Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 22, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Union Bankshares Corp | ||
Entity Central Index Key | 883,948 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 1,053,504,694 | ||
Entity Common Stock, Shares Outstanding | 43,630,317 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 120,758 | $ 111,323 |
Interest-bearing deposits in other banks | 58,030 | 29,670 |
Federal funds sold | 449 | 1,667 |
Total cash and cash equivalents | 179,237 | 142,660 |
Securities available for sale, at fair value | 946,764 | 903,292 |
Securities held to maturity, at carrying value | 201,526 | 205,374 |
Restricted stock, at cost | 60,782 | 51,828 |
Loans held for sale, at fair value | 36,487 | 36,030 |
Loans held for investment, net of deferred fees and costs | 6,307,060 | 5,671,462 |
Less allowance for loan losses | 37,192 | 34,047 |
Net loans held for investment | 6,269,868 | 5,637,415 |
Premises and equipment, net | 122,027 | 126,028 |
Other real estate owned, net of valuation allowance | 10,084 | 15,299 |
Goodwill | 298,191 | 293,522 |
Amortizable intangibles, net | 20,602 | 23,310 |
Bank owned life insurance | 179,318 | 173,687 |
Other assets | 101,907 | 84,846 |
Total assets | 8,426,793 | 7,693,291 |
LIABILITIES | ||
Noninterest-bearing demand deposits | 1,393,625 | 1,372,937 |
Interest-bearing deposits | 4,985,864 | 4,590,999 |
Total deposits | 6,379,489 | 5,963,936 |
Securities sold under agreements to repurchase | 59,281 | 84,977 |
Other short-term borrowings | 517,500 | 304,000 |
Long-term borrowings | 413,308 | 291,198 |
Other liabilities | 56,183 | 53,813 |
Total liabilities | 7,425,761 | 6,697,924 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $1.33 par value, shares authorized 100,000,000; issued and outstanding, 43,609,317 shares and 44,785,674 shares, respectively. | 57,506 | 59,159 |
Additional paid-in capital | 605,397 | 631,822 |
Retained earnings | 341,938 | 298,134 |
Accumulated other comprehensive income | (3,809) | 6,252 |
Total stockholders' equity | 1,001,032 | 995,367 |
Total liabilities and stockholders' equity | $ 8,426,793 | $ 7,693,291 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1.33 | $ 1.33 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 43,609,317 | 44,785,674 |
Common stock, shares outstanding (in shares) | 43,609,317 | 44,785,674 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 262,567 | $ 247,587 | $ 246,366 |
Interest on deposits in other banks | 244 | 94 | 60 |
Interest and dividends on securities: | |||
Taxable | 18,319 | 15,606 | 15,226 |
Nontaxable | 13,790 | 13,484 | 13,293 |
Total interest and dividend income | 294,920 | 276,771 | 274,945 |
Interest expense: | |||
Interest on deposits | 17,731 | 15,553 | 11,034 |
Interest on short-term borrowings | 2,894 | 944 | 566 |
Interest on long-term borrowings | 9,145 | 8,440 | 8,327 |
Total interest expense | 29,770 | 24,937 | 19,927 |
Net interest income | 265,150 | 251,834 | 255,018 |
Provision for credit losses | 9,100 | 9,571 | 7,800 |
Net interest income after provision for credit losses | 256,050 | 242,263 | 247,218 |
Noninterest income: | |||
Service charges on deposit accounts | 19,496 | 18,904 | 17,721 |
Other service charges, commissions and fees | 17,175 | 15,575 | 14,983 |
Fiduciary and asset management fees | 10,199 | 9,141 | 9,036 |
Mortgage banking income, net | 10,953 | 9,767 | 9,707 |
Gains on securities transactions, net | 205 | 1,486 | 1,695 |
Other-than-temporary impairment losses | 0 | (300) | 0 |
Bank owned life insurance income | 5,513 | 4,593 | 4,648 |
Loan-related interest rate swap fees | 4,254 | 412 | 293 |
Other operating income | 3,112 | 5,429 | 3,204 |
Total noninterest income | 70,907 | 65,007 | 61,287 |
Noninterest expenses: | |||
Salaries and benefits | 117,103 | 104,192 | 107,804 |
Occupancy expenses | 19,528 | 20,053 | 20,136 |
Furniture and equipment expenses | 10,475 | 11,674 | 11,872 |
Printing, postage, and supplies | 4,692 | 5,124 | 4,924 |
Communications expense | 3,850 | 4,634 | 4,902 |
Technology and data processing | 15,368 | 13,667 | 12,465 |
Professional services | 8,085 | 6,309 | 5,594 |
Marketing and advertising expense | 7,784 | 7,215 | 6,406 |
FDIC assessment premiums and other insurance | 5,406 | 5,376 | 6,125 |
Other taxes | 5,456 | 6,227 | 5,784 |
Loan-related expenses | 4,790 | 4,097 | 3,469 |
OREO and credit-related expenses | 2,602 | 8,911 | 10,164 |
Amortization of intangible assets | 7,210 | 8,445 | 9,795 |
Training and other personnel costs | 3,435 | 3,675 | 2,893 |
Acquisition and conversion costs | 0 | 0 | 20,345 |
Other expenses | 6,919 | 7,283 | 5,538 |
Total noninterest expenses | 222,703 | 216,882 | 238,216 |
Income before income taxes | 104,254 | 90,388 | 70,289 |
Income tax expense | 26,778 | 23,309 | 18,125 |
Net income | $ 77,476 | $ 67,079 | $ 52,164 |
Basic earnings per common share (in dollars per share) | $ 1.77 | $ 1.49 | $ 1.13 |
Diluted earnings per common share (in dollars per share) | 1.77 | 1.49 | 1.13 |
Dividends declared per common share (in dollars per share) | $ 0.77 | $ 0.68 | $ 0.58 |
Basic weighted average number of common shares outstanding (in shares) | 43,784,193 | 45,054,938 | 46,036,023 |
Diluted weighted average number of common shares outstanding (in shares) | 43,890,271 | 45,138,891 | 46,130,895 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 77,476 | $ 67,079 | $ 52,164 |
Cash flow hedges: | |||
Change in fair value of cash flow hedges | 270 | (1,394) | (2,393) |
Reclassification adjustment for losses (gains) included in net income (net of tax, $274, $335, and $318 for the years ended December 31, 2016, 2015, and 2014, respectively) | 508 | 621 | 591 |
AFS securities: | |||
Unrealized holding gains (losses) arising during period (net of tax, $4,408, $1,960, and $9,202 for the years ended December 31, 2016, 2015, and 2014, respectively) | (8,186) | (3,640) | 17,089 |
Reclassification adjustment for losses (gains) included in net income (net of tax, $72, $415, and $453 for the years ended December 31, 2016, 2015, and 2014, respectively) | (133) | (771) | (842) |
HTM securities: | |||
Accretion of unrealized gain for AFS securities transferred to HTM (net of tax, $568, $441, and $0 for the years ended December 31, 2016, 2015 and 2014, respectively) | (1,055) | (819) | 0 |
Bank owned life insurance: | |||
Unrealized holding losses arising during period | (1,728) | 0 | 0 |
Reclassification adjustment for losses included in net income | 263 | 0 | 0 |
Other comprehensive income (loss) | (10,061) | (6,003) | 14,445 |
Comprehensive income | $ 67,415 | $ 61,076 | $ 66,609 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Tax expense (benefit) related to reclassification adjustment for losses included in net income | $ (274) | $ (335) | $ (318) |
Tax expense (benefit) related to unrealized holding (losses) gains arising during period | 4,408 | 1,960 | 9,202 |
Tax expense (benefit) related to (gains) losses on the sale of securities | 72 | 415 | 453 |
Tax expense (benefit) related to (gains) losses for AFS securities transferred to HTM | $ (568) | $ (441) | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative impact resulting from the adoption of ASU-2014-01 | $ 429,000 | ||||
Beginning balance at Dec. 31, 2013 | $ 437,810,000 | $ 33,020,000 | $ 170,770,000 | 236,210,000 | $ (2,190,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 52,164,000 | 52,164,000 | |||
Other comprehensive income (loss), (net of taxes) | 14,445,000 | 14,445,000 | |||
Issuance of common stock in regard to acquisition | 549,523,000 | 29,457,000 | 520,066,000 | ||
Dividends on common stock | (25,494,000) | (25,494,000) | |||
Stock purchased under stock repurchase plan | (52,599,000) | (2,826,000) | (49,773,000) | ||
Issuance of common stock under Dividend Reinvestment Plan | 0 | 69,000 | 1,135,000 | (1,204,000) | |
Issuance of common stock under Equity Compensation Plans | 1,230,000 | 100,000 | 1,130,000 | ||
Issuance of common stock for services rendered | 713,000 | 39,000 | 674,000 | ||
Vesting of restricted stock, including tax effects, under Equity Compensation Plan | (1,602,000) | (64,000) | (1,538,000) | ||
Stock-based compensation expense | 979,000 | 979,000 | |||
Ending balance at Dec. 31, 2014 | 977,169,000 | 59,795,000 | 643,443,000 | 261,676,000 | 12,255,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative impact resulting from the adoption of ASU-2014-01 | 856,000 | ||||
Net income | 67,079,000 | 67,079,000 | |||
Other comprehensive income (loss), (net of taxes) | (6,003,000) | (6,003,000) | |||
Issuance of common stock in regard to acquisition | 0 | ||||
Dividends on common stock | (29,082,000) | (29,082,000) | |||
Stock purchased under stock repurchase plan | (16,260,000) | (889,000) | (15,371,000) | ||
Issuance of common stock under Dividend Reinvestment Plan | 0 | 93,000 | 1,446,000 | (1,539,000) | |
Issuance of common stock under Equity Compensation Plans | 928,000 | 80,000 | 848,000 | ||
Issuance of common stock for services rendered | 564,000 | 32,000 | 532,000 | ||
Vesting of restricted stock, including tax effects, under Equity Compensation Plan | (416,000) | 48,000 | (464,000) | ||
Stock-based compensation expense | 1,388,000 | 1,388,000 | |||
Ending balance at Dec. 31, 2015 | 995,367,000 | 59,159,000 | 631,822,000 | 298,134,000 | 6,252,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 77,476,000 | 77,476,000 | |||
Other comprehensive income (loss), (net of taxes) | (10,061,000) | (10,061,000) | |||
Issuance of common stock in regard to acquisition | 453,000 | 23,000 | 430,000 | ||
Dividends on common stock | (33,672,000) | (33,672,000) | |||
Stock purchased under stock repurchase plan | (33,177,000) | (1,877,000) | (31,300,000) | ||
Issuance of common stock under Equity Compensation Plans | 1,429,000 | 118,000 | 1,311,000 | ||
Issuance of common stock for services rendered | 533,000 | 25,000 | 508,000 | ||
Vesting of restricted stock, including tax effects, under Equity Compensation Plan | (586,000) | 58,000 | (644,000) | ||
Stock-based compensation expense | 3,270,000 | 3,270,000 | |||
Ending balance at Dec. 31, 2016 | $ 1,001,032,000 | $ 57,506,000 | $ 605,397,000 | $ 341,938,000 | $ (3,809,000) |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Other comprehensive income (loss), tax | $ 4,774 | $ 2,481 | $ 9,067 |
Issuance of Common Stock in regard to acquisition, shares | 17,232 | 0 | 22,147,874 |
Dividends on common stock (in dollars per share) | $ 0.77 | $ 0.68 | $ 0.58 |
Stock purchased under stock repurchase plan, shares | 1,411,131 | 668,522 | 2,125,264 |
Issuance of common stock under Dividend Reinvestment Plan, shares | 0 | 69,628 | 52,252 |
Issuance of common stock under Equity Compensation Plan, shares | 88,409 | 60,637 | 75,282 |
Vesting of restricted stock under Equity Compensation Plan, shares | 43,620 | 36,373 | 47,954 |
Issuance of common stock for services rendered, shares | 19,132 | 23,800 | 30,057 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Operating activities: | ||||
Net income | $ 77,476 | $ 67,079 | $ 52,164 | |
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | ||||
Depreciation of premises and equipment | 10,215 | 10,776 | 10,742 | |
Writedown of OREO | 1,017 | 6,002 | 7,646 | |
Other-than-temporary impairment recognized in earnings | 0 | 300 | 0 | |
Amortization, net | 13,555 | 14,951 | 16,337 | |
Amortization (accretion) related to acquisition, net | 1,534 | 1,823 | (255) | |
Provision for credit losses | 9,100 | 9,571 | 7,800 | |
Gains on securities transactions, net | (205) | (1,486) | (1,695) | |
Bank owned life insurance income | (5,513) | (4,593) | (4,648) | |
Deferred tax expense (benefit) | 243 | (1,212) | 2,644 | |
Decrease (increase) in loans held for sale, net | (457) | 6,489 | 21,530 | |
Gains on sales of other real estate owned, net | (342) | (260) | (1,381) | |
Losses on sales of premises, net | 125 | 89 | 184 | |
Gains on sale of loans held for investment | 0 | (470) | 0 | |
Stock-based compensation expenses | 3,270 | 1,388 | 979 | |
Issuance of common stock for services | 533 | 564 | 713 | |
Net decrease (increase) in other assets | (14,810) | 2,692 | 9,896 | |
Net increase (decrease) in other liabilities | (1,898) | (2,780) | 4,564 | |
Net cash and cash equivalents provided by operating activities | 93,843 | 110,923 | 127,220 | |
Investing activities: | ||||
Purchases of securities available for sale and restricted stock | (259,020) | (259,761) | (411,916) | |
Purchases of securities held to maturity | (2,390) | (9,830) | 0 | |
Proceeds from sales of securities available for sale and restricted stock | 69,516 | 101,154 | 289,389 | |
Proceeds from maturities, calls and paydowns of securities available for sale | 115,670 | 142,644 | 143,656 | |
Proceeds from maturities, calls and paydowns of securities held to maturity | 2,686 | 3,680 | 0 | |
Net increase in loans held for investment | (637,207) | (356,300) | (74,753) | |
Proceeds from sale of loans held for investment | 0 | 27,351 | 0 | |
Net increase in premises and equipment | (6,339) | (3,870) | (7,124) | |
Proceeds from sales of other real estate owned | 5,837 | 10,309 | 17,808 | |
Improvements to other real estate owned | 0 | (308) | (686) | |
Purchases of BOLI policies | 0 | (30,000) | 0 | |
Cash paid for equity-method investments | 0 | (355) | (60) | |
Cash paid in acquisition | (4,077) | 0 | 0 | |
Cash acquired in bank acquisitions | 207 | 0 | 49,989 | |
Net cash and cash equivalents provided by (used in) investing activities | (715,117) | (375,286) | 6,303 | |
Financing activities: | ||||
Net increase in noninterest-bearing deposits | 20,688 | 173,559 | 95,664 | |
Net increase (decrease) in interest-bearing deposits | 394,865 | 153,450 | (164,696) | |
Net increase in short-term borrowings | 187,804 | 1,584 | 74,211 | |
Proceeds from issuance of long-term debt | 178,000 | 0 | 0 | |
Repayments of long-term debt | (57,500) | (10,000) | 0 | |
Cash dividends paid - common stock | (33,672) | (29,082) | (25,494) | |
Repurchase of common stock | (33,177) | (16,260) | (52,599) | |
Issuance of common stock | 1,429 | 928 | 1,230 | |
Vesting of restricted stock, including tax effects | (586) | (416) | (1,602) | |
Net cash and cash equivalents provided by (used in) financing activities | 657,851 | 273,763 | (73,286) | |
Increase in cash and cash equivalents | 36,577 | 9,400 | 60,237 | |
Cash and cash equivalents at beginning of the period | 142,660 | 133,260 | 73,023 | |
Cash and cash equivalents at end of the period | 179,237 | 142,660 | 133,260 | |
Cash payments for: | ||||
Interest | 29,576 | 27,526 | 28,394 | |
Income taxes | 27,900 | 21,400 | 17,500 | |
Supplemental schedule of noncash investing and financing activities | ||||
Transfer from securities available for sale to securities held to maturity | 0 | 201,822 | 0 | |
Transfers between loans and other real estate owned | 1,297 | 700 | 2,141 | |
Transfers from bank premises to other real estate owned | 0 | 2,224 | 10,929 | |
Issuance of common stock in exchange for net assets in acquisition | 453 | 0 | 549,523 | |
Transactions related to bank acquisition | ||||
Assets acquired | 4,668 | 0 | 2,957,521 | |
Liabilities assumed | $ 4,807 | [1] | $ 0 | $ 2,642,120 |
[1] | 2016 includes contingent consideration related to ODCM acquisition. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Effective April 25, 2014, the Company changed its name from “Union First Market Bankshares Corporation” to “Union Bankshares Corporation.” The name change was approved at the Company’s annual meeting of shareholders held April 22, 2014. Effective February 16, 2015, the Company changed its subsidiary bank’s name from “Union First Market Bank” to “Union Bank & Trust.” The accounting policies and practices of Union Bankshares Corporation and subsidiaries conform to GAAP and follow general practices within the banking industry. Major policies and practices are described below. Nature of Operations - Headquartered in Richmond, Virginia, the Company is the largest community banking organization headquartered in Virginia and operates in all major banking markets throughout the Commonwealth. The Company is the holding company for Union Bank & Trust, which provides banking, trust, and wealth management services and has a statewide presence of 114 bank branches and approximately 185 ATMs. Non-bank affiliates of the Company include: Union Mortgage Group, Inc., which provides a full line of mortgage products; Union Insurance Group, LLC, which provides various lines of insurance products; and Old Dominion Capital Management, Inc., which provides investment advisory services. Effective January 1, 2016, Union Investment Services, Inc., which provided securities, brokerage, and investment advisory services, was fully consolidated with the Bank. Principles of Consolidation - The consolidated financial statements include the accounts of the Company, which is a financial holding company and a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Union Bank & Trust and of Union Insurance Group, LLC, Union Mortgage Group, Inc., and Old Dominion Capital Management, Inc. The Company’s Statutory Trusts I and II, wholly owned subsidiaries of the Company, were formed for the purpose of issuing redeemable trust preferred capital notes in connection with two of the Company’s acquisitions prior to 2006. ASC 860, Transfers and Servicing , precludes the Company from consolidating Statutory Trusts I and II. The subordinated debts payable to the trusts are reported as liabilities of the Company. All significant inter-company balances and transactions have been eliminated. Variable Interest Entities - Current accounting guidance states that if a business enterprise is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of the activities of the variable interest entity should be included in the consolidated financial statements of the business enterprise. This interpretation explains how to identify variable interest entities and how an enterprise assesses its interest in a variable interest entity to decide whether to consolidate the entity. It also requires existing unconsolidated variable interest entities to be consolidated by their primary beneficiaries if the entities do not effectively disperse risks among parties involved. Variable interest entities that effectively disperse risks will not be consolidated unless a single party holds an interest or combination of interests that effectively recombines risks that were previously dispersed. Management has evaluated the Company’s investment in variable interest entities. The Company’s primary exposure to variable interest entities are the trust preferred securities structures. This accounting guidance has not had a material impact on the financial condition or operating results of the Company. Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the ALL, the valuation of goodwill and intangible assets, other real estate owned, deferred tax assets and liabilities, other-than-temporary impairment of securities, and the fair value of financial instruments. Business Combinations - Business combinations are accounted for under ASC 805, Business Combinations , using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company utilizes third party valuations, appraisals, and internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquiree and the closing date and apply applicable recognition principles and conditions. If they are necessary to implement its plan to exit an activity of an acquiree, costs that the Company expects, but is not obligated, to incur in the future are not liabilities at the acquisition date, nor are costs to terminate the employment or relocate an acquiree’s employees. The Company does not recognize these costs as part of applying the acquisition method. Instead, the Company recognizes these costs as expenses in its post-combination financial statements in accordance with other applicable GAAP. Acquisition-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants, and advertising costs. The Company will account for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities will be recognized in accordance with other applicable accounting guidance. These acquisition-related costs are included within the Company’s Consolidated Statements of Income classified within the noninterest expense caption. Cash and Cash Equivalents - For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, money market investments, other interest-bearing deposits, and federal funds sold. Investment Securities - Securities classified as available for sale are those debt and equity securities that management intends to hold for an indefinite period of time, including securities used as part of the Company’s asset/liability strategy, and that may be sold in response to changes in interest rates, liquidity needs, or other factors. Securities available for sale are reported at fair value, with unrealized gains or losses, net of deferred taxes, included in accumulated other comprehensive income in stockholders’ equity. Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost. Transfers of debt securities into the held to maturity category from the available for sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income and in the carrying value of the held to maturity securities. Such amounts are amortized over the remaining life of the security. Securities classified as held for trading are those debt and equity securities that are bought and held principally for the purpose of selling them in the near term and are reported at fair value, with unrealized gains and losses included in earnings. The Company has no securities in this category. Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating OTTI losses, an impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or, the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Due to restrictions placed upon the Company’s common stock investments in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications. The FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the member’s total assets at December 31, 2016 and 2015 . The Federal Reserve Bank requires the Company to maintain stock with a par value equal to 6% of its outstanding capital. Loans Held for Sale - For loans originated prior to 2015, loans originated and intended for sale in the secondary market are sold, servicing released, and carried at the lower of cost or estimated fair value, which is determined in the aggregate based on sales commitments to permanent investors or on current market rates for loans of similar quality and type. During 2015, the Company transitioned from the lower of cost or estimated fair value method and elected the fair value option for loans held for sale. For further information regarding the fair value method and assumptions, refer to Note 13 “Fair Value Measurements.” In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The change in fair value of loans held for sale is recorded as a component of “Mortgage banking income, net” within the Company’s Consolidated Statements of Income. Loans - The Company originates commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by commercial and residential real estate loans (including acquisition and development loans and residential construction loans) throughout its market area. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in those markets. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for any charge-offs, the ALL, and any deferred fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Beginning January 1, 2016, the Company enhanced the loan segmentation to better align with how the Company manages credit risk and to better align with industry practice. Below is a summary of the new loan segmentation: Construction and Land Development – construction loans generally made to commercial and residential builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a commitment for permanent financing from the Company, or (b) from the sale of the constructed property. These loans carry more risk than both types of commercial real estate term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in commercial real estate term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations to any one business or industry. Also, included in this category are loans generally made to residential home builders to support their lot and home inventory needs. Repayment relies upon the successful performance of the underlying residential real estate project. This type of lending carries a higher level of risk as compared to other commercial lending. This class of lending reflects risks related to residential real estate market conditions, a functioning first and secondary market in which to sell residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations with any particular customer or geographic region. Commercial Real Estate – Owner Occupied - term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry. Commercial Real Estate – Non-Owner Occupied - term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various lines of businesses, such as retail, office, office warehouse, and hotel as well as avoiding concentrations to any one business or industry. Residential 1-4 Family – loans generally made to both commercial and residential borrowers. Residential 1-4 family loan portfolios carry risks associated with the creditworthiness of the borrower or the tenant and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans. Multifamily Real Estate – loans made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance and collection of rents due from tenants. This type of lending carries a lower level of risk as compared to other commercial lending. In addition, underwriting requirements for multifamily properties are stricter than for other non-owner-occupied property types. The Company manages this risk by avoiding concentrations with any particular customer. Commercial & Industrial – loans generally made to support the Company’s borrowers’ need for equipment/vehicle purchases and short-term or seasonal cash flow needs. Repayment relies upon the successful operation of the business. This type of lending carries a lower level of commercial credit risk as compared to other commercial lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. HELOC – the consumer HELOC portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures, such as limiting loan-to-value ratios at origination, using experienced underwriting, requiring standards for appraisers, and not making subprime loans. Auto – the consumer indirect auto lending portfolio generally carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two year old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. Consumer and all other - portfolios carry risks associated with the creditworthiness of the borrower and changes in the economic environment. The Company manages these risks through policies and procedures such as experienced underwriting, maximum debt to income ratios, and minimum borrower credit scores. Also included in this category are loans that generally support small business lines of credit and agricultural lending, neither of which are a material source of business for the Company. Nonaccruals, Past Dues, and Charge-offs The policy for placing commercial loans on nonaccrual status is generally when the loan is 90 days delinquent unless the credit is well secured and in process of collection but, generally, not later than 180 days past due. Consumer loans are typically charged-off when management judges the loan to be uncollectible but generally no later than 120 days past due for non-real estate secured loans and 180 days for real estate secured loans. These loans are generally not placed on nonaccrual status prior to charge off. Commercial loans are typically written down to net realizable value when it is determined that the Company will be unable to collect the principal amount in full and the amount is a confirmed loss, but generally not later than 180 days past due. All classes of loans are considered past due or delinquent when a contractual payment has not been satisfied. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal and interest is considered doubtful and in accordance with regulatory requirements. The process for charge-offs of impaired collateral dependent loans is discussed in detail within the “Allowance for Loan Losses” section of this Note. For both the commercial and consumer loan segments, all interest accrued but not collected for loans placed on nonaccrual status or charged-off is reversed against interest income and accrual of interest income is terminated. Payments and interest on these loans are accounted for using the cost-recovery method by applying all payments received as a reduction to the outstanding principal balance until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The determination of future payments being reasonably assured varies depending on the circumstances present with the loan; however, the timely payment of contractual amounts owed for six consecutive months is a primary indicator. In addition, the return of a loan to accrual status is considered and approved by the Company’s Special Assets Loan Committee. Allowance for Loan Losses The provision for loan losses charged to operations is an amount sufficient to bring the ALL to an estimated balance that management considers adequate to absorb probable losses inherent in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely, while recoveries of amounts previously charged-off are credited to the ALL. Management’s determination of the adequacy of the ALL is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. Management believes that the ALL is adequate. The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. The credit reviews consist of reviews by its Loan Review Group. Upon origination, each commercial loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk. This risk rating scale is the Company’s primary credit quality indicator. Consumer loans are generally not risk rated; the primary credit quality indicator for this loan segment is delinquency status. The Company has various committees that review and ensure that the ALL methodology is in accordance with GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio. The Company’s ALL consists of specific, general, and qualitative components. Specific Reserve Component The specific reserve component relates to impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Upon being identified as impaired, for loans not considered to be collateral dependent, an ALL is established when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. The impairment of collateral dependent loans is measured based on the fair value of the underlying collateral, less selling costs, compared to the carrying value of the loan. If the Company determines that the value of an impaired collateral dependent loan is less than the recorded investment in the loan, it either recognizes an impairment reserve as a specific component to be provided for in the ALL or charges off the deficiency if it is determined that such amount represents a confirmed loss. Typically, a loss is confirmed when the Company is moving towards foreclosure (or final disposition) of the underlying collateral, the collateral deficiency has not improved for two consecutive quarters, or when there is a payment default of 180 days, whichever occurs first. The Company obtains independent appraisals from a pre-approved list of independent, third party appraisal firms located in the market in which the collateral is located. The Company’s approved appraiser list is continuously maintained to ensure the list only includes such appraisers that have the experience, reputation, character, and knowledge of the respective real estate market. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. The Company’s internal Real Estate Valuation Group, which reports to the Risk and Compliance Group, performs either a technical or administrative review of all appraisals obtained. A technical review will ensure the overall quality of the appraisal, while an administrative review ensures that all of the required components of an appraisal are present. Generally, independent appraisals are updated every 12 to 24 months , or as necessary. The Company’s impairment analysis documents the date of the appraisal used in the analysis, whether the officer preparing the report deems it current, and, if not, allows for internal valuation adjustments with justification. Adjustments to appraisals generally include discounts for continued market deterioration subsequent to the appraisal date. Any adjustments from the appraised value to carrying value are documented in the impairment analysis, which is reviewed and approved by senior credit administration officers and the Special Assets Loan Committee. External appraisals are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through other valuation sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. Impairment analyses are updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period. General Reserve Component The general reserve component covers non-impaired loans and is quantitatively derived from an estimate of credit losses adjusted for various environmental factors applicable to both commercial and consumer loan segments. The estimate of credit losses is a function of the net charge-off historical loss experience to the average loan balance of the portfolio averaged during a period that management has determined to be adequately reflective of the losses inherent in the loan portfolio. Effective December 31, 2016, the Company implemented a rolling 20-quarter look back period, which is re-evaluated on a periodic basis to ensure reasonableness of period being utilized. Previously, the Company had utilized a 12-quarter look back period. The change to the 20-quarter look back period is due to the protracted recovery in the economy and management's conclusion that a 20-quarter period better reflects a full economic cycle. This change did not have a material impact on the Company's ALL. The qualitative environmental factors consist of portfolio, national/international, and local characteristics and are applied to both the commercial and consumer loan segments. The following table shows the types of environmental factors management considers: ENVIRONMENTAL FACTORS Portfolio National / International Local Experience and ability of lending team Interest rates Level of economic activity Compare ratio consideration Inflation Unemployment Pace of loan growth Unemployment Competition Footprint and expansion Gross domestic product Military/government impact Execution of loan risk rating process General market risk and other concerns Degree of oversight Legislative and regulatory environment Underwriting standards International uncertainty Delinquency levels in portfolio Home Price Index Charge-off levels in portfolio Commercial Real Estate Price Index Credit concentrations / nature and volume of the portfolio Impaired Loans- A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The impairment loan policy is the same for all segments within the commercial loan segment. For the consumer loan segment, large groups of smaller balance homogeneous loans are collectively evaluated for impairment. This evaluation subjects each of the Company’s homogenous pools to a historical loss factor derived from net charge-offs experienced over the preceding twenty quarters. The Company applies payments received on impaired loans to principal and interest based on the contractual terms until they are placed on nonaccrual status. All payments received are then applied to reduce the principal balance and recognition of interest income is terminated as previously discussed. Acquired Loans – Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALL, as credit discounts are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either acquired impaired (or PCI) or acquired performing. Acquired impaired loans reflect credit quality deterioration since origination, as it is probable at acquisition that the Company will not be able to collect all contractually required payments. These PCI loans are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality . The PCI loans are segregated into pools based on loan type and credit risk. Loan type is determined based on collateral type, purpose, and lien position. Credit risk characteristics include risk rating groups, nonaccrual status, and past due status. For valuation purposes, these pools are further disaggregated by maturity, pricing characteristics, and re-payment structure. PCI loans are written down at acquisition to fair value using an estimate of cash flows deemed to be collectible. Accordingly, such loans are no longer classified as nonaccrual even though they may be contractually past due because the Company expects to fully collect the new carrying values of such loans, which is the new cost basis arising from purchase accounting. A loan will be removed from a pool (at its carrying value) only if the loan is sold, foreclosed, or assets are received in full satisfaction of the loan. For purposes of removing the loan from the pool, the carrying value is deemed to equal the amount of principal cash flows received in lieu of the loan balance. This treatment ensures that the percentage yield calculation used to recognize accretable yield on the pool of loans is not affected. Periodically, management performs a recast of PCI loans based on updated future expected cash flows, which are updated through reassessment of default rates, loss severity, and prepayment speed assumptions. The excess of the cash flows expected to be collected over a pool’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective yield method. The accretable yield may change due to changes in the timing and amounts of expected cash flows; these changes are disclosed in Note 4 “Loans and Allowance for Loan Losses.” The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference, which represents the estimate of credit losses expected to occur and was considered in determining the fair value of loan at the acquisition date. Any subsequent increases in expected cash flows over those expected at the acquisition date in excess of fair value are adjusted through an increase in the accretable yield on a prospective basis; any decreases in expected cash flows attributable to credit deterioration are recognized by recording a provision for loan losses. The Company’s policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference for the entire pool. This removal method assumes that the amount received from resolution approximates pool performance expectations. The remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by this removal method is addressed by the quarterly cash flow evaluation process for each pool. For loans that ar |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS StellarOne On January 1, 2014, the Company completed the acquisition of StellarOne, a bank holding company based in Charlottesville, Virginia, in an all-stock transaction. StellarOne’s common shareholders received 0.9739 shares of the Company’s common stock in exchange for each share of StellarOne’s common stock, resulting in the Company issuing 22,147,874 shares of common stock at a fair value of $549.5 million . As a result of the transaction, StellarOne’s former bank subsidiary, StellarOne Bank, became a wholly owned bank subsidiary of the Company. On May 9, 2014, StellarOne Bank was merged with and into the Bank. Acquisition-related expenses associated with the acquisition of StellarOne were $20.3 million for the year ended December 31, 2014. Such costs included legal and accounting fees, lease and contract termination expenses, system conversion, operations integration, and employee severances, which were expensed as incurred. The Company did not have any acquisition-related expenses in 2015 and no material expenses in 2016. A summary of acquisition-related expenses associated with the StellarOne acquisition included on the Consolidated Statements of Income is as follows (dollars in thousands): For the year ended December 31, 2014 Salaries and employee benefits $ 7,875 Professional services 3,736 Other costs of operations 8,734 Total $ 20,345 ODCM On May 31, 2016, the Bank completed its acquisition of ODCM, a Charlottesville, Virginia based registered investment advisor with nearly $300.0 million in assets under management at the time of the acquisition. The acquisition date fair value of consideration transferred totaled $9.1 million , which consisted of $4.1 million in cash, $453,000 in stock, and the remainder being subject to a three-year earn out provision and contingent on achieving certain performance metrics. The contingent consideration is carried at fair value and is reported as a component of “Other Liabilities” on the Consolidated Balance Sheet. The fair value of this liability will be assessed at each reporting period. In connection with the transaction, the Company recorded $4.7 million in goodwill and $4.5 million of amortizable assets, which primarily relate to the value of customer relationships. The Company is amortizing these intangibles assets over the period of expected benefit, which ranges from 5 to 10 years using a straight-line method. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. The fair values are subject to refinement for up to one year after the closing date of the acquisition. The Company did not incur any material expenses related to the acquisition of ODCM. Fair Value Premiums and Discounts The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the years ended December 31, 2016 , 2015 , and 2014 (dollars in thousands): For the years ended December 31, 2016 2015 2014 Loans (1) $ 5,218 $ 4,355 $ 586 Core deposit intangible (2) (6,930 ) (8,445 ) (9,795 ) Borrowings (3) 458 424 550 Time deposits (4) — 1,843 8,914 Other amortizable intangibles (2) (280 ) — — Net impact to income before taxes $ (1,534 ) $ (1,823 ) $ 255 (1) Loan discount accretion is included in "Interest and fees on loans" in the "Interest and dividend income" section of the Company's Consolidated Statements of Income. (2) Core deposit and other intangible premium amortization is included in "Amortization of intangible assets" in the "Noninterest expense" section of the Company's Consolidated Statements of Income. (3) Borrowings premium accretion is included in "Interest on long-term borrowings" in the "Interest Expense" section of the Company's Consolidated Statements of Income. (4) Certificate of deposit discount accretion is included in "Interest on deposits" in the "Interest expense" section of the Company's Consolidated Statements of Income. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Available for Sale The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of December 31, 2016 and 2015 are summarized as follows (dollars in thousands): Amortized Gross Unrealized Estimated Cost Gains (Losses) Fair Value December 31, 2016 Obligations of states and political subdivisions $ 274,007 $ 4,962 $ (3,079 ) $ 275,890 Corporate bonds 123,674 892 (2,786 ) 121,780 Mortgage-backed securities 536,031 4,626 (5,371 ) 535,286 Other securities 13,885 — (77 ) 13,808 Total available for sale securities $ 947,597 $ 10,480 $ (11,313 ) $ 946,764 December 31, 2015 Obligations of states and political subdivisions $ 257,740 $ 10,479 $ (140 ) $ 268,079 Corporate bonds 77,628 55 (1,704 ) 75,979 Mortgage-backed securities 544,823 6,127 (2,779 ) 548,171 Other securities 11,085 — (22 ) 11,063 Total available for sale securities $ 891,276 $ 16,661 $ (4,645 ) $ 903,292 The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2016 Obligations of states and political subdivisions $ 108,440 $ (3,007 ) $ 588 $ (72 ) $ 109,028 $ (3,079 ) Mortgage-backed securities 316,469 (4,979 ) 42,096 (392 ) 358,565 (5,371 ) Corporate bonds and other securities 47,388 (1,537 ) 40,468 (1,326 ) 87,856 (2,863 ) Total available for sale $ 472,297 $ (9,523 ) $ 83,152 $ (1,790 ) $ 555,449 $ (11,313 ) December 31, 2015 Obligations of states and political subdivisions $ 8,114 $ (70 ) $ 4,950 $ (70 ) $ 13,064 $ (140 ) Mortgage-backed securities 287,113 (2,442 ) 21,660 (337 ) 308,773 (2,779 ) Corporate bonds and other securities 36,157 (751 ) 19,558 (975 ) 55,715 (1,726 ) Total available for sale $ 331,384 $ (3,263 ) $ 46,168 $ (1,382 ) $ 377,552 $ (4,645 ) As of December 31, 2016 , there were $83.2 million , or 30 issues, of individual available for sale securities that had been in a continuous loss position for more than 12 months. Additionally, these securities had an unrealized loss of $1.8 million and consisted of municipal obligations, mortgage-backed securities, and corporate bonds. As of December 31, 2015 , there were $46.2 million , or 20 issues, of individual securities that had been in a continuous loss position for more than 12 months. Additionally, these securities had an unrealized loss of $1.4 million and consisted of municipal obligations, mortgage-backed securities, corporate bonds, and other securities. The Company has determined that these securities are temporarily impaired at December 31, 2016 and 2015 for the reasons set out below: Mortgage-backed securities. This category’s unrealized losses are primarily the result of interest rate fluctuations. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not intend to sell the investments, and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired. Also, the majority of the Company’s mortgage-backed securities are agency-backed securities, which have a government guarantee. Obligations of state and political subdivisions. This category’s unrealized losses are primarily the result of interest rate fluctuations and also a certain few ratings downgrades brought about by the impact of the economic downturn on states and political subdivisions. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. Corporate bonds. The Company’s unrealized losses in corporate debt securities are related to both interest rate fluctuations and ratings downgrades for a limited number of securities. The majority of the securities remain investment grade and the Company’s analysis did not indicate the existence of a credit loss. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. The following table presents the amortized cost and estimated fair value of securities as of December 31, 2016 and 2015 , by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2016 December 31, 2015 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 21,403 $ 21,517 $ 8,380 $ 8,370 Due after one year through five years 108,198 109,778 65,326 66,996 Due after five years through ten years 300,552 301,888 296,864 301,920 Due after ten years 517,444 513,581 520,706 526,006 Total securities available for sale $ 947,597 $ 946,764 $ 891,276 $ 903,292 The following table presents available for sale securities which were pledged to secure public deposits, repurchase agreements, and for other purposes as permitted or required by law as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Estimated Fair Value Estimated Fair Value Public deposits $ 210,546 $ 184,635 Repurchase agreements 108,208 126,120 Other purposes (1) 23,350 26,546 Total pledged securities $ 342,104 $ 337,301 (1) The "Other purposes" category consists of borrowings, derivatives, and accounts held at the Bank. Held to Maturity During the second quarter of 2015 , the Company transferred securities, which it intends and has the ability to hold until maturity, with a fair value of $201.8 million on the date of transfer, from securities available for sale to securities held to maturity. The Company transferred these securities to held to maturity to reduce the impact of price volatility on capital and in consideration of changes to the regulatory environment. The securities included net pre-tax unrealized gains of $8.1 million at the date of transfer with a remaining balance of $5.2 million and $6.8 million as of December 31, 2016 and 2015 , respectively. The Company reports securities held to maturity on the Consolidated Balance Sheets at carrying value. Carrying value is amortized cost which includes any unamortized unrealized gains and losses recognized in accumulated other comprehensive income prior to reclassifying the securities from securities available for sale to securities held to maturity. Investment securities transferred into the held to maturity category from the available for sale category are recorded at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income and in the carrying value of the securities held to maturity. Such unrealized gains/(losses) are accreted over the remaining life of the security with no impact on future net income. The carrying value, gross unrealized gains and losses, and estimated fair values of securities held to maturity as of December 31, 2016 and 2015 are summarized as follows (dollars in thousands): Carrying Gross Unrealized Estimated Value (1) Gains (Losses) Fair Value December 31, 2016 Obligations of states and political subdivisions $ 201,526 $ 1,617 $ (828 ) $ 202,315 December 31, 2015 Obligations of states and political subdivisions $ 205,374 $ 5,748 $ (1,685 ) $ 209,437 (1) The carrying value includes $5.2 million and $6.8 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion, as of December 31, 2016 and 2015 , respectively. The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s held to maturity securities with unrealized losses that are not deemed to be other-than-temporarily impaired. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2016 Obligations of states and political subdivisions $ 92,841 $ (747 ) $ 648 $ (81 ) $ 93,489 $ (828 ) December 31, 2015 Obligations of states and political subdivisions $ 7,056 $ (1,685 ) $ — $ — $ 7,056 $ (1,685 ) As of December 31, 2016 , there was $648,000 , or 1 issue, of an individual held to maturity security that had been in a continuous loss position for more than 12 months. This security had an unrealized loss of $81,000 . The Company has determined that the securities in a loss position are temporarily impaired as of December 31, 2016 and 2015 for the reasons set out below: Obligations of states and political subdivisions. This category’s unrealized losses are primarily the result of interest rate fluctuations and also a certain few ratings downgrades brought about by the impact of the economic downturn on states and political subdivisions. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired. The following table presents the amortized cost and estimated fair value of held to maturity securities as of December 31, 2016 and 2015 , by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2016 December 31, 2015 Carrying Value (1) Estimated Fair Value Carrying Value (1) Estimated Fair Value Due in one year or less $ 4,403 $ 4,440 $ 1,488 $ 1,491 Due after one year through five years 28,383 28,763 4,294 4,348 Due after five years through ten years 51,730 51,522 44,736 45,501 Due after ten years 117,010 117,590 154,856 158,097 Total securities held to maturity $ 201,526 $ 202,315 $ 205,374 $ 209,437 (1) The carrying value includes $5.2 million and $6.8 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion, as of December 31, 2016 and 2015 , respectively. The following table presents the estimated fair value of held to maturity securities which were pledged to secure public deposits as permitted or required by law as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Estimated Estimated Fair Value Fair Value Public deposits $ 197,889 $ 207,140 Total pledged securities $ 197,889 $ 207,140 Restricted Stock, at cost Due to restrictions placed upon the Bank’s common stock investment in the Federal Reserve Bank and the FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications and are included as a separate line item on the Company’s Consolidated Balance Sheets. At December 31, 2016 and 2015 , the FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the Bank’s total assets. The Federal Reserve Bank required the Bank to maintain stock with a par value equal to 6% of its outstanding capital at both December 31, 2016 and 2015 . Restricted equity securities consist of Federal Reserve Bank stock in the amount of $23.8 million for both periods December 31, 2016 and 2015 and FHLB stock in the amount of $37.0 million and $28.0 million as of December 31, 2016 and 2015 , respectively. Other-Than-Temporary Impairment During each quarter and at year end the Company conducts an assessment of the securities portfolio for OTTI consideration. The assessment considers factors such as external credit ratings, delinquency coverage ratios, market price, management’s judgment, expectations of future performance, and relevant industry research and analysis. An impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Based on the assessments during the year ended December 31, 2016 , and in accordance with the guidance, no OTTI was recognized. During the year ended December 31, 2015 , the Company determined that a municipal security in the available for sale portfolio incurred credit-related OTTI of $300,000 . During the first quarter of 2016, the municipal was sold. As a result, the Company recognized an additional loss on sale of the previously written down security. During 2014 , a trust preferred security with OTTI recorded in a prior period was called at a premium. As a result, the Company recognized a gain on the call of the previously written down security of $400,000 related to the previous OTTI charge. Realized Gains and Losses The following table presents the gross realized gains and losses on the sale of securities available for sale and the proceeds from the sale of securities available for sale during the years ended December 31, 2016 , 2015 , and 2014 (dollars in thousands). The Company did not sell any investment securities that are held to maturity. 2016 2015 2014 Realized gains (losses): Gross realized gains $ 302 $ 1,597 $ 1,757 Gross realized losses (97 ) (111 ) (62 ) Net realized gains $ 205 $ 1,486 $ 1,695 Proceeds from sales of securities $ 69,516 $ 101,154 $ 289,389 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at December 31, 2016 and 2015 (dollars in thousands): 2016 2015 Construction and Land Development $ 751,131 $ 749,720 Commercial Real Estate - Owner Occupied 857,805 860,086 Commercial Real Estate - Non-Owner Occupied 1,564,295 1,270,480 Multifamily Real Estate 334,276 322,528 Commercial & Industrial 551,526 435,365 Residential 1-4 Family 1,029,547 978,469 Auto 262,071 234,061 HELOC 526,884 516,726 Consumer and all other 429,525 304,027 Total loans held for investment, net (1) $ 6,307,060 $ 5,671,462 (1) Loans, as presented, are net of deferred fees and costs totaling $1.8 million and $3.0 million as of December 31, 2016 and 2015 , respectively. On October 16, 2015, the Company entered into an agreement to sell its credit card portfolio, approximating $26.4 million in outstanding balances, and entered into an outsourcing partnership with Elan Financial Services. The Company sold these loans at a premium. The sale of the credit card portfolio resulted in an after-tax benefit of $805,000 on the Company’s Consolidated Statement of Income in 2015. As part of the agreement, the Company will continue to share in interchange fee income and finance charges. The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2016 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and still Accruing PCI Nonaccrual Current Total Loans Construction and Land Development $ 1,162 $ 232 $ 76 $ 2,922 $ 2,037 $ 744,702 $ 751,131 Commercial Real Estate - Owner Occupied 1,842 109 35 18,343 794 836,682 857,805 Commercial Real Estate - Non-Owner Occupied 2,369 — — 17,303 — 1,544,623 1,564,295 Multifamily Real Estate 147 — — 2,066 — 332,063 334,276 Commercial & Industrial 759 858 9 1,074 124 548,702 551,526 Residential 1-4 Family 7,038 534 2,048 16,200 5,279 998,448 1,029,547 Auto 2,570 317 111 — 169 258,904 262,071 HELOC 1,836 1,140 635 1,161 1,279 520,833 526,884 Consumer and all other 2,522 1,431 91 223 291 424,967 429,525 Total loans held for investment $ 20,245 $ 4,621 $ 3,005 $ 59,292 $ 9,973 $ 6,209,924 $ 6,307,060 The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2015 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and still Accruing PCI Nonaccrual Current Total Loans Construction and Land Development $ 3,155 $ 380 $ 128 $ 5,986 $ 2,113 $ 737,958 $ 749,720 Commercial Real Estate - Owner Occupied 1,714 118 103 27,388 3,904 826,859 860,086 Commercial Real Estate - Non-Owner Occupied 771 — 723 13,519 100 1,255,367 1,270,480 Multifamily Real Estate — — 272 1,555 — 320,701 322,528 Commercial & Industrial 1,056 27 124 1,813 429 431,916 435,365 Residential 1-4 Family 15,023 6,774 3,638 21,159 3,563 928,312 978,469 Auto 2,312 233 60 — 192 231,264 234,061 HELOC 2,589 1,112 762 1,791 1,348 509,124 516,726 Consumer and all other 1,167 689 19 526 287 301,339 304,027 Total loans held for investment $ 27,787 $ 9,333 $ 5,829 $ 73,737 $ 11,936 $ 5,542,840 $ 5,671,462 Nonaccrual loans totaled $10.0 million , $11.9 million , and $19.3 million at December 31, 2016 , 2015 and 2014 , respectively. Had these loans performed in accordance with their original terms, interest income of approximately $452,000 , $487,000 , and $795,000 would have been recorded in 2016 , 2015 , and 2014 , respectively. All nonaccrual loans were included in the impaired loan disclosure in 2016 and 2015 . The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2016 (dollars in thousands): 30-89 Days Past Due Greater than 90 Days Current Total Construction and Land Development $ — $ 84 $ 2,838 $ 2,922 Commercial Real Estate - Owner Occupied 271 519 17,553 18,343 Commercial Real Estate - Non-Owner Occupied 409 126 16,768 17,303 Multifamily Real Estate — — 2,066 2,066 Commercial & Industrial 44 56 974 1,074 Residential 1-4 Family 1,298 945 13,957 16,200 HELOC 175 121 865 1,161 Consumer and all other — — 223 223 Total $ 2,197 $ 1,851 $ 55,244 $ 59,292 The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2015 (dollars in thousands): 30-89 Days Past Due Greater than 90 Days Current Total Construction and Land Development $ 369 $ 241 $ 5,376 $ 5,986 Commercial Real Estate - Owner Occupied 1,139 1,412 24,837 27,388 Commercial Real Estate - Non-Owner Occupied 755 202 12,562 13,519 Multifamily Real Estate — — 1,555 1,555 Commercial & Industrial 209 21 1,583 1,813 Residential 1-4 Family 2,143 1,923 17,093 21,159 HELOC 410 458 923 1,791 Consumer and all other — — 526 526 Total $ 5,025 $ 4,257 $ 64,455 $ 73,737 The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, excluding PCI loans, by segment at December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Loans without a specific allowance Construction and Land Development $ 13,877 $ 14,353 $ — $ 33,250 $ 33,731 $ — Commercial Real Estate - Owner Occupied 5,886 6,042 — 7,781 8,983 — Commercial Real Estate - Non-Owner Occupied 1,399 1,399 — 5,328 5,325 — Multifamily Real Estate — — — 3,828 3,828 — Commercial & Industrial 648 890 — 711 951 — Residential 1-4 Family 8,496 9,518 — 7,564 8,829 — Auto — — — 7 7 — HELOC 1,017 1,094 — 1,786 2,028 — Consumer and all other 230 427 — 211 211 — Total impaired loans without a specific allowance $ 31,553 $ 33,723 $ — $ 60,466 $ 63,893 $ — Loans with a specific allowance Construction and Land Development $ 1,395 $ 1,404 $ 107 $ 3,167 $ 3,218 $ 538 Commercial Real Estate - Owner Occupied 646 646 4 3,237 3,239 358 Commercial Real Estate - Non-Owner Occupied 2,809 2,809 474 907 907 75 Commercial & Industrial 857 880 14 1,952 1,949 441 Residential 1-4 Family 3,335 3,535 200 6,065 6,153 418 Auto 169 235 1 192 199 1 HELOC 323 433 15 769 925 76 Consumer and all other 62 298 1 363 512 95 Total impaired loans with a specific allowance $ 9,596 $ 10,240 $ 816 $ 16,652 $ 17,102 $ 2,002 Total impaired loans $ 41,149 $ 43,963 $ 816 $ 77,118 $ 80,995 $ 2,002 The following table shows the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans, by segment for the years ended December 31, 2016 , 2015 and 2014 (dollars in thousands): December 31, 2016 December 31, 2015 December 31, 2014 Average Investment Interest Income Recognized Average Investment Interest Income Recognized Average Investment Interest Income Recognized Construction and Land Development $ 15,346 $ 681 $ 36,441 $ 2,265 $ 56,183 $ 2,382 Commercial Real Estate - Owner Occupied 6,290 242 11,409 348 22,719 1,017 Commercial Real Estate - Non-Owner Occupied 4,188 134 6,201 250 29,136 1,292 Multifamily Real Estate — — 3,854 244 4,657 284 Commercial & Industrial 2,800 95 3,404 139 6,426 195 Residential 1-4 Family 12,716 291 14,468 410 18,244 571 Auto 244 5 235 6 7 — HELOC 1,513 19 2,757 54 1,522 35 Consumer and all other 567 8 639 19 2,287 95 Total impaired loans $ 43,664 $ 1,475 $ 79,408 $ 3,735 $ 141,181 $ 5,871 The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology and are included in the preceding impaired loan tables. For the year ended December 31, 2016 , the recorded investment in restructured loans prior to modifications was not materially impacted by the modification. The following table provides a summary, by segment, of TDRs that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and TDRs that have been placed in nonaccrual status, which are considered to be nonperforming, as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 No. of Loans Recorded Investment Outstanding Commitment No. of Loans Recorded Investment Outstanding Commitment Performing Construction and Land Development 8 $ 3,793 $ — 6 $ 3,349 $ — Commercial Real Estate - Owner Occupied 7 3,106 — 5 1,530 — Commercial Real Estate - Non-Owner Occupied 2 2,390 — 2 2,390 — Commercial & Industrial 3 533 — 5 261 — Residential 1-4 Family 28 4,145 — 27 3,173 — Consumer and all other — — — 1 77 — Total performing 48 $ 13,967 $ — 46 $ 10,780 $ — Nonperforming Construction and Land Development 2 $ 215 $ — 2 $ 321 $ — Commercial Real Estate - Owner Occupied 2 156 — 1 137 — Commercial & Industrial 1 116 — 1 2 — Residential 1-4 Family 8 948 — 6 1,142 — HELOC — — — 1 319 — Total nonperforming 13 $ 1,435 $ — 11 $ 1,921 $ — Total performing and nonperforming 61 $ 15,402 $ — 57 $ 12,701 $ — The Company considers a default of a restructured loan to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. During the years ended December 31, 2016 and 2015 , the Company did not identify any material restructured loans that went into default that had been restructured in the twelve-month period prior to default. The following table shows, by segment and modification type, TDRs that occurred during the years ended December 31, 2016 and 2015 (dollars in thousands): 2016 2015 No. of Loans Recorded Investment at Period End No. of Loans Recorded Investment at Period End Modified to interest only, at a market rate Construction and Land Development 2 $ 325 — $ — Commercial Real Estate - Owner Occupied 2 483 — — Commercial & Industrial 1 34 1 19 Residential 1-4 Family 1 158 1 21 Total interest only at market rate of interest 6 $ 1,000 2 $ 40 Term modification, at a market rate Construction and Land Development 2 $ 1,444 — $ — Commercial Real Estate - Owner Occupied 3 1,326 3 282 Commercial & Industrial 1 444 2 162 Residential 1-4 Family 6 980 11 936 Consumer and all other — — 1 77 Total loan term extended at a market rate 12 $ 4,194 17 $ 1,457 Term modification, below market rate Construction and Land Development — $ — 1 $ 400 Commercial Real Estate - Owner Occupied — — 1 866 Residential 1-4 Family 7 1,309 7 1,039 Total loan term extended at a below market rate 7 $ 1,309 9 $ 2,305 Interest rate modification, below market rate Commercial & Industrial 1 $ 116 — $ — Total interest only at below market rate of interest 1 $ 116 — $ — Total 26 $ 6,619 28 $ 3,802 The following table shows the allowance for loan loss activity, balances for ALL, and loan balances based on impairment methodology by segment for the year ended and as of December 31, 2016 . The table below includes the provision for loan losses. As discussed in Note 1 “Summary of Significant Accounting Policies,” the Company enhanced its loan segmentation for purposes of the allowance calculation as well as its disclosures. The impact of this enhancement is reflected in the provision amounts in the table below. In addition, a $425,000 provision was recognized during the year ended December 31, 2016 for unfunded loan commitments for which the reserves are recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 6,040 $ 505 $ (958 ) $ 4,468 $ 10,055 Commercial Real Estate - Owner Occupied 4,614 152 (809 ) (156 ) 3,801 Commercial Real Estate - Non-Owner Occupied 6,929 80 (1 ) (386 ) 6,622 Multifamily Real Estate 1,606 — — (370 ) 1,236 Commercial & Industrial 3,163 483 (1,920 ) 2,901 4,627 Residential 1-4 Family 5,414 585 (900 ) 1,300 6,399 Auto 1,703 327 (1,052 ) (32 ) 946 HELOC 2,934 459 (1,457 ) (608 ) 1,328 Consumer and all other 1,644 434 (1,458 ) 1,558 2,178 Total $ 34,047 $ 3,025 $ (8,555 ) $ 8,675 $ 37,192 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 15,272 $ 107 $ 732,937 $ 9,948 $ 2,922 $ — $ 751,131 $ 10,055 Commercial Real Estate - Owner Occupied 6,532 4 832,930 3,797 18,343 — 857,805 3,801 Commercial Real Estate - Non-Owner Occupied 4,208 474 1,542,784 6,148 17,303 — 1,564,295 6,622 Multifamily Real Estate — — 332,210 1,236 2,066 — 334,276 1,236 Commercial & Industrial 1,505 14 548,947 4,613 1,074 — 551,526 4,627 Residential 1-4 Family 11,831 200 1,001,516 6,199 16,200 — 1,029,547 6,399 Auto 169 1 261,902 945 — — 262,071 946 HELOC 1,340 15 524,383 1,313 1,161 — 526,884 1,328 Consumer and all other 292 1 429,010 2,177 223 — 429,525 2,178 Total loans held for investment, net $ 41,149 $ 816 $ 6,206,619 $ 36,376 $ 59,292 $ — $ 6,307,060 $ 37,192 The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the year ended and as of December 31, 2015 . In addition, a $ 300,000 provision was recognized during the year ended December 31, 2015 for unfunded loan commitments. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 4,856 $ 720 $ (650 ) $ 1,114 $ 6,040 Commercial Real Estate - Owner Occupied 4,640 143 (481 ) 312 4,614 Commercial Real Estate - Non-Owner Occupied 7,256 239 (3,137 ) 2,571 6,929 Multifamily Real Estate 1,374 200 — 32 1,606 Commercial & Industrial 2,610 958 (2,361 ) 1,956 3,163 Residential 1-4 Family 5,607 554 (1,789 ) 1,042 5,414 Auto 1,297 290 (768 ) 884 1,703 HELOC 2,675 298 (1,100 ) 1,061 2,934 Consumer and all other 2,069 525 (1,249 ) 299 1,644 Total $ 32,384 $ 3,927 $ (11,535 ) $ 9,271 $ 34,047 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 36,417 $ 538 $ 707,317 $ 5,502 $ 5,986 $ — $ 749,720 $ 6,040 Commercial Real Estate - Owner Occupied 11,018 358 821,680 4,256 27,388 — 860,086 4,614 Commercial Real Estate - Non-Owner Occupied 6,235 75 1,250,726 6,854 13,519 — 1,270,480 6,929 Multifamily Real Estate 3,828 — 317,145 1,606 1,555 — 322,528 1,606 Commercial & Industrial 2,663 441 430,889 2,722 1,813 — 435,365 3,163 Residential 1-4 Family 13,150 418 944,160 4,996 21,159 — 978,469 5,414 Auto 199 1 233,862 1,702 — — 234,061 1,703 HELOC 2,478 76 512,457 2,858 1,791 — 516,726 2,934 Consumer and all other 574 95 302,927 1,549 526 — 304,027 1,644 Total loans held for investment, net $ 76,562 $ 2,002 $ 5,521,163 $ 32,045 $ 73,737 $ — $ 5,671,462 $ 34,047 The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the year ended and as of December 31, 2014 . Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 4,387 $ 150 $ (1,095 ) $ 1,414 $ 4,856 Commercial Real Estate - Owner Occupied 4,716 247 (643 ) 320 4,640 Commercial Real Estate - Non-Owner Occupied 5,285 41 (282 ) 2,212 7,256 Multifamily Real Estate 1,227 4 (3 ) 146 1,374 Commercial & Industrial 2,021 316 (1,557 ) 1,830 2,610 Residential 1-4 Family 6,272 1,753 (2,856 ) 438 5,607 Auto 1,414 325 (596 ) 154 1,297 HELOC 2,697 113 (976 ) 841 2,675 Consumer and all other 2,116 520 (1,012 ) 445 2,069 Total $ 30,135 $ 3,469 $ (9,020 ) $ 7,800 $ 32,384 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 51,342 $ 266 $ 593,148 $ 4,590 $ 11,890 $ — $ 656,380 $ 4,856 Commercial Real Estate - Owner Occupied 21,673 355 816,360 4,285 31,167 — 869,200 4,640 Commercial Real Estate - Non-Owner Occupied 28,648 2,017 1,129,032 5,239 25,834 — 1,183,514 7,256 Multifamily Real Estate 4,608 — 289,764 1,374 2,994 — 297,366 1,374 Commercial & Industrial 5,813 570 364,843 2,040 3,440 — 374,096 2,610 Residential 1-4 Family 14,905 1,210 941,550 4,397 26,619 — 983,074 5,607 Auto 2 — 207,811 1,297 — — 207,813 1,297 HELOC 1,325 12 520,016 2,663 2,000 — 523,341 2,675 Consumer and all other 2,097 101 247,271 1,968 1,844 — 251,212 2,069 Total loans held for investment, net $ 130,413 $ 4,531 $ 5,109,795 $ 27,853 $ 105,788 $ — $ 5,345,996 $ 32,384 The Company uses a risk rating system and past due status as the primary credit quality indicators for the loan categories. The risk rating system on a scale of 0 through 9 is used to determine risk level as used in the calculation of the allowance for loan losses; on those loans without a risk rating, the Company uses past due status to determine risk level. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows: Pass is determined by the following criteria: • Risk rated 0 loans have little or no risk and are generally General Obligation Municipal Credits with A or better debt ratings; • Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; • Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; • Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; • Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan; or • Loans that are not risk rated but that are 0 to 29 days past due. Special Mention is determined by the following criteria: • Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay; • Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position; or • Loans that are not risk rated but that are 30 to 89 days past due. Substandard is determined by the following criteria: • Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected; or • Loans that are not risk rated but that are 90 to 149 days past due. Doubtful is determined by the following criteria: • Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; • Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted; or • Loans that are not risk rated but that are over 149 days past due. The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2016 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 667,018 $ 69,311 $ 11,857 $ 23 $ 748,209 Commercial Real Estate - Owner Occupied 801,565 32,364 5,533 — 839,462 Commercial Real Estate - Non-Owner Occupied 1,505,153 37,631 4,208 — 1,546,992 Multifamily Real Estate 312,711 19,499 — — 332,210 Commercial & Industrial 539,999 9,391 1,062 — 550,452 Residential 1-4 Family 986,973 18,518 4,813 3,043 1,013,347 Auto 258,188 3,648 135 100 262,071 HELOC 519,928 4,225 969 601 525,723 Consumer and all other 425,520 3,491 40 251 429,302 Total $ 6,017,055 $ 198,078 $ 28,617 $ 4,018 $ 6,247,768 The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2015 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 663,067 $ 52,650 $ 27,980 $ 37 $ 743,734 Commercial Real Estate - Owner Occupied 800,979 20,856 8,931 1,932 832,698 Commercial Real Estate - Non-Owner Occupied 1,228,956 22,341 5,664 — 1,256,961 Multifamily Real Estate 315,128 2,017 3,828 — 320,973 Commercial & Industrial 414,333 16,724 2,396 99 433,552 Residential 1-4 Family 912,839 34,728 8,037 1,706 957,310 Auto 230,670 3,109 194 88 234,061 HELOC 507,514 4,801 1,611 1,009 514,935 Consumer and all other 299,014 3,996 231 260 303,501 Total $ 5,372,500 $ 161,222 $ 58,872 $ 5,131 $ 5,597,725 The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2016 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 1,092 $ 1,432 $ 398 $ — $ 2,922 Commercial Real Estate - Owner Occupied 5,520 8,889 3,934 — 18,343 Commercial Real Estate - Non-Owner Occupied 10,927 4,638 1,738 — 17,303 Multifamily Real Estate 343 1,723 — — 2,066 Commercial & Industrial 107 480 487 — 1,074 Residential 1-4 Family 8,557 4,455 2,672 516 16,200 HELOC 857 183 7 114 1,161 Consumer and all other 166 37 20 — 223 Total $ 27,569 $ 21,837 $ 9,256 $ 630 $ 59,292 The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2015 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 2,059 $ 1,778 $ 1,908 $ 241 $ 5,986 Commercial Real Estate - Owner Occupied 5,260 15,530 6,598 — 27,388 Commercial Real Estate - Non-Owner Occupied 4,442 7,827 1,250 — 13,519 Multifamily Real Estate 356 1,199 — — 1,555 Commercial & Industrial 144 359 1,289 21 1,813 Residential 1-4 Family 9,098 6,380 4,605 1,076 21,159 HELOC 923 410 20 438 1,791 Consumer and all other 57 379 90 — 526 Total $ 22,339 $ 33,862 $ 15,760 $ 1,776 $ 73,737 Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase. The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows. The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands): For the year ended December 31, 2016 2015 Balance at beginning of period $ 22,139 $ 28,956 Accretion (5,611 ) (6,084 ) Reclass of nonaccretable difference due to improvement in expected cash flows 5,089 3,886 Other, net (1) (1,878 ) (4,619 ) Balance at end of period $ 19,739 $ 22,139 (1) This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the year. The carrying value of the Company’s PCI loan portfolio, accounted for under ASC 310-30, totaled $59.3 million at December 31, 2016 and $73.7 million at December 31, 2015 . The outstanding balance of the Company’s PCI loan portfolio totaled $73.6 million at December 31, 2016 and $90.3 million at December 31, 2015 . The carrying value of the Company’s acquired performing loan portfolio, accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs , totaled $1.1 billion and $1.4 billion at December 31, 2016 and 2015 , respectively; the remaining discount on these loans totaled $16.9 million and $20.8 million , respectively. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT The Company’s premises and equipment as of December 31, 2016 and 2015 are as follows (dollars in thousands): 2016 2015 Land $ 29,708 $ 29,839 Land improvements and buildings 97,341 96,943 Leasehold improvements 8,760 8,313 Furniture and equipment 54,188 49,914 Construction in progress 8,827 9,030 Total 198,824 194,039 Less accumulated depreciation and amortization 76,797 68,011 Bank premises and equipment, net $ 122,027 $ 126,028 Depreciation expense for the years ended December 31, 2016 , 2015 , and 2014 was $10.2 million , $10.8 million , and $10.7 million , respectively. Future minimum rental payments required under non-cancelable operating leases for premises that have initial or remaining terms in excess of one year as of December 31, 2016 are as follows for the years ending (dollars in thousands): 2017 $ 6,418 2018 6,037 2019 5,197 2020 4,345 2021 3,959 Thereafter 7,080 Total of future payments $ 33,036 The leases contain options to extend for periods up to 20 years . Rental expense for the years ended December 31, 2016 , 2015 , and 2014 totaled $7.1 million , $7.8 million , and $8.1 million , respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The Company’s intangible assets consist of core deposits, goodwill, and other intangibles arising from previous and current acquisitions. The Company has determined that core deposit intangibles have finite lives and amortizes them over their estimated useful lives. Core deposit intangible assets are being amortized over the period of expected benefit, which ranges from 4 to 14 years , using an accelerated method. On January 1, 2014, the Company completed the acquisition of StellarOne and acquired intangible assets of $29.6 million and recorded $234.1 million of goodwill. On May 31, 2016, the Company completed the acquisition of ODCM and recorded goodwill of $4.7 million and other amortizable intangible assets of $4.5 million . The Company is amortizing these intangible assets over the period of expected benefit, which ranges from 5 to 10 years using a straight-line method. In accordance with ASC 350, Intangibles-Goodwill and Other, the Company reviews the carrying value of indefinite lived intangible assets at least annually or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing in the second quarter of 2016 and determined that there was no impairment to its goodwill or intangible assets. Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2016 Amortizable core deposit intangibles $ 68,367 $ 51,987 $ 16,380 Other amortizable intangibles 4,502 280 4,222 December 31, 2015 Amortizable core deposit intangibles $ 76,185 $ 52,875 $ 23,310 Amortization expense of core deposit intangibles for the years ended December 31, 2016 , 2015 , and 2014 totaled $6.9 million , $8.4 million , and $9.8 million , respectively. Amortization expense of other intangibles at December 31, 2016 was $280,000 . There was no amortization expense of other intangibles for the years ended December 31, 2015 and 2014. As of December 31, 2016 , the estimated remaining amortization expense of intangibles is as follows (dollars in thousands): 2017 $ 6,070 2018 4,625 2019 3,573 2020 2,509 2021 1,481 Thereafter 2,344 Total estimated amortization expense $ 20,602 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | |
DEPOSITS | DEPOSITS The major types of interest-bearing deposits are as follows for the years ended December 31, (dollars in thousands): 2016 2015 Interest-bearing deposits: NOW accounts $ 1,765,956 $ 1,521,906 Money market accounts 1,435,591 1,312,612 Savings accounts 591,742 572,800 Time deposits of $250,000 and over 189,647 183,520 Other time deposits 1,002,928 1,000,161 Total interest-bearing deposits $ 4,985,864 $ 4,590,999 As of December 31, 2016 , the scheduled maturities of time deposits are as follows for the years ended December 31, (dollars in thousands): 2017 $ 463,884 2018 381,063 2019 159,011 2020 141,145 2021 47,472 Total scheduled maturities of time deposits $ 1,192,575 The amount of time deposits held in CDARS accounts was $1.0 million and $4.9 million as of December 31, 2016 and 2015 , respectively. These deposits had a maturity of less than one year . The Company classifies deposit overdrafts as loans held for investment within the "Consumer and all other" category. As of both December 31, 2016 and 2015 , these deposits totaled $1.2 million . |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Short-term Borrowings The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Total short-term borrowings consist primarily of advances from the FHLB, federal funds purchased (which are secured overnight borrowings from other financial institutions), and other lines of credit. Also included in total short-term borrowings are securities sold under agreements to repurchase, which are secured transactions with customers and generally mature the day following the date sold. Total short-term borrowings consist of the following as of December 31, 2016 and 2015 (dollars in thousands): 2016 2015 Securities sold under agreements to repurchase $ 59,281 $ 84,977 Other short-term borrowings 517,500 304,000 Total short-term borrowings $ 576,781 $ 388,977 Maximum month-end outstanding balance $ 678,262 $ 445,761 Average outstanding balance during the period 590,074 379,783 Average interest rate during the period 0.49 % 0.25 % Average interest rate at end of period 0.60 % 0.27 % Other short-term borrowings: FHLB $ 517,500 $ 304,000 Other lines of credit — — The Bank maintains federal funds lines with several correspondent banks; the remaining available balance was $175.0 million at both December 31, 2016 and 2015 . The Company maintains an alternate line of credit at a correspondent bank; the available balance was $25.0 million at both December 31, 2016 and 2015 . The Company has certain restrictive covenants related to certain asset quality, capital, and profitability metrics associated with these lines and is considered to be in compliance with these covenants. Additionally, the Company had a collateral dependent line of credit with the FHLB of up to $2.4 billion and $1.5 billion at December 31, 2016 and 2015 , respectively. Long-term Borrowings In connection with two bank acquisitions prior to 2006, the Company issued trust preferred capital notes to fund the cash portion of those acquisitions, collectively totaling $58.5 million . In connection with the acquisition of StellarOne, the Company acquired trust preferred capital notes totaling $32.0 million with a remaining fair value discount of $6.7 million at December 31, 2016 . The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. Trust Preferred Capital Securities (1) Investment (1) Spread to 3-Month LIBOR Rate Maturity Trust Preferred Capital Note - Statutory Trust I $ 22,500,000 $ 696,000 2.75 % 3.75 % 6/17/2034 Trust Preferred Capital Note - Statutory Trust II 36,000,000 1,114,000 1.40 % 2.40 % 6/15/2036 VFG Limited Liability Trust I Indenture 20,000,000 619,000 2.73 % 3.73 % 3/18/2034 FNB Statutory Trust II Indenture 12,000,000 372,000 3.10 % 4.10 % 6/26/2033 Total $ 90,500,000 $ 2,801,000 (1) The total of the trust preferred capital securities and investments in the respective trusts represents the principal asset of the Company's junior subordinated debt securities with like maturities and like interest rates to the capital securities. The Company's investment in the trusts is reported in "Other Assets" on the Consolidated Balance Sheets. During 2016, the Company issued $150.0 million of fixed-to-floating rate subordinated notes with an initial fixed interest rate of 5.00% through December 15, 2021. The interest rate then changes to a floating rate of LIBOR plus 3.175% through its maturity date in December 2026 . At December 31, 2016 , the carrying value of the subordinated debt was $150.0 million , with a remaining discount of $2.0 million . During 2012, the Company modified its fixed rate FHLB advances to floating rate advances, which resulted in reducing the Company’s FHLB borrowing costs. In connection with this modification, the Company incurred a prepayment penalty of $19.6 million on the original advances, which is included as a component of long-term borrowings in the Company’s Consolidated Balance Sheets. In accordance with ASC 470-50, Modifications and Extinguishments , the Company will amortize this prepayment penalty over the term of the modified advances using the effective rate method. The amortization expense is included as a component of interest expense on long-term borrowings in the Company’s Consolidated Statements of Income. Amortization expense for the years ended December 31, 2016 , 2015 , and 2014 was $1.9 million , $1.8 million , and $1.8 million , respectively. In connection with the StellarOne acquisition, the Company assumed $70.0 million in long-term borrowings with the FHLB of which there is $20.0 million remaining as of December 31, 2016 that had a remaining fair value premium of $559,000 . As of December 31, 2016 , the Company had advances from the FHLB consisting of the following (dollars in thousands): Long-term Type Spread to 3-Month LIBOR Interest Rate Maturity Date Advance Amount Adjustable Rate Credit 0.44 % 1.44 % 8/23/2022 $ 55,000 Adjustable Rate Credit 0.45 % 1.45 % 11/23/2022 65,000 Adjustable Rate Credit 0.45 % 1.45 % 11/23/2022 10,000 Adjustable Rate Credit 0.45 % 1.45 % 11/23/2022 10,000 Fixed Rate — 3.62 % 11/28/2017 10,000 Fixed Rate — 3.75 % 7/30/2018 5,000 Fixed Rate — 3.97 % 7/30/2018 5,000 Fixed Rate Hybrid — 0.99 % 10/19/2018 30,000 $ 190,000 As of December 31, 2015 , the Company had advances from the FHLB consisting of the following (dollars in thousands): Long-term Type Spread to 3-Month LIBOR Interest Rate Maturity Date Advance Amount Adjustable Rate Credit 0.44 % 1.05 % 8/23/2022 $ 55,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 65,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 10,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 10,000 Fixed Rate — 3.62 % 11/28/2017 10,000 Fixed Rate — 3.75 % 7/30/2018 5,000 Fixed Rate — 3.97 % 7/30/2018 5,000 Fixed Rate Hybrid — 2.11 % 10/5/2016 25,000 Fixed Rate Hybrid — 0.91 % 7/25/2016 15,000 $ 200,000 The carrying value of the loans and securities pledged as collateral for FHLB advances totaled $2.0 billion and $1.9 billion as of December 31, 2016 and 2015 , respectively. As of December 31, 2016 , the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands): Trust Preferred Capital Notes Subordinated Debt FHLB Advances Premium (Discount) Prepayment Penalty Total Long-term Borrowings 2017 $ — $ — $ 10,000 $ (30 ) $ (1,922 ) $ 8,048 2018 — — 40,000 (343 ) (1,970 ) 37,687 2019 — — — (486 ) (2,018 ) (2,504 ) 2020 — — — (501 ) (2,074 ) (2,575 ) 2021 — — — (516 ) (2,119 ) (2,635 ) Thereafter 93,301 150,000 140,000 (6,307 ) (1,707 ) 375,287 Total Long-term borrowings $ 93,301 $ 150,000 $ 190,000 $ (8,183 ) $ (11,810 ) $ 413,308 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Matters In the ordinary course of its operations, the Company and its subsidiaries are parties to various legal proceedings. Based on the information presently available, and after consultation with legal counsel, management believes that the ultimate outcome in such proceedings, in the aggregate, will not have a material adverse effect on the business, the financial condition, or results of operations of the Company. Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amount recognized on the Company’s Consolidated Balance Sheets. The contractual amounts of these instruments reflect the extent of the Company’s involvement in particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk. The Company considers credit losses related to off-balance sheet commitments by undergoing a similar process in evaluating losses for loans that are carried on the balance sheet. The Company considers historical loss rates, current economic conditions, risk ratings, and past due status among other factors in the consideration of whether credit losses are inherent in the Company’s off-balance sheet commitments to extend credit. The Company does not expect credit losses arising from off-balance sheet commitments to have a material adverse impact on the Company’s consolidated financial statements. Commitments to extend credit are agreements to lend to customers as long as there are no violations of any conditions established in the contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Letters of credit are conditional commitments issued by the Company to guarantee the performance of customers to third parties. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The following table presents the balances of commitments as of December 31, (dollars in thousands): 2016 2015 Commitments with off-balance sheet risk: Commitments to extend credit (1) $ 1,924,885 $ 1,557,350 Standby letters of credit 84,212 139,371 Total commitments with off-balance sheet risk $ 2,009,097 $ 1,696,721 (1) Includes unfunded overdraft protection. The Company must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the periods ended December 31, 2016 and 2015 , the aggregate amount of daily average required reserves were approximately $54.5 million and $48.7 million , respectively. As of December 31, 2016 , the Company had approximately $50.3 million in deposits in other financial institutions, of which $18.9 million and $14.8 million serve as collateral for the cash flow hedges and loan swaps, respectively, as discussed in Note 10 “Derivatives.” The Company had approximately $15.2 million and $14.7 million in deposits in other financial institutions that were uninsured at December 31, 2016 and 2015 , respectively. On an annual basis, the Company’s management evaluates the loss risk of its uninsured deposits in financial counterparties. For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify the interest rate characteristics of various balance sheet accounts. See Note 10 “Derivatives” for additional information. In the ordinary course of business, the Company records an indemnification reserve relating to mortgage loans previously sold based on historical statistics and loss rates; as of December 31, 2016 and 2015 , the Company’s indemnification reserve for such mortgage loans was $379,000 and $450,000 , respectively. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Derivative Instruments [Abstract] | |
DERIVATIVES | DERIVATIVES The Company is exposed to economic risks arising from its business operations and uses derivatives primarily to manage risk associated with changing interest rates, and to assist customers with their risk management objectives. The Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge). The remaining are classified as free standing derivatives consisting of customer accommodation loan swaps and interest rate lock commitments that do not qualify for hedge accounting. Cash Flow Hedges The Company designates derivatives as cash flow hedges when they are used to manage exposure to variability in cash flows related to forecasted transactions on variable rate borrowings such as trust preferred capital notes, FHLB borrowings and prime commercial loans. The Company uses interest rate swap agreements as part of its hedging strategy by exchanging a notional amount, equal to the principal amount of the borrowings, for fixed-rate interest based on benchmarked interest rates. All swaps were entered into with counterparties that met the Company’s credit standards and the agreements contain collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in the contract is not significant. The terms and conditions of the interest rate swaps vary and amounts receivable or payable are recognized as accrued under the terms of the agreements. The Company assesses the effectiveness of each hedging relationship on a periodic basis using statistical regression analysis. The Company also measures the ineffectiveness of each hedging relationship using the change in variable cash flows method which compares the cumulative changes in cash flows of the hedging instrument relative to cumulative changes in the hedged item’s cash flows. In accordance with ASC 815, Derivatives and Hedging , the effective portions of the derivatives’ unrealized gains or losses are recorded as a component of other comprehensive income. Based on the Company’s assessment its cash flow hedges are highly effective, but to the extent that any ineffectiveness exists in the hedge relationships, the amounts would be recorded in interest income and interest expense on the Company’s Consolidated Statements of Income. On June 13, 2016 , the Company terminated three interest rate swaps designated as cash flow hedges prior to their respective maturity dates. The unrealized gain of $1.3 million within Accumulated Other Comprehensive Income will be reclassified into earnings over a 3 year period, the term of the hedged item, using the effective interest method. The estimated net amount of gains expected to be reclassified into earnings within the next twelve months is $382,000 . Fair Value Hedge Derivatives are designated as fair value hedges when they are used to manage exposure to changes in the fair value of certain financial assets and liabilities, referred to as the hedged items, which fluctuate in value as a result of movements in interest rates. During the normal course of business, the Company enters into interest rate swaps to convert certain long-term fixed-rate loans to floating rates to hedge the Company’s exposure to interest rate risk. The Company pays a fixed interest rate to the counterparty and receives a floating rate from the same counterparty calculated on the aggregate notional amount. For the years ended December 31, 2016 and 2015 , the aggregate notional amount of the related hedged items was $65.9 million and $61.2 million , respectively, and the fair value of the related hedged items was an unrealized loss of $890,000 and an unrealized gain of $689,000 , respectively. The Company applies hedge accounting in accordance with ASC 815, Derivatives and Hedging, and the fair value hedge and the underlying hedged item, attributable to the risk being hedged, are recorded at fair value with unrealized gains and losses being recorded in the Company’s Consolidated Statements of Income. Statistical regression analysis is used to assess hedge effectiveness, both at inception of the hedging relationship and on an ongoing basis. The regression analysis involves regressing the periodic change in fair value of the hedging instrument against the periodic changes in fair value of the asset being hedged due to changes in the hedged risk. The Company’s fair value hedges continue to be highly effective and had no material impact on the Consolidated Statements of Income, but if any ineffectiveness exists, portions of the unrealized gains or losses would be recorded in interest income and interest expense on the Company’s Consolidated Statements of Income. Loan Swaps During the normal course of business, the Company enters into interest rate swap loan relationships (“loan swaps”) with borrowers to meet their financing needs. Upon entering into the loan swaps, the Company enters into offsetting positions with a third party in order to minimize interest rate risk. These back-to-back loan swaps qualify as financial derivatives with fair values as reported in “Other Assets” and “Other Liabilities” on the Company’s Consolidated Balance Sheets. Interest Rate Lock Commitments During the normal course of business, the Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (“rate lock commitments”). Rate lock commitments on mortgage loans that are intended to be sold in the secondary market are considered to be derivatives. The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days . The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity. The market values of rate lock commitments and best efforts forward delivery commitments is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. The fair value of the rate lock commitments is reported as a component of “Other Assets” on the Company’s Consolidated Balance Sheets; the fair value of the Company’s best efforts forward delivery commitments is recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets. Any impact to income is recorded in current period earnings as a component of “Mortgage banking income, net” on the Company’s Consolidated Statements of Income. The following table summarizes key elements of the Company’s derivative instruments as of December 31, 2016 and 2015 , segregated by derivatives that are considered accounting hedges and those that are not (dollars in thousands): December 31, 2016 December 31, 2015 Derivative (2) Derivative (2) Notional or Contractual (1) Assets Liabilities Collateral Pledged (3) Notional or Contractual (1) Assets Liabilities Collateral Pledged (3) Derivatives designated as accounting hedges: Interest rate contracts: Cash flow hedges $ 188,500 $ 211 $ 9,619 $ 21,938 $ 263,000 $ 946 $ 10,352 $ 14,449 Fair value hedges 65,920 1,437 296 — 61,150 — 888 — Derivatives not designated as accounting hedges: Loan Swaps Pay fixed-receive floating interest rate swaps 373,355 — 1,005 — 138,969 3,758 — — Pay floating-receive fixed interest rate swaps 373,355 1,005 — 16,033 138,969 — 3,758 5,983 Other contracts: Interest rate lock commitments 48,743 610 — — 50,369 701 — — Best efforts forward delivery commitments 85,400 1,469 — — 84,050 370 — — (1) Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. (2) Balances represent fair value of derivative financial instruments. (3) Collateral pledged is comprised of both cash and securities. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The change in accumulated other comprehensive income (loss) for the year ended December 31, 2016 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedges Unrealized Gains (Losses) on BOLI Total Balance - December 31, 2015 $ 7,777 $ 4,432 $ (5,957 ) $ — $ 6,252 Other comprehensive income (loss) (8,186 ) — 270 (1,728 ) (9,644 ) Amounts reclassified from accumulated other comprehensive income (133 ) (1,055 ) 508 263 (417 ) Net current period other comprehensive income (loss) (8,319 ) (1,055 ) 778 (1,465 ) (10,061 ) Balance - December 31, 2016 $ (542 ) $ 3,377 $ (5,179 ) $ (1,465 ) $ (3,809 ) The change in accumulated other comprehensive income (loss) for the year ended December 31, 2015 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedges Total Balance - December 31, 2014 $ 17,439 $ — $ (5,184 ) $ 12,255 Unrealized gain transferred from AFS to HTM (5,251 ) 5,251 — — Other comprehensive income (loss) (3,640 ) — (1,394 ) (5,034 ) Amounts reclassified from accumulated other comprehensive income (771 ) (819 ) 621 (969 ) Net current period other comprehensive income (loss) (4,411 ) (819 ) (773 ) (6,003 ) Balance - December 31, 2015 $ 7,777 $ 4,432 $ (5,957 ) $ 6,252 The change in accumulated other comprehensive income (loss) for the year ended December 31, 2014 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Change in Fair Value of Cash Flow Hedges Total Balance - December 31, 2013 $ 1,192 $ (3,382 ) $ (2,190 ) Other comprehensive income (loss) 17,089 (2,393 ) 14,696 Amounts reclassified from accumulated other comprehensive income (842 ) 591 (251 ) Net current period other comprehensive income (loss) 16,247 (1,802 ) 14,445 Balance - December 31, 2014 $ 17,439 $ (5,184 ) $ 12,255 Reclassifications of unrealized gains (losses) on available for sale securities are reported on the Company’s Consolidated Statements of Income as “Gains on securities transactions, net” with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported gains of $205,000 and $1.5 million for the years ended December 31, 2016 and 2015 , related to the sale of securities. Excluding the OTTI recovery of $400,000 in the second quarter of 2014 , the Company reported gains of $1.3 million for the year ended December 31, 2014 , related to the sale of securities. The tax effect of these transactions during the years ended December 31, 2016 , 2015 , and 2014 were $72,000 , $415,000 , and $453,000 , respectively, which were included as a component of income tax expense. See Note 3 “Securities” for additional information. During the second quarter of 2015 , the Company transferred securities, which it intends and has the ability to hold until maturity, with a fair value of $201.8 million on the date of transfer, from securities available for sale to securities held to maturity. The securities included net pre-tax unrealized gains of $8.1 million at the date of transfer. Reclassifications of the unrealized gains on transferred securities are reported over time as accretion within interest income on the Company's Consolidated Statements of Income with the corresponding income tax effect being reflected as a component of income tax expense. The Company recorded accretion of $1.6 million and $1.3 million for the years ended December 31, 2016 and 2015 , respectively. The tax effect of these transactions during the years ended December 31, 2016 and 2015 were $568,000 and $441,000 , respectively, which were included as a component of income tax expense. Reclassifications of the change in fair value of cash flow hedges are reported in interest income and interest expense in the Company’s Consolidated Statements of Income with the corresponding income tax effect being reflected as a component of income tax expense. The Company reported net interest expense of $782,000 , $956,000 , and $909,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. The tax effect of these transactions during the years ended December 31, 2016 , 2015 , and 2014 were $274,000 , $335,000 , and $318,000 , respectively, which were included as a component of income tax expense. Reclassifications of unrealized losses on BOLI are reported in salaries and benefits expense on the Company's Consolidated Statements of Income. The Company reported expenses of $263,000 for the year ended December 31, 2016 . |
REGULATORY MATTERS AND CAPITAL
REGULATORY MATTERS AND CAPITAL | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY MATTERS AND CAPITAL | REGULATORY MATTERS AND CAPITAL Capital resources represent funds, earned or obtained, over which financial institutions can exercise greater or longer control in comparison with deposits and borrowed funds. Management seeks to maintain a capital structure that will assure an adequate level of capital to support anticipated asset growth and to absorb potential losses, yet allow management to effectively leverage its capital to maximize return to shareholders. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on financial statements of the Company and the Bank. Under capital adequacy guidelines and the regulatory framework for PCA, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. PCA provisions are not applicable to financial holding companies and bank holding companies, but only to their bank subsidiaries. As of December 31, 2016 , the most recent notification from the Federal Reserve Bank categorized the Bank as “well capitalized” under the regulatory framework for PCA. To be categorized as “well-capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and common equity Tier 1 ratios as set forth in the following tables. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company and the Bank’s capital amounts and ratios are also presented in the following table at December 31, 2016 and 2015 (dollars in thousands): Actual Required for Capital Adequacy Purposes Required in Order to Be Well Capitalized Under PCA Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Common equity Tier 1 capital to risk weighted assets: Consolidated $ 699,728 9.72 % $ 324,035 4.50 % NA NA Union Bank & Trust 901,783 12.58 % 322,531 4.50 % 465,878 6.50 % Tier 1 capital to risk weighted assets: Consolidated 790,228 10.97 % 432,047 6.00 % NA NA Union Bank & Trust 901,783 12.58 % 430,042 6.00 % 573,389 8.00 % Total capital to risk weighted assets: Consolidated 976,145 13.56 % 576,062 8.00 % NA NA Union Bank & Trust 939,700 13.11 % 573,390 8.00 % 716,737 10.00 % Tier 1 capital to average adjusted assets: Consolidated 790,228 9.87 % 320,316 4.00 % NA NA Union Bank & Trust 901,783 11.31 % 319,046 4.00 % 398,807 5.00 % As of December 31, 2015 Common equity Tier 1 capital to risk weighted assets: Consolidated $ 691,195 10.55 % $ 294,823 4.50 % NA NA Union Bank & Trust 751,992 11.52 % 293,747 4.50 % 424,301 6.50 % Tier 1 capital to risk weighted assets: Consolidated 781,695 11.93 % 393,141 6.00 % NA NA Union Bank & Trust 751,992 11.52 % 391,663 6.00 % 522,217 8.00 % Total capital to risk weighted assets: Consolidated 816,041 12.46 % 523,943 8.00 % NA NA Union Bank & Trust 786,339 12.05 % 522,051 8.00 % 652,563 10.00 % Tier 1 capital to average adjusted assets: Consolidated 781,695 10.68 % 292,770 4.00 % NA NA Union Bank & Trust 751,992 10.31 % 291,752 4.00 % 364,691 5.00 % In July 2013, the FRB issued a final rule that makes technical changes to its market risk capital rules to align them with the Basel III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. The phase-in period for the final rules began on January 1, 2015, with full compliance with the final rules to be phased in by January 1, 2019. Refer to Item 7. – “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” section “Capital Resources” in this Form 10-K for additional information. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company follows ASC 820, Fair Value Measurements and Disclosures , to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows: Level 1 Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets. Level 3 Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements. Derivative instruments As discussed in Note 10 “Derivatives,” the Company records derivative instruments at fair value on a recurring basis. The Company utilizes derivative instruments as part of the management of interest rate risk to modify the re-pricing characteristics of certain portions of the Company’s interest-bearing assets and liabilities. The Company has contracted with a third party vendor to provide valuations for derivatives using standard valuation techniques and therefore classifies such valuations as Level 2. Third party valuations are validated by the Company using Bloomberg Valuation Service’s derivative pricing functions. The Company has considered counterparty credit risk in the valuation of its derivative assets and has considered its own credit risk in the valuation of its derivative liabilities. During the ordinary course of business, the Company enters into interest rate lock commitments related to the origination of mortgage loans held for sale as well as best effort forward delivery commitments to mitigate interest rate risk; these instruments are recorded at estimated fair value based on the value of the underlying loan, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a pull-through rate which considers the likelihood that the loan in a lock position will ultimately close. The pull-through rate is derived from the Company’s internal data and is adjusted using significant management judgment. The pull-through rate is largely dependent on the loan processing stage that a loan is currently in and the change in prevailing interest rates from the time of the rate lock. As such, interest rate lock commitments are classified as Level 3. An increase in the pull-through rate utilized in the fair value measurement of the interest rate lock commitment derivative will result in positive fair value adjustments while a decrease in the pull-through rate will result in a negative fair value adjustment. The Company’s weighted average pull-through rate was approximately 80% at both December 31, 2016 and December 31, 2015 . As of December 31, 2016 , the interest rate lock commitments are recorded as a component of “Other Assets” on the Company’s Consolidated Balance Sheets. Securities available for sale Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity then the security would fall to the lowest level of the hierarchy (Level 3). The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third party portfolio accounting service vendor for valuation of its securities portfolio. The vendor’s primary source for security valuation is Interactive Data Corporation (“IDC”), which evaluates securities based on market data. IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves. The Company primarily uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations. Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source. No material differences were identified during the validation as of December 31, 2016 and 2015 . The carrying value of restricted Federal Reserve Bank and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the following table. Loans held for sale Loans held for sale are carried at fair value. These loans currently consist of residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). Gains and losses on the sale of loans are recorded within the mortgage segment and are reported on a separate line item on the Company’s Consolidated Statements of Income. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and 2015 (dollars in thousands): Fair Value Measurements at December 31, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Securities available for sale: Obligations of states and political subdivisions $ — $ 275,890 $ — $ 275,890 Corporate and other bonds — 121,780 — 121,780 Mortgage-backed securities — 535,286 — 535,286 Other securities — 13,808 — 13,808 Loans held for sale — 36,487 — 36,487 Derivatives: Interest rate swap — 1,005 — 1,005 Cash flow hedges — 211 — 211 Fair value hedge — 1,437 — 1,437 Interest rate lock commitments — — 610 610 Best efforts forward delivery commitments — — 1,469 1,469 LIABILITIES Derivatives: Interest rate swap $ — $ 1,005 $ — $ 1,005 Cash flow hedges — 9,619 — 9,619 Fair value hedges — 296 — 296 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Securities available for sale: Obligations of states and political subdivisions $ — $ 268,079 $ — $ 268,079 Corporate and other bonds — 75,979 — 75,979 Mortgage-backed securities — 548,171 — 548,171 Other securities — 11,063 — 11,063 Loans held for sale — 36,030 — 36,030 Derivatives: Interest rate swap — 3,758 — 3,758 Cash flow hedges — 946 — 946 Interest rate lock commitments — — 701 701 Best efforts forward delivery commitments — — 370 370 LIABILITIES Derivatives: Interest rate swap $ — $ 3,758 $ — $ 3,758 Cash flow hedges — 10,352 — 10,352 Fair value hedges — 888 — 888 Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements. Impaired loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral if repayment is solely from the underlying value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data. When evaluating the fair value, management may discount the appraisal further if, based on their understanding of the market conditions, it is determined the collateral is further impaired below the appraised value (Level 3). For the years ended December 31, 2016 and 2015 , the Level 3 weighted average discounts management applied to the appraised value of collateral related to impaired loans were 1.5% and 7.0% , respectively. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Collateral dependent impaired loans allocated to the ALL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Company’s Consolidated Statements of Income. Other real estate owned OREO is evaluated for impairment at least quarterly by the Bank’s Special Asset Loan Committee and any necessary write downs to fair values are recorded as impairment and included as a component of noninterest expense. Fair values of OREO are carried at fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as Level 3 valuation. For the years ended December 31, 2016 and 2015 , the Level 3 weighted averages related to OREO were approximately 25.1% and 32.0% , respectively. Total valuation expenses related to OREO properties for the years ended December 31, 2016 , 2015 , 2014 were $1.0 million , $6.0 million , and $7.6 million , respectively. The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at December 31, 2016 and 2015 (dollars in thousands): Fair Value Measurements at December 31, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Impaired loans $ — $ — $ 4,344 $ 4,344 Other real estate owned — — 10,084 10,084 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Impaired loans $ — $ — $ 2,214 $ 2,214 Other real estate owned — — 15,299 15,299 ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Cash and cash equivalents For those short-term instruments, the carrying amount is a reasonable estimate of fair value. Held to Maturity Securities The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with a third party portfolio accounting service vendor for valuation of its securities portfolio. The vendor’s primary source for security valuation is IDC, which evaluates securities based on market data. IDC utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. The vendor utilizes proprietary valuation matrices for valuing all municipals securities. The initial curves for determining the price, movement, and yield relationships within the municipal matrices are derived from industry benchmark curves or sourced from a municipal trading desk. The securities are further broken down according to issuer, credit support, state of issuance, and rating to incorporate additional spreads to the industry benchmark curves. The Company primarily uses Bloomberg Valuation Service, an independent information source that draws on quantitative models and market data contributed from over 4,000 market participants, to validate third party valuations. Any material differences between valuation sources are researched by further analyzing the various inputs that are utilized by each pricing source. No material differences were identified during the validation as of December 31, 2016 . Loans The fair value of performing loans is estimated by discounting expected future cash flows using a yield curve that is constructed by adding a loan spread to a market yield curve. Loan spreads are based on spreads currently observed in the market for loans of similar type and structure. Fair value for impaired loans and their respective level within the fair value hierarchy, are described in the previous disclosure related to fair value measurements of assets that are measured on a nonrecurring basis. Bank owned life insurance The carrying value of BOLI approximates fair value. The Company records these policies at their cash surrender value, which is estimated using information provided by insurance carriers. Deposits The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Borrowings The carrying value of the Company’s repurchase agreements is a reasonable estimate of fair value. Other borrowings are discounted using the current yield curve for the same type of borrowing. For borrowings with embedded optionality, a third party source is used to value the instrument. The Company validates all third party valuations for borrowings with optionality using Bloomberg Valuation Service’s derivative pricing functions. Accrued interest The carrying amounts of accrued interest approximate fair value. The carrying values and estimated fair values of the Company’s financial instruments as of December 31, 2016 and 2015 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance ASSETS Cash and cash equivalents $ 179,237 $ 179,237 $ — $ — $ 179,237 Securities available for sale 946,764 — 946,764 — 946,764 Held to maturity securities 201,526 — 202,315 — 202,315 Restricted stock 60,782 — 60,782 — 60,782 Loans held for sale 36,487 — 36,487 — 36,487 Net loans 6,269,868 — — 6,265,443 6,265,443 Derivatives: Interest rate swap 1,005 — 1,005 — 1,005 Cash flow hedges 211 — 211 — 211 Fair value hedges 1,437 — 1,437 — 1,437 Interest rate lock commitments 610 — — 610 610 Best efforts forward delivery commitments 1,469 — — 1,469 1,469 Accrued interest receivable 23,448 — 23,448 — 23,448 Bank owned life insurance 179,318 — 179,318 — 179,318 LIABILITIES Deposits $ 6,379,489 $ — $ 6,370,457 $ — $ 6,370,457 Borrowings 990,089 — 970,195 — 970,195 Accrued interest payable 2,230 — 2,230 — 2,230 Derivatives: Interest rate swap 1,005 — 1,005 — 1,005 Cash flow hedges 9,619 — 9,619 — 9,619 Fair value hedges 296 — 296 — 296 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance ASSETS Cash and cash equivalents $ 142,660 $ 142,660 $ — $ — $ 142,660 Securities available for sale 903,292 — 903,292 — 903,292 Held to maturity securities 205,374 — 209,437 — 209,437 Restricted stock 51,828 — 51,828 — 51,828 Loans held for sale 36,030 — 36,030 — 36,030 Net loans 5,637,415 — — 5,671,155 5,671,155 Derivatives: Interest rate swap 3,758 — 3,758 — 3,758 Cash flow hedges 946 — 946 — 946 Interest rate lock commitments 701 — — 701 701 Best efforts forward delivery commitments 370 — — 370 370 Accrued interest receivable 20,760 — 20,760 — 20,760 Bank owned life insurance 173,687 — 173,687 — 173,687 LIABILITIES Deposits $ 5,963,936 $ — $ 5,957,484 $ — $ 5,957,484 Borrowings 680,175 — 659,364 — 659,364 Accrued interest payable 1,578 — 1,578 — 1,578 Derivatives: Interest rate swap 3,758 — 3,758 — 3,758 Cash flow hedges 10,352 — 10,352 — 10,352 Fair value hedges 888 — 888 — 888 The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
EMPLOYEE BENEFITS AND STOCK BAS
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefits and Share-based Compensation [Abstract] | |
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION | EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION The Company has a 401(k) Plan designed to qualify under Section 401 of the Internal Revenue Code of 1986 that allows employees to defer a portion of their salary compensation as savings for retirement. The 401(k) Plan provides for the Company to match employee contributions based on each employee’s elected contribution percentage. For each employee’s 1% through 3% dollar contributions, the Company will match 100% of such dollar contributions, and for each employee’s 4% through 5% dollar contributions, the Company will match 50% of such dollar contributions. All employees are eligible to participate in the 401(k) Plan after meeting minimum age and period of service requirements. The Bank also has an ESOP. All full and part-time employees of the Bank with 1,000 hours of service are eligible to participate in the ESOP. The Company makes discretionary profit sharing contributions into the 401(k) Plan, ESOP, and in cash. Company discretionary contributions to both the 401(k) Plan and the ESOP are allocated to participant accounts in proportion to each participant’s compensation and vest according to the respective plan's vesting schedule. Employee contributions to the ESOP are not allowed. The following 401(k) match and other discretionary contributions were made to the Company’s employees, in accordance with the plans described above, in 2016 , 2015 , and 2014 (dollars in thousands): 2016 2015 2014 401(k) Plan $ 3,263 $ 3,120 $ 3,715 ESOP 1,425 1,146 3,440 Cash 1,496 1,146 983 Total $ 6,184 $ 5,412 $ 8,138 The Company maintains certain deferred compensation arrangements with employees and certain current and former members of the Bank’s and StellarOne’s Boards of Directors. Under these deferred compensation plans the Company had an obligation of $10.4 million at December 31, 2016 and $9.1 million at December 31, 2015 , respectively. The Company owns life insurance policies on plan beneficiaries as an informal funding vehicle to meet future benefit obligations. The Company’s Board of Directors has historically approved an annual short-term cash incentive compensation plan (the Management Incentive Plan, or “MIP”) as a means of attracting, rewarding, and retaining the Company’s key executives. Each annual MIP, as it may be amended from time to time, is based on both corporate and individual performance measures established annually for each key executive. Performance under these two categories is assessed for each executive to determine the amount of incentive compensation paid each year. Salaries and benefits expense for incentive compensation under the MIP was $2.7 million , $1.2 million , and $898,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. On January 29, 2015, the Company’s Board of Directors adopted the Union Bankshares Corporation Stock and Incentive Plan (the “Amended and Restated SIP”), which amends and restates the former equity compensation plan (the “2011 Plan”). The Amended and Restated SIP became effective on April 21, 2015 upon shareholder approval. The Company may grant awards under the amended plan until April 20, 2025. The Amended and Restated SIP amends the 2011 Plan to, among other things, increase the maximum number of shares of the Company’s common stock issuable under the plan from 1,000,000 to 2,500,000 and add non-employee directors of the Company and certain subsidiaries, as well as regional advisory boards, as potential participants in the plan. The increase in shares in the Amended and Restated SIP includes shares that had been granted previously under the 2011 Plan. As of December 31, 2016 , there were 1,666,637 shares available for future issuance in the Amended and Restated SIP. The Amended and Restated SIP provides for the granting of stock-based awards to key employees and non-employee directors of the Company and its subsidiaries in the form of: (i) for key employees only, incentive stock options intended to comply with the requirements of Section 422 of the Internal Revenue Code of 1986 (“incentive stock options”); (ii) non-qualified stock options; (iii) restricted stock awards (“RSAs”), (iv) restricted stock units (“RSUs”), (v) stock awards; (vi) performance share units (“PSUs”); and performance cash awards. The Company issues new shares to satisfy stock-based awards. For option awards the option price cannot be less than the fair market value of the stock on the grant date. Stock option awards have a maximum term of ten years from the date of grant. No stock options have been granted since February 2012. RSAs and PSUs typically have vesting schedules over three to four year periods. For the years ended December 31, 2016 , 2015 , and 2014 , the Company recognized stock-based compensation expense (included in salaries and benefits expense) (dollars in thousands, except per share data) as follows: Year Ended December 31, 2016 2015 2014 Stock-based compensation expense $ 3,270 $ 1,388 $ 979 Reduction of income tax expense 1,104 405 234 Per share compensation cost $ 0.05 $ 0.02 $ 0.02 Stock Options The following table summarizes the stock option activity during the year ended December 31, 2016 : Stock Options (shares) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of December 31, 2015 298,743 $ 16.40 Granted — — Exercised (88,409 ) 16.10 Forfeited — — Expired (22,074 ) 30.12 Outstanding as of December 31, 2016 188,260 14.94 3.67 $ 3,915,988 Exercisable as of December 31, 2016 170,466 15.00 3.53 3,536,264 During the year ended December 31, 2016 , there were 88,409 stock options exercised with a total intrinsic value (the amount by which the stock price exceeded the exercise price) and fair value of approximately $1.2 million and $2.6 million , respectively. Cash received from the exercise of stock options for the year ended December 31, 2016 was approximately $1.4 million , and the tax benefit realized from tax deductions associated with options exercised during the year was approximately $381,000 . The fair value of all stock options vested during 2016 was approximately $159,000 and the total intrinsic value of all stock options outstanding was $3.9 million as of December 31, 2016 . During the year ended December 31, 2015 , there were 60,637 stock options exercised with a total intrinsic value (the amount by which the stock price exceeded the exercise price) and fair value of approximately $544,000 and $1.4 million , respectively. Cash received from the exercise of stock options for the year ended December 31, 2015 was approximately $886,000 , and the tax benefit realized from tax deductions associated with options exercised during the year was approximately $178,000 . The fair value of all stock options vested during 2015 was approximately $316,000 and the total intrinsic value of all stock options outstanding was $2.8 million as of December 31, 2015 . During the year ended December 31, 2014 , there were 75,282 stock options exercised with a total intrinsic value (the amount by which the stock price exceeded the exercise price) and fair value of approximately $573,000 and $1.8 million , respectively. Cash received from the exercise of stock options for the year ended December 31, 2014 was approximately $1.2 million , and the tax benefit realized from tax deductions associated with options exercised during the year was $187,000 . The fair value of all stock options vested during 2014 was approximately $313,000 and the total intrinsic value of all stock options outstanding was $3.1 million as of December 31, 2014 . Restricted Stock The Amended and Restated SIP permits the granting of restricted stock awards. Generally, RSAs vest 50% on each of the third and fourth anniversaries from the date of the grant. The value of the restricted stock awards was calculated by multiplying the fair market value of the Company’s common stock on the grant date by the number of shares awarded. Employees have the right to vote the shares and to receive cash or stock dividends for RSAs, if any. Nonvested shares of restricted stock are included in the computation of basic earnings per share. The following table summarizes the restricted stock activity for the year ended December 31, 2016 : Number of Shares of RSAs Weighted Average Grant-Date Fair Value Balance, December 31, 2015 305,056 $ 22.64 Granted 137,690 23.94 Net settle for taxes (23,123 ) 26.30 Vested (43,618 ) 19.39 Forfeited (4,567 ) 23.05 Balance, December 31, 2016 371,438 23.70 Performance Stock PSUs are granted to certain employees at no cost to the recipient and are subject to vesting based on achieving certain performance metrics; the grant of PSUs is subject to approval by the Company’s Compensation Committee at its sole discretion. PSUs may be paid in cash or shares of common stock or a combination thereof. Holders of PSUs have no right to vote the shares represented by the units. In 2016 , the PSUs awarded were market based awards with the number of PSUs ultimately earned based on the Company’s total shareholder return (“TSR”) as measured over the performance period. Number of Shares of PSUs Weighted Average Grant- Date Fair Value Balance, December 31, 2015 95,742 $ 18.51 Granted 76,469 15.06 Vested — — Forfeited (29,808 ) 18.23 Balance, December 31, 2016 142,403 16.72 During 2016 , PSUs were awarded with a market based component based on total shareholder return. The fair value of each PSU granted is estimated on the date of grant using the Monte Carlo simulation lattice model that uses the assumptions noted in the following table. 2016 Dividend yield (1) 3.36 % Expected life in years (2) 2.85 Expected volatility (3) 22.16 % Risk-free interest rate (4) 0.83 % (1) Calculated as the ratio of the current dividend paid per the stock price on the date of grant. (2) Represents the remaining performance period as of the grant date (3) Based on the historical volatility for the period commensurate with the expected life of the PSUs. (4) Based upon the zero-coupon U.S. Treasury rate commensurate with the expected life of the PSUs on the grant date. The estimated unamortized compensation expense, net of estimated forfeitures, related to stock options, restricted stock, and performance stock issued and outstanding as of December 31, 2016 that will be recognized in future periods is as follows (dollars in thousands): Stock Options Restricted Stock Performance Stock Total 2017 $ 13 $ 2,353 $ 604 $ 2,970 2018 — 1,919 395 2,314 2019 — 1,164 — 1,164 2020 — 100 — 100 Total $ 13 $ 5,536 $ 999 $ 6,548 At December 31, 2016 , there was $6.5 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements granted under the Amended and Restated SIP. The cost is expected to be recognized through 2020 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company files income tax returns in the U.S., the Commonwealth of Virginia, and other states. With few exceptions, the Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years prior to 2013. Net deferred tax assets and liabilities consist of the following components as of December 31, 2016 and 2015 (dollars in thousands): 2016 2015 Deferred tax assets: Allowance for loan losses $ 13,017 $ 11,916 Benefit plans 3,898 3,475 Acquisition accounting 11,297 13,888 Stock grants 1,371 1,679 Other real estate owned 3,156 4,589 Securities available for sale 291 105 Prime loan swap 3,147 2,724 Investments in pass through entities 835 1,366 Other 2,408 2,212 Total deferred tax assets $ 39,420 $ 41,954 Deferred tax liabilities: Acquisition accounting $ 11,645 $ 13,282 Premises and equipment 4,843 4,588 Securities available for sale 1,818 6,861 Other 806 2,429 Total deferred tax liabilities 19,112 27,160 Net deferred tax asset $ 20,308 $ 14,794 In assessing the ability to realize deferred tax assets, management considers the scheduled reversal of temporary differences, projected future taxable income, and tax planning strategies. At December 31, 2016 , management continued to believe that it is not likely that the Company would realize its deferred tax asset related to net operating losses generated at the state level and accordingly maintained a valuation allowance of $2.2 million compared to a valuation allowance of $1.7 million at December 31, 2015 . The Bank is not subject to a state income tax in its primary place of business (Virginia). The Company’s other subsidiaries are subject to state income taxes and have generated losses for state income tax purposes for which the Company is currently not able to utilize. The primary driver in management’s estimate of the recoverability of the state net operating loss is related to the continued state losses of the consolidated group (excluding the Bank). The Company had state net operating loss carryovers of $57.7 million and $46.3 million for the years ended December 31, 2016 and 2015 , respectively, which will begin to expire after 2026. The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions in accordance with applicable ASC 740, Accounting for Uncertainty in Income Taxes , regulations. The provision for income taxes charged to operations for the years ended December 31, 2016 , 2015 , and 2014 consists of the following (dollars in thousands): 2016 2015 2014 Current tax expense $ 26,535 $ 24,521 $ 15,481 Deferred tax expense (benefit) 243 (1,212 ) 2,644 Income tax expense $ 26,778 $ 23,309 $ 18,125 The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pre-tax income for the years ended December 31, 2016 , 2015 , and 2014 , due to the following (dollars in thousands): 2016 2015 2014 Computed "expected" tax expense $ 36,489 $ 31,636 $ 24,601 (Decrease) in taxes resulting from: Tax-exempt interest income, net (6,087 ) (5,865 ) (5,181 ) Other, net (3,624 ) (2,462 ) (1,295 ) Income tax expense $ 26,778 $ 23,309 $ 18,125 The effective tax rates were 25.7% , 25.8% , and 25.8% for years ended December 31, 2016 , 2015 , and 2014 , respectively. Tax credits totaled approximately $2.0 million , $913,000 , and $667,000 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic EPS is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares outstanding attributable to stock awards. There were 178 anti-dilutive stock options for the year ended December 31, 2016 , compared to 79,315 and 169,670 shares for the years ended December 31, 2015 and 2014 , respectively, which were excluded from the calculation of diluted EPS. The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 2016 , 2015 , and 2014 (in thousands except per share data): Net Income (Numerator) Weighted Average Shares (Denominator) Per Share Amount For the Year Ended December 31, 2016 Basic EPS $ 77,476 43,784 $ 1.77 Effect of dilutive stock awards — 106 — Diluted EPS $ 77,476 43,890 $ 1.77 For the Year Ended December 31, 2015 Basic EPS $ 67,079 45,055 $ 1.49 Effect of dilutive stock awards — 84 — Diluted EPS $ 67,079 45,139 $ 1.49 For the Year Ended December 31, 2014 Basic EPS $ 52,164 46,036 $ 1.13 Effect of dilutive stock awards — 95 — Diluted EPS $ 52,164 46,131 $ 1.13 |
SEGMENT REPORTING DISCLOSURES
SEGMENT REPORTING DISCLOSURES | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING DISCLOSURES | SEGMENT REPORTING DISCLOSURES The Company has two reportable segments: a traditional full service community bank segment and a mortgage loan origination business segment. The community bank segment includes one subsidiary bank, which provides loan, deposit, investment, and trust services to retail and commercial customers throughout its 114 retail locations in Virginia. The mortgage segment includes UMG, which provides a variety of mortgage loan products principally in Virginia, North Carolina, Maryland, and the Washington D.C. metro area. These loans are originated and primarily sold in the secondary market through purchase commitments from investors, which serves to mitigate the Company’s exposure to interest rate risk. Profit and loss is measured by net income after taxes including realized gains and losses on the Company’s investment portfolio. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Inter-segment transactions are recorded at cost and eliminated as part of the consolidation process. Both of the Company’s reportable segments are service-based. The mortgage segment’s business is a primarily fee-based business while the bank segment’s is driven principally by net interest income. The bank segment provides a distribution and referral network through its customers for the mortgage loan origination business. The mortgage segment offers a more limited referral network for the bank segment. The community bank segment provides the mortgage segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest. The interest rate on the warehouse line of credit was the three month LIBOR rate plus 0.15% with no floor for the years ended December 31, 2016 and December 31, 2015 . During the year ended December 31, 2014 , the interest rate on the warehouse line of credit was the three month LIBOR rate plus 1.5% with a floor of 2.0% through May 31, 2014; beginning June 1, 2014, the interest rate was the one month LIBOR rate plus 1.5% with no floor. These transactions are eliminated in the consolidation process. During 2015 , the mortgage segment began originating loans with the intent that they be held for investment purposes. The community bank segment provides the mortgage segment with the long-term funds needed to originate these loans through a long-term funding facility and charges the mortgage segment interest. The interest charged is determined by the community bank segment based on the cost of funds available to the community bank segment for similar durations of the loans being funded by the mortgage segment. A management fee for operations and administrative support services is charged to all subsidiaries and eliminated in the consolidated totals. Information about reportable segments and reconciliation of such information to the consolidated financial statements for years ended December 31, 2016 , 2015 , and 2014 is as follows (dollars in thousands): UNION BANKSHARES CORPORATION AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION Community Bank Mortgage Eliminations Consolidated Year Ended December 31, 2016 Net interest income $ 263,714 $ 1,436 $ — $ 265,150 Provision for credit losses 8,883 217 — 9,100 Net interest income after provision for credit losses 254,831 1,219 — 256,050 Noninterest income 59,505 12,008 (606 ) 70,907 Noninterest expenses 212,774 10,535 (606 ) 222,703 Income before income taxes 101,562 2,692 — 104,254 Income tax expense 25,846 932 — 26,778 Net income $ 75,716 $ 1,760 $ — $ 77,476 Total assets $ 8,419,625 $ 93,581 $ (86,413 ) $ 8,426,793 Year Ended December 31, 2015 Net interest income $ 250,510 $ 1,324 $ — $ 251,834 Provision for credit losses 9,450 121 — 9,571 Net interest income after provision for credit losses 241,060 1,203 — 242,263 Noninterest income 55,645 10,044 (682 ) 65,007 Noninterest expenses 205,993 11,571 (682 ) 216,882 Income (loss) before income taxes 90,712 (324 ) — 90,388 Income tax expense (benefit) 23,431 (122 ) — 23,309 Net income (loss) $ 67,281 $ (202 ) $ — $ 67,079 Total assets $ 7,690,132 $ 57,900 $ (54,741 ) $ 7,693,291 Year Ended December 31, 2014 Net interest income $ 253,956 $ 1,062 $ — $ 255,018 Provision for credit losses 7,800 — — 7,800 Net interest income after provision for credit losses 246,156 1,062 — 247,218 Noninterest income 51,878 10,091 (682 ) 61,287 Noninterest expenses 222,311 16,587 (682 ) 238,216 Income (loss) before income taxes 75,723 (5,434 ) — 70,289 Income tax expense (benefit) 20,061 (1,936 ) — 18,125 Net income (loss) $ 55,662 $ (3,498 ) $ — $ 52,164 Total assets $ 7,354,058 $ 51,485 $ (46,900 ) $ 7,358,643 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company may have loans issued to its executive officers, directors, and principal stockholders. Pursuant to its policy, such loans are issued on the same terms as those prevailing at the time for comparable loans to unrelated persons and do not involve more than the normal risk of collectability. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | PARENT COMPANY FINANCIAL INFORMATION The primary source of funds for the dividends paid by Union Bankshares Corporation (for this note only, the “Parent Company”) is dividends received from its subsidiaries. The payments of dividends by the Bank to the Parent Company are subject to certain statutory limitations which contemplate that the current year earnings and earnings retained for the two preceding years may be paid to the Parent Company without regulatory approval. As of December 31, 2016 , the aggregate amount of unrestricted funds that could be transferred from the Bank to the Parent Company without prior regulatory approval totaled approximately $37.1 million , or 3.71% , of the consolidated net assets. Financial information for the Parent Company is as follows: PARENT COMPANY CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2016 and 2015 (Dollars in thousands) 2016 2015 ASSETS Cash $ 10,681 $ 10,386 Premises and equipment, net 11,470 11,875 Other assets 10,864 8,462 Investment in subsidiaries 1,213,484 1,067,611 Total assets $ 1,246,499 $ 1,098,334 LIABILITIES AND STOCKHOLDERS' EQUITY Long-term borrowings 148,000 7,500 Trust preferred capital notes 86,559 86,312 Other liabilities 10,908 9,155 Total liabilities 245,467 102,967 Total stockholders' equity 1,001,032 995,367 Total liabilities and stockholders' equity $ 1,246,499 $ 1,098,334 PARENT COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2016 , 2015 , and 2014 (Dollars in thousands) 2016 2015 2014 Income: Interest and dividend income $ 23 $ 8 $ 5 Dividends received from subsidiaries 51,439 51,496 75,470 Equity in (distributed) undistributed net income from subsidiaries 31,984 20,800 (15,909 ) Other operating income 1,314 1,228 1,393 Total income 84,760 73,532 60,959 Expenses: Interest expense 5,656 4,697 4,581 Occupancy expenses 549 556 573 Furniture and equipment expenses 18 9 20 Other operating expenses 1,061 1,191 3,621 Total expenses 7,284 6,453 8,795 Net income $ 77,476 $ 67,079 $ 52,164 Comprehensive income $ 67,415 $ 61,076 $ 66,609 PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2016 , 2015 , and 2014 (Dollars in thousands) 2016 2015 2014 Operating activities: Net income $ 77,476 $ 67,079 $ 52,164 Adjustments to reconcile net income to net cash provided by operating activities: Equity in distributed (undistributed) net income of subsidiaries (31,984 ) (20,800 ) 15,909 Depreciation of premises and equipment 438 435 464 Acquisition accounting amortization, net 247 235 224 Issuance of common stock grants for services 533 564 713 Net (increase) decrease in other assets (2,402 ) 902 2,964 Net (decrease) increase in other liabilities 5,533 6,124 (7,286 ) Net cash and cash equivalents provided by operating activities 49,841 54,539 65,152 Investing activities: Net decrease (increase) in premises and equipment (33 ) (35 ) 863 Payments for equity method investment — (355 ) (60 ) Payments for investments in and advances to subsidiaries (125,000 ) — — Repayment of investments in and advances to subsidiaries 540 — — Cash received in acquisitions — — 4,735 Net cash and cash equivalents provided by (used in) investing activities (124,493 ) (390 ) 5,538 Financing activities: Advances (repayments) of short-term borrowings — (8,000 ) 8,000 Repayments of long-term borrowings (7,500 ) (625 ) (625 ) Proceeds from issuance of long-term borrowings 148,000 — — Cash dividends paid (33,672 ) (29,082 ) (25,494 ) Net Issuance (repurchase) of common stock (31,881 ) (15,748 ) (52,971 ) Net cash and cash equivalents provided by (used in) financing activities 74,947 (53,455 ) (71,090 ) Net increase (decrease) in cash and cash equivalents 295 694 (400 ) Cash and cash equivalents at beginning of the period 10,386 9,692 10,092 Cash and cash equivalents at end of the period $ 10,681 $ 10,386 $ 9,692 Supplemental schedule of noncash investing and financing activities Issuance of common stock in exchange for net assets in acquisition $ — $ — $ 549,523 Transactions related to bank acquisition Assets acquired — — 2,957,521 Liabilities assumed — — 2,642,120 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations - Headquartered in Richmond, Virginia, the Company is the largest community banking organization headquartered in Virginia and operates in all major banking markets throughout the Commonwealth. The Company is the holding company for Union Bank & Trust, which provides banking, trust, and wealth management services and has a statewide presence of 114 bank branches and approximately 185 ATMs. Non-bank affiliates of the Company include: Union Mortgage Group, Inc., which provides a full line of mortgage products; Union Insurance Group, LLC, which provides various lines of insurance products; and Old Dominion Capital Management, Inc., which provides investment advisory services. Effective January 1, 2016, Union Investment Services, Inc., which provided securities, brokerage, and investment advisory services, was fully consolidated with the Bank. |
Principles of Consolidation | Principles of Consolidation - The consolidated financial statements include the accounts of the Company, which is a financial holding company and a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Union Bank & Trust and of Union Insurance Group, LLC, Union Mortgage Group, Inc., and Old Dominion Capital Management, Inc. The Company’s Statutory Trusts I and II, wholly owned subsidiaries of the Company, were formed for the purpose of issuing redeemable trust preferred capital notes in connection with two of the Company’s acquisitions prior to 2006. ASC 860, Transfers and Servicing , precludes the Company from consolidating Statutory Trusts I and II. The subordinated debts payable to the trusts are reported as liabilities of the Company. All significant inter-company balances and transactions have been eliminated. |
Variable Interest Entities | Variable Interest Entities - Current accounting guidance states that if a business enterprise is the primary beneficiary of a variable interest entity, the assets, liabilities, and results of the activities of the variable interest entity should be included in the consolidated financial statements of the business enterprise. This interpretation explains how to identify variable interest entities and how an enterprise assesses its interest in a variable interest entity to decide whether to consolidate the entity. It also requires existing unconsolidated variable interest entities to be consolidated by their primary beneficiaries if the entities do not effectively disperse risks among parties involved. Variable interest entities that effectively disperse risks will not be consolidated unless a single party holds an interest or combination of interests that effectively recombines risks that were previously dispersed. Management has evaluated the Company’s investment in variable interest entities. The Company’s primary exposure to variable interest entities are the trust preferred securities structures. This accounting guidance has not had a material impact on the financial condition or operating results of the Company. |
Use of Estimates | Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the ALL, the valuation of goodwill and intangible assets, other real estate owned, deferred tax assets and liabilities, other-than-temporary impairment of securities, and the fair value of financial instruments. |
Business Combinations | Business Combinations - Business combinations are accounted for under ASC 805, Business Combinations , using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company utilizes third party valuations, appraisals, and internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company will identify the acquiree and the closing date and apply applicable recognition principles and conditions. If they are necessary to implement its plan to exit an activity of an acquiree, costs that the Company expects, but is not obligated, to incur in the future are not liabilities at the acquisition date, nor are costs to terminate the employment or relocate an acquiree’s employees. The Company does not recognize these costs as part of applying the acquisition method. Instead, the Company recognizes these costs as expenses in its post-combination financial statements in accordance with other applicable GAAP. Acquisition-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants, and advertising costs. The Company will account for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities will be recognized in accordance with other applicable accounting guidance. These acquisition-related costs are included within the Company’s Consolidated Statements of Income classified within the noninterest expense caption. |
Cash and Cash Equivalents | Cash and Cash Equivalents - For purposes of reporting cash flows, the Company defines cash and cash equivalents as cash, cash due from banks, interest-bearing deposits in other banks, money market investments, other interest-bearing deposits, and federal funds sold. |
Investment Securities | Investment Securities - Securities classified as available for sale are those debt and equity securities that management intends to hold for an indefinite period of time, including securities used as part of the Company’s asset/liability strategy, and that may be sold in response to changes in interest rates, liquidity needs, or other factors. Securities available for sale are reported at fair value, with unrealized gains or losses, net of deferred taxes, included in accumulated other comprehensive income in stockholders’ equity. Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost. Transfers of debt securities into the held to maturity category from the available for sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income and in the carrying value of the held to maturity securities. Such amounts are amortized over the remaining life of the security. Securities classified as held for trading are those debt and equity securities that are bought and held principally for the purpose of selling them in the near term and are reported at fair value, with unrealized gains and losses included in earnings. The Company has no securities in this category. Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating OTTI losses, an impairment is other-than-temporary if any of the following conditions exist: the entity intends to sell the security; it is more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis; or, the entity does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell). If a credit loss exists, but an entity does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, the impairment is other-than-temporary and should be separated into a credit portion to be recognized in earnings and the remaining amount relating to all other factors recognized as other comprehensive loss. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Due to restrictions placed upon the Company’s common stock investments in the Federal Reserve Bank and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications. The FHLB required the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the member’s total assets at December 31, 2016 and 2015 . The Federal Reserve Bank requires the Company to maintain stock with a par value equal to 6% of its outstanding capital. |
Loans Held for Sale | Loans Held for Sale - For loans originated prior to 2015, loans originated and intended for sale in the secondary market are sold, servicing released, and carried at the lower of cost or estimated fair value, which is determined in the aggregate based on sales commitments to permanent investors or on current market rates for loans of similar quality and type. During 2015, the Company transitioned from the lower of cost or estimated fair value method and elected the fair value option for loans held for sale. For further information regarding the fair value method and assumptions, refer to Note 13 “Fair Value Measurements.” In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The change in fair value of loans held for sale is recorded as a component of “Mortgage banking income, net” within the Company’s Consolidated Statements of Income. |
Loans | Loans - The Company originates commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by commercial and residential real estate loans (including acquisition and development loans and residential construction loans) throughout its market area. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in those markets. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for any charge-offs, the ALL, and any deferred fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Beginning January 1, 2016, the Company enhanced the loan segmentation to better align with how the Company manages credit risk and to better align with industry practice. Below is a summary of the new loan segmentation: Construction and Land Development – construction loans generally made to commercial and residential builders for specific construction projects. The successful repayment of these types of loans is generally dependent upon (a) a commitment for permanent financing from the Company, or (b) from the sale of the constructed property. These loans carry more risk than both types of commercial real estate term loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. As in commercial real estate term lending, the Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations to any one business or industry. Also, included in this category are loans generally made to residential home builders to support their lot and home inventory needs. Repayment relies upon the successful performance of the underlying residential real estate project. This type of lending carries a higher level of risk as compared to other commercial lending. This class of lending reflects risks related to residential real estate market conditions, a functioning first and secondary market in which to sell residential properties, and the borrower’s ability to manage inventory and run projects. The Company manages this risk by lending to experienced builders and developers by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations with any particular customer or geographic region. Commercial Real Estate – Owner Occupied - term loans made to support owner occupied real estate properties that rely upon the successful operation of the business occupying the property for repayment. General market conditions and economic activity may affect these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by avoiding concentrations to any one business or industry. Commercial Real Estate – Non-Owner Occupied - term loans typically made to borrowers to support income producing properties that rely upon the successful operation of the property for repayment. General market conditions and economic activity may impact the performance of these types of loans. In addition to using specific underwriting policies and procedures for these types of loans, the Company manages risk by diversifying the lending to various lines of businesses, such as retail, office, office warehouse, and hotel as well as avoiding concentrations to any one business or industry. Residential 1-4 Family – loans generally made to both commercial and residential borrowers. Residential 1-4 family loan portfolios carry risks associated with the creditworthiness of the borrower or the tenant and changes in loan-to-value ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, experienced underwriting, requiring standards for appraisers, and not making subprime loans. Multifamily Real Estate – loans made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance and collection of rents due from tenants. This type of lending carries a lower level of risk as compared to other commercial lending. In addition, underwriting requirements for multifamily properties are stricter than for other non-owner-occupied property types. The Company manages this risk by avoiding concentrations with any particular customer. Commercial & Industrial – loans generally made to support the Company’s borrowers’ need for equipment/vehicle purchases and short-term or seasonal cash flow needs. Repayment relies upon the successful operation of the business. This type of lending carries a lower level of commercial credit risk as compared to other commercial lending. The Company manages this risk by using general underwriting policies and procedures for these types of loans and by avoiding concentrations to any one business or industry. HELOC – the consumer HELOC portfolio carries risks associated with the creditworthiness of the borrower and changes in loan-to-value ratios. The Company manages these risks through policies and procedures, such as limiting loan-to-value ratios at origination, using experienced underwriting, requiring standards for appraisers, and not making subprime loans. Auto – the consumer indirect auto lending portfolio generally carries certain risks associated with the values of the collateral that management must mitigate. The Company focuses its indirect auto lending on one to two year old used vehicles where substantial depreciation has already occurred thereby minimizing the risk of significant loss of collateral values in the future. This type of lending places reliance on computer-based loan approval systems to supplement other underwriting standards. Consumer and all other - portfolios carry risks associated with the creditworthiness of the borrower and changes in the economic environment. The Company manages these risks through policies and procedures such as experienced underwriting, maximum debt to income ratios, and minimum borrower credit scores. Also included in this category are loans that generally support small business lines of credit and agricultural lending, neither of which are a material source of business for the Company. Nonaccruals, Past Dues, and Charge-offs The policy for placing commercial loans on nonaccrual status is generally when the loan is 90 days delinquent unless the credit is well secured and in process of collection but, generally, not later than 180 days past due. Consumer loans are typically charged-off when management judges the loan to be uncollectible but generally no later than 120 days past due for non-real estate secured loans and 180 days for real estate secured loans. These loans are generally not placed on nonaccrual status prior to charge off. Commercial loans are typically written down to net realizable value when it is determined that the Company will be unable to collect the principal amount in full and the amount is a confirmed loss, but generally not later than 180 days past due. All classes of loans are considered past due or delinquent when a contractual payment has not been satisfied. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal and interest is considered doubtful and in accordance with regulatory requirements. The process for charge-offs of impaired collateral dependent loans is discussed in detail within the “Allowance for Loan Losses” section of this Note. For both the commercial and consumer loan segments, all interest accrued but not collected for loans placed on nonaccrual status or charged-off is reversed against interest income and accrual of interest income is terminated. Payments and interest on these loans are accounted for using the cost-recovery method by applying all payments received as a reduction to the outstanding principal balance until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The determination of future payments being reasonably assured varies depending on the circumstances present with the loan; however, the timely payment of contractual amounts owed for six consecutive months is a primary indicator. In addition, the return of a loan to accrual status is considered and approved by the Company’s Special Assets Loan Committee. |
Allowance for Loan Losses | Allowance for Loan Losses The provision for loan losses charged to operations is an amount sufficient to bring the ALL to an estimated balance that management considers adequate to absorb probable losses inherent in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely, while recoveries of amounts previously charged-off are credited to the ALL. Management’s determination of the adequacy of the ALL is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. Management believes that the ALL is adequate. The Company performs regular credit reviews of the loan portfolio to review the credit quality and adherence to its underwriting standards. The credit reviews consist of reviews by its Loan Review Group. Upon origination, each commercial loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk. This risk rating scale is the Company’s primary credit quality indicator. Consumer loans are generally not risk rated; the primary credit quality indicator for this loan segment is delinquency status. The Company has various committees that review and ensure that the ALL methodology is in accordance with GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio. The Company’s ALL consists of specific, general, and qualitative components. Specific Reserve Component The specific reserve component relates to impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Upon being identified as impaired, for loans not considered to be collateral dependent, an ALL is established when the discounted cash flows of the impaired loan are lower than the carrying value of that loan. The impairment of collateral dependent loans is measured based on the fair value of the underlying collateral, less selling costs, compared to the carrying value of the loan. If the Company determines that the value of an impaired collateral dependent loan is less than the recorded investment in the loan, it either recognizes an impairment reserve as a specific component to be provided for in the ALL or charges off the deficiency if it is determined that such amount represents a confirmed loss. Typically, a loss is confirmed when the Company is moving towards foreclosure (or final disposition) of the underlying collateral, the collateral deficiency has not improved for two consecutive quarters, or when there is a payment default of 180 days, whichever occurs first. The Company obtains independent appraisals from a pre-approved list of independent, third party appraisal firms located in the market in which the collateral is located. The Company’s approved appraiser list is continuously maintained to ensure the list only includes such appraisers that have the experience, reputation, character, and knowledge of the respective real estate market. At a minimum, it is ascertained that the appraiser is currently licensed in the state in which the property is located, experienced in the appraisal of properties similar to the property being appraised, has knowledge of current real estate market conditions and financing trends, and is reputable. The Company’s internal Real Estate Valuation Group, which reports to the Risk and Compliance Group, performs either a technical or administrative review of all appraisals obtained. A technical review will ensure the overall quality of the appraisal, while an administrative review ensures that all of the required components of an appraisal are present. Generally, independent appraisals are updated every 12 to 24 months , or as necessary. The Company’s impairment analysis documents the date of the appraisal used in the analysis, whether the officer preparing the report deems it current, and, if not, allows for internal valuation adjustments with justification. Adjustments to appraisals generally include discounts for continued market deterioration subsequent to the appraisal date. Any adjustments from the appraised value to carrying value are documented in the impairment analysis, which is reviewed and approved by senior credit administration officers and the Special Assets Loan Committee. External appraisals are the primary source to value collateral dependent loans; however, the Company may also utilize values obtained through other valuation sources. These alternative sources of value are used only if deemed to be more representative of value based on updated information regarding collateral resolution. Impairment analyses are updated, reviewed, and approved on a quarterly basis at or near the end of each reporting period. General Reserve Component The general reserve component covers non-impaired loans and is quantitatively derived from an estimate of credit losses adjusted for various environmental factors applicable to both commercial and consumer loan segments. The estimate of credit losses is a function of the net charge-off historical loss experience to the average loan balance of the portfolio averaged during a period that management has determined to be adequately reflective of the losses inherent in the loan portfolio. Effective December 31, 2016, the Company implemented a rolling 20-quarter look back period, which is re-evaluated on a periodic basis to ensure reasonableness of period being utilized. Previously, the Company had utilized a 12-quarter look back period. The change to the 20-quarter look back period is due to the protracted recovery in the economy and management's conclusion that a 20-quarter period better reflects a full economic cycle. This change did not have a material impact on the Company's ALL. The qualitative environmental factors consist of portfolio, national/international, and local characteristics and are applied to both the commercial and consumer loan segments. The following table shows the types of environmental factors management considers: ENVIRONMENTAL FACTORS Portfolio National / International Local Experience and ability of lending team Interest rates Level of economic activity Compare ratio consideration Inflation Unemployment Pace of loan growth Unemployment Competition Footprint and expansion Gross domestic product Military/government impact Execution of loan risk rating process General market risk and other concerns Degree of oversight Legislative and regulatory environment Underwriting standards International uncertainty Delinquency levels in portfolio Home Price Index Charge-off levels in portfolio Commercial Real Estate Price Index Credit concentrations / nature and volume of the portfolio |
Impaired Loans | Impaired Loans- A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The impairment loan policy is the same for all segments within the commercial loan segment. For the consumer loan segment, large groups of smaller balance homogeneous loans are collectively evaluated for impairment. This evaluation subjects each of the Company’s homogenous pools to a historical loss factor derived from net charge-offs experienced over the preceding twenty quarters. The Company applies payments received on impaired loans to principal and interest based on the contractual terms until they are placed on nonaccrual status. All payments received are then applied to reduce the principal balance and recognition of interest income is terminated as previously discussed. |
Acquired Loans | Acquired Loans – Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALL, as credit discounts are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either acquired impaired (or PCI) or acquired performing. Acquired impaired loans reflect credit quality deterioration since origination, as it is probable at acquisition that the Company will not be able to collect all contractually required payments. These PCI loans are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality . The PCI loans are segregated into pools based on loan type and credit risk. Loan type is determined based on collateral type, purpose, and lien position. Credit risk characteristics include risk rating groups, nonaccrual status, and past due status. For valuation purposes, these pools are further disaggregated by maturity, pricing characteristics, and re-payment structure. PCI loans are written down at acquisition to fair value using an estimate of cash flows deemed to be collectible. Accordingly, such loans are no longer classified as nonaccrual even though they may be contractually past due because the Company expects to fully collect the new carrying values of such loans, which is the new cost basis arising from purchase accounting. A loan will be removed from a pool (at its carrying value) only if the loan is sold, foreclosed, or assets are received in full satisfaction of the loan. For purposes of removing the loan from the pool, the carrying value is deemed to equal the amount of principal cash flows received in lieu of the loan balance. This treatment ensures that the percentage yield calculation used to recognize accretable yield on the pool of loans is not affected. Periodically, management performs a recast of PCI loans based on updated future expected cash flows, which are updated through reassessment of default rates, loss severity, and prepayment speed assumptions. The excess of the cash flows expected to be collected over a pool’s carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the loan or pool using the effective yield method. The accretable yield may change due to changes in the timing and amounts of expected cash flows; these changes are disclosed in Note 4 “Loans and Allowance for Loan Losses.” The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference, which represents the estimate of credit losses expected to occur and was considered in determining the fair value of loan at the acquisition date. Any subsequent increases in expected cash flows over those expected at the acquisition date in excess of fair value are adjusted through an increase in the accretable yield on a prospective basis; any decreases in expected cash flows attributable to credit deterioration are recognized by recording a provision for loan losses. The Company’s policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference for the entire pool. This removal method assumes that the amount received from resolution approximates pool performance expectations. The remaining accretable yield balance is unaffected and any material change in remaining effective yield caused by this removal method is addressed by the quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no release of the nonaccretable difference for the pool because there is no difference between the amount received at resolution and the contractual amount of the loan. The PCI loans are and will continue to be subject to the Company’s internal and external credit review and monitoring. If further credit deterioration is experienced, such deterioration will be measured and the provision for loan losses will be increased. At acquisition, loans with active revolving privileges are excluded from the PCI accounting; however, PCI loans do occasionally draw additional funds from the Company. These advances will increase the recorded investment of the PCI loan and will be accounted for with the other PCI loans. Acquired performing loans are accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs . The difference between the fair value and unpaid principal balance of the loan at acquisition date (premium or discount) is amortized or accreted into interest income over the life of the loans. If the acquired performing loan has revolving privileges, it is accounted for using the straight line method; otherwise, the effective interest method is used. |
Troubled Debt Restructurings | Troubled Debt Restructurings - In situations where, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. Restructured loans for which there was no rate concession, and therefore made at a market rate of interest, may subsequently be eligible to be removed from TDR status in periods subsequent to the restructuring depending on the performance of the loan. The Company reviews previously restructured loans quarterly in order to determine whether any have performed, subsequent to the restructure, at a level that would allow for them to be removed from TDR status. The Company generally would consider a change in this classification if the borrower is no longer experiencing financial difficulties, the loan has performed under the restructured terms for a consecutive twelve month period, and is no longer considered to be impaired. All changes to TDR designations must be approved by the Bank's Special Asset Loan Committee. Loans removed from TDR status are collectively evaluated for impairment; due to the significant improvement in the expected future cash flows, these loans are grouped based on their primary risk characteristics, which is included in the Company's general reserve. Impairment is measured based on historical loss experience taking into consideration environmental factors. The significant majority of these loans have been subject to new credit decisions due to the improvement in the expected future cash flows, the financial condition of the borrower, and other factors considered during the re-underwriting. The TDR activity during the year did not have a material impact on the Company’s ALL, financial condition, or results of operations. |
Premises and Equipment | Premises and Equipment - Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based on the type of asset involved. The Company’s policy is to capitalize additions and improvements and to depreciate the cost thereof over their estimated useful lives ranging from 3 to 50 years . Leasehold improvements are amortized over the shorter of the life of the related lease or the estimated life of the related asset. Maintenance and repairs are expensed as they are incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets - The Company has an aggregate goodwill balance of $298.2 million associated with previous merger transactions. Goodwill is associated with the both the commercial banking and mortgage segments. Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company has selected April 30 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives, which range from 4 to 14 years , to their estimated residual values. Goodwill is the only intangible asset with an indefinite life included on the Company’s Consolidated Balance Sheets. Long-lived assets, including purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented on the Company's Consolidated Balance Sheets and reported at the lower of the carrying amount or fair value less costs to sell, would no longer depreciated. Management concluded that no circumstances indicating an impairment of these assets existed as of the balance sheet date. The Company performed its annual impairment testing on April 30, 2016 and determined that there was no impairment to its goodwill or intangible assets. Management performed a review through December 31, 2016 and concluded that no factors indicating impairment existed as of the balance sheet date. |
Other Real Estate Owned | Other Real Estate Owned - Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. When the carrying amount exceeds the acquisition date fair value less selling costs, the excess is charged off against the ALL. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell, any valuation adjustments occurring from post-acquisition reviews are charged to expense as incurred. Revenue and expenses from operations and changes in the valuation allowance are included in OREO and credit-related expenses, disclosed in a separate line item on the Company’s Consolidated Statements of Income. |
Transfers of Financial Assets | Transfers of Financial Assets - Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Bank Owned Life Insurance | Bank Owned Life Insurance - The Company has purchased life insurance on certain key employees and directors. These policies are recorded at their cash surrender value and are included in a separate line item on the Company’s Consolidated Balance Sheets. Income generated from policies is recorded as noninterest income. |
Derivatives | Derivatives - Derivatives are recognized as assets and liabilities on the Company’s Consolidated Balance Sheets and measured at fair value. The Company’s derivatives are interest rate swap agreements and interest rate lock commitments. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. All derivatives are recorded at fair value on the balance sheet. The Company may be required to recognize certain contracts and commitments as derivatives when the characteristics of those contracts and commitments meet the definition of a derivative. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. The Company considers a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80% to 125% of the opposite change in the fair value of the hedged item attributable to the hedged risk. If derivative instruments are designated as hedges of fair values, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. The Company enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment, closing, and sale of the loan generally ranges from 30 to 120 days . The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to material losses and will not realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is high due to their similarity. The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. The fair value of the rate lock commitments is reported as a component of “Other Assets” in the Company’s Consolidated Balance Sheets; the fair value of the Company’s best efforts forward delivery commitments is recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets. Any impact to income is recorded in current period earnings as a component of “Mortgage banking income, net” on the Company’s Consolidated Statements of Income. |
Affordable Housing Entities [Policy Text Block] | Affordable Housing Entities - The Company invests in private investment funds that make equity investments in multifamily affordable housing properties that provide affordable housing tax credits for these investments. The activities of these entities are financed with a combination of invested equity capital and debt. |
Loan Fees | Loan Fees - Fees collected and certain costs incurred related to loan originations are deferred and amortized as an adjustment to interest income over the life of the related loans. Deferred fees and costs are recorded as an adjustment to loans outstanding using a method that approximates a constant yield. |
Stock Compensation Plan | Stock Compensation Plan - The Company has adopted ASC 718, Compensation – Stock Compensation , which requires the costs resulting from all stock-based payments to employees be recognized in the financial statements. For stock options, compensation cost is estimated at the date of grant, using the Black-Scholes option valuation model for determining fair value of stock options. No options were granted in 2016 or 2015 . The market price of the Company’s common stock at the date of grant is used for nonvested stock awards. The fair value of performance stock units (“PSUs”) granted in 2016 and 2015 is determined and fixed on the grant date based on the Company’s stock price, adjusted for the exclusion of dividend equivalents. The Monte Carlo simulation valuation model was used to determine the grant date fair value of PSUs granted in 2016 and 2015 . ASC 718 requires the Company to estimate forfeitures when recognizing compensation expense and that this estimate of forfeitures be adjusted over the requisite service period or vesting schedule based on the extent to which actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment, which is recognized in the period of change, and also will affect the amount of estimated unamortized compensation expense to be recognized in future periods. For more information and tables refer to Note 14 “Employee Benefits and Stock Based Compensation.” |
Income Taxes | Income Taxes - Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits on the Company's Consolidated Balance Sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. |
Advertising Costs | Advertising Costs - The Company follows a policy of charging the cost of advertising to expense as incurred. Advertising costs are disclosed in a separate line item on the Company’s Consolidated Statements of Income. |
Earnings Per Common Share | Earnings Per Common Share – Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and restricted stock and are determined using the treasury stock method. |
Comprehensive Income | Comprehensive Income - Comprehensive income represents all changes in equity that result from recognized transactions and other economic events of the period. Other comprehensive income (loss) refers to revenues, expenses, gains, and losses under GAAP that are included in comprehensive income but excluded from net income, such as unrealized gains and losses on certain investments in debt and equity securities and interest rate swaps. |
Off Balance Sheet Credit Related Financial Instruments | Off Balance Sheet Credit Related Financial Instruments - In the ordinary course of business, the Company has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded when they are funded. For more information and tables refer Note 9 “Commitments and Contingencies.” |
Fair Value | Fair Value - The Company follows ASC 820, Fair Value Measurements and Disclosures , to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants. ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows: Level 1 valuation is based on quoted prices in active markets for identical assets and liabilities; Level 2 valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets; and Level 3 valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort. For more specific information on the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value in the financial statements refer to Note 13 “Fair Value Measurements” |
Concentrations of Credit Risk | Concentrations of Credit Risk - Most of the Company’s activities are with customers located in portions of Central, Southwest, and Tidewater Virginia. Securities available for sale, loans, and financial instruments with off balance sheet risk also represent concentrations of credit risk and are discussed in Note 3 “Securities,” Note 4 “Loans and Allowance for Loan Losses,” and Note 9 “Commitments and Contingencies,” respectively. |
Reclassifications | Reclassifications – The accompanying consolidated financial statements and notes reflect certain reclassifications in prior periods to conform to the current presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers: Topic 606 .” This ASU revised guidance for the recognition, measurement, and disclosure of revenue from contracts with customers. The original guidance has been amended through subsequent accounting standard updates that resulted in technical corrections, improvements, and a one-year deferral of the effective date to January 1, 2018. The guidance, as amended, is applicable to all entities and, once effective, will replace significant portions of existing industry and transaction-specific revenue recognition rules with a more principles-based recognition model. Most revenue associated with financial instruments, including interest income, loan origination fees, and credit card fees, is outside the scope of the guidance. Gains and losses on investment securities, derivatives, and sales of financial instruments are similarly excluded from the scope. Entities can elect to adopt the guidance either on a full or modified retrospective basis. Full retrospective adoption will require a cumulative effect adjustment to retained earnings as of the beginning of the earliest comparative period presented. Modified retrospective adoption will require a cumulative effect adjustment to retained earnings as of the beginning of the reporting period in which the entity first applies the new guidance. The Company plans to adopt this guidance on the effective date, January 1, 2018. The Company is finalizing its assessment of the adoption of this ASU and the related subsequent technical corrections issued; however, based on the work performed, the Company does not anticipate that there will be a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities .” This ASU requires an entity to, among other things: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in OCI the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. The ASU provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The ASU also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is only permitted for the provision related to instrument-specific credit risk. The Company is currently assessing the impact ASU No. 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842). ” This ASU requires lessees to put most leases on their balance sheets, but recognize expenses in the income statement in a manner similar to today’s accounting. The guidance also eliminates the real estate-specific provisions and changes the guidance on sale-leaseback transactions, initial direct costs, and lease executory costs for all entities. For lessors, the standard modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. Upon adoption, the Company will record a right of use asset and a lease payment obligation associated with arrangements previously accounted for as operating leases. The Company is currently assessing the impact ASU No. 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, “ Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships .” This ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not, in and of itself, be considered a termination of the derivative instrument or a change in a critical term of the hedging relationship. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU No. 2016-05 to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-06, “ Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments .” This ASU clarifies that in assessing whether an embedded contingent put or call option is clearly and closely related to the debt host, an entity is required to perform only the four-step decision sequence in ASC 815-15-25-42 (as amended by the ASU). The entity does not have to separately assess whether the event that triggers its ability to exercise the contingent option is itself indexed only to interest rates or credit risk. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company has concluded the adoption of ASU No. 2016-06 will not have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “ Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting .” This ASU simplifies the equity method of accounting by eliminating the requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively and early adoption is permitted. The Company has concluded the adoption of ASU No. 2016-07 will not have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting .” This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted; however, if the Company elects to early adopt, then all amendments must be adopted in the same period. The Company has concluded the adoption of ASU No. 2016-09 will not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ” This ASU updates the existing guidance to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendment replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and required consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective for fiscal years beginning after December 15, 2019. The Company is currently assessing the impact ASU No. 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Payments (a consensus of Merging Issues Task Force)." This ASU attempts to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The purpose of this update is to reduce existing diversity in practice in eight areas addressed by the update. The amendment will be effective for the Company for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company has concluded the adoption of ASU No. 2016-15 will not have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, " Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This ASU modifies the accounting for intra-entity transfers of assets other than inventory. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted. The Company has concluded the adoption of ASU No. 2016-16 will not have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-17, " Consolidation (Topic 810): Interests Held through Related Parties that are under Common Control." This ASU revises the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments will be effective for the Company for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. Early adoption is permitted. The Company has concluded the adoption of ASU No. 2016-17 will not have a material impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." This ASU clarifies how restricted cash is presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted. The Company has concluded the adoption of ASU No. 2016-18 will not have a material impact on its consolidated financial statements. Adoption of New Accounting Standards - In February 2015, the FASB issued revised guidance to simplify the consolidation assessment required to evaluate whether organizations should consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. The guidance also removed the indefinite deferral of specialized guidance for certain investment funds. The Company adopted ASU No. 2015-02, “ Consolidation (Topic 810) Amendments to the Consolidation Analysis ” during the first quarter of 2016. The adoption of ASU No. 2015-02 did not have a material impact on the Company’s consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Environmental Factors | The following table shows the types of environmental factors management considers: ENVIRONMENTAL FACTORS Portfolio National / International Local Experience and ability of lending team Interest rates Level of economic activity Compare ratio consideration Inflation Unemployment Pace of loan growth Unemployment Competition Footprint and expansion Gross domestic product Military/government impact Execution of loan risk rating process General market risk and other concerns Degree of oversight Legislative and regulatory environment Underwriting standards International uncertainty Delinquency levels in portfolio Home Price Index Charge-off levels in portfolio Commercial Real Estate Price Index Credit concentrations / nature and volume of the portfolio |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Acquisition-Related Expenses | A summary of acquisition-related expenses associated with the StellarOne acquisition included on the Consolidated Statements of Income is as follows (dollars in thousands): For the year ended December 31, 2014 Salaries and employee benefits $ 7,875 Professional services 3,736 Other costs of operations 8,734 Total $ 20,345 |
Schedule of Effect of Amortization and Accretion Related to Acquisition | The net effect of the amortization and accretion of premiums and discounts associated with the Company’s acquisition accounting adjustments had the following impact on the Consolidated Statements of Income during the years ended December 31, 2016 , 2015 , and 2014 (dollars in thousands): For the years ended December 31, 2016 2015 2014 Loans (1) $ 5,218 $ 4,355 $ 586 Core deposit intangible (2) (6,930 ) (8,445 ) (9,795 ) Borrowings (3) 458 424 550 Time deposits (4) — 1,843 8,914 Other amortizable intangibles (2) (280 ) — — Net impact to income before taxes $ (1,534 ) $ (1,823 ) $ 255 (1) Loan discount accretion is included in "Interest and fees on loans" in the "Interest and dividend income" section of the Company's Consolidated Statements of Income. (2) Core deposit and other intangible premium amortization is included in "Amortization of intangible assets" in the "Noninterest expense" section of the Company's Consolidated Statements of Income. (3) Borrowings premium accretion is included in "Interest on long-term borrowings" in the "Interest Expense" section of the Company's Consolidated Statements of Income. (4) Certificate of deposit discount accretion is included in "Interest on deposits" in the "Interest expense" section of the Company's Consolidated Statements of Income. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Gross Realized Gain and Losses on the Sale of Securities | The following table presents the gross realized gains and losses on the sale of securities available for sale and the proceeds from the sale of securities available for sale during the years ended December 31, 2016 , 2015 , and 2014 (dollars in thousands). The Company did not sell any investment securities that are held to maturity. 2016 2015 2014 Realized gains (losses): Gross realized gains $ 302 $ 1,597 $ 1,757 Gross realized losses (97 ) (111 ) (62 ) Net realized gains $ 205 $ 1,486 $ 1,695 Proceeds from sales of securities $ 69,516 $ 101,154 $ 289,389 |
Available-for-sale Securities | |
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities | The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available for sale as of December 31, 2016 and 2015 are summarized as follows (dollars in thousands): Amortized Gross Unrealized Estimated Cost Gains (Losses) Fair Value December 31, 2016 Obligations of states and political subdivisions $ 274,007 $ 4,962 $ (3,079 ) $ 275,890 Corporate bonds 123,674 892 (2,786 ) 121,780 Mortgage-backed securities 536,031 4,626 (5,371 ) 535,286 Other securities 13,885 — (77 ) 13,808 Total available for sale securities $ 947,597 $ 10,480 $ (11,313 ) $ 946,764 December 31, 2015 Obligations of states and political subdivisions $ 257,740 $ 10,479 $ (140 ) $ 268,079 Corporate bonds 77,628 55 (1,704 ) 75,979 Mortgage-backed securities 544,823 6,127 (2,779 ) 548,171 Other securities 11,085 — (22 ) 11,063 Total available for sale securities $ 891,276 $ 16,661 $ (4,645 ) $ 903,292 |
Schedule of Gross Unrealized Losses and Fair Value of Investments | The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2016 Obligations of states and political subdivisions $ 108,440 $ (3,007 ) $ 588 $ (72 ) $ 109,028 $ (3,079 ) Mortgage-backed securities 316,469 (4,979 ) 42,096 (392 ) 358,565 (5,371 ) Corporate bonds and other securities 47,388 (1,537 ) 40,468 (1,326 ) 87,856 (2,863 ) Total available for sale $ 472,297 $ (9,523 ) $ 83,152 $ (1,790 ) $ 555,449 $ (11,313 ) December 31, 2015 Obligations of states and political subdivisions $ 8,114 $ (70 ) $ 4,950 $ (70 ) $ 13,064 $ (140 ) Mortgage-backed securities 287,113 (2,442 ) 21,660 (337 ) 308,773 (2,779 ) Corporate bonds and other securities 36,157 (751 ) 19,558 (975 ) 55,715 (1,726 ) Total available for sale $ 331,384 $ (3,263 ) $ 46,168 $ (1,382 ) $ 377,552 $ (4,645 ) |
Schedule of Amortized Cost and Estimated Fair Value of Securities | The following table presents the amortized cost and estimated fair value of securities as of December 31, 2016 and 2015 , by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2016 December 31, 2015 Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due in one year or less $ 21,403 $ 21,517 $ 8,380 $ 8,370 Due after one year through five years 108,198 109,778 65,326 66,996 Due after five years through ten years 300,552 301,888 296,864 301,920 Due after ten years 517,444 513,581 520,706 526,006 Total securities available for sale $ 947,597 $ 946,764 $ 891,276 $ 903,292 |
Schedule of Securities Pledged to Secure Public Deposits, Repurchase Agreements, and for Other Purposes | The following table presents available for sale securities which were pledged to secure public deposits, repurchase agreements, and for other purposes as permitted or required by law as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Estimated Fair Value Estimated Fair Value Public deposits $ 210,546 $ 184,635 Repurchase agreements 108,208 126,120 Other purposes (1) 23,350 26,546 Total pledged securities $ 342,104 $ 337,301 (1) The "Other purposes" category consists of borrowings, derivatives, and accounts held at the Bank. |
Held-to-maturity Securities | |
Schedule of Amortized Cost and Estimated Fair Value of Securities | The following table presents the amortized cost and estimated fair value of held to maturity securities as of December 31, 2016 and 2015 , by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2016 December 31, 2015 Carrying Value (1) Estimated Fair Value Carrying Value (1) Estimated Fair Value Due in one year or less $ 4,403 $ 4,440 $ 1,488 $ 1,491 Due after one year through five years 28,383 28,763 4,294 4,348 Due after five years through ten years 51,730 51,522 44,736 45,501 Due after ten years 117,010 117,590 154,856 158,097 Total securities held to maturity $ 201,526 $ 202,315 $ 205,374 $ 209,437 (1) The carrying value includes $5.2 million and $6.8 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion, as of December 31, 2016 and 2015 , respectively. |
Schedule of Securities Pledged to Secure Public Deposits, Repurchase Agreements, and for Other Purposes | The following table presents the estimated fair value of held to maturity securities which were pledged to secure public deposits as permitted or required by law as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Estimated Estimated Fair Value Fair Value Public deposits $ 197,889 $ 207,140 Total pledged securities $ 197,889 $ 207,140 |
Schedule of Carrying Values, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities | The carrying value, gross unrealized gains and losses, and estimated fair values of securities held to maturity as of December 31, 2016 and 2015 are summarized as follows (dollars in thousands): Carrying Gross Unrealized Estimated Value (1) Gains (Losses) Fair Value December 31, 2016 Obligations of states and political subdivisions $ 201,526 $ 1,617 $ (828 ) $ 202,315 December 31, 2015 Obligations of states and political subdivisions $ 205,374 $ 5,748 $ (1,685 ) $ 209,437 (1) The carrying value includes $5.2 million and $6.8 million of net unrealized gains present at the time of transfer from available for sale securities, net of any accretion, as of December 31, 2016 and 2015 , respectively. |
Gross Unrealized Losses and Fair Value of Securities | The following table shows the gross unrealized losses and fair value (in thousands) of the Company’s held to maturity securities with unrealized losses that are not deemed to be other-than-temporarily impaired. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less than 12 months More than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2016 Obligations of states and political subdivisions $ 92,841 $ (747 ) $ 648 $ (81 ) $ 93,489 $ (828 ) December 31, 2015 Obligations of states and political subdivisions $ 7,056 $ (1,685 ) $ — $ — $ 7,056 $ (1,685 ) |
LOANS AND ALLOWANCE FOR LOAN 33
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans Stated at Face Amount, Net of Unearned Income | Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at December 31, 2016 and 2015 (dollars in thousands): 2016 2015 Construction and Land Development $ 751,131 $ 749,720 Commercial Real Estate - Owner Occupied 857,805 860,086 Commercial Real Estate - Non-Owner Occupied 1,564,295 1,270,480 Multifamily Real Estate 334,276 322,528 Commercial & Industrial 551,526 435,365 Residential 1-4 Family 1,029,547 978,469 Auto 262,071 234,061 HELOC 526,884 516,726 Consumer and all other 429,525 304,027 Total loans held for investment, net (1) $ 6,307,060 $ 5,671,462 (1) Loans, as presented, are net of deferred fees and costs totaling $1.8 million and $3.0 million as of December 31, 2016 and 2015 , respectively. |
Summary of Aging of the Loan Portfolio by Class | The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2016 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and still Accruing PCI Nonaccrual Current Total Loans Construction and Land Development $ 1,162 $ 232 $ 76 $ 2,922 $ 2,037 $ 744,702 $ 751,131 Commercial Real Estate - Owner Occupied 1,842 109 35 18,343 794 836,682 857,805 Commercial Real Estate - Non-Owner Occupied 2,369 — — 17,303 — 1,544,623 1,564,295 Multifamily Real Estate 147 — — 2,066 — 332,063 334,276 Commercial & Industrial 759 858 9 1,074 124 548,702 551,526 Residential 1-4 Family 7,038 534 2,048 16,200 5,279 998,448 1,029,547 Auto 2,570 317 111 — 169 258,904 262,071 HELOC 1,836 1,140 635 1,161 1,279 520,833 526,884 Consumer and all other 2,522 1,431 91 223 291 424,967 429,525 Total loans held for investment $ 20,245 $ 4,621 $ 3,005 $ 59,292 $ 9,973 $ 6,209,924 $ 6,307,060 The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2015 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days and still Accruing PCI Nonaccrual Current Total Loans Construction and Land Development $ 3,155 $ 380 $ 128 $ 5,986 $ 2,113 $ 737,958 $ 749,720 Commercial Real Estate - Owner Occupied 1,714 118 103 27,388 3,904 826,859 860,086 Commercial Real Estate - Non-Owner Occupied 771 — 723 13,519 100 1,255,367 1,270,480 Multifamily Real Estate — — 272 1,555 — 320,701 322,528 Commercial & Industrial 1,056 27 124 1,813 429 431,916 435,365 Residential 1-4 Family 15,023 6,774 3,638 21,159 3,563 928,312 978,469 Auto 2,312 233 60 — 192 231,264 234,061 HELOC 2,589 1,112 762 1,791 1,348 509,124 516,726 Consumer and all other 1,167 689 19 526 287 301,339 304,027 Total loans held for investment $ 27,787 $ 9,333 $ 5,829 $ 73,737 $ 11,936 $ 5,542,840 $ 5,671,462 |
Impaired Loans by Class | The following table shows the Company’s impaired loans, excluding PCI loans, by segment at December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance Loans without a specific allowance Construction and Land Development $ 13,877 $ 14,353 $ — $ 33,250 $ 33,731 $ — Commercial Real Estate - Owner Occupied 5,886 6,042 — 7,781 8,983 — Commercial Real Estate - Non-Owner Occupied 1,399 1,399 — 5,328 5,325 — Multifamily Real Estate — — — 3,828 3,828 — Commercial & Industrial 648 890 — 711 951 — Residential 1-4 Family 8,496 9,518 — 7,564 8,829 — Auto — — — 7 7 — HELOC 1,017 1,094 — 1,786 2,028 — Consumer and all other 230 427 — 211 211 — Total impaired loans without a specific allowance $ 31,553 $ 33,723 $ — $ 60,466 $ 63,893 $ — Loans with a specific allowance Construction and Land Development $ 1,395 $ 1,404 $ 107 $ 3,167 $ 3,218 $ 538 Commercial Real Estate - Owner Occupied 646 646 4 3,237 3,239 358 Commercial Real Estate - Non-Owner Occupied 2,809 2,809 474 907 907 75 Commercial & Industrial 857 880 14 1,952 1,949 441 Residential 1-4 Family 3,335 3,535 200 6,065 6,153 418 Auto 169 235 1 192 199 1 HELOC 323 433 15 769 925 76 Consumer and all other 62 298 1 363 512 95 Total impaired loans with a specific allowance $ 9,596 $ 10,240 $ 816 $ 16,652 $ 17,102 $ 2,002 Total impaired loans $ 41,149 $ 43,963 $ 816 $ 77,118 $ 80,995 $ 2,002 The following table shows the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans, by segment for the years ended December 31, 2016 , 2015 and 2014 (dollars in thousands): December 31, 2016 December 31, 2015 December 31, 2014 Average Investment Interest Income Recognized Average Investment Interest Income Recognized Average Investment Interest Income Recognized Construction and Land Development $ 15,346 $ 681 $ 36,441 $ 2,265 $ 56,183 $ 2,382 Commercial Real Estate - Owner Occupied 6,290 242 11,409 348 22,719 1,017 Commercial Real Estate - Non-Owner Occupied 4,188 134 6,201 250 29,136 1,292 Multifamily Real Estate — — 3,854 244 4,657 284 Commercial & Industrial 2,800 95 3,404 139 6,426 195 Residential 1-4 Family 12,716 291 14,468 410 18,244 571 Auto 244 5 235 6 7 — HELOC 1,513 19 2,757 54 1,522 35 Consumer and all other 567 8 639 19 2,287 95 Total impaired loans $ 43,664 $ 1,475 $ 79,408 $ 3,735 $ 141,181 $ 5,871 |
Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement | The following table provides a summary, by segment, of TDRs that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and TDRs that have been placed in nonaccrual status, which are considered to be nonperforming, as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 December 31, 2015 No. of Loans Recorded Investment Outstanding Commitment No. of Loans Recorded Investment Outstanding Commitment Performing Construction and Land Development 8 $ 3,793 $ — 6 $ 3,349 $ — Commercial Real Estate - Owner Occupied 7 3,106 — 5 1,530 — Commercial Real Estate - Non-Owner Occupied 2 2,390 — 2 2,390 — Commercial & Industrial 3 533 — 5 261 — Residential 1-4 Family 28 4,145 — 27 3,173 — Consumer and all other — — — 1 77 — Total performing 48 $ 13,967 $ — 46 $ 10,780 $ — Nonperforming Construction and Land Development 2 $ 215 $ — 2 $ 321 $ — Commercial Real Estate - Owner Occupied 2 156 — 1 137 — Commercial & Industrial 1 116 — 1 2 — Residential 1-4 Family 8 948 — 6 1,142 — HELOC — — — 1 319 — Total nonperforming 13 $ 1,435 $ — 11 $ 1,921 $ — Total performing and nonperforming 61 $ 15,402 $ — 57 $ 12,701 $ — |
Schedule of TDR by Class and Modification Type | The following table shows, by segment and modification type, TDRs that occurred during the years ended December 31, 2016 and 2015 (dollars in thousands): 2016 2015 No. of Loans Recorded Investment at Period End No. of Loans Recorded Investment at Period End Modified to interest only, at a market rate Construction and Land Development 2 $ 325 — $ — Commercial Real Estate - Owner Occupied 2 483 — — Commercial & Industrial 1 34 1 19 Residential 1-4 Family 1 158 1 21 Total interest only at market rate of interest 6 $ 1,000 2 $ 40 Term modification, at a market rate Construction and Land Development 2 $ 1,444 — $ — Commercial Real Estate - Owner Occupied 3 1,326 3 282 Commercial & Industrial 1 444 2 162 Residential 1-4 Family 6 980 11 936 Consumer and all other — — 1 77 Total loan term extended at a market rate 12 $ 4,194 17 $ 1,457 Term modification, below market rate Construction and Land Development — $ — 1 $ 400 Commercial Real Estate - Owner Occupied — — 1 866 Residential 1-4 Family 7 1,309 7 1,039 Total loan term extended at a below market rate 7 $ 1,309 9 $ 2,305 Interest rate modification, below market rate Commercial & Industrial 1 $ 116 — $ — Total interest only at below market rate of interest 1 $ 116 — $ — Total 26 $ 6,619 28 $ 3,802 |
Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology | The following table shows the allowance for loan loss activity, balances for ALL, and loan balances based on impairment methodology by segment for the year ended and as of December 31, 2016 . The table below includes the provision for loan losses. As discussed in Note 1 “Summary of Significant Accounting Policies,” the Company enhanced its loan segmentation for purposes of the allowance calculation as well as its disclosures. The impact of this enhancement is reflected in the provision amounts in the table below. In addition, a $425,000 provision was recognized during the year ended December 31, 2016 for unfunded loan commitments for which the reserves are recorded as a component of “Other Liabilities” on the Company’s Consolidated Balance Sheets. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 6,040 $ 505 $ (958 ) $ 4,468 $ 10,055 Commercial Real Estate - Owner Occupied 4,614 152 (809 ) (156 ) 3,801 Commercial Real Estate - Non-Owner Occupied 6,929 80 (1 ) (386 ) 6,622 Multifamily Real Estate 1,606 — — (370 ) 1,236 Commercial & Industrial 3,163 483 (1,920 ) 2,901 4,627 Residential 1-4 Family 5,414 585 (900 ) 1,300 6,399 Auto 1,703 327 (1,052 ) (32 ) 946 HELOC 2,934 459 (1,457 ) (608 ) 1,328 Consumer and all other 1,644 434 (1,458 ) 1,558 2,178 Total $ 34,047 $ 3,025 $ (8,555 ) $ 8,675 $ 37,192 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 15,272 $ 107 $ 732,937 $ 9,948 $ 2,922 $ — $ 751,131 $ 10,055 Commercial Real Estate - Owner Occupied 6,532 4 832,930 3,797 18,343 — 857,805 3,801 Commercial Real Estate - Non-Owner Occupied 4,208 474 1,542,784 6,148 17,303 — 1,564,295 6,622 Multifamily Real Estate — — 332,210 1,236 2,066 — 334,276 1,236 Commercial & Industrial 1,505 14 548,947 4,613 1,074 — 551,526 4,627 Residential 1-4 Family 11,831 200 1,001,516 6,199 16,200 — 1,029,547 6,399 Auto 169 1 261,902 945 — — 262,071 946 HELOC 1,340 15 524,383 1,313 1,161 — 526,884 1,328 Consumer and all other 292 1 429,010 2,177 223 — 429,525 2,178 Total loans held for investment, net $ 41,149 $ 816 $ 6,206,619 $ 36,376 $ 59,292 $ — $ 6,307,060 $ 37,192 The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the year ended and as of December 31, 2015 . In addition, a $ 300,000 provision was recognized during the year ended December 31, 2015 for unfunded loan commitments. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 4,856 $ 720 $ (650 ) $ 1,114 $ 6,040 Commercial Real Estate - Owner Occupied 4,640 143 (481 ) 312 4,614 Commercial Real Estate - Non-Owner Occupied 7,256 239 (3,137 ) 2,571 6,929 Multifamily Real Estate 1,374 200 — 32 1,606 Commercial & Industrial 2,610 958 (2,361 ) 1,956 3,163 Residential 1-4 Family 5,607 554 (1,789 ) 1,042 5,414 Auto 1,297 290 (768 ) 884 1,703 HELOC 2,675 298 (1,100 ) 1,061 2,934 Consumer and all other 2,069 525 (1,249 ) 299 1,644 Total $ 32,384 $ 3,927 $ (11,535 ) $ 9,271 $ 34,047 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 36,417 $ 538 $ 707,317 $ 5,502 $ 5,986 $ — $ 749,720 $ 6,040 Commercial Real Estate - Owner Occupied 11,018 358 821,680 4,256 27,388 — 860,086 4,614 Commercial Real Estate - Non-Owner Occupied 6,235 75 1,250,726 6,854 13,519 — 1,270,480 6,929 Multifamily Real Estate 3,828 — 317,145 1,606 1,555 — 322,528 1,606 Commercial & Industrial 2,663 441 430,889 2,722 1,813 — 435,365 3,163 Residential 1-4 Family 13,150 418 944,160 4,996 21,159 — 978,469 5,414 Auto 199 1 233,862 1,702 — — 234,061 1,703 HELOC 2,478 76 512,457 2,858 1,791 — 516,726 2,934 Consumer and all other 574 95 302,927 1,549 526 — 304,027 1,644 Total loans held for investment, net $ 76,562 $ 2,002 $ 5,521,163 $ 32,045 $ 73,737 $ — $ 5,671,462 $ 34,047 The following table shows the allowance for loan loss activity, balances for allowance for loan losses, and loan balances based on impairment methodology by segment for the year ended and as of December 31, 2014 . Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands): Allowance for loan losses Balance, beginning of the year Recoveries credited to allowance Loans charged off Provision charged to operations Balance, end of period Construction and Land Development $ 4,387 $ 150 $ (1,095 ) $ 1,414 $ 4,856 Commercial Real Estate - Owner Occupied 4,716 247 (643 ) 320 4,640 Commercial Real Estate - Non-Owner Occupied 5,285 41 (282 ) 2,212 7,256 Multifamily Real Estate 1,227 4 (3 ) 146 1,374 Commercial & Industrial 2,021 316 (1,557 ) 1,830 2,610 Residential 1-4 Family 6,272 1,753 (2,856 ) 438 5,607 Auto 1,414 325 (596 ) 154 1,297 HELOC 2,697 113 (976 ) 841 2,675 Consumer and all other 2,116 520 (1,012 ) 445 2,069 Total $ 30,135 $ 3,469 $ (9,020 ) $ 7,800 $ 32,384 Loans individually evaluated for impairment Loans collectively evaluated for impairment Loans acquired with deteriorated credit quality Total Loans ALL Loans ALL Loans ALL Loans ALL Construction and Land Development $ 51,342 $ 266 $ 593,148 $ 4,590 $ 11,890 $ — $ 656,380 $ 4,856 Commercial Real Estate - Owner Occupied 21,673 355 816,360 4,285 31,167 — 869,200 4,640 Commercial Real Estate - Non-Owner Occupied 28,648 2,017 1,129,032 5,239 25,834 — 1,183,514 7,256 Multifamily Real Estate 4,608 — 289,764 1,374 2,994 — 297,366 1,374 Commercial & Industrial 5,813 570 364,843 2,040 3,440 — 374,096 2,610 Residential 1-4 Family 14,905 1,210 941,550 4,397 26,619 — 983,074 5,607 Auto 2 — 207,811 1,297 — — 207,813 1,297 HELOC 1,325 12 520,016 2,663 2,000 — 523,341 2,675 Consumer and all other 2,097 101 247,271 1,968 1,844 — 251,212 2,069 Total loans held for investment, net $ 130,413 $ 4,531 $ 5,109,795 $ 27,853 $ 105,788 $ — $ 5,345,996 $ 32,384 |
Loans Receivables Related Risk Rating | The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2016 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 667,018 $ 69,311 $ 11,857 $ 23 $ 748,209 Commercial Real Estate - Owner Occupied 801,565 32,364 5,533 — 839,462 Commercial Real Estate - Non-Owner Occupied 1,505,153 37,631 4,208 — 1,546,992 Multifamily Real Estate 312,711 19,499 — — 332,210 Commercial & Industrial 539,999 9,391 1,062 — 550,452 Residential 1-4 Family 986,973 18,518 4,813 3,043 1,013,347 Auto 258,188 3,648 135 100 262,071 HELOC 519,928 4,225 969 601 525,723 Consumer and all other 425,520 3,491 40 251 429,302 Total $ 6,017,055 $ 198,078 $ 28,617 $ 4,018 $ 6,247,768 The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2015 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 663,067 $ 52,650 $ 27,980 $ 37 $ 743,734 Commercial Real Estate - Owner Occupied 800,979 20,856 8,931 1,932 832,698 Commercial Real Estate - Non-Owner Occupied 1,228,956 22,341 5,664 — 1,256,961 Multifamily Real Estate 315,128 2,017 3,828 — 320,973 Commercial & Industrial 414,333 16,724 2,396 99 433,552 Residential 1-4 Family 912,839 34,728 8,037 1,706 957,310 Auto 230,670 3,109 194 88 234,061 HELOC 507,514 4,801 1,611 1,009 514,935 Consumer and all other 299,014 3,996 231 260 303,501 Total $ 5,372,500 $ 161,222 $ 58,872 $ 5,131 $ 5,597,725 |
Schedule of Acquired Loan Portfolio and Accretable Yield | The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands): For the year ended December 31, 2016 2015 Balance at beginning of period $ 22,139 $ 28,956 Accretion (5,611 ) (6,084 ) Reclass of nonaccretable difference due to improvement in expected cash flows 5,089 3,886 Other, net (1) (1,878 ) (4,619 ) Balance at end of period $ 19,739 $ 22,139 (1) This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the year. |
Purchased Impaired | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Summary of Aging of the Loan Portfolio by Class | The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2016 (dollars in thousands): 30-89 Days Past Due Greater than 90 Days Current Total Construction and Land Development $ — $ 84 $ 2,838 $ 2,922 Commercial Real Estate - Owner Occupied 271 519 17,553 18,343 Commercial Real Estate - Non-Owner Occupied 409 126 16,768 17,303 Multifamily Real Estate — — 2,066 2,066 Commercial & Industrial 44 56 974 1,074 Residential 1-4 Family 1,298 945 13,957 16,200 HELOC 175 121 865 1,161 Consumer and all other — — 223 223 Total $ 2,197 $ 1,851 $ 55,244 $ 59,292 The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2015 (dollars in thousands): 30-89 Days Past Due Greater than 90 Days Current Total Construction and Land Development $ 369 $ 241 $ 5,376 $ 5,986 Commercial Real Estate - Owner Occupied 1,139 1,412 24,837 27,388 Commercial Real Estate - Non-Owner Occupied 755 202 12,562 13,519 Multifamily Real Estate — — 1,555 1,555 Commercial & Industrial 209 21 1,583 1,813 Residential 1-4 Family 2,143 1,923 17,093 21,159 HELOC 410 458 923 1,791 Consumer and all other — — 526 526 Total $ 5,025 $ 4,257 $ 64,455 $ 73,737 |
Loans Receivables Related Risk Rating | The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2016 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 1,092 $ 1,432 $ 398 $ — $ 2,922 Commercial Real Estate - Owner Occupied 5,520 8,889 3,934 — 18,343 Commercial Real Estate - Non-Owner Occupied 10,927 4,638 1,738 — 17,303 Multifamily Real Estate 343 1,723 — — 2,066 Commercial & Industrial 107 480 487 — 1,074 Residential 1-4 Family 8,557 4,455 2,672 516 16,200 HELOC 857 183 7 114 1,161 Consumer and all other 166 37 20 — 223 Total $ 27,569 $ 21,837 $ 9,256 $ 630 $ 59,292 The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2015 (dollars in thousands): Pass Special Mention Substandard Doubtful Total Construction and Land Development $ 2,059 $ 1,778 $ 1,908 $ 241 $ 5,986 Commercial Real Estate - Owner Occupied 5,260 15,530 6,598 — 27,388 Commercial Real Estate - Non-Owner Occupied 4,442 7,827 1,250 — 13,519 Multifamily Real Estate 356 1,199 — — 1,555 Commercial & Industrial 144 359 1,289 21 1,813 Residential 1-4 Family 9,098 6,380 4,605 1,076 21,159 HELOC 923 410 20 438 1,791 Consumer and all other 57 379 90 — 526 Total $ 22,339 $ 33,862 $ 15,760 $ 1,776 $ 73,737 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Bank Premises and Equipment | The Company’s premises and equipment as of December 31, 2016 and 2015 are as follows (dollars in thousands): 2016 2015 Land $ 29,708 $ 29,839 Land improvements and buildings 97,341 96,943 Leasehold improvements 8,760 8,313 Furniture and equipment 54,188 49,914 Construction in progress 8,827 9,030 Total 198,824 194,039 Less accumulated depreciation and amortization 76,797 68,011 Bank premises and equipment, net $ 122,027 $ 126,028 |
Schedule of Future Minimum Rental Payments Required | Future minimum rental payments required under non-cancelable operating leases for premises that have initial or remaining terms in excess of one year as of December 31, 2016 are as follows for the years ending (dollars in thousands): 2017 $ 6,418 2018 6,037 2019 5,197 2020 4,345 2021 3,959 Thereafter 7,080 Total of future payments $ 33,036 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information Concerning Intangible Assets with Finite Life | Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2016 Amortizable core deposit intangibles $ 68,367 $ 51,987 $ 16,380 Other amortizable intangibles 4,502 280 4,222 December 31, 2015 Amortizable core deposit intangibles $ 76,185 $ 52,875 $ 23,310 |
Estimated Remaining Amortization Expense of Core Deposit Intangibles | As of December 31, 2016 , the estimated remaining amortization expense of intangibles is as follows (dollars in thousands): 2017 $ 6,070 2018 4,625 2019 3,573 2020 2,509 2021 1,481 Thereafter 2,344 Total estimated amortization expense $ 20,602 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | |
Schedule of Deposits by Type | The major types of interest-bearing deposits are as follows for the years ended December 31, (dollars in thousands): 2016 2015 Interest-bearing deposits: NOW accounts $ 1,765,956 $ 1,521,906 Money market accounts 1,435,591 1,312,612 Savings accounts 591,742 572,800 Time deposits of $250,000 and over 189,647 183,520 Other time deposits 1,002,928 1,000,161 Total interest-bearing deposits $ 4,985,864 $ 4,590,999 |
Scheduled Maturities of Time Deposits | As of December 31, 2016 , the scheduled maturities of time deposits are as follows for the years ended December 31, (dollars in thousands): 2017 $ 463,884 2018 381,063 2019 159,011 2020 141,145 2021 47,472 Total scheduled maturities of time deposits $ 1,192,575 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Total short-term borrowings consist of the following as of December 31, 2016 and 2015 (dollars in thousands): 2016 2015 Securities sold under agreements to repurchase $ 59,281 $ 84,977 Other short-term borrowings 517,500 304,000 Total short-term borrowings $ 576,781 $ 388,977 Maximum month-end outstanding balance $ 678,262 $ 445,761 Average outstanding balance during the period 590,074 379,783 Average interest rate during the period 0.49 % 0.25 % Average interest rate at end of period 0.60 % 0.27 % Other short-term borrowings: FHLB $ 517,500 $ 304,000 Other lines of credit — — |
Trust Preferred Capital Notes Qualify for Tier 1 Capital | In connection with two bank acquisitions prior to 2006, the Company issued trust preferred capital notes to fund the cash portion of those acquisitions, collectively totaling $58.5 million . In connection with the acquisition of StellarOne, the Company acquired trust preferred capital notes totaling $32.0 million with a remaining fair value discount of $6.7 million at December 31, 2016 . The trust preferred capital notes currently qualify for Tier 1 capital of the Company for regulatory purposes. Trust Preferred Capital Securities (1) Investment (1) Spread to 3-Month LIBOR Rate Maturity Trust Preferred Capital Note - Statutory Trust I $ 22,500,000 $ 696,000 2.75 % 3.75 % 6/17/2034 Trust Preferred Capital Note - Statutory Trust II 36,000,000 1,114,000 1.40 % 2.40 % 6/15/2036 VFG Limited Liability Trust I Indenture 20,000,000 619,000 2.73 % 3.73 % 3/18/2034 FNB Statutory Trust II Indenture 12,000,000 372,000 3.10 % 4.10 % 6/26/2033 Total $ 90,500,000 $ 2,801,000 (1) The total of the trust preferred capital securities and investments in the respective trusts represents the principal asset of the Company's junior subordinated debt securities with like maturities and like interest rates to the capital securities. The Company's investment in the trusts is reported in "Other Assets" on the Consolidated Balance Sheets. |
Advances from the FHLB | As of December 31, 2016 , the Company had advances from the FHLB consisting of the following (dollars in thousands): Long-term Type Spread to 3-Month LIBOR Interest Rate Maturity Date Advance Amount Adjustable Rate Credit 0.44 % 1.44 % 8/23/2022 $ 55,000 Adjustable Rate Credit 0.45 % 1.45 % 11/23/2022 65,000 Adjustable Rate Credit 0.45 % 1.45 % 11/23/2022 10,000 Adjustable Rate Credit 0.45 % 1.45 % 11/23/2022 10,000 Fixed Rate — 3.62 % 11/28/2017 10,000 Fixed Rate — 3.75 % 7/30/2018 5,000 Fixed Rate — 3.97 % 7/30/2018 5,000 Fixed Rate Hybrid — 0.99 % 10/19/2018 30,000 $ 190,000 As of December 31, 2015 , the Company had advances from the FHLB consisting of the following (dollars in thousands): Long-term Type Spread to 3-Month LIBOR Interest Rate Maturity Date Advance Amount Adjustable Rate Credit 0.44 % 1.05 % 8/23/2022 $ 55,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 65,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 10,000 Adjustable Rate Credit 0.45 % 1.07 % 11/23/2022 10,000 Fixed Rate — 3.62 % 11/28/2017 10,000 Fixed Rate — 3.75 % 7/30/2018 5,000 Fixed Rate — 3.97 % 7/30/2018 5,000 Fixed Rate Hybrid — 2.11 % 10/5/2016 25,000 Fixed Rate Hybrid — 0.91 % 7/25/2016 15,000 $ 200,000 |
Contractual Maturities of Long-Term Debt | As of December 31, 2016 , the contractual maturities of long-term debt are as follows for the years ending (dollars in thousands): Trust Preferred Capital Notes Subordinated Debt FHLB Advances Premium (Discount) Prepayment Penalty Total Long-term Borrowings 2017 $ — $ — $ 10,000 $ (30 ) $ (1,922 ) $ 8,048 2018 — — 40,000 (343 ) (1,970 ) 37,687 2019 — — — (486 ) (2,018 ) (2,504 ) 2020 — — — (501 ) (2,074 ) (2,575 ) 2021 — — — (516 ) (2,119 ) (2,635 ) Thereafter 93,301 150,000 140,000 (6,307 ) (1,707 ) 375,287 Total Long-term borrowings $ 93,301 $ 150,000 $ 190,000 $ (8,183 ) $ (11,810 ) $ 413,308 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Balances of Commitments and Contingencies | The following table presents the balances of commitments as of December 31, (dollars in thousands): 2016 2015 Commitments with off-balance sheet risk: Commitments to extend credit (1) $ 1,924,885 $ 1,557,350 Standby letters of credit 84,212 139,371 Total commitments with off-balance sheet risk $ 2,009,097 $ 1,696,721 (1) Includes unfunded overdraft protection. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Derivative Instruments [Abstract] | |
Summary of the Derivatives | The following table summarizes key elements of the Company’s derivative instruments as of December 31, 2016 and 2015 , segregated by derivatives that are considered accounting hedges and those that are not (dollars in thousands): December 31, 2016 December 31, 2015 Derivative (2) Derivative (2) Notional or Contractual (1) Assets Liabilities Collateral Pledged (3) Notional or Contractual (1) Assets Liabilities Collateral Pledged (3) Derivatives designated as accounting hedges: Interest rate contracts: Cash flow hedges $ 188,500 $ 211 $ 9,619 $ 21,938 $ 263,000 $ 946 $ 10,352 $ 14,449 Fair value hedges 65,920 1,437 296 — 61,150 — 888 — Derivatives not designated as accounting hedges: Loan Swaps Pay fixed-receive floating interest rate swaps 373,355 — 1,005 — 138,969 3,758 — — Pay floating-receive fixed interest rate swaps 373,355 1,005 — 16,033 138,969 — 3,758 5,983 Other contracts: Interest rate lock commitments 48,743 610 — — 50,369 701 — — Best efforts forward delivery commitments 85,400 1,469 — — 84,050 370 — — (1) Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. (2) Balances represent fair value of derivative financial instruments. (3) Collateral pledged is comprised of both cash and securities. |
ACCUMULATED OTHER COMPREHENSI40
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Change in Accumulated Other Comprehensive Income | The change in accumulated other comprehensive income (loss) for the year ended December 31, 2016 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedges Unrealized Gains (Losses) on BOLI Total Balance - December 31, 2015 $ 7,777 $ 4,432 $ (5,957 ) $ — $ 6,252 Other comprehensive income (loss) (8,186 ) — 270 (1,728 ) (9,644 ) Amounts reclassified from accumulated other comprehensive income (133 ) (1,055 ) 508 263 (417 ) Net current period other comprehensive income (loss) (8,319 ) (1,055 ) 778 (1,465 ) (10,061 ) Balance - December 31, 2016 $ (542 ) $ 3,377 $ (5,179 ) $ (1,465 ) $ (3,809 ) The change in accumulated other comprehensive income (loss) for the year ended December 31, 2015 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Unrealized Gain for AFS Securities Transferred to HTM Change in Fair Value of Cash Flow Hedges Total Balance - December 31, 2014 $ 17,439 $ — $ (5,184 ) $ 12,255 Unrealized gain transferred from AFS to HTM (5,251 ) 5,251 — — Other comprehensive income (loss) (3,640 ) — (1,394 ) (5,034 ) Amounts reclassified from accumulated other comprehensive income (771 ) (819 ) 621 (969 ) Net current period other comprehensive income (loss) (4,411 ) (819 ) (773 ) (6,003 ) Balance - December 31, 2015 $ 7,777 $ 4,432 $ (5,957 ) $ 6,252 The change in accumulated other comprehensive income (loss) for the year ended December 31, 2014 is summarized as follows, net of tax (dollars in thousands): Unrealized Gains (Losses) on AFS Securities Change in Fair Value of Cash Flow Hedges Total Balance - December 31, 2013 $ 1,192 $ (3,382 ) $ (2,190 ) Other comprehensive income (loss) 17,089 (2,393 ) 14,696 Amounts reclassified from accumulated other comprehensive income (842 ) 591 (251 ) Net current period other comprehensive income (loss) 16,247 (1,802 ) 14,445 Balance - December 31, 2014 $ 17,439 $ (5,184 ) $ 12,255 |
REGULATORY MATTERS AND CAPITAL
REGULATORY MATTERS AND CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Bank Capital Amount and Ratio | The Company and the Bank’s capital amounts and ratios are also presented in the following table at December 31, 2016 and 2015 (dollars in thousands): Actual Required for Capital Adequacy Purposes Required in Order to Be Well Capitalized Under PCA Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Common equity Tier 1 capital to risk weighted assets: Consolidated $ 699,728 9.72 % $ 324,035 4.50 % NA NA Union Bank & Trust 901,783 12.58 % 322,531 4.50 % 465,878 6.50 % Tier 1 capital to risk weighted assets: Consolidated 790,228 10.97 % 432,047 6.00 % NA NA Union Bank & Trust 901,783 12.58 % 430,042 6.00 % 573,389 8.00 % Total capital to risk weighted assets: Consolidated 976,145 13.56 % 576,062 8.00 % NA NA Union Bank & Trust 939,700 13.11 % 573,390 8.00 % 716,737 10.00 % Tier 1 capital to average adjusted assets: Consolidated 790,228 9.87 % 320,316 4.00 % NA NA Union Bank & Trust 901,783 11.31 % 319,046 4.00 % 398,807 5.00 % As of December 31, 2015 Common equity Tier 1 capital to risk weighted assets: Consolidated $ 691,195 10.55 % $ 294,823 4.50 % NA NA Union Bank & Trust 751,992 11.52 % 293,747 4.50 % 424,301 6.50 % Tier 1 capital to risk weighted assets: Consolidated 781,695 11.93 % 393,141 6.00 % NA NA Union Bank & Trust 751,992 11.52 % 391,663 6.00 % 522,217 8.00 % Total capital to risk weighted assets: Consolidated 816,041 12.46 % 523,943 8.00 % NA NA Union Bank & Trust 786,339 12.05 % 522,051 8.00 % 652,563 10.00 % Tier 1 capital to average adjusted assets: Consolidated 781,695 10.68 % 292,770 4.00 % NA NA Union Bank & Trust 751,992 10.31 % 291,752 4.00 % 364,691 5.00 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and 2015 (dollars in thousands): Fair Value Measurements at December 31, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Securities available for sale: Obligations of states and political subdivisions $ — $ 275,890 $ — $ 275,890 Corporate and other bonds — 121,780 — 121,780 Mortgage-backed securities — 535,286 — 535,286 Other securities — 13,808 — 13,808 Loans held for sale — 36,487 — 36,487 Derivatives: Interest rate swap — 1,005 — 1,005 Cash flow hedges — 211 — 211 Fair value hedge — 1,437 — 1,437 Interest rate lock commitments — — 610 610 Best efforts forward delivery commitments — — 1,469 1,469 LIABILITIES Derivatives: Interest rate swap $ — $ 1,005 $ — $ 1,005 Cash flow hedges — 9,619 — 9,619 Fair value hedges — 296 — 296 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Securities available for sale: Obligations of states and political subdivisions $ — $ 268,079 $ — $ 268,079 Corporate and other bonds — 75,979 — 75,979 Mortgage-backed securities — 548,171 — 548,171 Other securities — 11,063 — 11,063 Loans held for sale — 36,030 — 36,030 Derivatives: Interest rate swap — 3,758 — 3,758 Cash flow hedges — 946 — 946 Interest rate lock commitments — — 701 701 Best efforts forward delivery commitments — — 370 370 LIABILITIES Derivatives: Interest rate swap $ — $ 3,758 $ — $ 3,758 Cash flow hedges — 10,352 — 10,352 Fair value hedges — 888 — 888 |
Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis | The following tables summarize the Company’s financial assets that were measured at fair value on a nonrecurring basis at December 31, 2016 and 2015 (dollars in thousands): Fair Value Measurements at December 31, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Impaired loans $ — $ — $ 4,344 $ 4,344 Other real estate owned — — 10,084 10,084 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 Balance ASSETS Impaired loans $ — $ — $ 2,214 $ 2,214 Other real estate owned — — 15,299 15,299 |
Carrying Values and Estimated Fair Values of the Company's Financial Instruments | The carrying values and estimated fair values of the Company’s financial instruments as of December 31, 2016 and 2015 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2016 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance ASSETS Cash and cash equivalents $ 179,237 $ 179,237 $ — $ — $ 179,237 Securities available for sale 946,764 — 946,764 — 946,764 Held to maturity securities 201,526 — 202,315 — 202,315 Restricted stock 60,782 — 60,782 — 60,782 Loans held for sale 36,487 — 36,487 — 36,487 Net loans 6,269,868 — — 6,265,443 6,265,443 Derivatives: Interest rate swap 1,005 — 1,005 — 1,005 Cash flow hedges 211 — 211 — 211 Fair value hedges 1,437 — 1,437 — 1,437 Interest rate lock commitments 610 — — 610 610 Best efforts forward delivery commitments 1,469 — — 1,469 1,469 Accrued interest receivable 23,448 — 23,448 — 23,448 Bank owned life insurance 179,318 — 179,318 — 179,318 LIABILITIES Deposits $ 6,379,489 $ — $ 6,370,457 $ — $ 6,370,457 Borrowings 990,089 — 970,195 — 970,195 Accrued interest payable 2,230 — 2,230 — 2,230 Derivatives: Interest rate swap 1,005 — 1,005 — 1,005 Cash flow hedges 9,619 — 9,619 — 9,619 Fair value hedges 296 — 296 — 296 Fair Value Measurements at December 31, 2015 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Carrying Value Level 1 Level 2 Level 3 Balance ASSETS Cash and cash equivalents $ 142,660 $ 142,660 $ — $ — $ 142,660 Securities available for sale 903,292 — 903,292 — 903,292 Held to maturity securities 205,374 — 209,437 — 209,437 Restricted stock 51,828 — 51,828 — 51,828 Loans held for sale 36,030 — 36,030 — 36,030 Net loans 5,637,415 — — 5,671,155 5,671,155 Derivatives: Interest rate swap 3,758 — 3,758 — 3,758 Cash flow hedges 946 — 946 — 946 Interest rate lock commitments 701 — — 701 701 Best efforts forward delivery commitments 370 — — 370 370 Accrued interest receivable 20,760 — 20,760 — 20,760 Bank owned life insurance 173,687 — 173,687 — 173,687 LIABILITIES Deposits $ 5,963,936 $ — $ 5,957,484 $ — $ 5,957,484 Borrowings 680,175 — 659,364 — 659,364 Accrued interest payable 1,578 — 1,578 — 1,578 Derivatives: Interest rate swap 3,758 — 3,758 — 3,758 Cash flow hedges 10,352 — 10,352 — 10,352 Fair value hedges 888 — 888 — 888 |
EMPLOYEE BENEFITS AND STOCK B43
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefits and Share-based Compensation [Abstract] | |
Payment Made for Employee Benefit Plans | The following 401(k) match and other discretionary contributions were made to the Company’s employees, in accordance with the plans described above, in 2016 , 2015 , and 2014 (dollars in thousands): 2016 2015 2014 401(k) Plan $ 3,263 $ 3,120 $ 3,715 ESOP 1,425 1,146 3,440 Cash 1,496 1,146 983 Total $ 6,184 $ 5,412 $ 8,138 |
Schedule of Recognized Stock-Based Compensation Expense | For the years ended December 31, 2016 , 2015 , and 2014 , the Company recognized stock-based compensation expense (included in salaries and benefits expense) (dollars in thousands, except per share data) as follows: Year Ended December 31, 2016 2015 2014 Stock-based compensation expense $ 3,270 $ 1,388 $ 979 Reduction of income tax expense 1,104 405 234 Per share compensation cost $ 0.05 $ 0.02 $ 0.02 |
Summary of Stock Option Activity | The following table summarizes the stock option activity during the year ended December 31, 2016 : Stock Options (shares) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding as of December 31, 2015 298,743 $ 16.40 Granted — — Exercised (88,409 ) 16.10 Forfeited — — Expired (22,074 ) 30.12 Outstanding as of December 31, 2016 188,260 14.94 3.67 $ 3,915,988 Exercisable as of December 31, 2016 170,466 15.00 3.53 3,536,264 |
Summary of Nonvested Stock Activity | The following table summarizes the restricted stock activity for the year ended December 31, 2016 : Number of Shares of RSAs Weighted Average Grant-Date Fair Value Balance, December 31, 2015 305,056 $ 22.64 Granted 137,690 23.94 Net settle for taxes (23,123 ) 26.30 Vested (43,618 ) 19.39 Forfeited (4,567 ) 23.05 Balance, December 31, 2016 371,438 23.70 |
Summary of Performance Stock Activity | PSUs are granted to certain employees at no cost to the recipient and are subject to vesting based on achieving certain performance metrics; the grant of PSUs is subject to approval by the Company’s Compensation Committee at its sole discretion. PSUs may be paid in cash or shares of common stock or a combination thereof. Holders of PSUs have no right to vote the shares represented by the units. In 2016 , the PSUs awarded were market based awards with the number of PSUs ultimately earned based on the Company’s total shareholder return (“TSR”) as measured over the performance period. Number of Shares of PSUs Weighted Average Grant- Date Fair Value Balance, December 31, 2015 95,742 $ 18.51 Granted 76,469 15.06 Vested — — Forfeited (29,808 ) 18.23 Balance, December 31, 2016 142,403 16.72 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The fair value of each PSU granted is estimated on the date of grant using the Monte Carlo simulation lattice model that uses the assumptions noted in the following table. 2016 Dividend yield (1) 3.36 % Expected life in years (2) 2.85 Expected volatility (3) 22.16 % Risk-free interest rate (4) 0.83 % (1) Calculated as the ratio of the current dividend paid per the stock price on the date of grant. (2) Represents the remaining performance period as of the grant date (3) Based on the historical volatility for the period commensurate with the expected life of the PSUs. (4) Based upon the zero-coupon U.S. Treasury rate commensurate with the expected life of the PSUs on the grant date. |
Estimated Unamortized Compensation Expense Recognized in Future | The estimated unamortized compensation expense, net of estimated forfeitures, related to stock options, restricted stock, and performance stock issued and outstanding as of December 31, 2016 that will be recognized in future periods is as follows (dollars in thousands): Stock Options Restricted Stock Performance Stock Total 2017 $ 13 $ 2,353 $ 604 $ 2,970 2018 — 1,919 395 2,314 2019 — 1,164 — 1,164 2020 — 100 — 100 Total $ 13 $ 5,536 $ 999 $ 6,548 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets and liabilities consist of the following components as of December 31, 2016 and 2015 (dollars in thousands): 2016 2015 Deferred tax assets: Allowance for loan losses $ 13,017 $ 11,916 Benefit plans 3,898 3,475 Acquisition accounting 11,297 13,888 Stock grants 1,371 1,679 Other real estate owned 3,156 4,589 Securities available for sale 291 105 Prime loan swap 3,147 2,724 Investments in pass through entities 835 1,366 Other 2,408 2,212 Total deferred tax assets $ 39,420 $ 41,954 Deferred tax liabilities: Acquisition accounting $ 11,645 $ 13,282 Premises and equipment 4,843 4,588 Securities available for sale 1,818 6,861 Other 806 2,429 Total deferred tax liabilities 19,112 27,160 Net deferred tax asset $ 20,308 $ 14,794 |
Provision for Income Taxes Charged to Operations | The provision for income taxes charged to operations for the years ended December 31, 2016 , 2015 , and 2014 consists of the following (dollars in thousands): 2016 2015 2014 Current tax expense $ 26,535 $ 24,521 $ 15,481 Deferred tax expense (benefit) 243 (1,212 ) 2,644 Income tax expense $ 26,778 $ 23,309 $ 18,125 |
Schedule of Income Tax Expense, Difference in Income Tax Rate to Pretax Income | The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pre-tax income for the years ended December 31, 2016 , 2015 , and 2014 , due to the following (dollars in thousands): 2016 2015 2014 Computed "expected" tax expense $ 36,489 $ 31,636 $ 24,601 (Decrease) in taxes resulting from: Tax-exempt interest income, net (6,087 ) (5,865 ) (5,181 ) Other, net (3,624 ) (2,462 ) (1,295 ) Income tax expense $ 26,778 $ 23,309 $ 18,125 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Denominators of the Basic and Diluted EPS Computations | The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 2016 , 2015 , and 2014 (in thousands except per share data): Net Income (Numerator) Weighted Average Shares (Denominator) Per Share Amount For the Year Ended December 31, 2016 Basic EPS $ 77,476 43,784 $ 1.77 Effect of dilutive stock awards — 106 — Diluted EPS $ 77,476 43,890 $ 1.77 For the Year Ended December 31, 2015 Basic EPS $ 67,079 45,055 $ 1.49 Effect of dilutive stock awards — 84 — Diluted EPS $ 67,079 45,139 $ 1.49 For the Year Ended December 31, 2014 Basic EPS $ 52,164 46,036 $ 1.13 Effect of dilutive stock awards — 95 — Diluted EPS $ 52,164 46,131 $ 1.13 |
SEGMENT REPORTING DISCLOSURES (
SEGMENT REPORTING DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Information About Reportable Segments and Reconciliation | Information about reportable segments and reconciliation of such information to the consolidated financial statements for years ended December 31, 2016 , 2015 , and 2014 is as follows (dollars in thousands): UNION BANKSHARES CORPORATION AND SUBSIDIARIES SEGMENT FINANCIAL INFORMATION Community Bank Mortgage Eliminations Consolidated Year Ended December 31, 2016 Net interest income $ 263,714 $ 1,436 $ — $ 265,150 Provision for credit losses 8,883 217 — 9,100 Net interest income after provision for credit losses 254,831 1,219 — 256,050 Noninterest income 59,505 12,008 (606 ) 70,907 Noninterest expenses 212,774 10,535 (606 ) 222,703 Income before income taxes 101,562 2,692 — 104,254 Income tax expense 25,846 932 — 26,778 Net income $ 75,716 $ 1,760 $ — $ 77,476 Total assets $ 8,419,625 $ 93,581 $ (86,413 ) $ 8,426,793 Year Ended December 31, 2015 Net interest income $ 250,510 $ 1,324 $ — $ 251,834 Provision for credit losses 9,450 121 — 9,571 Net interest income after provision for credit losses 241,060 1,203 — 242,263 Noninterest income 55,645 10,044 (682 ) 65,007 Noninterest expenses 205,993 11,571 (682 ) 216,882 Income (loss) before income taxes 90,712 (324 ) — 90,388 Income tax expense (benefit) 23,431 (122 ) — 23,309 Net income (loss) $ 67,281 $ (202 ) $ — $ 67,079 Total assets $ 7,690,132 $ 57,900 $ (54,741 ) $ 7,693,291 Year Ended December 31, 2014 Net interest income $ 253,956 $ 1,062 $ — $ 255,018 Provision for credit losses 7,800 — — 7,800 Net interest income after provision for credit losses 246,156 1,062 — 247,218 Noninterest income 51,878 10,091 (682 ) 61,287 Noninterest expenses 222,311 16,587 (682 ) 238,216 Income (loss) before income taxes 75,723 (5,434 ) — 70,289 Income tax expense (benefit) 20,061 (1,936 ) — 18,125 Net income (loss) $ 55,662 $ (3,498 ) $ — $ 52,164 Total assets $ 7,354,058 $ 51,485 $ (46,900 ) $ 7,358,643 |
PARENT COMPANY FINANCIAL INFO47
PARENT COMPANY FINANCIAL INFORMATION (Tables) - Parent Company | 12 Months Ended |
Dec. 31, 2016 | |
Financial Information for the Parent Company - Balance Sheets | Financial information for the Parent Company is as follows: PARENT COMPANY CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2016 and 2015 (Dollars in thousands) 2016 2015 ASSETS Cash $ 10,681 $ 10,386 Premises and equipment, net 11,470 11,875 Other assets 10,864 8,462 Investment in subsidiaries 1,213,484 1,067,611 Total assets $ 1,246,499 $ 1,098,334 LIABILITIES AND STOCKHOLDERS' EQUITY Long-term borrowings 148,000 7,500 Trust preferred capital notes 86,559 86,312 Other liabilities 10,908 9,155 Total liabilities 245,467 102,967 Total stockholders' equity 1,001,032 995,367 Total liabilities and stockholders' equity $ 1,246,499 $ 1,098,334 |
Financial Information for the Parent Company - Statements of Income and Comprehensive Income | PARENT COMPANY CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2016 , 2015 , and 2014 (Dollars in thousands) 2016 2015 2014 Income: Interest and dividend income $ 23 $ 8 $ 5 Dividends received from subsidiaries 51,439 51,496 75,470 Equity in (distributed) undistributed net income from subsidiaries 31,984 20,800 (15,909 ) Other operating income 1,314 1,228 1,393 Total income 84,760 73,532 60,959 Expenses: Interest expense 5,656 4,697 4,581 Occupancy expenses 549 556 573 Furniture and equipment expenses 18 9 20 Other operating expenses 1,061 1,191 3,621 Total expenses 7,284 6,453 8,795 Net income $ 77,476 $ 67,079 $ 52,164 Comprehensive income $ 67,415 $ 61,076 $ 66,609 |
Financial Information for the Parent Company - Statements of Cash Flows | PARENT COMPANY CONDENSED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2016 , 2015 , and 2014 (Dollars in thousands) 2016 2015 2014 Operating activities: Net income $ 77,476 $ 67,079 $ 52,164 Adjustments to reconcile net income to net cash provided by operating activities: Equity in distributed (undistributed) net income of subsidiaries (31,984 ) (20,800 ) 15,909 Depreciation of premises and equipment 438 435 464 Acquisition accounting amortization, net 247 235 224 Issuance of common stock grants for services 533 564 713 Net (increase) decrease in other assets (2,402 ) 902 2,964 Net (decrease) increase in other liabilities 5,533 6,124 (7,286 ) Net cash and cash equivalents provided by operating activities 49,841 54,539 65,152 Investing activities: Net decrease (increase) in premises and equipment (33 ) (35 ) 863 Payments for equity method investment — (355 ) (60 ) Payments for investments in and advances to subsidiaries (125,000 ) — — Repayment of investments in and advances to subsidiaries 540 — — Cash received in acquisitions — — 4,735 Net cash and cash equivalents provided by (used in) investing activities (124,493 ) (390 ) 5,538 Financing activities: Advances (repayments) of short-term borrowings — (8,000 ) 8,000 Repayments of long-term borrowings (7,500 ) (625 ) (625 ) Proceeds from issuance of long-term borrowings 148,000 — — Cash dividends paid (33,672 ) (29,082 ) (25,494 ) Net Issuance (repurchase) of common stock (31,881 ) (15,748 ) (52,971 ) Net cash and cash equivalents provided by (used in) financing activities 74,947 (53,455 ) (71,090 ) Net increase (decrease) in cash and cash equivalents 295 694 (400 ) Cash and cash equivalents at beginning of the period 10,386 9,692 10,092 Cash and cash equivalents at end of the period $ 10,681 $ 10,386 $ 9,692 Supplemental schedule of noncash investing and financing activities Issuance of common stock in exchange for net assets in acquisition $ — $ — $ 549,523 Transactions related to bank acquisition Assets acquired — — 2,957,521 Liabilities assumed — — 2,642,120 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | Dec. 31, 2005acquisition | Dec. 31, 2016USD ($)ATMbranchshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2016USD ($)ATMbranchshares |
Number of bank branches | branch | 114 | 114 | ||
Number of ATMs | ATM | 185 | 185 | ||
Number of business acquisitions | acquisition | 2 | |||
Held for trading securities | $ 0 | $ 0 | ||
Federal Home Loan Bank requires Bank to maintain percentage of stock equal to outstanding borrowings | 4.25% | 4.25% | ||
Percentage of Federal Reserve Bank of Richmond reserve | 6.00% | 6.00% | ||
Number of Days Past Due to Charge Off Real Estate Secured Loans | 180 days | |||
Maximum period for net realizable value | 180 days | |||
Future payments, contractual term | 6 months | |||
Number of quarters collateral is deficient before loss is recognized | 6 months | |||
Goodwill | $ 298,191,000 | $ 293,522,000 | 298,191,000 | |
Impairment charges for goodwill or intangible assets | 0 | |||
Liabilities for post retirement benefits payable to other beneficiaries | 5,900,000 | 4,000,000 | 5,900,000 | |
Affordable housing projects, recognized amortization | 370,000 | 529,000 | ||
Affordable housing projects, tax credits | 882,000 | 854,000 | ||
Affordable housing projects, investment amount | 9,900,000 | 9,900,000 | 9,900,000 | |
Affordable housing projects, liability | $ 7,100,000 | $ 4,900,000 | $ 7,100,000 | |
Stock options granted | shares | 0 | 0 | 0 | |
Accruals for uncertain tax positions | $ 0 | $ 0 | $ 0 | |
Minimum | ||||
Commercial loans on nonaccrual status, period | 90 days | |||
Period of updating independent appraisal | 12 months | |||
Estimated useful life of bank premises | 3 years | |||
Percentage of fair value of the derivative instruments for the hedge to be highly effective | 80.00% | |||
Interest rate lock commitments period | 30 days | |||
Tax Position Benefit Recognition Threshold | 50.00% | |||
Maximum | ||||
Commercial loans on nonaccrual status, period | 180 days | |||
Period past due to charge off consumer loans | 120 days | |||
Period of updating independent appraisal | 24 months | |||
Estimated useful life of bank premises | 50 years | |||
Percentage of fair value of the derivative instruments for the hedge to be highly effective | 125.00% | |||
Interest rate lock commitments period | 120 days | |||
Core Deposits | Minimum | ||||
Intangible assets, amortization period | 4 years | |||
Core Deposits | Maximum | ||||
Intangible assets, amortization period | 14 years |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - USD ($) $ in Thousands | May 31, 2016 | Jan. 01, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Acquisition related cost excluded from supplemental pro forma earnings | $ 0 | $ 0 | $ 20,345 | ||
Cash paid in acquisition | 4,077 | 0 | 0 | ||
Issuance of common stock in regard to acquisition | 453 | 0 | 549,523 | ||
Goodwill | 298,191 | $ 293,522 | |||
StellarOne Bank | |||||
Business Acquisition [Line Items] | |||||
Number of shares equivalent to each share of acquired entity | 0.9739 | ||||
Number of common shares issued | 22,147,874 | ||||
Value of Company common stock issued | $ 549,500 | ||||
Acquisition related cost excluded from supplemental pro forma earnings | $ 20,345 | ||||
Goodwill | $ 234,100 | ||||
ODCM | |||||
Business Acquisition [Line Items] | |||||
Assets under management | $ 300,000 | ||||
Fair value of total consideration transferred | 9,100 | ||||
Cash paid in acquisition | 4,100 | ||||
Issuance of common stock in regard to acquisition | 453 | $ 453 | |||
Goodwill | 4,700 | ||||
Business combination, finite-lived intangibles | $ 4,500 | ||||
Minimum | ODCM | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, amortization period | 5 years | ||||
Maximum | ODCM | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, amortization period | 10 years |
ACQUISITIONS (Summary of Acquis
ACQUISITIONS (Summary of Acquisition-Related Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Salaries and employee benefits | $ 117,103 | $ 104,192 | $ 107,804 |
Professional services | 8,085 | 6,309 | 5,594 |
Total | $ 0 | $ 0 | 20,345 |
StellarOne Bank | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Salaries and employee benefits | 7,875 | ||
Professional services | 3,736 | ||
Other costs of operations | 8,734 | ||
Total | $ 20,345 |
ACQUISITIONS (Schedule of Effec
ACQUISITIONS (Schedule of Effect of Amortization and Accretion Related to Acquisition) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combinations [Abstract] | |||
Loans | $ 5,218 | $ 4,355 | $ 586 |
Core deposit intangibles | (6,930) | (8,445) | (9,795) |
Borrowings | 458 | 424 | 550 |
Time deposits | 0 | 1,843 | 8,914 |
Other amortizable intangibles | (280) | 0 | 0 |
Net impact to income before taxes | $ (1,534) | $ (1,823) | $ 255 |
SECURITIES (Narrative) (Details
SECURITIES (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($) | |
Schedule of Investments [Line Items] | |||||
Available for sale securities that had been in a continuous loss position for more than 12 months, amount | $ 83,152,000 | $ 46,168,000 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1,790,000 | 1,382,000 | |||
Transfer from securities available for sale to securities held to maturity | $ 201,800,000 | 0 | 201,822,000 | $ 0 | |
Held to maturity securities unrealized gains before tax | $ 8,100,000 | 5,200,000 | $ 6,800,000 | ||
Held-to-maturity securities in a continuous loss position for longer than 12 months, fair value | $ 648,000 | ||||
Held-to-maturity securities in a continuous loss position for longer than 12 months, number of securities | security | 1 | ||||
Held to maturity securities in a continuous loss position, more than 12 months, accumulated loss | $ 81,000 | ||||
Federal Home Loan Bank requires Bank to maintain percentage of stock equal to outstanding borrowings | 4.25% | 4.25% | |||
Percentage of Federal Reserve Bank of Richmond reserve | 6.00% | 6.00% | |||
Restricted equity securities consist of Federal Reserve Bank stock | $ 23,800,000 | $ 23,800,000 | |||
Federal Home Loan Bank Stock | 37,000,000 | 28,000,000 | |||
Credit-related OTTI | $ 0 | $ 300,000 | |||
OTTI recovery amount | $ 400,000 | $ 400,000 | |||
Available-for-sale Securities | |||||
Schedule of Investments [Line Items] | |||||
Available for sale securities that had been in a continuous loss position | security | 30 | 20 |
SECURITIES (Amortized Cost, Gro
SECURITIES (Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis, Total | $ 947,597 | $ 891,276 |
Gross Unrealized Gains | 10,480 | 16,661 |
Gross Unrealized (Losses) | (11,313) | (4,645) |
Available for sale securities, Estimated fair value | 946,764 | 903,292 |
Obligations of states and political subdivisions | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis, Total | 274,007 | 257,740 |
Gross Unrealized Gains | 4,962 | 10,479 |
Gross Unrealized (Losses) | (3,079) | (140) |
Available for sale securities, Estimated fair value | 275,890 | 268,079 |
Corporate bonds | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis, Total | 123,674 | 77,628 |
Gross Unrealized Gains | 892 | 55 |
Gross Unrealized (Losses) | (2,786) | (1,704) |
Available for sale securities, Estimated fair value | 121,780 | 75,979 |
Mortgage-backed securities | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis, Total | 536,031 | 544,823 |
Gross Unrealized Gains | 4,626 | 6,127 |
Gross Unrealized (Losses) | (5,371) | (2,779) |
Available for sale securities, Estimated fair value | 535,286 | 548,171 |
Other securities | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale Securities, Amortized Cost Basis, Total | 13,885 | 11,085 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (77) | (22) |
Available for sale securities, Estimated fair value | $ 13,808 | $ 11,063 |
SECURITIES (Schedule of Gross U
SECURITIES (Schedule of Gross Unrealized Losses and Fair Value of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of gross unrealized losses and fair value of investments | ||
Less than 12 months, Fair value | $ 472,297 | $ 331,384 |
Less than 12 Months, Unrealized Losses | (9,523) | (3,263) |
More than 12 Months, Fair value | 83,152 | 46,168 |
More than 12 Months, Unrealized Losses | (1,790) | (1,382) |
Fair value, Total | 555,449 | 377,552 |
Unrealized Losses, Total | (11,313) | (4,645) |
Obligations of states and political subdivisions | ||
Schedule of gross unrealized losses and fair value of investments | ||
Less than 12 months, Fair value | 108,440 | 8,114 |
Less than 12 Months, Unrealized Losses | (3,007) | (70) |
More than 12 Months, Fair value | 588 | 4,950 |
More than 12 Months, Unrealized Losses | (72) | (70) |
Fair value, Total | 109,028 | 13,064 |
Unrealized Losses, Total | (3,079) | (140) |
Mortgage-backed securities | ||
Schedule of gross unrealized losses and fair value of investments | ||
Less than 12 months, Fair value | 316,469 | 287,113 |
Less than 12 Months, Unrealized Losses | (4,979) | (2,442) |
More than 12 Months, Fair value | 42,096 | 21,660 |
More than 12 Months, Unrealized Losses | (392) | (337) |
Fair value, Total | 358,565 | 308,773 |
Unrealized Losses, Total | (5,371) | (2,779) |
Corporate bonds and other securities | ||
Schedule of gross unrealized losses and fair value of investments | ||
Less than 12 months, Fair value | 47,388 | 36,157 |
Less than 12 Months, Unrealized Losses | (1,537) | (751) |
More than 12 Months, Fair value | 40,468 | 19,558 |
More than 12 Months, Unrealized Losses | (1,326) | (975) |
Fair value, Total | 87,856 | 55,715 |
Unrealized Losses, Total | $ (2,863) | $ (1,726) |
SECURITIES (Schedule of Amortiz
SECURITIES (Schedule of Amortized Cost and Estimated Fair Value of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 21,403 | $ 8,380 |
Due in one year or less, Estimated Fair Value | 21,517 | 8,370 |
Due after one year through five years, Amortized Cost | 108,198 | 65,326 |
Due after one year through five years, Estimated Fair Value | 109,778 | 66,996 |
Due after five years through ten years, Amortized Cost | 300,552 | 296,864 |
Due after five years through ten years, Estimated Fair Value | 301,888 | 301,920 |
Due after ten years, Amortized Cost | 517,444 | 520,706 |
Due after ten years, Estimated Fair Value | 513,581 | 526,006 |
Total securities available for sale, Amortized Cost | 947,597 | 891,276 |
Total securities available for sale, Estimated Fair Value | 946,764 | 903,292 |
Held-to-maturity Securities [Abstract] | ||
Due in one year or less, Carrying Value | 4,403 | 1,488 |
Due in one year or less, Estimated Fair Value | 4,440 | 1,491 |
Due after one year through five years, Carrying Value | 28,383 | 4,294 |
Due after one year through five years, Estimated Fair Value | 28,763 | 4,348 |
Due after five years through ten years, Carrying Value | 51,730 | 44,736 |
Due after five years through ten years, Estimated Fair Value | 51,522 | 45,501 |
Due after ten years, Carrying Value | 117,010 | 154,856 |
Due after ten years, Estimated Fair Value | 117,590 | 158,097 |
Held-to-maturity Securities, Total | 201,526 | 205,374 |
Total securities held to maturity, Estimated Fair Value | $ 202,315 | $ 209,437 |
SECURITIES (Schedule of Securit
SECURITIES (Schedule of Securities Pledged to Secure Public Deposits, Repurchase Agreements, and for Other Purposes) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-sale Securities | |||
Schedule of Investments [Line Items] | |||
Total pledged AFS securities, fair value | $ 342,104 | $ 337,301 | |
Available-for-sale Securities | Public deposits | |||
Schedule of Investments [Line Items] | |||
Total pledged AFS securities, fair value | 210,546 | 184,635 | |
Available-for-sale Securities | Repurchase agreements | |||
Schedule of Investments [Line Items] | |||
Total pledged AFS securities, fair value | 108,208 | 126,120 | |
Available-for-sale Securities | Other purposes | |||
Schedule of Investments [Line Items] | |||
Total pledged AFS securities, fair value | [1] | 23,350 | 26,546 |
Held-to-maturity Securities | |||
Schedule of Investments [Line Items] | |||
Total pledged HTM securities, fair value | 197,889 | 207,140 | |
Held-to-maturity Securities | Public deposits | |||
Schedule of Investments [Line Items] | |||
Total pledged HTM securities, fair value | $ 197,889 | $ 207,140 | |
[1] | (1) The "Other purposes" category consists of borrowings, derivatives, and accounts held at the Bank. |
SECURITIES (Schedule of Carryin
SECURITIES (Schedule of Carrying Value, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities, Total | $ 201,526 | $ 205,374 |
Held to maturity securities | 202,315 | 209,437 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities, Total | 201,526 | 205,374 |
Gross Unrealized Gains | 1,617 | 5,748 |
Gross Unrealized Losses | (828) | (1,685) |
Held to maturity securities | $ 202,315 | $ 209,437 |
SECURITIES (Gross Unrealized Lo
SECURITIES (Gross Unrealized Losses and Fair Value of Securities) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
More than 12 months, Fair Value | $ 648,000 | |
More than 12 months, Unrealized Losses | (81,000) | |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, Fair Value | 92,841,000 | $ 7,056,000 |
Less than 12 months, Unrealized Losses | (747,000) | (1,685,000) |
More than 12 months, Fair Value | 648,000 | 0 |
More than 12 months, Unrealized Losses | (81,000) | 0 |
Fair Value, Total | 93,489,000 | 7,056,000 |
Unrealized Losses, Total | $ (828,000) | $ (1,685,000) |
SECURITIES ( Gross Realized Gai
SECURITIES ( Gross Realized Gains and Losses on the Sale of Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains | $ 302 | $ 1,597 | $ 1,757 |
Gross realized losses | (97) | (111) | (62) |
Gains on securities transactions, net | 205 | 1,486 | 1,695 |
Proceeds from sales of securities | $ 69,516 | $ 101,154 | $ 289,389 |
LOANS AND ALLOWANCE FOR LOAN 60
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 16, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit card portfolio sold | $ 26,400,000 | |||
Net income from sale of credit card portfolio | $ 805,000 | |||
Nonaccrual loans | $ 9,973,000 | 11,936,000 | $ 19,300,000 | |
Nonaccrual interest lost | $ 452,000 | 487,000 | 795,000 | |
Period for restructured loan to be considered default | 90 days | |||
Acquired performing loan portfolio | $ 6,307,060,000 | 5,671,462,000 | 5,345,996,000 | |
Acquired Performing Loan Portfolio [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Acquired performing loan portfolio | 1,100,000,000 | 1,400,000,000 | ||
Remaining discount on acquired loans | 16,900,000 | 20,800,000 | ||
Purchased Impaired | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Acquired performing loan portfolio | 59,292,000 | 73,737,000 | $ 105,788,000 | |
Purchased impaired loans (gross) | 73,600,000 | 90,300,000 | ||
Unfunded Loan Commitments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for unfunded commitments | $ 425,000 | $ 300,000 |
LOANS AND ALLOWANCE FOR LOAN 61
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Stated at Face Amount, Net of Unearned Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans and Leases Receivable Disclosure [Abstract] | |||
Loans receivable, deferred fees and costs | $ 1,800 | $ 3,000 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 6,307,060 | 5,671,462 | $ 5,345,996 |
Construction and Land Development | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 751,131 | 749,720 | 656,380 |
Commercial Real Estate - Owner Occupied | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 857,805 | 860,086 | 869,200 |
Commercial Real Estate - Non-Owner Occupied | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,564,295 | 1,270,480 | 1,183,514 |
Multifamily Real Estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 334,276 | 322,528 | 297,366 |
Commercial and Industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 551,526 | 435,365 | 374,096 |
Residential 1-4 Family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 1,029,547 | 978,469 | 983,074 |
Auto | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 262,071 | 234,061 | 207,813 |
HELOC | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | 526,884 | 516,726 | 523,341 |
Consumer and all other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment, net of deferred fees and costs | $ 429,525 | $ 304,027 | $ 251,212 |
LOANS AND ALLOWANCE FOR LOAN 62
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Aging of the Loan Portfolio by Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | $ 3,005 | $ 5,829 | |
Total Loans | 6,307,060 | 5,671,462 | $ 5,345,996 |
Nonaccrual | 9,973 | 11,936 | 19,300 |
Current | 6,209,924 | 5,542,840 | |
30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 20,245 | 27,787 | |
60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 4,621 | 9,333 | |
Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 59,292 | 73,737 | 105,788 |
Current | 55,244 | 64,455 | |
Construction and Land Development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 76 | 128 | |
Total Loans | 751,131 | 749,720 | 656,380 |
Nonaccrual | 2,037 | 2,113 | |
Current | 744,702 | 737,958 | |
Construction and Land Development | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,162 | 3,155 | |
Construction and Land Development | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 232 | 380 | |
Construction and Land Development | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 2,922 | 5,986 | 11,890 |
Current | 2,838 | 5,376 | |
Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 35 | 103 | |
Total Loans | 857,805 | 860,086 | 869,200 |
Nonaccrual | 794 | 3,904 | |
Current | 836,682 | 826,859 | |
Commercial Real Estate - Owner Occupied | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,842 | 1,714 | |
Commercial Real Estate - Owner Occupied | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 109 | 118 | |
Commercial Real Estate - Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 18,343 | 27,388 | 31,167 |
Current | 17,553 | 24,837 | |
Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 0 | 723 | |
Total Loans | 1,564,295 | 1,270,480 | 1,183,514 |
Nonaccrual | 0 | 100 | |
Current | 1,544,623 | 1,255,367 | |
Commercial Real Estate - Non-Owner Occupied | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,369 | 771 | |
Commercial Real Estate - Non-Owner Occupied | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 17,303 | 13,519 | 25,834 |
Current | 16,768 | 12,562 | |
Multifamily Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 0 | 272 | |
Total Loans | 334,276 | 322,528 | 297,366 |
Nonaccrual | 0 | 0 | |
Current | 332,063 | 320,701 | |
Multifamily Real Estate | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 147 | 0 | |
Multifamily Real Estate | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Multifamily Real Estate | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 2,066 | 1,555 | 2,994 |
Current | 2,066 | 1,555 | |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 9 | 124 | |
Total Loans | 551,526 | 435,365 | 374,096 |
Nonaccrual | 124 | 429 | |
Current | 548,702 | 431,916 | |
Commercial and Industrial | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 759 | 1,056 | |
Commercial and Industrial | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 858 | 27 | |
Commercial and Industrial | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,074 | 1,813 | 3,440 |
Current | 974 | 1,583 | |
Residential 1-4 Family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 2,048 | 3,638 | |
Total Loans | 1,029,547 | 978,469 | 983,074 |
Nonaccrual | 5,279 | 3,563 | |
Current | 998,448 | 928,312 | |
Residential 1-4 Family | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 7,038 | 15,023 | |
Residential 1-4 Family | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 534 | 6,774 | |
Residential 1-4 Family | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 16,200 | 21,159 | 26,619 |
Current | 13,957 | 17,093 | |
Auto | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 111 | 60 | |
Total Loans | 262,071 | 234,061 | 207,813 |
Nonaccrual | 169 | 192 | |
Current | 258,904 | 231,264 | |
Auto | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,570 | 2,312 | |
Auto | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 317 | 233 | |
Auto | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 0 | 0 | 0 |
HELOC | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 635 | 762 | |
Total Loans | 526,884 | 516,726 | 523,341 |
Nonaccrual | 1,279 | 1,348 | |
Current | 520,833 | 509,124 | |
HELOC | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,836 | 2,589 | |
HELOC | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,140 | 1,112 | |
HELOC | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 1,161 | 1,791 | 2,000 |
Current | 865 | 923 | |
Consumer and all other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Greater Than 90 Days and Still Accruing | 91 | 19 | |
Total Loans | 429,525 | 304,027 | 251,212 |
Nonaccrual | 291 | 287 | |
Current | 424,967 | 301,339 | |
Consumer and all other | 30 to 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,522 | 1,167 | |
Consumer and all other | 60 to 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,431 | 689 | |
Consumer and all other | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 223 | 526 | $ 1,844 |
Current | $ 223 | $ 526 |
LOANS AND ALLOWANCE FOR LOAN 63
LOANS AND ALLOWANCE FOR LOAN LOSSES (Purchased Impaired Commercial and Consumer Loan Portfolios by Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | $ 6,209,924 | $ 5,542,840 | |
Total Loans | 6,307,060 | 5,671,462 | $ 5,345,996 |
Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 55,244 | 64,455 | |
Total Loans | 59,292 | 73,737 | 105,788 |
Construction and Land Development | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 744,702 | 737,958 | |
Total Loans | 751,131 | 749,720 | 656,380 |
Construction and Land Development | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,838 | 5,376 | |
Total Loans | 2,922 | 5,986 | 11,890 |
Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 836,682 | 826,859 | |
Total Loans | 857,805 | 860,086 | 869,200 |
Commercial Real Estate - Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 17,553 | 24,837 | |
Total Loans | 18,343 | 27,388 | 31,167 |
Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 1,544,623 | 1,255,367 | |
Total Loans | 1,564,295 | 1,270,480 | 1,183,514 |
Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 16,768 | 12,562 | |
Total Loans | 17,303 | 13,519 | 25,834 |
Multifamily Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 332,063 | 320,701 | |
Total Loans | 334,276 | 322,528 | 297,366 |
Multifamily Real Estate | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,066 | 1,555 | |
Total Loans | 2,066 | 1,555 | 2,994 |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 548,702 | 431,916 | |
Total Loans | 551,526 | 435,365 | 374,096 |
Commercial and Industrial | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 974 | 1,583 | |
Total Loans | 1,074 | 1,813 | 3,440 |
Residential 1-4 Family | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 998,448 | 928,312 | |
Total Loans | 1,029,547 | 978,469 | 983,074 |
Residential 1-4 Family | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 13,957 | 17,093 | |
Total Loans | 16,200 | 21,159 | 26,619 |
HELOC | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 520,833 | 509,124 | |
Total Loans | 526,884 | 516,726 | 523,341 |
HELOC | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 865 | 923 | |
Total Loans | 1,161 | 1,791 | 2,000 |
Consumer and all other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 424,967 | 301,339 | |
Total Loans | 429,525 | 304,027 | 251,212 |
Consumer and all other | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 223 | 526 | |
Total Loans | 223 | 526 | $ 1,844 |
30 To 89 Days Past Due | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,197 | 5,025 | |
30 To 89 Days Past Due | Construction and Land Development | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 369 | |
30 To 89 Days Past Due | Commercial Real Estate - Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 271 | 1,139 | |
30 To 89 Days Past Due | Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 409 | 755 | |
30 To 89 Days Past Due | Multifamily Real Estate | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
30 To 89 Days Past Due | Commercial and Industrial | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 44 | 209 | |
30 To 89 Days Past Due | Residential 1-4 Family | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,298 | 2,143 | |
30 To 89 Days Past Due | HELOC | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 175 | 410 | |
30 To 89 Days Past Due | Consumer and all other | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Greater Than 90 Days and still Accruing | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,851 | 4,257 | |
Greater Than 90 Days and still Accruing | Construction and Land Development | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 84 | 241 | |
Greater Than 90 Days and still Accruing | Commercial Real Estate - Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 519 | 1,412 | |
Greater Than 90 Days and still Accruing | Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 126 | 202 | |
Greater Than 90 Days and still Accruing | Multifamily Real Estate | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Greater Than 90 Days and still Accruing | Commercial and Industrial | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 56 | 21 | |
Greater Than 90 Days and still Accruing | Residential 1-4 Family | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 945 | 1,923 | |
Greater Than 90 Days and still Accruing | HELOC | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 121 | 458 | |
Greater Than 90 Days and still Accruing | Consumer and all other | Purchased Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 64
LOANS AND ALLOWANCE FOR LOAN LOSSES (Impaired Loans Individually Evaluated for Impairment by Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Recorded Investment | |||
Loans without a specific allowance | $ 31,553 | $ 60,466 | |
Loans with a specific allowance | 9,596 | 16,652 | |
Total impaired loans | 41,149 | 77,118 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 33,723 | 63,893 | |
Loans with a specific allowance | 10,240 | 17,102 | |
Total impaired loans | 43,963 | 80,995 | |
Related Allowance | 816 | 2,002 | |
Average Investment | 43,664 | 79,408 | $ 141,181 |
Interest Income Recognized | 1,475 | 3,735 | 5,871 |
Construction and Land Development | |||
Recorded Investment | |||
Loans without a specific allowance | 13,877 | 33,250 | |
Loans with a specific allowance | 1,395 | 3,167 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 14,353 | 33,731 | |
Loans with a specific allowance | 1,404 | 3,218 | |
Related Allowance | 107 | 538 | |
Average Investment | 15,346 | 36,441 | 56,183 |
Interest Income Recognized | 681 | 2,265 | 2,382 |
Commercial Real Estate - Owner Occupied | |||
Recorded Investment | |||
Loans without a specific allowance | 5,886 | 7,781 | |
Loans with a specific allowance | 646 | 3,237 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 6,042 | 8,983 | |
Loans with a specific allowance | 646 | 3,239 | |
Related Allowance | 4 | 358 | |
Average Investment | 6,290 | 11,409 | 22,719 |
Interest Income Recognized | 242 | 348 | 1,017 |
Commercial Real Estate - Non-Owner Occupied | |||
Recorded Investment | |||
Loans without a specific allowance | 1,399 | 5,328 | |
Loans with a specific allowance | 2,809 | 907 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 1,399 | 5,325 | |
Loans with a specific allowance | 2,809 | 907 | |
Related Allowance | 474 | 75 | |
Average Investment | 4,188 | 6,201 | 29,136 |
Interest Income Recognized | 134 | 250 | 1,292 |
Multifamily Real Estate | |||
Recorded Investment | |||
Loans without a specific allowance | 0 | 3,828 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 0 | 3,828 | |
Average Investment | 0 | 3,854 | 4,657 |
Interest Income Recognized | 0 | 244 | 284 |
Commercial and Industrial | |||
Recorded Investment | |||
Loans without a specific allowance | 648 | 711 | |
Loans with a specific allowance | 857 | 1,952 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 890 | 951 | |
Loans with a specific allowance | 880 | 1,949 | |
Related Allowance | 14 | 441 | |
Average Investment | 2,800 | 3,404 | 6,426 |
Interest Income Recognized | 95 | 139 | 195 |
Residential 1-4 Family | |||
Recorded Investment | |||
Loans without a specific allowance | 8,496 | 7,564 | |
Loans with a specific allowance | 3,335 | 6,065 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 9,518 | 8,829 | |
Loans with a specific allowance | 3,535 | 6,153 | |
Related Allowance | 200 | 418 | |
Average Investment | 12,716 | 14,468 | 18,244 |
Interest Income Recognized | 291 | 410 | 571 |
Auto | |||
Recorded Investment | |||
Loans without a specific allowance | 0 | 7 | |
Loans with a specific allowance | 169 | 192 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 0 | 7 | |
Loans with a specific allowance | 235 | 199 | |
Related Allowance | 1 | 1 | |
Average Investment | 244 | 235 | 7 |
Interest Income Recognized | 5 | 6 | 0 |
HELOC | |||
Recorded Investment | |||
Loans without a specific allowance | 1,017 | 1,786 | |
Loans with a specific allowance | 323 | 769 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 1,094 | 2,028 | |
Loans with a specific allowance | 433 | 925 | |
Related Allowance | 15 | 76 | |
Average Investment | 1,513 | 2,757 | 1,522 |
Interest Income Recognized | 19 | 54 | 35 |
Consumer and all other | |||
Recorded Investment | |||
Loans without a specific allowance | 230 | 211 | |
Loans with a specific allowance | 62 | 363 | |
Unpaid Principal Balance | |||
Loans without a specific allowance | 427 | 211 | |
Loans with a specific allowance | 298 | 512 | |
Related Allowance | 1 | 95 | |
Average Investment | 567 | 639 | 2,287 |
Interest Income Recognized | $ 8 | $ 19 | $ 95 |
LOANS AND ALLOWANCE FOR LOAN 65
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement) (Details) $ in Thousands | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan |
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 61 | 57 |
Recorded Investment | $ 15,402 | $ 12,701 |
Outstanding Commitment | $ 0 | $ 0 |
Performing Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 48 | 46 |
Recorded Investment | $ 13,967 | $ 10,780 |
Outstanding Commitment | $ 0 | $ 0 |
Nonperforming Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 13 | 11 |
Recorded Investment | $ 1,435 | $ 1,921 |
Outstanding Commitment | $ 0 | $ 0 |
Construction and Land Development | Performing Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 8 | 6 |
Recorded Investment | $ 3,793 | $ 3,349 |
Outstanding Commitment | $ 0 | $ 0 |
Construction and Land Development | Nonperforming Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 2 |
Recorded Investment | $ 215 | $ 321 |
Outstanding Commitment | $ 0 | $ 0 |
Commercial Real Estate - Owner Occupied | Performing Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 7 | 5 |
Recorded Investment | $ 3,106 | $ 1,530 |
Outstanding Commitment | $ 0 | $ 0 |
Commercial Real Estate - Owner Occupied | Nonperforming Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 1 |
Recorded Investment | $ 156 | $ 137 |
Outstanding Commitment | $ 0 | $ 0 |
Commercial Real Estate - Non-Owner Occupied | Performing Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 2 |
Recorded Investment | $ 2,390 | $ 2,390 |
Outstanding Commitment | $ 0 | $ 0 |
Commercial and Industrial | Performing Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 3 | 5 |
Recorded Investment | $ 533 | $ 261 |
Outstanding Commitment | $ 0 | $ 0 |
Commercial and Industrial | Nonperforming Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 1 |
Recorded Investment | $ 116 | $ 2 |
Outstanding Commitment | $ 0 | $ 0 |
Residential 1-4 Family | Performing Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 28 | 27 |
Recorded Investment | $ 4,145 | $ 3,173 |
Outstanding Commitment | $ 0 | $ 0 |
Residential 1-4 Family | Nonperforming Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 8 | 6 |
Recorded Investment | $ 948 | $ 1,142 |
Outstanding Commitment | $ 0 | $ 0 |
Consumer and all other | Performing Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 1 |
Recorded Investment | $ 0 | $ 77 |
Outstanding Commitment | $ 0 | $ 0 |
HELOC | Nonperforming Financing Receivable | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 1 |
Recorded Investment | $ 0 | $ 319 |
Outstanding Commitment | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 66
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of TDR by Class and Modification Type) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 26 | 28 |
Recorded Investment at Period End | $ | $ 6,619 | $ 3,802 |
Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 12 | 17 |
Recorded Investment at Period End | $ | $ 4,194 | $ 1,457 |
Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 7 | 9 |
Recorded Investment at Period End | $ | $ 1,309 | $ 2,305 |
Interest rate modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 0 |
Recorded Investment at Period End | $ | $ 116 | $ 0 |
Modified to interest only, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 6 | 2 |
Recorded Investment at Period End | $ | $ 1,000 | $ 40 |
Construction and Land Development | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 0 |
Recorded Investment at Period End | $ | $ 1,444 | $ 0 |
Construction and Land Development | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 1 |
Recorded Investment at Period End | $ | $ 0 | $ 400 |
Construction and Land Development | Modified to interest only, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 0 |
Recorded Investment at Period End | $ | $ 325 | $ 0 |
Commercial Real Estate - Owner Occupied | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 3 | 3 |
Recorded Investment at Period End | $ | $ 1,326 | $ 282 |
Commercial Real Estate - Owner Occupied | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 1 |
Recorded Investment at Period End | $ | $ 0 | $ 866 |
Commercial Real Estate - Owner Occupied | Modified to interest only, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | 0 |
Recorded Investment at Period End | $ | $ 483 | $ 0 |
Commercial and Industrial | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 2 |
Recorded Investment at Period End | $ | $ 444 | $ 162 |
Commercial and Industrial | Interest rate modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 0 |
Recorded Investment at Period End | $ | $ 116 | $ 0 |
Commercial and Industrial | Modified to interest only, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 1 |
Recorded Investment at Period End | $ | $ 34 | $ 19 |
Residential 1-4 Family | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 6 | 11 |
Recorded Investment at Period End | $ | $ 980 | $ 936 |
Residential 1-4 Family | Term modification, below market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 7 | 7 |
Recorded Investment at Period End | $ | $ 1,309 | $ 1,039 |
Residential 1-4 Family | Modified to interest only, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 1 |
Recorded Investment at Period End | $ | $ 158 | $ 21 |
Consumer and all other | Term modification, at a market rate | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 0 | 1 |
Recorded Investment at Period End | $ | $ 0 | $ 77 |
LOANS AND ALLOWANCE FOR LOAN 67
LOANS AND ALLOWANCE FOR LOAN LOSSES (Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for loan losses: | ||||||
Balance, beginning of the year | $ 34,047 | $ 32,384 | $ 30,135 | |||
Recoveries credited to allowance | 3,025 | 3,927 | 3,469 | |||
Loans charged off | (8,555) | (11,535) | (9,020) | |||
Provision charged to operations | 8,675 | 9,271 | 7,800 | |||
Balance, end of period | 37,192 | 34,047 | 32,384 | |||
Loans: | ||||||
Loans individually evaluated for impairment | $ 41,149 | $ 76,562 | $ 130,413 | |||
ALL individually evaluated for impairment | 816 | 2,002 | 4,531 | |||
Loans collectively evaluated for impairment | 6,206,619 | 5,521,163 | 5,109,795 | |||
ALL collectively evaluated for impairment | 36,376 | 32,045 | 27,853 | |||
Total Loans | 6,307,060 | 5,671,462 | 5,345,996 | |||
Total ALL | 34,047 | 32,384 | 30,135 | 37,192 | 34,047 | 32,384 |
Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 59,292 | 73,737 | 105,788 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
Construction and Land Development | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 6,040 | 4,856 | 4,387 | |||
Recoveries credited to allowance | 505 | 720 | 150 | |||
Loans charged off | (958) | (650) | (1,095) | |||
Provision charged to operations | 4,468 | 1,114 | 1,414 | |||
Balance, end of period | 10,055 | 6,040 | 4,856 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 15,272 | 36,417 | 51,342 | |||
ALL individually evaluated for impairment | 107 | 538 | 266 | |||
Loans collectively evaluated for impairment | 732,937 | 707,317 | 593,148 | |||
ALL collectively evaluated for impairment | 9,948 | 5,502 | 4,590 | |||
Total Loans | 751,131 | 749,720 | 656,380 | |||
Total ALL | 6,040 | 4,856 | 4,387 | 10,055 | 6,040 | 4,856 |
Construction and Land Development | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 2,922 | 5,986 | 11,890 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
Commercial Real Estate - Owner Occupied | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 4,614 | 4,640 | 4,716 | |||
Recoveries credited to allowance | 152 | 143 | 247 | |||
Loans charged off | (809) | (481) | (643) | |||
Provision charged to operations | (156) | 312 | 320 | |||
Balance, end of period | 3,801 | 4,614 | 4,640 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 6,532 | 11,018 | 21,673 | |||
ALL individually evaluated for impairment | 4 | 358 | 355 | |||
Loans collectively evaluated for impairment | 832,930 | 821,680 | 816,360 | |||
ALL collectively evaluated for impairment | 3,797 | 4,256 | 4,285 | |||
Total Loans | 857,805 | 860,086 | 869,200 | |||
Total ALL | 4,614 | 4,640 | 4,716 | 3,801 | 4,614 | 4,640 |
Commercial Real Estate - Owner Occupied | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 18,343 | 27,388 | 31,167 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
Commercial Real Estate - Non-Owner Occupied | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 6,929 | 7,256 | 5,285 | |||
Recoveries credited to allowance | 80 | 239 | 41 | |||
Loans charged off | (1) | (3,137) | (282) | |||
Provision charged to operations | (386) | 2,571 | 2,212 | |||
Balance, end of period | 6,622 | 6,929 | 7,256 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 4,208 | 6,235 | 28,648 | |||
ALL individually evaluated for impairment | 474 | 75 | 2,017 | |||
Loans collectively evaluated for impairment | 1,542,784 | 1,250,726 | 1,129,032 | |||
ALL collectively evaluated for impairment | 6,148 | 6,854 | 5,239 | |||
Total Loans | 1,564,295 | 1,270,480 | 1,183,514 | |||
Total ALL | 6,929 | 7,256 | 5,285 | 6,622 | 6,929 | 7,256 |
Commercial Real Estate - Non-Owner Occupied | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 17,303 | 13,519 | 25,834 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
Multifamily Real Estate | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 1,606 | 1,374 | 1,227 | |||
Recoveries credited to allowance | 0 | 200 | 4 | |||
Loans charged off | 0 | 0 | (3) | |||
Provision charged to operations | (370) | 32 | 146 | |||
Balance, end of period | 1,236 | 1,606 | 1,374 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 0 | 3,828 | 4,608 | |||
ALL individually evaluated for impairment | 0 | 0 | 0 | |||
Loans collectively evaluated for impairment | 332,210 | 317,145 | 289,764 | |||
ALL collectively evaluated for impairment | 1,236 | 1,606 | 1,374 | |||
Total Loans | 334,276 | 322,528 | 297,366 | |||
Total ALL | 1,606 | 1,374 | 1,227 | 1,236 | 1,606 | 1,374 |
Multifamily Real Estate | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 2,066 | 1,555 | 2,994 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
Commercial and Industrial | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 3,163 | 2,610 | 2,021 | |||
Recoveries credited to allowance | 483 | 958 | 316 | |||
Loans charged off | (1,920) | (2,361) | (1,557) | |||
Provision charged to operations | 2,901 | 1,956 | 1,830 | |||
Balance, end of period | 4,627 | 3,163 | 2,610 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 1,505 | 2,663 | 5,813 | |||
ALL individually evaluated for impairment | 14 | 441 | 570 | |||
Loans collectively evaluated for impairment | 548,947 | 430,889 | 364,843 | |||
ALL collectively evaluated for impairment | 4,613 | 2,722 | 2,040 | |||
Total Loans | 551,526 | 435,365 | 374,096 | |||
Total ALL | 3,163 | 2,610 | 2,021 | 4,627 | 3,163 | 2,610 |
Commercial and Industrial | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 1,074 | 1,813 | 3,440 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
Residential 1-4 Family | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 5,414 | 5,607 | 6,272 | |||
Recoveries credited to allowance | 585 | 554 | 1,753 | |||
Loans charged off | (900) | (1,789) | (2,856) | |||
Provision charged to operations | 1,300 | 1,042 | 438 | |||
Balance, end of period | 6,399 | 5,414 | 5,607 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 11,831 | 13,150 | 14,905 | |||
ALL individually evaluated for impairment | 200 | 418 | 1,210 | |||
Loans collectively evaluated for impairment | 1,001,516 | 944,160 | 941,550 | |||
ALL collectively evaluated for impairment | 6,199 | 4,996 | 4,397 | |||
Total Loans | 1,029,547 | 978,469 | 983,074 | |||
Total ALL | 5,414 | 5,607 | 6,272 | 6,399 | 5,414 | 5,607 |
Residential 1-4 Family | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 16,200 | 21,159 | 26,619 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
Auto | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 1,703 | 1,297 | 1,414 | |||
Recoveries credited to allowance | 327 | 290 | 325 | |||
Loans charged off | (1,052) | (768) | (596) | |||
Provision charged to operations | (32) | 884 | 154 | |||
Balance, end of period | 946 | 1,703 | 1,297 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 169 | 199 | 2 | |||
ALL individually evaluated for impairment | 1 | 1 | 0 | |||
Loans collectively evaluated for impairment | 261,902 | 233,862 | 207,811 | |||
ALL collectively evaluated for impairment | 945 | 1,702 | 1,297 | |||
Total Loans | 262,071 | 234,061 | 207,813 | |||
Total ALL | 1,703 | 1,297 | 1,414 | 946 | 1,703 | 1,297 |
Auto | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 0 | 0 | 0 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
HELOC | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 2,934 | 2,675 | 2,697 | |||
Recoveries credited to allowance | 459 | 298 | 113 | |||
Loans charged off | (1,457) | (1,100) | (976) | |||
Provision charged to operations | (608) | 1,061 | 841 | |||
Balance, end of period | 1,328 | 2,934 | 2,675 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 1,340 | 2,478 | 1,325 | |||
ALL individually evaluated for impairment | 15 | 76 | 12 | |||
Loans collectively evaluated for impairment | 524,383 | 512,457 | 520,016 | |||
ALL collectively evaluated for impairment | 1,313 | 2,858 | 2,663 | |||
Total Loans | 526,884 | 516,726 | 523,341 | |||
Total ALL | 2,934 | 2,675 | 2,697 | 1,328 | 2,934 | 2,675 |
HELOC | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 1,161 | 1,791 | 2,000 | |||
Total ALL | 0 | 0 | 0 | 0 | 0 | 0 |
Consumer and all other | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 1,644 | 2,069 | 2,116 | |||
Recoveries credited to allowance | 434 | 525 | 520 | |||
Loans charged off | (1,458) | (1,249) | (1,012) | |||
Provision charged to operations | 1,558 | 299 | 445 | |||
Balance, end of period | 2,178 | 1,644 | 2,069 | |||
Loans: | ||||||
Loans individually evaluated for impairment | 292 | 574 | 2,097 | |||
ALL individually evaluated for impairment | 1 | 95 | 101 | |||
Loans collectively evaluated for impairment | 429,010 | 302,927 | 247,271 | |||
ALL collectively evaluated for impairment | 2,177 | 1,549 | 1,968 | |||
Total Loans | 429,525 | 304,027 | 251,212 | |||
Total ALL | 1,644 | 2,069 | 2,116 | 2,178 | 1,644 | 2,069 |
Consumer and all other | Purchased Impaired | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of the year | 0 | 0 | ||||
Balance, end of period | 0 | 0 | 0 | |||
Loans: | ||||||
Total Loans | 223 | 526 | 1,844 | |||
Total ALL | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 68
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Excluding Purchased Impaired Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 6,307,060 | $ 5,671,462 | $ 5,345,996 |
Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 751,131 | 749,720 | 656,380 |
Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 857,805 | 860,086 | 869,200 |
Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,564,295 | 1,270,480 | 1,183,514 |
Multifamily Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 334,276 | 322,528 | 297,366 |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 551,526 | 435,365 | 374,096 |
Residential 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,029,547 | 978,469 | 983,074 |
Auto | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 262,071 | 234,061 | 207,813 |
HELOC | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 526,884 | 516,726 | 523,341 |
Consumer and all other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 429,525 | 304,027 | $ 251,212 |
Excluding Purchased Impaired | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 6,247,768 | 5,597,725 | |
Excluding Purchased Impaired | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 6,017,055 | 5,372,500 | |
Excluding Purchased Impaired | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 198,078 | 161,222 | |
Excluding Purchased Impaired | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 28,617 | 58,872 | |
Excluding Purchased Impaired | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 4,018 | 5,131 | |
Excluding Purchased Impaired | Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 748,209 | 743,734 | |
Excluding Purchased Impaired | Construction and Land Development | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 667,018 | 663,067 | |
Excluding Purchased Impaired | Construction and Land Development | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 69,311 | 52,650 | |
Excluding Purchased Impaired | Construction and Land Development | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 11,857 | 27,980 | |
Excluding Purchased Impaired | Construction and Land Development | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 23 | 37 | |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 839,462 | 832,698 | |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 801,565 | 800,979 | |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 32,364 | 20,856 | |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 5,533 | 8,931 | |
Excluding Purchased Impaired | Commercial Real Estate - Owner Occupied | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 1,932 | |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,546,992 | 1,256,961 | |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,505,153 | 1,228,956 | |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 37,631 | 22,341 | |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 4,208 | 5,664 | |
Excluding Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Excluding Purchased Impaired | Multifamily Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 332,210 | 320,973 | |
Excluding Purchased Impaired | Multifamily Real Estate | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 312,711 | 315,128 | |
Excluding Purchased Impaired | Multifamily Real Estate | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 19,499 | 2,017 | |
Excluding Purchased Impaired | Multifamily Real Estate | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 3,828 | |
Excluding Purchased Impaired | Multifamily Real Estate | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Excluding Purchased Impaired | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 550,452 | 433,552 | |
Excluding Purchased Impaired | Commercial and Industrial | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 539,999 | 414,333 | |
Excluding Purchased Impaired | Commercial and Industrial | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 9,391 | 16,724 | |
Excluding Purchased Impaired | Commercial and Industrial | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,062 | 2,396 | |
Excluding Purchased Impaired | Commercial and Industrial | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 99 | |
Excluding Purchased Impaired | Residential 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,013,347 | 957,310 | |
Excluding Purchased Impaired | Residential 1-4 Family | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 986,973 | 912,839 | |
Excluding Purchased Impaired | Residential 1-4 Family | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 18,518 | 34,728 | |
Excluding Purchased Impaired | Residential 1-4 Family | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 4,813 | 8,037 | |
Excluding Purchased Impaired | Residential 1-4 Family | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,043 | 1,706 | |
Excluding Purchased Impaired | Auto | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 262,071 | 234,061 | |
Excluding Purchased Impaired | Auto | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 258,188 | 230,670 | |
Excluding Purchased Impaired | Auto | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,648 | 3,109 | |
Excluding Purchased Impaired | Auto | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 135 | 194 | |
Excluding Purchased Impaired | Auto | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 100 | 88 | |
Excluding Purchased Impaired | HELOC | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 525,723 | 514,935 | |
Excluding Purchased Impaired | HELOC | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 519,928 | 507,514 | |
Excluding Purchased Impaired | HELOC | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 4,225 | 4,801 | |
Excluding Purchased Impaired | HELOC | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 969 | 1,611 | |
Excluding Purchased Impaired | HELOC | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 601 | 1,009 | |
Excluding Purchased Impaired | Consumer and all other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 429,302 | 303,501 | |
Excluding Purchased Impaired | Consumer and all other | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 425,520 | 299,014 | |
Excluding Purchased Impaired | Consumer and all other | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,491 | 3,996 | |
Excluding Purchased Impaired | Consumer and all other | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 40 | 231 | |
Excluding Purchased Impaired | Consumer and all other | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 251 | $ 260 |
LOANS AND ALLOWANCE FOR LOAN 69
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loans Receivables Related Risk Rating Including Purchased Impaired Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 6,307,060 | $ 5,671,462 | $ 5,345,996 |
Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 751,131 | 749,720 | 656,380 |
Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 857,805 | 860,086 | 869,200 |
Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,564,295 | 1,270,480 | 1,183,514 |
Multifamily Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 334,276 | 322,528 | 297,366 |
Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 551,526 | 435,365 | 374,096 |
Residential 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,029,547 | 978,469 | 983,074 |
Auto | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 262,071 | 234,061 | 207,813 |
HELOC | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 526,884 | 516,726 | 523,341 |
Consumer and all other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 429,525 | 304,027 | 251,212 |
Purchased Impaired | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 59,292 | 73,737 | 105,788 |
Purchased Impaired | Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2,922 | 5,986 | 11,890 |
Purchased Impaired | Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 18,343 | 27,388 | 31,167 |
Purchased Impaired | Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 17,303 | 13,519 | 25,834 |
Purchased Impaired | Multifamily Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2,066 | 1,555 | 2,994 |
Purchased Impaired | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,074 | 1,813 | 3,440 |
Purchased Impaired | Residential 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 16,200 | 21,159 | 26,619 |
Purchased Impaired | Auto | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | 0 |
Purchased Impaired | HELOC | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,161 | 1,791 | 2,000 |
Purchased Impaired | Consumer and all other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 223 | 526 | $ 1,844 |
Purchased Impaired | Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 27,569 | 22,339 | |
Purchased Impaired | Pass | Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,092 | 2,059 | |
Purchased Impaired | Pass | Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 5,520 | 5,260 | |
Purchased Impaired | Pass | Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 10,927 | 4,442 | |
Purchased Impaired | Pass | Multifamily Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 343 | 356 | |
Purchased Impaired | Pass | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 107 | 144 | |
Purchased Impaired | Pass | Residential 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 8,557 | 9,098 | |
Purchased Impaired | Pass | HELOC | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 857 | 923 | |
Purchased Impaired | Pass | Consumer and all other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 166 | 57 | |
Purchased Impaired | Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 21,837 | 33,862 | |
Purchased Impaired | Special Mention | Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,432 | 1,778 | |
Purchased Impaired | Special Mention | Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 8,889 | 15,530 | |
Purchased Impaired | Special Mention | Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 4,638 | 7,827 | |
Purchased Impaired | Special Mention | Multifamily Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,723 | 1,199 | |
Purchased Impaired | Special Mention | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 480 | 359 | |
Purchased Impaired | Special Mention | Residential 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 4,455 | 6,380 | |
Purchased Impaired | Special Mention | HELOC | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 183 | 410 | |
Purchased Impaired | Special Mention | Consumer and all other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 37 | 379 | |
Purchased Impaired | Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 9,256 | 15,760 | |
Purchased Impaired | Substandard | Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 398 | 1,908 | |
Purchased Impaired | Substandard | Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,934 | 6,598 | |
Purchased Impaired | Substandard | Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,738 | 1,250 | |
Purchased Impaired | Substandard | Multifamily Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Purchased Impaired | Substandard | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 487 | 1,289 | |
Purchased Impaired | Substandard | Residential 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2,672 | 4,605 | |
Purchased Impaired | Substandard | HELOC | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 7 | 20 | |
Purchased Impaired | Substandard | Consumer and all other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 20 | 90 | |
Purchased Impaired | Doubtful | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 630 | 1,776 | |
Purchased Impaired | Doubtful | Construction and Land Development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 241 | |
Purchased Impaired | Doubtful | Commercial Real Estate - Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Purchased Impaired | Doubtful | Commercial Real Estate - Non-Owner Occupied | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Purchased Impaired | Doubtful | Multifamily Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Purchased Impaired | Doubtful | Commercial and Industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 21 | |
Purchased Impaired | Doubtful | Residential 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 516 | 1,076 | |
Purchased Impaired | Doubtful | HELOC | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 114 | 438 | |
Purchased Impaired | Doubtful | Consumer and all other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 70
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Acquired Loan Portfolio and Accretable Yield) (Details) - Purchased Impaired - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accretable Yield | ||
Balance at beginning of period | $ 22,139 | $ 28,956 |
Accretion | (5,611) | (6,084) |
Reclass of nonaccretable difference due to improvement in expected cash flows | 5,089 | 3,886 |
Other, net | (1,878) | (4,619) |
Balance at end of period | $ 19,739 | $ 22,139 |
PREMISES AND EQUIPMENT (Narrati
PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 10,215 | $ 10,776 | $ 10,742 |
Renewable lease period, maximum | 20 years | ||
Rental expense | $ 7,100 | $ 7,800 | $ 8,100 |
PREMISES AND EQUIPMENT (Summary
PREMISES AND EQUIPMENT (Summary of Bank Premises and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 198,824 | $ 194,039 |
Less accumulated depreciation and amortization | 76,797 | 68,011 |
Bank premises and equipment, net | 122,027 | 126,028 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 29,708 | 29,839 |
Land Improvements and Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total | 97,341 | 96,943 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 8,760 | 8,313 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 54,188 | 49,914 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 8,827 | $ 9,030 |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Future Minimum Rental Payments Required) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Property, Plant and Equipment [Abstract] | |
2,017 | $ 6,418 |
2,018 | 6,037 |
2,019 | 5,197 |
2,020 | 4,345 |
2,021 | 3,959 |
Thereafter | 7,080 |
Total of future payments | $ 33,036 |
INTANGIBLE ASSETS (Narrative) (
INTANGIBLE ASSETS (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2016 | Jan. 01, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 298,191,000 | $ 293,522,000 | ||||
Impairment charges | $ 0 | |||||
Intangible assets, amortization expense | 7,210,000 | 8,445,000 | $ 9,795,000 | |||
Core Deposits | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization expense | $ 6,900,000 | 8,400,000 | 9,800,000 | |||
Core Deposits | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization period | 4 years | |||||
Core Deposits | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization period | 14 years | |||||
Other Intangible Assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization expense | $ 280,000 | $ 0 | $ 0 | |||
StellarOne Bank | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired intangible assets | $ 29,600,000 | |||||
Goodwill | $ 234,100,000 | |||||
ODCM | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill | $ 4,700,000 | |||||
Business combination, finite-lived intangibles | $ 4,500,000 | |||||
ODCM | Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization period | 5 years | |||||
ODCM | Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible assets, amortization period | 10 years |
INTANGIBLE ASSETS (Information
INTANGIBLE ASSETS (Information Concerning Intangible Assets with Finite Life) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 20,602 | $ 23,310 |
Amortizable core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 68,367 | 76,185 |
Accumulated Amortization | 51,987 | 52,875 |
Net Carrying Value | 16,380 | $ 23,310 |
Other amortizable intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,502 | |
Accumulated Amortization | 280 | |
Net Carrying Value | $ 4,222 |
INTANGIBLE ASSETS (Estimated Re
INTANGIBLE ASSETS (Estimated Remaining Amortization Expense of Core Deposit Intangibles) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Estimated remaining amortization expense of core deposit intangibles | ||
2,017 | $ 6,070 | |
2,018 | 4,625 | |
2,019 | 3,573 | |
2,020 | 2,509 | |
2,021 | 1,481 | |
Thereafter | 2,344 | |
Net Carrying Value | $ 20,602 | $ 23,310 |
DEPOSITS (Narrative) (Details)
DEPOSITS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash and Cash Equivalents [Line Items] | ||
Time deposits held in Certificates of Deposit | $ 1,192,575 | |
Deposit overdrafts as other consumer loans | 1,200 | $ 1,200 |
CDARS | ||
Cash and Cash Equivalents [Line Items] | ||
Time deposits held in Certificates of Deposit | $ 1,000 | $ 4,900 |
Maximum | CDARS | ||
Cash and Cash Equivalents [Line Items] | ||
Maturity of deposits held in Certificate of Deposits | 1 year |
DEPOSITS (Schedule of Deposits
DEPOSITS (Schedule of Deposits by Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | ||
NOW accounts | $ 1,765,956 | $ 1,521,906 |
Money market accounts | 1,435,591 | 1,312,612 |
Savings accounts | 591,742 | 572,800 |
Time deposits of $250,000 and over | 189,647 | 183,520 |
Other time deposits | 1,002,928 | 1,000,161 |
Total interest-bearing deposits | $ 4,985,864 | $ 4,590,999 |
DEPOSITS (Scheduled Maturities
DEPOSITS (Scheduled Maturities of Time Deposits) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Deposits, Interest-bearing and Noninterest-bearing, Alternative [Abstract] | |
2,017 | $ 463,884 |
2,018 | 381,063 |
2,019 | 159,011 |
2,020 | 141,145 |
2,021 | 47,472 |
Total scheduled maturities of time deposits | $ 1,192,575 |
BORROWINGS (Narrative) (Details
BORROWINGS (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)acquisition | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 01, 2014USD ($) | |
Subordinated Borrowing [Line Items] | ||||
Remaining available balance for the federal funds lines | $ 175,000 | $ 175,000 | ||
Remaining borrowing capacity with correspondent banks | 25,000 | 25,000 | ||
Maximum collateral dependent line of credit with the FHLB | 2,400,000 | 1,500,000 | ||
Subordinated debt | 150,000 | |||
Prepayment penalty | 19,600 | |||
Prepayment penalty amortization expense | 1,900 | 1,800 | $ 1,800 | |
Carrying value of the loans and securities pledged as collateral for FHLB | 2,000,000 | $ 1,900,000 | ||
Trust Preferred Capital Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Trust preferred capital notes principal balance | $ 90,500 | |||
Subordinated Debt Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Three-month LIBOR rate plus | 5.00% | |||
Acquisitions, Prior To 2006 | ||||
Subordinated Borrowing [Line Items] | ||||
Number of bank acquisitions | acquisition | 2 | |||
Trust preferred capital notes principal balance | $ 58,500 | |||
Subordinated debt maturity date | Dec. 15, 2026 | |||
Acquisitions, Prior To 2006 | Subordinated Debt Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Remaining fair value discount on acquired notes | $ 2,000 | |||
LIBOR | Subordinated Debt Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Three-month LIBOR rate plus | 3.175% | |||
StellarOne Bank | ||||
Subordinated Borrowing [Line Items] | ||||
Trust preferred capital notes principal balance | $ 32,000 | |||
Loans from Other Federal Home Loan Banks | 20,000 | $ 70,000 | ||
Remaining fair value premium on acquired FHLB advances | 559 | |||
StellarOne Bank | Trust Preferred Capital Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Remaining fair value discount on acquired notes | $ 6,700 |
BORROWINGS (Short-Term Borrowin
BORROWINGS (Short-Term Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Securities sold under agreements to repurchase | $ 59,281 | $ 84,977 |
Other short-term borrowings | 517,500 | 304,000 |
Total short-term borrowings | 576,781 | 388,977 |
Maximum month-end outstanding balance | 678,262 | 445,761 |
Average outstanding balance during the period | $ 590,074 | $ 379,783 |
Average interest rate during the period | 0.49% | 0.25% |
Average interest rate at end of period | 0.60% | 0.27% |
Other short-term borrowings: | ||
FHLB | $ 517,500 | $ 304,000 |
Other lines of credit | $ 0 | $ 0 |
BORROWINGS (Trust Preferred Cap
BORROWINGS (Trust Preferred Capital Notes Qualify for Tier 1 Capital) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Trust preferred capital notes qualify for Tier 1 capital | ||
Investment | $ 101,907 | $ 84,846 |
Statutory Trust | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | 22,500 | |
Investment | $ 696 | |
Rate | 3.75% | |
Maturity | Jun. 17, 2034 | |
Statutory Trust II | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 36,000 | |
Investment | $ 1,114 | |
Rate | 2.40% | |
Maturity | Jun. 15, 2036 | |
VFG Limited Liability Trust I Indenture | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 20,000 | |
Investment | $ 619 | |
Rate | 3.73% | |
Maturity | Mar. 18, 2034 | |
FNB Statutory Trust II Indenture | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 12,000 | |
Investment | $ 372 | |
Rate | 4.10% | |
Maturity | Jun. 26, 2033 | |
Trust Preferred Capital Notes | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Trust preferred capital notes principal balance | $ 90,500 | |
Investment | $ 2,801 | |
LIBOR | Statutory Trust | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 2.75% | |
LIBOR | Statutory Trust II | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 1.40% | |
LIBOR | VFG Limited Liability Trust I Indenture | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 2.73% | |
LIBOR | FNB Statutory Trust II Indenture | ||
Trust preferred capital notes qualify for Tier 1 capital | ||
Spread on LIBOR | 3.10% |
BORROWINGS (Advances from the F
BORROWINGS (Advances from the FHLB) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Advances from the FHLB | ||
Advance Amount | $ 190,000 | $ 200,000 |
Adjustable Rate Credit One | ||
Advances from the FHLB | ||
Interest Rate | 1.44% | 1.05% |
Maturity Date | Aug. 23, 2022 | Aug. 23, 2022 |
Advance Amount | $ 55,000 | $ 55,000 |
Adjustable Rate Credit Two | ||
Advances from the FHLB | ||
Interest Rate | 1.45% | 1.07% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 65,000 | $ 65,000 |
Adjustable Rate Credit Three | ||
Advances from the FHLB | ||
Interest Rate | 1.45% | 1.07% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 10,000 | $ 10,000 |
Adjustable Rate Credit Four | ||
Advances from the FHLB | ||
Interest Rate | 1.45% | 1.07% |
Maturity Date | Nov. 23, 2022 | Nov. 23, 2022 |
Advance Amount | $ 10,000 | $ 10,000 |
Fixed Rate One | ||
Advances from the FHLB | ||
Interest Rate | 3.62% | 3.62% |
Maturity Date | Nov. 28, 2017 | Nov. 28, 2017 |
Advance Amount | $ 10,000 | $ 10,000 |
Fixed Rate Two | ||
Advances from the FHLB | ||
Interest Rate | 3.75% | 3.75% |
Maturity Date | Jul. 30, 2018 | Jul. 30, 2018 |
Advance Amount | $ 5,000 | $ 5,000 |
Fixed Rate Three | ||
Advances from the FHLB | ||
Interest Rate | 3.97% | 3.97% |
Maturity Date | Jul. 30, 2018 | Jul. 30, 2018 |
Advance Amount | $ 5,000 | $ 5,000 |
Fixed Rate Hybrid One | ||
Advances from the FHLB | ||
Interest Rate | 0.99% | 2.11% |
Maturity Date | Oct. 19, 2018 | Oct. 5, 2016 |
Advance Amount | $ 30,000 | $ 25,000 |
Fixed Rate Hybrid Two | ||
Advances from the FHLB | ||
Interest Rate | 0.91% | |
Maturity Date | Jul. 25, 2016 | |
Advance Amount | $ 15,000 | |
LIBOR | Adjustable Rate Credit One | ||
Advances from the FHLB | ||
Spread on LIBOR | 0.44% | 0.44% |
LIBOR | Adjustable Rate Credit Two | ||
Advances from the FHLB | ||
Spread on LIBOR | 0.45% | 0.45% |
LIBOR | Adjustable Rate Credit Three | ||
Advances from the FHLB | ||
Spread on LIBOR | 0.45% | 0.45% |
LIBOR | Adjustable Rate Credit Four | ||
Advances from the FHLB | ||
Spread on LIBOR | 0.45% | 0.45% |
BORROWINGS (Contractual Maturit
BORROWINGS (Contractual Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Premium (Discount) | ||
2,017 | $ (30) | |
2,018 | (343) | |
2,019 | (486) | |
2,020 | (501) | |
2,021 | (516) | |
Thereafter | (6,307) | |
Total Long-term borrowings | (8,183) | |
Prepayment Penalty | ||
2,017 | (1,922) | |
2,018 | (1,970) | |
2,019 | (2,018) | |
2,020 | (2,074) | |
2,021 | (2,119) | |
Thereafter | (1,707) | |
Total Long-term borrowings | (11,810) | |
Total Long-term Borrowings | ||
2,017 | 8,048 | |
2,018 | 37,687 | |
2,019 | (2,504) | |
2,020 | (2,575) | |
2,021 | (2,635) | |
Thereafter | 375,287 | |
Long-term Debt | 413,308 | $ 291,198 |
Trust Preferred Capital Notes | ||
Total Long-term Borrowings, Gross | ||
Thereafter | 93,301 | |
Total Long-term borrowings | 93,301 | |
Subordinated Debt | ||
Total Long-term Borrowings, Gross | ||
Thereafter | 150,000 | |
Total Long-term borrowings | 150,000 | |
Federal Home Loan Bank Advances | ||
Total Long-term Borrowings, Gross | ||
2,017 | 10,000 | |
2,018 | 40,000 | |
Thereafter | 140,000 | |
Total Long-term borrowings | $ 190,000 |
COMMITMENTS AND CONTINGENCIES85
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Daily average required reserves | $ 54,500 | $ 48,700 |
Deposits with other financial institutions | 50,300 | |
Uninsured deposits with other financial institutions | 15,200 | 14,700 |
Indemnification reserves | 379 | $ 450 |
Cash Flow Hedging | ||
Deposits with other financial institutions serves as collateral | 18,900 | |
Interest Rate Swap | ||
Deposits with other financial institutions serves as collateral | $ 14,800 |
COMMITMENTS AND CONTINGENCIES86
COMMITMENTS AND CONTINGENCIES (Balances of Commitments and Contingencies) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | $ 2,009,097 | $ 1,696,721 |
Commitments to Extend Credit | ||
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | 1,924,885 | 1,557,350 |
Standby Letters of Credit | ||
Commitments with off-balance sheet risk: | ||
Total commitments with off-balance sheet risk | $ 84,212 | $ 139,371 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) $ in Thousands | Jun. 13, 2016USD ($)derivative_instrument | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Minimum | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate lock commitments period | 30 days | ||
Maximum | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate lock commitments period | 120 days | ||
Cash Flow Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Deposits with other financial institutions serves as collateral | $ 18,900 | ||
Fair Value Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Aggregate notional amount of the hedged items | 65,900 | $ 61,200 | |
Fair value of aggregate notional amount of the hedged items | (890) | $ 689 | |
Cash Flow Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Number of interest rate derivatives terminated | derivative_instrument | 3 | ||
Unrealized gain (loss) on interest rate cash flow hedges, pretax, accumulated other comprehensive income (loss) | $ 1,300 | ||
Gain (loss) reclassification from accumulated OCI to Income, estimate of time to transfer | 3 years | ||
Estimated net gains to be reclassified into earnings in the next twelve months | $ 382 |
DERIVATIVES (Summary of the Der
DERIVATIVES (Summary of the Derivatives) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Interest Rate Lock Commitments | Not Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | $ 48,743,000 | $ 50,369,000 |
Asset | 610,000 | 701,000 |
Liabilities | 0 | 0 |
Collateral Pledged | 0 | 0 |
Best Efforts Forward Delivery Commitments | Not Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 85,400 | 84,050 |
Asset | 1,469 | 370 |
Liabilities | 0 | 0 |
Collateral Pledged | 0 | 0 |
Pay Fixed - Receive Floating Interest Rate Swaps | Not Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 373,355,000 | 138,969,000 |
Asset | 0 | 3,758,000 |
Liabilities | 1,005,000 | 0 |
Collateral Pledged | 0 | 0 |
Pay Floating - Receive Fixed Interest Rate Swaps [Member] | Not Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 373,355 | 138,969 |
Asset | 1,005 | 0 |
Liabilities | 0 | 3,758 |
Collateral Pledged | 16,033 | 5,983 |
Cash Flow Hedges | Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 188,500,000 | 263,000,000 |
Asset | 211,000 | 946,000 |
Liabilities | 9,619,000 | 10,352,000 |
Collateral Pledged | 21,938,000 | 14,449,000 |
Fair Value Hedges | Designated as accounting hedges | ||
Summary of the derivative designated as a cash flow hedge | ||
Notional or Contractual Amount | 65,920,000 | 61,150,000 |
Asset | 1,437,000 | 0 |
Liabilities | 296,000 | 888,000 |
Collateral Pledged | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI89
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||||
Reclassifications of unrealized gains (losses) on AFS | $ 205,000 | $ 1,486,000 | $ 1,695,000 | ||
OTTI recovery amount | $ 400,000 | 400,000 | |||
Net gain (loss) on sale of securities, excluding OTTI recovery | 1,300,000 | ||||
Tax expense (benefit) related to (gains) losses on the sale of securities | 72,000 | 415,000 | 453,000 | ||
Transfer from securities available for sale to securities held to maturity | $ 201,800,000 | 0 | 201,822,000 | 0 | |
Held to maturity securities unrealized gains before tax | $ 8,100,000 | 5,200,000 | 6,800,000 | ||
Accretion expense | 1,600,000 | 1,300,000 | |||
Tax expense (benefit) related to (gains) losses for AFS securities transferred to HTM | (568,000) | (441,000) | 0 | ||
Reclassification of unrealized gains (losses) on cash flow hedges | 782,000 | 956,000 | 909,000 | ||
Tax expense (benefit) related to (gains) losses on the cash flow hedges | (274,000) | (335,000) | (318,000) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification adjustment for losses (gains) included in net income | (417,000) | $ (969,000) | $ (251,000) | ||
Unrealized Gains (Losses) on BOLI | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification adjustment for losses (gains) included in net income | $ 263,000 |
ACCUMULATED OTHER COMPREHENSI90
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Change in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 995,367 | $ 977,169 | $ 437,810 |
Unrealized gain transferred from AFS to HTM | 0 | ||
Other comprehensive income (loss) | (9,644) | (5,034) | 14,696 |
Amounts reclassified from accumulated other comprehensive income | (417) | (969) | (251) |
Other comprehensive income (loss) | (10,061) | (6,003) | 14,445 |
Ending balance | 1,001,032 | 995,367 | 977,169 |
Unrealized Gains (Losses) on AFS Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 7,777 | 17,439 | 1,192 |
Unrealized gain transferred from AFS to HTM | (5,251) | ||
Other comprehensive income (loss) | (8,186) | (3,640) | 17,089 |
Amounts reclassified from accumulated other comprehensive income | (133) | (771) | (842) |
Other comprehensive income (loss) | (8,319) | (4,411) | 16,247 |
Ending balance | (542) | 7,777 | 17,439 |
Unrealized Gain for AFS Securities Transferred to HTM | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 4,432 | 0 | |
Unrealized gain transferred from AFS to HTM | 5,251 | ||
Other comprehensive income (loss) | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | (1,055) | (819) | |
Other comprehensive income (loss) | (1,055) | (819) | |
Ending balance | 3,377 | 4,432 | 0 |
Change in Fair Value of Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (5,957) | (5,184) | (3,382) |
Unrealized gain transferred from AFS to HTM | 0 | ||
Other comprehensive income (loss) | 270 | (1,394) | (2,393) |
Amounts reclassified from accumulated other comprehensive income | 508 | 621 | 591 |
Other comprehensive income (loss) | 778 | (773) | (1,802) |
Ending balance | (5,179) | (5,957) | (5,184) |
Unrealized Gains (Losses) on BOLI | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | ||
Other comprehensive income (loss) | (1,728) | ||
Amounts reclassified from accumulated other comprehensive income | 263 | ||
Other comprehensive income (loss) | (1,465) | ||
Ending balance | (1,465) | 0 | |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 6,252 | 12,255 | (2,190) |
Other comprehensive income (loss) | (10,061) | (6,003) | 14,445 |
Ending balance | $ (3,809) | $ 6,252 | $ 12,255 |
REGULATORY MATTERS AND CAPITA91
REGULATORY MATTERS AND CAPITAL (Schedule of Bank Capital and Ratio) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 capital to risk weighted assets, actual amount | $ 699,728 | $ 691,195 |
Common Equity Tier 1 capital to risk weighted assets, actual ratio | 9.72% | 10.55% |
Common Equity Tier 1 capital to risk weighted assets, required for capital adequacy purposes, amount | $ 324,035 | $ 294,823 |
Common Equity Tier 1 capital to risk weighted assets, required for capital adequacy purposes, ratio | 4.50% | 4.50% |
Tier 1 capital to risk weighted assets, actual amount | $ 790,228 | $ 781,695 |
Tier 1 capital to risk weighted assets, actual ratio | 10.97% | 11.93% |
Tier 1 capital to risk weighted assets, required for capital adequacy purposes, amount | $ 432,047 | $ 393,141 |
Tier 1 capital ratio of risk-weighted assets | 6.00% | 6.00% |
Total capital to risk weighted assets, actual amount | $ 976,145 | $ 816,041 |
Total capital to risk weighted assets, actual ratio | 13.56% | 12.46% |
Total capital to risk weighted assets, Required for Capital adequacy purposes, amount | $ 576,062 | $ 523,943 |
Total capital to risk weighted assets, required for capital adequacy purposes, ratio | 8.00% | 8.00% |
Tier 1 capital to average adjusted assets, actual amount | $ 790,228 | $ 781,695 |
Tier 1 capital to average adjusted assets, actual ratio | 9.87% | 10.68% |
Tier 1 capital to average adjusted assets, required for capital adequacy purposes, amount | $ 320,316 | $ 292,770 |
Tier 1 capital to average adjusted assets, required for capital adequacy purposes, ratio | 4.00% | 4.00% |
Union Bank & Trust | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common Equity Tier 1 capital to risk weighted assets, actual amount | $ 901,783 | $ 751,992 |
Common Equity Tier 1 capital to risk weighted assets, actual ratio | 12.58% | 11.52% |
Common Equity Tier 1 capital to risk weighted assets, required for capital adequacy purposes, amount | $ 322,531 | $ 293,747 |
Common Equity Tier 1 capital to risk weighted assets, required for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common Equity Tier 1 capital to risk weighted assets, required in order to be well capitalized under PCA, amount | $ 465,878 | $ 424,301 |
Common Equity Tier 1 capital to risk weighted assets, required in order to be well capitalized under PCA, ratio | 6.50% | 6.50% |
Tier 1 capital to risk weighted assets, actual amount | $ 901,783 | $ 751,992 |
Tier 1 capital to risk weighted assets, actual ratio | 12.58% | 11.52% |
Tier 1 capital to risk weighted assets, required for capital adequacy purposes, amount | $ 430,042 | $ 391,663 |
Tier 1 capital ratio of risk-weighted assets | 6.00% | 6.00% |
Tier 1 capital to risk weighted assets, required in order to be well capitalized under PCA, amount | $ 573,389 | $ 522,217 |
Tier 1 capital to risk weighted assets, required in order to be well capitalized under PCA, ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, actual amount | $ 939,700 | $ 786,339 |
Total capital to risk weighted assets, actual ratio | 13.11% | 12.05% |
Total capital to risk weighted assets, Required for Capital adequacy purposes, amount | $ 573,390 | $ 522,051 |
Total capital to risk weighted assets, required for capital adequacy purposes, ratio | 8.00% | 8.00% |
Total capital to risk weighted assets, required in order to be well capitalized under PCA, amount | $ 716,737 | $ 652,563 |
Total capital to risk weighted assets, required in order to be well capitalized under PCA, ratio | 10.00% | 10.00% |
Tier 1 capital to average adjusted assets, actual amount | $ 901,783 | $ 751,992 |
Tier 1 capital to average adjusted assets, actual ratio | 11.31% | 10.31% |
Tier 1 capital to average adjusted assets, required for capital adequacy purposes, amount | $ 319,046 | $ 291,752 |
Tier 1 capital to average adjusted assets, required for capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 capital to average adjusted assets, required in order to be well capitalized under PCA, amount | $ 398,807 | $ 364,691 |
Tier 1 capital to average adjusted assets, required in order to be well capitalized under PCA, ratio | 5.00% | 5.00% |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)participant | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Fair Value Disclosures [Abstract] | |||
Weighted average pull through rate | 80.00% | 80.00% | |
Minimum number of market participants | participant | 4,000 | ||
Level 3 Fair value measurements weighted average related to impaired loans | 1.50% | 7.00% | |
Level 3 fair value measurements weighted average related to other real estate owned | 25.10% | 32.00% | |
Total valuation expenses related to OREO properties | $ | $ 1,017 | $ 6,002 | $ 7,646 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Securities available for sale, at fair value | $ 946,764 | $ 903,292 |
Loans held for sale | 36,487 | 36,030 |
Cash flow hedges | 211 | 946 |
Fair value hedge | 1,437 | |
Best efforts forward delivery commitments | 1,469 | 370 |
LIABILITIES | ||
Interest rate swap | 1,005 | 3,758 |
Cash flow hedges | 9,619 | 10,352 |
Fair value hedges | 296 | 888 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedge | 0 | |
Best efforts forward delivery commitments | 0 | 0 |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 946,764 | 903,292 |
Loans held for sale | 36,487 | 36,030 |
Cash flow hedges | 211 | 946 |
Fair value hedge | 1,437 | |
Best efforts forward delivery commitments | 0 | 0 |
LIABILITIES | ||
Interest rate swap | 1,005 | 3,758 |
Cash flow hedges | 9,619 | 10,352 |
Fair value hedges | 296 | 888 |
Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedge | 0 | |
Best efforts forward delivery commitments | 1,469 | 370 |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Recurring | ||
ASSETS | ||
Loans held for sale | 36,487 | 36,030 |
Cash flow hedges | 211 | 946 |
Fair value hedge | 1,437 | |
Best efforts forward delivery commitments | 1,469 | 370 |
LIABILITIES | ||
Interest rate swap | 1,005 | 3,758 |
Cash flow hedges | 9,619 | 10,352 |
Fair value hedges | 296 | 888 |
Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Loans held for sale | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedge | 0 | |
Best efforts forward delivery commitments | 0 | 0 |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Loans held for sale | 36,487 | 36,030 |
Cash flow hedges | 211 | 946 |
Fair value hedge | 1,437 | |
Best efforts forward delivery commitments | 0 | 0 |
LIABILITIES | ||
Interest rate swap | 1,005 | 3,758 |
Cash flow hedges | 9,619 | 10,352 |
Fair value hedges | 296 | 888 |
Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Loans held for sale | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedge | 0 | |
Best efforts forward delivery commitments | 1,469 | 370 |
LIABILITIES | ||
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Obligations of States and Political Subdivisions | ||
ASSETS | ||
Securities available for sale, at fair value | 275,890 | 268,079 |
Obligations of States and Political Subdivisions | Recurring | ||
ASSETS | ||
Securities available for sale, at fair value | 275,890 | 268,079 |
Obligations of States and Political Subdivisions | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Obligations of States and Political Subdivisions | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 275,890 | 268,079 |
Obligations of States and Political Subdivisions | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Corporate and Other Bonds | ||
ASSETS | ||
Securities available for sale, at fair value | 121,780 | 75,979 |
Corporate and Other Bonds | Recurring | ||
ASSETS | ||
Securities available for sale, at fair value | 121,780 | 75,979 |
Corporate and Other Bonds | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Corporate and Other Bonds | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 121,780 | 75,979 |
Corporate and Other Bonds | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Mortgage Backed Securities | ||
ASSETS | ||
Securities available for sale, at fair value | 535,286 | 548,171 |
Mortgage Backed Securities | Recurring | ||
ASSETS | ||
Securities available for sale, at fair value | 535,286 | 548,171 |
Mortgage Backed Securities | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Mortgage Backed Securities | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 535,286 | 548,171 |
Mortgage Backed Securities | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Other Securities | ||
ASSETS | ||
Securities available for sale, at fair value | 13,808 | 11,063 |
Other Securities | Recurring | ||
ASSETS | ||
Securities available for sale, at fair value | 13,808 | 11,063 |
Other Securities | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Other Securities | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Securities available for sale, at fair value | 13,808 | 11,063 |
Other Securities | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Securities available for sale, at fair value | 0 | 0 |
Interest Rate Swap | ||
ASSETS | ||
Interest rate derivatives | 1,005 | 3,758 |
Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Swap | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Interest rate derivatives | 1,005 | 3,758 |
Interest Rate Swap | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Swap | Recurring | ||
ASSETS | ||
Interest rate derivatives | 1,005 | 3,758 |
Interest Rate Swap | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Swap | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Interest rate derivatives | 1,005 | 3,758 |
Interest Rate Swap | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | ||
ASSETS | ||
Interest rate derivatives | 610 | 701 |
Interest Rate Lock Commitments | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Interest rate derivatives | 610 | 701 |
Interest Rate Lock Commitments | Recurring | ||
ASSETS | ||
Interest rate derivatives | 610 | 701 |
Interest Rate Lock Commitments | Recurring | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | Recurring | Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | Recurring | Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Interest rate derivatives | $ 610 | $ 701 |
FAIR VALUE MEASUREMENTS (Sche94
FAIR VALUE MEASUREMENTS (Schedule of Financial Assets Measured at Fair Value on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Other real estate owned | $ 10,084 | $ 15,299 |
Fair Value, Measurements, Nonrecurring | ||
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Impaired loans | 4,344 | 2,214 |
Other real estate owned | 10,084 | 15,299 |
Quoted Prices in Active Markets for Identical Assets Level 1 | Fair Value, Measurements, Nonrecurring | ||
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Significant Other Observable Inputs Level 2 | Fair Value, Measurements, Nonrecurring | ||
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Significant Unobservable Inputs Level 3 | Fair Value, Measurements, Nonrecurring | ||
Schedule of financial assets measured at fair value on nonrecurring basis | ||
Impaired loans | 4,344 | 2,214 |
Other real estate owned | $ 10,084 | $ 15,299 |
FAIR VALUE MEASUREMENTS (Carryi
FAIR VALUE MEASUREMENTS (Carrying Values and Estimated Fair Values of the Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 179,237 | $ 142,660 |
Securities available for sale, at fair value | 946,764 | 903,292 |
Held to maturity securities | 202,315 | 209,437 |
Restricted stock | 60,782 | 51,828 |
Loans held for sale | 36,487 | 36,030 |
Net loans | 6,265,443 | 5,671,155 |
Derivatives: | ||
Cash flow hedges | 211 | 946 |
Fair value hedges | 1,437 | |
Best efforts forward delivery commitments | 1,469 | 370 |
Accrued interest receivable | 23,448 | 20,760 |
Bank owned life insurance | 179,318 | 173,687 |
LIABILITIES | ||
Deposits | 6,370,457 | 5,957,484 |
Borrowings | 970,195 | 659,364 |
Accrued interest payable | 2,230 | 1,578 |
Interest rate swap | 1,005 | 3,758 |
Cash flow hedges | 9,619 | 10,352 |
Fair value hedges | 296 | 888 |
Quoted Prices in Active Markets for Identical Assets Level 1 | ||
ASSETS | ||
Cash and cash equivalents | 179,237 | 142,660 |
Securities available for sale, at fair value | 0 | 0 |
Held to maturity securities | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Net loans | 0 | 0 |
Derivatives: | ||
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | |
Best efforts forward delivery commitments | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank owned life insurance | 0 | 0 |
LIABILITIES | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale, at fair value | 946,764 | 903,292 |
Held to maturity securities | 202,315 | 209,437 |
Restricted stock | 60,782 | 51,828 |
Loans held for sale | 36,487 | 36,030 |
Net loans | 0 | 0 |
Derivatives: | ||
Cash flow hedges | 211 | 946 |
Fair value hedges | 1,437 | |
Best efforts forward delivery commitments | 0 | 0 |
Accrued interest receivable | 23,448 | 20,760 |
Bank owned life insurance | 179,318 | 173,687 |
LIABILITIES | ||
Deposits | 6,370,457 | 5,957,484 |
Borrowings | 970,195 | 659,364 |
Accrued interest payable | 2,230 | 1,578 |
Interest rate swap | 1,005 | 3,758 |
Cash flow hedges | 9,619 | 10,352 |
Fair value hedges | 296 | 888 |
Significant Unobservable Inputs Level 3 | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale, at fair value | 0 | 0 |
Held to maturity securities | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Net loans | 6,265,443 | 5,671,155 |
Derivatives: | ||
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | |
Best efforts forward delivery commitments | 1,469 | 370 |
Accrued interest receivable | 0 | 0 |
Bank owned life insurance | 0 | 0 |
LIABILITIES | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swap | 0 | 0 |
Cash flow hedges | 0 | 0 |
Fair value hedges | 0 | 0 |
Interest Rate Swap | ||
Derivatives: | ||
Interest rate derivatives | 1,005 | 3,758 |
Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Derivatives: | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Swap | Significant Other Observable Inputs Level 2 | ||
Derivatives: | ||
Interest rate derivatives | 1,005 | 3,758 |
Interest Rate Swap | Significant Unobservable Inputs Level 3 | ||
Derivatives: | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | ||
Derivatives: | ||
Interest rate derivatives | 610 | 701 |
Interest Rate Lock Commitments | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Derivatives: | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | Significant Other Observable Inputs Level 2 | ||
Derivatives: | ||
Interest rate derivatives | 0 | 0 |
Interest Rate Lock Commitments | Significant Unobservable Inputs Level 3 | ||
Derivatives: | ||
Interest rate derivatives | 610 | 701 |
Carrying Value | ||
ASSETS | ||
Cash and cash equivalents | 179,237 | 142,660 |
Securities available for sale, at fair value | 946,764 | 903,292 |
Held to maturity securities | 201,526 | 205,374 |
Restricted stock | 60,782 | 51,828 |
Loans held for sale | 36,487 | 36,030 |
Net loans | 6,269,868 | 5,637,415 |
Derivatives: | ||
Cash flow hedges | 211 | 946 |
Fair value hedges | 1,437 | |
Best efforts forward delivery commitments | 1,469 | 370 |
Accrued interest receivable | 23,448 | 20,760 |
Bank owned life insurance | 179,318 | 173,687 |
LIABILITIES | ||
Deposits | 6,379,489 | 5,963,936 |
Borrowings | 990,089 | 680,175 |
Accrued interest payable | 2,230 | 1,578 |
Interest rate swap | 1,005 | 3,758 |
Cash flow hedges | 9,619 | 10,352 |
Fair value hedges | 296 | 888 |
Carrying Value | Interest Rate Swap | ||
Derivatives: | ||
Interest rate derivatives | 1,005 | 3,758 |
Carrying Value | Interest Rate Lock Commitments | ||
Derivatives: | ||
Interest rate derivatives | $ 610 | $ 701 |
EMPLOYEE BENEFITS AND STOCK B96
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Narrative) (Details) - USD ($) | 12 Months Ended | 58 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Apr. 20, 2015 | Jan. 01, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Deferred compensation plans obligation to Board of Directors | $ 10,400,000 | $ 9,100,000 | $ 10,400,000 | |||
Salaries and benefit expense for incentive compensation | $ 2,700,000 | $ 1,200,000 | $ 898,000 | |||
Maximum term of stock options | 10 years | |||||
Stock options granted | 0 | 0 | 0 | |||
Stock options term from the grant date | 3 years 8 months 1 day | |||||
Number of stock option awards exercised | 88,409 | 60,637 | 75,282 | |||
Intrinsic value of stock options exercised | $ 1,200,000 | $ 544,000 | $ 573,000 | |||
Fair value of stock options exercised | 2,600,000 | 1,400,000 | 1,800,000 | |||
Cash received from the exercise of stock options | 1,400,000 | 886,000 | 1,200,000 | |||
Tax benefit from exercise of equity-based awards | 381,000 | 178,000 | 187,000 | |||
Fair value of stock options vested | $ 159,000 | 316,000 | 313,000 | |||
Restricted stock vesting percentage | 50.00% | |||||
Intrinsic value of stock options outstanding | $ 3,915,988 | $ 2,800,000 | $ 3,100,000 | $ 3,915,988 | ||
Unamortized compensation costs | $ 6,548,000 | $ 6,548,000 | ||||
Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Hours of service required for eligibility under plan | 1000 hours | |||||
Vesting period of stock options | 3 years | |||||
Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Vesting period of stock options | 4 years | |||||
1% through 3% | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of employer's match for 401(k) plan | 100.00% | |||||
1% through 3% | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of employee's gross pay for 401(k) plan | 1.00% | |||||
1% through 3% | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of employee's gross pay for 401(k) plan | 3.00% | |||||
4% through 5% | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of employer's match for 401(k) plan | 50.00% | |||||
4% through 5% | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of employee's gross pay for 401(k) plan | 4.00% | |||||
4% through 5% | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of employee's gross pay for 401(k) plan | 5.00% | |||||
Stock and Incentive Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of shares authorized to be issued, maximum | 2,500,000 | 2,500,000 | ||||
Number of shares available for future issuance | 1,666,637 | 1,666,637 | ||||
2011 Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of shares authorized to be issued, maximum | 1,000,000 | |||||
StellarOne Bank | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of shares equivalent to each share of acquired entity | 0.9739 |
EMPLOYEE BENEFITS AND STOCK B97
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Payment Made for Employee Benefit Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefits and Share-based Compensation [Abstract] | |||
401(K) Plan | $ 3,263 | $ 3,120 | $ 3,715 |
ESOP | 1,425 | 1,146 | 3,440 |
Cash | 1,496 | 1,146 | 983 |
Total | $ 6,184 | $ 5,412 | $ 8,138 |
EMPLOYEE BENEFITS AND STOCK B98
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Schedule of Recognized Stock-Based Compensation Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefits and Share-based Compensation [Abstract] | |||
Stock-based compensation expense | $ 3,270 | $ 1,388 | $ 979 |
Reduction of income tax expense | $ 1,104 | $ 405 | $ 234 |
Per share compensation cost | $ 0.05 | $ 0.02 | $ 0.02 |
EMPLOYEE BENEFITS AND STOCK B99
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Summary of Stock Option Activity) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options (shares) | |||
Number of Stock Options, Outstanding beginning balance | 298,743 | ||
Number of Stock Options, Granted | 0 | ||
Number of Stock Options, Exercised | (88,409) | (60,637) | (75,282) |
Number of Stock Options, Forfeited | 0 | ||
Number of Stock Options, Expired | (22,074) | ||
Number of Stock Options, Outstanding ending balance | 188,260 | 298,743 | |
Number of Stock Options, Exercisable | 170,466 | ||
Weighted Average Exercise Price | |||
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 14.94 | $ 16.40 | |
Weighted Average Exercise Price, Granted (in dollars per share) | 0 | ||
Weighted Average Exercise Price, Exercised (in dollars per share) | 16.10 | ||
Weighted Average Exercise Price, Forfeited (in dollars per share) | 0 | ||
Weighted Average Exercise Price, Expired (in dollars per share) | 30.12 | ||
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 15 | ||
Weighted Average Remaining Contractual Life, Outstanding | 3 years 8 months 1 day | ||
Weighted Average Remaining Contractual Life, Exercisable | 3 years 6 months 11 days | ||
Aggregate Intrinsic Value, Outstanding | $ 3,915,988 | $ 2,800,000 | $ 3,100,000 |
Aggregate Intrinsic Value, Exercisable | $ 3,536,264 |
EMPLOYEE BENEFITS AND STOCK 100
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Summary of Nonvested Stock Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock | ||
Number of Shares of RSAs | ||
Beginning balance (in shares) | 305,056 | |
Granted (in shares) | 137,690 | |
Net settle for taxes (in shares) | (23,123) | |
Vested (in shares) | (43,618) | |
Forfeited (in shares) | (4,567) | |
Ending balance (in shares) | 371,438 | |
Weighted Average Grant-Date Fair Value | ||
Outstanding balance (in dollars per share) | $ 23.70 | $ 22.64 |
Granted (in dollars per share) | 23.94 | |
Net settle for taxes (in dollars per share) | 26.30 | |
Vested (in dollars per share) | 19.39 | |
Forfeited (in dollars per share) | $ 23.05 | |
Performance Stock [Member] | ||
Number of Shares of RSAs | ||
Beginning balance (in shares) | 95,742 | |
Granted (in shares) | 76,469 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | (29,808) | |
Ending balance (in shares) | 142,403 | |
Weighted Average Grant-Date Fair Value | ||
Outstanding balance (in dollars per share) | $ 16.72 | $ 18.51 |
Granted (in dollars per share) | 15.06 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | $ 18.23 |
EMPLOYEE BENEFITS AND STOCK 101
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Estimated Stock Option on the Date of Grant Fair Value) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Estimated stock option on the date of grant fair value | |
Dividend yield | 3.36% |
Expected life in years | 2 years 10 months 6 days |
Expected volatility | 22.16% |
Risk-free interest rate | 0.83% |
EMPLOYEE BENEFITS AND STOCK 102
EMPLOYEE BENEFITS AND STOCK BASED COMPENSATION (Estimated Unamortized Compensation Expense Recognized in Future) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Estimated unamortized compensation expense recognized in future | |
2,017 | $ 2,970 |
2,018 | 2,314 |
2,019 | 1,164 |
2,020 | 100 |
Total | 6,548 |
Stock Options | |
Estimated unamortized compensation expense recognized in future | |
2,017 | 13 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
Total | 13 |
Restricted Stock | |
Estimated unamortized compensation expense recognized in future | |
2,017 | 2,353 |
2,018 | 1,919 |
2,019 | 1,164 |
2,020 | 100 |
Total | 5,536 |
Preferred Stock | |
Estimated unamortized compensation expense recognized in future | |
2,017 | 604 |
2,018 | 395 |
2,019 | 0 |
2,020 | 0 |
Total | $ 999 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets, valuation allowance | $ 2,200 | $ 1,700 | |
Effective income taxes | 25.70% | 25.80% | 25.80% |
Tax credits | $ 1,973 | $ 913 | $ 667 |
State and Local Jurisdiction | |||
Operating loss carryforward | $ 57,700 | $ 46,300 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 13,017 | $ 11,916 |
Benefit plans | 3,898 | 3,475 |
Acquisition accounting | 11,297 | 13,888 |
Stock grants | 1,371 | 1,679 |
Other real estate owned | 3,156 | 4,589 |
Securities available for sale | 291 | 105 |
Prime loan swap | 3,147 | 2,724 |
Investments in pass through entities | 835 | 1,366 |
Other | 2,408 | 2,212 |
Total deferred tax assets | 39,420 | 41,954 |
Deferred tax liabilities: | ||
Acquisition accounting | 11,645 | 13,282 |
Premises and equipment | 4,843 | 4,588 |
Securities available for sale | 1,818 | 6,861 |
Other | 806 | 2,429 |
Total deferred tax liabilities | 19,112 | 27,160 |
Net deferred tax asset | $ 20,308 | $ 14,794 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes Charged to Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense | $ 26,535 | $ 24,521 | $ 15,481 |
Deferred tax expense (benefit) | 243 | (1,212) | 2,644 |
Income tax expense | $ 26,778 | $ 23,309 | $ 18,125 |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Tax Expense, Difference in Income Tax Rate to Pretax Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Computed expected tax expense | $ 36,489 | $ 31,636 | $ 24,601 |
Tax-exempt interest income, net | (6,087) | (5,865) | (5,181) |
Other, net | (3,624) | (2,462) | (1,295) |
Income tax expense | $ 26,778 | $ 23,309 | $ 18,125 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive stock awards | 178 | 79,315 | 169,670 |
EARNINGS PER SHARE (Reconcileme
EARNINGS PER SHARE (Reconcilement of the Denominators of the Basic and Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconcilement of the denominators of the basic and diluted EPS computations | |||
Basic EPS, Net Income Available to Common Stockholders (Numerator) | $ 77,476 | $ 67,079 | $ 52,164 |
Basic EPS, Weighted Average Shares (Denominator) | 43,784,000 | 45,055,000 | 46,036,000 |
Basic EPS, Per Share Amount (in dollars per share) | $ 1.77 | $ 1.49 | $ 1.13 |
Effect of dilutive stock awards, Weighted Average Shares (Denominator) | 106,000 | 84,000 | 95,000 |
Diluted EPS, Net Income Available to Common Stockholders (Numerator) | $ 77,476 | $ 67,079 | $ 52,164 |
Diluted EPS, Weighted Average Common Shares | 43,890,271 | 45,138,891 | 46,130,895 |
Diluted EPS, Per Share Amount (in dollars per share) | $ 1.77 | $ 1.49 | $ 1.13 |
SEGMENT REPORTING DISCLOSURE109
SEGMENT REPORTING DISCLOSURES (Narrative) (Details) | 5 Months Ended | 7 Months Ended | 12 Months Ended |
May 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016segmententitystore | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Number of subsidiary bank | entity | 1 | ||
Number of retail locations | store | 114 | ||
Warehouse Line of Credit | LIBOR | |||
Segment Reporting Information [Line Items] | |||
Spread on LIBOR | 1.50% | 1.50% | 0.15% |
Mortgage banking segment interest - floor | 2.00% | 0.00% | 0.00% |
SEGMENT REPORTING DISCLOSURE110
SEGMENT REPORTING DISCLOSURES (Information About Reportable Segments and Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Information about reportable segments and reconciliation | |||
Net interest income | $ 265,150 | $ 251,834 | $ 255,018 |
Provision for credit losses | 9,100 | 9,571 | 7,800 |
Net interest income after provision for credit losses | 256,050 | 242,263 | 247,218 |
Noninterest income | 70,907 | 65,007 | 61,287 |
Noninterest expenses | 222,703 | 216,882 | 238,216 |
Income before income taxes | 104,254 | 90,388 | 70,289 |
Income tax expense | 26,778 | 23,309 | 18,125 |
Net income | 77,476 | 67,079 | 52,164 |
Total assets | 8,426,793 | 7,693,291 | 7,358,643 |
Operating Segments | Community Bank | |||
Information about reportable segments and reconciliation | |||
Net interest income | 263,714 | 250,510 | 253,956 |
Provision for credit losses | 8,883 | 9,450 | 7,800 |
Net interest income after provision for credit losses | 254,831 | 241,060 | 246,156 |
Noninterest income | 59,505 | 55,645 | 51,878 |
Noninterest expenses | 212,774 | 205,993 | 222,311 |
Income before income taxes | 101,562 | 90,712 | 75,723 |
Income tax expense | 25,846 | 23,431 | 20,061 |
Net income | 75,716 | 67,281 | 55,662 |
Total assets | 8,419,625 | 7,690,132 | 7,354,058 |
Operating Segments | Mortgage | |||
Information about reportable segments and reconciliation | |||
Net interest income | 1,436 | 1,324 | 1,062 |
Provision for credit losses | 217 | 121 | 0 |
Net interest income after provision for credit losses | 1,219 | 1,203 | 1,062 |
Noninterest income | 12,008 | 10,044 | 10,091 |
Noninterest expenses | 10,535 | 11,571 | 16,587 |
Income before income taxes | 2,692 | (324) | (5,434) |
Income tax expense | 932 | (122) | (1,936) |
Net income | 1,760 | (202) | (3,498) |
Total assets | 93,581 | 57,900 | 51,485 |
Eliminations | |||
Information about reportable segments and reconciliation | |||
Net interest income | 0 | 0 | 0 |
Provision for credit losses | 0 | 0 | 0 |
Net interest income after provision for credit losses | 0 | 0 | 0 |
Noninterest income | (606) | (682) | (682) |
Noninterest expenses | (606) | (682) | (682) |
Income before income taxes | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
Net income | 0 | 0 | 0 |
Total assets | $ (86,413) | $ (54,741) | $ (46,900) |
PARENT COMPANY FINANCIAL INF111
PARENT COMPANY FINANCIAL INFORMATION (Narrative) (Details) - Parent Company $ in Millions | Dec. 31, 2016USD ($) |
Aggregate amount of unrestricted funds | $ 37.1 |
Aggregate amount of unrestricted funds percentage | 3.71% |
PARENT COMPANY FINANCIAL INF112
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash | $ 179,237 | $ 142,660 | $ 133,260 | $ 73,023 |
Premises and equipment, net | 122,027 | 126,028 | ||
Other assets | 101,907 | 84,846 | ||
Total assets | 8,426,793 | 7,693,291 | 7,358,643 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Long-term borrowings | 413,308 | 291,198 | ||
Other liabilities | 56,183 | 53,813 | ||
Total liabilities | 7,425,761 | 6,697,924 | ||
Total stockholders' equity | 1,001,032 | 995,367 | 977,169 | 437,810 |
Total liabilities and stockholders' equity | 8,426,793 | 7,693,291 | ||
Parent Company | ||||
ASSETS | ||||
Cash | 10,681 | 10,386 | $ 9,692 | $ 10,092 |
Premises and equipment, net | 11,470 | 11,875 | ||
Other assets | 10,864 | 8,462 | ||
Investment in subsidiaries | 1,213,484 | 1,067,611 | ||
Total assets | 1,246,499 | 1,098,334 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Long-term borrowings | 148,000 | 7,500 | ||
Trust preferred capital notes | 86,559 | 86,312 | ||
Other liabilities | 10,908 | 9,155 | ||
Total liabilities | 245,467 | 102,967 | ||
Total stockholders' equity | 1,001,032 | 995,367 | ||
Total liabilities and stockholders' equity | $ 1,246,499 | $ 1,098,334 |
PARENT COMPANY FINANCIAL INF113
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Statements of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income: | |||
Interest and dividend income | $ 294,920 | $ 276,771 | $ 274,945 |
Other operating income | 3,112 | 5,429 | 3,204 |
Expenses: | |||
Interest expense | 29,770 | 24,937 | 19,927 |
Occupancy expenses | 19,528 | 20,053 | 20,136 |
Furniture and equipment expenses | 10,475 | 11,674 | 11,872 |
Other expenses | 6,919 | 7,283 | 5,538 |
Net income | 77,476 | 67,079 | 52,164 |
Parent Company | |||
Income: | |||
Interest and dividend income | 23 | 8 | 5 |
Dividends received from subsidiaries | 51,439 | 51,496 | 75,470 |
Equity in (distributed) undistributed net income from subsidiaries | 31,984 | 20,800 | (15,909) |
Other operating income | 1,314 | 1,228 | 1,393 |
Total income | 84,760 | 73,532 | 60,959 |
Expenses: | |||
Interest expense | 5,656 | 4,697 | 4,581 |
Occupancy expenses | 549 | 556 | 573 |
Furniture and equipment expenses | 18 | 9 | 20 |
Other expenses | 1,061 | 1,191 | 3,621 |
Total expenses | 7,284 | 6,453 | 8,795 |
Net income | 77,476 | 67,079 | 52,164 |
Comprehensive income | $ 67,415 | $ 61,076 | $ 66,609 |
PARENT COMPANY FINANCIAL INF114
PARENT COMPANY FINANCIAL INFORMATION (Financial Information for the Parent Company - Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Operating activities: | ||||
Net income | $ 77,476 | $ 67,079 | $ 52,164 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of premises and equipment | 10,215 | 10,776 | 10,742 | |
Acquisition accounting amortization, net | 1,534 | 1,823 | (255) | |
Issuance of common stock for services | 533 | 564 | 713 | |
Net (increase) decrease in other assets | (14,810) | 2,692 | 9,896 | |
Net (decrease) increase in other liabilities | (1,898) | (2,780) | 4,564 | |
Net cash and cash equivalents provided by operating activities | 93,843 | 110,923 | 127,220 | |
Investing activities: | ||||
Net decrease (increase) in premises and equipment | (6,339) | (3,870) | (7,124) | |
Payments for equity method investment | 0 | (355) | (60) | |
Cash received in acquisitions | 207 | 0 | 49,989 | |
Net cash and cash equivalents provided by (used in) investing activities | (715,117) | (375,286) | 6,303 | |
Financing activities: | ||||
Advances (repayments) of short-term borrowings | 187,804 | 1,584 | 74,211 | |
Repayments of long-term borrowings | (57,500) | (10,000) | 0 | |
Proceeds from issuance of long-term borrowings | 178,000 | 0 | 0 | |
Cash dividends paid | (33,672) | (29,082) | (25,494) | |
Net cash and cash equivalents provided by (used in) financing activities | 657,851 | 273,763 | (73,286) | |
Increase in cash and cash equivalents | 36,577 | 9,400 | 60,237 | |
Cash and cash equivalents at beginning of the period | 142,660 | 133,260 | 73,023 | |
Cash and cash equivalents at end of the period | 179,237 | 142,660 | 133,260 | |
Supplemental schedule of noncash investing and financing activities | ||||
Issuance of common stock in exchange for net assets in acquisition | 453 | 0 | 549,523 | |
Transactions related to bank acquisition | ||||
Assets acquired | 4,668 | 0 | 2,957,521 | |
Liabilities assumed | 4,807 | [1] | 0 | 2,642,120 |
Parent Company | ||||
Operating activities: | ||||
Net income | 77,476 | 67,079 | 52,164 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Equity in distributed (undistributed) net income of subsidiaries | (31,984) | (20,800) | 15,909 | |
Depreciation of premises and equipment | 438 | 435 | 464 | |
Acquisition accounting amortization, net | 247 | 235 | 224 | |
Issuance of common stock for services | 533 | 564 | 713 | |
Net (increase) decrease in other assets | (2,402) | 902 | 2,964 | |
Net (decrease) increase in other liabilities | 5,533 | 6,124 | (7,286) | |
Net cash and cash equivalents provided by operating activities | 49,841 | 54,539 | 65,152 | |
Investing activities: | ||||
Net decrease (increase) in premises and equipment | (33) | (35) | 863 | |
Payments for equity method investment | 0 | (355) | (60) | |
Payments for investments in and advances to subsidiaries | (125,000) | 0 | 0 | |
Repayment of investments in and advances to subsidiaries | 540 | 0 | 0 | |
Cash received in acquisitions | 0 | 0 | 4,735 | |
Net cash and cash equivalents provided by (used in) investing activities | (124,493) | (390) | 5,538 | |
Financing activities: | ||||
Advances (repayments) of short-term borrowings | 0 | (8,000) | 8,000 | |
Repayments of long-term borrowings | (7,500) | (625) | (625) | |
Proceeds from issuance of long-term borrowings | 148,000 | 0 | 0 | |
Cash dividends paid | (33,672) | (29,082) | (25,494) | |
Net Issuance (repurchase) of common stock | (31,881) | (15,748) | (52,971) | |
Net cash and cash equivalents provided by (used in) financing activities | 74,947 | (53,455) | (71,090) | |
Increase in cash and cash equivalents | 295 | 694 | (400) | |
Cash and cash equivalents at beginning of the period | 10,386 | 9,692 | 10,092 | |
Cash and cash equivalents at end of the period | 10,681 | 10,386 | 9,692 | |
Supplemental schedule of noncash investing and financing activities | ||||
Issuance of common stock in exchange for net assets in acquisition | 0 | 0 | 549,523 | |
Transactions related to bank acquisition | ||||
Assets acquired | 0 | 0 | 2,957,521 | |
Liabilities assumed | $ 0 | $ 0 | $ 2,642,120 | |
[1] | 2016 includes contingent consideration related to ODCM acquisition. |