. Wealth management and advisory fees consists of fees from Cypress, West Capital, Powdermill, WSFS Wealth Client Management, WSFS Wealth Investments and Christiana Trust. Wealth management and advisory fees are based on revenue earned from services including asset management, financial planning, family office, and brokerage. The fees are based on the market value of assets, are assessed as a flat fee, or are brokerage commissions. This revenue stream primarily generates fee income through quarterly and annual billing for the services. Deposit service charges The following table presents the components of deposit service charges: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Service fees $ 2,634 $ 2,527 $ 5,214 $ 4,923 Return and overdraft fees 1,893 1,842 3,777 3,687 Other deposit service fees 137 191 303 347 Total deposit service charges $ 4,664 $ 4,560 $ 9,294 $ 8,957 Deposit service charges includes revenue earned from our core deposit products, certificates of deposit, and brokered deposits. We generate revenues from deposit service charges primarily through service charges and overdraft fees. Service charges consist primarily of monthly account maintenance fees, cash management fees, foreign ATM fees and other maintenance fees. All of these revenue streams generate fee income through service charges for monthly account maintenance and similar items, transfer fees, late fees, overlimit fees, and stop payment fees. Revenue is recorded at the time of the transaction. Other income The following table presents the components of other income: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Managed service fees 3,105 2,671 5,931 5,290 Currency preparation 818 737 1,543 1,420 ATM insurance 605 719 1,195 1,416 Miscellaneous products and services 2,583 1,924 4,350 3,120 Total other income $ 7,111 $ 6,051 $ 13,019 $ 11,246 Other income consists of managed service fees, which are primarily courier fees related to cash management, currency preparation, ATM insurance and other miscellaneous products and services offered by the Bank. These fees are primarily generated through monthly billings or at the time of the transaction. Arrangements with multiple performance obligations Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers. Practical expedients and exemptions We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, (Dollars and shares in thousands, except per share data) 2018 2017 2018 2017 Numerator: Net income $ 28,740 $ 20,570 $ 66,090 $ 39,507 Denominator: Weighted average basic shares 31,567 31,443 31,497 31,425 Dilutive potential common shares 697 869 729 899 Weighted average fully diluted shares 32,264 32,312 32,226 32,324 Earnings per share: Basic $ 0.91 $ 0.65 $ 2.10 $ 1.26 Diluted $ 0.89 $ 0.64 $ 2.05 $ 1.22 Outstanding common stock equivalents having no dilutive effect 11 — 23 10 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The following tables detail the amortized cost and the estimated fair value of our investments in available-for-sale and held-to-maturity debt securities as well as our equity investments. None of our investments in debt securities are classified as trading. June 30, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Available-for-Sale Debt Securities CMO $ 307,500 $ 61 $ 9,298 $ 298,263 FNMA MBS 556,567 9 18,336 538,240 FHLMC MBS 97,033 2 3,297 93,738 GNMA MBS 34,843 94 1,058 33,879 $ 995,943 $ 166 $ 31,989 $ 964,120 Held-to-Maturity Debt Securities (1) State and political subdivisions $ 156,456 $ 231 $ 1,043 $ 155,644 Equity Investments (2) Visa Class B shares $ 14,943 $ 15,346 $ — $ 30,289 Other equity investments 3,300 — — 3,300 $ 18,243 $ 15,346 $ — $ 33,589 (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 $1.3 million at June 30, 2018 , related to securities transferred, which are offset in Accumulated other comprehensive loss, net of tax. (2) Equity investments are included in Other investments in the unaudited Consolidated Statements of Financial Condition. December 31, 2017 (Dollars in thousands) Amortized Cost Gross Gross Fair Available-for-Sale Debt Securities CMO $ 250,592 $ 88 $ 4,141 $ 246,539 FNMA MBS 479,218 941 6,172 473,987 FHLMC MBS 88,681 118 924 87,875 GNMA MBS 29,300 209 411 29,098 $ 847,791 $ 1,356 $ 11,648 $ 837,499 Held-to-Maturity Debt Securities (1) State and political subdivisions $ 161,186 $ 1,758 $ 91 $ 162,853 Equity Investments (2) Other equity investments $ 643 $ — $ 20 $ 623 $ 643 $ — $ 20 $ 623 (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 $1.6 million at December 31, 2017 , related to securities transferred, which are offset in Accumulated other comprehensive loss, net of tax. (2) Equity investments are included in Other investments in the unaudited Consolidated Statements of Financial Condition. The scheduled maturities of our available-for-sale debt securities at June 30, 2018 and December 31, 2017 are presented in the table below: Available for Sale Amortized Fair (Dollars in thousands) Cost Value June 30, 2018 Within one year $ — $ — After one year but within five years 19,868 19,332 After five years but within ten years 174,662 165,177 After ten years 801,413 779,611 $ 995,943 $ 964,120 December 31, 2017 Within one year $ — $ — After one year but within five years 20,051 19,825 After five years but within ten years 179,812 175,583 After ten years 647,928 642,091 $ 847,791 $ 837,499 The scheduled maturities of our held-to-maturity debt securities at June 30, 2018 and December 31, 2017 are presented in the table below: Held to Maturity Amortized Fair (Dollars in thousands) Cost Value June 30, 2018 Within one year $ 155 $ 155 After one year but within five years 6,837 6,824 After five years but within ten years 25,322 25,213 After ten years 124,142 123,452 $ 156,456 $ 155,644 December 31, 2017 Within one year $ 322 $ 320 After one year but within five years 5,895 5,894 After five years but within ten years 18,751 18,873 After ten years 136,218 137,766 $ 161,186 $ 162,853 Mortgage-backed securities (MBS) may have expected maturities that differ from their contractual maturities. These differences arise because issuers may have the right to call securities and borrowers may have the right to prepay obligations with or without prepayment penalty. Investment securities with fair market values aggregating $745.4 million and $688.2 million were pledged as collateral for retail customer repurchase agreements, municipal deposits, and other obligations as of June 30, 2018 and December 31, 2017 , respectively. During the six months ended June 30, 2018 , we sold $7.0 million of debt securities categorized as available for sale, resulting in realized gains of less than $0.1 million and no realized losses. During the six months ended June 30, 2017 , we sold $351.6 million of debt securities categorized as available for sale, resulting in realized gains of $1.1 million and realized losses of less than $0.1 million . The cost basis of all debt securities sales is based on the specific identification method. As of June 30, 2018 and December 31, 2017 , our debt securities portfolio had remaining unamortized premiums of $13.6 million and $14.1 million , respectively, and unaccreted discounts of $1.3 million as of both June 30, 2018 and December 31, 2017. For debt securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at June 30, 2018 . 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 debt securities: CMO $ 199,985 $ 5,031 $ 83,359 $ 4,267 $ 283,344 $ 9,298 FNMA MBS 397,186 10,438 114,832 7,898 512,018 18,336 FHLMC MBS 74,017 2,030 19,649 1,267 93,666 3,297 GNMA MBS 13,125 349 13,737 709 26,862 1,058 Total temporarily impaired investments $ 684,313 $ 17,848 $ 231,577 $ 14,141 $ 915,890 $ 31,989 Held-to-maturity debt securities: State and political subdivisions $ 103,069 $ 897 $ 5,723 $ 146 $ 108,792 $ 1,043 Total temporarily impaired investments $ 103,069 $ 897 $ 5,723 $ 146 $ 108,792 $ 1,043 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, 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 debt securities: CMO $ 146,726 $ 1,820 $ 77,149 $ 2,321 $ 223,875 $ 4,141 FNMA MBS 204,921 1,479 126,342 4,693 331,263 6,172 FHLMC MBS 42,514 269 21,405 655 63,919 924 GNMA MBS 4,615 56 14,782 355 19,397 411 Total temporarily impaired investments $ 398,776 $ 3,624 $ 239,678 $ 8,024 $ 638,454 $ 11,648 Held-to-maturity debt securities: State and political subdivisions $ 23,404 $ 59 $ 5,625 $ 32 $ 29,029 $ 91 Total temporarily impaired investments $ 23,404 $ 59 $ 5,625 $ 32 $ 29,029 $ 91 Other equity investments $ — $ — $ 624 $ 20 $ 624 $ 20 At June 30, 2018 , we owned debt securities totaling $1.02 billion for which the amortized cost basis exceeded fair value. Total unrealized losses on these securities were $33.0 million at June 30, 2018 . The temporary impairment is the result of changes in market interest rates subsequent to purchase. 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 debt 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 debt securities, with the exception of one having a fair value of $0.8 million at June 30, 2018 , were AA-rated or better at the time of purchase and remained investment grade at June 30, 2018 . All securities were evaluated for OTTI at June 30, 2018 and December 31, 2017 . The result of this evaluation showed no OTTI as of June 30, 2018 or December 31, 2017 . The estimated weighted average duration of MBS was 5.4 years at June 30, 2018 . |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
LOANS | LOANS The following table shows our loan portfolio by category: (Dollars in thousands) June 30, 2018 December 31, 2017 Commercial and industrial $ 1,526,113 $ 1,464,554 Owner-occupied commercial 1,085,895 1,079,247 Commercial mortgages 1,160,654 1,187,705 Construction 297,120 281,608 Residential (1) 229,215 253,301 Consumer 618,740 558,493 4,917,737 4,824,908 Less: Deferred fees, net 7,645 7,991 Allowance for loan losses 41,037 40,599 Net loans $ 4,869,055 $ 4,776,318 (1) Includes reverse mortgages, at fair value of $16.1 million at June 30, 2018 and $19.8 million at December 31, 2017 . 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) June 30, 2018 December 31, 2017 Outstanding principal balance $ 23,163 $ 27,034 Carrying amount 18,397 21,295 Allowance for loan losses 326 358 The following table presents the changes in accretable yield on the acquired credit impaired loans for the six months ended June 30, 2018 : (Dollars in thousands) Six months ended June 30, 2018 Balance at beginning of period $ 3,035 Accretion (918 ) Reclassification from nonaccretable difference 1,078 Additions/adjustments (270 ) Disposals — Balance at end of period $ 2,925 |
ALLOWANCE FOR LOAN LOSSES AND C
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
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 in 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, ASC 450, Contingencies and ASC 310, Receivables . 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, as 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 six months ended June 30, 2018 and 2017 , net charge-offs totaled $5.7 million , or 0.24% , of average loans annualized, and $3.8 million , or 0.17% , 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. The probability of default is calculated based on the historical rate of migration to impaired status during the last 30 quarters. During the second quarter of 2018 , we increased the look-back period to 30 quarters from the 28 quarters used at December 31, 2017 . This increase in the look-back period allows us to continue to anchor to the fourth quarter of 2010 to ensure that the quantitative reserves calculated by the allowance for loan loss 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 30 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, and • The competitive environment, as it could impact loan structure and underwriting. The above factors are based on their relative standing compared to the period in which historic losses are used in quantitative reserve estimates and current directional trends. Qualitative factors in our model can add to or subtract from quantitative 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 nine quarters as of June 30, 2018 . Our residential mortgage and consumer LEP remained at four quarters as of June 30, 2018 . We evaluate LEP quarterly for reasonableness and complete a detailed historical analysis of our LEP annually for our commercial portfolio and review the current four quarter LEP for the retail portfolio to determine the continued reasonableness of this assumption. 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 and six months ended June 30, 2018 : (Dollars in thousands) Commercial Owner-occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Total Three months ended June 30, 2018 Allowance for loan losses Beginning balance $ 16,102 $ 5,359 $ 6,617 $ 2,864 $ 1,680 $ 8,188 $ 40,810 Charge-offs (1,740 ) (341 ) — — (54 ) (828 ) (2,963 ) Recoveries 359 7 3 1 75 247 692 Provision (credit) 1,133 204 337 422 (182 ) 537 2,451 Provision for acquired loans (12 ) 55 (6 ) 2 — 8 47 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Six months ended June 30, 2018 Allowance for loan losses Beginning balance $ 16,732 $ 5,422 $ 5,891 $ 2,861 $ 1,798 $ 7,895 $ 40,599 Charge-offs (5,100 ) (351 ) (48 ) — (54 ) (1,291 ) (6,844 ) Recoveries 439 12 137 1 91 454 1,134 Provision (credit) 3,783 146 954 450 (313 ) 1,086 6,106 Provision for acquired loans (12 ) 55 17 (23 ) (3 ) 8 42 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Period-end allowance allocated to: Loans individually evaluated for impairment $ 2,208 $ — $ 63 $ 593 $ 592 $ 175 $ 3,631 Loans collectively evaluated for impairment 13,472 5,266 6,804 2,687 891 7,960 37,080 Acquired loans evaluated for impairment 162 18 84 9 36 17 326 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Period-end loan balances: Loans individually evaluated for impairment (2) $ 17,015 $ 3,224 $ 6,737 $ 5,557 $ 12,282 $ 7,714 $ 52,529 Loans collectively evaluated for impairment 1,404,662 952,627 972,684 283,480 134,323 581,536 4,329,312 Acquired nonimpaired loans 101,532 125,129 172,082 7,352 65,723 29,239 501,057 Acquired impaired loans 2,904 4,915 9,151 731 771 251 18,723 Ending balance (3) $ 1,526,113 $ 1,085,895 $ 1,160,654 $ 297,120 $ 213,099 $ 618,740 $ 4,901,621 (1) Period-end loan balance excludes reverse mortgages, at fair value of $16.1 million . (2) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $16.3 million for the period ending June 30, 2018 . 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 and six months ended June 30, 2017 : (Dollars in thousands) Commercial Owner - occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Total Three months ended June 30, 2017 Allowance for loan losses Beginning balance $ 14,205 $ 6,030 $ 8,335 $ 2,961 $ 2,054 $ 6,241 $ 39,826 Charge-offs (929 ) — (402 ) (117 ) (42 ) (888 ) (2,378 ) Recoveries 319 33 7 2 10 343 714 Provision (credit) 520 (265 ) (853 ) 471 17 1,453 1,343 Provision for acquired loans 109 18 248 115 11 (1 ) 500 Ending balance $ 14,224 $ 5,816 $ 7,335 $ 3,432 $ 2,050 $ 7,148 $ 40,005 Six months ended June 30, 2017 Allowance for loan losses Beginning balance $ 13,339 $ 6,588 $ 8,915 $ 2,838 $ 2,059 $ 6,012 $ 39,751 Charge-offs (2,184 ) (192 ) (506 ) (131 ) (53 ) (2,031 ) (5,097 ) Recoveries 403 108 53 4 130 648 1,346 Provision (credit) 2,469 (706 ) (1,371 ) 629 (97 ) 2,533 3,457 Provision for acquired loans 197 18 244 92 11 (14 ) 548 Ending balance $ 14,224 $ 5,816 $ 7,335 $ 3,432 $ 2,050 $ 7,148 $ 40,005 Period-end allowance allocated to: Loans individually evaluated for impairment $ 1,342 $ — $ 1,464 $ 772 $ 869 $ 195 $ 4,642 Loans collectively evaluated for impairment 12,587 5,783 5,714 2,595 1,147 6,949 34,775 Acquired loans evaluated for impairment 295 33 157 65 34 4 588 Ending balance $ 14,224 $ 5,816 $ 7,335 $ 3,432 $ 2,050 $ 7,148 $ 40,005 Period-end loan balances: Loans individually evaluated for impairment (2) $ 14,845 $ 3,432 $ 10,941 $ 4,808 $ 14,023 $ 8,396 $ 56,445 Loans collectively evaluated for impairment 1,171,831 945,919 921,069 252,637 157,653 439,273 3,888,382 Acquired nonimpaired loans 130,986 148,686 204,809 20,340 80,074 44,902 629,797 Acquired impaired loans 6,002 11,839 10,187 2,021 852 246 31,147 Ending balance (3) $ 1,323,664 $ 1,109,876 $ 1,147,006 $ 279,806 $ 252,602 $ 492,817 $ 4,605,771 (1) Period-end loan balance excludes reverse mortgages, at fair value of $21.6 million . (2) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $18.1 million for the period ending June 30, 2017 . Accruing troubled debt restructured loans are considered impaired loans. (3) 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: June 30, 2018 (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 $ 1,437 $ 43 $ — $ 1,480 $ 1,505,496 $ 2,904 $ 16,233 $ 1,526,113 Owner-occupied commercial 1,525 1,366 — 2,891 1,074,865 4,915 3,224 1,085,895 Commercial mortgages 374 97 279 750 1,144,385 9,151 6,368 1,160,654 Construction — — — — 291,752 731 4,637 297,120 Residential (1) 1,646 217 — 1,863 206,667 771 3,798 213,099 Consumer 456 697 220 1,373 615,119 251 1,997 618,740 Total (2) $ 5,438 $ 2,420 $ 499 $ 8,357 $ 4,838,284 $ 18,723 $ 36,257 $ 4,901,621 % of Total Loans 0.11 % 0.05 % 0.01 % 0.17 % 98.71 % 0.38 % 0.74 % 100 % (1) Residential accruing current balances excludes reverse mortgages at fair value of $16.1 million . (2) The balances above include a total of $501.1 million acquired non-impaired loans. December 31, 2017 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Total Past Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial $ 1,050 $ — $ — $ 1,050 $ 1,440,291 $ 4,156 $ 19,057 $ 1,464,554 Owner-occupied commercial 2,069 233 — 2,302 1,067,488 5,803 3,654 1,079,247 Commercial mortgages 320 90 — 410 1,171,701 9,724 5,870 1,187,705 Construction — — — — 278,864 940 1,804 281,608 Residential (1) 2,058 731 356 3,145 225,434 784 4,124 233,487 Consumer 1,117 463 105 1,685 554,634 247 1,927 558,493 Total (2) $ 6,614 $ 1,517 $ 461 $ 8,592 $ 4,738,412 $ 21,654 $ 36,436 $ 4,805,094 % of Total Loans 0.14 % 0.03 % 0.01 % 0.18 % 98.61 % 0.45 % 0.76 % 100 % (1) Residential accruing current balances excludes reverse mortgages, at fair value of $19.8 million . (2) The balances above include a total of $565.5 million acquired non-impaired 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 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 June 30, 2018 and December 31, 2017 : June 30, 2018 (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 $ 17,935 $ 2,781 $ 15,154 $ 2,369 $ 21,035 $ 17,818 Owner-occupied commercial 4,919 3,224 1,695 18 5,542 5,845 Commercial mortgages 8,372 6,565 1,807 147 17,314 9,882 Construction 5,785 1,346 4,439 602 6,254 5,404 Residential 12,493 7,513 4,980 628 14,863 13,832 Consumer 7,844 6,577 1,267 192 8,710 7,891 Total (2) $ 57,348 $ 28,006 $ 29,342 $ 3,956 $ 73,718 $ 60,672 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $4.8 million in the ending loan balance and $5.5 million in the contractual principal balance. December 31, 2017 (Dollars in thousands) Ending Loan Balances Loans with No Related (1) Loans with Related Reserve Related Reserve Contractual Principal Balances Average Loan Balances Commercial $ 20,842 $ 3,422 $ 17,420 $ 3,861 $ 23,815 $ 15,072 Owner-occupied commercial 5,374 3,654 1,720 12 5,717 5,827 Commercial mortgages 7,598 4,487 3,111 112 16,658 12,630 Construction 6,292 6,023 269 33 6,800 4,523 Residential 14,181 8,282 5,899 796 17,015 14,533 Consumer 7,819 6,304 1,515 203 8,977 8,158 Total (2) $ 62,106 $ 32,172 $ 29,934 $ 5,017 $ 78,982 $ 60,743 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $5.8 million in the ending loan balance and $6.8 million in the contractual principal balance. Interest income of $0.4 million and $0.7 million was recognized on impaired loans during the three and six months ended June 30, 2018 , respectively. Interest income of $0.4 million and $0.7 million was recognized on impaired loans during the three and six months ended June 30, 2017 , respectively. As of June 30, 2018 , there were 27 residential loans and 10 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $2.5 million and $5.8 million , respectively. As of December 31, 2017 , there were 33 residential loans and 8 commercial loans in the process of foreclosure. The total outstanding balance on the loans was $2.9 million and $6.0 million , respectively. Reserves on Acquired Nonimpaired Loans In accordance with ASC 310, loans acquired by the Bank through its mergers with First National Bank of Wyoming, Alliance Bancorp, Inc. (Alliance) and Penn Liberty Bank (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 . Loans 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 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 June 30, 2018 (Dollars in thousands) Commercial and Industrial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) Amount % Risk Rating: Special mention $ 20,847 $ 17,022 $ 6,419 $ — $ 44,288 Substandard: Accrual 28,530 18,741 4,532 1,092 52,895 Nonaccrual 14,025 3,224 6,304 4,044 27,597 Doubtful 2,208 — 63 593 2,864 Total Special Mention and Substandard 65,610 38,987 17,318 5,729 127,644 3 % Acquired impaired 2,904 4,915 9,151 731 17,701 1 % Pass 1,457,599 1,041,993 1,134,185 290,660 3,924,437 96 % Total $ 1,526,113 $ 1,085,895 $ 1,160,654 $ 297,120 $ 4,069,782 100 % (1) Table includes $406.1 million of acquired non-impaired loans as of June 30, 2018 . December 31, 2017 (Dollars in thousands) Commercial and Industrial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) Amount % Risk Rating: Special mention $ 22,789 $ 16,783 $ — $ — $ 39,572 Substandard: Accrual 34,332 19,386 1,967 4,965 60,650 Nonaccrual 15,370 3,654 5,852 1,804 26,680 Doubtful 3,687 — 18 — 3,705 Total Special Mention and Substandard 76,178 39,823 7,837 6,769 130,607 3 % Acquired impaired 4,156 5,803 9,724 940 20,623 1 % Pass 1,384,220 1,033,621 1,170,144 273,899 3,861,884 96 % Total $ 1,464,554 $ 1,079,247 $ 1,187,705 $ 281,608 $ 4,013,114 100 % (1) Table includes $457.3 million of acquired non-impaired loans as of December 31, 2017 . Residential and Consumer Credit Exposure (Dollars in thousands) Residential (2) Consumer Total Residential and Consumer (3) June 30, December 31, June 30, December 31, June 30, 2018 December 31, 2017 2018 2017 2018 2017 Amount Percent Amount Percent Nonperforming (1) $ 12,282 $ 13,778 $ 7,714 $ 7,588 $ 19,996 2 % $ 21,366 3 % Acquired impaired loans 771 784 251 247 1,022 — % 1,031 — % Performing 200,046 218,925 610,775 550,658 810,821 98 % 769,583 97 % Total $ 213,099 $ 233,487 $ 618,740 $ 558,493 $ 831,839 100 % $ 791,980 100 % (1) Includes $14.2 million as of June 30, 2018 and $15.3 million as of December 31, 2017 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 $16.1 million and $19.8 million of reverse mortgages at fair value as of June 30, 2018 and December 31, 2017 , respectively. (3) Total includes $95.0 million and $108.2 million in acquired non-impaired loans as of June 30, 2018 and December 31, 2017 , respectively. Troubled Debt Restructurings (TDRs) TDRs are recorded in accordance with ASC 310-40, Troubled Debt Restructuring by Creditors . The following table presents the balance of TDRs as of the indicated dates: (Dollars in thousands) June 30, 2018 December 31, 2017 Performing TDRs $ 16,273 $ 20,061 Nonperforming TDRs 19,539 9,627 Total TDRs $ 35,812 $ 29,688 Approximately $2.6 million and $1.0 million in related reserves have been established for these loans at June 30, 2018 and December 31, 2017 , respectively. The following table presents information regarding the types of loan modifications made for the six months ended June 30, 2018 and 2017: June 30, 2018 June 30, 2017 Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Commercial 3 — — — 3 1 1 — — 2 Owner-occupied commercial — — — — — — 1 — — 1 Commercial Mortgages 1 1 — — 2 — — — — — Construction — 1 — — 1 — 2 — 1 3 Residential 4 — — — 4 — — 1 — 1 Consumer 7 1 3 2 13 — — 7 4 11 Total 15 3 3 2 23 1 4 8 5 18 (1) Other includes underwriting exceptions. 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, which is typically six months , and payment is reasonably assured. The following table presents loans identified as TDRs during the three and six months ended June 30, 2018 and 2017 . Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Pre Modification Post Modification Pre Modification Post Modification Pre Modification Post Modification Pre Modification Post Modification Commercial $ 4,782 $ 4,782 $ 338 $ 338 $ 4,782 $ 4,782 $ 781 $ 781 Owner-occupied commercial — — — — — — 3,071 3,071 Commercial mortgages 1,564 1,564 — — 2,022 2,022 — — Construction — — 124 124 920 920 1,836 1,836 Residential 469 469 — — 469 469 242 242 Consumer 861 861 674 674 1,123 1,123 1,258 1,258 Total $ 7,676 $ 7,676 $ 1,136 $ 1,136 $ 9,316 $ 9,316 $ 7,188 $ 7,188 During the six months ended June 30, 2018 , the TDRs set forth in the table above resulted in $0.7 million decrease in our allowance for loan losses and $0.1 million of additional charge-offs. For the same period of 2017 , the TDRs set forth in the table above increased our allowance for loan losses by $0.3 million and resulted in no additional charge-offs. During the three months ended June 30, 2018 , two TDRs defaulted that had received troubled debt modification during the past twelve months with a total loan amount of $0.1 million . During the three months ended June 30, 2017 , two TDRs defaulted that had received troubled debt modification during the past twelve months with a total loan amount of $0.6 million . |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS The following table shows our deposits by category: (Dollars in thousands) June 30, 2018 December 31, 2017 Noninterest-bearing: Noninterest demand (1) $ 1,434,549 $ 1,420,760 Total noninterest-bearing $ 1,434,549 $ 1,420,760 Interest-bearing: Interest-bearing demand $ 966,736 $ 1,071,512 Savings 565,074 549,744 Money market 1,377,682 1,347,146 Total core deposits (1) 2,909,492 2,968,402 Customer time deposits (1) 690,267 629,071 Brokered deposits 332,247 229,371 Total interest-bearing 3,932,006 3,826,844 Total deposits $ 5,366,555 $ 5,247,604 (1) Noninterest demand, total core deposits and customer time deposits represent the Company's total customer deposits. |
ASSOCIATE BENEFIT PLANS
ASSOCIATE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2018 | |
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 for 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. We recognize our net periodic benefit cost in Salaries, benefits and other compensation in our Consolidated Statements of Income. The following table presents the components of net periodic benefit cost related to our postretirement medical benefits plan measured at January 1, 2018 and 2017. Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2018 2017 2018 2017 Service cost $ 15 $ 14 $ 30 $ 29 Interest cost 18 19 35 38 Prior service cost amortization (19 ) (19 ) (38 ) (38 ) Net gain recognition (12 ) (18 ) (23 ) (34 ) Net periodic benefit cost $ 2 $ (4 ) $ 4 $ (5 ) 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 presents the components of net periodic benefit cost related to the Alliance Associate Pension Plan measured at January 1, 2018. Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2018 2017 2018 2017 Service cost $ 10 $ 10 $ 20 $ 20 Interest cost 74 75 147 150 Expected return on plan assets (137 ) (135 ) (272 ) (270 ) Prior service cost amortization — — — — Net gain recognition — — — — Net periodic benefit cost $ (53 ) $ (50 ) $ (105 ) $ (100 ) |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
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. We accounted for the tax effects of the Tax Cuts and Jobs Act, enacted on December 22, 2017, on a provisional basis. At December 31, 2017, the accounting for certain income tax effects was incomplete, but we determined reasonable estimates for those effects which were included in the financial statements. We expect to complete the accounting during 2018 in accordance with the one year measurement period. There were no unrecognized tax benefits as of June 30, 2018 . We record interest and penalties on potential income tax deficiencies as income tax expense. Our federal and state tax returns for the 2014 through 2017 tax years are subject to examination as of June 30, 2018 . We do not expect to record or realize any material unrecognized tax benefits during 2018 . 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, $0.5 million and $0.4 million of such amortization has been reflected as income tax expense for the three months ended June 30, 2018 and 2017, respectively, and $0.9 million and $0.8 million of such amortization has been reflected as income tax expense for the six months ended June 30, 2018 and June 30, 2017, respectively. The amount of affordable housing tax credits, amortization and tax benefits recorded as income tax expense for the six months ended June 30, 2018 were $0.9 million , $0.9 million and $0.1 million , respectively. The carrying value of the investment in affordable housing credits is $12.8 million at June 30, 2018 , compared to $13.8 million at December 31, 2017 . |
FAIR VALUE DISCLOSURES OF FINAN
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017 by level in the valuation hierarchy (as described above): June 30, 2018 (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 $ — $ 298,263 $ — $ 298,263 FNMA MBS — 538,240 — 538,240 FHLMC MBS — 93,738 — 93,738 GNMA MBS — 33,879 — 33,879 Other assets — 1,047 — 1,047 Total assets measured at fair value on a recurring basis $ — $ 965,167 $ — $ 965,167 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 4,616 $ — $ 4,616 Assets measured at fair value on a nonrecurring basis: Other investments (1) $ — $ — $ 33,589 $ 33,589 Other real estate owned — — 2,609 2,609 Loans held for sale — 31,672 — 31,672 Impaired loans, net — — 53,392 53,392 Total assets measured at fair value on a nonrecurring basis $ — $ 31,672 $ 89,590 $ 121,262 (1) See Note 1 for additional disclosures resulting from the Company's adoption of ASU 2016-01. December 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 $ — $ 246,539 $ — $ 246,539 FNMA MBS — 473,987 — 473,987 FHLMC MBS — 87,875 — 87,875 GNMA MBS — 29,098 — 29,098 Other investments 623 — — 623 Other assets — 747 — 747 Total assets measured at fair value on a recurring basis $ 623 $ 838,246 $ — $ 838,869 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 3,225 $ — $ 3,225 Assets measured at fair value on a nonrecurring basis Other real estate owned — — 2,503 2,503 Loans held for sale — 31,055 — 31,055 Impaired loans, net — — 57,089 57,089 Total assets measured at fair value on a nonrecurring basis $ — $ 31,055 $ 59,592 $ 90,647 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2018 . 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 June 30, 2018 , securities classified as available-for-sale are reported at fair value using Level 2 inputs. Included in the Level 2 total are $964.1 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 investments Other investments includes our investments in equity securities with and without readily determinable fair values. Equity investments with readily determinable fair values are categorized as Level 1. Equity investments without readily determinable fair values, which includes our Visa Class B shares, are categorized as Level 3. Our Visa Class B ownership includes shares acquired at no cost from our prior participation in Visa’s network while Visa operated as a cooperative as well as shares subsequently acquired through private transactions and auctions. Our equity investments without readily determinable fair values are held at cost, and are adjusted for any observable transactions during the reporting period. As a result of our adoption of ASU 2016-01 and observable market transactions, we recorded an unrealized gain on these shares of $15.3 million during the first quarter of 2018. See Note 1 for further information. 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 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 wholesale mortgage banks 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 typically ranges from 10% - 20% . 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 $57.3 million and $62.1 million at June 30, 2018 and December 31, 2017 , respectively. The valuation allowance on impaired loans was $4.0 million as of June 30, 2018 and $5.0 million as of December 31, 2017 . 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 as described above in available-for-sale securities. Other investments Other investments includes our investments in equity securities with and without readily determinable fair values (see discussion in “Fair Value of Financial Assets and Liabilities” section above). 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 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 other things, investments in subsidiaries, prepaid expenses, interest and fee income receivable, derivative financial instruments and deferred tax assets (see discussion in “Fair Value of Financial Assets and Liabilities” section above). 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, among others, cash flow derivatives and derivative on the residential mortgage held for sale pipeline. Valuation of our cash flow derivative is obtained from an independent pricing service and also from the derivative counterparty. Valuation for the residential mortgage held for sale pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale. 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) June 30, 2018 December 31, 2017 Fair Value Measurement Book Value Fair Value Book Value Fair Value Financial assets: Cash and cash equivalents Level 1 $ 703,480 $ 703,480 $ 723,866 $ 723,866 Investment securities available for sale See previous table 964,120 964,120 837,499 837,499 Investment securities held to maturity Level 2 156,456 155,644 161,186 162,853 Other investments Level 1,3 33,589 33,589 14,671 45,326 Loans, held for sale Level 2 31,672 31,672 31,055 31,055 Loans, net (1)(2) Level 2,3 4,815,663 4,656,304 4,719,229 4,699,458 Impaired loans, net Level 3 53,392 53,392 57,089 57,089 Stock in FHLB of Pittsburgh Level 2 29,805 29,805 31,284 31,284 Accrued interest receivable Level 2 20,393 20,393 19,405 19,405 Other assets Level 3 1,047 1,047 2,883 2,883 Financial liabilities: Deposits Level 2 5,366,555 5,341,346 5,247,604 4,848,588 Borrowed funds Level 2 896,350 890,793 937,806 937,605 Standby letters of credit Level 3 381 381 603 603 Accrued interest payable Level 2 4,131 4,131 1,037 1,037 Other liabilities Level 2 4,616 4,616 3,188 3,188 (1) Excludes impaired loans, net. (2) Includes reverse mortgage loans, which are categorized as Level 3. At June 30, 2018 and December 31, 2017 we had no commitments to extend credit measured at fair value. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
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 economic conditions and our business operations. 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. Our cash flow hedging program began in the third quarter of 2016. 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 June 30, 2018 . Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Derivatives (Fair Value) Derivatives designated as hedging instruments: Interest rate products 3 $ 75,000 Other Liabilities $ (4,539 ) Total $ 75,000 $ (4,539 ) Derivatives not designated as hedging instruments: Interest rate lock commitment with customers 65,594 Other Assets $ 830 Interest rate lock commitment with customers 5,128 Other Liabilities (26 ) Forward sale commitments 34,944 Other Assets 216 Forward sale commitments 33,564 Other Liabilities (105 ) Total $ 139,230 $ 915 Total derivatives $ 214,230 $ (3,624 ) Cash Flow Hedges of Interest Rate Risk Our objectives in using interest rate derivatives are to add stability to interest income 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 fixed amounts from a counterparty in exchange for us making variable-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 six months ended June 30, 2018 , such derivatives were used to hedge the variable cash flows associated with a variable rate loan pool. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the six months ended June 30, 2018 , we did not record any hedge ineffectiveness. Amounts reported in accumulated other comprehensive income related to derivatives are reclassified to interest income as interest payments are received on our variable-rate pooled loans. During the next twelve months, we estimate that $1.0 million will be reclassified as an increase to interest income. During the six months ended June 30, 2018 , $0.2 million was reclassified into interest income. We are hedging our exposure to the variability in future cash flows for forecasted transactions over a maximum period of one month (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). As of June 30, 2018 , we had three outstanding interest rate derivatives with an aggregate notional amount 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 and six months ended June 30, 2018 and June 30, 2017 . (Dollars in thousands) Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) 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 June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2018 2017 2018 2017 Interest Rate Products $ (246 ) $ 263 $ (1,010 ) $ 150 Interest income Total $ (246 ) $ 263 $ (1,010 ) $ 150 Amount of Gain or (Loss) Recognized in Income Amount of Gain or (Loss) Recognized in Income Location of Gain or (Loss) Recognized in Income (Dollars in thousands) Three months ended June 30, Six months ended June 30, Derivatives Not Designated as a Hedging Instrument 2018 2017 2018 2017 Interest Rate Lock Commitments $ 96 $ — $ (296 ) $ — Mortgage banking activities, net Forward Sale Commitments 60 $ — (332 ) $ — Mortgage banking activities, net Total $ 156 $ — $ (628 ) $ — Credit risk-related Contingent Features We have agreements with certain 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 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 June 30, 2018 , 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 $4.5 million . We have minimum collateral posting thresholds with certain of our derivative counterparties, and have posted collateral of $5.9 million against our obligations under these agreements. If we had breached any of these provisions at June 30, 2018 , we could have been required to settle our obligations under the agreements at the termination value. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
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 net 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. Cash Connect ® services non-bank and WSFS-branded ATMs and retail safes nationwide. 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 planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate, and institutional clients through multiple integrated businesses. WSFS Wealth Investments provides financial advisory services along with insurance and brokerage products. Cypress, a registered investment adviser, is a fee-only wealth management firm managing a “balanced” investment style portfolio focused on preservation of capital and generating current income. WSFS (West) Capital Management, a registered investment adviser, is a fee-only wealth management firm operating under a multi-family office philosophy to provide customized solutions to institutions and high-net-worth individuals. The trust division of WSFS Bank (doing business as Christiana Trust) provides personal trust and fiduciary services, as well as, trustee, agency, bankruptcy administration, custodial and commercial domicile services to corporate and institutional clients. Powdermill is a multi-family office specializing in providing independent solutions to high-net-worth individuals, families and corporate executives through a coordinated, centralized approach. WSFS Wealth Client Management serves high-net-worth clients by delivering credit and deposit products and partnering with other Wealth Management units to provide comprehensive solutions to clients. The following tables show segment results for the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 (Dollars in thousands) WSFS Bank Cash ® Wealth Management Total WSFS Bank Cash ® Wealth Total Statements of Income External customer revenues: Interest income $ 69,599 $ — $ 2,552 $ 72,151 $ 60,234 $ — $ 2,100 $ 62,334 Noninterest income 12,045 12,328 10,614 34,987 12,049 10,514 9,113 31,676 Total external customer revenues 81,644 12,328 13,166 107,138 72,283 10,514 11,213 94,010 Inter-segment revenues: Interest income 3,565 — 2,670 6,235 2,247 — 2,435 4,682 Noninterest income 2,219 200 37 2,456 1,906 207 40 2,153 Total inter-segment revenues 5,784 200 2,707 8,691 4,153 207 2,475 6,835 Total revenue 87,428 12,528 15,873 115,829 76,436 10,721 13,688 100,845 External customer expenses: Interest expense 10,599 — 563 11,162 7,739 — 281 8,020 Noninterest expenses 42,505 7,905 7,421 57,831 38,782 6,591 7,354 52,727 Provision for loan losses 2,284 — 214 2,498 1,316 — 527 1,843 Total external customer expenses 55,388 7,905 8,198 71,491 47,837 6,591 8,162 62,590 Inter-segment expenses: Interest expense 2,670 2,516 1,049 6,235 2,435 1,582 665 4,682 Noninterest expenses 237 637 1,582 2,456 247 673 1,233 2,153 Total inter-segment expenses 2,907 3,153 2,631 8,691 2,682 2,255 1,898 6,835 Total expenses 58,295 11,058 10,829 80,182 50,519 8,846 10,060 69,425 Income before taxes $ 29,133 $ 1,470 $ 5,044 $ 35,647 $ 25,917 $ 1,875 $ 3,628 $ 31,420 Income tax provision 6,907 10,850 Consolidated net income $ 28,740 $ 20,570 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 (Dollars in thousands) WSFS Bank Cash Wealth Total WSFS Bank Cash Wealth Total Statements of Income External customer revenues: Interest income $ 134,889 $ — $ 4,875 $ 139,764 $ 118,922 $ — $ 4,238 $ 123,160 Noninterest income 38,651 23,681 20,122 82,454 22,216 20,191 17,361 59,768 Total external customer revenues 173,540 23,681 24,997 222,218 141,138 20,191 21,599 182,928 Inter-segment revenues: Interest income 6,533 — 5,033 11,566 4,243 — 4,500 8,743 Noninterest income 4,327 381 71 4,779 4,070 398 76 4,544 Total inter-segment revenues 10,860 381 5,104 16,345 8,313 398 4,576 13,287 Total revenue 184,400 24,062 30,101 238,563 149,451 20,589 26,175 196,215 External customer expenses: Interest expense 20,102 — 959 21,061 15,202 — 541 15,743 Noninterest expenses 81,940 15,224 14,079 111,243 77,742 12,726 13,765 104,233 Provision for loan losses 5,945 — 203 6,148 3,032 — 973 4,005 Total external customer expenses 107,987 15,224 15,241 138,452 95,976 12,726 15,279 123,981 Inter-segment expenses: Interest expense 5,033 4,575 1,958 11,566 4,500 2,987 1,256 8,743 Noninterest expenses 452 1,309 3,018 4,779 474 1,388 2,682 4,544 Total inter-segment expenses 5,485 5,884 4,976 16,345 4,974 4,375 3,938 13,287 Total expenses 113,472 21,108 20,217 154,797 100,950 17,101 19,217 137,268 Income before taxes $ 70,928 $ 2,954 $ 9,884 $ 83,766 $ 48,501 $ 3,488 $ 6,958 $ 58,947 Income tax provision 17,676 19,440 Consolidated net income $ 66,090 $ 39,507 The following table shows significant components of segment net assets as of June 30, 2018 and December 31, 2017 : June 30, 2018 December 31, 2017 (Dollars in thousands) WSFS Bank Cash ® Wealth Total WSFS Bank Cash ® Wealth Management Total Statements of Financial Condition Cash and cash equivalents $ 87,285 $ 603,685 $ 12,510 $ 703,480 $ 104,530 $ 611,385 $ 7,951 $ 723,866 Goodwill 145,808 — 20,199 166,007 145,808 — 20,199 166,007 Other segment assets 6,007,041 6,819 229,200 6,243,060 5,882,910 6,078 220,679 6,109,667 Total segment assets $ 6,240,134 $ 610,504 $ 261,909 $ 7,112,547 $ 6,133,248 $ 617,463 $ 248,829 $ 6,999,540 Capital expenditures $ 3,409 $ 127 $ 254 $ 3,790 $ 8,197 $ 184 $ 613 $ 8,994 |
INDEMNIFICATIONS AND GUARANTEES
INDEMNIFICATIONS AND GUARANTEES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
INDEMNIFICATIONS AND GUARANTEES | INDEMNIFICATIONS AND GUARANTEES Secondary Market Loan Sales Given the current interest rate environment and our overall asset and liability management approach, we typically sell newly originated residential mortgage loans in the secondary market to mortgage loan aggregators and on a more limited basis, to government sponsored entities (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 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 six months ended June 30, 2018 . Swap Guarantees We entered into agreements with five 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 June 30, 2018 and December 31, 2017 , there were 137 and 134 variable-rate to fixed-rate swap transactions between the third party financial institutions and our customers, respectively. The initial notional aggregate amount was approximately $601.7 million at June 30, 2018 compared to $561.8 million at December 31, 2017 . At June 30, 2018 maturities ranged from under 1 year to 10 years. The aggregate market value of these swaps to the customers was an asset of $6.9 million at June 30, 2018 and a liability of $3.3 million at December 31, 2017 . We had no reserves for the swap guarantees as of June 30, 2018 . |
CHANGE IN ACCUMULATED OTHER COM
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS | CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss 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 are presented net of tax as a component of stockholders' equity. Amounts that are reclassified out of accumulated other comprehensive loss are recorded on the Consolidated Statement of Income either as a gain or loss. Changes to accumulated other comprehensive loss 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 investment securities held to maturity Net change in defined benefit plan Net change in fair value of derivatives used for cash flow hedges Total Balance, March 31, 2018 $ (19,685 ) $ 1,104 $ 924 $ (3,163 ) $ (20,820 ) Other comprehensive (loss) income before reclassifications (4,501 ) — 8 (245 ) (4,738 ) Less: Amounts reclassified from accumulated other comprehensive (loss) income — (117 ) (38 ) — (155 ) Net current-period other comprehensive loss (4,501 ) (117 ) (30 ) (245 ) (4,893 ) Balance, June 30, 2018 $ (24,186 ) $ 987 $ 894 $ (3,408 ) $ (25,713 ) Balance, March 31, 2017 $ (7,128 ) $ 1,291 $ 934 $ (1,884 ) $ (6,787 ) Other comprehensive income before reclassifications 3,241 — — 262 3,503 Less: Amounts reclassified from accumulated other comprehensive income (455 ) (97 ) (22 ) — (574 ) Net current-period other comprehensive (loss) income 2,786 (97 ) (22 ) 262 2,929 Balance, June 30, 2017 $ (4,342 ) $ 1,194 $ 912 $ (1,622 ) $ (3,858 ) Balance, December 31, 2017 $ (7,842 ) $ 1,223 $ 865 $ (2,398 ) $ (8,152 ) Other comprehensive (loss) income before reclassifications (16,328 ) — 8 (1,010 ) (17,330 ) Less: Amounts reclassified from accumulated other comprehensive (loss) income (16 ) (236 ) 21 — (231 ) Net current-period other comprehensive (loss) income (16,344 ) (236 ) 29 (1,010 ) (17,561 ) Balance, June 30, 2018 $ (24,186 ) $ 987 $ 894 $ (3,408 ) $ (25,713 ) Balance, December 31, 2016 $ (8,194 ) $ 1,392 $ 957 $ (1,772 ) $ (7,617 ) Other comprehensive income before reclassifications 4,513 — — 150 4,663 Less: Amounts reclassified from accumulated other comprehensive income (661 ) (198 ) (45 ) — (904 ) Net current-period other comprehensive income (loss) 3,852 (198 ) (45 ) 150 3,759 Balance, June 30, 2017 $ (4,342 ) $ 1,194 $ 912 $ (1,622 ) $ (3,858 ) The Consolidated Statements of Income were impacted by components of other comprehensive income (loss) as shown in the table below: (Dollars in thousands) Three Months Ended June 30, Affected line item in Consolidated Statements of Income 2018 2017 Securities available for sale: Realized gains on securities transactions $ — $ (708 ) Security gains, net Income taxes — 253 Income tax provision Net of tax $ — $ (455 ) 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 $ (153 ) $ (159 ) Interest income on investment securities Income taxes 36 62 Income tax provision Net of tax $ (117 ) $ (97 ) Amortization of Defined Benefit Pension items: Prior service costs (credits) (1) $ (19 ) $ (19 ) Transition obligation — — Actuarial gains (12 ) (18 ) Total before tax $ (31 ) $ (37 ) Salaries, benefits and other compensation Income taxes (7 ) 15 Income tax provision Net of tax (38 ) (22 ) Total reclassifications $ (155 ) $ (574 ) Six Months Ended Affected line item in Consolidated Statements of Operations June 30, 2018 2017 Securities available-for-sale: Realized gains on securities transactions $ (21 ) $ (1,028 ) Security gains, net Income taxes 5 367 Income tax provision Net of tax $ (16 ) $ (661 ) 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 $ (309 ) $ (319 ) Interest income on investment securities Income taxes 73 121 Income tax provision Net of tax $ (236 ) $ (198 ) Amortization of Defined Benefit Pension items: Prior service costs (credits) (1) $ 40 $ (38 ) Transition obligation — — Actuarial gains (23 ) (34 ) Total before tax $ 17 $ (72 ) Salaries, benefits and other compensation Income taxes 4 27 Income tax provision Net of tax $ 21 $ (45 ) Total reclassifications $ (231 ) $ (904 ) (1) Prior service costs balance for the six months ended June 30, 2018 includes a tax true-up adjustment of $0.1 million from March 31, 2018. Note that the tax true-up was made to the deferred tax asset with an offset to AOCI and does not affect the actual net periodic benefit costs of the pension plan. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017 were $1.5 million and $1.2 million , respectively. Total deposits from related parties at June 30, 2018 and December 31, 2017 were $5.0 million and $5.4 million , respectively. During the second quarter of 2018, new loans and credit line advances to related parties were $0.3 million and repayments were less than $0.1 million . |
LEGAL AND OTHER PROCEEDINGS
LEGAL AND OTHER PROCEEDINGS | 6 Months Ended |
Jun. 30, 2018 | |
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. In addition, our defense of litigation claims may result in legal fees, which we expense as incurred. As previously disclosed, on February 27, 2018 , we entered into a settlement agreement with Universitas Education, LLC (Universitas) to resolve arbitration claims related to services provided by Christiana Bank and Trust Company (CB&T) prior to its acquisition by WSFS in December 2010. In accordance with the litigation settlement, we paid Universitas $12.0 million to fully settle the claims. WSFS will pursue all of its rights and remedies to recover this settlement payment and related costs, including by enforcing the indemnity right in the 2010 purchase agreement by which we acquired CB&T. Additionally, we have sued various insurance carriers to recover costs and expenses related to the settlement and the related litigation. 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. |
SUBSQUENT EVENT SUBSQUENT EVENT
SUBSQUENT EVENT SUBSQUENT EVENT | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSQUENT EVENT | SUBSEQUENT EVENTS On August 7, 2018, the Company entered into a definitive agreement with Beneficial Bancorp, Inc. (“Beneficial”), the parent holding company for Beneficial Bank, in a stock and cash merger valued at approximately $1.5 billion . The agreement provides for the merger of Beneficial and Beneficial Bank with and into the Company and WSFS Bank, respectively. Each share of Beneficial common stock will be converted upon closing into the right to receive 0.3013 shares of WSFS common stock and $2.93 in cash. The closing of this transaction is subject to approval by the Company’s and Beneficial’s stockholders, regulatory approvals and other customary closing conditions and is expected to close in the first quarter of 2019. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 or WSFS), Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank), WSFS Wealth Management, LLC (Powdermill), WSFS Capital Management, LLC (West Capital), Cypress Capital Management, LLC (Cypress) and Christiana Trust Company of Delaware (Christiana Trust DE). We also have one unconsolidated subsidiary, WSFS Capital Trust III. WSFS Bank has three wholly-owned subsidiaries: WSFS Wealth Investments, 1832 Holdings, Inc. and Monarch Entity Services LLC. 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, and other-than-temporary impairment (OTTI). Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the 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. Certain prior period amounts have been reclassified to conform with current period presentation. 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, 2018 . These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the 2017 Annual Report on Form 10-K) that was filed with the SEC on March 1, 2018 and is available at www.sec.gov or on our website at http://investors.wsfsbank.com/financials.cfm. All significant intercompany transactions were eliminated in consolidation. |
Equity Securities | Equity Securities Following our adoption of ASU 2016-01 on January 1, 2018, as described in " Recent Accounting Pronouncements ", we account for our investments in equity securities in accordance with ASC 321-10 Investments - Equity Securities. Our equity securities may be classified into two categories and accounted for as follows: • Equity securities with a readily determinable fair value are reported at fair value, with unrealized gains and losses included in earnings. Any dividends received are recorded in interest income. • Equity securities without a readily determinable fair value are reported at their cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer and their impact on fair value. Any dividends received are recorded in interest income. Equity investments include our investment in Visa Class B shares and certain other equity investments. The fair value of equity investments with readily determinable fair values is primarily obtained from third-party pricing services. For equity investments without readily determinable fair values, when an orderly transaction for the identical or similar investment of the same issuer is identified, we use the valuation techniques permitted under ASC 820 Fair Value to evaluate the observed transaction(s) and adjust the fair value of the equity investment. ASC 321-10 also provides guidance related to accounting for impairment of equity securities without readily determinable fair values. The qualitative assessment to determine whether impairment exists requires the use of our judgment in certain circumstances. If, after completing the qualitative assessment we conclude an equity investment without a readily determinable fair value is impaired, a loss for the difference between the equity investment’s carrying value and its fair value may be recognized as a reduction to noninterest income in the Consolidated Statements of Income. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2018 In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 requires an entity to recognize revenue when it transfers promised goods or services to customers using a five-step model in which entities should 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 deferred 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 on certain provisions in Topic 606. These ASC updates were effective for public business entities with annual and interim reporting periods in fiscal years beginning after December 15, 2017. The standard permits the use of either the retrospective or modified retrospectively with the cumulative effect transition method. The Company adopted the standard on January 1, 2018. Consistent with the transition guidance in ASC 606, results for reporting periods beginning after January 1, 2018 are presented in accordance with ASC 606, while prior period amounts are reported in accordance with ASC 605. For revenue streams determined to be within the scope of the new standard, we concluded that the adoption of the standard did not have a material effect on our Consolidated Financial Statements at the time of adoption. See Note 2 for additional disclosures resulting from our adoption of this standard. 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, less 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. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The standard requires retrospective application for equity investments with readily determinable fair values and prospective application for equity investments without readily determinable fair values. The Company adopted the standard on January 1, 2018 on a prospective basis for its equity investments without readily determinable fair values, and the adoption of the standard did not have an effect on our Consolidated Financial Statements at the time of adoption. Subsequent to the filing of our 2017 Annual Report on Form 10-K, we identified observable transactions related to an equity investment without a readily determinable fair value. These identified, observable transactions required the revaluation of this equity investment. The result of the revaluation was recorded in the Consolidated Statements of Income in the first quarter of 2018. See Note 10 for further information. 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 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 adopted this standard on January 1, 2018, on a retrospective basis and the adoption did not have an effect on the 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 adopted this standard on January 1, 2018 on a prospective basis with no impact to the Consolidated Financial Statements at the time of adoption. 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, 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, each distinct nonfinancial asset and in-substance nonfinancial asset should be derecognized when the counterparty obtains control. The guidance is effective 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 adopted this standard on January 1, 2018 on a modified retrospective basis and the adoption did not have an effect on the Consolidated Financial Statements at the time of adoption. 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 in annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted. The Company adopted this standard on January 1, 2018 on a retrospective basis with no impact to the Consolidated Financial Statements at the time of adoption. In May 2017, the FASB issued ASU No. 2017-09, Scope of Modification Accounting . The new guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. If the award’s fair value, vesting conditions and classification remain the same immediately before and after the change, modification accounting is not applied. Additionally, the guidance does not require valuation before or after the change if the change does not affect any of the inputs to the model used to value the award. The guidance is effective in annual and interim periods beginning after December 15, 2017. Early adoption is permitted. The new guidance will be applied on a prospective basis to awards modified on or after the adoption date. The Company adopted this standard on January 1, 2018 on a prospective basis with no impact to the Consolidated Financial Statements at the time of adoption. Accounting Guidance Pending Adoption at June 30, 2018 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 substantially 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 will adopt this guidance on January 1, 2019. The Company has substantially completed its process of identifying its lease population as defined by this guidance and anticipates finalizing the impact analysis on the Consolidated Financial Statements early in the fourth quarter. To date, our preliminary review suggests that adoption will result in the recognition of additional assets and liabilities on our Consolidated Statements of Financial Condition. The Company will continue to assess the impact of this guidance, taking into consideration available accounting policy elections and significant assumptions and judgments such as the discount rate and renewal options. In addition, the Company continues to evaluate its internal systems, accounting policies, processes and related internal controls for potential effects. Our preliminary review determined a lease accounting and administration software would be used to assist us with initial and on-going requirements of the new guidance. The Company is currently in the process of implementing the software and anticipates completing implementation early in the fourth quarter. 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 does not plan to early adopt this guidance and will adopt this guidance on January 1, 2020. A cross-functional team from Finance, Credit, and IT is leading the implementation efforts to evaluate the impact of this guidance on the Company's Consolidated Financial Statements, internal systems, accounting policies, processes and related internal controls. We have engaged third-party experts and specialists, where necessary, to assist with the implementation efforts. To date, we are in the final phases of due diligence for potential software solutions which can support the acceptable methodologies, and expect to select a software solution during the third quarter of 2018. We also continue to perform due diligence on acceptable methodologies under the guidance, as well as evaluate the potential effects to our accounting policies, processes and related internal controls. Our review of this guidance to date suggests that adoption may materially increase the allowance for loan losses and decrease capital levels; however, the extent of these impacts will depend on the asset quality of the portfolio, macroeconomic conditions, and significant estimates and judgments made by management at the time of adoption. 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. 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 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, using the prospective method of adoption. 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 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. In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities (Topic 815) . The new guidance changes both the designation and measurement guidance for qualifying hedging relationships and simplifies the presentation of hedge results. Specifically, the guidance eliminates the requirement to separately measure and report hedge ineffectiveness and also aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Further, the new guidance provides entities the ability to apply hedge accounting to additional hedging strategies as well as permits a one-time reclassification of eligible to be hedged instruments from held to maturity to available for sale upon adoption. The guidance is effective in annual and interim periods beginning after December 15, 2018. Early adoption is permitted. Adoption using the modified retrospective approach is required for hedging relationships that exist as of the date of adoption; presentation and disclosure requirements are applied prospectively. The Company does not expect the application of this guidance to have a material impact on its Consolidated Financial Statements, except for the one-time reclassification, if elected. |
NONINTEREST INCOME (Tables)
NONINTEREST INCOME (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Credit/debit Card and ATM Income | The following table presents the components of credit/debit card and ATM income: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Bailment fees $ 6,588 $ 5,160 $ 12,681 $ 9,863 Interchange fees 3,847 3,498 7,307 6,696 Other card and ATM fees 274 267 526 497 Total credit/debit card and ATM income $ 10,709 $ 8,925 $ 20,514 $ 17,056 |
Schedule of Investment Management and Fiduciary Income | The following table presents the components of investment management and fiduciary income: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Trust fees $ 6,118 $ 4,977 $ 11,366 $ 9,273 Wealth management and advisory fees 4,126 3,858 8,067 7,601 Total investment management and fiduciary income $ 10,244 $ 8,835 $ 19,433 $ 16,874 |
Schedule of Deposit Service Charges | The following table presents the components of deposit service charges: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Service fees $ 2,634 $ 2,527 $ 5,214 $ 4,923 Return and overdraft fees 1,893 1,842 3,777 3,687 Other deposit service fees 137 191 303 347 Total deposit service charges $ 4,664 $ 4,560 $ 9,294 $ 8,957 |
Schedule of Other Income | The following table presents the components of other income: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Managed service fees 3,105 2,671 5,931 5,290 Currency preparation 818 737 1,543 1,420 ATM insurance 605 719 1,195 1,416 Miscellaneous products and services 2,583 1,924 4,350 3,120 Total other income $ 7,111 $ 6,051 $ 13,019 $ 11,246 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, (Dollars and shares in thousands, except per share data) 2018 2017 2018 2017 Numerator: Net income $ 28,740 $ 20,570 $ 66,090 $ 39,507 Denominator: Weighted average basic shares 31,567 31,443 31,497 31,425 Dilutive potential common shares 697 869 729 899 Weighted average fully diluted shares 32,264 32,312 32,226 32,324 Earnings per share: Basic $ 0.91 $ 0.65 $ 2.10 $ 1.26 Diluted $ 0.89 $ 0.64 $ 2.05 $ 1.22 Outstanding common stock equivalents having no dilutive effect 11 — 23 10 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 investments in available-for-sale and held-to-maturity debt securities as well as our equity investments. None of our investments in debt securities are classified as trading. June 30, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value Available-for-Sale Debt Securities CMO $ 307,500 $ 61 $ 9,298 $ 298,263 FNMA MBS 556,567 9 18,336 538,240 FHLMC MBS 97,033 2 3,297 93,738 GNMA MBS 34,843 94 1,058 33,879 $ 995,943 $ 166 $ 31,989 $ 964,120 Held-to-Maturity Debt Securities (1) State and political subdivisions $ 156,456 $ 231 $ 1,043 $ 155,644 Equity Investments (2) Visa Class B shares $ 14,943 $ 15,346 $ — $ 30,289 Other equity investments 3,300 — — 3,300 $ 18,243 $ 15,346 $ — $ 33,589 (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 $1.3 million at June 30, 2018 , related to securities transferred, which are offset in Accumulated other comprehensive loss, net of tax. (2) Equity investments are included in Other investments in the unaudited Consolidated Statements of Financial Condition. December 31, 2017 (Dollars in thousands) Amortized Cost Gross Gross Fair Available-for-Sale Debt Securities CMO $ 250,592 $ 88 $ 4,141 $ 246,539 FNMA MBS 479,218 941 6,172 473,987 FHLMC MBS 88,681 118 924 87,875 GNMA MBS 29,300 209 411 29,098 $ 847,791 $ 1,356 $ 11,648 $ 837,499 Held-to-Maturity Debt Securities (1) State and political subdivisions $ 161,186 $ 1,758 $ 91 $ 162,853 Equity Investments (2) Other equity investments $ 643 $ — $ 20 $ 623 $ 643 $ — $ 20 $ 623 (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 $1.6 million at December 31, 2017 , related to securities transferred, which are offset in Accumulated other comprehensive loss, net of tax. (2) Equity investments are included in Other investments in the unaudited Consolidated Statements of Financial Condition. |
Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of our available-for-sale debt securities at June 30, 2018 and December 31, 2017 are presented in the table below: Available for Sale Amortized Fair (Dollars in thousands) Cost Value June 30, 2018 Within one year $ — $ — After one year but within five years 19,868 19,332 After five years but within ten years 174,662 165,177 After ten years 801,413 779,611 $ 995,943 $ 964,120 December 31, 2017 Within one year $ — $ — After one year but within five years 20,051 19,825 After five years but within ten years 179,812 175,583 After ten years 647,928 642,091 $ 847,791 $ 837,499 The scheduled maturities of our held-to-maturity debt securities at June 30, 2018 and December 31, 2017 are presented in the table below: Held to Maturity Amortized Fair (Dollars in thousands) Cost Value June 30, 2018 Within one year $ 155 $ 155 After one year but within five years 6,837 6,824 After five years but within ten years 25,322 25,213 After ten years 124,142 123,452 $ 156,456 $ 155,644 December 31, 2017 Within one year $ 322 $ 320 After one year but within five years 5,895 5,894 After five years but within ten years 18,751 18,873 After ten years 136,218 137,766 $ 161,186 $ 162,853 |
Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category | For debt securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at June 30, 2018 . 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 debt securities: CMO $ 199,985 $ 5,031 $ 83,359 $ 4,267 $ 283,344 $ 9,298 FNMA MBS 397,186 10,438 114,832 7,898 512,018 18,336 FHLMC MBS 74,017 2,030 19,649 1,267 93,666 3,297 GNMA MBS 13,125 349 13,737 709 26,862 1,058 Total temporarily impaired investments $ 684,313 $ 17,848 $ 231,577 $ 14,141 $ 915,890 $ 31,989 Held-to-maturity debt securities: State and political subdivisions $ 103,069 $ 897 $ 5,723 $ 146 $ 108,792 $ 1,043 Total temporarily impaired investments $ 103,069 $ 897 $ 5,723 $ 146 $ 108,792 $ 1,043 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, 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 debt securities: CMO $ 146,726 $ 1,820 $ 77,149 $ 2,321 $ 223,875 $ 4,141 FNMA MBS 204,921 1,479 126,342 4,693 331,263 6,172 FHLMC MBS 42,514 269 21,405 655 63,919 924 GNMA MBS 4,615 56 14,782 355 19,397 411 Total temporarily impaired investments $ 398,776 $ 3,624 $ 239,678 $ 8,024 $ 638,454 $ 11,648 Held-to-maturity debt securities: State and political subdivisions $ 23,404 $ 59 $ 5,625 $ 32 $ 29,029 $ 91 Total temporarily impaired investments $ 23,404 $ 59 $ 5,625 $ 32 $ 29,029 $ 91 Other equity investments $ — $ — $ 624 $ 20 $ 624 $ 20 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Summary of Loan Portfolio by Category | The following table shows our loan portfolio by category: (Dollars in thousands) June 30, 2018 December 31, 2017 Commercial and industrial $ 1,526,113 $ 1,464,554 Owner-occupied commercial 1,085,895 1,079,247 Commercial mortgages 1,160,654 1,187,705 Construction 297,120 281,608 Residential (1) 229,215 253,301 Consumer 618,740 558,493 4,917,737 4,824,908 Less: Deferred fees, net 7,645 7,991 Allowance for loan losses 41,037 40,599 Net loans $ 4,869,055 $ 4,776,318 (1) Includes reverse mortgages, at fair value of $16.1 million at June 30, 2018 and $19.8 million at December 31, 2017 . |
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) June 30, 2018 December 31, 2017 Outstanding principal balance $ 23,163 $ 27,034 Carrying amount 18,397 21,295 Allowance for loan losses 326 358 |
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 six months ended June 30, 2018 : (Dollars in thousands) Six months ended June 30, 2018 Balance at beginning of period $ 3,035 Accretion (918 ) Reclassification from nonaccretable difference 1,078 Additions/adjustments (270 ) Disposals — Balance at end of period $ 2,925 |
ALLOWANCE FOR LOAN LOSSES AND32
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 and six months ended June 30, 2018 : (Dollars in thousands) Commercial Owner-occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Total Three months ended June 30, 2018 Allowance for loan losses Beginning balance $ 16,102 $ 5,359 $ 6,617 $ 2,864 $ 1,680 $ 8,188 $ 40,810 Charge-offs (1,740 ) (341 ) — — (54 ) (828 ) (2,963 ) Recoveries 359 7 3 1 75 247 692 Provision (credit) 1,133 204 337 422 (182 ) 537 2,451 Provision for acquired loans (12 ) 55 (6 ) 2 — 8 47 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Six months ended June 30, 2018 Allowance for loan losses Beginning balance $ 16,732 $ 5,422 $ 5,891 $ 2,861 $ 1,798 $ 7,895 $ 40,599 Charge-offs (5,100 ) (351 ) (48 ) — (54 ) (1,291 ) (6,844 ) Recoveries 439 12 137 1 91 454 1,134 Provision (credit) 3,783 146 954 450 (313 ) 1,086 6,106 Provision for acquired loans (12 ) 55 17 (23 ) (3 ) 8 42 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Period-end allowance allocated to: Loans individually evaluated for impairment $ 2,208 $ — $ 63 $ 593 $ 592 $ 175 $ 3,631 Loans collectively evaluated for impairment 13,472 5,266 6,804 2,687 891 7,960 37,080 Acquired loans evaluated for impairment 162 18 84 9 36 17 326 Ending balance $ 15,842 $ 5,284 $ 6,951 $ 3,289 $ 1,519 $ 8,152 $ 41,037 Period-end loan balances: Loans individually evaluated for impairment (2) $ 17,015 $ 3,224 $ 6,737 $ 5,557 $ 12,282 $ 7,714 $ 52,529 Loans collectively evaluated for impairment 1,404,662 952,627 972,684 283,480 134,323 581,536 4,329,312 Acquired nonimpaired loans 101,532 125,129 172,082 7,352 65,723 29,239 501,057 Acquired impaired loans 2,904 4,915 9,151 731 771 251 18,723 Ending balance (3) $ 1,526,113 $ 1,085,895 $ 1,160,654 $ 297,120 $ 213,099 $ 618,740 $ 4,901,621 (1) Period-end loan balance excludes reverse mortgages, at fair value of $16.1 million . (2) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $16.3 million for the period ending June 30, 2018 . 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 and six months ended June 30, 2017 : (Dollars in thousands) Commercial Owner - occupied Commercial Commercial Mortgages Construction Residential (1) Consumer Total Three months ended June 30, 2017 Allowance for loan losses Beginning balance $ 14,205 $ 6,030 $ 8,335 $ 2,961 $ 2,054 $ 6,241 $ 39,826 Charge-offs (929 ) — (402 ) (117 ) (42 ) (888 ) (2,378 ) Recoveries 319 33 7 2 10 343 714 Provision (credit) 520 (265 ) (853 ) 471 17 1,453 1,343 Provision for acquired loans 109 18 248 115 11 (1 ) 500 Ending balance $ 14,224 $ 5,816 $ 7,335 $ 3,432 $ 2,050 $ 7,148 $ 40,005 Six months ended June 30, 2017 Allowance for loan losses Beginning balance $ 13,339 $ 6,588 $ 8,915 $ 2,838 $ 2,059 $ 6,012 $ 39,751 Charge-offs (2,184 ) (192 ) (506 ) (131 ) (53 ) (2,031 ) (5,097 ) Recoveries 403 108 53 4 130 648 1,346 Provision (credit) 2,469 (706 ) (1,371 ) 629 (97 ) 2,533 3,457 Provision for acquired loans 197 18 244 92 11 (14 ) 548 Ending balance $ 14,224 $ 5,816 $ 7,335 $ 3,432 $ 2,050 $ 7,148 $ 40,005 Period-end allowance allocated to: Loans individually evaluated for impairment $ 1,342 $ — $ 1,464 $ 772 $ 869 $ 195 $ 4,642 Loans collectively evaluated for impairment 12,587 5,783 5,714 2,595 1,147 6,949 34,775 Acquired loans evaluated for impairment 295 33 157 65 34 4 588 Ending balance $ 14,224 $ 5,816 $ 7,335 $ 3,432 $ 2,050 $ 7,148 $ 40,005 Period-end loan balances: Loans individually evaluated for impairment (2) $ 14,845 $ 3,432 $ 10,941 $ 4,808 $ 14,023 $ 8,396 $ 56,445 Loans collectively evaluated for impairment 1,171,831 945,919 921,069 252,637 157,653 439,273 3,888,382 Acquired nonimpaired loans 130,986 148,686 204,809 20,340 80,074 44,902 629,797 Acquired impaired loans 6,002 11,839 10,187 2,021 852 246 31,147 Ending balance (3) $ 1,323,664 $ 1,109,876 $ 1,147,006 $ 279,806 $ 252,602 $ 492,817 $ 4,605,771 (1) Period-end loan balance excludes reverse mortgages, at fair value of $21.6 million . (2) The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $18.1 million for the period ending June 30, 2017 . Accruing troubled debt restructured loans are considered impaired loans. (3) 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: June 30, 2018 (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 $ 1,437 $ 43 $ — $ 1,480 $ 1,505,496 $ 2,904 $ 16,233 $ 1,526,113 Owner-occupied commercial 1,525 1,366 — 2,891 1,074,865 4,915 3,224 1,085,895 Commercial mortgages 374 97 279 750 1,144,385 9,151 6,368 1,160,654 Construction — — — — 291,752 731 4,637 297,120 Residential (1) 1,646 217 — 1,863 206,667 771 3,798 213,099 Consumer 456 697 220 1,373 615,119 251 1,997 618,740 Total (2) $ 5,438 $ 2,420 $ 499 $ 8,357 $ 4,838,284 $ 18,723 $ 36,257 $ 4,901,621 % of Total Loans 0.11 % 0.05 % 0.01 % 0.17 % 98.71 % 0.38 % 0.74 % 100 % (1) Residential accruing current balances excludes reverse mortgages at fair value of $16.1 million . (2) The balances above include a total of $501.1 million acquired non-impaired loans. December 31, 2017 (Dollars in thousands) 30–59 Days Past Due and Still Accruing 60–89 Days Past Due and Still Accruing Greater Total Past Accruing Current Balances Acquired Impaired Loans Nonaccrual Loans Total Loans Commercial $ 1,050 $ — $ — $ 1,050 $ 1,440,291 $ 4,156 $ 19,057 $ 1,464,554 Owner-occupied commercial 2,069 233 — 2,302 1,067,488 5,803 3,654 1,079,247 Commercial mortgages 320 90 — 410 1,171,701 9,724 5,870 1,187,705 Construction — — — — 278,864 940 1,804 281,608 Residential (1) 2,058 731 356 3,145 225,434 784 4,124 233,487 Consumer 1,117 463 105 1,685 554,634 247 1,927 558,493 Total (2) $ 6,614 $ 1,517 $ 461 $ 8,592 $ 4,738,412 $ 21,654 $ 36,436 $ 4,805,094 % of Total Loans 0.14 % 0.03 % 0.01 % 0.18 % 98.61 % 0.45 % 0.76 % 100 % (1) Residential accruing current balances excludes reverse mortgages, at fair value of $19.8 million . (2) The balances above include a total of $565.5 million acquired non-impaired loans |
Analysis of Impaired Loans | The following tables provide an analysis of our impaired loans at June 30, 2018 and December 31, 2017 : June 30, 2018 (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 $ 17,935 $ 2,781 $ 15,154 $ 2,369 $ 21,035 $ 17,818 Owner-occupied commercial 4,919 3,224 1,695 18 5,542 5,845 Commercial mortgages 8,372 6,565 1,807 147 17,314 9,882 Construction 5,785 1,346 4,439 602 6,254 5,404 Residential 12,493 7,513 4,980 628 14,863 13,832 Consumer 7,844 6,577 1,267 192 8,710 7,891 Total (2) $ 57,348 $ 28,006 $ 29,342 $ 3,956 $ 73,718 $ 60,672 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $4.8 million in the ending loan balance and $5.5 million in the contractual principal balance. December 31, 2017 (Dollars in thousands) Ending Loan Balances Loans with No Related (1) Loans with Related Reserve Related Reserve Contractual Principal Balances Average Loan Balances Commercial $ 20,842 $ 3,422 $ 17,420 $ 3,861 $ 23,815 $ 15,072 Owner-occupied commercial 5,374 3,654 1,720 12 5,717 5,827 Commercial mortgages 7,598 4,487 3,111 112 16,658 12,630 Construction 6,292 6,023 269 33 6,800 4,523 Residential 14,181 8,282 5,899 796 17,015 14,533 Consumer 7,819 6,304 1,515 203 8,977 8,158 Total (2) $ 62,106 $ 32,172 $ 29,934 $ 5,017 $ 78,982 $ 60,743 (1) Reflects loan balances at or written down to their remaining book balance. (2) The above includes acquired impaired loans totaling $5.8 million in the ending loan balance and $6.8 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 June 30, 2018 (Dollars in thousands) Commercial and Industrial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) Amount % Risk Rating: Special mention $ 20,847 $ 17,022 $ 6,419 $ — $ 44,288 Substandard: Accrual 28,530 18,741 4,532 1,092 52,895 Nonaccrual 14,025 3,224 6,304 4,044 27,597 Doubtful 2,208 — 63 593 2,864 Total Special Mention and Substandard 65,610 38,987 17,318 5,729 127,644 3 % Acquired impaired 2,904 4,915 9,151 731 17,701 1 % Pass 1,457,599 1,041,993 1,134,185 290,660 3,924,437 96 % Total $ 1,526,113 $ 1,085,895 $ 1,160,654 $ 297,120 $ 4,069,782 100 % (1) Table includes $406.1 million of acquired non-impaired loans as of June 30, 2018 . December 31, 2017 (Dollars in thousands) Commercial and Industrial Owner-occupied Commercial Commercial Mortgages Construction Total Commercial (1) Amount % Risk Rating: Special mention $ 22,789 $ 16,783 $ — $ — $ 39,572 Substandard: Accrual 34,332 19,386 1,967 4,965 60,650 Nonaccrual 15,370 3,654 5,852 1,804 26,680 Doubtful 3,687 — 18 — 3,705 Total Special Mention and Substandard 76,178 39,823 7,837 6,769 130,607 3 % Acquired impaired 4,156 5,803 9,724 940 20,623 1 % Pass 1,384,220 1,033,621 1,170,144 273,899 3,861,884 96 % Total $ 1,464,554 $ 1,079,247 $ 1,187,705 $ 281,608 $ 4,013,114 100 % (1) Table includes $457.3 million of acquired non-impaired loans as of December 31, 2017 . |
Schedule of Consumer Credit Exposure | Residential and Consumer Credit Exposure (Dollars in thousands) Residential (2) Consumer Total Residential and Consumer (3) June 30, December 31, June 30, December 31, June 30, 2018 December 31, 2017 2018 2017 2018 2017 Amount Percent Amount Percent Nonperforming (1) $ 12,282 $ 13,778 $ 7,714 $ 7,588 $ 19,996 2 % $ 21,366 3 % Acquired impaired loans 771 784 251 247 1,022 — % 1,031 — % Performing 200,046 218,925 610,775 550,658 810,821 98 % 769,583 97 % Total $ 213,099 $ 233,487 $ 618,740 $ 558,493 $ 831,839 100 % $ 791,980 100 % (1) Includes $14.2 million as of June 30, 2018 and $15.3 million as of December 31, 2017 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 $16.1 million and $19.8 million of reverse mortgages at fair value as of June 30, 2018 and December 31, 2017 , respectively. (3) Total includes $95.0 million and $108.2 million in acquired non-impaired loans as of June 30, 2018 and December 31, 2017 , respectively. |
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated | The following table presents the balance of TDRs as of the indicated dates: (Dollars in thousands) June 30, 2018 December 31, 2017 Performing TDRs $ 16,273 $ 20,061 Nonperforming TDRs 19,539 9,627 Total TDRs $ 35,812 $ 29,688 The following table presents loans identified as TDRs during the three and six months ended June 30, 2018 and 2017 . Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Pre Modification Post Modification Pre Modification Post Modification Pre Modification Post Modification Pre Modification Post Modification Commercial $ 4,782 $ 4,782 $ 338 $ 338 $ 4,782 $ 4,782 $ 781 $ 781 Owner-occupied commercial — — — — — — 3,071 3,071 Commercial mortgages 1,564 1,564 — — 2,022 2,022 — — Construction — — 124 124 920 920 1,836 1,836 Residential 469 469 — — 469 469 242 242 Consumer 861 861 674 674 1,123 1,123 1,258 1,258 Total $ 7,676 $ 7,676 $ 1,136 $ 1,136 $ 9,316 $ 9,316 $ 7,188 $ 7,188 The following table presents information regarding the types of loan modifications made for the six months ended June 30, 2018 and 2017: June 30, 2018 June 30, 2017 Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Contractual payment reduction and term extension Maturity Date Extension Discharged in bankruptcy Other (1) Total Commercial 3 — — — 3 1 1 — — 2 Owner-occupied commercial — — — — — — 1 — — 1 Commercial Mortgages 1 1 — — 2 — — — — — Construction — 1 — — 1 — 2 — 1 3 Residential 4 — — — 4 — — 1 — 1 Consumer 7 1 3 2 13 — — 7 4 11 Total 15 3 3 2 23 1 4 8 5 18 (1) Other includes underwriting exceptions. |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Deposits By Category | The following table shows our deposits by category: (Dollars in thousands) June 30, 2018 December 31, 2017 Noninterest-bearing: Noninterest demand (1) $ 1,434,549 $ 1,420,760 Total noninterest-bearing $ 1,434,549 $ 1,420,760 Interest-bearing: Interest-bearing demand $ 966,736 $ 1,071,512 Savings 565,074 549,744 Money market 1,377,682 1,347,146 Total core deposits (1) 2,909,492 2,968,402 Customer time deposits (1) 690,267 629,071 Brokered deposits 332,247 229,371 Total interest-bearing 3,932,006 3,826,844 Total deposits $ 5,366,555 $ 5,247,604 (1) Noninterest demand, total core deposits and customer time deposits represent the Company's total customer deposits. |
ASSOCIATE BENEFIT PLANS (Tables
ASSOCIATE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Postemployment Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost Components of Postretirement Benefits | The following table presents the components of net periodic benefit cost related to our postretirement medical benefits plan measured at January 1, 2018 and 2017. Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2018 2017 2018 2017 Service cost $ 15 $ 14 $ 30 $ 29 Interest cost 18 19 35 38 Prior service cost amortization (19 ) (19 ) (38 ) (38 ) Net gain recognition (12 ) (18 ) (23 ) (34 ) Net periodic benefit cost $ 2 $ (4 ) $ 4 $ (5 ) the Alliance Associate Pension Plan measured at January 1, 2018. Three months ended June 30, Six months ended June 30, (Dollars in thousands) 2018 2017 2018 2017 Service cost $ 10 $ 10 $ 20 $ 20 Interest cost 74 75 147 150 Expected return on plan assets (137 ) (135 ) (272 ) (270 ) Prior service cost amortization — — — — Net gain recognition — — — — Net periodic benefit cost $ (53 ) $ (50 ) $ (105 ) $ (100 ) |
FAIR VALUE DISCLOSURES OF FIN35
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Carried at Fair Value | The following tables present financial instruments carried at fair value as of June 30, 2018 and December 31, 2017 by level in the valuation hierarchy (as described above): June 30, 2018 (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 $ — $ 298,263 $ — $ 298,263 FNMA MBS — 538,240 — 538,240 FHLMC MBS — 93,738 — 93,738 GNMA MBS — 33,879 — 33,879 Other assets — 1,047 — 1,047 Total assets measured at fair value on a recurring basis $ — $ 965,167 $ — $ 965,167 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 4,616 $ — $ 4,616 Assets measured at fair value on a nonrecurring basis: Other investments (1) $ — $ — $ 33,589 $ 33,589 Other real estate owned — — 2,609 2,609 Loans held for sale — 31,672 — 31,672 Impaired loans, net — — 53,392 53,392 Total assets measured at fair value on a nonrecurring basis $ — $ 31,672 $ 89,590 $ 121,262 (1) See Note 1 for additional disclosures resulting from the Company's adoption of ASU 2016-01. December 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 $ — $ 246,539 $ — $ 246,539 FNMA MBS — 473,987 — 473,987 FHLMC MBS — 87,875 — 87,875 GNMA MBS — 29,098 — 29,098 Other investments 623 — — 623 Other assets — 747 — 747 Total assets measured at fair value on a recurring basis $ 623 $ 838,246 $ — $ 838,869 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 3,225 $ — $ 3,225 Assets measured at fair value on a nonrecurring basis Other real estate owned — — 2,503 2,503 Loans held for sale — 31,055 — 31,055 Impaired loans, net — — 57,089 57,089 Total assets measured at fair value on a nonrecurring basis $ — $ 31,055 $ 59,592 $ 90,647 |
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) June 30, 2018 December 31, 2017 Fair Value Measurement Book Value Fair Value Book Value Fair Value Financial assets: Cash and cash equivalents Level 1 $ 703,480 $ 703,480 $ 723,866 $ 723,866 Investment securities available for sale See previous table 964,120 964,120 837,499 837,499 Investment securities held to maturity Level 2 156,456 155,644 161,186 162,853 Other investments Level 1,3 33,589 33,589 14,671 45,326 Loans, held for sale Level 2 31,672 31,672 31,055 31,055 Loans, net (1)(2) Level 2,3 4,815,663 4,656,304 4,719,229 4,699,458 Impaired loans, net Level 3 53,392 53,392 57,089 57,089 Stock in FHLB of Pittsburgh Level 2 29,805 29,805 31,284 31,284 Accrued interest receivable Level 2 20,393 20,393 19,405 19,405 Other assets Level 3 1,047 1,047 2,883 2,883 Financial liabilities: Deposits Level 2 5,366,555 5,341,346 5,247,604 4,848,588 Borrowed funds Level 2 896,350 890,793 937,806 937,605 Standby letters of credit Level 3 381 381 603 603 Accrued interest payable Level 2 4,131 4,131 1,037 1,037 Other liabilities Level 2 4,616 4,616 3,188 3,188 (1) Excludes impaired loans, net. (2) Includes reverse mortgage loans, which are categorized as Level 3. |
DERIVATIVE FINANCIAL INSTRUME36
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 . Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Derivatives (Fair Value) Derivatives designated as hedging instruments: Interest rate products 3 $ 75,000 Other Liabilities $ (4,539 ) Total $ 75,000 $ (4,539 ) Derivatives not designated as hedging instruments: Interest rate lock commitment with customers 65,594 Other Assets $ 830 Interest rate lock commitment with customers 5,128 Other Liabilities (26 ) Forward sale commitments 34,944 Other Assets 216 Forward sale commitments 33,564 Other Liabilities (105 ) Total $ 139,230 $ 915 Total derivatives $ 214,230 $ (3,624 ) |
Summary of Company's Derivative Financial Instruments | The table below presents the effect of the derivative financial instruments on the Consolidated Statements of Income for the three and six months ended June 30, 2018 and June 30, 2017 . (Dollars in thousands) Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) 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 June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2018 2017 2018 2017 Interest Rate Products $ (246 ) $ 263 $ (1,010 ) $ 150 Interest income Total $ (246 ) $ 263 $ (1,010 ) $ 150 Amount of Gain or (Loss) Recognized in Income Amount of Gain or (Loss) Recognized in Income Location of Gain or (Loss) Recognized in Income (Dollars in thousands) Three months ended June 30, Six months ended June 30, Derivatives Not Designated as a Hedging Instrument 2018 2017 2018 2017 Interest Rate Lock Commitments $ 96 $ — $ (296 ) $ — Mortgage banking activities, net Forward Sale Commitments 60 $ — (332 ) $ — Mortgage banking activities, net Total $ 156 $ — $ (628 ) $ — |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Details of Segment Information | The following tables show segment results for the three and six months ended June 30, 2018 and 2017 : Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 (Dollars in thousands) WSFS Bank Cash ® Wealth Management Total WSFS Bank Cash ® Wealth Total Statements of Income External customer revenues: Interest income $ 69,599 $ — $ 2,552 $ 72,151 $ 60,234 $ — $ 2,100 $ 62,334 Noninterest income 12,045 12,328 10,614 34,987 12,049 10,514 9,113 31,676 Total external customer revenues 81,644 12,328 13,166 107,138 72,283 10,514 11,213 94,010 Inter-segment revenues: Interest income 3,565 — 2,670 6,235 2,247 — 2,435 4,682 Noninterest income 2,219 200 37 2,456 1,906 207 40 2,153 Total inter-segment revenues 5,784 200 2,707 8,691 4,153 207 2,475 6,835 Total revenue 87,428 12,528 15,873 115,829 76,436 10,721 13,688 100,845 External customer expenses: Interest expense 10,599 — 563 11,162 7,739 — 281 8,020 Noninterest expenses 42,505 7,905 7,421 57,831 38,782 6,591 7,354 52,727 Provision for loan losses 2,284 — 214 2,498 1,316 — 527 1,843 Total external customer expenses 55,388 7,905 8,198 71,491 47,837 6,591 8,162 62,590 Inter-segment expenses: Interest expense 2,670 2,516 1,049 6,235 2,435 1,582 665 4,682 Noninterest expenses 237 637 1,582 2,456 247 673 1,233 2,153 Total inter-segment expenses 2,907 3,153 2,631 8,691 2,682 2,255 1,898 6,835 Total expenses 58,295 11,058 10,829 80,182 50,519 8,846 10,060 69,425 Income before taxes $ 29,133 $ 1,470 $ 5,044 $ 35,647 $ 25,917 $ 1,875 $ 3,628 $ 31,420 Income tax provision 6,907 10,850 Consolidated net income $ 28,740 $ 20,570 Six Months Ended June 30, 2018 Six Months Ended June 30, 2017 (Dollars in thousands) WSFS Bank Cash Wealth Total WSFS Bank Cash Wealth Total Statements of Income External customer revenues: Interest income $ 134,889 $ — $ 4,875 $ 139,764 $ 118,922 $ — $ 4,238 $ 123,160 Noninterest income 38,651 23,681 20,122 82,454 22,216 20,191 17,361 59,768 Total external customer revenues 173,540 23,681 24,997 222,218 141,138 20,191 21,599 182,928 Inter-segment revenues: Interest income 6,533 — 5,033 11,566 4,243 — 4,500 8,743 Noninterest income 4,327 381 71 4,779 4,070 398 76 4,544 Total inter-segment revenues 10,860 381 5,104 16,345 8,313 398 4,576 13,287 Total revenue 184,400 24,062 30,101 238,563 149,451 20,589 26,175 196,215 External customer expenses: Interest expense 20,102 — 959 21,061 15,202 — 541 15,743 Noninterest expenses 81,940 15,224 14,079 111,243 77,742 12,726 13,765 104,233 Provision for loan losses 5,945 — 203 6,148 3,032 — 973 4,005 Total external customer expenses 107,987 15,224 15,241 138,452 95,976 12,726 15,279 123,981 Inter-segment expenses: Interest expense 5,033 4,575 1,958 11,566 4,500 2,987 1,256 8,743 Noninterest expenses 452 1,309 3,018 4,779 474 1,388 2,682 4,544 Total inter-segment expenses 5,485 5,884 4,976 16,345 4,974 4,375 3,938 13,287 Total expenses 113,472 21,108 20,217 154,797 100,950 17,101 19,217 137,268 Income before taxes $ 70,928 $ 2,954 $ 9,884 $ 83,766 $ 48,501 $ 3,488 $ 6,958 $ 58,947 Income tax provision 17,676 19,440 Consolidated net income $ 66,090 $ 39,507 The following table shows significant components of segment net assets as of June 30, 2018 and December 31, 2017 : June 30, 2018 December 31, 2017 (Dollars in thousands) WSFS Bank Cash ® Wealth Total WSFS Bank Cash ® Wealth Management Total Statements of Financial Condition Cash and cash equivalents $ 87,285 $ 603,685 $ 12,510 $ 703,480 $ 104,530 $ 611,385 $ 7,951 $ 723,866 Goodwill 145,808 — 20,199 166,007 145,808 — 20,199 166,007 Other segment assets 6,007,041 6,819 229,200 6,243,060 5,882,910 6,078 220,679 6,109,667 Total segment assets $ 6,240,134 $ 610,504 $ 261,909 $ 7,112,547 $ 6,133,248 $ 617,463 $ 248,829 $ 6,999,540 Capital expenditures $ 3,409 $ 127 $ 254 $ 3,790 $ 8,197 $ 184 $ 613 $ 8,994 |
CHANGE IN ACCUMULATED OTHER C38
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive (Loss) Income | Changes to accumulated other comprehensive loss 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 investment securities held to maturity Net change in defined benefit plan Net change in fair value of derivatives used for cash flow hedges Total Balance, March 31, 2018 $ (19,685 ) $ 1,104 $ 924 $ (3,163 ) $ (20,820 ) Other comprehensive (loss) income before reclassifications (4,501 ) — 8 (245 ) (4,738 ) Less: Amounts reclassified from accumulated other comprehensive (loss) income — (117 ) (38 ) — (155 ) Net current-period other comprehensive loss (4,501 ) (117 ) (30 ) (245 ) (4,893 ) Balance, June 30, 2018 $ (24,186 ) $ 987 $ 894 $ (3,408 ) $ (25,713 ) Balance, March 31, 2017 $ (7,128 ) $ 1,291 $ 934 $ (1,884 ) $ (6,787 ) Other comprehensive income before reclassifications 3,241 — — 262 3,503 Less: Amounts reclassified from accumulated other comprehensive income (455 ) (97 ) (22 ) — (574 ) Net current-period other comprehensive (loss) income 2,786 (97 ) (22 ) 262 2,929 Balance, June 30, 2017 $ (4,342 ) $ 1,194 $ 912 $ (1,622 ) $ (3,858 ) Balance, December 31, 2017 $ (7,842 ) $ 1,223 $ 865 $ (2,398 ) $ (8,152 ) Other comprehensive (loss) income before reclassifications (16,328 ) — 8 (1,010 ) (17,330 ) Less: Amounts reclassified from accumulated other comprehensive (loss) income (16 ) (236 ) 21 — (231 ) Net current-period other comprehensive (loss) income (16,344 ) (236 ) 29 (1,010 ) (17,561 ) Balance, June 30, 2018 $ (24,186 ) $ 987 $ 894 $ (3,408 ) $ (25,713 ) Balance, December 31, 2016 $ (8,194 ) $ 1,392 $ 957 $ (1,772 ) $ (7,617 ) Other comprehensive income before reclassifications 4,513 — — 150 4,663 Less: Amounts reclassified from accumulated other comprehensive income (661 ) (198 ) (45 ) — (904 ) Net current-period other comprehensive income (loss) 3,852 (198 ) (45 ) 150 3,759 Balance, June 30, 2017 $ (4,342 ) $ 1,194 $ 912 $ (1,622 ) $ (3,858 ) |
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: (Dollars in thousands) Three Months Ended June 30, Affected line item in Consolidated Statements of Income 2018 2017 Securities available for sale: Realized gains on securities transactions $ — $ (708 ) Security gains, net Income taxes — 253 Income tax provision Net of tax $ — $ (455 ) 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 $ (153 ) $ (159 ) Interest income on investment securities Income taxes 36 62 Income tax provision Net of tax $ (117 ) $ (97 ) Amortization of Defined Benefit Pension items: Prior service costs (credits) (1) $ (19 ) $ (19 ) Transition obligation — — Actuarial gains (12 ) (18 ) Total before tax $ (31 ) $ (37 ) Salaries, benefits and other compensation Income taxes (7 ) 15 Income tax provision Net of tax (38 ) (22 ) Total reclassifications $ (155 ) $ (574 ) Six Months Ended Affected line item in Consolidated Statements of Operations June 30, 2018 2017 Securities available-for-sale: Realized gains on securities transactions $ (21 ) $ (1,028 ) Security gains, net Income taxes 5 367 Income tax provision Net of tax $ (16 ) $ (661 ) 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 $ (309 ) $ (319 ) Interest income on investment securities Income taxes 73 121 Income tax provision Net of tax $ (236 ) $ (198 ) Amortization of Defined Benefit Pension items: Prior service costs (credits) (1) $ 40 $ (38 ) Transition obligation — — Actuarial gains (23 ) (34 ) Total before tax $ 17 $ (72 ) Salaries, benefits and other compensation Income taxes 4 27 Income tax provision Net of tax $ 21 $ (45 ) Total reclassifications $ (231 ) $ (904 ) (1) Prior service costs balance for the six months ended June 30, 2018 includes a tax true-up adjustment of $0.1 million from March 31, 2018. Note that the tax true-up was made to the deferred tax asset with an offset to AOCI and does not affect the actual net periodic benefit costs of the pension plan. |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 6 Months Ended |
Jun. 30, 2018SubsidiaryOffice | |
Basis Of Presentation [Line Items] | |
Number of unconsolidated affiliate | 1 |
Number of banking offices | 77 |
Delaware | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 46 |
Pennsylvania | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 29 |
Virginia | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 1 |
Nevada | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 1 |
WSFS Financial Corporation | |
Basis Of Presentation [Line Items] | |
Number of wholly-owned subsidiaries | Subsidiary | 3 |
NONINTEREST INCOME - Credit_deb
NONINTEREST INCOME - Credit/debit card and ATM Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Bailment fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 6,588 | $ 5,160 | $ 12,681 | $ 9,863 |
Interchange fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 3,847 | 3,498 | 7,307 | 6,696 |
Other card and ATM fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 274 | 267 | 526 | 497 |
Credit/debit card and ATM income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 10,709 | $ 8,925 | $ 20,514 | $ 17,056 |
NONINTEREST INCOME - Investment
NONINTEREST INCOME - Investment Management and Fiduciary Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Trust fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 6,118 | $ 4,977 | $ 11,366 | $ 9,273 |
Wealth management and advisory fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 4,126 | 3,858 | 8,067 | 7,601 |
Investment management and fiduciary income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 10,244 | $ 8,835 | $ 19,433 | $ 16,874 |
NONINTEREST INCOME - Deposit se
NONINTEREST INCOME - Deposit service charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Service fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | $ 2,634 | $ 2,527 | $ 5,214 | $ 4,923 |
Return and overdraft fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | 1,893 | 1,842 | 3,777 | 3,687 |
Other deposit service fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | 137 | 191 | 303 | 347 |
Deposit service charges | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | $ 4,664 | $ 4,560 | $ 9,294 | $ 8,957 |
NONINTEREST INCOME - Other inco
NONINTEREST INCOME - Other income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Managed service fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 3,105 | $ 2,671 | $ 5,931 | $ 5,290 |
Currency preparation | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 818 | 737 | 1,543 | 1,420 |
ATM insurance | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 605 | 719 | 1,195 | 1,416 |
Miscellaneous products and services | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | 2,583 | 1,924 | 4,350 | 3,120 |
Other income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest fee income | $ 7,111 | $ 6,051 | $ 13,019 | $ 11,246 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net Income | $ 28,740 | $ 20,570 | $ 66,090 | $ 39,507 |
Denominator: | ||||
Weighted average basic shares (in shares) | 31,567,000 | 31,443,000 | 31,497,000 | 31,425,000 |
Dilutive potential common shares (in shares) | 697,000 | 869,000 | 729,000 | 899,000 |
Weighted average fully diluted shares (in shares) | 32,264,000 | 32,312,000 | 32,226,000 | 32,324,000 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.91 | $ 0.65 | $ 2.10 | $ 1.26 |
Diluted (in dollars per share) | $ 0.89 | $ 0.64 | $ 2.05 | $ 1.22 |
Outstanding common stock equivalents having no dilutive effect (in shares) | 11,000 | 0 | 23,000 | 10,000 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018USD ($)secuirty | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Gain (Loss) on Securities [Line Items] | |||
Trading securities | $ 0 | ||
Securities pledged as collateral | 745,400,000 | $ 688,200,000 | |
Sale of investment securities available for sale | 7,012,000 | $ 351,614,000 | |
Debt securities, available-for-sale, realized gain (less than) | 100,000 | 1,100,000 | |
Losses from sale of available-for-sale securities (less than during the current quarter end) | 0 | $ 100,000 | |
Unamortized premiums | 13,600,000 | 14,100,000 | |
Unaccreted discounts | 1,300,000 | 1,300,000 | |
Owned investment securities | 1,020,000,000 | ||
Total unrealized losses on securities | $ 33,000,000 | ||
Number of securities, below investment grade | secuirty | 1 | ||
Available-for-sale securities, below investment grade, fair value | $ 800,000 | ||
Weighted average duration of MBS portfolio | 5 years 4 months 17 days | ||
Collateralized Mortgage Backed Securities | |||
Gain (Loss) on Securities [Line Items] | |||
OTTI on evaluation of securities | $ 0 | $ 0 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Amortized Cost and Estimated Fair Value of Available-for-Sale and Held-to-Maturity Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale Debt Securities | ||
Amortized Cost | $ 995,943 | $ 847,791 |
Gross Unrealized Gain | 166 | 1,356 |
Gross Unrealized Loss | 31,989 | 11,648 |
Fair Value | 964,120 | 837,499 |
Held-to-Maturity Debt Securities | ||
Amortized Cost | 156,456 | 161,186 |
Fair Value | 155,644 | 162,853 |
Equity Investments | ||
Amortized Cost | 18,243 | 643 |
Gross Unrealized Gain | 15,346 | 0 |
Gross Unrealized Loss | 0 | 20 |
Fair Value | 33,589 | 623 |
CMO | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 307,500 | 250,592 |
Gross Unrealized Gain | 61 | 88 |
Gross Unrealized Loss | 9,298 | 4,141 |
Fair Value | 298,263 | 246,539 |
FNMA MBS | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 556,567 | 479,218 |
Gross Unrealized Gain | 9 | 941 |
Gross Unrealized Loss | 18,336 | 6,172 |
Fair Value | 538,240 | 473,987 |
FHLMC MBS | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 97,033 | 88,681 |
Gross Unrealized Gain | 2 | 118 |
Gross Unrealized Loss | 3,297 | 924 |
Fair Value | 93,738 | 87,875 |
GNMA MBS | ||
Available-for-Sale Debt Securities | ||
Amortized Cost | 34,843 | 29,300 |
Gross Unrealized Gain | 94 | 209 |
Gross Unrealized Loss | 1,058 | 411 |
Fair Value | 33,879 | 29,098 |
Other equity investments | ||
Equity Investments | ||
Amortized Cost | 3,300 | 643 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 20 |
Fair Value | 3,300 | 623 |
State and political subdivisions | ||
Held-to-Maturity Debt Securities | ||
Amortized Cost | 156,456 | 161,186 |
Gross Unrealized Gain | 231 | 1,758 |
Gross Unrealized Loss | 1,043 | 91 |
Fair Value | 155,644 | 162,853 |
Equity Investments | ||
Available for sale securities transfers to held to maturity unrealized gains | 1,300 | $ 1,600 |
Visa | Visa Class B shares | Common Stock | ||
Equity Investments | ||
Amortized Cost | 14,943 | |
Gross Unrealized Gain | 15,346 | |
Gross Unrealized Loss | 0 | |
Fair Value | $ 30,289 |
INVESTMENT SECURITIES - Sched47
INVESTMENT SECURITIES - Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities, amortized cost within one year | $ 0 | $ 0 |
Available-for-sale securities, amortized cost after one year but within five years | 19,868 | 20,051 |
Available-for-sale securities, amortized cost after five years but within ten years | 174,662 | 179,812 |
Available-for-sale securities, amortized cost after ten years | 801,413 | 647,928 |
Amortized Cost | 995,943 | 847,791 |
Available-for-sale securities, fair value within one year | 0 | 0 |
Available-for-sale securities, fair value after one year but within five years | 19,332 | 19,825 |
Available-for-sale securities, fair value after five years but within ten years | 165,177 | 175,583 |
Available-for-sale securities, fair value after ten years | 779,611 | 642,091 |
Available-for-sale securities, fair value total | 964,120 | 837,499 |
Held-to-maturity securities, amortized cost within one year | 155 | 322 |
Held-to-maturity securities, amortized cost after one year but within five years | 6,837 | 5,895 |
Held-to-maturity securities, amortized cost after five years but within ten years | 25,322 | 18,751 |
Held-to-maturity securities, amortized cost after ten years | 124,142 | 136,218 |
Amortized Cost | 156,456 | 161,186 |
Held-to-maturity securities, fair value within one year | 155 | 320 |
Held-to-maturity securities, fair value after one year but within five years | 6,824 | 5,894 |
Held-to-maturity securities, after five years but within ten years | 25,213 | 18,873 |
Held-to-maturity securities, after ten years | 123,452 | 137,766 |
Held-to-maturity securities, fair value total | $ 155,644 | $ 162,853 |
INVESTMENT SECURITIES - Sched48
INVESTMENT SECURITIES - Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | $ 684,313 | $ 398,776 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 17,848 | 3,624 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 231,577 | 239,678 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 14,141 | 8,024 |
Available-for-sale debt securities, Total, Fair Value | 915,890 | 638,454 |
Available-for-sale debt securities, Total, Unrealized Loss | 31,989 | 11,648 |
Held-to-maturity debt securities: | ||
Held-to-maturity, Less than 12 months, Fair Value | 103,069 | 23,404 |
Held-to-maturity, Less than 12 months, Unrealized Loss | 897 | 59 |
Held-to-maturity, 12 months or longer, Fair Value | 5,723 | 5,625 |
Held-to-maturity, 12 months or longer, Unrealized Loss | 146 | 32 |
Held-to-maturity, Total, Fair Value | 108,792 | 29,029 |
Held-to-maturity, Total, Unrealized Loss | 1,043 | 91 |
CMO | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | 199,985 | 146,726 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 5,031 | 1,820 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 83,359 | 77,149 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 4,267 | 2,321 |
Available-for-sale debt securities, Total, Fair Value | 283,344 | 223,875 |
Available-for-sale debt securities, Total, Unrealized Loss | 9,298 | 4,141 |
FNMA MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | 397,186 | 204,921 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 10,438 | 1,479 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 114,832 | 126,342 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 7,898 | 4,693 |
Available-for-sale debt securities, Total, Fair Value | 512,018 | 331,263 |
Available-for-sale debt securities, Total, Unrealized Loss | 18,336 | 6,172 |
FHLMC MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | 74,017 | 42,514 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 2,030 | 269 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 19,649 | 21,405 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 1,267 | 655 |
Available-for-sale debt securities, Total, Fair Value | 93,666 | 63,919 |
Available-for-sale debt securities, Total, Unrealized Loss | 3,297 | 924 |
GNMA MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair Value | 13,125 | 4,615 |
Available-for-sale debt securities, Less than 12 months, Unrealized Loss | 349 | 56 |
Available-for-sale debt securities, 12 months or longer, Fair Value | 13,737 | 14,782 |
Available-for-sale debt securities, 12 months or longer, Unrealized Loss | 709 | 355 |
Available-for-sale debt securities, Total, Fair Value | 26,862 | 19,397 |
Available-for-sale debt securities, Total, Unrealized Loss | 1,058 | 411 |
Other equity investments | ||
Other equity investments | ||
Other investments, Less than 12 months, Fair Value | 0 | |
Other investments, Less than 12 months, Unrealized Loss | 0 | |
Other investments, 12 months or longer, Fair Value | 624 | |
Other investments, 12 months or longer, Unrealized Loss | 20 | |
Other investments, Total, Fair Value | 624 | |
Other investments, Total, Unrealized Loss | 20 | |
State and political subdivisions | ||
Held-to-maturity debt securities: | ||
Held-to-maturity, Less than 12 months, Fair Value | 103,069 | 23,404 |
Held-to-maturity, Less than 12 months, Unrealized Loss | 897 | 59 |
Held-to-maturity, 12 months or longer, Fair Value | 5,723 | 5,625 |
Held-to-maturity, 12 months or longer, Unrealized Loss | 146 | 32 |
Held-to-maturity, Total, Fair Value | 108,792 | 29,029 |
Held-to-maturity, Total, Unrealized Loss | $ 1,043 | $ 91 |
LOANS - Summary of Loan Portfol
LOANS - Summary of Loan Portfolio by Category (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 4,901,621 | $ 4,805,094 | $ 4,605,771 | |||
Deferred fees, net | 7,645 | 7,991 | ||||
Allowance for loan losses | 41,037 | $ 40,810 | 40,599 | 40,005 | $ 39,826 | $ 39,751 |
Net loans | 4,869,055 | 4,776,318 | ||||
Reverse mortgage, fair value | 16,100 | 19,800 | 21,600 | |||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 618,740 | 558,493 | 492,817 | |||
Allowance for loan losses | 8,152 | 8,188 | 7,895 | 7,148 | 6,241 | 6,012 |
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,526,113 | 1,464,554 | ||||
Owner-occupied commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,085,895 | 1,079,247 | 1,109,876 | |||
Allowance for loan losses | 5,284 | 5,359 | 5,422 | 5,816 | 6,030 | 6,588 |
Commercial mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,160,654 | 1,187,705 | 1,147,006 | |||
Allowance for loan losses | 6,951 | 6,617 | 5,891 | 7,335 | 8,335 | 8,915 |
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 297,120 | 281,608 | 279,806 | |||
Allowance for loan losses | 3,289 | $ 2,864 | 2,861 | $ 3,432 | $ 2,961 | $ 2,838 |
Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 229,215 | 253,301 | ||||
Financing Receivable Portfolio Segment, Including Reverse Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 4,917,737 | $ 4,824,908 |
LOANS - Schedule of Outstanding
LOANS - Schedule of Outstanding Principal Balance and Carrying Amounts for Acquired Credit-Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Outstanding principal balance | $ 23,163 | $ 27,034 |
Carrying amount | 18,397 | 21,295 |
Allowance for loan losses | $ 326 | $ 358 |
LOANS - Summary of Changes in A
LOANS - Summary of Changes in Accretable Yield on Acquired Credit Impaired Loans (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | $ 3,035 |
Accretion | (918) |
Reclassification from nonaccretable difference | 1,078 |
Additions/adjustments | (270) |
Disposals | 0 |
Balance at the end of the period | $ 2,925 |
ALLOWANCE FOR LOAN LOSSES AND52
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)SecurityLoanloan | Jun. 30, 2017USD ($)loan | Dec. 31, 2017USD ($)SecurityLoan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net charge-offs | $ 5,700,000 | $ 3,800,000 | |||
Percentage of average loans annualized, charged-offs | 0.24% | 0.17% | |||
Reverse mortgage, fair value | $ 16,100,000 | $ 21,600,000 | $ 16,100,000 | $ 21,600,000 | $ 19,800,000 |
Performing TDRs | 16,273,000 | 18,100,000 | 20,061,000 | ||
Acquired nonimpaired loans | 501,057,000 | 629,797,000 | 501,057,000 | 629,797,000 | 565,500,000 |
Acquired impaired loans | 4,800,000 | 4,800,000 | 5,800,000 | ||
Contractual principal balance | 5,500,000 | 5,500,000 | 6,800,000 | ||
Interest income on impaired loans | 400,000 | 400,000 | 700,000 | $ 700,000 | |
Accrued troubled debt restructured loans | 14,200,000 | 14,200,000 | 15,300,000 | ||
Troubled debt restructuring related reserves | 2,600,000 | $ 2,600,000 | $ 1,000,000 | ||
Usual sustained repayment performance period | 6 months | ||||
TRD defaulted | loan | 2 | 2 | |||
Subsequent default, loan amount | $ 100,000 | $ 600,000 | |||
Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Acquired nonimpaired loans | 65,723,000 | 80,074,000 | $ 65,723,000 | 80,074,000 | |
Number of residential loans in the process of foreclosure | SecurityLoan | 27 | 33 | |||
Total loans outstanding, residential loans | $ 2,500,000 | $ 2,900,000 | |||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Acquired nonimpaired loans | 101,532,000 | $ 130,986,000 | $ 101,532,000 | 130,986,000 | |
Number of residential loans in the process of foreclosure | SecurityLoan | 10 | 8 | |||
Total loans outstanding, residential loans | $ 5,800,000 | $ 6,000,000 | |||
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 (decrease) in allowance for loan losses (less than) | $ (700,000) | 300,000 | |||
Troubled debt restructurings charged off (less than) | 100,000 | $ 0 | |||
Total Residential and Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Acquired nonimpaired loans | 95,000,000 | $ 95,000,000 | 108,200,000 | ||
Impairment loans, charge off period | 90 days | ||||
Total Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Acquired nonimpaired loans | $ 406,100,000 | $ 406,100,000 | $ 457,300,000 |
ALLOWANCE FOR LOAN LOSSES AND53
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Allowance for Loan Losses and Loan Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Allowance for loan losses | |||||
Beginning balance | $ 40,810 | $ 39,826 | $ 40,599 | $ 39,751 | $ 39,751 |
Charge-offs | (2,963) | (2,378) | (6,844) | (5,097) | |
Recoveries | 692 | 714 | 1,134 | 1,346 | |
Provision (credit) | 2,451 | 1,343 | 6,106 | 3,457 | |
Provision for acquired loans | 47 | 500 | 42 | 548 | |
Ending balance | 41,037 | 40,005 | 41,037 | 40,005 | 40,599 |
Loans individually evaluated for impairment | 3,631 | 4,642 | 3,631 | 4,642 | |
Loans collectively evaluated for impairment | 37,080 | 34,775 | 37,080 | 34,775 | |
Acquired loans evaluated for impairment | 326 | 588 | |||
Ending balance | 41,037 | 40,005 | 41,037 | 40,005 | |
Loans individually evaluated for impairment | 52,529 | 56,445 | 52,529 | 56,445 | |
Loans collectively evaluated for impairment | 4,329,312 | 3,888,382 | 4,329,312 | 3,888,382 | |
Acquired nonimpaired loans | 501,057 | 629,797 | 501,057 | 629,797 | 565,500 |
Acquired impaired loans | 18,723 | 31,147 | 21,654 | ||
Ending balance | 4,901,621 | 4,605,771 | 4,901,621 | 4,605,771 | 4,805,094 |
Owner-occupied commercial | |||||
Allowance for loan losses | |||||
Beginning balance | 5,359 | 6,030 | 5,422 | 6,588 | 6,588 |
Charge-offs | (341) | 0 | (351) | (192) | |
Recoveries | 7 | 33 | 12 | 108 | |
Provision (credit) | 204 | (265) | 146 | (706) | |
Provision for acquired loans | 55 | 18 | 55 | 18 | |
Ending balance | 5,284 | 5,816 | 5,284 | 5,816 | 5,422 |
Loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Loans collectively evaluated for impairment | 5,266 | 5,783 | 5,266 | 5,783 | |
Acquired loans evaluated for impairment | 18 | 33 | |||
Ending balance | 5,284 | 5,816 | 5,284 | 5,816 | |
Loans individually evaluated for impairment | 3,224 | 3,432 | 3,224 | 3,432 | |
Loans collectively evaluated for impairment | 952,627 | 945,919 | 952,627 | 945,919 | |
Acquired nonimpaired loans | 125,129 | 148,686 | 125,129 | 148,686 | |
Acquired impaired loans | 4,915 | 11,839 | 5,803 | ||
Ending balance | 1,085,895 | 1,109,876 | 1,085,895 | 1,109,876 | 1,079,247 |
Commercial mortgages | |||||
Allowance for loan losses | |||||
Beginning balance | 6,617 | 8,335 | 5,891 | 8,915 | 8,915 |
Charge-offs | 0 | (402) | (48) | (506) | |
Recoveries | 3 | 7 | 137 | 53 | |
Provision (credit) | 337 | (853) | 954 | (1,371) | |
Provision for acquired loans | (6) | 248 | 17 | 244 | |
Ending balance | 6,951 | 7,335 | 6,951 | 7,335 | 5,891 |
Loans individually evaluated for impairment | 63 | 1,464 | 63 | 1,464 | |
Loans collectively evaluated for impairment | 6,804 | 5,714 | 6,804 | 5,714 | |
Acquired loans evaluated for impairment | 84 | 157 | |||
Ending balance | 6,951 | 7,335 | 6,951 | 7,335 | |
Loans individually evaluated for impairment | 6,737 | 10,941 | 6,737 | 10,941 | |
Loans collectively evaluated for impairment | 972,684 | 921,069 | 972,684 | 921,069 | |
Acquired nonimpaired loans | 172,082 | 204,809 | 172,082 | 204,809 | |
Acquired impaired loans | 9,151 | 10,187 | 9,724 | ||
Ending balance | 1,160,654 | 1,147,006 | 1,160,654 | 1,147,006 | 1,187,705 |
Construction | |||||
Allowance for loan losses | |||||
Beginning balance | 2,864 | 2,961 | 2,861 | 2,838 | 2,838 |
Charge-offs | 0 | (117) | 0 | (131) | |
Recoveries | 1 | 2 | 1 | 4 | |
Provision (credit) | 422 | 471 | 450 | 629 | |
Provision for acquired loans | 2 | 115 | (23) | 92 | |
Ending balance | 3,289 | 3,432 | 3,289 | 3,432 | 2,861 |
Loans individually evaluated for impairment | 593 | 772 | 593 | 772 | |
Loans collectively evaluated for impairment | 2,687 | 2,595 | 2,687 | 2,595 | |
Acquired loans evaluated for impairment | 9 | 65 | |||
Ending balance | 3,289 | 3,432 | 3,289 | 3,432 | |
Loans individually evaluated for impairment | 5,557 | 4,808 | 5,557 | 4,808 | |
Loans collectively evaluated for impairment | 283,480 | 252,637 | 283,480 | 252,637 | |
Acquired nonimpaired loans | 7,352 | 20,340 | 7,352 | 20,340 | |
Acquired impaired loans | 731 | 2,021 | 940 | ||
Ending balance | 297,120 | 279,806 | 297,120 | 279,806 | 281,608 |
Commercial | |||||
Allowance for loan losses | |||||
Beginning balance | 16,102 | 14,205 | 16,732 | 13,339 | 13,339 |
Charge-offs | (1,740) | (929) | (5,100) | (2,184) | |
Recoveries | 359 | 319 | 439 | 403 | |
Provision (credit) | 1,133 | 520 | 3,783 | 2,469 | |
Provision for acquired loans | (12) | 109 | (12) | 197 | |
Ending balance | 15,842 | 14,224 | 15,842 | 14,224 | 16,732 |
Loans individually evaluated for impairment | 2,208 | 1,342 | 2,208 | 1,342 | |
Loans collectively evaluated for impairment | 13,472 | 12,587 | 13,472 | 12,587 | |
Acquired loans evaluated for impairment | 162 | 295 | |||
Ending balance | 15,842 | 14,224 | 15,842 | 14,224 | |
Loans individually evaluated for impairment | 17,015 | 14,845 | 17,015 | 14,845 | |
Loans collectively evaluated for impairment | 1,404,662 | 1,171,831 | 1,404,662 | 1,171,831 | |
Acquired nonimpaired loans | 101,532 | 130,986 | 101,532 | 130,986 | |
Acquired impaired loans | 2,904 | 6,002 | 4,156 | ||
Ending balance | 1,526,113 | 1,323,664 | 1,526,113 | 1,323,664 | 1,464,554 |
Residential | |||||
Allowance for loan losses | |||||
Beginning balance | 1,680 | 2,054 | 1,798 | 2,059 | 2,059 |
Charge-offs | (54) | (42) | (54) | (53) | |
Recoveries | 75 | 10 | 91 | 130 | |
Provision (credit) | (182) | 17 | (313) | (97) | |
Provision for acquired loans | 0 | 11 | (3) | 11 | |
Ending balance | 1,519 | 2,050 | 1,519 | 2,050 | 1,798 |
Loans individually evaluated for impairment | 592 | 869 | 592 | 869 | |
Loans collectively evaluated for impairment | 891 | 1,147 | 891 | 1,147 | |
Acquired loans evaluated for impairment | 36 | 34 | |||
Ending balance | 1,519 | 2,050 | 1,519 | 2,050 | |
Loans individually evaluated for impairment | 12,282 | 14,023 | 12,282 | 14,023 | |
Loans collectively evaluated for impairment | 134,323 | 157,653 | 134,323 | 157,653 | |
Acquired nonimpaired loans | 65,723 | 80,074 | 65,723 | 80,074 | |
Acquired impaired loans | 771 | 852 | 784 | ||
Ending balance | 213,099 | 252,602 | 213,099 | 252,602 | 233,487 |
Consumer | |||||
Allowance for loan losses | |||||
Beginning balance | 8,188 | 6,241 | 7,895 | 6,012 | 6,012 |
Charge-offs | (828) | (888) | (1,291) | (2,031) | |
Recoveries | 247 | 343 | 454 | 648 | |
Provision (credit) | 537 | 1,453 | 1,086 | 2,533 | |
Provision for acquired loans | 8 | (1) | 8 | (14) | |
Ending balance | 8,152 | 7,148 | 8,152 | 7,148 | 7,895 |
Loans individually evaluated for impairment | 175 | 195 | 175 | 195 | |
Loans collectively evaluated for impairment | 7,960 | 6,949 | 7,960 | 6,949 | |
Acquired loans evaluated for impairment | 17 | 4 | |||
Ending balance | 8,152 | 7,148 | 8,152 | 7,148 | |
Loans individually evaluated for impairment | 7,714 | 8,396 | 7,714 | 8,396 | |
Loans collectively evaluated for impairment | 581,536 | 439,273 | 581,536 | 439,273 | |
Acquired nonimpaired loans | 29,239 | 44,902 | 29,239 | 44,902 | |
Acquired impaired loans | 251 | 246 | 247 | ||
Ending balance | $ 618,740 | $ 492,817 | $ 618,740 | $ 492,817 | $ 558,493 |
ALLOWANCE FOR LOAN LOSSES AND54
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Summary of Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | $ 8,357 | $ 8,592 | |
Accruing Current Balances | 4,838,284 | 4,738,412 | |
Acquired Impaired Loans | 18,723 | $ 31,147 | 21,654 |
Nonaccrual Loans | 36,257 | 36,436 | |
Total Loans | $ 4,901,621 | 4,605,771 | $ 4,805,094 |
30-59 Days Past Due and Still Accruing, % of Total Loans | 0.11% | 0.14% | |
60-89 Days Past Due and Still Accruing, % of Total Loans | 0.05% | 0.03% | |
Greater Than 90 Days Past Due and Still Accruing, % of Total Loans | 0.01% | 0.01% | |
Total Past Due And Still Accruing, % of Total Loans | 0.17% | 0.18% | |
Accruing Current Balances, % of Total Loans | 98.71% | 98.61% | |
Acquired Impaired Loans, % of Total Loans | 0.38% | 0.45% | |
Nonaccrual Loans, % of Total Loans | 0.74% | 0.76% | |
% of Total Loans | 100.00% | 100.00% | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | $ 1,480 | $ 1,050 | |
Accruing Current Balances | 1,505,496 | 1,440,291 | |
Acquired Impaired Loans | 2,904 | 6,002 | 4,156 |
Nonaccrual Loans | 16,233 | 19,057 | |
Total Loans | 1,526,113 | 1,323,664 | 1,464,554 |
Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 1,863 | 3,145 | |
Accruing Current Balances | 206,667 | 225,434 | |
Acquired Impaired Loans | 771 | 852 | 784 |
Nonaccrual Loans | 3,798 | 4,124 | |
Total Loans | 213,099 | 252,602 | 233,487 |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 1,373 | 1,685 | |
Accruing Current Balances | 615,119 | 554,634 | |
Acquired Impaired Loans | 251 | 246 | 247 |
Nonaccrual Loans | 1,997 | 1,927 | |
Total Loans | 618,740 | 492,817 | 558,493 |
30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 5,438 | 6,614 | |
30–59 Days Past Due and Still Accruing | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 1,437 | 1,050 | |
30–59 Days Past Due and Still Accruing | Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 1,646 | 2,058 | |
30–59 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 456 | 1,117 | |
60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 2,420 | 1,517 | |
60–89 Days Past Due and Still Accruing | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 43 | 0 | |
60–89 Days Past Due and Still Accruing | Residential | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 217 | 731 | |
60–89 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 697 | 463 | |
Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 499 | 461 | |
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 | 0 | 356 | |
Greater Than 90 Days Past Due and Still Accruing | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 220 | 105 | |
Owner-occupied commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 2,891 | 2,302 | |
Accruing Current Balances | 1,074,865 | 1,067,488 | |
Acquired Impaired Loans | 4,915 | 11,839 | 5,803 |
Nonaccrual Loans | 3,224 | 3,654 | |
Total Loans | 1,085,895 | 1,109,876 | 1,079,247 |
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 | 1,525 | 2,069 | |
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 | 1,366 | 233 | |
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 | 750 | 410 | |
Accruing Current Balances | 1,144,385 | 1,171,701 | |
Acquired Impaired Loans | 9,151 | 10,187 | 9,724 |
Nonaccrual Loans | 6,368 | 5,870 | |
Total Loans | 1,160,654 | 1,147,006 | 1,187,705 |
Commercial mortgages | 30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 374 | 320 | |
Commercial mortgages | 60–89 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 97 | 90 | |
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 | 279 | 0 | |
Construction | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 0 | |
Accruing Current Balances | 291,752 | 278,864 | |
Acquired Impaired Loans | 731 | 2,021 | 940 |
Nonaccrual Loans | 4,637 | 1,804 | |
Total Loans | 297,120 | $ 279,806 | 281,608 |
Construction | 30–59 Days Past Due and Still Accruing | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due And Still Accruing | 0 | 0 | |
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 | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES AND55
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Analysis of Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | $ 57,348 | $ 62,106 |
Loans with No Related Reserve | 28,006 | 32,172 |
Loans with Related Reserve | 29,342 | 29,934 |
Related Reserve | 3,956 | 5,017 |
Contractual Principal Balances | 73,718 | 78,982 |
Average Loan Balances | 60,672 | 60,743 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 17,935 | 20,842 |
Loans with No Related Reserve | 2,781 | 3,422 |
Loans with Related Reserve | 15,154 | 17,420 |
Related Reserve | 2,369 | 3,861 |
Contractual Principal Balances | 21,035 | 23,815 |
Average Loan Balances | 17,818 | 15,072 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 12,493 | 14,181 |
Loans with No Related Reserve | 7,513 | 8,282 |
Loans with Related Reserve | 4,980 | 5,899 |
Related Reserve | 628 | 796 |
Contractual Principal Balances | 14,863 | 17,015 |
Average Loan Balances | 13,832 | 14,533 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 7,844 | 7,819 |
Loans with No Related Reserve | 6,577 | 6,304 |
Loans with Related Reserve | 1,267 | 1,515 |
Related Reserve | 192 | 203 |
Contractual Principal Balances | 8,710 | 8,977 |
Average Loan Balances | 7,891 | 8,158 |
Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 4,919 | 5,374 |
Loans with No Related Reserve | 3,224 | 3,654 |
Loans with Related Reserve | 1,695 | 1,720 |
Related Reserve | 18 | 12 |
Contractual Principal Balances | 5,542 | 5,717 |
Average Loan Balances | 5,845 | 5,827 |
Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 8,372 | 7,598 |
Loans with No Related Reserve | 6,565 | 4,487 |
Loans with Related Reserve | 1,807 | 3,111 |
Related Reserve | 147 | 112 |
Contractual Principal Balances | 17,314 | 16,658 |
Average Loan Balances | 9,882 | 12,630 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending Loan Balances | 5,785 | 6,292 |
Loans with No Related Reserve | 1,346 | 6,023 |
Loans with Related Reserve | 4,439 | 269 |
Related Reserve | 602 | 33 |
Contractual Principal Balances | 6,254 | 6,800 |
Average Loan Balances | $ 5,404 | $ 4,523 |
ALLOWANCE FOR LOAN LOSSES AND56
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Commercial Credit Exposure (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial Loans | 100.00% | 100.00% |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 1,526,113 | $ 1,464,554 |
Special mention | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 20,847 | 22,789 |
Accrual | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 28,530 | 34,332 |
Nonaccrual | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 14,025 | 15,370 |
Doubtful | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 2,208 | $ 3,687 |
Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial Loans | 3.00% | 3.00% |
Total Special Mention and Substandard | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 65,610 | $ 76,178 |
Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial Loans | 1.00% | 1.00% |
Acquired impaired | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 2,904 | $ 4,156 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial Loans | 96.00% | 96.00% |
Pass | Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 1,457,599 | $ 1,384,220 |
Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,085,895 | 1,079,247 |
Owner-occupied commercial | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 17,022 | 16,783 |
Owner-occupied commercial | Accrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 18,741 | 19,386 |
Owner-occupied commercial | Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 3,224 | 3,654 |
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 | 38,987 | 39,823 |
Owner-occupied commercial | Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 4,915 | 5,803 |
Owner-occupied commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,041,993 | 1,033,621 |
Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,160,654 | 1,187,705 |
Commercial mortgages | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 6,419 | 0 |
Commercial mortgages | Accrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 4,532 | 1,967 |
Commercial mortgages | Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 6,304 | 5,852 |
Commercial mortgages | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 63 | 18 |
Commercial mortgages | Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 17,318 | 7,837 |
Commercial mortgages | Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 9,151 | 9,724 |
Commercial mortgages | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,134,185 | 1,170,144 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 297,120 | 281,608 |
Construction | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 0 | 0 |
Construction | Accrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 1,092 | 4,965 |
Construction | Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 4,044 | 1,804 |
Construction | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 593 | 0 |
Construction | Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 5,729 | 6,769 |
Construction | Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 731 | 940 |
Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 290,660 | 273,899 |
Total Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 4,069,782 | 4,013,114 |
Total Commercial | Special mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 44,288 | 39,572 |
Total Commercial | Accrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 52,895 | 60,650 |
Total Commercial | Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 27,597 | 26,680 |
Total Commercial | Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 2,864 | 3,705 |
Total Commercial | Total Special Mention and Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 127,644 | 130,607 |
Total Commercial | Acquired impaired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | 17,701 | 20,623 |
Total Commercial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Commercial Loans | $ 3,924,437 | $ 3,861,884 |
ALLOWANCE FOR LOAN LOSSES AND57
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Residential and Consumer Credit Exposure (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 4,901,621 | $ 4,805,094 | $ 4,605,771 |
Total | 100.00% | 100.00% | |
Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 213,099 | $ 233,487 | 252,602 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 618,740 | 558,493 | $ 492,817 |
Nonperforming | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 12,282 | 13,778 | |
Nonperforming | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 7,714 | 7,588 | |
Performing | Residential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 200,046 | 218,925 | |
Performing | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 610,775 | $ 550,658 | |
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 | $ 771 | $ 784 | |
Acquired impaired | Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 251 | 247 | |
Total Residential and Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 831,839 | $ 791,980 | |
Total | 100.00% | 100.00% | |
Total Residential and Consumer | Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 19,996 | $ 21,366 | |
Total | 2.00% | 3.00% | |
Total Residential and Consumer | Performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 810,821 | $ 769,583 | |
Total | 98.00% | 97.00% | |
Total Residential and Consumer | Acquired impaired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 1,022 | $ 1,031 | |
Total | 0.00% | 0.00% |
ALLOWANCE FOR LOAN LOSSES AND58
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Performing TDRs | $ 16,273 | $ 18,100 | $ 20,061 |
Nonperforming TDRs | 19,539 | 9,627 | |
Total TDRs | $ 35,812 | $ 29,688 |
ALLOWANCE FOR LOAN LOSSES AND59
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Types of TDR (Details) - loan | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 23 | 18 |
Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 1 |
Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 2 | 0 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 3 | 2 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 1 | 3 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 4 | 1 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 13 | 11 |
Contractual payment reduction and term extension | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 15 | 1 |
Contractual payment reduction and term extension | Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Contractual payment reduction and term extension | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 1 | 0 |
Contractual payment reduction and term extension | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 3 | 1 |
Contractual payment reduction and term extension | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Contractual payment reduction and term extension | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 4 | 0 |
Contractual payment reduction and term extension | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 7 | 0 |
Maturity Date Extension | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 3 | 4 |
Maturity Date Extension | Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 1 |
Maturity Date Extension | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 1 | 0 |
Maturity Date Extension | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 1 |
Maturity Date Extension | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 1 | 2 |
Maturity Date Extension | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Maturity Date Extension | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 1 | 0 |
Discharged in bankruptcy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 3 | 8 |
Discharged in bankruptcy | Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Discharged in bankruptcy | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Discharged in bankruptcy | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Discharged in bankruptcy | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Discharged in bankruptcy | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 1 |
Discharged in bankruptcy | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 3 | 7 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 2 | 5 |
Other | Owner-occupied commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Other | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Other | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Other | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 1 |
Other | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 0 | 0 |
Other | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan Modification Total | 2 | 4 |
ALLOWANCE FOR LOAN LOSSES AND60
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Modifications [Line Items] | ||||
Total loans identified during the period | $ 7,676 | $ 1,136 | $ 9,316 | $ 7,188 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans identified during the period | 4,782 | 338 | 4,782 | 781 |
Commercial mortgages | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans identified during the period | 1,564 | 0 | 2,022 | 0 |
Construction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans identified during the period | 0 | 124 | 920 | 1,836 |
Residential | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans identified during the period | 469 | 0 | 469 | 242 |
Consumer | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans identified during the period | 861 | 674 | 1,123 | 1,258 |
Owner-occupied commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Total loans identified during the period | $ 0 | $ 0 | $ 0 | $ 3,071 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Noninterest-bearing: | ||
Noninterest demand | $ 1,434,549 | $ 1,420,760 |
Total noninterest-bearing | 1,434,549 | 1,420,760 |
Interest-bearing: | ||
Interest-bearing demand | 966,736 | 1,071,512 |
Savings | 565,074 | 549,744 |
Money market | 1,377,682 | 1,347,146 |
Total core deposits | 2,909,492 | 2,968,402 |
Customer time deposits | 690,267 | 629,071 |
Brokered deposits | 332,247 | 229,371 |
Total interest-bearing | 3,932,006 | 3,826,844 |
Total deposits | $ 5,366,555 | $ 5,247,604 |
ASSOCIATE BENEFIT PLANS - Addit
ASSOCIATE BENEFIT PLANS - Additional Information (Details) | Mar. 31, 2014 | Jun. 30, 2018 |
Postemployment Benefits [Abstract] | ||
Requisite service period | 10 years | |
Amortization of unrecognized gains losses exceed percentage | 10.00% |
ASSOCIATE BENEFIT PLANS - Sched
ASSOCIATE BENEFIT PLANS - Schedule of Net Periodic Benefit Cost Components of Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Postretirement Health Coverage | ||||
Business Acquisition [Line Items] | ||||
Service cost | $ 15 | $ 14 | $ 30 | $ 29 |
Interest cost | 18 | 19 | 35 | 38 |
Prior service cost amortization | (19) | (19) | (38) | (38) |
Net gain recognition | (12) | (18) | (23) | (34) |
Net periodic benefit cost | 2 | (4) | 4 | (5) |
Pension Plan | Alliance | ||||
Business Acquisition [Line Items] | ||||
Service cost | 10 | 10 | 20 | 20 |
Interest cost | 74 | 75 | 147 | 150 |
Expected return on plan assets | (137) | (135) | (272) | (270) |
Prior service cost amortization | 0 | 0 | 0 | 0 |
Net gain recognition | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ (53) | $ (50) | $ (105) | $ (100) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||||
Unrecognized tax benefits | $ 0 | $ 0 | |||
Amortization method qualified affordable housing project investments, amortization | 500,000 | $ 400,000 | 900,000 | $ 800,000 | |
Tax benefits recorded as income tax expense | 100,000 | ||||
Carrying value of investment in affordable housing credits | 12,800,000 | 12,800,000 | $ 13,800,000 | ||
Tax Credit | |||||
Income Tax Examination [Line Items] | |||||
Affordable housing tax credits | $ 900,000 | $ 900,000 |
FAIR VALUE DISCLOSURES OF FIN65
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Schedule of Financial Instruments Carried at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 964,120 | $ 837,499 |
Investment securities available for sale | 838,869 | |
Total assets measured at fair value on a nonrecurring basis | 90,647 | |
Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 965,167 | |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 121,262 | |
CMO | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 298,263 | 246,539 |
CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 298,263 | 246,539 |
FNMA MBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 538,240 | 473,987 |
FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 538,240 | 473,987 |
FHLMC MBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 93,738 | 87,875 |
FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 93,738 | 87,875 |
GNMA MBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 33,879 | 29,098 |
GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 33,879 | 29,098 |
Other equity investments | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 623 | |
Other equity investments | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 33,589 | |
Other Assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,047 | 747 |
Other Liabilities | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities | 4,616 | 3,225 |
Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 2,609 | 2,503 |
Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 31,672 | 31,055 |
Impaired loans, net | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 53,392 | 57,089 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 623 | |
Total assets measured at fair value on a nonrecurring basis | 0 | |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | |
Quoted Prices in Active Markets for Identical Asset (Level 1) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other equity investments | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 623 | |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other equity investments | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other Assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other Liabilities | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Impaired loans, net | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 838,246 | |
Total assets measured at fair value on a nonrecurring basis | 31,055 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 965,167 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 31,672 | |
Significant Other Observable Inputs (Level 2) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 298,263 | 246,539 |
Significant Other Observable Inputs (Level 2) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 538,240 | 473,987 |
Significant Other Observable Inputs (Level 2) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 93,738 | 87,875 |
Significant Other Observable Inputs (Level 2) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 33,879 | 29,098 |
Significant Other Observable Inputs (Level 2) | Other equity investments | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | |
Significant Other Observable Inputs (Level 2) | Other equity investments | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | |
Significant Other Observable Inputs (Level 2) | Other Assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,047 | 747 |
Significant Other Observable Inputs (Level 2) | Other Liabilities | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities | 4,616 | 3,225 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 31,672 | 31,055 |
Significant Other Observable Inputs (Level 2) | Impaired loans, net | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | |
Total assets measured at fair value on a nonrecurring basis | 59,592 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 89,590 | |
Significant Unobservable Inputs (Level 3) | CMO | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | FNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | FHLMC MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | GNMA MBS | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other equity investments | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | |
Significant Unobservable Inputs (Level 3) | Other equity investments | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 33,589 | |
Significant Unobservable Inputs (Level 3) | Other Assets | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Liabilities | Fair Value, Measurements, Recurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 2,609 | 2,503 |
Significant Unobservable Inputs (Level 3) | Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans, net | Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | $ 53,392 | $ 57,089 |
FAIR VALUE DISCLOSURES OF FIN66
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Additional Information (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Jun. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available for sale | $ 964,120,000 | $ 837,499,000 | $ 964,120,000 | |
Minimum discount rate on appraisals of collateral securing loan | 10.00% | |||
Maximum discount rate on appraisals of collateral securing loan | 20.00% | |||
Loan balances | 57,348,000 | 62,106,000 | $ 57,348,000 | |
Related reserve | 3,956,000 | 5,017,000 | 3,956,000 | |
Commitments of lending operations | 0 | $ 0 | ||
Significant Other Observable Inputs (Level 2) | Federal Agency MBS | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available for sale | $ 964,100,000 | $ 964,100,000 | ||
Accounting Standards Update 2016-01 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Equity securities unrealized gain | $ 15,300,000 |
FAIR VALUE DISCLOSURES OF FIN67
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Book Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Investment securities available for sale | $ 838,869 | |
Investment securities held to maturity | $ 156,456 | 161,186 |
Other investments | 33,589 | 17,971 |
Loans, held for sale | 31,672 | 31,055 |
Loans, net | 4,869,055 | 4,776,318 |
Stock in FHLB of Pittsburgh | 29,805 | 31,284 |
Accrued interest receivable | 20,393 | 19,405 |
Other assets | 60,926 | 59,068 |
Financial liabilities: | ||
Deposits | 5,366,555 | 5,247,604 |
Accrued interest payable | 4,131 | 1,037 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Financial assets: | ||
Investment securities available for sale | 623 | |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Investment securities available for sale | 838,246 | |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Investment securities available for sale | 0 | |
Book Value | Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 703,480 | 723,866 |
Book Value | Fair Value Inputs Level 1 And Level 2 | ||
Financial assets: | ||
Investment securities available for sale | 964,120 | 837,499 |
Book Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Investment securities held to maturity | 156,456 | 161,186 |
Loans, held for sale | 31,672 | 31,055 |
Stock in FHLB of Pittsburgh | 29,805 | 31,284 |
Accrued interest receivable | 20,393 | 19,405 |
Financial liabilities: | ||
Deposits | 5,366,555 | 5,247,604 |
Borrowed funds | 896,350 | 937,806 |
Accrued interest payable | 4,131 | 1,037 |
Other liabilities | 4,616 | 3,188 |
Book Value | Fair Value Inputs Level 1 And Level 3 | ||
Financial assets: | ||
Other investments | 33,589 | 14,671 |
Book Value | Fair Value Inputs Level 2 And Level 3 | ||
Financial assets: | ||
Loans, net | 4,815,663 | 4,719,229 |
Book Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Impaired loans, net | 53,392 | 57,089 |
Other assets | 1,047 | 2,883 |
Financial liabilities: | ||
Standby letters of credit | 381 | 603 |
Fair Value | Quoted Prices in Active Markets for Identical Asset (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 703,480 | 723,866 |
Fair Value | Fair Value Inputs Level 1 And Level 2 | ||
Financial assets: | ||
Investment securities available for sale | 964,120 | 837,499 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Investment securities held to maturity | 155,644 | 162,853 |
Loans, held for sale | 31,672 | 31,055 |
Stock in FHLB of Pittsburgh | 29,805 | 31,284 |
Accrued interest receivable | 20,393 | 19,405 |
Financial liabilities: | ||
Deposits | 5,341,346 | 4,848,588 |
Borrowed funds | 890,793 | 937,605 |
Accrued interest payable | 4,131 | 1,037 |
Other liabilities | 4,616 | 3,188 |
Fair Value | Fair Value Inputs Level 1 And Level 3 | ||
Financial assets: | ||
Other investments | 33,589 | 45,326 |
Fair Value | Fair Value Inputs Level 2 And Level 3 | ||
Financial assets: | ||
Loans, net | 4,656,304 | 4,699,458 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Impaired loans, net | 53,392 | 57,089 |
Other assets | 1,047 | 2,883 |
Financial liabilities: | ||
Standby letters of credit | $ 381 | $ 603 |
DERIVATIVE FINANCIAL INSTRUME68
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Instruments (Details) $ in Thousands | Jun. 30, 2018USD ($)instrument |
Derivative [Line Items] | |
Notional | $ 214,230 |
Total derivatives | (3,624) |
Designated as Hedging Instrument | |
Derivative [Line Items] | |
Notional | 75,000 |
Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Notional | 139,230 |
Total derivatives | 915 |
Other Liabilities | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative Liability | $ (4,539) |
Interest rate products | Other Liabilities | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Count | instrument | 3 |
Notional | $ 75,000 |
Derivative Liability | (4,539) |
Interest rate lock commitment with customers | Other Assets | Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Notional | 65,594 |
Derivative Asset | 830 |
Interest rate lock commitment with customers | Other Liabilities | Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Notional | 5,128 |
Derivative Liability | (26) |
Forward sale commitments | Other Assets | Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Notional | 34,944 |
Derivative Asset | 216 |
Forward sale commitments | Other Liabilities | Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Notional | 33,564 |
Derivative Liability | $ (105) |
DERIVATIVE FINANCIAL INSTRUME69
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
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 | 1,000,000 |
Interest rate cash flow hedge gain (loss) reclassified to earnings, net | 200,000 |
Notional | 214,230,000 |
Termination value of derivatives | (3,624,000) |
Collateral value against obligations | 5,900,000 |
Designated as Hedging Instrument | |
Derivative [Line Items] | |
Notional | 75,000,000 |
Accrued Liabilities | |
Derivative [Line Items] | |
Termination value of derivatives | $ 4,500,000 |
DERIVATIVE FINANCIAL INSTRUME70
DERIVATIVE FINANCIAL INSTRUMENTS - Effect of Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) | $ (246) | $ 263 | $ (1,010) | $ 150 |
Interest income | Interest Rate Products | ||||
Derivative [Line Items] | ||||
Amount of (Loss) or Gain Recognized in OCI on Derivative (Effective Portion) | (246) | 263 | (1,010) | 150 |
Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income | 156 | 0 | (628) | 0 |
Derivatives not designated as hedging instruments | Mortgage banking activities, net | Interest rate lock commitment with customers | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income | 96 | 0 | (296) | 0 |
Derivatives not designated as hedging instruments | Mortgage banking activities, net | Forward sale commitments | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income | $ 60 | $ 0 | $ (332) | $ 0 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Interest income | $ 72,151 | $ 62,334 | $ 139,764 | $ 123,160 |
Noninterest income | 34,987 | 31,676 | 82,454 | 59,768 |
Total revenue | 107,138 | 94,010 | 222,218 | 182,928 |
Interest expense | 11,162 | 8,020 | 21,061 | 15,743 |
Noninterest expenses | 57,831 | 52,727 | 111,243 | 104,233 |
Provision for loan losses | 2,498 | 1,843 | 6,148 | 4,005 |
Total expenses | 71,491 | 62,590 | 138,452 | 123,981 |
Income before taxes | 35,647 | 31,420 | 83,766 | 58,947 |
Income tax provision | 6,907 | 10,850 | 17,676 | 19,440 |
Net income | 28,740 | 20,570 | 66,090 | 39,507 |
Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 6,235 | 4,682 | 11,566 | 8,743 |
Noninterest income | 2,456 | 2,153 | 4,779 | 4,544 |
Total revenue | 8,691 | 6,835 | 16,345 | 13,287 |
Interest expense | 6,235 | 4,682 | 11,566 | 8,743 |
Noninterest expenses | 2,456 | 2,153 | 4,779 | 4,544 |
Total expenses | 8,691 | 6,835 | 16,345 | 13,287 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 115,829 | 100,845 | 238,563 | 196,215 |
Total expenses | 80,182 | 69,425 | 154,797 | 137,268 |
Income before taxes | 35,647 | 31,420 | 83,766 | 58,947 |
WSFS Bank | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 69,599 | 60,234 | 134,889 | 118,922 |
Noninterest income | 12,045 | 12,049 | 38,651 | 22,216 |
Total revenue | 81,644 | 72,283 | 173,540 | 141,138 |
Interest expense | 10,599 | 7,739 | 20,102 | 15,202 |
Noninterest expenses | 42,505 | 38,782 | 81,940 | 77,742 |
Provision for loan losses | 2,284 | 1,316 | 5,945 | 3,032 |
Total expenses | 55,388 | 47,837 | 107,987 | 95,976 |
WSFS Bank | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 3,565 | 2,247 | 6,533 | 4,243 |
Noninterest income | 2,219 | 1,906 | 4,327 | 4,070 |
Total revenue | 5,784 | 4,153 | 10,860 | 8,313 |
Interest expense | 2,670 | 2,435 | 5,033 | 4,500 |
Noninterest expenses | 237 | 247 | 452 | 474 |
Total expenses | 2,907 | 2,682 | 5,485 | 4,974 |
WSFS Bank | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 87,428 | 76,436 | 184,400 | 149,451 |
Total expenses | 58,295 | 50,519 | 113,472 | 100,950 |
Income before taxes | 29,133 | 25,917 | 70,928 | 48,501 |
Cash Connect | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 0 | 0 | 0 | 0 |
Noninterest income | 12,328 | 10,514 | 23,681 | 20,191 |
Total revenue | 12,328 | 10,514 | 23,681 | 20,191 |
Interest expense | 0 | 0 | 0 | 0 |
Noninterest expenses | 7,905 | 6,591 | 15,224 | 12,726 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Total expenses | 7,905 | 6,591 | 15,224 | 12,726 |
Cash Connect | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 0 | 0 | 0 | 0 |
Noninterest income | 200 | 207 | 381 | 398 |
Total revenue | 200 | 207 | 381 | 398 |
Interest expense | 2,516 | 1,582 | 4,575 | 2,987 |
Noninterest expenses | 637 | 673 | 1,309 | 1,388 |
Total expenses | 3,153 | 2,255 | 5,884 | 4,375 |
Cash Connect | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 12,528 | 10,721 | 24,062 | 20,589 |
Total expenses | 11,058 | 8,846 | 21,108 | 17,101 |
Income before taxes | 1,470 | 1,875 | 2,954 | 3,488 |
Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 2,552 | 2,100 | 4,875 | 4,238 |
Noninterest income | 10,614 | 9,113 | 20,122 | 17,361 |
Total revenue | 13,166 | 11,213 | 24,997 | 21,599 |
Interest expense | 563 | 281 | 959 | 541 |
Noninterest expenses | 7,421 | 7,354 | 14,079 | 13,765 |
Provision for loan losses | 214 | 527 | 203 | 973 |
Total expenses | 8,198 | 8,162 | 15,241 | 15,279 |
Wealth Management | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 2,670 | 2,435 | 5,033 | 4,500 |
Noninterest income | 37 | 40 | 71 | 76 |
Total revenue | 2,707 | 2,475 | 5,104 | 4,576 |
Interest expense | 1,049 | 665 | 1,958 | 1,256 |
Noninterest expenses | 1,582 | 1,233 | 3,018 | 2,682 |
Total expenses | 2,631 | 1,898 | 4,976 | 3,938 |
Wealth Management | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 15,873 | 13,688 | 30,101 | 26,175 |
Total expenses | 10,829 | 10,060 | 20,217 | 19,217 |
Income before taxes | $ 5,044 | $ 3,628 | $ 9,884 | $ 6,958 |
SEGMENT INFORMATION - Details o
SEGMENT INFORMATION - Details of Segment Information - Statement of Financial Condition (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 703,480 | $ 723,866 | $ 745,311 | $ 821,923 |
Goodwill | 166,007 | 166,007 | ||
Other segment assets | 6,243,060 | 6,109,667 | ||
Total assets | 7,112,547 | 6,999,540 | ||
Capital expenditures | 3,790 | 8,994 | ||
WSFS Bank | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 87,285 | 104,530 | ||
Goodwill | 145,808 | 145,808 | ||
Other segment assets | 6,007,041 | 5,882,910 | ||
Total assets | 6,240,134 | 6,133,248 | ||
Capital expenditures | 3,409 | 8,197 | ||
Cash Connect | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 603,685 | 611,385 | ||
Goodwill | 0 | 0 | ||
Other segment assets | 6,819 | 6,078 | ||
Total assets | 610,504 | 617,463 | ||
Capital expenditures | 127 | 184 | ||
Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 12,510 | 7,951 | ||
Goodwill | 20,199 | 20,199 | ||
Other segment assets | 229,200 | 220,679 | ||
Total assets | 261,909 | 248,829 | ||
Capital expenditures | $ 254 | $ 613 |
INDEMNIFICATIONS AND GUARANTE74
INDEMNIFICATIONS AND GUARANTEES (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)loanFinancial_InstitutionTransaction | Dec. 31, 2017USD ($)loan | |
Guarantor Obligations [Line Items] | ||
Number of unrelated financial institutions | Financial_Institution | 5 | |
Derivative transaction held for guarantee | loan | 137 | 134 |
Notional | $ 214,230,000 | |
Aggregate fair value of swaps to customers, asset | 6,900,000 | |
Aggregate fair value of swaps to customers, liability | $ 3,300,000 | |
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 | 10 years | |
Secondary Market Loan Sales | ||
Guarantor Obligations [Line Items] | ||
Provision for losses at the time of sale | $ 0 | |
Number of loans repurchased | Transaction | 0 | |
Interest Rate Swap | ||
Guarantor Obligations [Line Items] | ||
Notional | $ 601,700,000 | $ 561,800,000 |
CHANGE IN ACCUMULATED OTHER C75
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 724,345 | $ 687,336 | ||
Other comprehensive (loss) income before reclassifications | $ (4,738) | $ 3,503 | (17,330) | 4,663 |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | (155) | (574) | (231) | (904) |
Net current-period other comprehensive income (loss) | (4,893) | 2,929 | (17,561) | 3,759 |
Ending Balance | 768,977 | 722,623 | 768,977 | 722,623 |
Net change in investment securities available for sale | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (19,685) | (7,128) | (7,842) | (8,194) |
Other comprehensive (loss) income before reclassifications | (4,501) | 3,241 | (16,328) | 4,513 |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | 0 | (455) | (16) | (661) |
Net current-period other comprehensive income (loss) | (4,501) | 2,786 | (16,344) | 3,852 |
Ending Balance | (24,186) | (4,342) | (24,186) | (4,342) |
Net change in investment securities held to maturity | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 1,104 | 1,291 | 1,223 | 1,392 |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 0 |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | (117) | (97) | (236) | (198) |
Net current-period other comprehensive income (loss) | (117) | (97) | (236) | (198) |
Ending Balance | 987 | 1,194 | 987 | 1,194 |
Net change in defined benefit plan | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 924 | 934 | 865 | 957 |
Other comprehensive (loss) income before reclassifications | 8 | 0 | 8 | 0 |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | (38) | (22) | 21 | (45) |
Net current-period other comprehensive income (loss) | (30) | (22) | 29 | (45) |
Ending Balance | 894 | 912 | 894 | 912 |
Net change in fair value of derivatives used for cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (3,163) | (1,884) | (2,398) | (1,772) |
Other comprehensive (loss) income before reclassifications | (245) | 262 | (1,010) | 150 |
Less: Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (245) | 262 | (1,010) | 150 |
Ending Balance | (3,408) | (1,622) | (3,408) | (1,622) |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (20,820) | (6,787) | (8,152) | (7,617) |
Ending Balance | $ (25,713) | $ (3,858) | $ (25,713) | $ (3,858) |
CHANGE IN ACCUMULATED OTHER C76
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Realized gains on securities transactions | $ 0 | $ 708 | $ 21 | $ 1,028 | |
Income taxes | (6,907) | (10,850) | (17,676) | (19,440) | |
Income before taxes | 35,647 | 31,420 | 83,766 | 58,947 | |
Net income | 28,740 | 20,570 | 66,090 | 39,507 | |
Prior service cost (credit), tax adjustment | $ 100 | ||||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income | (155) | (574) | (231) | (904) | |
Reclassification out of Accumulated Other Comprehensive Income | Net change in defined benefit plan | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Prior service costs (credits) | (19) | (19) | 40 | (38) | |
Transition obligation | 0 | 0 | 0 | 0 | |
Actuarial gains | (12) | (18) | (23) | (34) | |
Income taxes | (7) | 15 | 4 | 27 | |
Income before taxes | (31) | (37) | 17 | (72) | |
Net income | (38) | (22) | 21 | (45) | |
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 | (708) | (21) | (1,028) | ||
Income taxes | 0 | 253 | 5 | 367 | |
Net income | 0 | (455) | (16) | (661) | |
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] | |||||
Amortization of net unrealized gains to income during the period | (153) | (159) | (309) | (319) | |
Income taxes | 36 | 62 | 73 | 121 | |
Net income | $ (117) | $ (97) | $ (236) | $ (198) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Total deposits from related parties | $ 5 | $ 5.4 |
Loans | ||
Related Party Transaction [Line Items] | ||
Related party loan repayment | 1.5 | $ 1.2 |
New Loans And Credit Line Advance To Related Parties | ||
Related Party Transaction [Line Items] | ||
New loans and credit line advance to related parties | 0.3 | |
Repayments from related party debt (less than in current quarter) | $ 0.1 |
LEGAL AND OTHER PROCEEDINGS (De
LEGAL AND OTHER PROCEEDINGS (Details) - USD ($) | Feb. 27, 2018 | Jun. 30, 2018 |
Loss Contingencies [Line Items] | ||
Additions to other significant pending legal or other proceedings | $ 0 | |
Universitas Education, LLC | Settled Litigation | ||
Loss Contingencies [Line Items] | ||
Loss related to litigation settlement | $ 12,000,000 |
SUBSQUENT EVENT (Details)
SUBSQUENT EVENT (Details) - Scenario, Forecast $ / shares in Units, $ in Billions | Mar. 31, 2019USD ($)$ / shares |
Subsequent Event [Line Items] | |
Stock and cash merger value | $ | $ 1.5 |
Shares Issued Per Acquiree Share, ratio | 0.3013 |
Cash paid per acquiree share (in dollars per share) | $ / shares | $ 2.93 |