Maryland | 43-1524856 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
1451 E. Battlefield, Springfield, Missouri | 65804 |
(Address of principal executive offices) | (Zip Code) |
(417) 887-4400 |
Registrant's telephone number, including area code |
Title of Each Class | Name of Each Exchange on Which Registered |
Common Stock, par value $0.01 per share | The NASDAQ Stock Market LLC |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | Yes [ ] No [X] |
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. | Yes [ ] No [X] |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes [X] No [ ] |
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Yes [X] No [ ] |
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ] | |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. | |
Large accelerated filer [ ] Accelerated filer [X] Non-accelerated filer [ ] Smaller reporting company [ ]Emerging growth company [ ] | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] | |
Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). | Yes [ ] No [X] |
The aggregate market value of the common stock of the registrant held by non-affiliates of the Registrant on June 30, 2018, computed by reference to the closing price of such shares on that date, was $626,952,383. At March 5, 2019, 14,169,682 shares of the Registrant's common stock were outstanding. | |
Page | |||
ITEM 1. | BUSINESS | 1 | |
ITEM 1A. | RISK FACTORS | 46 | |
ITEM 1B. | UNRESOLVED STAFF COMMENTS | 57 | |
ITEM 2. | PROPERTIES. | 57 | |
ITEM 3. | LEGAL PROCEEDINGS. | 57 | |
ITEM 4. | MINE SAFETY DISCLOSURES. | 57 | |
ITEM 4A. | EXECUTIVE OFFICERS OF THE REGISTRANT. | 57 | |
ITEM 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 58 | |
ITEM 6. | SELECTED FINANCIAL DATA | 59 | |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 62 | |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 95 | |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | 99 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | 171 | |
ITEM 9A. | CONTROLS AND PROCEDURES. | 171 | |
ITEM 9B. | OTHER INFORMATION. | 173 | |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. | 174 | |
ITEM 11. | EXECUTIVE COMPENSATION. | 174 | |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 174 | |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. | 174 | |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES. | 175 | |
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES. | 176 |
December 31, | ||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||||||||||||
One- to four- family(1) | $ | 400,954 | 8.3 | % | $ | 318,186 | 7.3 | % | $ | 353,709 | 8.6 | % | $ | 272,411 | 7.9 | % | $ | 245,180 | 8.3 | % | ||||||||||||||||||||
Other residential | 784,894 | 16.3 | 745,645 | 17.1 | 663,378 | 16.1 | 419,550 | 12.1 | 392,415 | 13.2 | ||||||||||||||||||||||||||||||
Commercial(2) | 1,385,375 | 28.7 | 1,256,986 | 28.8 | 1,211,644 | 29.4 | 1,080,836 | 31.3 | 986,936 | 33.3 | ||||||||||||||||||||||||||||||
Residential construction: | ||||||||||||||||||||||||||||||||||||||||
One- to four- family | 26,683 | 0.5 | 23,266 | 0.5 | 26,764 | 0.6 | 36,430 | 1.1 | 49,631 | 1.7 | ||||||||||||||||||||||||||||||
Other residential | 376,575 | 7.8 | 208,883 | 4.8 | 202,202 | 4.9 | 133,718 | 3.9 | 59,664 | 2.0 | ||||||||||||||||||||||||||||||
Commercial | 1,098,420 | 22.8 | 919,029 | 21.1 | 641,195 | 15.6 | 551,115 | 16.0 | 404,683 | 13.7 | ||||||||||||||||||||||||||||||
Total real estate loans | 4,072,901 | 84.4 | 3,471,995 | 79.6 | 3,098,892 | 75.2 | 2,494,060 | 72.3 | 2,138,509 | 72.2 | ||||||||||||||||||||||||||||||
Other Loans: | ||||||||||||||||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||||||||||
Automobile, boat, etc. | 309,201 | 6.4 | 418,594 | 9.6 | 563,086 | 13.7 | 513,798 | 14.9 | 400,392 | 13.5 | ||||||||||||||||||||||||||||||
Home equity and improvement | 121,352 | 2.5 | 115,439 | 2.7 | 108,753 | 2.6 | 83,966 | 2.4 | 66,275 | 2.2 | ||||||||||||||||||||||||||||||
Other | 1,677 | — | 1,916 | — | 1,148 | — | 926 | — | 987 | 0.1 | ||||||||||||||||||||||||||||||
Total consumer loans | 432,230 | 8.9 | 535,949 | 12.3 | 672,987 | 16.3 | 598,690 | 17.3 | 467,654 | 15.8 | ||||||||||||||||||||||||||||||
Other commercial loans | 322,119 | 6.7 | 353,553 | 8.1 | 348,955 | 8.5 | 357,581 | 10.4 | 354,012 | 12.0 | ||||||||||||||||||||||||||||||
Total other loans | 754,349 | 15.6 | 889,502 | 20.4 | 1,021,942 | 24.8 | 956,271 | 27.7 | 821,666 | 27.8 | ||||||||||||||||||||||||||||||
Total loans | 4,827,250 | 100.0 | % | 4,361,497 | 100.0 | % | 4,120,834 | 100.0 | % | 3,450,331 | 100.0 | % | 2,960,175 | 100.0 | % | |||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Loans in process | 958,436 | 793,664 | 585,305 | 418,702 | 323,572 | |||||||||||||||||||||||||||||||||||
Deferred fees and discounts | 7,400 | 6,500 | 4,869 | 3,528 | 3,276 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | 37,988 | 36,033 | 36,775 | 36,646 | 36,300 | |||||||||||||||||||||||||||||||||||
Total legacy loans receivable, net | $ | 3,823,426 | $ | 3,525,300 | $ | 3,493,885 | $ | 2,991,455 | $ | 2,597,027 | ||||||||||||||||||||||||||||||
(1) Includes loans held for sale. (2) Total commercial real estate loans included industrial revenue bonds of $13.9 million, $21.7 million, $24.7 million, $37.4 million and $41.1 million at December 31, 2018, 2017, 2016, 2015 and 2014. |
December 31, | ||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||||
One- to four- family | $ | 102,153 | 55.4 | % | $ | 132,432 | 57.1 | % | $ | 169,541 | 54.7 | % | $ | 213,317 | 52.3 | % | $ | 256,099 | 47.7 | % | ||||||||||||||||||||
Other residential | 13,396 | 7.3 | 15,501 | 6.7 | 30,605 | 9.9 | 38,487 | 9.4 | 53,914 | 10.0 | ||||||||||||||||||||||||||||||
Commercial(1) | 34,853 | 18.9 | 41,218 | 17.8 | 56,548 | 18.2 | 79,461 | 19.5 | 119,279 | 22.2 | ||||||||||||||||||||||||||||||
Construction | 5,588 | 3.0 | 5,509 | 2.4 | 4,508 | 1.5 | 11,087 | 2.7 | 20,324 | 3.8 | ||||||||||||||||||||||||||||||
Total real estate loans | 155,990 | 84.6 | 194,660 | 84.0 | 261,202 | 84.3 | 342,352 | 83.9 | 449,616 | 83.7 | ||||||||||||||||||||||||||||||
Other Loans: | ||||||||||||||||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||||||||||
Student loans | — | — | — | — | — | — | 481 | 0.1 | 543 | 0.1 | ||||||||||||||||||||||||||||||
Home equity and improvement | 21,490 | 11.7 | 27,778 | 12.0 | 35,688 | 11.5 | 43,507 | 10.7 | 52,436 | 9.8 | ||||||||||||||||||||||||||||||
Other | 2,110 | 1.1 | 3,367 | 1.4 | 4,739 | 1.5 | 6,578 | 1.6 | 9,308 | 1.7 | ||||||||||||||||||||||||||||||
Total consumer loans | 23,600 | 12.8 | 31,145 | 13.4 | 40,427 | 13.0 | 50,566 | 12.4 | 62,287 | 11.6 | ||||||||||||||||||||||||||||||
Other commercial loans | 4,861 | 2.6 | 6,016 | 2.6 | 8,448 | 2.7 | 15,331 | 3.7 | 25,160 | 4.7 | ||||||||||||||||||||||||||||||
Total other loans | 28,461 | 15.4 | 37,161 | 16.0 | 48,875 | 15.7 | 65,897 | 16.1 | 87,447 | 16.3 | ||||||||||||||||||||||||||||||
Total loans(2) | 184,451 | 100.0 | % | 231,821 | 100.0 | % | 310,077 | 100.0 | % | 408,249 | 100.0 | % | 537,063 | 100.0 | % | |||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Loans in process | 5 | 5 | 8 | 17 | 631 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | 421 | 459 | 625 | 1,503 | 2,135 | |||||||||||||||||||||||||||||||||||
Fair value discounts | 16,800 | 22,152 | 26,918 | 45,387 | 77,897 | |||||||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 167,225 | $ | 209,205 | $ | 282,526 | $ | 361,342 | $ | 456,400 |
(1) | Total commercial real estate loans included industrial revenue bonds of $1.4 million, $2.2 million, $2.5 million, $3.2 million and $3.7 million at December 31, 2018, 2017, 2016, 2015, and 2014, respectively. |
(2) | At December 31, 2018 and 2017, none of these acquired loans were covered by an FDIC loss sharing agreement. |
December 31, | ||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Fixed-Rate Loans: | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||||||||||||||||||||
One- to four- family | $ | 152,778 | 3.2 | % | $ | 148,790 | 3.4 | % | $ | 168,813 | 4.1 | % | $ | 110,738 | 3.2 | % | $ | 102,780 | 3.5 | % | ||||||||||||||||||||
Other residential | 387,744 | 8.0 | 279,593 | 6.4 | 304,387 | 7.4 | 257,854 | 7.5 | 273,701 | 9.2 | ||||||||||||||||||||||||||||||
Commercial | 686,832 | 14.2 | 603,183 | 13.8 | 589,354 | 14.3 | 522,924 | 15.2 | 453,153 | 15.3 | ||||||||||||||||||||||||||||||
Residential construction: | ||||||||||||||||||||||||||||||||||||||||
One- to four- family | 6,908 | 0.1 | 7,998 | 0.2 | 10,950 | 0.3 | 16,483 | 0.5 | 17,753 | 0.6 | ||||||||||||||||||||||||||||||
Other residential | 19,165 | 0.4 | 6,636 | 0.2 | 26,487 | 0.6 | 21,548 | 0.6 | 9,950 | 0.3 | ||||||||||||||||||||||||||||||
Commercial construction | 922,418 | 19.2 | 717,350 | 16.4 | 530,375 | 12.9 | 376,661 | 10.9 | 285,623 | 9.7 | ||||||||||||||||||||||||||||||
Total real estate loans | 2,175,845 | 45.1 | 1,763,550 | 40.4 | 1,630,366 | 39.6 | 1,306,208 | 37.9 | 1,142,960 | 38.6 | ||||||||||||||||||||||||||||||
Consumer | 301,627 | 6.2 | 411,068 | 9.4 | 553,800 | 13.4 | 506,574 | 14.7 | 396,412 | 13.4 | ||||||||||||||||||||||||||||||
Other commercial | 186,030 | 3.9 | 203,388 | 4.7 | 194,431 | 4.7 | 195,602 | 5.6 | 197,635 | 6.7 | ||||||||||||||||||||||||||||||
Total fixed-rate loans | 2,663,502 | 55.2 | 2,378,006 | 54.5 | 2,378,597 | 57.7 | 2,008,384 | 58.2 | 1,737,007 | 58.7 | ||||||||||||||||||||||||||||||
Adjustable-Rate Loans: | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||||||||||||||||||||
One- to four- family | 248,176 | 5.1 | 169,396 | 3.9 | 184,896 | 4.5 | 161,673 | 4.7 | 142,400 | 4.8 | ||||||||||||||||||||||||||||||
Other residential | 397,150 | 8.3 | 466,052 | 10.7 | 358,991 | 8.7 | 161,696 | 4.7 | 118,714 | 4.0 | ||||||||||||||||||||||||||||||
Commercial | 698,543 | 14.5 | 653,803 | 15.0 | 622,290 | 15.1 | 557,912 | 16.2 | 533,783 | 18.0 | ||||||||||||||||||||||||||||||
Residential construction: | ||||||||||||||||||||||||||||||||||||||||
One- to four- family | 19,775 | 0.4 | 15,268 | 0.4 | 15,814 | 0.4 | 19,947 | 0.5 | 31,878 | 1.1 | ||||||||||||||||||||||||||||||
Other residential | 357,410 | 7.4 | 202,247 | 4.6 | 175,715 | 4.3 | 112,170 | 3.3 | 49,714 | 1.7 | ||||||||||||||||||||||||||||||
Commercial construction | 176,002 | 3.6 | 201,679 | 4.6 | 110,820 | 2.7 | 174,454 | 5.0 | 119,060 | 4.0 | ||||||||||||||||||||||||||||||
Total real estate loans | 1,897,056 | 39.3 | 1,708,445 | 39.2 | 1,468,526 | 35.7 | 1,187,852 | 34.4 | 995,549 | 33.6 | ||||||||||||||||||||||||||||||
Consumer | 130,603 | 2.7 | 124,881 | 2.9 | 119,187 | 2.9 | 92,116 | 2.7 | 71,242 | 2.4 | ||||||||||||||||||||||||||||||
Other commercial | 136,089 | 2.8 | 150,165 | 3.4 | 154,524 | 3.7 | 161,979 | 4.7 | 156,377 | 5.3 | ||||||||||||||||||||||||||||||
Total adjustable-rate loans | 2,163,748 | 44.8 | 1,983,491 | 45.5 | 1,742,237 | 42.3 | 1,441,947 | 41.8 | 1,223,168 | 41.3 | ||||||||||||||||||||||||||||||
Total Loans | 4,827,250 | 100.0 | % | 4,361,497 | 100.0 | % | 4,120,834 | 100.0 | % | 3,450,331 | 100.0 | % | 2,960,175 | 100.0 | % | |||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Loans in process | 958,436 | 793,664 | 585,305 | 418,702 | 323,572 | |||||||||||||||||||||||||||||||||||
Deferred fees and discounts | 7,400 | 6,500 | 4,869 | 3,528 | 3,276 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | 37,988 | 36,033 | 36,775 | 36,646 | 36,300 | |||||||||||||||||||||||||||||||||||
Total legacy loans receivable, net | $ | 3,823,426 | $ | 3,525,300 | $ | 3,493,885 | $ | 2,991,455 | $ | 2,597,027 |
December 31, | ||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Fixed-Rate Loans: | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||||||||||||||||||||
One- to four- family | $ | 41,460 | 22.5 | % | $ | 54,302 | 23.4 | % | $ | 72,738 | 23.5 | % | $ | 99,456 | 24.4 | % | $ | 128,669 | 24.0 | % | ||||||||||||||||||||
Other residential | 12,572 | 6.8 | 13,129 | 5.7 | 25,593 | 8.2 | 25,551 | 6.3 | 24,250 | 4.5 | ||||||||||||||||||||||||||||||
Commercial | 27,194 | 14.7 | 25,973 | 11.2 | 29,043 | 9.4 | 32,255 | 7.9 | 54,055 | 10.1 | ||||||||||||||||||||||||||||||
Construction | 4,598 | 2.5 | 4,297 | 1.9 | 2,176 | 0.7 | 5,858 | 1.4 | 12,768 | 2.4 | ||||||||||||||||||||||||||||||
Total real estate loans | 85,824 | 46.5 | 97,701 | 42.2 | 129,550 | 41.8 | 163,120 | 40.0 | 219,742 | 41.0 | ||||||||||||||||||||||||||||||
Consumer | 2,447 | 1.3 | 3,712 | 1.6 | 5,111 | 1.6 | 7,561 | 1.8 | 10,794 | 2.0 | ||||||||||||||||||||||||||||||
Other commercial | 3,354 | 1.9 | 3,819 | 1.6 | 4,917 | 1.6 | 6,999 | 1.7 | 12,096 | 2.3 | ||||||||||||||||||||||||||||||
Total fixed-rate loans | 91,625 | 49.7 | 105,232 | 45.4 | 139,578 | 45.0 | 177,680 | 43.5 | 242,632 | 45.3 | ||||||||||||||||||||||||||||||
Adjustable-Rate Loans: | ||||||||||||||||||||||||||||||||||||||||
Real Estate Loans | ||||||||||||||||||||||||||||||||||||||||
One- to four- family | 60,693 | 32.9 | 78,130 | 33.7 | 96,803 | 31.2 | 113,861 | 27.9 | 127,430 | 23.7 | ||||||||||||||||||||||||||||||
Other residential | 824 | 0.4 | 2,372 | 1.0 | 5,012 | 1.6 | 12,936 | 3.2 | 29,664 | 5.5 | ||||||||||||||||||||||||||||||
Commercial | 7,659 | 4.2 | 15,245 | 6.6 | 27,505 | 8.9 | 47,206 | 11.6 | 65,224 | 12.1 | ||||||||||||||||||||||||||||||
Construction | 990 | 0.5 | 1,212 | 0.5 | 2,332 | 0.8 | 5,229 | 1.3 | 7,556 | 1.4 | ||||||||||||||||||||||||||||||
Total real estate loans | 70,166 | 38.0 | 96,959 | 41.8 | 131,652 | 42.5 | 179,232 | 44.0 | 229,874 | 42.7 | ||||||||||||||||||||||||||||||
Consumer | 21,153 | 11.5 | 27,433 | 11.8 | 35,316 | 11.4 | 43,005 | 10.5 | 51,493 | 9.6 | ||||||||||||||||||||||||||||||
Other commercial | 1,507 | 0.8 | 2,197 | 1.0 | 3,531 | 1.1 | 8,332 | 2.0 | 13,064 | 2.4 | ||||||||||||||||||||||||||||||
Total adjustable-rate loans | 92,826 | 50.3 | 126,589 | 54.6 | 170,499 | 55.0 | 230,569 | 56.5 | 294,431 | 54.7 | ||||||||||||||||||||||||||||||
Total Loans | 184,451 | 100.0 | % | 231,821 | 100.0 | % | 310,077 | 100.0 | % | 408,249 | 100.0 | % | 537,063 | 100.0 | % | |||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||
Loans in process | 5 | 5 | 8 | 17 | 631 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | 421 | 459 | 625 | 1,503 | 2,135 | |||||||||||||||||||||||||||||||||||
Fair value discounts | 16,800 | 22,152 | 26,918 | 45,387 | 77,897 | |||||||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 167,225 | $ | 209,205 | $ | 282,526 | $ | 361,342 | $ | 456,400 | ||||||||||||||||||||||||||||||
Less Than One Year | One to Five Years | After Five Years | Total | |||||||||||||
(In Thousands) | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||
Residential | ||||||||||||||||
One- to four- family | $ | 29,228 | $ | 72,287 | $ | 299,439 | $ | 400,954 | ||||||||
Other residential | 182,147 | 542,451 | 60,296 | 784,894 | ||||||||||||
Commercial | 296,796 | 939,802 | 148,777 | 1,385,375 | ||||||||||||
Residential construction: | ||||||||||||||||
One- to four- family | 16,709 | 6,742 | 3,232 | 26,683 | ||||||||||||
Other residential | 57,438 | 315,603 | 3,534 | 376,575 | ||||||||||||
Commercial construction | 895,660 | 175,262 | 27,498 | 1,098,420 | ||||||||||||
Total real estate loans | 1,477,978 | 2,052,147 | 542,776 | 4,072,901 | ||||||||||||
Other Loans: | ||||||||||||||||
Consumer loans: | ||||||||||||||||
Automobile and other | 29,133 | 225,344 | 56,401 | 310,878 | ||||||||||||
Home equity and improvement | 8,475 | 29,750 | 83,127 | 121,352 | ||||||||||||
Total consumer loans | 37,608 | 255,094 | 139,528 | 432,230 | ||||||||||||
Other commercial loans | 132,087 | 119,787 | 70,245 | 322,119 | ||||||||||||
Total other loans | 169,695 | 374,881 | 209,773 | 754,349 | ||||||||||||
Total loans | $ | 1,647,673 | $ | 2,427,028 | $ | 752,549 | $ | 4,827,250 |
Less Than One Year | One to Five Years | After Five Years | Total | |||||||||||||
(In Thousands) | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||
Residential | ||||||||||||||||
One- to four- family | $ | 7,260 | $ | 26,323 | $ | 68,570 | $ | 102,153 | ||||||||
Other residential | 4,814 | 7,274 | 1,308 | 13,396 | ||||||||||||
Commercial | 13,784 | 16,685 | 4,384 | 34,853 | ||||||||||||
Construction | 935 | 4,247 | 406 | 5,588 | ||||||||||||
Total real estate loans | 26,793 | 54,529 | 74,668 | 155,990 | ||||||||||||
Other Loans: | ||||||||||||||||
Consumer loans: | ||||||||||||||||
Home equity and improvement | 4,825 | 13,850 | 2,815 | 21,490 | ||||||||||||
Automobile and other | 150 | 487 | 1,473 | 2,110 | ||||||||||||
Total consumer loans | 4,975 | 14,337 | 4,288 | 23,600 | ||||||||||||
Other commercial loans | 1,507 | 3,258 | 96 | 4,861 | ||||||||||||
Total other loans | 6,482 | 17,595 | 4,384 | 28,461 | ||||||||||||
Total loans | $ | 33,275 | $ | 72,124 | $ | 79,052 | $ | 184,451 |
Collateral Type | Loan Balance | Percentage of Total Loan Portfolio | Non-Performing Loans at December 31, 2018 |
(Dollars In Thousands) | |||
Retail (Varied Projects) | $478,986 | 12.4% | $ 148 |
Health Care Facilities | $313,604 | 8.1% | $ 0 |
Office Industry | $245,967 | 6.4% | $ 0 |
Motels/Hotels | $163,376 | 4.2% | $ 0 |
Warehouses | $138,743 | 3.6% | $ 0 |
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Loans | ||||||||||||||||||||||||||||||||||||||
Past Due | Past Due | Over 90 Days | Total Past Due | Current | Receivable | |||||||||||||||||||||||||||||||||||
# | Amount | # | Amount | # | Amount | # | Amount | Amount | Amount | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||||||||||
One- to four-family residential construction | — | $ | — | — | $ | — | — | $ | — | — | $ | — | $ | 26,177 | $ | 26,177 | ||||||||||||||||||||||||
Subdivision construction | — | — | — | — | — | — | — | — | 13,844 | 13,844 | ||||||||||||||||||||||||||||||
Land development | 1 | 13 | — | — | 3 | 49 | 4 | 62 | 44,430 | 44,492 | ||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | 1,417,166 | 1,417,166 | ||||||||||||||||||||||||||||||
Owner occupied one- to four- family residential | 19 | 1,431 | 12 | 806 | 16 | 1,206 | 47 | 3,443 | 273,423 | 276,866 | ||||||||||||||||||||||||||||||
Non-owner occupied one- to four-family residential | 6 | 1,142 | 1 | 144 | 12 | 1,458 | 19 | 2,744 | 119,694 | 122,438 | ||||||||||||||||||||||||||||||
Commercial real estate | 6 | 3,940 | 1 | 53 | 7 | 334 | 14 | 4,327 | 1,367,108 | 1,371,435 | ||||||||||||||||||||||||||||||
Other residential | — | — | — | — | — | — | — | — | 784,894 | 784,894 | ||||||||||||||||||||||||||||||
Commercial business | 4 | 72 | 2 | 54 | 7 | 1,437 | 13 | 1,563 | 320,555 | 322,118 | ||||||||||||||||||||||||||||||
Industrial revenue bonds | 1 | 3 | — | — | — | — | 1 | 3 | 13,937 | 13,940 | ||||||||||||||||||||||||||||||
Consumer auto | 282 | 2,596 | 76 | 722 | 150 | 1,490 | 508 | 4,808 | 248,720 | 253,528 | ||||||||||||||||||||||||||||||
Consumer other | 45 | 691 | 23 | 181 | 19 | 240 | 87 | 1,112 | 56,238 | 57,350 | ||||||||||||||||||||||||||||||
Home equity lines of credit | 11 | 229 | — | — | 7 | 86 | 18 | 315 | 121,037 | 121,352 | ||||||||||||||||||||||||||||||
Loans acquired and accounted for under ASC 310-30, | ||||||||||||||||||||||||||||||||||||||||
net of discounts | 33 | 2,195 | 10 | 1,416 | 79 | 6,827 | 122 | 10,438 | 157,213 | 167,651 | ||||||||||||||||||||||||||||||
408 | 12,312 | 125 | 3,376 | 300 | 13,127 | 833 | 28,815 | 4,964,436 | 4,993,251 | |||||||||||||||||||||||||||||||
Less loans acquired and accounted for under ASC 310-30, | ||||||||||||||||||||||||||||||||||||||||
net of discounts | 33 | 2,195 | 10 | 1,416 | 79 | 6,827 | 122 | 10,438 | 157,213 | 167,651 | ||||||||||||||||||||||||||||||
Total | 375 | $ | 10,117 | 115 | $ | 1,960 | 221 | $ | 6,300 | 711 | $ | 18,377 | $ | 4,807,223 | $ | 4,825,600 |
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Loans | ||||||||||||||||||||||||||||||||||||||
Past Due | Past Due | Over 90 Days | Total Past Due | Current | Receivable | |||||||||||||||||||||||||||||||||||
# | Amount | # | Amount | # | Amount | # | Amount | Amount | Amount | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||||||||||
One- to four-family residential construction | 1 | $ | 250 | — | $ | — | — | $ | — | 1 | $ | 250 | $ | 20,543 | $ | 20,793 | ||||||||||||||||||||||||
Subdivision construction | — | — | — | — | 1 | 98 | 1 | 98 | 17,964 | 18,062 | ||||||||||||||||||||||||||||||
Land development | 3 | 54 | 1 | 37 | — | — | 4 | 91 | 43,880 | 43,971 | ||||||||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | 1,068,352 | 1,068,352 | ||||||||||||||||||||||||||||||
Owner occupied one- to four-family residential | 22 | 1,927 | 1 | 71 | 14 | 904 | 37 | 2,902 | 187,613 | 190,515 | ||||||||||||||||||||||||||||||
Non-owner occupied one- to four-family residential | 6 | 947 | 1 | 190 | 14 | 1,816 | 21 | 2,953 | 116,515 | 119,468 | ||||||||||||||||||||||||||||||
Commercial real estate | 9 | 8,346 | 2 | 993 | 8 | 1,226 | 19 | 10,565 | 1,224,764 | 1,235,329 | ||||||||||||||||||||||||||||||
Other residential | 2 | 540 | 1 | 353 | 1 | 1,877 | 4 | 2,770 | 742,875 | 745,645 | ||||||||||||||||||||||||||||||
Commercial business | 12 | 2,623 | 4 | 1,282 | 7 | 2,063 | 23 | 5,968 | 347,383 | 353,351 | ||||||||||||||||||||||||||||||
Industrial revenue bonds | — | — | — | — | — | — | — | — | 21,859 | 21,859 | ||||||||||||||||||||||||||||||
Consumer auto | 437 | 5,196 | 107 | 1,230 | 215 | 2,284 | 759 | 8,710 | 348,432 | 357,142 | ||||||||||||||||||||||||||||||
Consumer other | 41 | 464 | 16 | 64 | 26 | 557 | 83 | 1,085 | 62,283 | 63,368 | ||||||||||||||||||||||||||||||
Home equity lines of credit | 6 | 58 | — | — | 14 | 430 | 20 | 488 | 114,951 | 115,439 | ||||||||||||||||||||||||||||||
Loans acquired and accounted for under ASC 310-30, | ||||||||||||||||||||||||||||||||||||||||
net of discounts | 59 | 4,449 | 18 | 1,951 | 96 | 10,675 | 173 | 17,075 | 192,594 | 209,669 | ||||||||||||||||||||||||||||||
598 | 24,854 | 151 | 6,171 | 396 | 21,930 | 1,145 | 52,955 | 4,510,008 | 4,562,963 | |||||||||||||||||||||||||||||||
Less loans acquired and accounted for under ASC 310-30, | ||||||||||||||||||||||||||||||||||||||||
net of discounts | 59 | 4,449 | 18 | 1,951 | 96 | 10,675 | 173 | 17,075 | 192,594 | 209,669 | ||||||||||||||||||||||||||||||
Total | 539 | $ | 20,405 | 133 | $ | 4,220 | 300 | $ | 11,255 | 972 | $ | 35,880 | $ | 4,317,414 | $ | 4,353,294 |
December 31, 2018 | ||||||||||||||||||||||||
Asset Category | Special Mention | Substandard | Doubtful | Loss | Total Classified | Allowance for Losses | ||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Investment securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Loans | — | 9,603 | — | — | 9,603 | 2,041 | ||||||||||||||||||
Foreclosed assets and repossessions | — | 5,480 | — | — | 5,480 | — | ||||||||||||||||||
Total | $ | — | $ | 15,083 | $ | — | $ | — | $ | 15,083 | $ | 2,041 |
December 31, 2017 | ||||||||||||||||||||||||
Asset Category | Special Mention | Substandard | Doubtful | Loss | Total Classified | Allowance for Losses | ||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Investment securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Loans | — | 18,633 | 500 | — | 19,133 | 3,951 | ||||||||||||||||||
Foreclosed assets and repossessions | — | 16,575 | — | — | 16,575 | — | ||||||||||||||||||
Total | $ | — | $ | 35,208 | $ | 500 | $ | — | $ | 35,708 | $ | 3,951 |
December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Non-accruing loans: | ||||||||||||||||||||
One- to four-family residential | $ | 2,664 | $ | 2,662 | $ | 1,529 | $ | 1,060 | $ | 1,155 | ||||||||||
One- to four-family construction | 49 | 98 | 109 | — | — | |||||||||||||||
Other residential | — | 1,877 | (1) | 162 | — | — | ||||||||||||||
Commercial real estate | 334 | 1,226 | 4,404 | (2) | 13,488 | (3) | 4,512 | (4) | ||||||||||||
Other commercial | 1,437 | (5) | 2,063 | (6) | 3,088 | (7) | 288 | 411 | ||||||||||||
Commercial construction and land development | — | — | 1,718 | 139 | 255 | |||||||||||||||
Consumer | 1,816 | 3,233 | 3,071 | 1,594 | 1,038 | |||||||||||||||
Total gross non-accruing loans | 6,300 | 11,159 | 14,081 | 16,569 | 7,371 | |||||||||||||||
Loans over 90 days delinquent still accruing interest: | ||||||||||||||||||||
One- to four-family residential | — | 58 | — | — | 170 | |||||||||||||||
Commercial real estate | — | — | — | — | 187 | |||||||||||||||
Other commercial | — | — | — | — | — | |||||||||||||||
Commercial construction and land development | — | — | — | — | — | |||||||||||||||
Consumer | — | 38 | — | — | 419 | |||||||||||||||
Total loans over 90 days delinquent still accruing interest | — | 96 | — | — | 776 | |||||||||||||||
Other impaired loans | — | — | — | — | — | |||||||||||||||
Total gross non-performing loans | 6,300 | 11,255 | 14,081 | 16,569 | 8,147 | |||||||||||||||
Foreclosed assets: | ||||||||||||||||||||
One- to four-family residential | 269 | 112 | 1,217 | 1,375 | 3,353 | |||||||||||||||
One- to four-family construction | — | — | — | — | 223 | |||||||||||||||
Other residential | — | 140 | 954 | 2,150 | 2,625 | |||||||||||||||
Commercial real estate | — | 1,694 | 3,841 | 3,608 | 1,632 | |||||||||||||||
Commercial construction and land development | 4,283 | 12,642 | 17,246 | 19,149 | 27,025 | |||||||||||||||
Other commercial | — | — | — | — | 59 | |||||||||||||||
Total foreclosed assets | 4,552 | 14,588 | 23,258 | 26,282 | 34,917 | |||||||||||||||
Repossessions | 928 | 1,987 | 1,991 | 1,109 | 624 | |||||||||||||||
Total gross non-performing assets | $ | 11,780 | $ | 27,830 | $ | 39,330 | $ | 43,960 | $ | 43,688 | ||||||||||
Total gross non-performing assets as a percentage of average total assets | 0.26 | % | 0.62 | % | 0.90 | % | 1.08 | % | 1.14 | % |
(1) | One relationship was $1.9 million, the entire total of this category, at December 31, 2017. |
(2) | The largest two relationships in this category were $1.7 million and $1.7 million, respectively, at December 31, 2016. |
(3) | The largest two relationships in this category were $6.5 million and $3.7 million, respectively, at December 31, 2015. |
(4) | The largest two relationships in this category were $2.0 million and $1.9 million, respectively, at December 31, 2014. |
(5) | One relationship was $1.1 million of this total at December 31, 2018. |
(6) | One relationship was $1.5 million of this total at December 31, 2017. |
(7) | One relationship was $3.0 million of this total at December 31, 2016. |
December 31, 2018 | ||||||||||||
Restructured | Accruing | Restructured Troubled | ||||||||||
Troubled Debt | Interest | Debt Nonaccruing | ||||||||||
(In Thousands) | ||||||||||||
Commercial real estate | $ | 1,344 | $ | 1,238 | $ | 106 | ||||||
One- to four-family residential | 3,892 | 2,299 | 1,593 | |||||||||
Other residential | — | — | — | |||||||||
Construction | 283 | 283 | — | |||||||||
Commercial | 548 | 407 | 141 | |||||||||
Consumer | 803 | 428 | 375 | |||||||||
$ | 6,870 | $ | 4,655 | $ | 2,215 |
December 31, 2017 | ||||||||||||
Restructured | Accruing | Restructured Troubled | ||||||||||
Troubled Debt | Interest | Debt Nonaccruing | ||||||||||
(In Thousands) | ||||||||||||
Commercial real estate | $ | 7,085 | $ | 7,085 | $ | — | ||||||
One- to four-family residential | 3,265 | 2,602 | 663 | |||||||||
Other residential | 2,907 | 1,030 | 1,877 | |||||||||
Construction | 266 | 266 | — | |||||||||
Commercial | 867 | 867 | — | |||||||||
Consumer | 617 | 410 | 207 | |||||||||
$ | 15,007 | $ | 12,260 | $ | 2,747 |
December 31, | ||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Amount | % of Loans to Total Loans (2) | Amount | % of Loans to Total Loans (2) | Amount | % of Loans to Total Loans (2) | Amount | % of Loans to Total Loans (2) | Amount | % of Loans to Total Loans (2) | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||||||||||
One- to four-family residential and construction | $ | 3,086 | 9.1 | % | $ | 2,077 | 8.0 | % | $ | 2,198 | 9.2 | % | $ | 4,195 | 9.4 | % | $ | 3,361 | 10.2 | % | ||||||||||||||||||||
Other residential and construction | 4,681 | 16.3 | 2,813 | 17.1 | 5,396 | 16.1 | 3,122 | 12.2 | 2,923 | 13.3 | ||||||||||||||||||||||||||||||
Commercial real estate | 19,571 | 28.4 | 18,442 | 28.4 | 15,716 | 28.9 | 14,444 | 30.3 | 18,422 | 32.1 | ||||||||||||||||||||||||||||||
Commercial construction | 3,029 | 30.3 | 1,690 | 25.6 | 2,244 | 20.3 | 2,961 | 19.2 | 3,412 | 15.1 | ||||||||||||||||||||||||||||||
Other commercial | 1,556 | 7.0 | 3,509 | 8.6 | 2,976 | 9.1 | 3,977 | 11.5 | 3,628 | 13.4 | ||||||||||||||||||||||||||||||
Consumer and overdrafts | 6,065 | 8.9 | 7,501 | 12.3 | 8,245 | 16.4 | 7,947 | 17.4 | 4,553 | 15.9 | ||||||||||||||||||||||||||||||
Loans covered by loss sharing agreements (1) | — | — | — | — | 70 | — | 344 | — | 941 | — | ||||||||||||||||||||||||||||||
Acquired loans not covered by loss sharing agreements | 421 | — | 460 | — | 555 | — | 1,159 | — | 1,195 | — | ||||||||||||||||||||||||||||||
Total | $ | 38,409 | 100.0 | % | $ | 36,492 | 100.0 | % | $ | 37,400 | 100.0 | % | $ | 38,149 | 100.0 | % | $ | 38,435 | 100.0 | % | ||||||||||||||||||||
______________ (1) Associated with these allowances at December 31, 2018, 2017, 2016, 2015 and 2014, were receivables from the FDIC totaling $-0-, $-0-, $56,000, $275,000, and $753,000, respectively, under the loss sharing agreements which were in place at the time. (2) Excludes loans acquired through FDIC-assisted transactions. |
December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||
Balance at beginning of period | $ | 36,492 | $ | 37,400 | $ | 38,149 | $ | 38,435 | $ | 40,116 | ||||||||||
Charge-offs: | ||||||||||||||||||||
One- to four-family residential | 62 | 165 | 229 | 80 | 2,251 | |||||||||||||||
Other residential | 525 | 488 | 16 | 2 | 1 | |||||||||||||||
Commercial real estate | 102 | 1,656 | 5,653 | 2,584 | 2,160 | |||||||||||||||
Construction | 87 | 420 | 31 | 329 | 126 | |||||||||||||||
Other commercial | 1,155 | 1,489 | 589 | 1,202 | 3,286 | |||||||||||||||
Consumer, overdrafts and other loans | 9,425 | 11,859 | 8,751 | 5,315 | 4,005 | |||||||||||||||
Total charge-offs | 11,356 | 16,077 | 15,269 | 9,512 | 11,829 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
One- to four-family residential | 334 | 109 | 58 | 97 | 496 | |||||||||||||||
Other residential | 417 | 197 | 52 | 58 | 37 | |||||||||||||||
Commercial real estate | 172 | 123 | 1,221 | 302 | 3,139 | |||||||||||||||
Construction | 394 | 546 | 123 | 405 | 181 | |||||||||||||||
Other commercial | 755 | 580 | 327 | 276 | 105 | |||||||||||||||
Consumer, overdrafts and other loans | 4,051 | 4,514 | 3,458 | 2,569 | 2,039 | |||||||||||||||
Total recoveries | 6,123 | 6,069 | 5,239 | 3,707 | 5,997 | |||||||||||||||
Net charge-offs | 5,233 | 10,008 | 10,030 | 5,805 | 5,832 | |||||||||||||||
Provision for losses on loans | 7,150 | 9,100 | 9,281 | 5,519 | 4,151 | |||||||||||||||
Balance at end of period | $ | 38,409 | $ | 36,492 | $ | 37,400 | $ | 38,149 | $ | 38,435 | ||||||||||
Ratio of net charge-offs to average loans outstanding | 0.13 | % | 0.26 | % | 0.29 | % | 0.20 | % | 0.24 | % |
December 31, 2018 | ||||||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In Thousands) | ||||||||||||||||
AVAILABLE-FOR-SALE SECURITIES: | ||||||||||||||||
Agency mortgage-backed securities | $ | 154,557 | $ | 1,272 | $ | 2,571 | $ | 153,258 | ||||||||
Agency collateralized mortgage obligations | 39,024 | 250 | 14 | 39,260 | ||||||||||||
States and political subdivisions | 50,022 | 1,428 | — | 51,450 | ||||||||||||
$ | 243,603 | $ | 2,950 | $ | 2,585 | $ | 243,968 |
December 31, 2017 | ||||||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In Thousands) | ||||||||||||||||
AVAILABLE-FOR-SALE SECURITIES: | ||||||||||||||||
Agency mortgage-backed securities | $ | 123,300 | $ | 871 | $ | 1,638 | $ | 122,533 | ||||||||
States and political subdivisions | 53,930 | 2,716 | — | 56,646 | ||||||||||||
$ | 177,230 | $ | 3,587 | $ | 1,638 | $ | 179,179 | |||||||||
HELD-TO-MATURITY SECURITIES | ||||||||||||||||
States and political subdivisions | $ | 130 | $ | 1 | $ | — | $ | 131 | ||||||||
December 31, 2016 | ||||||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In Thousands) | ||||||||||||||||
AVAILABLE-FOR-SALE SECURITIES: | ||||||||||||||||
Agency mortgage-backed securities | $ | 146,491 | $ | 1,045 | $ | 1,501 | $ | 146,035 | ||||||||
States and political subdivisions | 64,682 | 3,163 | 8 | 67,837 | ||||||||||||
$ | 211,173 | $ | 4,208 | $ | 1,509 | $ | 213,872 | |||||||||
HELD-TO-MATURITY SECURITIES | ||||||||||||||||
States and political subdivisions | $ | 247 | $ | 11 | $ | — | $ | 258 |
Cost | Tax-Equivalent Amortized Yield | Fair Value | ||||||||||
(Dollars In Thousands) | ||||||||||||
After one through five years | $ | 849 | 5.68 | % | $ | 919 | ||||||
After five through ten years | 9,959 | 4.30 | % | 10,139 | ||||||||
After ten years | 39,214 | 4.92 | % | 40,392 | ||||||||
Securities not due on a single maturity date | 193,581 | 2.90 | % | 192,518 | ||||||||
Total | $ | 243,603 | 3.29 | % | $ | 243,968 |
One Year or Less | After One Through Five Years | After Five Through Ten Years | After Ten Years | Securities Not Due on a Single Maturity Date | Total | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Agency mortgage-backed securities | $ | — | $ | — | $ | — | $ | — | $ | 153,258 | $ | 153,258 | ||||||||||||
Agency collateralized mortgage obligations | — | — | — | — | 39,260 | 39,260 | ||||||||||||||||||
States and political subdivisions | — | 919 | 10,139 | 40,392 | — | 51,450 | ||||||||||||||||||
Total | $ | — | $ | 919 | $ | 10,139 | $ | 40,392 | $ | 192,518 | $ | 243,968 |
2018 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Agency mortgage-backed securities | $ | 11,255 | $ | (82 | ) | $ | 74,186 | $ | (2,489 | ) | $ | 85,441 | $ | (2,571 | ) | |||||||||
Agency collateralized mortgage obligations | 9,725 | (14 | ) | — | — | 9,725 | (14 | ) | ||||||||||||||||
States and political | ||||||||||||||||||||||||
subdivisions | 511 | — | — | — | 511 | — | ||||||||||||||||||
$ | 21,491 | $ | (96 | ) | $ | 74,186 | $ | (2,489 | ) | $ | 95,677 | $ | (2,585 | ) |
2017 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Agency mortgage-backed securities | $ | 33,862 | $ | (384 | ) | $ | 55,845 | $ | (1,254 | ) | $ | 89,707 | $ | (1,638 | ) | |||||||||
States and political | ||||||||||||||||||||||||
subdivisions | — | — | — | — | — | — | ||||||||||||||||||
$ | 33,862 | $ | (384 | ) | $ | 55,845 | $ | (1,254 | ) | $ | 89,707 | $ | (1,638 | ) |
2016 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Agency mortgage-backed securities | $ | 102,296 | $ | (1,501 | ) | $ | — | $ | — | $ | 102,296 | $ | (1,501 | ) | ||||||||||
States and political | ||||||||||||||||||||||||
subdivisions | 2,164 | (8 | ) | — | — | 2,164 | (8 | ) | ||||||||||||||||
$ | 104,460 | $ | (1,509 | ) | $ | — | $ | — | $ | 104,460 | $ | (1,509 | ) |
December 31, | ||||||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||||||
Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | |||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||
Time deposits: | ||||||||||||||||||||||||||||
0.00% - 0.99% | $ | 150,656 | 4.05 | % | $ | 254,502 | 7.07 | % | $ | 695,738 | 18.92 | % | ||||||||||||||||
1.00% - 1.99% | 511,873 | 13.74 | 1,006,373 | 27.98 | 737,649 | 20.06 | ||||||||||||||||||||||
2.00% - 2.99% | 857,973 | 23.03 | 106,888 | 2.97 | 48,777 | 1.33 | ||||||||||||||||||||||
3.00% - 3.99% | 69,793 | 1.87 | 701 | 0.02 | 1,119 | 0.03 | ||||||||||||||||||||||
4.00% - 4.99% | 1,116 | 0.03 | 1,108 | 0.03 | 1,171 | 0.03 | ||||||||||||||||||||||
5.00% and above | — | — | 272 | 0.01 | 272 | 0.01 | ||||||||||||||||||||||
Total time deposits | 1,591,411 | 42.72 | 1,369,844 | 38.08 | 1,484,726 | 40.38 | ||||||||||||||||||||||
Non-interest-bearing demand deposits | 661,061 | 17.75 | 661,589 | 18.39 | 653,288 | 17.76 | ||||||||||||||||||||||
Interest-bearing demand and savings deposits (0.46%-0.32%-0.26%) | 1,472,535 | 39.53 | 1,565,711 | 43.53 | 1,539,216 | 41.86 | ||||||||||||||||||||||
Total Deposits | $ | 3,725,007 | 100.00 | % | $ | 3,597,144 | 100.00 | % | $ | 3,677,230 | 100.00 | % |
Maturity | ||||||||||||||||||||
3 Months Or Less | Over 3 to 6 Months | Over 6 to 12 Months | Over 12 Months | Total | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Time deposits: | ||||||||||||||||||||
Less than $100,000 | $ | 147,599 | $ | 95,514 | $ | 157,463 | $ | 129,208 | $ | 529,784 | ||||||||||
$100,000 or more | 159,583 | 126,425 | 237,209 | 205,657 | 728,874 | |||||||||||||||
Brokered | 95,075 | 106,237 | 85,610 | 40,000 | 326,922 | |||||||||||||||
Public funds(1) | 279 | 1,986 | 2,841 | 725 | 5,831 | |||||||||||||||
Total | $ | 402,536 | $ | 330,162 | $ | 483,123 | $ | 375,590 | $ | 1,591,411 | ||||||||||
______________ (1) Deposits from governmental and other public entities. |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(Dollars In Thousands) | ||||||||||||
FHLBank Advances: | ||||||||||||
Maximum balance | $ | 259,000 | $ | 174,000 | $ | 292,538 | ||||||
Average balance | 190,245 | 93,524 | 68,325 | |||||||||
Weighted average interest rate | 2.09 | % | 1.62 | % | 1.78 | % |
December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(Dollars In Thousands) | ||||||||||||
FHLBank advances | $ | — | $ | 127,500 | $ | 31,452 | ||||||
Weighted average interest rate of FHLBank advances | — | % | 1.53 | % | 3.30 | % |
Year Ended December 31, 2018 | ||||||||||||
Maximum Balance | Average Balance | Weighted Average Interest Rate | ||||||||||
(Dollars In Thousands) | ||||||||||||
Other Borrowings: | ||||||||||||
Securities sold under reverse repurchase agreements | $ | 123,731 | $ | 104,512 | 0.03 | % | ||||||
Overnight borrowings -- FHLBank | 178,000 | 30,346 | 2.34 | |||||||||
Collateral held for interest rate swap | 13,100 | 993 | 2.24 | |||||||||
Other | 1,625 | 1,406 | — | |||||||||
Total | $ | 137,257 | 0.56 | % | ||||||||
Total maximum month-end balance | 297,978 |
Year Ended December 31, 2017 | ||||||||||||
Maximum Balance | Average Balance | Weighted Average Interest Rate | ||||||||||
(Dollars In Thousands) | ||||||||||||
Other Borrowings: | ||||||||||||
Securities sold under reverse repurchase agreements | $ | 150,703 | $ | 120,475 | 0.04 | % | ||||||
Overnight borrowings -- FHLBank | 184,000 | 64,448 | 1.09 | |||||||||
Other | 1,665 | 1,441 | — | |||||||||
Total | $ | 186,364 | 0.40 | % | ||||||||
Total maximum month-end balance | 297,357 |
Year Ended December 31, 2016 | ||||||||||||
Maximum Balance | Average Balance | Weighted Average Interest Rate | ||||||||||
(Dollars In Thousands) | ||||||||||||
Other Borrowings: | ||||||||||||
Securities sold under reverse repurchase agreements | $ | 139,044 | $ | 123,002 | 0.04 | % | ||||||
Overnight borrowings -- FHLBank | 400,200 | 203,575 | 0.54 | |||||||||
Other | 1,323 | 1,081 | — | |||||||||
Total | $ | 327,658 | 0.35 | % | ||||||||
Total maximum month-end balance | 523,078 |
December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||
Balance | Weighted Average Interest Rate | Balance | Weighted Average Interest Rate | Balance | Weighted Average Interest Rate | |||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||
Other borrowings: | ||||||||||||||||||||||||
Securities sold under reverse repurchase agreements | $ | 105,253 | 0.02 | % | $ | 80,531 | 0.05 | % | $ | 113,700 | 0.04 | % | ||||||||||||
Overnight borrowings -- FHLBank | 178,000 | 2.63 | 15,000 | 1.63 | 171,000 | 0.53 | ||||||||||||||||||
Collateral held for interest rate swap | 13,100 | 2.30 | — | — | — | — | ||||||||||||||||||
Other | 1,625 | — | 1,604 | — | 1,323 | — | ||||||||||||||||||
Total | $ | 297,978 | 1.68 | % | $ | 97,135 | 0.30 | % | $ | 286,023 | 0.33 | % |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(Dollars In Thousands) | ||||||||||||
Subordinated debentures: | ||||||||||||
Maximum balance | $ | 25,774 | $ | 25,774 | $ | 25,774 | ||||||
Average balance | 25,774 | 25,774 | 25,774 | |||||||||
Weighted average interest rate | 3.70 | % | 3.68 | % | 3.12 | % |
December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(Dollars In Thousands) | ||||||||||||
Subordinated debentures | $ | 25,774 | $ | 25,774 | $ | 25,774 | ||||||
Weighted average interest rate of subordinated debentures | 4.14 | % | 2.98 | % | 2.49 | % |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(Dollars In Thousands) | ||||||||||||
Subordinated notes: | ||||||||||||
Maximum balance | $ | 73,842 | $ | 73,688 | $ | 73,537 | ||||||
Average balance | 73,772 | 73,613 | 28,526 | |||||||||
Weighted average interest rate | 5.55 | % | 5.57 | % | 5.53 | % |
December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(Dollars In Thousands) | ||||||||||||
Subordinated notes | $ | 73,842 | $ | 73,688 | $ | 73,537 | ||||||
Weighted average interest rate of subordinated debentures | 5.55 | % | 5.57 | % | 5.45 | % |
Metropolitan Statistical Area | Number of Branch Offices | Percentage of Total Market Share | Rank | Institution with Leading Market Share Position |
Springfield, MO | 19 | 13.5% | 1 | Great Southern Bank |
Sioux City, IA-NE-SD | 6 | 5.5% | 4 | Security National Bank of Sioux City |
Davenport/Moline/Rock Island, IA-IL | 5 | 1.1% | 22 | Quad City Bank and Trust Co. |
Des Moines/West Des Moines, IA | 4 | 0.4% | 33 | Wells Fargo Bank |
St. Louis, MO-IL | 19 | 0.6% | 25 | Stifel Bank and Trust |
Kansas City, MO-KS | 8 | 0.4% | 33 | UMB Bank |
Fayetteville/Springdale/Rogers, AR-MO | 2 | 0.2% | 33 | Arvest Bank |
Minneapolis/St. Paul/Bloomington, MN-WI | 4 | 0.1% | 34 | US Bank NA |
• | Centralize responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau, with broad rulemaking authority for a wide range of consumer protection laws that apply to all banks. These laws are enforced by the Bureau for banks with more than $10 billion in assets and by the federal banking regulators for other banks. |
• | Require capital rules for bank holding companies and banks |
• | Change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated average assets less Tier 1 capital. |
• | Increase the minimum ratio of net worth to insured deposits of the Deposit Insurance Fund from 1.15% to 1.35% and require the FDIC, in setting assessments, to offset the effect of the increase on institutions with assets of less than $10 billion. |
• | Set out new disclosure and other requirements relating to executive compensation and corporate governance and a prohibition on compensation arrangements that encourage inappropriate risks or that could provide excessive compensation. |
• | Make permanent the $250 thousand limit for federal deposit insurance. |
• | Repeal the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts. |
• | Increase the authority of the FRB to examine the Company and its non-bank subsidiaries. |
• | Require all bank holding companies to serve as a source of financial strength to their depository institution subsidiaries in the event such subsidiaries suffer from financial distress. |
• | large loan balances owed by a single borrower; |
• | payments that are dependent on the successful operation of the project; and |
• | loans that are more directly impacted by adverse conditions in the real estate market or the economy generally. |
• | cash flows of the borrower and/or the project being financed; |
• | in the case of a collateralized loan, the changes and uncertainties as to the future value of the collateral; |
• | the credit history of a particular borrower; |
• | changes in economic and industry conditions; and |
• | the duration of the loan. |
• | We may be exposed to potential asset quality issues or unknown or contingent liabilities of the banks or businesses we acquire. If these issues or liabilities exceed our estimates, our earnings and financial condition may be adversely affected; |
• | Prices at which acquisitions can be made fluctuate with market conditions. We have experienced times during which acquisitions could not be made in specific markets at prices our management considered acceptable and expect that we will experience this condition in the future in one or more markets; |
• | The acquisition of other entities generally requires integration of systems, procedures and personnel of the acquired entity in order to make the transaction economically feasible. This integration process is complicated and time consuming and can also be disruptive to the customers of the acquired business. If the integration process is not conducted successfully and with minimal effect on the acquired business and its customers, we may not realize the anticipated economic benefits of particular acquisitions within the expected time frame, and we may lose customers or employees of the acquired business. We may also experience greater than anticipated customer losses even if the integration process is successful; |
• | To finance an acquisition, we may borrow funds, thereby increasing our leverage and diminishing our liquidity, or raise additional capital, which could dilute the interests of our existing stockholders; and |
• | We may not be able to continue to sustain our past rate of growth or to grow at all in the future. We completed two acquisitions in 2009, one acquisition in 2011, one acquisition in 2012, one acquisition in 2014 and opened additional banking offices and commercial loan production offices in recent years that enhanced our rate of growth. Also in 2014, we acquired certain loans, deposits and branches from Boulevard Bank. In 2016, we completed an acquisition of certain loans, deposits and branches in St. Louis from Fifth Third Bank. |
• | actual or anticipated quarterly fluctuations in our operating and financial results; |
• | developments related to investigations, proceedings or litigation that involve us; |
• | changes in financial estimates and recommendations by financial analysts; |
• | dispositions, acquisitions and financings; |
• | actions of our current stockholders, including sales of common stock by existing stockholders and our directors and executive officers; |
• | fluctuations in the stock price and operating results of our competitors; |
• | regulatory developments; and |
• | other developments related to the financial services industry. |
Total Number of Shares Purchased | Average Price Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan | Maximum Number of Shares that May Yet Be Purchased Under the Plan (1) | |||||||||||||
October 1, 2018 - October 31, 2018 | 2,500 | $ | 52.05 | 2,500 | 497,500 | |||||||||||
November 1, 2018- November 30, 2018 | — | — | — | 497,500 | ||||||||||||
December 1, 2018- December 31, 2018 | 15,042 | 51.43 | 15,042 | 482,458 | ||||||||||||
17,542 | $ | 51.52 | 17,542 |
__________________ | |
(1) | Amount represents the number of shares available to be repurchased under the April 2018 plan as of the last calendar day of the month shown. |
December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||
Summary Statement of Financial Condition Information: | ||||||||||||||||||||
Assets | $ | 4,676,200 | $ | 4,414,521 | $ | 4,550,663 | $ | 4,104,189 | $ | 3,951,334 | ||||||||||
Loans receivable, net | 3,990,651 | 3,734,505 | 3,776,411 | 3,352,797 | 3,053,427 | |||||||||||||||
Allowance for loan losses | 38,409 | 36,492 | 37,400 | 38,149 | 38,435 | |||||||||||||||
Available-for-sale securities | 243,968 | 179,179 | 213,872 | 262,856 | 365,506 | |||||||||||||||
Other real estate and repossessions, net | 8,440 | 22,002 | 32,658 | 31,893 | 45,838 | |||||||||||||||
Deposits | 3,725,007 | 3,597,144 | 3,677,230 | 3,268,626 | 2,990,840 | |||||||||||||||
Total borrowings and other interest-bearing liabilities | 397,594 | 324,097 | 416,786 | 406,797 | 514,014 | |||||||||||||||
Stockholders' equity (retained | ||||||||||||||||||||
earnings substantially restricted) | 531,977 | 471,662 | 429,806 | 398,227 | 419,745 | |||||||||||||||
Common stockholders' equity | 531,977 | 471,662 | 429,806 | 398,227 | 361,802 | |||||||||||||||
Average loans receivable | 3,910,819 | 3,814,560 | 3,659,360 | 3,235,787 | 2,784,106 | |||||||||||||||
Average total assets | 4,503,326 | 4,460,196 | 4,370,793 | 4,067,399 | 3,824,493 | |||||||||||||||
Average deposits | 3,556,240 | 3,598,579 | 3,475,887 | 3,203,262 | 3,007,588 | |||||||||||||||
Average stockholders' equity | 498,508 | 455,704 | 414,799 | 438,683 | 402,670 | |||||||||||||||
Number of deposit accounts | 227,240 | 230,456 | 231,272 | 217,139 | 217,877 | |||||||||||||||
Number of full-service offices | 99 | 104 | 104 | 110 | 108 |
For the Year Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Summary Statement of Income Information: | ||||||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 198,226 | $ | 176,654 | $ | 178,883 | $ | 177,240 | $ | 172,569 | ||||||||||
Investment securities and other | 7,723 | 6,407 | 6,292 | 7,111 | 10,793 | |||||||||||||||
205,949 | 183,061 | 185,175 | 184,351 | 183,362 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 27,957 | 20,595 | 17,387 | 13,511 | 11,225 | |||||||||||||||
Federal Home Loan Bank advances | 3,985 | 1,516 | 1,214 | 1,707 | 2,910 | |||||||||||||||
Short-term borrowings and repurchase agreements | 765 | 747 | 1,137 | 65 | 1,099 | |||||||||||||||
Subordinated debentures issued to capital trust | 953 | 949 | 803 | 714 | 567 | |||||||||||||||
Subordinated notes | 4,097 | 4,098 | 1,578 | — | — | |||||||||||||||
37,757 | 27,905 | 22,119 | 15,997 | 15,801 | ||||||||||||||||
Net interest income | 168,192 | 155,156 | 163,056 | 168,354 | 167,561 | |||||||||||||||
Provision for loan losses | 7,150 | 9,100 | 9,281 | 5,519 | 4,151 | |||||||||||||||
Net interest income after provision for loan losses | 161,042 | 146,056 | 153,775 | 162,835 | 163,410 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||
Commissions | 1,137 | 1,041 | 1,097 | 1,136 | 1,163 | |||||||||||||||
Service charges and ATM fees | 21,695 | 21,628 | 21,666 | 19,841 | 19,075 | |||||||||||||||
Net realized gains on sales of loans | 1,788 | 3,150 | 3,941 | 3,888 | 4,133 | |||||||||||||||
Net realized gains on sales of | ||||||||||||||||||||
available-for-sale securities | 2 | — | 2,873 | 2 | 2,139 | |||||||||||||||
Late charges and fees on loans | 1,622 | 2,231 | �� | 1,747 | 2,129 | 1,400 | ||||||||||||||
Gain (loss) on derivative interest rate products | 25 | 28 | 66 | (43 | ) | (345 | ) | |||||||||||||
Gain recognized on sale of business units | 7,414 | — | — | — | — | |||||||||||||||
Gain recognized on business acquisitions | — | — | — | — | 10,805 | |||||||||||||||
Gain (loss) on termination of loss sharing agreements | — | 7,705 | (584 | ) | — | — | ||||||||||||||
Amortization of income/expense related to business acquisition | — | (486 | ) | (6,351 | ) | (18,345 | ) | (27,868 | ) | |||||||||||
Other income | 2,535 | 3,230 | 4,055 | 4,973 | 4,229 | |||||||||||||||
36,218 | 38,527 | 28,510 | 13,581 | 14,731 | ||||||||||||||||
Noninterest expense: | ||||||||||||||||||||
Salaries and employee benefits | 60,215 | 60,034 | 60,377 | 58,682 | 56,032 | |||||||||||||||
Net occupancy expense | 25,628 | 24,613 | 26,077 | 25,985 | 23,541 | |||||||||||||||
Postage | 3,348 | 3,461 | 3,791 | 3,787 | 3,578 | |||||||||||||||
Insurance | 2,674 | 2,959 | 3,482 | 3,566 | 3,837 | |||||||||||||||
Advertising | 2,460 | 2,311 | 2,228 | 2,317 | 2,404 | |||||||||||||||
Office supplies and printing | 1,047 | 1,446 | 1,708 | 1,333 | 1,464 | |||||||||||||||
Telephone | 3,272 | 3,188 | 3,483 | 3,235 | 2,866 | |||||||||||||||
Legal, audit and other professional fees | 3,423 | 2,862 | 3,191 | 2,713 | 3,957 | |||||||||||||||
Expense on other real estate and repossessions | 4,919 | 3,929 | 4,111 | 2,526 | 5,636 | |||||||||||||||
Partnership tax credit investment amortization | 575 | 930 | 1,681 | 1,680 | 1,720 | |||||||||||||||
Acquired deposit intangible asset amortization | 1,562 | 1,650 | 1,910 | 1,750 | 1,519 | |||||||||||||||
Other operating expenses | 6,187 | 6,878 | 8,388 | 6,776 | 14,305 | |||||||||||||||
115,310 | 114,261 | 120,427 | 114,350 | 120,859 | ||||||||||||||||
Income before income taxes | 81,950 | 70,322 | 61,858 | 62,066 | 57,282 | |||||||||||||||
Provision for income taxes | 14,841 | 18,758 | 16,516 | 15,564 | 13,753 | |||||||||||||||
Net income | 67,109 | 51,564 | 45,342 | 46,502 | 43,529 | |||||||||||||||
Preferred stock dividends and discount accretion | — | — | — | 554 | 579 | |||||||||||||||
Net income available to common shareholders | $ | 67,109 | $ | 51,564 | $ | 45,342 | $ | 45,948 | $ | 42,950 |
At or For the Year Ended December 31, | ||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(Number of shares in thousands) | ||||||||||||||||||||
Per Common Share Data: | ||||||||||||||||||||
Basic earnings per common share | $ | 4.75 | $ | 3.67 | $ | 3.26 | $ | 3.33 | $ | 3.14 | ||||||||||
Diluted earnings per common share | 4.71 | 3.64 | 3.21 | 3.28 | 3.10 | |||||||||||||||
Cash dividends declared | 1.20 | 0.94 | 0.88 | 0.86 | 0.80 | |||||||||||||||
Book value per common share | 37.59 | 33.48 | 30.77 | 28.67 | 26.30 | |||||||||||||||
Average shares outstanding | 14,132 | 14,032 | 13,912 | 13,818 | 13,700 | |||||||||||||||
Year-end actual shares outstanding | 14,151 | 14,088 | 13,968 | 13,888 | 13,755 | |||||||||||||||
Average fully diluted shares outstanding | 14,260 | 14,180 | 14,141 | 14,000 | 13,876 | |||||||||||||||
Earnings Performance Ratios: | ||||||||||||||||||||
Return on average assets(1) | 1.49 | % | 1.16 | % | 1.04 | % | 1.14 | % | 1.14 | % | ||||||||||
Return on average stockholders' equity(2) | 13.46 | 11.32 | 10.93 | 12.13 | 12.63 | |||||||||||||||
Non-interest income to average total assets | 0.80 | 0.86 | 0.65 | 0.33 | 0.39 | |||||||||||||||
Non-interest expense to average total assets | 2.56 | 2.56 | 2.76 | 2.81 | 3.16 | |||||||||||||||
Average interest rate spread(3) | 3.75 | 3.59 | 3.93 | 4.44 | 4.74 | |||||||||||||||
Year-end interest rate spread | 3.60 | 3.67 | 3.60 | 3.80 | 3.86 | |||||||||||||||
Net interest margin(4) | 3.99 | 3.74 | 4.05 | 4.53 | 4.84 | |||||||||||||||
Efficiency ratio(5) | 56.41 | 58.99 | 62.86 | 62.85 | 66.30 | |||||||||||||||
Net overhead ratio(6) | 1.76 | 1.70 | 2.10 | 2.48 | 2.77 | |||||||||||||||
Common dividend pay-out ratio(7) | 25.48 | 25.82 | 27.41 | 26.22 | 25.81 | |||||||||||||||
Asset Quality Ratios (8): | ||||||||||||||||||||
Allowance for loan losses/year-end loans | 0.98 | % | 1.01 | % | 1.04 | % | 1.20 | % | 1.34 | % | ||||||||||
Non-performing assets/year-end loans and foreclosed assets | 0.29 | 0.73 | 1.02 | 1.28 | 1.39 | |||||||||||||||
Allowance for loan losses/non-performing loans | 609.67 | 324.23 | 265.60 | 230.24 | 471.77 | |||||||||||||||
Net charge-offs/average loans | 0.13 | 0.26 | 0.29 | 0.20 | 0.24 | |||||||||||||||
Gross non-performing assets/year end assets | 0.25 | 0.63 | 0.86 | 1.07 | 1.11 | |||||||||||||||
Non-performing loans/year-end loans | 0.16 | 0.30 | 0.37 | 0.49 | 0.26 | |||||||||||||||
Balance Sheet Ratios: | ||||||||||||||||||||
Loans to deposits | 106.76 | % | 103.82 | % | 102.70 | % | 102.58 | % | 102.09 | % | ||||||||||
Average interest-earning assets as a percentage of average interest-bearing liabilities | 126.47 | 123.74 | 121.33 | 121.60 | 120.95 | |||||||||||||||
Capital Ratios: | ||||||||||||||||||||
Average common stockholders' equity to average assets | 11.1 | % | 10.2 | % | 9.5 | % | 9.4 | % | 9.0 | % | ||||||||||
Year-end tangible common stockholders' equity to tangible assets(9) | 11.2 | 10.5 | 9.2 | 9.6 | 9.0 | |||||||||||||||
Great Southern Bancorp, Inc.: | ||||||||||||||||||||
Tier 1 capital ratio | 11.9 | 11.4 | 10.8 | 11.5 | 13.3 | |||||||||||||||
Total capital ratio | 14.4 | 14.1 | 13.6 | 12.6 | 14.5 | |||||||||||||||
Tier 1 leverage ratio | 11.7 | 10.9 | 9.9 | 10.2 | 11.1 | |||||||||||||||
Common equity Tier 1 ratio | 11.4 | 10.9 | 10.2 | 10.8 | — | |||||||||||||||
Great Southern Bank: | ||||||||||||||||||||
Tier 1 capital ratio | 12.4 | 12.3 | 11.8 | 11.0 | 11.4 | |||||||||||||||
Total capital ratio | 13.3 | 13.2 | 12.7 | 12.1 | 12.6 | |||||||||||||||
Tier 1 leverage ratio | 12.2 | 11.7 | 10.8 | 9.8 | 9.5 | |||||||||||||||
Common equity Tier 1 ratio | 12.4 | 12.3 | 11.8 | 11.0 | — |
____________________ | ||
(1) | Net income divided by average total assets. | |
(2) | Net income divided by average stockholders' equity. | |
(3) | Yield on average interest-earning assets less rate on average interest-bearing liabilities. | |
(4) | Net interest income divided by average interest-earning assets. | |
(5) | Non-interest expense divided by the sum of net interest income plus non-interest income. | |
(6) | Non-interest expense less non-interest income divided by average total assets. | |
(7) | Cash dividends per common share divided by earnings per common share. | |
(8) | Excludes FDIC-acquired assets. | |
(9) | Non-GAAP Financial Measure. For additional information, including a reconciliation to GAAP, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures.” |
Beginning Balance, January 1 | Additions to Non- Performing | Removed from Non- Performing | Transfers to Potential Problem Loans | Transfers to Foreclosed Assets and Repossessions | Charge-Offs | Payments | Ending Balance, December 31 | |||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Subdivision construction | 98 | — | — | — | — | (3 | ) | (95 | ) | — | ||||||||||||||||||||||
Land development | — | 49 | — | — | — | — | — | 49 | ||||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
One- to four-family residential | 2,728 | 975 | (81 | ) | (67 | ) | (467 | ) | (30 | ) | (394 | ) | 2,664 | |||||||||||||||||||
Other residential | 1,877 | 3 | — | — | (1,601 | ) | (279 | ) | — | — | ||||||||||||||||||||||
Commercial real estate | 1,226 | 157 | — | — | (894 | ) | (101 | ) | (54 | ) | 334 | |||||||||||||||||||||
Other commercial | 2,063 | 2,321 | — | — | — | (1,024 | ) | (1,923 | ) | 1,437 | ||||||||||||||||||||||
Consumer | 3,263 | 2,725 | (7 | ) | (461 | ) | (790 | ) | (1,884 | ) | (1,030 | ) | 1,816 | |||||||||||||||||||
Total | $ | 11,255 | $ | 6,230 | $ | (88 | ) | $ | (528 | ) | $ | (3,752 | ) | $ | (3,321 | ) | $ | (3,496 | ) | $ | 6,300 |
Beginning Balance, January 1 | Additions | ORE and Repossession Sales | Capitalized Costs | ORE and Repossession Write-Downs | Ending Balance, December 31 | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Subdivision construction | 5,413 | — | (2,402 | ) | — | (1,919 | ) | 1,092 | ||||||||||||||||
Land development | 7,729 | 20 | (2,837 | ) | — | (1,721 | ) | 3,191 | ||||||||||||||||
Commercial construction | — | — | — | — | — | — | ||||||||||||||||||
One- to four-family residential | 112 | 820 | (663 | ) | — | — | 269 | |||||||||||||||||
Other residential | 140 | 1,601 | (1,884 | ) | 143 | — | — | |||||||||||||||||
Commercial real estate | 1,194 | 894 | (1,932 | ) | 10 | (166 | ) | — | ||||||||||||||||
Commercial business | — | — | — | — | — | — | ||||||||||||||||||
Consumer | 1,987 | 7,711 | (8,770 | ) | — | — | 928 | |||||||||||||||||
Total | $ | 16,575 | $ | 11,046 | $ | (18,488 | ) | $ | 153 | $ | (3,806 | ) | $ | 5,480 |
Beginning Balance, January 1 | Additions to Potential Problem | Removed from Potential Problem | Transfers to Non- Performing | Transfers to Foreclosed Assets and Repossessions | Charge-Offs | Payments | Ending Balance, December 31 | |||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Subdivision construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Land development | 4 | — | (3 | ) | — | — | — | (1 | ) | — | ||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
One- to four-family residential | 1,122 | 122 | — | — | — | — | (200 | ) | 1,044 | |||||||||||||||||||||||
Other residential | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate | 5,759 | 2,180 | (4,709 | ) | — | — | — | (1,177 | ) | 2,053 | ||||||||||||||||||||||
Other commercial | 503 | — | (59 | ) | (407 | ) | — | — | (37 | ) | — | |||||||||||||||||||||
Consumer | 549 | 455 | (497 | ) | (82 | ) | — | (30 | ) | (189 | ) | 206 | ||||||||||||||||||||
Total | $ | 7,937 | $ | 2,757 | $ | (5,268 | ) | $ | (489 | ) | $ | — | $ | (30 | ) | $ | (1,604 | ) | $ | 3,303 |
Dec. 31, 2018(2) | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||
Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||||||||||||||||||||||
One- to four-family residential | 4.23 | % | $ | 449,917 | $ | 22,924 | 5.10 | % | $ | 459,227 | $ | 22,102 | 4.81 | % | $ | 538,776 | $ | 28,674 | 5.32 | % | ||||||||||||||||||||
Other residential | 5.13 | 761,115 | 38,863 | 5.11 | 706,217 | 31,970 | 4.53 | 535,793 | 25,052 | 4.68 | ||||||||||||||||||||||||||||||
Commercial real estate | 4.91 | 1,325,398 | 64,605 | 4.87 | 1,240,017 | 54,911 | 4.43 | 1,146,983 | 53,516 | 4.67 | ||||||||||||||||||||||||||||||
Construction | 5.35 | 569,570 | 31,198 | 5.48 | 454,907 | 21,099 | 4.64 | 394,051 | 18,059 | 4.58 | ||||||||||||||||||||||||||||||
Commercial business | 5.22 | 285,125 | 14,104 | 4.95 | 295,379 | 14,666 | 4.97 | 316,526 | 17,389 | 5.49 | ||||||||||||||||||||||||||||||
Other loans | 6.01 | 499,131 | 25,250 | 5.06 | 632,968 | 30,356 | 4.80 | 693,550 | 34,176 | 4.93 | ||||||||||||||||||||||||||||||
Industrial revenue bonds (1) | 4.82 | 20,563 | 1,282 | 6.23 | 25,845 | 1,550 | 6.00 | 33,681 | 2,017 | 5.99 | ||||||||||||||||||||||||||||||
Total loans receivable | 5.16 | 3,910,819 | 198,226 | 5.07 | 3,814,560 | 176,654 | 4.63 | 3,659,360 | 178,883 | 4.89 | ||||||||||||||||||||||||||||||
Investment securities (1) | 3.36 | 201,330 | 5,835 | 2.90 | 207,803 | 5,195 | 2.50 | 249,484 | 5,741 | 2.30 | ||||||||||||||||||||||||||||||
Other interest-earning assets | 2.50 | 104,220 | 1,888 | 1.81 | 121,604 | 1,212 | 1.00 | 116,812 | 551 | 0.47 | ||||||||||||||||||||||||||||||
Total interest-earning assets | 5.00 | 4,216,369 | 205,949 | 4.88 | 4,143,967 | 183,061 | 4.42 | 4,025,656 | 185,175 | 4.60 | ||||||||||||||||||||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 97,796 | 103,505 | 108,593 | |||||||||||||||||||||||||||||||||||||
Other non-earning assets | 189,161 | 212,724 | 236,544 | |||||||||||||||||||||||||||||||||||||
Total assets | $ | 4,503,326 | $ | 4,460,196 | $ | 4,370,793 | ||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand and savings | 0.46 | $ | 1,531,375 | 5,982 | 0.39 | $ | 1,555,375 | 4,698 | 0.30 | $ | 1,496,837 | 3,888 | 0.26 | |||||||||||||||||||||||||||
Time deposits | 1.98 | 1,375,508 | 21,975 | 1.60 | 1,414,189 | 15,897 | 1.12 | 1,370,935 | 13,499 | 0.98 | ||||||||||||||||||||||||||||||
Total deposits | 1.25 | 2,906,883 | 27,957 | 0.96 | 2,969,564 | 20,595 | 0.69 | 2,867,772 | 17,387 | 0.61 | ||||||||||||||||||||||||||||||
Short-term borrowings, repurchase agreements and other interest-bearing liabilities | 1.68 | 137,257 | 765 | 0.56 | 186,364 | 747 | 0.40 | 327,658 | 1,137 | 0.35 | ||||||||||||||||||||||||||||||
Subordinated debentures issued to capital trust | 4.14 | 25,774 | 953 | 3.70 | 25,774 | 949 | 3.68 | 25,774 | 803 | 3.12 | ||||||||||||||||||||||||||||||
Subordinated notes | 5.55 | 73,772 | 4,097 | 5.55 | 73,613 | 4,098 | 5.57 | 28,526 | 1,578 | 5.53 | ||||||||||||||||||||||||||||||
FHLB advances | 0.00 | 190,245 | 3,985 | 2.09 | 93,524 | 1,516 | 1.62 | 68,325 | 1,214 | 1.78 | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1.40 | 3,333,931 | 37,757 | 1.13 | 3,348,839 | 27,905 | 0.83 | 3,318,055 | 22,119 | 0.67 | ||||||||||||||||||||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||
Demand deposits | 649,357 | 629,015 | 608,115 | |||||||||||||||||||||||||||||||||||||
Other liabilities | 21,530 | 26,638 | 29,824 | |||||||||||||||||||||||||||||||||||||
Total liabilities | 4,004,818 | 4,004,492 | 3,955,994 | |||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 498,508 | 455,704 | 414,799 | |||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,503,326 | $ | 4,460,196 | $ | 4,370,793 | ||||||||||||||||||||||||||||||||||
Net interest income: | ||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 3.60 | % | $ | 168,192 | 3.75 | % | $ | 155,156 | 3.59 | % | $ | 163,056 | 3.93 | % | ||||||||||||||||||||||||||
Net interest margin* | 3.99 | % | 3.74 | % | 4.05 | % | ||||||||||||||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 126.5 | % | 123.7 | % | 121.3 | % |
* | Defined as the Company's net interest income divided by total interest-earning assets. | |
(1) | Of the total average balances of investment securities, average tax-exempt investment securities were $53.6 million, $61.5 million and $72.0 million for 2018, 2017 and 2016, respectively. In addition, average tax-exempt industrial revenue bonds were $24.76 million, $28.6 million and $32.0 million in 2018, 2017 and 2016, respectively. Interest income on tax-exempt assets included in this table was $3.1 million, $3.3 million and $3.8 million for 2018, 2017 and 2016, respectively. Interest income net of disallowed interest expense related to tax-exempt assets was $2.9 million, $3.1 million and $3.7 million for 2018, 2017 and 2016, respectively. | |
(2) | The yield/rate on loans at December 31, 2018 does not include the impact of the accretable yield (income) on loans acquired in the FDIC-assisted transactions. See “Net Interest Income” for a discussion of the effect on 2018 results of operations. |
Year Ended December 31, 2018 vs. December 31, 2017 | Year Ended December 31, 2017 vs. December 31, 2016 | |||||||||||||||||||||||
Increase (Decrease) Due to | Total Increase (Decrease) | Increase (Decrease) Due to | Total Increase (Decrease) | |||||||||||||||||||||
Rate | Volume | Rate | Volume | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans receivable | $ | 17,025 | $ | 4,547 | $ | 21,572 | $ | (9,638 | ) | $ | 7,409 | $ | (2,229 | ) | ||||||||||
Investment securities | 796 | (156 | ) | 640 | 468 | (1,014 | ) | (546 | ) | |||||||||||||||
Other interest-earning assets | 819 | (143 | ) | 676 | 638 | 23 | 661 | |||||||||||||||||
Total interest-earning assets | 18,640 | 4,248 | 22,888 | (8,532 | ) | 6,418 | (2,114 | ) | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Demand deposits | 1,355 | (71 | ) | 1,284 | 653 | 157 | 810 | |||||||||||||||||
Time deposits | 6,500 | (422 | ) | 6,078 | 1,961 | 437 | 2,398 | |||||||||||||||||
Total deposits | 7,855 | (493 | ) | 7,362 | 2,614 | 594 | 3,208 | |||||||||||||||||
Short-term borrowings and repurchase agreements | 55 | (37 | ) | 18 | 156 | (546 | ) | (390 | ) | |||||||||||||||
Subordinated debentures issued to capital trust | 4 | — | 4 | 146 | — | 146 | ||||||||||||||||||
Subordinated notes | (1 | ) | — | (1 | ) | 216 | 2,304 | 2,520 | ||||||||||||||||
FHLBank advances | 544 | 1,925 | 2,469 | (114 | ) | 416 | 302 | |||||||||||||||||
Total interest-bearing liabilities | 8,457 | 1,395 | 9,852 | 3,018 | 2,768 | 5,786 | ||||||||||||||||||
Net interest income | $ | 10,183 | $ | 2,853 | $ | 13,036 | $ | (11,550 | ) | $ | 3,650 | $ | (7,900 | ) |
Interest Expense - Deposits
Interest on demand deposits increased $653,000 due to an increase in average rates from 0.26% during the year ended December 31, 2016, to 0.30% during the year ended December 31, 2017. Interest on demand deposits increased $157,000 due to an increase in average balances from $1.50 billion in the year ended December 31, 2016, to $1.56 billion in the year ended December 31, 2017. The increase in average balances of interest-bearing demand deposits was primarily a result of increased balances in money market accounts. Market interest rates on these types of accounts have increased since December 2016.
Interest expense on short-term borrowings and repurchase agreements decreased $546,000 due to a decrease in average balances from $327.7 million during the year ended December 31, 2016, to $186.4 million during the year ended December 31, 2017, which is primarily due to changes in the Company’s funding needs and the mix of funding, which can fluctuate. The Company had a much higher amount of overnight borrowings from the FHLBank in 2016. Partially offsetting that decrease was an increase in interest expense on short-term borrowings and repurchase agreements of $156,000 due to average rates that increased from 0.35% in the year ended December 31, 2016, to 0.40% in the year ended December 31, 2017. The increase was due to increases in market interest rates and a change in the mix of funding during the period, with a lower percentage of the total made up of customer repurchase agreements, which have a lower interest rate.
Beginning Balance, January 1 | Additions | Removed from Non- Performing | Transfers to Potential Problem Loans | Transfers to Foreclosed Assets | Charge-Offs | Payments | Ending Balance, December 31 | |||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
One- to four-family construction | $ | — | $ | 381 | $ | — | $ | — | $ | — | $ | — | $ | (381 | ) | $ | — | |||||||||||||||
Subdivision construction | 109 | — | — | — | — | — | (11 | ) | 98 | |||||||||||||||||||||||
Land development | 1,718 | 4,060 | — | — | (185 | ) | (125 | ) | (5,468 | ) | — | |||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
One- to four-family residential | 1,825 | 2,487 | (36 | ) | (840 | ) | (242 | ) | (37 | ) | (437 | ) | 2,720 | |||||||||||||||||||
Other residential | 162 | 2,442 | (77 | ) | — | (161 | ) | (488 | ) | (1 | ) | 1,877 | ||||||||||||||||||||
Commercial real estate | 2,727 | 2,550 | (394 | ) | (347 | ) | (1,060 | ) | (1,649 | ) | (601 | ) | 1,226 | |||||||||||||||||||
Other commercial | 4,765 | 1,256 | — | — | (2,883 | ) | (829 | ) | (246 | ) | 2,063 | |||||||||||||||||||||
Consumer | 2,775 | 5,923 | (217 | ) | (329 | ) | (1,081 | ) | (2,075 | ) | (1,725 | ) | 3,271 | |||||||||||||||||||
Total | $ | 14,081 | $ | 19,099 | $ | (724 | ) | $ | (1,516 | ) | $ | (5,612 | ) | $ | (5,203 | ) | $ | (8,870 | ) | $ | 11,255 |
loan. The non-performing consumer category included 255 loans, 204 of which were added during 2017, and the majority of which are indirect used automobile loans. Compared to previous years, in 2016 and 2017 the Company experienced increased levels of delinquencies and repossessions in consumer loans, primarily indirect used automobile loans. The non-performing land development category was zero at December 31, 2017. During the year, one loan, which is the same relationship as one of the loans discussed in the commercial real estate category, and was collateralized by land in the Branson, Mo. area had charge-offs of $92,000 and received payments of $3.8 million, which paid off the remaining balance of that loan. Also during 2017, one loan in this category received payments of $1.6 million, which paid off the remaining balance of that loan.
Beginning Balance, January 1 | Additions | Proceeds from Sales | Capitalized Costs | ORE Expense Write-Downs | Ending Balance, December 31 | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Subdivision construction | 6,360 | 350 | (1,297 | ) | — | — | 5,413 | |||||||||||||||||
Land development | 10,886 | — | (2,431 | ) | — | (1,226 | ) | 7,229 | ||||||||||||||||
Commercial construction | — | — | — | — | — | — | ||||||||||||||||||
One- to four-family residential | 1,217 | 374 | (1,470 | ) | — | (9 | ) | 112 | ||||||||||||||||
Other residential | 954 | 161 | (1,071 | ) | 117 | (21 | ) | 140 | ||||||||||||||||
Commercial real estate | 3,841 | 896 | (2,843 | ) | — | (200 | ) | 1,694 | ||||||||||||||||
Commercial business | — | 2,876 | (2,876 | ) | — | — | — | |||||||||||||||||
Consumer | 1,991 | 15,728 | (15,732 | ) | — | — | 1,987 | |||||||||||||||||
Total | $ | 25,249 | $ | 20,385 | $ | (27,720 | ) | $ | 117 | $ | (1,456 | ) | $ | 16,575 |
Beginning Balance, January 1 | Additions | Removed from Potential Problem | Transfers to Non- Performing | Transfers to Foreclosed Assets | Charge-Offs | Payments | Ending Balance, December 31 | |||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||
One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Subdivision construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Land development | 4,135 | 139 | — | (3,980 | ) | — | — | (290 | ) | 4 | ||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
One- to four-family residential | 439 | 1,102 | — | (131 | ) | (89 | ) | (72 | ) | (127 | ) | 1,122 | ||||||||||||||||||||
Other residential | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Commercial real estate | 2,062 | 6,569 | (1,029 | ) | (803 | ) | — | — | (1,040 | ) | 5,759 | |||||||||||||||||||||
Other commercial | 204 | 1,387 | — | (970 | ) | — | — | (118 | ) | 503 | ||||||||||||||||||||||
Consumer | 122 | 561 | (10 | ) | (28 | ) | — | — | (96 | ) | 549 | |||||||||||||||||||||
Total | $ | 6,962 | $ | 9,758 | $ | (1,039 | ) | $ | (5,912 | ) | $ | (89 | ) | $ | (72 | ) | $ | (1,671 | ) | $ | 7,937 |
Payments Due In: | ||||||||||||||||
One Year or Less | Over One to Five Years | Over Five Years | Total | |||||||||||||
(In Thousands) | ||||||||||||||||
Deposits without a stated maturity | $ | 2,133,596 | $ | — | $ | — | $ | 2,133,596 | ||||||||
Time and brokered certificates of deposit | 1,215,822 | 374,145 | 1,444 | 1,591,411 | ||||||||||||
Federal Home Loan Bank advances | — | — | — | — | ||||||||||||
Short-term borrowings | 297,978 | — | — | 297,978 | ||||||||||||
Subordinated debentures | — | — | 25,774 | 25,774 | ||||||||||||
Subordinated notes | — | — | 73,842 | 73,842 | ||||||||||||
Operating leases | 958 | 2,483 | 837 | 4,278 | ||||||||||||
Dividends declared but not paid | 4,528 | — | — | 4,528 | ||||||||||||
$ | 3,652,882 | $ | 376,628 | $ | 101,897 | $ | 4,131,407 |
December 31, 2018 | December 31, 2017 | ||
Federal Home Loan Bank line | $666.8 million | $570.5 million | |
Federal Reserve Bank line | 460.7 million | 528.9 million | |
Interest-Bearing and Non-Interest-Bearing Deposits | 202.7 million | 242.3 million | |
Unpledged Securities | 87.1 million | 46.4 million |
December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Common equity at period end | $ | 531,977 | $ | 471,662 | $ | 429,806 | $ | 398,227 | $ | 361,802 | ||||||||||
Less: Intangible assets at period end | 9,288 | 10,850 | 12,500 | 5,758 | 7,508 | |||||||||||||||
Tangible common equity at period end (a) | $ | 522,689 | $ | 460,812 | $ | 417,306 | $ | 392,469 | $ | 354,294 | ||||||||||
Total assets at period end | $ | 4,676,200 | $ | 4,414,521 | $ | 4,550,663 | $ | 4,104,189 | $ | 3,951,334 | ||||||||||
Less: Intangible assets at period end | 9,288 | 10,850 | 12,500 | 5,758 | 7,508 | |||||||||||||||
Tangible assets at period end (b) | $ | 4,666,912 | $ | 4,403,671 | $ | 4,538,163 | $ | 4,098,431 | $ | 3,943,826 | ||||||||||
Tangible common equity to tangible assets (a) / (b) | 11.20 | % | 10.46 | % | 9.20 | % | 9.58 | % | 8.98 | % |
December 31, | December 31, | |||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | 2018 Fair Value | |||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Interest bearing deposits | $ | 92,634 | — | — | — | — | — | $ | 92,634 | $ | 92,634 | |||||||||||||||||||||
Weighted average rate | 2.50 | % | — | — | — | — | — | 2.50 | % | |||||||||||||||||||||||
Available-for-sale debt securities(1) | $ | 15,847 | $ | 17,571 | $ | 6,012 | $ | 1,710 | $ | 13,227 | $ | 189,601 | $ | 243,968 | $ | 243,968 | ||||||||||||||||
Weighted average rate | 4.96 | % | 5.12 | % | 4.86 | % | 5.50 | % | 3.09 | % | 2.94 | % | 3.29 | % | ||||||||||||||||||
Adjustable rate loans | $ | 443,238 | $ | 330,228 | $ | 467,422 | $ | 299,033 | $ | 218,671 | $ | 497,982 | $ | 2,256,574 | $ | 2,189,440 | ||||||||||||||||
Weighted average rate | 5.44 | % | 5.52 | % | 5.29 | % | 5.37 | % | 5.31 | % | 4.15 | % | 5.12 | % | ||||||||||||||||||
Fixed rate loans | $ | 279,268 | $ | 307,867 | $ | 375,550 | $ | 251,209 | $ | 249,104 | $ | 333,688 | $ | 1,796,686 | $ | 1,766,346 | ||||||||||||||||
Weighted average rate | 4.45 | % | 4.72 | % | 5.06 | % | 5.73 | % | 5.48 | % | 5.31 | % | 5.11 | % | ||||||||||||||||||
Federal Home Loan Bank stock | — | — | — | — | — | $ | 12,438 | $ | 12,438 | $ | 12,438 | |||||||||||||||||||||
Weighted average rate | — | — | — | — | — | 4.68 | % | 4.68 | % | |||||||||||||||||||||||
Total financial assets | $ | 830,987 | $ | 655,666 | $ | 848,984 | $ | 551,952 | $ | 481,002 | $ | 1,033,709 | $ | 4,402,300 | ||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Time deposits | $ | 1, 215,822 | $ | 259,704 | $ | 73,724 | $ | 26,012 | $ | 14,705 | $ | 1,444 | $ | 1,591,411 | $ | 1,584,303 | ||||||||||||||||
Weighted average rate | 1.92 | % | 2.22 | % | 2.20 | % | 1.95 | % | 2.18 | % | 1.77 | % | 1.98 | % | ||||||||||||||||||
Interest-bearing demand | $ | 1,472,535 | — | — | — | — | — | $ | 1,472,535 | $ | 1,472,535 | |||||||||||||||||||||
Weighted average rate | 0.46 | % | — | — | — | — | — | 0.46 | % | |||||||||||||||||||||||
Non-interest-bearing demand | $ | 661,061 | — | — | — | — | — | $ | 661,061 | $ | 661,061 | |||||||||||||||||||||
Weighted average rate | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Short-term borrowings | $ | 297,978 | — | — | — | — | — | $ | 297,978 | $ | 297,978 | |||||||||||||||||||||
Weighted average rate | 1.68 | % | — | — | — | — | — | 1.68 | % | |||||||||||||||||||||||
Subordinated notes | — | — | — | — | — | $ | 75,000 | $ | 75,000 | $ | 75,188 | |||||||||||||||||||||
Weighted average rate | — | — | — | — | — | 5.55 | % | 5.55 | % | |||||||||||||||||||||||
Subordinated debentures | — | — | — | — | — | $ | 25,774 | $ | 25,774 | $ | 25,774 | |||||||||||||||||||||
Weighted average rate | — | — | — | — | — | 4.14 | % | 4.14 | % | |||||||||||||||||||||||
Total financial liabilities | $ | 3,647,396 | $ | 259,704 | $ | 73,724 | $ | 26,012 | $ | 14,705 | $ | 102,218 | $ | 4,123,759 |
_______________ | |
(1) | Available-for-sale debt securities include approximately $192.5 million of mortgage-backed securities which pay interest and principal monthly to the Company. Of this total, $84.0 million represents securities that have variable rates of interest after a fixed interest period. These securities will experience rate changes at varying times over the next ten years. This table does not show the effect of these monthly repayments of principal or rate changes. |
December 31, | December 31, | |||||||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | 2018 Fair Value | |||||||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Interest bearing deposits | $ | 92,634 | — | — | — | — | — | $ | 92,634 | $ | 92,634 | |||||||||||||||||||||
Weighted average rate | 2.50 | % | — | — | — | — | — | 2.50 | % | |||||||||||||||||||||||
Available-for-sale debt securities(1) | $ | 43,202 | $ | 17,571 | $ | 12,757 | $ | 24,406 | $ | 36,022 | $ | 110,010 | $ | 243,968 | $ | 243,968 | ||||||||||||||||
Weighted average rate | 3.68 | % | 5.12 | % | 3.35 | % | 2.47 | % | 2.43 | % | 3.33 | % | 3.29 | % | ||||||||||||||||||
Adjustable rate loans | $ | 1,983,704 | $ | 87,167 | $ | 43,032 | $ | 11,740 | $ | 32,874 | $ | 98,057 | $ | 2,256,574 | $ | 2,189,440 | ||||||||||||||||
Weighted average rate | 5.28 | % | 3.80 | % | 4.03 | % | 3.70 | % | 4.41 | % | 3.95 | % | 5.12 | % | ||||||||||||||||||
Fixed rate loans | $ | 279,268 | $ | 307,867 | $ | 375,550 | $ | 251,209 | $ | 249,104 | $ | 333,688 | $ | 1,796,686 | $ | 1,766,346 | ||||||||||||||||
Weighted average rate | 4.45 | % | 4.72 | % | 5.06 | % | 5.73 | % | 5.48 | % | 5.31 | % | 5.11 | % | ||||||||||||||||||
Federal Home Loan Bank stock | $ | 12,438 | — | — | — | — | — | $ | 12,438 | $ | 12,438 | |||||||||||||||||||||
Weighted average rate | 4.68 | % | — | — | — | — | — | 4.68 | % | |||||||||||||||||||||||
Total financial assets | $ | 2,411,246 | $ | 412,605 | $ | 431,339 | $ | 287,355 | $ | 318,000 | $ | 541,755 | $ | 4,402,300 | ||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Time deposits | $ | 1,215,822 | $ | 259,704 | $ | 73,724 | $ | 26,012 | $ | 14,705 | $ | 1,444 | $ | 1,591,411 | $ | 1,584,303 | ||||||||||||||||
Weighted average rate | 1.92 | % | 2.22 | % | 2.20 | % | 1.93 | % | 2.18 | % | 1.77 | % | 1.98 | % | ||||||||||||||||||
Interest-bearing demand | $ | 1,472,535 | — | — | — | — | — | $ | 1,472,535 | $ | 1,472,535 | |||||||||||||||||||||
Weighted average rate | 0.46 | % | — | — | — | — | — | 0.46 | % | |||||||||||||||||||||||
Non-interest-bearing demand(2) | — | — | — | — | — | $ | 661,061 | $ | 661,061 | $ | 661,061 | |||||||||||||||||||||
Weighted average rate | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Short-term borrowings | $ | 297,978 | — | — | — | — | — | $ | 297,978 | $ | 297,978 | |||||||||||||||||||||
Weighted average rate | 1.68 | % | — | — | — | — | — | 1.68 | % | |||||||||||||||||||||||
Subordinated notes | — | — | — | — | — | $ | 75,000 | $ | 75,000 | $ | 75,188 | |||||||||||||||||||||
Weighted average rate | — | — | — | — | — | 5.55 | % | 5.55 | % | |||||||||||||||||||||||
Subordinated debentures | $ | 25,774 | — | — | — | — | — | $ | 25,774 | $ | 25,774 | |||||||||||||||||||||
Weighted average rate | 4.14 | % | — | — | — | — | — | 4.14 | % | |||||||||||||||||||||||
Total financial liabilities | $ | 3,012,109 | $ | 259,704 | $ | 73,724 | $ | 26,012 | $ | 14,705 | $ | 737,505 | $ | 4,123,759 | ||||||||||||||||||
Periodic repricing GAP | $ | (600,863 | ) | $ | 152,901 | $ | 357,615 | $ | 261,343 | $ | 303,295 | $ | (195,750 | ) | $ | 278,541 | ||||||||||||||||
Cumulative repricing GAP | $ | (600,863 | ) | $ | (447,962 | ) | $ | (90,347 | ) | $ | 170,996 | $ | 474,291 | $ | 278,541 |
_______________ | |
(1) | Available-for-sale debt securities include approximately $192.5 million of mortgage-backed securities which pay interest and principal monthly to the Company. Of this total, $84.0 million represents securities that have variable rates of interest after a fixed interest period. These securities will experience rate changes at varying times over the next ten years. This table does not show the effect of these monthly repayments of principal or rate changes. |
(2) | Non-interest-bearing demand is included in this table in the column labeled "Thereafter" since there is no interest rate related to these liabilities and therefore there is nothing to reprice. |
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
2018 | 2017 | |||||||
Assets | ||||||||
Cash | $ | 110,108 | $ | 115,600 | ||||
Interest-bearing deposits in other financial institutions | 92,634 | 126,653 | ||||||
Cash and cash equivalents | 202,742 | 242,253 | ||||||
Available-for-sale securities | 243,968 | 179,179 | ||||||
Held-to-maturity securities | — | 130 | ||||||
Mortgage loans held for sale | 1,650 | 8,203 | ||||||
Loans receivable, net of allowance for loan losses of $38,409 and $36,492 at December 31, 2018 and 2017, respectively | 3,989,001 | 3,726,302 | ||||||
Interest receivable | 13,448 | 12,338 | ||||||
Prepaid expenses and other assets | 55,336 | 47,122 | ||||||
Other real estate owned and repossessions, net | 8,440 | 22,002 | ||||||
Premises and equipment, net | 132,424 | 138,018 | ||||||
Goodwill and other intangible assets | 9,288 | 10,850 | ||||||
Federal Home Loan Bank stock | 12,438 | 11,182 | ||||||
Current and deferred income taxes | 7,465 | 16,942 | ||||||
Total assets | $ | 4,676,200 | $ | 4,414,521 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities | ||||||||
Deposits | $ | 3,725,007 | $ | 3,597,144 | ||||
Federal Home Loan Bank advances | — | 127,500 | ||||||
Securities sold under reverse repurchase agreements with customers | 105,253 | 80,531 | ||||||
Short-term borrowings and other interest-bearing liabilities | 192,725 | 16,604 | ||||||
Subordinated debentures issued to capital trust | 25,774 | 25,774 | ||||||
Subordinated notes | 73,842 | 73,688 | ||||||
Accrued interest payable | 3,570 | 2,904 | ||||||
Advances from borrowers for taxes and insurance | 5,092 | 5,319 | ||||||
Accrued expenses and other liabilities | 12,960 | 13,395 | ||||||
Total liabilities | 4,144,223 | 3,942,859 | ||||||
Commitments and Contingencies | — | — | ||||||
Stockholders’ Equity | ||||||||
Capital stock | ||||||||
Serial preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding 2018 and 2017 – -0- shares | — | — | ||||||
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding 2018 – 14,151,198 shares, 2017 – 14,087,533 shares | 142 | 141 | ||||||
Additional paid-in capital | 30,121 | 28,203 | ||||||
Retained earnings | 492,087 | 442,077 | ||||||
Accumulated other comprehensive income, net of income taxes of $2,844 and $708 at December 31, 2018 and 2017, respectively | 9,627 | 1,241 | ||||||
Total stockholders’ equity | 531,977 | 471,662 | ||||||
Total liabilities and stockholders’ equity | $ | 4,676,200 | $ | 4,414,521 |
2018 | 2017 | 2016 | ||||||||||
Interest Income | ||||||||||||
Loans | $ | 198,226 | $ | 176,654 | $ | 178,883 | ||||||
Investment securities and other | 7,723 | 6,407 | 6,292 | |||||||||
205,949 | 183,061 | 185,175 | ||||||||||
Interest Expense | ||||||||||||
Deposits | 27,957 | 20,595 | 17,387 | |||||||||
Federal Home Loan Bank advances | 3,985 | 1,516 | 1,214 | |||||||||
Short-term borrowings and repurchase agreements | 765 | 747 | 1,137 | |||||||||
Subordinated debentures issued to capital trust | 953 | 949 | 803 | |||||||||
Subordinated notes | 4,097 | 4,098 | 1,578 | |||||||||
37,757 | 27,905 | 22,119 | ||||||||||
Net Interest Income | 168,192 | 155,156 | 163,056 | |||||||||
Provision for Loan Losses | 7,150 | 9,100 | 9,281 | |||||||||
Net Interest Income After Provision for Loan Losses | 161,042 | 146,056 | 153,775 | |||||||||
Noninterest Income | ||||||||||||
Commissions | 1,137 | 1,041 | 1,097 | |||||||||
Service charges and ATM fees | 21,695 | 21,628 | 21,666 | |||||||||
Net gains on loan sales | 1,788 | 3,150 | 3,941 | |||||||||
Net realized gains on sales of available-for-sale securities | 2 | — | 2,873 | |||||||||
Late charges and fees on loans | 1,622 | 2,231 | 1,747 | |||||||||
Gain on derivative interest rate products | 25 | 28 | 66 | |||||||||
Gain on sale of business units | 7,414 | — | — | |||||||||
Gain (loss) on termination of loss sharing agreements | — | 7,705 | (584 | ) | ||||||||
Amortization of income/expense related to business acquisitions | — | (486 | ) | (6,351 | ) | |||||||
Other income | 2,535 | 3,230 | 4,055 | |||||||||
36,218 | 38,527 | 28,510 | ||||||||||
Noninterest Expense | ||||||||||||
Salaries and employee benefits | 60,215 | 60,034 | 60,377 | |||||||||
Net occupancy expense | 25,628 | 24,613 | 26,077 | |||||||||
Postage | 3,348 | 3,461 | 3,791 | |||||||||
Insurance | 2,674 | 2,959 | 3,482 | |||||||||
Advertising | 2,460 | 2,311 | 2,228 | |||||||||
Office supplies and printing | 1,047 | 1,446 | 1,708 | |||||||||
Telephone | 3,272 | 3,188 | 3,483 | |||||||||
Legal, audit and other professional fees | 3,423 | 2,862 | 3,191 | |||||||||
Expense on other real estate and repossessions | 4,919 | 3,929 | 4,111 | |||||||||
Partnership tax credit investment amortization | 575 | 930 | 1,681 | |||||||||
Acquired deposit intangible asset amortization | 1,562 | 1,650 | 1,910 | |||||||||
Other operating expenses | 6,187 | 6,878 | 8,388 | |||||||||
115,310 | 114,261 | 120,427 | ||||||||||
Income Before Income Taxes | 81,950 | 70,322 | 61,858 | |||||||||
Provision for Income Taxes | 14,841 | 18,758 | 16,516 | |||||||||
Net Income and Net Income Available to Common Shareholders | $ | 67,109 | $ | 51,564 | $ | 45,342 | ||||||
Earnings Per Common Share | ||||||||||||
Basic | $ | 4.75 | $ | 3.67 | $ | 3.26 | ||||||
Diluted | $ | 4.71 | $ | 3.64 | $ | 3.21 |
2018 | 2017 | 2016 | ||||||||||
Net Income | $ | 67,109 | $ | 51,564 | $ | 45,342 | ||||||
Unrealized depreciation on available-for-sale securities, net of taxes (credit) of $(353), $(272) and $(1,346) for 2018, 2017 and 2016, respectively | (1,229 | ) | (478 | ) | (2,363 | ) | ||||||
Less: reclassification adjustment for gains included in net income, net of taxes (credit) of $0, $0 and $(1,043) for 2018, 2017 and 2016, respectively | (2 | ) | — | (1,830 | ) | |||||||
Change in fair value of cash flow hedge, net of taxes of $2,761, $93 and $50 for 2018, 2017 and 2016, respectively | 9,345 | 161 | 87 | |||||||||
Other comprehensive income (loss) | 8,114 | (317 | ) | (4,106 | ) | |||||||
Comprehensive Income | $ | 75,223 | $ | 51,247 | $ | 41,236 | ||||||
Accumulated | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Additional | Comprehensive | |||||||||||||||||||||||
Common | Paid-in | Retained | Income | Treasury | ||||||||||||||||||||
Stock | Capital | Earnings | (Loss) | Stock | Total | |||||||||||||||||||
Balance, January 1, 2016 | $ | 139 | $ | 24,371 | $ | 368,053 | $ | 5,664 | $ | — | $ | 398,227 | ||||||||||||
Net income | — | — | 45,342 | — | — | 45,342 | ||||||||||||||||||
Stock issued under Stock Option Plan | — | 1,571 | — | — | 1,022 | 2,593 | ||||||||||||||||||
Common dividends declared, $.88 per share | — | — | (12,250 | ) | — | — | (12,250 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (4,106 | ) | — | (4,106 | ) | ||||||||||||||||
Reclassification of treasury stock per Maryland law | 1 | — | 1,021 | — | (1,022 | ) | — | |||||||||||||||||
Balance, December 31, 2016 | 140 | 25,942 | 402,166 | 1,558 | — | 429,806 | ||||||||||||||||||
Net income | — | — | 51,564 | — | — | 51,564 | ||||||||||||||||||
Stock issued under Stock Option Plan | — | 2,261 | — | — | 1,550 | 3,811 | ||||||||||||||||||
Common dividends declared, $.94 per share | — | — | (13,202 | ) | — | — | (13,202 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (317 | ) | — | (317 | ) | ||||||||||||||||
Reclassification of treasury stock per Maryland law | 1 | — | 1,549 | — | (1,550 | ) | — | |||||||||||||||||
Balance, December 31, 2017 | 141 | 28,203 | 442,077 | 1,241 | — | 471,662 | ||||||||||||||||||
Net income | — | — | 67,109 | — | — | 67,109 | ||||||||||||||||||
Stock issued under Stock Option Plan | — | 1,918 | — | — | 1,043 | 2,961 | ||||||||||||||||||
Common dividends declared, $1.20 per share | — | — | (16,966 | ) | — | — | (16,966 | ) | ||||||||||||||||
Purchase of the Company’s common stock | — | — | — | — | (903 | ) | (903 | ) | ||||||||||||||||
Reclassification of stranded tax effects resulting from change in Federal income tax rate | — | — | (272 | ) | 272 | — | — | |||||||||||||||||
Other comprehensive gain | — | — | — | 8,114 | — | 8,114 | ||||||||||||||||||
Reclassification of treasury stock per Maryland law | 1 | — | 139 | — | (140 | ) | — | |||||||||||||||||
Balance, December 31, 2018 | $ | 142 | $ | 30,121 | $ | 492,087 | $ | 9,627 | $ | — | $ | 531,977 |
2018 | 2017 | 2016 | ||||||||||
Operating Activities | ||||||||||||
Net income | $ | 67,109 | $ | 51,564 | $ | 45,342 | ||||||
Proceeds from sales of loans held for sale | 92,422 | 138,659 | 156,835 | |||||||||
Originations of loans held for sale | (83,806 | ) | (126,215 | ) | (156,036 | ) | ||||||
Items not requiring (providing) cash | ||||||||||||
Depreciation | 9,118 | 9,120 | 9,816 | |||||||||
Amortization | 2,291 | 2,731 | 3,656 | |||||||||
Compensation expense for stock option grants | 737 | 564 | 483 | |||||||||
Provision for loan losses | 7,150 | 9,100 | 9,281 | |||||||||
Net gains on loan sales | (1,788 | ) | (3,150 | ) | (3,941 | ) | ||||||
Net realized gains on available-for-sale securities | (2 | ) | — | (2,873 | ) | |||||||
(Gain) loss on sale of premises and equipment | 193 | 297 | (249 | ) | ||||||||
(Gain) loss on sale/write-down of other real estate and respossessions | 1,886 | (449 | ) | 489 | ||||||||
Gain on sale of business units | (7,414 | ) | — | (368 | ) | |||||||
(Gain) loss realized on termination of loss sharing agreements | — | (7,705 | ) | 584 | ||||||||
(Accretion) amortization of deferred income, premiums, discounts and other | (2,918 | ) | (1,947 | ) | 4,423 | |||||||
Gain on derivative interest rate products | (25 | ) | (28 | ) | (66 | ) | ||||||
Deferred income taxes | (4,450 | ) | 9,423 | (3,621 | ) | |||||||
Changes in | ||||||||||||
Interest receivable | (1,110 | ) | (463 | ) | (535 | ) | ||||||
Prepaid expenses and other assets | 3,002 | (5,227 | ) | 12,655 | ||||||||
Accrued expenses and other liabilities | 280 | 1,821 | (2,720 | ) | ||||||||
Income taxes refundable/payable | 11,520 | (15,278 | ) | 7,484 | ||||||||
Net cash provided by operating activities | 94,195 | 62,817 | 80,639 | |||||||||
Investing Activities | ||||||||||||
Net change in loans | (147,945 | ) | 136,596 | (145,101 | ) | |||||||
Purchase of loans | (128,038 | ) | (133,018 | ) | (145,600 | ) | ||||||
Proceeds from sale of student loans | — | — | 368 | |||||||||
Cash received from purchase of additional business units | — | — | 44,363 | |||||||||
Cash received from FDIC loss sharing reimbursements | — | 16,246 | 247 | |||||||||
Cash paid for sale of business units | (50,356 | ) | — | (17,821 | ) | |||||||
Purchase of premises and equipment | (9,317 | ) | (7,404 | ) | (10,878 | ) | ||||||
Proceeds from sale of premises and equipment | 2,328 | 565 | 1,178 | |||||||||
Proceeds from sale of other real estate and repossessions | 20,426 | 33,640 | 28,362 | |||||||||
Capitalized costs on other real estate owned | (153 | ) | (117 | ) | (146 | ) | ||||||
Proceeds from maturities, calls and repayments of held-to-maturity securities | 130 | 117 | 106 | |||||||||
Proceeds from sale of available-for-sale securities | 502 | — | 55,000 | |||||||||
Proceeds from maturities, calls and repayments of available-for-sale securities | 25,734 | 36,754 | 60,827 | |||||||||
Purchase of available-for-sale securities | (93,378 | ) | (3,852 | ) | (71,904 | ) | ||||||
Redemption (purchase) of Federal Home Loan Bank stock | (1,256 | ) | 1,852 | 2,269 | ||||||||
Net cash provided by (used in) investing activities | (381,323 | ) | 81,379 | (198,730 | ) | |||||||
Financing Activities | ||||||||||||
Net increase (decrease) in certificates of deposit | 242,955 | (114,714 | ) | 162,763 | ||||||||
Net increase (decrease) in checking and savings accounts | (53,956 | ) | 34,796 | 36,126 | ||||||||
Proceeds from Federal Home Loan Bank advances | 2,621,500 | 1,420,500 | 1,793,000 | |||||||||
Repayments of Federal Home Loan Bank advances | (2,749,000 | ) | (1,324,435 | ) | (2,025,070 | ) | ||||||
Net increase (decrease) in short‑term borrowings and other interest-bearing liabilities | 200,843 | (188,888 | ) | 168,546 | ||||||||
Proceeds from issuance of subordinated notes | — | — | 73,472 | |||||||||
Advances from (to) borrowers for taxes and insurance | (227 | ) | 676 | (38 | ) | |||||||
Purchase of the Company's common stock | (903 | ) | — | — | ||||||||
Dividends paid | (15,819 | ) | (12,894 | ) | (12,232 | ) | ||||||
Stock options exercised | 2,224 | 3,247 | 2,110 | |||||||||
Net cash provided by (used in) financing activities | 247,617 | (181,712 | ) | 198,677 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | (39,511 | ) | (37,516 | ) | 80,586 | |||||||
Cash and Cash Equivalents, Beginning of Year | 242,253 | 279,769 | 199,183 | |||||||||
Cash and Cash Equivalents, End of Year | $ | 202,742 | $ | 242,253 | $ | 279,769 |
Note 1: | Nature of Operations and Summary of Significant Accounting Policies |
Nature of Operations and Operating Segments
December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Goodwill – Branch acquisitions | $ | 5,396 | $ | 5,396 | ||||
Deposit intangibles | ||||||||
Sun Security Bank | — | 263 | ||||||
InterBank | 36 | 181 | ||||||
Boulevard Bank | 275 | 397 | ||||||
Valley Bank | 1,000 | 1,400 | ||||||
Fifth Third Bank | 2,581 | 3,213 | ||||||
3,892 | 5,454 | |||||||
$ | 9,288 | $ | 10,850 |
2018 | 2017 | 2016 | ||||||||||
(In Thousands, Except Per Share Data) | ||||||||||||
Net income and net income available to common shareholders | $ | 67,109 | $ | 51,564 | $ | 45,342 | ||||||
Average common shares outstanding | 14,132 | 14,032 | 13,912 | |||||||||
Average common share stock options outstanding | 128 | 148 | 229 | |||||||||
Average diluted common shares | 14,260 | 14,180 | 14,141 | |||||||||
Earnings per common share – basic | $ | 4.75 | $ | 3.67 | $ | 3.26 | ||||||
Earnings per common share – diluted | $ | 4.71 | $ | 3.64 | $ | 3.21 | ||||||
Note 2: | Investments in Securities |
December 31, 2018 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In Thousands) | ||||||||||||||||
Agency mortgage-backed securities | $ | 154,557 | $ | 1,272 | $ | 2,571 | $ | 153,258 | ||||||||
Agency collateralized mortgage obligations | 39,024 | 250 | 14 | 39,260 | ||||||||||||
States and political subdivisions | 50,022 | 1,428 | — | 51,450 | ||||||||||||
$ | 243,603 | $ | 2,950 | $ | 2,585 | $ | 243,968 |
December 31, 2017 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In Thousands) | ||||||||||||||||
Agency mortgage-backed securities | $ | 123,300 | $ | 871 | $ | 1,638 | $ | 122,533 | ||||||||
States and political subdivisions | 53,930 | 2,716 | — | 56,646 | ||||||||||||
$ | 177,230 | $ | 3,587 | $ | 1,638 | $ | 179,179 |
Amortized | Fair | |||||||
Cost | Value | |||||||
(In Thousands) | ||||||||
After one through five years | $ | 849 | $ | 919 | ||||
After five through ten years | 9,959 | 10,139 | ||||||
After ten years | 39,214 | 40,392 | ||||||
Securities not due on a single maturity date | 193,581 | 192,518 | ||||||
$ | 243,603 | $ | 243,968 |
The amortized cost and fair values of securities classified as held to maturity were as follows. There were no securities classified as held to maturity at December 31, 2018:
December 31, 2017 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
Cost | Gains | Losses | Value | |||||||||||||
(In Thousands) | ||||||||||||||||
States and political subdivisions | $ | 130 | $ | 1 | $ | — | $ | 131 | ||||||||
2018 | 2017 | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(In Thousands) | ||||||||||||||||
Public deposits | $ | 9,482 | $ | 9,802 | $ | 10,958 | $ | 11,490 | ||||||||
Collateralized borrowing accounts | 148,050 | 146,337 | 120,622 | 119,776 | ||||||||||||
Other | 763 | 761 | 1,579 | 1,601 | ||||||||||||
$ | 158,295 | $ | 156,900 | $ | 133,159 | $ | 132,867 |
2018 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Agency mortgage-backed securities | $ | 11,255 | $ | (82 | ) | $ | 74,186 | $ | (2,489 | ) | $ | 85,441 | $ | (2,571 | ) | |||||||||
Agency collateralized mortgage obligations | 9,725 | (14 | ) | — | — | 9,725 | (14 | ) | ||||||||||||||||
States and political subdivisions | 511 | — | — | — | 511 | — | ||||||||||||||||||
$ | 21,491 | $ | (96 | ) | $ | 74,186 | $ | (2,489 | ) | $ | 95,677 | $ | (2,585 | ) | ||||||||||
2017 | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Description of Securities | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Agency mortgage-backed securities | $ | 33,862 | $ | (384 | ) | $ | 55,845 | $ | (1,254 | ) | $ | 89,707 | $ | (1,638 | ) | |||||||||
States and political subdivisions | — | — | — | — | — | — | ||||||||||||||||||
$ | 33,862 | $ | (384 | ) | $ | 55,845 | $ | (1,254 | ) | $ | 89,707 | $ | (1,638 | ) |
Note 3: | Loans and Allowance for Loan Losses |
2018 | 2017 | |||||||
(In Thousands) | ||||||||
One- to four-family residential construction | $ | 26,177 | $ | 20,793 | ||||
Subdivision construction | 13,844 | 18,062 | ||||||
Land development | 44,492 | 43,971 | ||||||
Commercial construction | 1,417,166 | 1,068,352 | ||||||
Owner occupied one- to four-family residential | 276,866 | 190,515 | ||||||
Non-owner occupied one- to four-family residential | 122,438 | 119,468 | ||||||
Commercial real estate | 1,371,435 | 1,235,329 | ||||||
Other residential | 784,894 | 745,645 | ||||||
Commercial business | 322,118 | 353,351 | ||||||
Industrial revenue bonds | 13,940 | 21,859 | ||||||
Consumer auto | 253,528 | 357,142 | ||||||
Consumer other | 57,350 | 63,368 | ||||||
Home equity lines of credit | 121,352 | 115,439 | ||||||
Loans acquired and accounted for under ASC 310-30, net of discounts | 167,651 | 209,669 | ||||||
4,993,251 | 4,562,963 | |||||||
Undisbursed portion of loans in process | (958,441 | ) | (793,669 | ) | ||||
Allowance for loan losses | (38,409 | ) | (36,492 | ) | ||||
Deferred loan fees and gains, net | (7,400 | ) | (6,500 | ) | ||||
$ | 3,989,001 | $ | 3,726,302 |
December 31, 2018 | ||||||||||||||||||||||||||||
Total Loans | ||||||||||||||||||||||||||||
Total | > 90 Days Past | |||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Over 90 | Total Past | Loans | Due and | |||||||||||||||||||||||
Past Due | Past Due | Days | Due | Current | Receivable | Still Accruing | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
One- to four-family | ||||||||||||||||||||||||||||
residential construction | $ | — | $ | — | $ | — | $ | — | $ | 26,177 | $ | 26,177 | $ | — | ||||||||||||||
Subdivision construction | — | — | — | — | 13,844 | 13,844 | — | |||||||||||||||||||||
Land development | 13 | — | 49 | 62 | 44,430 | 44,492 | — | |||||||||||||||||||||
Commercial construction | — | — | — | — | 1,417,166 | 1,417,166 | — | |||||||||||||||||||||
Owner occupied one- to four- | ||||||||||||||||||||||||||||
family residential | 1,431 | 806 | 1,206 | 3,443 | 273,423 | 276,866 | — | |||||||||||||||||||||
Non-owner occupied one- to | ||||||||||||||||||||||||||||
four-family residential | 1,142 | 144 | 1,458 | 2,744 | 119,694 | 122,438 | — | |||||||||||||||||||||
Commercial real estate | 3,940 | 53 | 334 | 4,327 | 1,367,108 | 1,371,435 | — | |||||||||||||||||||||
Other residential | — | — | — | — | 784,894 | 784,894 | — | |||||||||||||||||||||
Commercial business | 72 | 54 | 1,437 | 1,563 | 320,555 | 322,118 | — | |||||||||||||||||||||
Industrial revenue bonds | 3 | — | — | 3 | 13,937 | 13,940 | — | |||||||||||||||||||||
Consumer auto | 2,596 | 722 | 1,490 | 4,808 | 248,720 | 253,528 | — | |||||||||||||||||||||
Consumer other | 691 | 181 | 240 | 1,112 | 56,238 | 57,350 | — | |||||||||||||||||||||
Home equity lines of credit | 229 | — | 86 | 315 | 121,037 | 121,352 | — | |||||||||||||||||||||
Loans acquired and accounted for under ASC 310-30, net of discounts | 2,195 | 1,416 | 6,827 | 10,438 | 157,213 | 167,651 | — | |||||||||||||||||||||
12,312 | 3,376 | 13,127 | 28,815 | 4,964,436 | 4,993,251 | — | ||||||||||||||||||||||
Less loans acquired and | ||||||||||||||||||||||||||||
accounted for under ASC 310-30, net of discounts | 2,195 | 1,416 | 6,827 | 10,438 | 157,213 | 167,651 | — | |||||||||||||||||||||
Total | $ | 10,117 | $ | 1,960 | $ | 6,300 | $ | 18,377 | $ | 4,807,223 | $ | 4,825,600 | $ | — |
December 31, 2017 | ||||||||||||||||||||||||||||
Total Loans | ||||||||||||||||||||||||||||
Total | > 90 Days | |||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Over 90 | Total Past | Loans | Past Due and | |||||||||||||||||||||||
Past Due | Past Due | Days | Due | Current | Receivable | Still Accruing | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
One- to four-family | ||||||||||||||||||||||||||||
residential construction | $ | 250 | $ | — | $ | — | $ | 250 | $ | 20,543 | $ | 20,793 | $ | — | ||||||||||||||
Subdivision construction | — | — | 98 | 98 | 17,964 | 18,062 | — | |||||||||||||||||||||
Land development | 54 | 37 | — | 91 | �� | 43,880 | 43,971 | — | ||||||||||||||||||||
Commercial construction | — | — | — | — | 1,068,352 | 1,068,352 | — | |||||||||||||||||||||
Owner occupied one- to four- | ||||||||||||||||||||||||||||
family residential | 1,927 | 71 | 904 | 2,902 | 187,613 | 190,515 | — | |||||||||||||||||||||
Non-owner occupied one- to | ||||||||||||||||||||||||||||
four-family residential | 947 | 190 | 1,816 | 2,953 | 116,515 | 119,468 | 58 | |||||||||||||||||||||
Commercial real estate | 8,346 | 993 | 1,226 | 10,565 | 1,224,764 | 1,235,329 | — | |||||||||||||||||||||
Other residential | 540 | 353 | 1,877 | 2,770 | 742,875 | 745,645 | — | |||||||||||||||||||||
Commercial business | 2,623 | 1,282 | 2,063 | 5,968 | 347,383 | 353,351 | — | |||||||||||||||||||||
Industrial revenue bonds | — | — | — | — | 21,859 | 21,859 | — | |||||||||||||||||||||
Consumer auto | 5,196 | 1,230 | 2,284 | 8,710 | 348,432 | 357,142 | 12 | |||||||||||||||||||||
Consumer other | 464 | 64 | 557 | 1,085 | 62,283 | 63,368 | — | |||||||||||||||||||||
Home equity lines of credit | 58 | — | 430 | 488 | 114,951 | 115,439 | 26 | |||||||||||||||||||||
Loans acquired and accounted for under ASC 310-30, | ||||||||||||||||||||||||||||
net of discounts | 4,449 | 1,951 | 10,675 | 17,075 | 192,594 | 209,669 | 272 | |||||||||||||||||||||
24,854 | 6,171 | 21,930 | 52,955 | 4,510,008 | 4,562,963 | 368 | ||||||||||||||||||||||
Less loans acquired and accounted for under ASC 310-30, | ||||||||||||||||||||||||||||
net of discounts | 4,449 | 1,951 | 10,675 | 17,075 | 192,594 | 209,669 | 272 | |||||||||||||||||||||
Total | $ | 20,405 | $ | 4,220 | $ | 11,255 | $ | 35,880 | $ | 4,317,414 | $ | 4,353,294 | $ | 96 |
December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
One- to four-family residential construction | $ | — | $ | — | ||||
Subdivision construction | 49 | 98 | ||||||
Land development | — | — | ||||||
Commercial construction | — | — | ||||||
Owner occupied one- to four-family residential | 1,206 | 904 | ||||||
Non-owner occupied one- to four-family | ||||||||
residential | 1,458 | 1,758 | ||||||
Commercial real estate | 334 | 1,226 | ||||||
Other residential | — | 1,877 | ||||||
Commercial business | 1,437 | 2,063 | ||||||
Industrial revenue bonds | — | — | ||||||
Consumer auto | 1,490 | 2,272 | ||||||
Consumer other | 240 | 557 | ||||||
Home equity lines of credit | 86 | 404 | ||||||
Total | $ | 6,300 | $ | 11,159 |
December 31, 2018 | ||||||||||||||||||||||||||||
One- to Four- | ||||||||||||||||||||||||||||
Family | ||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||
and | Other | Commercial | Commercial | Commercial | ||||||||||||||||||||||||
Construction | Residential | Real Estate | Construction | Business | Consumer | Total | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Balance, January 1, 2018 | $ | 2,108 | $ | 2,839 | $ | 18,639 | $ | 1,767 | $ | 3,581 | $ | 7,558 | $ | 36,492 | ||||||||||||||
Provision (benefit) charged to expense | 742 | 1,982 | 1,094 | 1,031 | (1,613 | ) | 3,914 | 7,150 | ||||||||||||||||||||
Losses charged off | (62 | ) | (525 | ) | (102 | ) | (87 | ) | (1,155 | ) | (9,425 | ) | (11,356 | ) | ||||||||||||||
Recoveries | 334 | 417 | 172 | 394 | 755 | 4,051 | 6,123 | |||||||||||||||||||||
Balance, | ||||||||||||||||||||||||||||
December 31, 2018 | $ | 3,122 | $ | 4,713 | $ | 19,803 | $ | 3,105 | $ | 1,568 | $ | 6,098 | $ | 38,409 | ||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 694 | $ | — | $ | 613 | $ | — | $ | 309 | $ | 425 | $ | 2,041 | ||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 2,392 | $ | 4,681 | $ | 18,958 | $ | 3,029 | $ | 1,247 | $ | 5,640 | $ | 35,947 | ||||||||||||||
Loans acquired and | ||||||||||||||||||||||||||||
accounted for under | ||||||||||||||||||||||||||||
ASC 310-30 | $ | 36 | $ | 32 | $ | 232 | $ | 76 | $ | 12 | $ | 33 | $ | 421 | ||||||||||||||
Loans | ||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 6,116 | $ | — | $ | 3,501 | $ | 14 | $ | 1,844 | $ | 2,464 | $ | 13,939 | ||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 433,209 | $ | 784,894 | $ | 1,367,934 | $ | 1,461,644 | $ | 334,214 | $ | 429,766 | $ | 4,811,661 | ||||||||||||||
Loans acquired and | ||||||||||||||||||||||||||||
accounted for under | ||||||||||||||||||||||||||||
ASC 310-30 | $ | 93,841 | $ | 12,790 | $ | 33,620 | $ | 4,093 | $ | 4,347 | $ | 18,960 | $ | 167,651 |
December 31, 2017 | ||||||||||||||||||||||||||||
One- to Four- | ||||||||||||||||||||||||||||
Family | ||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||
and | Other | Commercial | Commercial | Commercial | ||||||||||||||||||||||||
Construction | Residential | Real Estate | Construction | Business | Consumer | Total | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Balance, January 1, 2017 | $ | 2,322 | $ | 5,486 | $ | 15,938 | $ | 2,284 | $ | 3,015 | $ | 8,355 | $ | 37,400 | ||||||||||||||
Provision (benefit) charged to expense | (158 | ) | (2,356 | ) | 4,234 | (643 | ) | 1,475 | 6,548 | 9,100 | ||||||||||||||||||
Losses charged off | (165 | ) | (488 | ) | (1,656 | ) | (420 | ) | (1,489 | ) | (11,859 | ) | (16,077 | ) | ||||||||||||||
Recoveries | 109 | 197 | 123 | 546 | 580 | 4,514 | 6,069 | |||||||||||||||||||||
Balance, | ||||||||||||||||||||||||||||
December 31, 2017 | $ | 2,108 | $ | 2,839 | $ | 18,639 | $ | 1,767 | $ | 3,581 | $ | 7,558 | $ | 36,492 | ||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 513 | $ | — | $ | 599 | $ | — | $ | 2,140 | $ | 699 | $ | 3,951 | ||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 1,564 | $ | 2,813 | $ | 17,843 | $ | 1,690 | $ | 1,369 | $ | 6,802 | $ | 32,081 | ||||||||||||||
Loans acquired and | ||||||||||||||||||||||||||||
accounted for under | ||||||||||||||||||||||||||||
ASC 310-30 | $ | 31 | $ | 26 | $ | 197 | $ | 77 | $ | 72 | $ | 57 | $ | 460 | ||||||||||||||
Loans | ||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 6,950 | $ | 2,907 | $ | 8,315 | $ | 15 | $ | 3,018 | $ | 4,129 | $ | 25,334 | ||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 341,888 | $ | 742,738 | $ | 1,227,014 | $ | 1,112,308 | $ | 372,192 | $ | 531,820 | $ | 4,327,960 | ||||||||||||||
Loans acquired and | ||||||||||||||||||||||||||||
accounted for under | ||||||||||||||||||||||||||||
ASC 310-30 | $ | 120,295 | $ | 14,877 | $ | 39,210 | $ | 3,806 | $ | 5,275 | $ | 26,206 | $ | 209,669 |
December 31, 2016 | ||||||||||||||||||||||||||||
One- to Four- | ||||||||||||||||||||||||||||
Family | ||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||
and | Other | Commercial | Commercial | Commercial | ||||||||||||||||||||||||
Construction | Residential | Real Estate | Construction | Business | Consumer | Total | ||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Balance, January 1, 2016 | $ | 4,900 | $ | 3,190 | $ | 14,738 | $ | 3,019 | $ | 4,203 | $ | 8,099 | $ | 38,149 | ||||||||||||||
Provision (benefit) charged to expense | (2,407 | ) | 2,260 | 5,632 | (827 | ) | (926 | ) | 5,549 | 9,281 | ||||||||||||||||||
Losses charged off | (229 | ) | (16 | ) | (5,653 | ) | (31 | ) | (589 | ) | (8,751 | ) | (15,269 | ) | ||||||||||||||
Recoveries | 58 | 52 | 1,221 | 123 | 327 | 3,458 | 5,239 | |||||||||||||||||||||
Balance, | ||||||||||||||||||||||||||||
December 31, 2016 | $ | 2,322 | $ | 5,486 | $ | 15,938 | $ | 2,284 | $ | 3,015 | $ | 8,355 | $ | 37,400 | ||||||||||||||
Ending balance: | ||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 570 | $ | — | $ | 2,209 | $ | 1,291 | $ | 1,295 | $ | 997 | $ | 6,362 | ||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 1,628 | $ | 5,396 | $ | 13,507 | $ | 953 | $ | 1,681 | $ | 7,248 | $ | 30,413 | ||||||||||||||
Loans acquired and | ||||||||||||||||||||||||||||
accounted for under | �� | |||||||||||||||||||||||||||
ASC 310-30 | $ | 124 | $ | 90 | $ | 222 | $ | 40 | $ | 39 | $ | 110 | $ | 625 | ||||||||||||||
Loans | ||||||||||||||||||||||||||||
Individually evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 6,015 | $ | 3,812 | $ | 10,507 | $ | 6,023 | $ | 4,539 | $ | 3,385 | $ | 34,281 | ||||||||||||||
Collectively evaluated | ||||||||||||||||||||||||||||
for impairment | $ | 370,172 | $ | 659,566 | $ | 1,176,399 | $ | 825,215 | $ | 369,154 | $ | 669,602 | $ | 4,070,108 | ||||||||||||||
Loans acquired and | ||||||||||||||||||||||||||||
accounted for under | ||||||||||||||||||||||||||||
ASC 310-30 | $ | 155,378 | $ | 29,600 | $ | 54,208 | $ | 2,191 | $ | 6,429 | $ | 35,353 | $ | 283,159 |
• | The one- to four-family residential and construction segment includes the one- to four-family residential construction, subdivision construction, owner occupied one- to four-family residential and non-owner occupied one- to four-family residential classes. |
• | The other residential segment corresponds to the other residential class. |
The commercial real estate segment includes the commercial real estate and industrial revenue bonds classes. |
• | The commercial construction segment includes the land development and commercial construction classes. |
• | The commercial business segment corresponds to the commercial business class. |
• | The consumer segment includes the consumer auto, consumer other and home equity lines of credit classes. |
Year Ended | ||||||||||||||||||||
December 31, 2018 | December 31, 2018 | |||||||||||||||||||
Average | ||||||||||||||||||||
Unpaid | Investment | Interest | ||||||||||||||||||
Recorded | Principal | Specific | in Impaired | Income | ||||||||||||||||
Balance | Balance | Allowance | Loans | Recognized | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
One- to four-family residential construction | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Subdivision construction | 318 | 318 | 105 | 321 | 17 | |||||||||||||||
Land development | 14 | 18 | — | 14 | 1 | |||||||||||||||
Commercial construction | — | — | — | — | — | |||||||||||||||
Owner occupied one- to four-family | ||||||||||||||||||||
residential | 3,576 | 3,926 | 285 | 3,406 | 197 | |||||||||||||||
Non-owner occupied one- to four-family | ||||||||||||||||||||
residential | 2,222 | 2,519 | 304 | 2,870 | 158 | |||||||||||||||
Commercial real estate | 3,501 | 3,665 | 613 | 6,216 | 337 | |||||||||||||||
Other residential | — | — | — | 1,026 | 20 | |||||||||||||||
Commercial business | 1,844 | 2,207 | 309 | 2,932 | 362 | |||||||||||||||
Industrial revenue bonds | — | — | — | — | — | |||||||||||||||
Consumer auto | 1,874 | 2,114 | 336 | 2,069 | 167 | |||||||||||||||
Consumer other | 479 | 684 | 72 | 738 | 59 | |||||||||||||||
Home equity lines of credit | 111 | 128 | 17 | 412 | 28 | |||||||||||||||
Total | $ | 13,939 | $ | 15,579 | $ | 2,041 | $ | 20,004 | $ | 1,346 |
Year Ended | ||||||||||||||||||||
December 31, 2017 | December 31, 2017 | |||||||||||||||||||
Average | ||||||||||||||||||||
Unpaid | Investment | Interest | ||||||||||||||||||
Recorded | Principal | Specific | in Impaired | Income | ||||||||||||||||
Balance | Balance | Allowance | Loans | Recognized | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
One- to four-family residential construction | $ | — | $ | — | $ | — | $ | 193 | $ | — | ||||||||||
Subdivision construction | 349 | 367 | 114 | 584 | 22 | |||||||||||||||
Land development | 15 | 18 | — | 1,793 | 24 | |||||||||||||||
Commercial construction | — | — | — | — | — | |||||||||||||||
Owner occupied one- to four-family | ||||||||||||||||||||
residential | 3,405 | 3,723 | 331 | 3,405 | 166 | |||||||||||||||
Non-owner occupied one- to four-family | ||||||||||||||||||||
residential | 3,196 | 3,465 | 68 | 2,419 | 165 | |||||||||||||||
Commercial real estate | 8,315 | 8,490 | 599 | 9,075 | 567 | |||||||||||||||
Other residential | 2,907 | 2,907 | — | 3,553 | 147 | |||||||||||||||
Commercial business | 3,018 | 4,222 | 2,140 | 5,384 | 173 | |||||||||||||||
Industrial revenue bonds | — | — | — | — | — | |||||||||||||||
Consumer auto | 2,713 | 2,898 | 484 | 2,383 | 222 | |||||||||||||||
Consumer other | 825 | 917 | 124 | 906 | 69 | |||||||||||||||
Home equity lines of credit | 591 | 648 | 91 | 498 | 33 | |||||||||||||||
Total | $ | 25,334 | $ | 27,655 | $ | 3,951 | $ | 30,193 | $ | 1,588 |
Year Ended | ||||||||||||||||||||
December 31, 2016 | December 31, 2016 | |||||||||||||||||||
Average | ||||||||||||||||||||
Unpaid | Investment | Interest | ||||||||||||||||||
Recorded | Principal | Specific | in Impaired | Income | ||||||||||||||||
Balance | Balance | Allowance | Loans | Recognized | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
One- to four-family residential construction | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Subdivision construction | 818 | 829 | 131 | 948 | 46 | |||||||||||||||
Land development | 6,023 | 6,120 | 1,291 | 8,020 | 304 | |||||||||||||||
Commercial construction | — | — | — | — | — | |||||||||||||||
Owner occupied one- to four-family | ||||||||||||||||||||
residential | 3,290 | 3,555 | 374 | 3,267 | 182 | |||||||||||||||
Non-owner occupied one- to four-family | ||||||||||||||||||||
residential | 1,907 | 2,177 | 65 | 1,886 | 113 | |||||||||||||||
Commercial real estate | 10,507 | 12,121 | 2,209 | 23,928 | 984 | |||||||||||||||
Other residential | 3,812 | 3,812 | — | 6,813 | 258 | |||||||||||||||
Commercial business | 4,539 | 4,652 | 1,295 | 2,542 | 185 | |||||||||||||||
Industrial revenue bonds | — | — | — | — | — | |||||||||||||||
Consumer auto | 2,097 | 2,178 | 629 | 1,307 | 141 | |||||||||||||||
Consumer other | 812 | 887 | 244 | 884 | 70 | |||||||||||||||
Home equity lines of credit | 476 | 492 | 124 | 417 | 32 | |||||||||||||||
Total | $ | 34,281 | $ | 36,823 | $ | 6,362 | $ | 50,012 | $ | 2,315 |
2018 | ||||||||||||||||
Total | ||||||||||||||||
Interest Only | Term | Combination | Modification | |||||||||||||
(In Thousands) | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Residential one-to-four family | $ | 1,348 | $ | — | $ | — | $ | 1,348 | ||||||||
Construction and land development | — | 31 | — | 31 | ||||||||||||
Commercial | — | — | 106 | 106 | ||||||||||||
Consumer | — | 535 | — | 535 | ||||||||||||
$ | 1,348 | $ | 566 | $ | 106 | $ | 2,020 |
2017 | ||||||||||||||||
Total | ||||||||||||||||
Interest Only | Term | Combination | Modification | |||||||||||||
(In Thousands) | ||||||||||||||||
Mortgage loans on real estate: | ||||||||||||||||
Commercial | $ | — | $ | — | $ | 5,759 | $ | 5,759 | ||||||||
Commercial business | — | 16 | 274 | 290 | ||||||||||||
Consumer | — | 245 | — | 245 | ||||||||||||
$ | — | $ | 261 | $ | 6,033 | $ | 6,294 |
December 31, 2018 | ||||||||||||||||||||||||
Special | ||||||||||||||||||||||||
Satisfactory | Watch | Mention | Substandard | Doubtful | Total | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
One- to four-family residential | ||||||||||||||||||||||||
construction | $ | 25,803 | $ | 374 | $ | — | $ | — | $ | — | $ | 26,177 | ||||||||||||
Subdivision construction | 12,077 | 1,718 | — | 49 | — | 13,844 | ||||||||||||||||||
Land development | 39,892 | 4,600 | — | — | — | 44,492 | ||||||||||||||||||
Commercial construction | 1,417,166 | — | — | — | — | 1,417,166 | ||||||||||||||||||
Owner occupied one- to-four- | ||||||||||||||||||||||||
family residential | 274,661 | 43 | — | 2,162 | — | 276,866 | ||||||||||||||||||
Non-owner occupied one- to- | ||||||||||||||||||||||||
four-family residential | 119,951 | 941 | — | 1,546 | — | 122,438 | ||||||||||||||||||
Commercial real estate | 1,357,987 | 11,061 | — | 2,387 | — | 1,371,435 | ||||||||||||||||||
Other residential | 784,393 | 501 | — | — | — | 784,894 | ||||||||||||||||||
Commercial business | 315,518 | 5,163 | — | 1,437 | — | 322,118 | ||||||||||||||||||
Industrial revenue bonds | 13,940 | — | — | — | — | 13,940 | ||||||||||||||||||
Consumer auto | 251,824 | 116 | — | 1,588 | — | 253,528 | ||||||||||||||||||
Consumer other | 56,859 | 157 | — | 334 | — | 57,350 | ||||||||||||||||||
Home equity lines of credit | 121,134 | 118 | — | 100 | — | 121,352 | ||||||||||||||||||
Loans acquired and accounted | ||||||||||||||||||||||||
for under ASC 310-30, | ||||||||||||||||||||||||
net of discounts | 167,632 | — | — | 19 | — | 167,651 | ||||||||||||||||||
Total | $ | 4,958,837 | $ | 24,792 | $ | — | $ | 9,622 | $ | — | $ | 4,993,251 |
December 31, 2017 | ||||||||||||||||||||||||
Special | ||||||||||||||||||||||||
Satisfactory | Watch | Mention | Substandard | Doubtful | Total | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
One- to four-family residential | ||||||||||||||||||||||||
construction | $ | 20,275 | $ | 518 | $ | — | $ | — | $ | — | $ | 20,793 | ||||||||||||
Subdivision construction | 15,602 | 2,362 | — | 98 | — | 18,062 | ||||||||||||||||||
Land development | 39,171 | 4,800 | — | — | — | 43,971 | ||||||||||||||||||
Commercial construction | 1,068,352 | — | — | — | — | 1,068,352 | ||||||||||||||||||
Owner occupied one- to-four- | ||||||||||||||||||||||||
family residential | 188,706 | — | — | 1,809 | — | 190,515 | ||||||||||||||||||
Non-owner occupied one- to- | ||||||||||||||||||||||||
four-family residential | 117,103 | 389 | — | 1,976 | — | 119,468 | ||||||||||||||||||
Commercial real estate | 1,218,431 | 9,909 | — | 6,989 | — | 1,235,329 | ||||||||||||||||||
Other residential | 742,237 | 1,532 | — | 1,876 | — | 745,645 | ||||||||||||||||||
Commercial business | 344,479 | 6,306 | — | 2,066 | 500 | 353,351 | ||||||||||||||||||
Industrial revenue bonds | 21,859 | — | — | — | — | 21,859 | ||||||||||||||||||
Consumer auto | 354,588 | — | — | 2,554 | — | 357,142 | ||||||||||||||||||
Consumer other | 62,682 | — | — | 686 | — | 63,368 | ||||||||||||||||||
Home equity lines of credit | 114,860 | — | — | 579 | — | 115,439 | ||||||||||||||||||
Loans acquired and accounted | ||||||||||||||||||||||||
for under ASC 310-30, | ||||||||||||||||||||||||
net of discounts | 209,657 | — | — | 12 | — | 209,669 | ||||||||||||||||||
Total | $ | 4,518,002 | $ | 25,816 | $ | — | $ | 18,645 | $ | 500 | $ | 4,562,963 |
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Balance, beginning of year | $ | 40,041 | $ | 24,793 | ||||
New loans | 17,141 | 19,734 | ||||||
Payments | (28,165 | ) | (4,486 | ) | ||||
Balance, end of year | $ | 29,017 | $ | 40,041 |
Note 4: | Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets |
Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded in conjunction with the fair value of the acquired loans and the amount amortized to yield during 2018, 2017 and 2016 was $11,000, $217,000 and $491,000, respectively.
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Increase in accretable yield due to increased | ||||||||||||
cash flow expectations | $ | 5,202 | $ | 1,333 | $ | 10,598 | ||||||
Decrease in FDIC indemnification asset | ||||||||||||
as a result of accretable yield increase | — | — | (2,744 | ) |
Year Ended December 31, | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Interest income | $ | 5,134 | $ | 5,014 | $ | 16,393 | ||||||
Noninterest income | — | (634 | ) | (7,033 | ) | |||||||
Net impact to pre-tax income | $ | 5,134 | $ | 4,380 | $ | 9,360 |
December 31, 2018 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis for loss sharing determination, | ||||||||
net of activity since acquisition date | $ | 10,602 | $ | — | ||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | (399 | ) | — | |||||
expected losses (net of accretion to date) | ||||||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (10,106 | ) | — | |||||
Expected loss remaining | $ | 97 | $ | — |
December 31, 2017 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis for loss sharing determination, | ||||||||
net of activity since acquisition date | $ | 13,668 | $ | 35 | ||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | (589 | ) | — | |||||
expected losses (net of accretion to date) | ||||||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (12,948 | ) | (35 | ) | ||||
Expected loss remaining | $ | 131 | $ | — |
December 31, 2018 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis for loss sharing determination, | ||||||||
net of activity since acquisition date | $ | 14,097 | $ | — | ||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | ||||||||
expected losses (net of accretion to date) | (58 | ) | — | |||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (13,809 | ) | — | |||||
Expected loss remaining | $ | 230 | $ | — |
December 31, 2017 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis for loss sharing determination, | ||||||||
net of activity since acquisition date | $ | 18,965 | $ | 15 | ||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | ||||||||
expected losses (net of accretion to date) | (131 | ) | — | |||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (18,605 | ) | (15 | ) | ||||
Expected loss remaining | $ | 229 | $ | — |
December 31, 2018 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis for loss sharing determination, | ||||||||
net of activity since acquisition date | $ | 21,171 | $ | 91 | ||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | ||||||||
expected losses (net of accretion to date) | (342 | ) | — | |||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (20,171 | ) | (61 | ) | ||||
Expected loss remaining | $ | 658 | $ | 30 |
December 31, 2017 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis for loss sharing determination, | ||||||||
net of activity since acquisition date | $ | 26,787 | $ | 306 | ||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | ||||||||
expected losses (net of accretion to date) | (494 | ) | — | |||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (25,348 | ) | (299 | ) | ||||
Expected loss remaining | $ | 945 | $ | 7 |
InterBank Loans and Foreclosed Assets. The following tables present the balances of the acquired loans and foreclosed assets related to the InterBank transaction at December 31, 2018 and 2017. Through December 31, 2018, gross loan balances (due from borrowers) were reduced approximately $308.2 million since the transaction date because of $265.8 million of repayments by the borrowers, $20.0 million of transfers to foreclosed assets and $22.4 million of charge-offs to customer loan balances. Based upon the collectability analyses performed at the time of the acquisition, we expected certain levels of foreclosures and charge-offs and actual results have been better than our expectations. As a result, cash flows expected to be received from the acquired loan pools have increased, resulting in adjustments that were made to the related accretable yield as described above.
December 31, 2018 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis for loss sharing determination, | ||||||||
net of activity since acquisition date | $ | 85,106 | $ | 121 | ||||
Noncredit premium/(discount), net of | ||||||||
activity since acquisition date | 99 | — | ||||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | ||||||||
expected losses (net of accretion to date) | (1,695 | ) | — | |||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (74,436 | ) | (106 | ) | ||||
Expected loss remaining | $ | 9,074 | $ | 15 |
December 31, 2017 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis for loss sharing determination, | ||||||||
net of activity since acquisition date | $ | 112,399 | $ | 2,012 | ||||
Noncredit premium/(discount), net of | ||||||||
activity since acquisition date | 274 | — | ||||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | ||||||||
expected losses (net of accretion to date) | (972 | ) | — | |||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (98,321 | ) | (1,785 | ) | ||||
Expected loss remaining | $ | 13,380 | $ | 227 |
December 31, 2018 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis, net of activity | ||||||||
since acquisition date | $ | 53,470 | $ | 1,233 | ||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | ||||||||
expected losses (net of accretion to date) | (169 | ) | — | |||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (49,124 | ) | (1,233 | ) | ||||
Expected loss remaining | $ | 4,177 | $ | — |
December 31, 2017 | ||||||||
Foreclosed | ||||||||
Loans | Assets | |||||||
(In Thousands) | ||||||||
Initial basis, net of activity | ||||||||
since acquisition date | $ | 59,997 | $ | 1,673 | ||||
Noncredit premium/(discount), net of | ||||||||
activity since acquisition date | 11 | — | ||||||
Reclassification from nonaccretable discount | ||||||||
to accretable discount due to change in | ||||||||
expected losses (net of accretion to date) | (411 | ) | — | |||||
Original estimated fair value of assets, net of | ||||||||
activity since acquisition date | (54,442 | ) | (1,667 | ) | ||||
Expected loss remaining | $ | 5,155 | $ | 6 |
Sun | ||||||||||||||||||||
TeamBank | Vantus Bank | Security Bank | InterBank | Valley Bank | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Balance, January 1, 2016 | $ | 3,805 | $ | 3,360 | $ | 5,924 | $ | 16,347 | $ | 8,316 | ||||||||||
Accretion | (1,834 | ) | (1,877 | ) | (3,832 | ) | (13,964 | ) | (11,933 | ) | ||||||||||
Reclassification from nonaccretable difference(1) | 506 | 1,064 | 2,185 | 6,129 | 8,414 | |||||||||||||||
Balance, December 31, 2016 | 2,477 | 2,547 | 4,277 | 8,512 | 4,797 | |||||||||||||||
Accretion | (1,563 | ) | (1,373 | ) | (2,251 | ) | (7,505 | ) | (5,823 | ) | ||||||||||
Reclassification from nonaccretable difference(1) | 1,157 | 676 | 875 | 4,067 | 3,721 | |||||||||||||||
Balance, December 31, 2017 | 2,071 | 1,850 | 2,901 | 5,074 | 2,695 | |||||||||||||||
Accretion | (1,042 | ) | (1,196 | ) | (1,667 | ) | (8,349 | ) | (3,892 | ) | ||||||||||
Reclassification from nonaccretable difference(1) | 327 | 778 | 1,008 | 8,269 | 4,260 | |||||||||||||||
Balance, December 31, 2018 | $ | 1,356 | $ | 1,432 | $ | 2,242 | $ | 4,994 | $ | 3,063 |
(1) | Represents increases in estimated cash flows expected to be received from the acquired loan pools, primarily due to lower estimated credit losses. The numbers also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the year ended December 31, 2018, totaling $312,000, $778,000, $756,000, $4.1 million and $3.5 million, respectively; for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the year ended December 31, 2017, totaling $1.1 million, $663,000, $850,000, $3.5 million and $3.0 million, respectively; and for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the year ended December 31, 2016, totaling $506,000, $1.0 million, $1.8 million, $2.7 million and $1.6 million, respectively. |
Note 5: | Other Real Estate Owned and Repossessions |
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Foreclosed assets held for sale and repossessions | ||||||||
One- to four-family construction | $ | — | $ | — | ||||
Subdivision construction | 1,092 | 5,413 | ||||||
Land development | 3,191 | 7,229 | ||||||
Commercial construction | — | — | ||||||
One- to four-family residential | 269 | 112 | ||||||
Other residential | — | 140 | ||||||
Commercial real estate | — | 1,694 | ||||||
Commercial business | — | — | ||||||
Consumer | 928 | 1,987 | ||||||
5,480 | 16,575 | |||||||
Acquired foreclosed assets no longer covered by | ||||||||
FDIC loss sharing agreements, net of discounts | 167 | 2,133 | ||||||
Acquired foreclosed assets not covered by FDIC | ||||||||
loss sharing agreements, net of discounts (Valley Bank) | 1,234 | 1,666 | ||||||
Foreclosed assets held for sale and repossessions, net | 6,881 | 20,374 | ||||||
Other real estate owned not acquired through foreclosure | 1,559 | 1,628 | ||||||
Other real estate owned and repossessions | $ | 8,440 | $ | 22,002 |
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Net gains on sales of other real estate owned and repossessions | $ | (2,522 | ) | $ | (2,212 | ) | $ | (68 | ) | |||
Valuation write-downs | 3,897 | 1,585 | 431 | |||||||||
Operating expenses, net of rental income | 3,544 | 4,556 | 3,748 | |||||||||
$ | 4,919 | $ | 3,929 | $ | 4,111 |
Note 6: | Premises and Equipment |
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Land | $ | 40,508 | $ | 42,312 | ||||
Buildings and improvements | 95,039 | 97,464 | ||||||
Furniture, fixtures and equipment | 54,327 | 53,841 | ||||||
189,874 | 193,617 | |||||||
Less accumulated depreciation | 57,450 | 55,599 | ||||||
$ | 132,424 | $ | 138,018 |
Note 7: | Investments in Limited Partnerships |
Note 8: | Deposits |
Weighted Average | ||||||||||||
Interest Rate | 2018 | 2017 | ||||||||||
(In Thousands, Except Interest Rates) | ||||||||||||
Noninterest-bearing accounts | — | $ | 661,061 | $ | 661,589 | |||||||
Interest-bearing checking and savings accounts | 0.46% - 0.32% | 1,472,535 | 1,565,711 | |||||||||
2,133,596 | 2,227,300 | |||||||||||
Certificate accounts | 0% - 0.99% | 150,656 | 254,502 | |||||||||
1% - 1.99% | 511,873 | 1,006,373 | ||||||||||
2% - 2.99% | 857,973 | 106,888 | ||||||||||
3% - 3.99% | 69,793 | 701 | ||||||||||
4% - 4.99% | 1,116 | 1,108 | ||||||||||
5% and above | — | 272 | ||||||||||
1,591,411 | 1,369,844 | |||||||||||
$ | 3,725,007 | $ | 3,597,144 |
The weighted average interest rate on certificates of deposit was 1.98% and 1.24% at December 31, 2018 and 2017, respectively.
Retail | Brokered | Total | ||||||||||
(In Thousands) | ||||||||||||
2019 | $ | 928,900 | $ | 286,922 | $ | 1,215,822 | ||||||
2020 | 219,704 | 40,000 | 259,704 | |||||||||
2021 | 73,724 | — | 73,724 | |||||||||
2022 | 26,012 | — | 26,012 | |||||||||
2023 | 14,705 | — | 14,705 | |||||||||
Thereafter | 1,444 | — | 1,444 | |||||||||
$ | 1,264,489 | $ | 326,922 | $ | 1,591,411 |
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Checking and savings accounts | $ | 5,982 | $ | 4,699 | $ | 3,888 | ||||||
Certificate accounts | 22,149 | 16,009 | 13,598 | |||||||||
Early withdrawal penalties | (174 | ) | (113 | ) | (99 | ) | ||||||
$ | 27,957 | $ | 20,595 | $ | 17,387 |
Note 9: | Advances From Federal Home Loan Bank |
December 31, 2018 | December 31, 2017 | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Average | Average | |||||||||||||||
Interest | Interest | |||||||||||||||
Due In | Amount | Rate | Amount | Rate | ||||||||||||
(In Thousands) | ||||||||||||||||
2018 | $ | — | — | % | $ | 127,500 | 1.53 | % | ||||||||
Note 10: | Short-Term Borrowings |
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Notes payable – Community Development | ||||||||
Equity Funds | $ | 1,625 | $ | 1,604 | ||||
Other interest-bearing liabilities | 13,100 | — | ||||||
Overnight borrowings from the Federal Home Loan Bank | 178,000 | 15,000 | ||||||
Securities sold under reverse repurchase agreements | 105,253 | 80,531 | ||||||
$ | 297,978 | $ | 97,135 |
2018 | 2017 | |||||||
Overnight and | Overnight and | |||||||
Continuous | Continuous | |||||||
(In Thousands) | ||||||||
Mortgage-backed securities – GNMA, FNMA, FHLMC | $ | 105,253 | $ | 80,531 | ||||
Note 11: | Federal Reserve Bank Borrowings |
Note 12: | Subordinated Debentures Issued to Capital Trusts |
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Subordinated debentures | $ | 25,774 | $ | 25,774 |
Note 13: | Subordinated Notes |
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Subordinated notes | $ | 75,000 | $ | 75,000 | ||||
Less: unamortized debt issuance costs | 1,158 | 1,312 | ||||||
$ | 73,842 | $ | 73,688 |
Note 14: | Income Taxes |
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Taxes currently payable | $ | 19,291 | $ | 9,335 | $ | 20,137 | ||||||
Deferred income taxes | (4,450 | ) | 11,528 | (3,621 | ) | |||||||
Adjustment of deferred tax asset or liability for enacted changes in tax laws | — | (2,105 | ) | — | ||||||||
Income taxes | $ | 14,841 | $ | 18,758 | $ | 16,516 |
December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Deferred tax assets | ||||||||
Allowance for loan losses | $ | 8,758 | $ | 8,154 | ||||
Tax credit carryforward | — | 5,816 | ||||||
Interest on nonperforming loans | 320 | 288 | ||||||
Accrued expenses | 726 | 684 | ||||||
Write-down of foreclosed assets | 600 | 1,694 | ||||||
Write-down of fixed assets | 191 | 207 | ||||||
Difference in basis for acquired assets and liabilities | 4,031 | 4,725 | ||||||
14,626 | 21,568 | |||||||
Deferred tax liabilities | ||||||||
Tax depreciation in excess of book depreciation | (5,409 | ) | (4,483 | ) | ||||
FHLB stock dividends | (798 | ) | (356 | ) | ||||
Partnership tax credits | (404 | ) | (706 | ) | ||||
Prepaid expenses | (569 | ) | (775 | ) | ||||
Unrealized gain on available-for-sale securities | (83 | ) | (435 | ) | ||||
Book revenue in excess of tax revenue | — | (12,177 | ) | |||||
Unrealized gain on cash flow derivatives | (2,761 | ) | — | |||||
Other | (113 | ) | (190 | ) | ||||
(10,137 | ) | (19,122 | ) | |||||
Net deferred tax asset | $ | 4,489 | $ | 2,446 |
2018 | 2017 | 2016 | ||||||||||
Tax at statutory rate | 21.0 | % | 35.0 | % | 35.0 | % | ||||||
Nontaxable interest and dividends | (0.8 | ) | (1.6 | ) | (2.1 | ) | ||||||
Tax credits | (3.4 | ) | (6.1 | ) | (7.3 | ) | ||||||
State taxes | 1.1 | 1.1 | 1.1 | |||||||||
Initial impact of enactment of 2017 Tax Act | — | (0.4 | ) | — | ||||||||
Other | 0.2 | (1.3 | ) | — | ||||||||
18.1 | % | 26.7 | % | 26.7 | % |
Note 15: | Disclosures About Fair Value of Financial Instruments |
• | Quoted prices in active markets for identical assets or liabilities (Level 1): Inputs that are quoted unadjusted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An active market for the asset is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets, quoted prices for securities in inactive markets and inputs derived principally from or corroborated by observable market data by correlation or other means. |
• | Significant unobservable inputs (Level 3): Inputs that reflect assumptions of a source independent of the reporting entity or the reporting entity's own assumptions that are supported by little or no market activity or observable inputs. |
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | ||||||||||||||||
Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(In Thousands) | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Agency mortgage-backed securities | $ | 153,258 | $ | — | $ | 153,258 | $ | — | ||||||||
Agency collateralized mortgage obligations | 39,260 | — | 39,260 | — | ||||||||||||
States and political subdivisions | 51,450 | — | 51,450 | — | ||||||||||||
Interest rate derivative asset | 12,800 | — | 12,800 | — | ||||||||||||
Interest rate derivative liability | (716 | ) | — | (716 | ) | — | ||||||||||
December 31, 2017 | ||||||||||||||||
Agency mortgage-backed securities | $ | 122,533 | $ | — | $ | 122,533 | $ | — | ||||||||
States and political subdivisions | 56,646 | — | 56,646 | — | ||||||||||||
Interest rate derivative asset | 981 | — | 981 | — | ||||||||||||
Interest rate derivative liability | (1,030 | ) | — | (1,030 | ) | — |
Fair Value Measurements Using | ||||||||||||||||
Quoted | ||||||||||||||||
Prices | ||||||||||||||||
in Active | ||||||||||||||||
Markets | Other | Significant | ||||||||||||||
for Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(In Thousands) | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Impaired loans | $ | 2,805 | $ | — | $ | — | $ | 2,805 | ||||||||
Foreclosed assets held for sale | $ | 1,776 | $ | — | $ | — | $ | 1,776 | ||||||||
December 31, 2017 | ||||||||||||||||
Impaired loans | $ | 1,590 | $ | — | $ | — | $ | 1,590 | ||||||||
Foreclosed assets held for sale | $ | 1,758 | $ | — | $ | — | $ | 1,758 |
Foreclosed assets held for sale are initially recorded at fair value less estimated cost to sell at the date of foreclosure. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. The foreclosed assets represented in the table above have been re-measured during the years ended December 31, 2018 and 2017, subsequent to their initial transfer to foreclosed assets.
The carrying amount approximates fair value.
The subordinated debentures have floating rates that reset quarterly. The carrying amount of these debentures approximates their fair value.
Subordinated Notes
The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date.
December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Carrying | Fair | Hierarchy | Carrying | Fair | Hierarchy | |||||||||||||||||||
Amount | Value | Level | Amount | Value | Level | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 202,742 | $ | 202,742 | 1 | $ | 242,253 | $ | 242,253 | 1 | ||||||||||||||
Held-to-maturity securities | — | — | 2 | 130 | 131 | 2 | ||||||||||||||||||
Mortgage loans held for sale | 1,650 | 1,650 | 2 | 8,203 | 8,203 | 2 | ||||||||||||||||||
Loans, net of allowance for loan losses | 3,989,001 | 3,955,786 | 3 | 3,726,302 | 3,735,216 | 3 | ||||||||||||||||||
Accrued interest receivable | 13,448 | 13,448 | 3 | 12,338 | 12,338 | 3 | ||||||||||||||||||
Investment in FHLB stock | 12,438 | 12,438 | 3 | 11,182 | 11,182 | 3 | ||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Deposits | 3,725,007 | 3,717,899 | 3 | 3,597,144 | 3,606,400 | 3 | ||||||||||||||||||
FHLB advances | — | — | 3 | 127,500 | 127,500 | 3 | ||||||||||||||||||
Short-term borrowings | 297,978 | 297,978 | 3 | 97,135 | 97,135 | 3 | ||||||||||||||||||
Subordinated debentures | 25,774 | 25,774 | 3 | 25,774 | 25,774 | 3 | ||||||||||||||||||
Subordinated notes | 73,842 | 75,188 | 2 | 73,688 | 76,500 | 2 | ||||||||||||||||||
Accrued interest payable | 3,570 | 3,570 | 3 | 2,904 | 2,904 | 3 | ||||||||||||||||||
Unrecognized financial instruments (net of | ||||||||||||||||||||||||
contractual value) | ||||||||||||||||||||||||
Commitments to originate loans | — | — | 3 | — | — | 3 | ||||||||||||||||||
Letters of credit | 146 | 146 | 3 | 85 | 85 | 3 | ||||||||||||||||||
Lines of credit | — | — | 3 | — | — | 3 |
Note 16: | Operating Leases |
2019 | $ | 958 | ||
2020 | 821 | |||
2021 | 648 | |||
2022 | 571 | |||
2023 | 443 | |||
Thereafter | 837 | |||
$ | 4,278 |
Note 17: | Derivatives and Hedging Activities |
The Company has interest rate swaps that are not designated in a qualifying hedging relationship. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers, which the Company began offering during 2011. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings.
Location in | Fair Value | ||||||||
Consolidated Statements | December 31, | December 31, | |||||||
of Financial Condition | 2018 | 2017 | |||||||
(In Thousands) | |||||||||
Derivatives designated as | |||||||||
hedging instruments | |||||||||
Interest rate swap | Prepaid expenses and other assets | $ | 12,106 | $ | — | ||||
Total derivatives designated | |||||||||
as hedging instruments | $ | 12,106 | $ | — | |||||
Derivatives not designated | |||||||||
as hedging instruments | |||||||||
Derivative Assets | |||||||||
Derivatives not designated | |||||||||
as hedging instruments | |||||||||
Interest rate products | Prepaid expenses and other assets | $ | 694 | $ | 981 | ||||
Total derivatives not | |||||||||
designated as hedging | |||||||||
instruments | $ | 694 | $ | 981 | |||||
Derivative Liabilities | |||||||||
Derivatives not designated | |||||||||
as hedging instruments | |||||||||
Interest rate products | Accrued expenses and other liabilities | $ | 716 | $ | 1,030 | ||||
Total derivatives not | |||||||||
designated as hedging | |||||||||
instruments | $ | 716 | $ | 1,030 |
Year Ended December 31 | ||||||||||||
Cash Flow Hedges | Amount of Gain (Loss) Recognized in AOCI | |||||||||||
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Interest rate swap (2018) and interest rate cap (2017 and 2016), net of income taxes | $ | 9,345 | $ | 161 | $ | 87 | ||||||
Year Ended December 31 | ||||||||||||||||||||||||
Cash Flow Hedges | 2018 | 2017 | 2016 | |||||||||||||||||||||
Interest Income | Interest Expense | Interest Income | Interest Expense | Interest Income | Interest Expense | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Interest rate swap (2018) and interest rate cap (2017 and 2016) | $ | 673 | $ | — | $ | — | $ | 244 | $ | — | $ | 225 | ||||||||||||
As of December 31, 2018, the termination value of derivatives with our derivative dealer counterparties (related to loan level swaps with commercial lending customers) in a net asset position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $396,000. In addition, as of December 31, 2018, the termination value of derivatives with our derivative dealer counterparty (related to the balance sheet hedge commenced in October 2018) in a net asset position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $12.3 million. The Company has minimum collateral posting thresholds with its derivative dealer counterparties. At December 31, 2018, the Company’s activity with certain of its derivative counterparties met the level at which the minimum collateral posting thresholds take effect (collateral to be received by the Company) and the derivative counterparties had posted collateral of $704,000 to the Company to satisfy the loan level agreements and collateral of $12.8 million to the Company to satisfy the balance sheet hedge. As of December 31, 2017, the termination value of derivatives in a net liability position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $336,000. At December 31, 2017,
Note 18: | Commitments and Credit Risk |
Letters of Credit
At December 31, 2018, the Bank had granted unused lines of credit to borrowers aggregating approximately $1.1 billion and $150.9 million for commercial lines and open‑end consumer lines, respectively. At December 31, 2017, the Bank had granted unused lines of credit to borrowers aggregating approximately $912.2 million and $133.6 million for commercial lines and open‑end consumer lines, respectively.
Note 19: | Additional Cash Flow Information |
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Noncash Investing and Financing Activities | ||||||||||||
Real estate acquired in settlement of | ||||||||||||
loans | $ | 12,044 | $ | 23,780 | $ | 26,076 | ||||||
Sale and financing of foreclosed assets | 2,578 | 603 | 3,334 | |||||||||
Conversion of premises and equipment | ||||||||||||
to foreclosed assets | — | — | 6,985 | |||||||||
Dividends declared but not paid | 4,528 | 3,381 | 3,073 | |||||||||
Additional Cash Payment Information | ||||||||||||
Interest paid | 37,091 | 27,724 | 20,476 | |||||||||
Income taxes paid | 2,569 | 17,563 | 9,554 |
Note 20: | Employee Benefits |
The Company participates in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra DB Plan), a multiemployer defined benefit pension plan covering all employees who have met minimum service requirements. Effective July 1, 2006, this plan was closed to new participants. Employees already in the plan continue to accrue benefits. The Pentegra DB Plan’s Employer Identification Number is 13-5645888 and the Plan Number is 333. The Company’s policy is to fund pension cost accrued. Employer contributions charged to expense for this plan for the years ended December 31, 2018, 2017 and 2016, were approximately $1.3 million, $1.1 million and $725,000, respectively. The Company’s contributions to the Pentegra DB Plan were not more than 5% of the total contributions to the plan. The funded status of the plan as of July 1, 2018 and 2017, was 96.3% and 98.2%, respectively. The funded status was calculated by taking the market value of plan assets, which reflected contributions received through June 30, 2018 and 2017, respectively, divided by the funding target. No collective bargaining agreements are in place that require contributions to the Pentegra DB Plan.
Note 21: | Stock Compensation Plans |
Weighted | ||||||||||||
Available to Grant | Shares Under Option | Average Exercise Price | ||||||||||
Balance, January 1, 2016 | 331,450 | 633,732 | $ | 31.297 | ||||||||
Granted from 2013 Plan | (131,000 | ) | 131,000 | 41.228 | ||||||||
Exercised | — | (81,812 | ) | 26.472 | ||||||||
Forfeited from terminated plan(s) | — | (2,692 | ) | 22.654 | ||||||||
Forfeited from current plan(s) | 19,025 | (19,025 | ) | 39.123 | ||||||||
Balance, December 31, 2016 | 219,475 | 661,203 | 33.672 | |||||||||
Granted from 2013 Plan | (157,800 | ) | 157,800 | 52.118 | ||||||||
Exercised | — | (119,692 | ) | 27.352 | ||||||||
Forfeited from terminated plan(s) | — | (675 | ) | 24.690 | ||||||||
Forfeited from current plan(s) | 15,837 | (15,837 | ) | 41.916 | ||||||||
Balance, December 31, 2017 | 77,512 | 682,799 | 38.860 | |||||||||
Granted from 2013 Plan | (1,000 | ) | 1,000 | 52.500 | ||||||||
Exercised | — | (81,940 | ) | 27.597 | ||||||||
Forfeited from 2013 Plan | 13,773 | (13,773 | ) | 45.692 | ||||||||
Termination of 2013 Plan | (90,285 | ) | — | |||||||||
— | 588,086 | |||||||||||
Available to grant from 2018 Plan | 800,000 | — | ||||||||||
Granted from 2018 Plan | (185,750 | ) | 185,750 | 55.297 | ||||||||
Forfeited from current plan(s) | 600 | (600 | ) | 55.000 | ||||||||
Balance, December 31, 2018 | 614,850 | 773,236 | $ | 43.886 |
2018 | 2017 | 2016 | ||||||||||
Expected dividends per share | $ | 1.27 | $ | 0.95 | $ | 0.88 | ||||||
Risk-free interest rate | 2.86 | % | 2.03 | % | 1.27 | % | ||||||
Expected life of options | 5 years | 5 years | 5 years | |||||||||
Expected volatility | 17.61 | % | 23.49 | % | 22.08 | % | ||||||
Weighted average fair value of | ||||||||||||
options granted during year | $ | 8.30 | $ | 10.04 | $ | 6.59 |
Weighted | |||||||||
Weighted | Average | ||||||||
Average | Remaining | ||||||||
Exercise | Contractual | ||||||||
Options | Price | Term | |||||||
Options outstanding, January 1, 2018 | 682,799 | $ | 38.860 | 7.38 years | |||||
Granted | 186,750 | 55.282 | |||||||
Exercised | (81,940 | ) | 27.597 | ||||||
Forfeited | (14,373 | ) | 46.081 | ||||||
Options outstanding, December 31, 2018 | 773,236 | 43.886 | 7.44 years | ||||||
Options exercisable, December 31, 2018 | 266,742 | 32.233 | 5.15 years |
Weighted | Weighted | |||||||||||
Average | Average | |||||||||||
Exercise | Grant Date | |||||||||||
Options | Price | Fair Value | ||||||||||
Nonvested options, January 1, 2018 | 441,937 | $ | 44.842 | $ | 7.981 | |||||||
Granted | 186,750 | 55.282 | 8.297 | |||||||||
Vested this period | (107,895 | ) | 38.433 | 6.398 | ||||||||
Nonvested options forfeited | (14,298 | ) | 46.057 | 8.143 | ||||||||
Nonvested options, December 31, 2018 | 506,494 | 50.023 | 8.431 |
Options Outstanding | |||||||||||||||||
Weighted | Options Exercisable | ||||||||||||||||
Average | Weighted | Weighted | |||||||||||||||
Remaining | Average | Average | |||||||||||||||
Range of | Number | Contractual | Exercise | Number | Exercise | ||||||||||||
Exercise Prices | Outstanding | Term | Price | Exercisable | Price | ||||||||||||
$16.810 to 29.640 | 139,920 | 3.89 years | $ | 25.093 | 139,920 | $ | 25.093 | ||||||||||
$32.590 to 38.610 | 97,047 | 5.87 years | 33.038 | 62,291 | 32.819 | ||||||||||||
$41.300 to 47.800 | 111,436 | 7.80 years | 41.357 | 24,658 | 41.386 | ||||||||||||
$50.710 to 52.500 | 239,683 | 8.11 years | 51.608 | 39,873 | 50.710 | ||||||||||||
$55.000 to 59.750 | 185,150 | 9.88 years | 55.298 | — | — | ||||||||||||
773,236 | 7.44 years | 43.886 | 266,742 | 32.233 |
Note 22: | Significant Estimates and Concentrations |
Note 23: | Accumulated Other Comprehensive Income |
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Net unrealized gain on available-for-sale securities | $ | 365 | $ | 1,949 | ||||
Net unrealized gain on derivatives used for cash flow hedges | 12,106 | — | ||||||
12,471 | 1,949 | |||||||
Tax effect | (2,844 | ) | (708 | ) | ||||
Net-of-tax amount | $ | 9,627 | $ | 1,241 |
Amounts Reclassified from AOCI | |||||||||||||
2018 | 2017 | 2016 | Affected Line Item in the Statements of Income | ||||||||||
(In Thousands) | |||||||||||||
Unrealized gains on available-for-sale securities | $ | 2 | $ | — | $ | 2,873 | Net realized gains on available-for-sale securities (total reclassified amount before tax) | ||||||
Income taxes | — | — | (1,043 | ) | Tax (expense) benefit | ||||||||
Total reclassifications out of AOCI | $ | 2 | $ | — | $ | 1,830 |
Note 24: | Regulatory Matters |
Minimum To Be Well | ||||||||||||||||||||||||
Capitalized Under | ||||||||||||||||||||||||
Minimum For Capital | Prompt Corrective | |||||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||
As of December 31, 2018 | ||||||||||||||||||||||||
Total capital | ||||||||||||||||||||||||
Great Southern Bancorp, Inc. | $ | 651,469 | 14.4 | % | $ | 360,826 | 8.0 | % | N/A | N/A | ||||||||||||||
Great Southern Bank | $ | 599,509 | 13.3 | % | $ | 360,767 | 8.0 | % | $ | 450,959 | 10.0 | % | ||||||||||||
Tier I capital | ||||||||||||||||||||||||
Great Southern Bancorp, Inc. | $ | 538,060 | 11.9 | % | $ | 270,619 | 6.0 | % | N/A | N/A | ||||||||||||||
Great Southern Bank | $ | 561,100 | 12.4 | % | $ | 270,575 | 6.0 | % | $ | 360,767 | 8.0 | % | ||||||||||||
Tier I leverage capital | ||||||||||||||||||||||||
Great Southern Bancorp, Inc. | $ | 538,060 | 11.7 | % | $ | 184,088 | 4.0 | % | N/A | N/A | ||||||||||||||
Great Southern Bank | $ | 561,100 | 12.2 | % | $ | 184,050 | 4.0 | % | $ | 230,062 | 5.0 | % | ||||||||||||
Common equity Tier I capital | ||||||||||||||||||||||||
Great Southern Bancorp, Inc. | $ | 513,060 | 11.4 | % | $ | 202,965 | 4.5 | % | N/A | N/A | ||||||||||||||
Great Southern Bank | $ | 561,100 | 12.4 | % | $ | 202,931 | 4.5 | % | $ | 293,123 | 6.5 | % | ||||||||||||
As of December 31, 2017 | ||||||||||||||||||||||||
Total capital | ||||||||||||||||||||||||
Great Southern Bancorp, Inc. | $ | 597,177 | 14.1 | % | $ | 339,649 | 8.0 | % | N/A | N/A | ||||||||||||||
Great Southern Bank | $ | 558,668 | 13.2 | % | $ | 339,575 | 8.0 | % | $ | 424,468 | 10.0 | % | ||||||||||||
Tier I capital | ||||||||||||||||||||||||
Great Southern Bancorp, Inc. | $ | 485,685 | 11.4 | % | $ | 254,737 | 6.0 | % | N/A | N/A | ||||||||||||||
Great Southern Bank | $ | 522,176 | 12.3 | % | $ | 254,681 | 6.0 | % | $ | 339,575 | 8.0 | % | ||||||||||||
Tier I leverage capital | ||||||||||||||||||||||||
Great Southern Bancorp, Inc. | $ | 485,685 | 10.9 | % | $ | 177,881 | 4.0 | % | N/A | N/A | ||||||||||||||
Great Southern Bank | $ | 522,176 | 11.7 | % | $ | 177,844 | 4.0 | % | $ | 222,305 | 5.0 | % | ||||||||||||
Common equity Tier I capital | ||||||||||||||||||||||||
Great Southern Bancorp, Inc. | $ | 460,661 | 10.9 | % | $ | 191,053 | 4.5 | % | N/A | N/A | ||||||||||||||
Great Southern Bank | $ | 522,152 | 12.3 | % | $ | 191,011 | 4.5 | % | $ | 275,904 | 6.5 | % | ||||||||||||
Note 25: | Litigation Matters |
Note 26: | Summary of Unaudited Quarterly Operating Results |
2018 | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In Thousands, Except Per Share Data) | ||||||||||||||||
Interest income | $ | 46,882 | $ | 49,943 | $ | 52,982 | $ | 56,142 | ||||||||
Interest expense | 7,444 | 8,731 | 9,997 | 11,585 | ||||||||||||
Provision for loan losses | 1,950 | 1,950 | 1,300 | 1,950 | ||||||||||||
Net realized gains on | ||||||||||||||||
available-for-sale securities | — | — | 2 | — | ||||||||||||
Noninterest income | 6,935 | 7,459 | 14,604 | 7,220 | ||||||||||||
Noninterest expense | 28,312 | 29,915 | 28,309 | 28,774 | ||||||||||||
Provision for income taxes | 2,645 | 2,967 | 5,464 | 3,765 | ||||||||||||
Net income available to common | ||||||||||||||||
shareholders | 13,466 | 13,839 | 22,516 | 17,288 | ||||||||||||
Earnings per common share – diluted | 0.95 | 0.97 | 1.57 | 1.21 |
2017 | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In Thousands, Except Per Share Data) | ||||||||||||||||
Interest income | $ | 45,413 | $ | 44,744 | $ | 46,368 | $ | 46,536 | ||||||||
Interest expense | 6,712 | 6,843 | 7,087 | 7,263 | ||||||||||||
Provision for loan losses | 2,250 | 1,950 | 2,950 | 1,950 | ||||||||||||
Net realized gains (losses) | ||||||||||||||||
on available-for-sale securities | — | — | — | — | ||||||||||||
Noninterest income | 7,698 | 15,800 | 7,655 | 7,374 | ||||||||||||
Noninterest expense | 28,573 | 28,371 | 28,034 | 29,283 | ||||||||||||
Provision for income taxes | 4,058 | 7,204 | 4,289 | 3,207 | ||||||||||||
Net income | 11,518 | 16,176 | 11,663 | 12,207 | ||||||||||||
Net income available to common | ||||||||||||||||
shareholders | 11,518 | 16,176 | 11,663 | 12,207 | ||||||||||||
Earnings per common share – diluted | 0.81 | 1.14 | 0.82 | 0.86 |
2016 | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||||
(In Thousands, Except Per Share Data) | ||||||||||||||||
Interest income | $ | 45,746 | $ | 45,636 | $ | 46,856 | $ | 46,937 | ||||||||
Interest expense | 4,627 | 4,974 | 5,828 | 6,690 | ||||||||||||
Provision for loan losses | 2,101 | 2,300 | 2,500 | 2,380 | ||||||||||||
Net realized gains (losses) on | ||||||||||||||||
available-for-sale securities | 3 | 2,735 | 144 | (9 | ) | |||||||||||
Noninterest income | 4,974 | 8,916 | 7,090 | 7,530 | ||||||||||||
Noninterest expense | 30,920 | 29,807 | 30,657 | 29,043 | ||||||||||||
Provision (credit) for income taxes | 3,279 | 4,937 | 3,740 | 4,560 | ||||||||||||
Net income | 9,793 | 12,534 | 11,221 | 11,794 | ||||||||||||
Net income available to common | ||||||||||||||||
shareholders | 9,793 | 12,534 | 11,221 | 11,794 | ||||||||||||
Earnings per common share – diluted | 0.70 | 0.89 | 0.80 | 0.83 |
Note 27: | Condensed Parent Company Statements |
December 31, | ||||||||
2018 | 2017 | |||||||
(In Thousands) | ||||||||
Statements of Financial Condition | ||||||||
Assets | ||||||||
Cash | $ | 56,648 | $ | 41,977 | ||||
Investment in subsidiary bank | 580,016 | 533,153 | ||||||
Deferred and accrued income taxes | 411 | 133 | ||||||
Prepaid expenses and other assets | 889 | 903 | ||||||
$ | 637,964 | $ | 576,166 | |||||
Liabilities and Stockholders’ Equity | ||||||||
Accounts payable and accrued expenses | $ | 6,371 | $ | 5,042 | ||||
Subordinated debentures issued to capital trust | 25,774 | 25,774 | ||||||
Subordinated notes | 73,842 | 73,688 | ||||||
Common stock | 142 | 141 | ||||||
Additional paid-in capital | 30,121 | 28,203 | ||||||
Retained earnings | 492,087 | 442,077 | ||||||
Accumulated other comprehensive income | 9,627 | 1,241 | ||||||
$ | 637,964 | $ | 576,166 |
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Statements of Income | ||||||||||||
Income | ||||||||||||
Dividends from subsidiary bank | $ | 34,000 | $ | 17,500 | $ | 12,000 | ||||||
Interest and dividend income | — | 48 | — | |||||||||
Gain on redemption of trust preferred securities and sale of non-marketable securities | — | — | 2,735 | |||||||||
Other income | — | — | 2 | |||||||||
34,000 | 17,548 | 14,737 | ||||||||||
Expense | ||||||||||||
Operating expenses | 1,793 | 1,330 | 1,322 | |||||||||
Interest expense | 5,050 | 5,047 | 2,381 | |||||||||
6,843 | 6,377 | 3,703 | ||||||||||
Income before income tax and | ||||||||||||
equity in undistributed earnings | ||||||||||||
of subsidiaries | 27,157 | 11,171 | 11,034 | |||||||||
Credit for income taxes | (1,204 | ) | (1,709 | ) | (241 | ) | ||||||
Income before equity in earnings | ||||||||||||
of subsidiaries | 28,361 | 12,880 | 11,275 | |||||||||
Equity in undistributed earnings of | ||||||||||||
subsidiaries | 38,748 | 38,684 | 34,067 | |||||||||
Net income | $ | 67,109 | $ | 51,564 | $ | 45,342 |
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Statements of Cash Flows | ||||||||||||
Operating Activities | ||||||||||||
Net income | $ | 67,109 | $ | 51,564 | $ | 45,342 | ||||||
Items not requiring (providing) cash | ||||||||||||
Equity in undistributed earnings of subsidiary | (38,748 | ) | (38,684 | ) | (34,067 | ) | ||||||
Compensation expense for stock option grants | 737 | 564 | 483 | |||||||||
Net realized gains on sales of available-for-sale | ||||||||||||
securities | — | — | (2,735 | ) | ||||||||
Amortization of interest rate derivative and deferred costs on subordinated notes | 154 | 441 | 289 | |||||||||
Changes in | �� | |||||||||||
Prepaid expenses and other assets | 13 | 132 | 175 | |||||||||
Accounts payable and accrued expenses | 182 | (115 | ) | 1,495 | ||||||||
Income taxes | (278 | ) | 6 | (206 | ) | |||||||
Net cash provided by operating activities | 29,169 | 13,908 | 10,776 | |||||||||
Investing Activities | ||||||||||||
Proceeds from sales of available-for-sale securities | — | — | 3,583 | |||||||||
Investment in subsidiary | — | — | (60,000 | ) | ||||||||
(Investment)/Return of principal - other investments | — | — | (2 | ) | ||||||||
Net cash used in investing activities | — | — | (56,419 | ) | ||||||||
Financing Activities | ||||||||||||
Proceeds from issuance of subordinated notes | — | — | 73,472 | |||||||||
Purchases of the Company’s common stock | (903 | ) | — | — | ||||||||
Dividends paid | (15,819 | ) | (12,894 | ) | (12,232 | ) | ||||||
Stock options exercised | 2,224 | 3,247 | 2,110 | |||||||||
Net cash provided by (used in) financing activities | (14,498 | ) | (9,647 | ) | 63,350 | |||||||
Increase in Cash | 14,671 | 4,261 | 17,707 | |||||||||
Cash, Beginning of Year | 41,977 | 37,716 | 20,009 | |||||||||
Cash, End of Year | $ | 56,648 | $ | 41,977 | $ | 37,716 | ||||||
Additional Cash Payment Information | ||||||||||||
Interest paid | $ | 5,001 | $ | 5,059 | $ | 846 |
2018 | 2017 | 2016 | ||||||||||
(In Thousands) | ||||||||||||
Statements of Comprehensive Income | ||||||||||||
Net Income | $ | 67,109 | $ | 51,564 | $ | 45,342 | ||||||
Unrealized appreciation on available-for-sale securities, net of taxes (credit) of $0, $0 and $(90), for 2018, 2017 and 2016, respectively | — | — | (158 | ) | ||||||||
Reclassification adjustment for gains included in net income, net of taxes of $0, $0 and $(993), for 2018, 2017 and 2016, respectively | — | — | (1,742 | ) | ||||||||
Change in fair value of cash flow hedge, net of taxes | ||||||||||||
of $0, $93 and $50 for 2018, 2017 and | ||||||||||||
2016, respectively | — | 161 | 87 | |||||||||
Comprehensive income (loss) of subsidiaries | 8,114 | (478 | ) | (2,293 | ) | |||||||
Comprehensive Income | $ | 75,223 | $ | 51,247 | $ | 41,236 | ||||||
Note 28: | Sale of Branches and Related Deposits |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. |
ITEM 9A. | CONTROLS AND PROCEDURES. |
ITEM 9B. | OTHER INFORMATION. |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. |
ITEM 11. | EXECUTIVE COMPENSATION. |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. |
Equity Compensation Plan Information | |||
Plan Category | Number of Shares to be issued upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Shares Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Shares Reflected in the First Column) |
Equity compensation plans approved by stockholders | 773,236 | $43.886 | 614,850(1) |
Equity compensation plans not approved by stockholders | N/A | N/A | N/A |
Total | 773,236 | $43.886 | 614,850 |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES. |
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. |
(a) | List of Documents Filed as Part of This Report | ||
(1) | Financial Statements | ||
The Consolidated Financial Statements and Independent Auditor's Report are included in Item 8. | |||
(2) | Financial Statement Schedules | ||
Inapplicable. | |||
(3) | List of Exhibits | ||
Exhibits incorporated by reference below are incorporated by reference pursuant to Rule 12b-32. | |||
(2) | Plan of acquisition, reorganization, arrangement, liquidation, or succession | ||
The Purchase and Assumption Agreement, dated as of March 20, 2009, among Federal Deposit Insurance Corporation, Receiver of TeamBank, N.A., Paola, Kansas, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File no. 000-18082) as Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on March 26, 2009 is incorporated herein by reference as Exhibit 2(i). | |||
The Purchase and Assumption Agreement, dated as of September 4, 2009, among Federal Deposit Insurance Corporation, Receiver of Vantus Bank, Sioux City, Iowa, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File no. 000-18082) as Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on September 11, 2009 is incorporated herein by reference as Exhibit 2(ii). | |||
The Purchase and Assumption Agreement, dated as of October 7, 2011, among Federal Deposit Insurance Corporation, Receiver of Sun Security Bank, Ellington, Missouri, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File no. 000-18082) as Exhibit 2.1(iii) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 is incorporated herein by reference as Exhibit 2(iii). | |||
The Purchase and Assumption Agreement, dated as of April 27, 2012, among Federal Deposit Insurance Corporation, Receiver of Inter Savings Bank, FSB, Maple Grove, Minnesota, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File no. 000-18082) as Exhibit 2.1(iv) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 is incorporated herein by reference as Exhibit 2(iv). | |||
The Purchase and Assumption Agreement All Deposits, dated as of June 20, 2014, among Federal Deposit Insurance Corporation, Receiver of Valley Bank, Moline, Illinois, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File no. 000-18082) as Exhibit 2.1(iv) to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 is incorporated herein by reference as Exhibit 2(v) | |||
(3) | Articles of incorporation and Bylaws | ||
The Registrant's Charter previously filed with the Commission as Appendix D to the Registrant's Definitive Proxy Statement on Schedule 14A filed on March 31, 2004 (File No. 000-18082), is incorporated herein by reference as Exhibit 3.1. | |||
The Articles Supplementary to the Registrant's Charter setting forth the terms of the Registrant's Senior Non-Cumulative Perpetual Preferred Stock, Series A, previously filed with the Commission as Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on August 18, 2011, are incorporated herein by reference as Exhibit 3(i). | |||
The Registrant's Bylaws, previously filed with the Commission (File no. 000-18082) as Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed on October 19, 2007, are incorporated herein by reference as Exhibit 3.2. | |||
(4) | Instruments defining the rights of security holders, including indentures | ||
The Company hereby agrees to furnish the SEC upon request, copies of the instruments defining the rights of the holders of each issue of the Registrant's long-term debt. | |||
(9) | Voting trust agreement | ||
Inapplicable. | |||
(10) | Material contracts | ||
The Registrant's 2003 Stock Option and Incentive Plan previously filed with the Commission (File No. 000-18082) as Annex A to the Registrant's Definitive Proxy Statement on Schedule 14A filed on April 14, 2003, is incorporated herein by reference as Exhibit 10.2. | |||
The employment agreement dated September 18, 2002 between the Registrant and William V. Turner previously filed with the Commission (File no. 000-18082) as Exhibit 10.2 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2003, is incorporated herein by reference as Exhibit 10.3. | |||
The employment agreement dated September 18, 2002 between the Registrant and Joseph W. Turner previously filed with the Commission (File no. 000-18082) as Exhibit 10.4 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2003, is incorporated herein by reference as Exhibit 10.4. | |||
The form of incentive stock option agreement under the Registrant's 2003 Stock Option and Incentive Plan previously filed with the Commission as Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File no. 000-18082) filed on February 24, 2005 is incorporated herein by reference as Exhibit 10.5. | |||
The form of non-qualified stock option agreement under the Registrant's 2003 Stock Option and Incentive Plan previously filed with the Commission as Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File no. 000-18082) filed on February 24, 2005 is incorporated herein by reference as Exhibit 10.6. | |||
A description of the current salary and bonus arrangements for the Registrant's executive officers for 2019 is attached as Exhibit 10.7. | |||
A description of the current fee arrangements for the Registrant's directors is attached as Exhibit 10.8. | |||
Small Business Lending Fund – Securities Purchase Agreement, dated August 18, 2011, between the Registrant and the Secretary of the United States Department of the Treasury, previously filed with the Commission as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on August 18, 2011, is incorporated herein by reference as Exhibit 10.9. | |||
The Registrant's 2013 Equity Incentive Plan previously filed with the Commission (File No. 000-18082) as Appendix A to the Registrant's Definitive Proxy Statement on Schedule 14A filed on April 4, 2013, is incorporated herein by reference as Exhibit 10.10. | |||
The form of incentive stock option award agreement under the Registrant's 2013 Equity Incentive Plan previously filed with the Commission as Exhibit 10.2 to the Registrant's Registration Statement on Form S-8 (No. 333-189497) filed on June 20, 2013 is incorporated herein by reference as Exhibit 10.11. | |||
The form of non-qualified stock option award agreement under the Registrant's 2013 Equity Incentive Plan previously filed with the Commission as Exhibit 10.3 to the Registrant's Registration Statement on Form S-8 (No. 333-189497) filed on June 20, 2013 is incorporated herein by reference as Exhibit 10.12. | |||
The form of stock appreciation right award agreement under the Registrant's 2013 Equity Incentive Plan previously filed with the Commission as Exhibit 10.4 to the Registrant's Registration Statement on Form S-8 (No. 333-189497) filed on June 20, 2013 is incorporated herein by reference as Exhibit 10.13. | |||
The form of restricted stock award agreement under the Registrant's 2013 Equity Incentive Plan previously filed with the Commission as Exhibit 10.5 to the Registrant's Registration Statement on Form S-8 (No. 333-189497) filed on June 20, 2013 is incorporated herein by reference as Exhibit 10.14. | |||
The Registrant's 2018 Omnibus Incentive Plan previously filed with the Commission (File No. 000-18082) as Appendix A to the Registrant's Definitive Proxy Statement on Schedule 14A filed on March 27, 2018, is incorporated herein by reference as Exhibit 10.15. | |||
The form of incentive stock option award agreement under the Registrant's 2018 Omnibus Incentive Plan previously filed with the Commission as Exhibit 10.2 to the Registrant's Registration Statement on Form S-8 (File no. 333-225665) filed on June 15, 2018 is incorporated herein by reference as Exhibit 10.16. | |||
The form of non-qualified stock option award agreement under the Registrant's 2018 Omnibus Incentive Plan previously filed with the Commission as Exhibit 10.3 to the Registrant's Registration Statement on Form S-8 (File no. 333-225665) filed on June 15, 2018 is incorporated herein by reference as Exhibit 10.17. | |||
(13) | Annual report to security holders, Form 10-Q or quarterly report to security holders | ||
Inapplicable. | |||
(14) | Code of Ethics | ||
The Registrant's Code of Business Conduct and Ethics previously filed with the Commission as Exhibit 14 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2007 is incorporated herein by reference as Exhibit 14. | |||
(16) | Letter re change in certifying accountant | ||
Inapplicable. |
(18) | Letter re change in accounting principles | ||
Inapplicable. | |||
(21) | Subsidiaries of the registrant | ||
A list of the Registrant's subsidiaries is attached hereto as Exhibit 21. | |||
(22) | Published report regarding matters submitted to vote of security holders | ||
Inapplicable. | |||
(23) | Consents of experts and counsel | ||
The consent of BKD, LLP to the incorporation by reference into the Form S-3 (File no. 333-212444) and Form S-8s (File nos. 333-104930, 333-106190, 333-189497 and 333-225665) previously filed with the Commission of their report on the financial statements included in this Form 10-K, is attached hereto as Exhibit 23. | |||
(24) | Power of attorney | ||
Included as part of signature page. | |||
(31.1) | Rule 13a-14(a) Certification of Chief Executive Officer | ||
Attached as Exhibit 31.1 | |||
(31.2) | Rule 13a-14(a) Certification of Treasurer | ||
Attached as Exhibit 31.2 | |||
(32) | Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) | ||
Attached as Exhibit 32. | |||
(101) | Attached as Exhibit 101 are the following financial statements from the Great Southern Bancorp, Inc. Annual Report on Form 10-K for the year ended December 31, 2018, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated statements of financial condition, (ii) consolidated statements of income, (iii) consolidated statements of cash flows and (iv) the notes to consolidated financial statements. |
GREAT SOUTHERN BANCORP, INC. | ||
Date: March 7, 2019 | By: | /s/ Joseph W. Turner Joseph W. Turner President, Chief Executive Officer and Director ( Duly Authorized Representative ) |
Signature | Capacity in Which Signed | Date |
/s/ Joseph W. Turner Joseph W. Turner | President, Chief Executive Officer and Director (Principal Executive Officer) | March 7, 2019 |
/s/ William V. Turner William V. Turner | Chairman of the Board | March 7, 2019 |
/s/ Rex A. Copeland Rex A. Copeland | Treasurer (Principal Financial Officer and Principal Accounting Officer) | March 7, 2019 |
/s/ Kevin R. Ausburn Kevin R. Ausburn | Director | March 7, 2019 |
/s/ Julie T. Brown Julie T. Brown | Director | March 7, 2019 |
/s/ Thomas J. Carlson Thomas J. Carlson | Director | March 7, 2019 |
/s/ Larry D. Frazier Larry D. Frazier | Director | March 7, 2019 |
/s/ Debra M. Hart Debra M. Hart | Director | March 7, 2019 |
/s/ Douglas M. Pitt Douglas M. Pitt | Director | March 7, 2019 |
/s/ Earl A. Steinert, Jr. Earl A. Steinert, Jr. | Director | March 7, 2019 |