x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2016. |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to . |
Pennsylvania | 23-1886144 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Large accelerated filer | ¨ | Accelerated filer | x |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Common Stock, $5 par value | 26,555,176 | |
(Title of Class) | (Number of shares outstanding at July 29, 2016) |
Page Number | |||
Part I. | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
Item 1. | Financial Statements |
(UNAUDITED) | |||||||
(Dollars in thousands, except share data) | At June 30, 2016 | At December 31, 2015 | |||||
ASSETS | |||||||
Cash and due from banks | $ | 36,404 | $ | 32,356 | |||
Interest-earning deposits with other banks | 8,286 | 28,443 | |||||
Federal funds sold | 48,500 | — | |||||
Investment securities held-to-maturity (fair value $32,946 and $41,061 at June 30, 2016 and December 31, 2015, respectively) | 32,885 | 40,990 | |||||
Investment securities available-for-sale | 254,095 | 329,770 | |||||
Loans held for sale | 4,657 | 4,680 | |||||
Loans and leases held for investment | 2,345,037 | 2,179,013 | |||||
Less: Reserve for loan and lease losses | (17,153 | ) | (17,628 | ) | |||
Net loans and leases held for investment | 2,327,884 | 2,161,385 | |||||
Premises and equipment, net | 44,437 | 42,156 | |||||
Goodwill | 112,657 | 112,657 | |||||
Other intangibles, net of accumulated amortization and fair value adjustments of $15,234 and $15,360 at June 30, 2016 and December 31, 2015, respectively | 11,677 | 12,620 | |||||
Bank owned life insurance | 72,565 | 71,560 | |||||
Funds advanced for merger settlement | 98,885 | — | |||||
Accrued interest receivable and other assets | 54,685 | 42,834 | |||||
Total assets | $ | 3,107,617 | $ | 2,879,451 | |||
LIABILITIES | |||||||
Noninterest-bearing deposits | $ | 689,916 | $ | 541,460 | |||
Interest-bearing deposits: | |||||||
Demand deposits | 674,847 | 790,800 | |||||
Savings deposits | 652,129 | 607,694 | |||||
Time deposits | 360,192 | 454,406 | |||||
Total deposits | 2,377,084 | 2,394,360 | |||||
Short-term borrowings | 260,216 | 24,211 | |||||
Subordinated notes | 49,450 | 49,377 | |||||
Accrued interest payable and other liabilities | 51,707 | 49,929 | |||||
Total liabilities | 2,738,457 | 2,517,877 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $5 par value: 48,000,000 shares authorized at June 30, 2016 and December 31, 2015; 22,054,270 shares issued at June 30, 2016 and December 31, 2015; 19,557,958 and 19,530,930 shares outstanding at June 30, 2016 and December 31, 2015, respectively | 110,271 | 110,271 | |||||
Additional paid-in capital | 121,399 | 121,280 | |||||
Retained earnings | 198,156 | 193,446 | |||||
Accumulated other comprehensive loss, net of tax benefit | (14,370 | ) | (16,708 | ) | |||
Treasury stock, at cost; 2,496,312 and 2,523,340 shares at June 30, 2016 and December 31, 2015, respectively | (46,296 | ) | (46,715 | ) | |||
Total shareholders’ equity | 369,160 | 361,574 | |||||
Total liabilities and shareholders’ equity | $ | 3,107,617 | $ | 2,879,451 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(Dollars in thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Interest income | |||||||||||||||
Interest and fees on loans and leases: | |||||||||||||||
Taxable | $ | 22,311 | $ | 21,939 | $ | 44,161 | $ | 43,193 | |||||||
Exempt from federal income taxes | 1,774 | 1,579 | 3,490 | 3,163 | |||||||||||
Total interest and fees on loans and leases | 24,085 | 23,518 | 47,651 | 46,356 | |||||||||||
Interest and dividends on investment securities: | |||||||||||||||
Taxable | 1,188 | 1,104 | 2,462 | 2,138 | |||||||||||
Exempt from federal income taxes | 710 | 880 | 1,444 | 1,739 | |||||||||||
Interest on federal funds sold | 2 | — | 9 | 2 | |||||||||||
Other interest income | 9 | 11 | 37 | 16 | |||||||||||
Total interest income | 25,994 | 25,513 | 51,603 | 50,251 | |||||||||||
Interest expense | |||||||||||||||
Interest on deposits | 1,458 | 1,445 | 2,991 | 2,862 | |||||||||||
Interest on short-term borrowings | 320 | 13 | 323 | 23 | |||||||||||
Interest on long-term borrowings | 673 | 675 | 1,348 | 682 | |||||||||||
Total interest expense | 2,451 | 2,133 | 4,662 | 3,567 | |||||||||||
Net interest income | 23,543 | 23,380 | 46,941 | 46,684 | |||||||||||
Provision for loan and lease losses | 830 | 1,141 | 1,156 | 2,215 | |||||||||||
Net interest income after provision for loan and lease losses | 22,713 | 22,239 | 45,785 | 44,469 | |||||||||||
Noninterest income | |||||||||||||||
Trust fee income | 1,997 | 2,154 | 3,862 | 3,974 | |||||||||||
Service charges on deposit accounts | 1,056 | 1,039 | 2,054 | 2,102 | |||||||||||
Investment advisory commission and fee income | 2,759 | 2,740 | 5,428 | 5,503 | |||||||||||
Insurance commission and fee income | 3,503 | 3,434 | 8,061 | 7,580 | |||||||||||
Other service fee income | 1,948 | 1,833 | 3,781 | 3,431 | |||||||||||
Bank owned life insurance income | 535 | 211 | 1,005 | 564 | |||||||||||
Net gain on sales of investment securities | 413 | 181 | 457 | 272 | |||||||||||
Net gain on mortgage banking activities | 1,711 | 1,367 | 2,929 | 2,625 | |||||||||||
Other income | 197 | 392 | 498 | 731 | |||||||||||
Total noninterest income | 14,119 | 13,351 | 28,075 | 26,782 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and benefits | 14,080 | 11,957 | 28,262 | 25,271 | |||||||||||
Commissions | 2,363 | 2,155 | 4,258 | 3,969 | |||||||||||
Net occupancy | 2,091 | 2,035 | 4,187 | 4,393 | |||||||||||
Equipment | 2,116 | 1,708 | 4,004 | 3,397 | |||||||||||
Professional fees | 947 | 1,066 | 1,967 | 1,873 | |||||||||||
Marketing and advertising | 513 | 551 | 1,051 | 911 | |||||||||||
Deposit insurance premiums | 418 | 422 | 865 | 834 | |||||||||||
Intangible expenses | 996 | 893 | 1,766 | 1,679 | |||||||||||
Acquisition-related costs | 1,158 | 41 | 1,372 | 507 | |||||||||||
Integration costs | 27 | 110 | 33 | 1,484 | |||||||||||
Restructuring charges | — | 1,642 | — | 1,642 | |||||||||||
Other expense | 4,837 | 4,252 | 8,720 | 8,283 | |||||||||||
Total noninterest expense | 29,546 | 26,832 | 56,485 | 54,243 | |||||||||||
Income before income taxes | 7,286 | 8,758 | 17,375 | 17,008 | |||||||||||
Income taxes | 2,046 | 2,292 | 4,846 | 4,426 | |||||||||||
Net income | $ | 5,240 | $ | 6,466 | $ | 12,529 | $ | 12,582 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.27 | $ | 0.33 | $ | 0.64 | $ | 0.64 | |||||||
Diluted | 0.27 | 0.33 | 0.64 | 0.64 | |||||||||||
Dividends declared | 0.20 | 0.20 | 0.40 | 0.40 |
Three Months Ended June 30, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | |||||||||||||||||||||
Before Tax Amount | Tax Expense (Benefit) | Net of Tax Amount | Before Tax Amount | Tax Expense (Benefit) | Net of Tax Amount | ||||||||||||||||||
Income | $ | 7,286 | $ | 2,046 | $ | 5,240 | $ | 8,758 | $ | 2,292 | $ | 6,466 | |||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Net unrealized gains (losses) on available-for-sale investment securities: | |||||||||||||||||||||||
Net unrealized holding gains (losses) arising during the period | 2,084 | 730 | 1,354 | (3,555 | ) | (1,244 | ) | (2,311 | ) | ||||||||||||||
Less: reclassification adjustment for net gains on sales realized in net income | (413 | ) | (145 | ) | (268 | ) | (181 | ) | (63 | ) | (118 | ) | |||||||||||
Total net unrealized gains (losses) on available-for-sale investment securities | 1,671 | 585 | 1,086 | (3,736 | ) | (1,307 | ) | (2,429 | ) | ||||||||||||||
Net change in fair value of interest rate swaps used in cash flow hedges | (220 | ) | (77 | ) | (143 | ) | 377 | 132 | 245 | ||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||
Amortization of net actuarial loss included in net periodic pension costs | 329 | 115 | 214 | 340 | 119 | 221 | |||||||||||||||||
Accretion of prior service cost included in net periodic pension costs | (70 | ) | (24 | ) | (46 | ) | (70 | ) | (25 | ) | (45 | ) | |||||||||||
Total defined benefit pension plans | 259 | 91 | 168 | 270 | 94 | 176 | |||||||||||||||||
Other comprehensive income (loss) | 1,710 | 599 | 1,111 | (3,089 | ) | (1,081 | ) | (2,008 | ) | ||||||||||||||
Total comprehensive income | $ | 8,996 | $ | 2,645 | $ | 6,351 | $ | 5,669 | $ | 1,211 | $ | 4,458 |
Six Months Ended June 30, | |||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | |||||||||||||||||||||
Before Tax Amount | Tax Expense (Benefit) | Net of Tax Amount | Before Tax Amount | Tax Expense (Benefit) | Net of Tax Amount | ||||||||||||||||||
Income | $ | 17,375 | $ | 4,846 | $ | 12,529 | $ | 17,008 | $ | 4,426 | $ | 12,582 | |||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Net unrealized (losses) gains on available-for-sale investment securities: | |||||||||||||||||||||||
Net unrealized holding gains (losses) arising during the period | 4,302 | 1,506 | 2,796 | (1,397 | ) | (489 | ) | (908 | ) | ||||||||||||||
Less: reclassification adjustment for net gains on sales realized in net income | (457 | ) | (160 | ) | (297 | ) | (272 | ) | (95 | ) | (177 | ) | |||||||||||
Total net unrealized gains (losses) on available-for-sale investment securities | 3,845 | 1,346 | 2,499 | (1,669 | ) | (584 | ) | (1,085 | ) | ||||||||||||||
Net change in fair value of interest rate swaps used in cash flow hedges | (765 | ) | (268 | ) | (497 | ) | 40 | 14 | 26 | ||||||||||||||
Defined benefit pension plans: | |||||||||||||||||||||||
Amortization of net actuarial loss included in net periodic pension costs | 658 | 230 | 428 | 681 | 239 | 442 | |||||||||||||||||
Accretion of prior service cost included in net periodic pension costs | (141 | ) | (49 | ) | (92 | ) | (140 | ) | (49 | ) | (91 | ) | |||||||||||
Total defined benefit pension plans | 517 | 181 | 336 | 541 | 190 | 351 | |||||||||||||||||
Other comprehensive income (loss) | 3,597 | 1,259 | 2,338 | (1,088 | ) | (380 | ) | (708 | ) | ||||||||||||||
Total comprehensive income | $ | 20,972 | $ | 6,105 | $ | 14,867 | $ | 15,920 | $ | 4,046 | $ | 11,874 |
(Dollars in thousands, except share and per share data) | Common Shares Outstanding | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total | |||||||||||||||||||
Six Months Ended June 30, 2016 | ||||||||||||||||||||||||||
Balance at December 31, 2015 | 19,530,930 | $ | 110,271 | $ | 121,280 | $ | 193,446 | $ | (16,708 | ) | $ | (46,715 | ) | $ | 361,574 | |||||||||||
Net income | — | — | — | 12,529 | — | — | 12,529 | |||||||||||||||||||
Other comprehensive income, net of income tax | — | — | — | — | 2,338 | — | 2,338 | |||||||||||||||||||
Cash dividends declared ($0.40 per share) | — | — | — | (7,819 | ) | — | — | (7,819 | ) | |||||||||||||||||
Stock issued under dividend reinvestment and employee stock purchase plans | 61,281 | — | 25 | — | — | 1,206 | 1,231 | |||||||||||||||||||
Exercise of stock options | 22,667 | — | (45 | ) | — | — | 422 | 377 | ||||||||||||||||||
Repurchase of cancelled restricted stock awards | (14,250 | ) | — | 241 | — | — | (241 | ) | — | |||||||||||||||||
Stock-based compensation | — | — | 944 | — | — | — | 944 | |||||||||||||||||||
Net tax benefit on stock-based compensation | — | — | 37 | — | — | — | 37 | |||||||||||||||||||
Purchases of treasury stock | (101,250 | ) | — | — | — | — | (2,051 | ) | (2,051 | ) | ||||||||||||||||
Restricted stock awards granted | 58,580 | — | (1,083 | ) | — | — | 1,083 | — | ||||||||||||||||||
Balance at June 30, 2016 | 19,557,958 | $ | 110,271 | $ | 121,399 | $ | 198,156 | $ | (14,370 | ) | $ | (46,296 | ) | $ | 369,160 |
(Dollars in thousands, except share and per share data) | Common Shares Outstanding | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Total | |||||||||||||||||||
Six Months Ended June 30, 2015 | ||||||||||||||||||||||||||
Balance at December 31, 2014 | 16,221,607 | $ | 91,332 | $ | 62,980 | $ | 181,851 | $ | (14,462 | ) | $ | (37,147 | ) | $ | 284,554 | |||||||||||
Net income | — | — | — | 12,582 | — | — | 12,582 | |||||||||||||||||||
Other comprehensive income, net of income tax | — | — | — | — | (708 | ) | — | (708 | ) | |||||||||||||||||
Cash dividends declared ($0.40 per share) | — | — | — | (7,902 | ) | — | — | (7,902 | ) | |||||||||||||||||
Stock issued under dividend reinvestment and employee stock purchase plans | 63,502 | — | 30 | (1 | ) | — | 1,221 | 1,250 | ||||||||||||||||||
Issuance of common stock, acquisition | 3,787,866 | 18,939 | 57,727 | — | — | — | 76,666 | |||||||||||||||||||
Exercise of stock options | 14,666 | — | (27 | ) | — | — | 268 | 241 | ||||||||||||||||||
Repurchase of cancelled restricted stock awards | (17,684 | ) | — | 277 | — | — | (277 | ) | — | |||||||||||||||||
Stock-based compensation | — | — | 813 | — | — | — | 813 | |||||||||||||||||||
Purchases of treasury stock | (575,771 | ) | — | — | — | — | (11,310 | ) | (11,310 | ) | ||||||||||||||||
Restricted stock awards granted | 65,755 | — | (1,195 | ) | — | — | 1,195 | — | ||||||||||||||||||
Balance at June 30, 2015 | 19,559,941 | $ | 110,271 | $ | 120,605 | $ | 186,530 | $ | (15,170 | ) | $ | (46,050 | ) | $ | 356,186 |
Six Months Ended June 30, | |||||||
(Dollars in thousands) | 2016 | 2015 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 12,529 | $ | 12,582 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan and lease losses | 1,156 | 2,215 | |||||
Depreciation of premises and equipment | 1,903 | 1,937 | |||||
Net gain on sales of investment securities | (457 | ) | (272 | ) | |||
Net gain on mortgage banking activities | (2,929 | ) | (2,625 | ) | |||
Bank owned life insurance income | (1,005 | ) | (564 | ) | |||
Net accretion of acquisition accounting fair value adjustments | (303 | ) | (1,316 | ) | |||
Stock-based compensation | 944 | 813 | |||||
Intangible expenses | 1,766 | 1,679 | |||||
Other adjustments to reconcile net income to cash provided by operating activities | 800 | 321 | |||||
Deferred tax expense | 1,619 | 3,537 | |||||
Originations of loans held for sale | (104,668 | ) | (104,072 | ) | |||
Proceeds from the sale of loans held for sale | 106,685 | 104,782 | |||||
Contributions to pension and other postretirement benefit plans | (121 | ) | (2,145 | ) | |||
Increase in accrued interest receivable and other assets | (11,532 | ) | (3,075 | ) | |||
Increase in accrued interest payable and other liabilities | 1,784 | 770 | |||||
Net cash provided by operating activities | 8,171 | 14,567 | |||||
Cash flows from investing activities: | |||||||
Net cash paid due to acquisitions | — | (2,967 | ) | ||||
Funds advanced for merger settlement | (98,885 | ) | — | ||||
Net capital expenditures | (4,195 | ) | (2,254 | ) | |||
Proceeds from maturities and calls of securities held-to-maturity | 8,000 | 11,000 | |||||
Proceeds from maturities and calls of securities available-for-sale | 54,156 | 41,169 | |||||
Proceeds from sales of securities available-for-sale | 73,991 | 37,546 | |||||
Purchases of investment securities available-for-sale | (48,647 | ) | (85,107 | ) | |||
Net increase in loans and leases | (169,417 | ) | (106,375 | ) | |||
Net decrease (increase) in interest-earning deposits | 20,157 | 8,626 | |||||
Net (increase) decrease in federal funds sold | (48,500 | ) | 17,442 | ||||
Net cash used in investing activities | (213,340 | ) | (80,920 | ) | |||
Cash flows from financing activities: | |||||||
Net (decrease) increase in deposits | (17,162 | ) | 16,062 | ||||
Net increase in short-term borrowings | 235,752 | 19,202 | |||||
Proceeds from issuance of subordinated notes | — | 49,267 | |||||
Payment of contingent consideration on acquisitions | (1,160 | ) | (880 | ) | |||
Purchases of treasury stock | (2,051 | ) | (11,310 | ) | |||
Stock issued under dividend reinvestment and employee stock purchase plans and other employee benefit programs | 1,231 | 1,250 | |||||
Proceeds from exercise of stock options, including excess tax benefits | 414 | 289 | |||||
Cash dividends paid | (7,807 | ) | (7,220 | ) | |||
Net cash provided by financing activities | 209,217 | 66,660 | |||||
Net increase in cash and due from banks | 4,048 | 307 | |||||
Cash and due from banks at beginning of year | 32,356 | 31,995 | |||||
Cash and due from banks at end of period | $ | 36,404 | $ | 32,302 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for interest | $ | 5,033 | $ | 3,152 | |||
Cash paid for income taxes, net of refunds | 4,348 | 49 | |||||
Non cash transactions: | |||||||
Transfer of loans to other real estate owned | $ | 1,952 | $ | — | |||
Transfer of loans to loans held for sale | — | 4,000 | |||||
Assets acquired through acquisitions | — | 425,311 | |||||
Liabilities assumed through acquisitions | — | 389,782 | |||||
Contingent consideration recorded as goodwill | — | 1,525 |
At June 30, 2016 | At December 31, 2015 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Within 1 year | $ | 22,879 | $ | 47 | $ | — | $ | 22,926 | $ | 21,047 | $ | 134 | $ | — | $ | 21,181 | |||||||||||||||
After 1 year to 5 years | 10,006 | 22 | (8 | ) | 10,020 | 19,943 | 1 | (64 | ) | 19,880 | |||||||||||||||||||||
32,885 | 69 | (8 | ) | 32,946 | 40,990 | 135 | (64 | ) | 41,061 | ||||||||||||||||||||||
Total | $ | 32,885 | $ | 69 | $ | (8 | ) | $ | 32,946 | $ | 40,990 | $ | 135 | $ | (64 | ) | $ | 41,061 | |||||||||||||
Securities Available-for-Sale | |||||||||||||||||||||||||||||||
U.S. treasuries: | |||||||||||||||||||||||||||||||
After 1 year to 5 years | $ | — | $ | — | $ | — | $ | — | $ | 4,978 | $ | — | $ | (91 | ) | $ | 4,887 | ||||||||||||||
— | — | — | — | 4,978 | — | (91 | ) | 4,887 | |||||||||||||||||||||||
U.S. government corporations and agencies: | |||||||||||||||||||||||||||||||
Within 1 year | 10,067 | 23 | — | 10,090 | 10,389 | — | (29 | ) | 10,360 | ||||||||||||||||||||||
After 1 year to 5 years | 37,043 | 313 | — | 37,356 | 92,148 | 26 | (378 | ) | 91,796 | ||||||||||||||||||||||
47,110 | 336 | — | 47,446 | 102,537 | 26 | (407 | ) | 102,156 | |||||||||||||||||||||||
State and political subdivisions: | |||||||||||||||||||||||||||||||
After 1 year to 5 years | 16,818 | 150 | (8 | ) | 16,960 | 17,362 | 80 | (29 | ) | 17,413 | |||||||||||||||||||||
After 5 years to 10 years | 50,727 | 1,718 | (11 | ) | 52,434 | 47,969 | 1,188 | (32 | ) | 49,125 | |||||||||||||||||||||
Over 10 years | 28,133 | 1,340 | — | 29,473 | 34,334 | 1,160 | — | 35,494 | |||||||||||||||||||||||
95,678 | 3,208 | (19 | ) | 98,867 | 99,665 | 2,428 | (61 | ) | 102,032 | ||||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||||||||||||
After 1 year to 5 years | — | — | — | — | 9,713 | 12 | (13 | ) | 9,712 | ||||||||||||||||||||||
After 5 years to 10 years | 57 | 1 | — | 58 | 60 | — | — | 60 | |||||||||||||||||||||||
Over 10 years | 3,478 | 99 | — | 3,577 | 3,517 | 65 | — | 3,582 | |||||||||||||||||||||||
3,535 | 100 | — | 3,635 | 13,290 | 77 | (13 | ) | 13,354 | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||||||
Over 10 years | 2,930 | — | (2 | ) | 2,928 | 3,215 | — | (82 | ) | 3,133 | |||||||||||||||||||||
2,930 | — | (2 | ) | 2,928 | 3,215 | — | (82 | ) | 3,133 | ||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Within 1 year | 250 | — | — | 250 | 250 | — | — | 250 | |||||||||||||||||||||||
After 1 year to 5 years | 19,032 | 241 | (4 | ) | 19,269 | 19,446 | 25 | (158 | ) | 19,313 | |||||||||||||||||||||
After 5 years to 10 years | 15,204 | 76 | (3 | ) | 15,277 | 10,148 | — | (266 | ) | 9,882 | |||||||||||||||||||||
Over 10 years | 60,000 | 709 | (2,060 | ) | 58,649 | 60,000 | — | (2,770 | ) | 57,230 | |||||||||||||||||||||
94,486 | 1,026 | (2,067 | ) | 93,445 | 89,844 | 25 | (3,194 | ) | 86,675 | ||||||||||||||||||||||
Money market mutual funds: | |||||||||||||||||||||||||||||||
No stated maturity | 7,009 | — | — | 7,009 | 16,726 | — | — | 16,726 | |||||||||||||||||||||||
7,009 | — | — | 7,009 | 16,726 | — | — | 16,726 | ||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||
No stated maturity | 413 | 352 | — | 765 | 426 | 381 | — | 807 | |||||||||||||||||||||||
413 | 352 | — | 765 | 426 | 381 | — | 807 | ||||||||||||||||||||||||
Total | $ | 251,161 | $ | 5,022 | $ | (2,088 | ) | $ | 254,095 | $ | 330,681 | $ | 2,937 | $ | (3,848 | ) | $ | 329,770 |
Six Months Ended June 30, | |||||||
(Dollars in thousands) | 2016 | 2015 | |||||
Securities available-for-sale: | |||||||
Proceeds from sales | $ | 73,991 | $ | 37,546 | |||
Gross realized gains on sales | 539 | 294 | |||||
Gross realized losses on sales | 82 | 22 | |||||
Tax expense related to net realized gains on sales | 160 | 95 |
Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
At June 30, 2016 | |||||||||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||
Corporate bonds | $ | — | $ | — | $ | 4,997 | $ | (8 | ) | $ | 4,997 | $ | (8 | ) | |||||||||
Total | $ | — | $ | — | $ | 4,997 | $ | (8 | ) | $ | 4,997 | $ | (8 | ) | |||||||||
Securities Available-for-Sale | |||||||||||||||||||||||
State and political subdivisions | $ | 1,287 | $ | (2 | ) | $ | 2,622 | $ | (17 | ) | $ | 3,909 | $ | (19 | ) | ||||||||
Collateralized mortgage obligations | — | — | 2,928 | (2 | ) | 2,928 | (2 | ) | |||||||||||||||
Corporate bonds | — | — | 43,680 | (2,067 | ) | 43,680 | (2,067 | ) | |||||||||||||||
Total | $ | 1,287 | $ | (2 | ) | $ | 49,230 | $ | (2,086 | ) | $ | 50,517 | $ | (2,088 | ) | ||||||||
At December 31, 2015 | |||||||||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||
Corporate bonds | $ | 12,078 | $ | (9 | ) | $ | 4,953 | $ | (55 | ) | $ | 17,031 | $ | (64 | ) | ||||||||
Total | $ | 12,078 | $ | (9 | ) | $ | 4,953 | $ | (55 | ) | $ | 17,031 | $ | (64 | ) | ||||||||
Securities Available-for-Sale | |||||||||||||||||||||||
U.S. treasuries | $ | — | $ | — | $ | 4,887 | $ | (91 | ) | $ | 4,887 | $ | (91 | ) | |||||||||
U.S. government corporations and agencies | 72,157 | (379 | ) | 4,972 | (28 | ) | 77,129 | (407 | ) | ||||||||||||||
State and political subdivisions | 10,251 | (49 | ) | 1,335 | (12 | ) | 11,586 | (61 | ) | ||||||||||||||
Residential mortgage-backed securities | 4,751 | (13 | ) | — | — | 4,751 | (13 | ) | |||||||||||||||
Collateralized mortgage obligations | — | — | 3,133 | (82 | ) | 3,133 | (82 | ) | |||||||||||||||
Corporate bonds | 72,234 | (2,941 | ) | 10,669 | (253 | ) | 82,903 | (3,194 | ) | ||||||||||||||
Total | $ | 159,393 | $ | (3,382 | ) | $ | 24,996 | $ | (466 | ) | $ | 184,389 | $ | (3,848 | ) |
At June 30, 2016 | |||||||||||
(Dollars in thousands) | Originated | Acquired | Total | ||||||||
Commercial, financial and agricultural | $ | 559,364 | $ | 20,096 | $ | 579,460 | |||||
Real estate-commercial | 813,925 | 113,033 | 926,958 | ||||||||
Real estate-construction | 97,967 | 2,112 | 100,079 | ||||||||
Real estate-residential secured for business purpose | 122,373 | 107,849 | 230,222 | ||||||||
Real estate-residential secured for personal purpose | 200,746 | 3,085 | 203,831 | ||||||||
Real estate-home equity secured for personal purpose | 134,170 | 10,335 | 144,505 | ||||||||
Loans to individuals | 30,880 | 306 | 31,186 | ||||||||
Lease financings | 128,796 | — | 128,796 | ||||||||
Total loans and leases held for investment, net of deferred income | $ | 2,088,221 | $ | 256,816 | $ | 2,345,037 | |||||
Unearned lease income, included in the above table | $ | (14,539 | ) | $ | — | $ | (14,539 | ) | |||
Net deferred costs, included in the above table | 4,987 | — | 4,987 | ||||||||
Overdraft deposits included in the above table | 72 | — | 72 |
At December 31, 2015 | |||||||||||
(Dollars in thousands) | Originated | Acquired | Total | ||||||||
Commercial, financial and agricultural | $ | 479,980 | $ | 24,535 | $ | 504,515 | |||||
Real estate-commercial | 759,342 | 126,550 | 885,892 | ||||||||
Real estate-construction | 91,904 | 4,637 | 96,541 | ||||||||
Real estate-residential secured for business purpose | 94,280 | 124,503 | 218,783 | ||||||||
Real estate-residential secured for personal purpose | 177,850 | 3,305 | 181,155 | ||||||||
Real estate-home equity secured for personal purpose | 125,361 | 11,594 | 136,955 | ||||||||
Loans to individuals | 29,406 | 326 | 29,732 | ||||||||
Lease financings | 125,440 | — | 125,440 | ||||||||
Total loans and leases held for investment, net of deferred income | $ | 1,883,563 | $ | 295,450 | $ | 2,179,013 | |||||
Unearned lease income, included in the above table | $ | (13,829 | ) | $ | — | $ | (13,829 | ) | |||
Net deferred costs, included in the above table | 4,244 | — | 4,244 | ||||||||
Overdraft deposits included in the above table | 35 | — | 35 |
(Dollars in thousands) | At June 30, 2016 | At December 31, 2015 | |||||
Outstanding principal balance | $ | 1,814 | $ | 3,551 | |||
Carrying amount | 942 | 1,253 | |||||
Allowance for loan losses | — | 8 |
(Dollars in thousands) | Six Months Ended June 30, 2016 | ||
Beginning of period | $ | 144 | |
Reclassification from nonaccretable difference | 133 | ||
Accretable yield amortized to interest income | (184 | ) | |
Disposals | (34 | ) | |
End of period | $ | 59 |
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or more Past Due | Total Past Due | Current | Acquired Credit Impaired | Total Loans and Leases Held for Investment | Recorded Investment 90 Days or more Past Due and Accruing Interest | |||||||||||||||||||||||
At June 30, 2016 | |||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 813 | $ | 19 | $ | 1,758 | $ | 2,590 | $ | 576,870 | $ | — | $ | 579,460 | $ | — | |||||||||||||||
Real estate—commercial real estate and construction: | |||||||||||||||||||||||||||||||
Commercial real estate | 606 | — | 626 | 1,232 | 925,546 | 180 | 926,958 | — | |||||||||||||||||||||||
Construction | — | — | — | — | 100,079 | — | 100,079 | — | |||||||||||||||||||||||
Real estate—residential and home equity: | |||||||||||||||||||||||||||||||
Residential secured for business purpose | 2,414 | 1,025 | 582 | 4,021 | 225,439 | 762 | 230,222 | — | |||||||||||||||||||||||
Residential secured for personal purpose | 262 | — | 308 | 570 | 203,261 | — | 203,831 | — | |||||||||||||||||||||||
Home equity secured for personal purpose | 1,094 | 40 | 687 | 1,821 | 142,684 | — | 144,505 | 77 | |||||||||||||||||||||||
Loans to individuals | 168 | 54 | 155 | 377 | 30,809 | — | 31,186 | 155 | |||||||||||||||||||||||
Lease financings | 1,835 | 556 | 1,077 | 3,468 | 125,328 | — | 128,796 | 516 | |||||||||||||||||||||||
Total | $ | 7,192 | $ | 1,694 | $ | 5,193 | $ | 14,079 | $ | 2,330,016 | $ | 942 | $ | 2,345,037 | $ | 748 | |||||||||||||||
At December 31, 2015 | |||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 864 | $ | 298 | $ | 4,279 | $ | 5,441 | $ | 498,757 | $ | 317 | $ | 504,515 | $ | — | |||||||||||||||
Real estate—commercial real estate and construction: | |||||||||||||||||||||||||||||||
Commercial real estate | 12,103 | — | 1,102 | 13,205 | 872,174 | 513 | 885,892 | — | |||||||||||||||||||||||
Construction | — | — | — | — | 96,541 | — | 96,541 | — | |||||||||||||||||||||||
Real estate—residential and home equity: | |||||||||||||||||||||||||||||||
Residential secured for business purpose | 1,406 | 2,356 | 727 | 4,489 | 213,871 | 423 | 218,783 | — | |||||||||||||||||||||||
Residential secured for personal purpose | 990 | 69 | 309 | 1,368 | 179,787 | — | 181,155 | — | |||||||||||||||||||||||
Home equity secured for personal purpose | 777 | 52 | 174 | 1,003 | 135,952 | — | 136,955 | — | |||||||||||||||||||||||
Loans to individuals | 198 | 97 | 173 | 468 | 29,264 | — | 29,732 | 173 | |||||||||||||||||||||||
Lease financings | 1,294 | 652 | 646 | 2,592 | 122,848 | — | 125,440 | 206 | |||||||||||||||||||||||
Total | $ | 17,632 | $ | 3,524 | $ | 7,410 | $ | 28,566 | $ | 2,149,194 | $ | 1,253 | $ | 2,179,013 | $ | 379 |
At June 30, 2016 | At December 31, 2015 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Nonaccrual Loans and Leases* | Accruing Troubled Debt Restructured Loans and Lease Modifications | Loans and Leases 90 Days or more Past Due and Accruing Interest | Total Non- Performing Loans and Leases | Nonaccrual Loans and Leases* | Accruing Troubled Debt Restructured Loans and Lease Modifications | Loans and Leases 90 Days or more Past Due and Accruing Interest | Total Non- Performing Loans and Leases | |||||||||||||||||||||||
Commercial, financial and agricultural | $ | 5,463 | $ | 1,425 | $ | — | $ | 6,888 | $ | 6,915 | $ | 1,602 | $ | — | $ | 8,517 | |||||||||||||||
Real estate—commercial real estate and construction: | |||||||||||||||||||||||||||||||
Commercial real estate | 3,960 | 2,173 | — | 6,133 | 4,314 | 2,449 | — | 6,763 | |||||||||||||||||||||||
Real estate—residential and home equity: | |||||||||||||||||||||||||||||||
Residential secured for business purpose | 2,251 | 815 | — | 3,066 | 1,863 | 763 | — | 2,626 | |||||||||||||||||||||||
Residential secured for personal purpose | 409 | — | — | 409 | 376 | 421 | — | 797 | |||||||||||||||||||||||
Home equity secured for personal purpose | 620 | — | 77 | 697 | 275 | — | — | 275 | |||||||||||||||||||||||
Loans to individuals | — | — | 155 | 155 | — | — | 173 | 173 | |||||||||||||||||||||||
Lease financings | 562 | — | 516 | 1,078 | 440 | 10 | 206 | 656 | |||||||||||||||||||||||
Total | $ | 13,265 | $ | 4,413 | $ | 748 | $ | 18,426 | $ | 14,183 | $ | 5,245 | $ | 379 | $ | 19,807 |
1. | Cash Secured—No credit risk |
2. | Fully Secured—Negligible credit risk |
3. | Strong—Minimal credit risk |
4. | Satisfactory—Nominal credit risk |
5. | Acceptable—Moderate credit risk |
6. | Pre-Watch—Marginal, but stable credit risk |
7. | Special Mention—Potential weakness |
8. | Substandard—Well-defined weakness |
9. | Doubtful—Collection in-full improbable |
10. | Loss—Considered uncollectible |
(Dollars in thousands) | Commercial, Financial and Agricultural | Real Estate— Commercial | Real Estate— Construction | Real Estate— Residential Secured for Business Purpose | Total | ||||||||||||||
At June 30, 2016 | |||||||||||||||||||
Grade: | |||||||||||||||||||
1. Cash secured/ 2. Fully secured | $ | 421 | $ | — | $ | 6,335 | $ | — | $ | 6,756 | |||||||||
3. Strong | 17,282 | 2,781 | — | — | 20,063 | ||||||||||||||
4. Satisfactory | 31,286 | 37,333 | 450 | 256 | 69,325 | ||||||||||||||
5. Acceptable | 410,312 | 578,714 | 82,780 | 107,227 | 1,179,033 | ||||||||||||||
6. Pre-watch | 67,282 | 129,351 | 8,188 | 10,435 | 215,256 | ||||||||||||||
7. Special Mention | 6,297 | 19,031 | — | 161 | 25,489 | ||||||||||||||
8. Substandard | 26,484 | 46,715 | 214 | 4,294 | 77,707 | ||||||||||||||
9. Doubtful | — | — | — | — | — | ||||||||||||||
10.Loss | — | — | — | — | — | ||||||||||||||
Total | $ | 559,364 | $ | 813,925 | $ | 97,967 | $ | 122,373 | $ | 1,593,629 | |||||||||
At December 31, 2015 | |||||||||||||||||||
Grade: | |||||||||||||||||||
1. Cash secured/ 2. Fully secured | $ | 968 | $ | — | $ | 5,417 | $ | — | $ | 6,385 | |||||||||
3. Strong | 17,328 | 10,877 | — | — | 28,205 | ||||||||||||||
4. Satisfactory | 36,697 | 36,023 | 450 | 9 | 73,179 | ||||||||||||||
5. Acceptable | 328,140 | 530,766 | 72,630 | 78,659 | 1,010,195 | ||||||||||||||
6. Pre-watch | 61,098 | 119,117 | 13,262 | 7,161 | 200,638 | ||||||||||||||
7. Special Mention | 6,074 | 20,286 | — | 2,347 | 28,707 | ||||||||||||||
8. Substandard | 29,675 | 42,273 | 145 | 6,104 | 78,197 | ||||||||||||||
9. Doubtful | — | — | — | — | — | ||||||||||||||
10.Loss | — | — | — | — | — | ||||||||||||||
Total | $ | 479,980 | $ | 759,342 | $ | 91,904 | $ | 94,280 | $ | 1,425,506 |
(Dollars in thousands) | Commercial, Financial and Agricultural | Real Estate— Commercial | Real Estate— Construction | Real Estate— Residential Secured for Business Purpose | Total | ||||||||||||||
At June 30, 2016 | |||||||||||||||||||
Grade: | |||||||||||||||||||
1. Cash secured/ 2. Fully secured | $ | 1,398 | $ | — | $ | — | $ | — | $ | 1,398 | |||||||||
3. Strong | — | — | — | — | — | ||||||||||||||
4. Satisfactory | 1,146 | 2,162 | — | — | 3,308 | ||||||||||||||
5. Acceptable | 14,604 | 88,291 | 2,112 | 94,424 | 199,431 | ||||||||||||||
6. Pre-watch | 2,067 | 13,839 | — | 7,711 | 23,617 | ||||||||||||||
7. Special Mention | — | 7,716 | — | 3,440 | 11,156 | ||||||||||||||
8. Substandard | 881 | 1,025 | — | 2,274 | 4,180 | ||||||||||||||
9. Doubtful | — | — | — | — | — | ||||||||||||||
10.Loss | — | — | — | — | — | ||||||||||||||
Total | $ | 20,096 | $ | 113,033 | $ | 2,112 | $ | 107,849 | $ | 243,090 | |||||||||
December 31, 2015 | |||||||||||||||||||
Grade: | |||||||||||||||||||
1. Cash secured/ 2. Fully secured | $ | 1,411 | $ | — | $ | — | $ | — | $ | 1,411 | |||||||||
3. Strong | — | — | — | — | — | ||||||||||||||
4. Satisfactory | 1,181 | 3,561 | — | 608 | 5,350 | ||||||||||||||
5. Acceptable | 18,446 | 102,122 | 4,637 | 113,002 | 238,207 | ||||||||||||||
6. Pre-watch | 2,273 | 10,365 | — | 8,153 | 20,791 | ||||||||||||||
7. Special Mention | 417 | 8,853 | — | 367 | 9,637 | ||||||||||||||
8. Substandard | 807 | 1,649 | — | 2,373 | 4,829 | ||||||||||||||
9. Doubtful | — | — | — | — | — | ||||||||||||||
10.Loss | — | — | — | — | — | ||||||||||||||
Total | $ | 24,535 | $ | 126,550 | $ | 4,637 | $ | 124,503 | $ | 280,225 |
(Dollars in thousands) | Real Estate— Residential Secured for Personal Purpose | Real Estate— Home Equity Secured for Personal Purpose | Loans to Individuals | Lease Financing | Total | ||||||||||||||
At June 30, 2016 | |||||||||||||||||||
Performing | $ | 200,337 | $ | 133,473 | $ | 30,725 | $ | 127,718 | $ | 492,253 | |||||||||
Nonperforming | 409 | 697 | 155 | 1,078 | 2,339 | ||||||||||||||
Total | $ | 200,746 | $ | 134,170 | $ | 30,880 | $ | 128,796 | $ | 494,592 | |||||||||
At December 31, 2015 | |||||||||||||||||||
Performing | $ | 177,053 | $ | 125,086 | $ | 29,233 | $ | 124,784 | $ | 456,156 | |||||||||
Nonperforming | 797 | 275 | 173 | 656 | 1,901 | ||||||||||||||
Total | $ | 177,850 | $ | 125,361 | $ | 29,406 | $ | 125,440 | $ | 458,057 |
(Dollars in thousands) | Real Estate— Residential Secured for Personal Purpose | Real Estate— Home Equity Secured for Personal Purpose | Loans to Individuals | Lease Financing | Total | ||||||||||||||
At June 30, 2016 | |||||||||||||||||||
Performing | $ | 3,085 | $ | 10,335 | $ | 306 | $ | — | $ | 13,726 | |||||||||
Nonperforming | — | — | — | — | — | ||||||||||||||
Total | $ | 3,085 | $ | 10,335 | $ | 306 | $ | — | $ | 13,726 | |||||||||
At December 31, 2015 | |||||||||||||||||||
Performing | $ | 3,305 | $ | 11,594 | $ | 326 | $ | — | $ | 15,225 | |||||||||
Nonperforming | — | — | — | — | — | ||||||||||||||
Total | $ | 3,305 | $ | 11,594 | $ | 326 | $ | — | $ | 15,225 |
(Dollars in thousands) | Commercial, Financial and Agricultural | Real Estate— Commercial and Construction | Real Estate— Residential Secured for Business Purpose | Real Estate— Residential and Home Equity Secured for Personal Purpose | Loans to Individuals | Lease Financings | Unallocated | Total | |||||||||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Reserve for loan and lease losses: | |||||||||||||||||||||||||||||||
Beginning balance | $ | 5,630 | $ | 6,471 | $ | 747 | $ | 1,312 | $ | 356 | $ | 922 | $ | 1,014 | $ | 16,452 | |||||||||||||||
Charge-offs | (346 | ) | (179 | ) | (27 | ) | (10 | ) | (108 | ) | (160 | ) | N/A | (830 | ) | ||||||||||||||||
Recoveries | 515 | 9 | 34 | 34 | 30 | 79 | N/A | 701 | |||||||||||||||||||||||
(Recovery of provision) provision | (11 | ) | 1,070 | (698 | ) | (34 | ) | 133 | 280 | (87 | ) | 653 | |||||||||||||||||||
Provision (recovery of provision) for acquired credit impaired loans | — | 178 | — | (1 | ) | — | — | — | 177 | ||||||||||||||||||||||
Ending balance | $ | 5,788 | $ | 7,549 | $ | 56 | $ | 1,301 | $ | 411 | $ | 1,121 | $ | 927 | $ | 17,153 | |||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||
Reserve for loan and lease losses: | |||||||||||||||||||||||||||||||
Beginning balance | $ | 6,712 | $ | 9,648 | $ | 668 | $ | 1,128 | $ | 365 | $ | 1,013 | $ | 1,400 | $ | 20,934 | |||||||||||||||
Charge-offs* | (1,038 | ) | (1,348 | ) | (24 | ) | (107 | ) | (64 | ) | (189 | ) | N/A | (2,770 | ) | ||||||||||||||||
Recoveries | 115 | 91 | 7 | — | 41 | 43 | N/A | 297 | |||||||||||||||||||||||
Provision (recovery of provision) | 1,058 | (590 | ) | (35 | ) | 167 | 47 | 258 | 236 | 1,141 | |||||||||||||||||||||
Ending balance | $ | 6,847 | $ | 7,801 | $ | 616 | $ | 1,188 | $ | 389 | $ | 1,125 | $ | 1,636 | $ | 19,602 | |||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Reserve for loan and lease losses: | |||||||||||||||||||||||||||||||
Beginning balance | $ | 6,418 | $ | 6,572 | $ | 763 | $ | 1,575 | $ | 346 | $ | 1,042 | $ | 912 | $ | 17,628 | |||||||||||||||
Charge-offs | (1,827 | ) | (205 | ) | (265 | ) | (56 | ) | (184 | ) | (365 | ) | N/A | (2,902 | ) | ||||||||||||||||
Recoveries | 965 | 16 | 53 | 51 | 63 | 123 | N/A | 1,271 | |||||||||||||||||||||||
Provision (recovery of provision) | 232 | 988 | (495 | ) | (267 | ) | 186 | 321 | 15 | 980 | |||||||||||||||||||||
Provision (recovery of provision) for acquired credit impaired loans | — | 178 | — | (2 | ) | — | — | — | 176 | ||||||||||||||||||||||
Ending balance | $ | 5,788 | $ | 7,549 | $ | 56 | $ | 1,301 | $ | 411 | $ | 1,121 | $ | 927 | $ | 17,153 | |||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||
Reserve for loan and lease losses: | |||||||||||||||||||||||||||||||
Beginning balance | $ | 6,920 | $ | 8,943 | $ | 763 | $ | 1,124 | $ | 360 | $ | 985 | $ | 1,567 | $ | 20,662 | |||||||||||||||
Charge-offs* | (1,338 | ) | (1,696 | ) | (24 | ) | (138 | ) | (248 | ) | (419 | ) | N/A | (3,863 | ) | ||||||||||||||||
Recoveries | 225 | 156 | 13 | 1 | 89 | 104 | N/A | 588 | |||||||||||||||||||||||
Provision (recovery of provision) | 1,040 | 398 | (136 | ) | 201 | 188 | 455 | 69 | 2,215 | ||||||||||||||||||||||
Ending balance | $ | 6,847 | $ | 7,801 | $ | 616 | $ | 1,188 | $ | 389 | $ | 1,125 | $ | 1,636 | $ | 19,602 |
(Dollars in thousands) | Commercial, Financial and Agricultural | Real Estate— Commercial and Construction | Real Estate— Residential Secured for Business Purpose | Real Estate— Residential and Home Equity Secured for Personal Purpose | Loans to Individuals | Lease Financings | Unallocated | Total | |||||||||||||||||||||||
At June 30, 2016 | |||||||||||||||||||||||||||||||
Reserve for loan and lease losses: | |||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 390 | $ | 4 | $ | 16 | $ | — | $ | — | $ | — | N/A | $ | 410 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | 5,398 | 7,545 | 40 | 1,301 | 411 | 1,121 | 927 | 16,743 | |||||||||||||||||||||||
Total ending balance | $ | 5,788 | $ | 7,549 | $ | 56 | $ | 1,301 | $ | 411 | $ | 1,121 | $ | 927 | $ | 17,153 | |||||||||||||||
Loans and leases held for investment: | |||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 12,472 | $ | 26,761 | $ | 3,772 | $ | 1,029 | $ | — | $ | — | $ | 44,034 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | 546,892 | 885,131 | 118,601 | 333,887 | 30,880 | 128,796 | 2,044,187 | ||||||||||||||||||||||||
Acquired non-credit impaired loans | 20,096 | 114,965 | 107,087 | 13,420 | 306 | — | 255,874 | ||||||||||||||||||||||||
Acquired credit impaired loans | — | 180 | 762 | — | — | — | 942 | ||||||||||||||||||||||||
Total ending balance | $ | 579,460 | $ | 1,027,037 | $ | 230,222 | $ | 348,336 | $ | 31,186 | $ | 128,796 | $ | 2,345,037 | |||||||||||||||||
At June 30, 2015 | |||||||||||||||||||||||||||||||
Reserve for loan and lease losses: | |||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 444 | $ | — | $ | — | $ | — | $ | — | $ | — | N/A | $ | 444 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | 6,403 | 7,801 | 616 | 1,188 | 389 | 1,125 | 1,636 | 19,158 | |||||||||||||||||||||||
Total ending balance | $ | 6,847 | $ | 7,801 | $ | 616 | $ | 1,188 | $ | 389 | $ | 1,125 | $ | 1,636 | $ | 19,602 | |||||||||||||||
Loans and leases held for investment: | |||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 15,409 | $ | 18,956 | $ | 3,633 | $ | 949 | $ | — | $ | — | $ | 38,947 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | 469,367 | 758,024 | 48,290 | 288,263 | 28,070 | 120,597 | 1,712,611 | ||||||||||||||||||||||||
Acquired non-credit impaired loans | 26,880 | 175,583 | 135,480 | 16,135 | 345 | — | 354,423 | ||||||||||||||||||||||||
Acquired credit impaired loans | 304 | 1,021 | 491 | 60 | — | — | 1,876 | ||||||||||||||||||||||||
Total ending balance | $ | 511,960 | $ | 953,584 | $ | 187,894 | $ | 305,407 | $ | 28,415 | $ | 120,597 | $ | 2,107,857 |
At June 30, 2016 | At December 31, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Commercial, financial and agricultural | $ | 11,439 | $ | 13,260 | $ | 10,337 | $ | 13,318 | |||||||||||||||
Real estate—commercial real estate | 26,497 | 27,395 | 30,088 | 30,996 | |||||||||||||||||||
Real estate—residential secured for business purpose | 3,612 | 3,903 | 4,597 | 4,717 | |||||||||||||||||||
Real estate—residential secured for personal purpose | 409 | 434 | 545 | 554 | |||||||||||||||||||
Real estate—home equity secured for personal purpose | 620 | 620 | 170 | 170 | |||||||||||||||||||
Total impaired loans with no allowance recorded | $ | 42,577 | $ | 45,612 | $ | 45,737 | $ | 49,755 | |||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Commercial, financial and agricultural | $ | 1,033 | $ | 1,033 | $ | 390 | $ | 2,544 | $ | 2,544 | $ | 208 | |||||||||||
Real estate—commercial real estate | 264 | 264 | 4 | — | — | — | |||||||||||||||||
Real estate—residential secured for business purpose | 160 | 165 | 16 | 295 | 295 | 45 | |||||||||||||||||
Real estate—residential secured for personal purpose | — | — | — | 252 | 252 | 16 | |||||||||||||||||
Real estate—home equity secured for personal purpose | — | — | — | 105 | 105 | 53 | |||||||||||||||||
Total impaired loans with an allowance recorded | $ | 1,457 | $ | 1,462 | $ | 410 | $ | 3,196 | $ | 3,196 | $ | 322 |
At June 30, 2016 | At December 31, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||||||||
Total impaired loans: | |||||||||||||||||||||||
Commercial, financial and agricultural | $ | 12,472 | $ | 14,293 | $ | 390 | $ | 12,881 | $ | 15,862 | $ | 208 | |||||||||||
Real estate—commercial real estate | 26,761 | 27,659 | 4 | 30,088 | 30,996 | — | |||||||||||||||||
Real estate—residential secured for business purpose | 3,772 | 4,068 | 16 | 4,892 | 5,012 | 45 | |||||||||||||||||
Real estate—residential secured for personal purpose | 409 | 434 | — | 797 | 806 | 16 | |||||||||||||||||
Real estate—home equity secured for personal purpose | 620 | 620 | — | 275 | 275 | 53 | |||||||||||||||||
Total impaired loans | $ | 44,034 | $ | 47,074 | $ | 410 | $ | 48,933 | $ | 52,951 | $ | 322 |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized* | Additional Interest Income That Would Have Been Recognized Under Original Terms | Average Recorded Investment | Interest Income Recognized* | Additional Interest Income That Would Have Been Recognized Under Original Terms | |||||||||||||||||
Loans held for sale | $ | — | $ | — | $ | — | $ | 83 | $ | — | $ | 1 | |||||||||||
Loans held for investment: | |||||||||||||||||||||||
Commercial, financial and agricultural | 13,387 | 74 | 78 | 15,669 | 116 | 99 | |||||||||||||||||
Real estate—commercial real estate | 27,691 | 281 | 58 | 26,093 | 306 | 82 | |||||||||||||||||
Real estate—construction | — | — | — | 5,621 | — | 76 | |||||||||||||||||
Real estate—residential secured for business purpose | 3,740 | 9 | 60 | 3,385 | 39 | 38 | |||||||||||||||||
Real estate—residential secured for personal purpose | 392 | — | 5 | 796 | — | 11 | |||||||||||||||||
Real estate—home equity secured for personal purpose | 431 | — | 9 | 175 | — | 3 | |||||||||||||||||
Total | $ | 45,641 | $ | 364 | $ | 210 | $ | 51,822 | $ | 461 | $ | 310 |
* | Includes interest income recognized on a cash basis for nonaccrual loans of $0 thousand and $18 thousand for the three months ended June 30, 2016 and 2015, respectively and interest income recognized on the accrual method for accruing impaired loans of $364 thousand and $443 thousand for the three months ended June 30, 2016 and 2015, respectively. |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized* | Additional Interest Income That Would Have Been Recognized Under Original Terms | Average Recorded Investment | Interest Income Recognized* | Additional Interest Income That Would Have Been Recognized Under Original Terms | |||||||||||||||||
Loans held for sale | $ | — | $ | — | $ | — | $ | 47 | $ | — | $ | 1 | |||||||||||
Loans held for investment: | |||||||||||||||||||||||
Commercial, financial and agricultural | 13,421 | 142 | 173 | 15,990 | 258 | 186 | |||||||||||||||||
Real estate—commercial real estate | 28,389 | 586 | 128 | 27,450 | 626 | 165 | |||||||||||||||||
Real estate—construction | — | — | — | 5,688 | — | 153 | |||||||||||||||||
Real estate—residential secured for business purpose | 4,120 | 36 | 107 | 3,291 | 68 | 54 | |||||||||||||||||
Real estate—residential secured for personal purpose | 496 | 2 | 9 | 674 | — | 24 | |||||||||||||||||
Real estate—home equity secured for personal purpose | 329 | — | 11 | 179 | — | 6 | |||||||||||||||||
Total | $ | 46,755 | $ | 766 | $ | 428 | $ | 53,319 | $ | 952 | $ | 589 |
* | Includes interest income recognized on a cash basis for nonaccrual loans of $7 thousand and $22 thousand for the six months ended June 30, 2016 and 2015, respectively and interest income recognized on the accrual method for accruing impaired loans of $759 thousand and $930 thousand for the six months ended June 30, 2016 and 2015, respectively. |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Pre- Restructuring Outstanding Recorded Investment | Post- Restructuring Outstanding Recorded Investment | Related Allowance | Number of Loans | Pre- Restructuring Outstanding Recorded Investment | Post- Restructuring Outstanding Recorded Investment | Related Allowance | |||||||||||||||||||||
Accruing Troubled Debt Restructured Loans: | |||||||||||||||||||||||||||||
Commercial, financial and agricultural | — | $ | — | $ | — | $ | — | 2 | $ | 947 | $ | 947 | $ | — | |||||||||||||||
Real estate—commercial real estate | — | — | — | — | 1 | 405 | 405 | — | |||||||||||||||||||||
Real estate—residential secured for business purpose | 1 | 415 | 415 | — | — | — | — | — | |||||||||||||||||||||
Total | 1 | $ | 415 | $ | 415 | $ | — | 3 | $ | 1,352 | $ | 1,352 | $ | — | |||||||||||||||
Nonaccrual Troubled Debt Restructured Loans: | |||||||||||||||||||||||||||||
Total | — | $ | — | $ | — | $ | — | — | $ | — | $ | — | $ | — |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Pre- Restructuring Outstanding Recorded Investment | Post- Restructuring Outstanding Recorded Investment | Related Allowance | Number of Loans | Pre- Restructuring Outstanding Recorded Investment | Post- Restructuring Outstanding Recorded Investment | Related Allowance | |||||||||||||||||||||
Accruing Troubled Debt Restructured Loans: | |||||||||||||||||||||||||||||
Commercial, financial and agricultural | 1 | $ | 1,545 | $ | 1,545 | $ | — | 3 | $ | 1,090 | $ | 1,090 | $ | 71 | |||||||||||||||
Real estate—commercial real estate | — | — | — | — | 1 | 405 | 405 | — | |||||||||||||||||||||
Real estate—residential secured for business purpose | 1 | 415 | 415 | — | 1 | 353 | 353 | — | |||||||||||||||||||||
Total | 2 | $ | 1,960 | $ | 1,960 | $ | — | 5 | $ | 1,848 | $ | 1,848 | $ | 71 | |||||||||||||||
Nonaccrual Troubled Debt Restructured Loans: | |||||||||||||||||||||||||||||
Commercial, financial and agricultural | — | $ | — | $ | — | $ | — | 1 | $ | 122 | $ | 122 | $ | 42 | |||||||||||||||
Total | — | $ | — | $ | — | $ | — | 1 | $ | 122 | $ | 122 | $ | 42 |
Interest Only Term Extension | Temporary Payment Reduction | Maturity Date Extension | Amortization Period Extension | Total Concessions Granted | ||||||||||||||||||||||||||||||
(Dollars in thousands) | No. of Loans | Amount | No. of Loans | Amount | No. of Loans | Amount | No. of Loans | Amount | No. of Loans | Amount | ||||||||||||||||||||||||
Three Months Ended June 30, 2016 | ||||||||||||||||||||||||||||||||||
Accruing Troubled Debt Restructured Loans: | ||||||||||||||||||||||||||||||||||
Real estate—residential secured for business purpose | 1 | $ | 415 | — | $ | — | — | $ | — | — | $ | — | 1 | $ | 415 | |||||||||||||||||||
Total | 1 | $ | 415 | — | $ | — | — | $ | — | — | $ | — | 1 | $ | 415 | |||||||||||||||||||
Nonaccrual Troubled Debt Restructured Loans: | ||||||||||||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||||||
Three Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||||||
Accruing Troubled Debt Restructured Loans: | ||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | — | $ | — | — | $ | — | 1 | $ | 500 | 1 | $ | 447 | 2 | $ | 947 | |||||||||||||||||||
Real estate—commercial real estate | — | — | — | — | — | — | 1 | 405 | 1 | 405 | ||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | 1 | $ | 500 | 2 | $ | 852 | 3 | $ | 1,352 | |||||||||||||||||||
Nonaccrual Troubled Debt Restructured Loans: | ||||||||||||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||||||
Six Months Ended June 30, 2016 | ||||||||||||||||||||||||||||||||||
Accruing Troubled Debt Restructured Loans: | ||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | — | $ | — | — | $ | — | — | $ | — | 1 | $ | 1,545 | 1 | $ | 1,545 | |||||||||||||||||||
Real estate—residential secured for business purpose | 1 | 415 | — | — | — | — | — | — | 1 | 415 | ||||||||||||||||||||||||
Total | 1 | $ | 415 | — | $ | — | — | $ | — | 1 | $ | 1,545 | 2 | $ | 1,960 | |||||||||||||||||||
Nonaccrual Troubled Debt Restructured Loans: | ||||||||||||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||||||
Six Months Ended June 30, 2015 | ||||||||||||||||||||||||||||||||||
Accruing Troubled Debt Restructured Loans: | ||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | — | $ | — | 1 | $ | 143 | 1 | $ | 500 | 1 | $ | 447 | 3 | $ | 1,090 | |||||||||||||||||||
Real estate—commercial real estate | — | — | — | — | — | — | 1 | 405 | 1 | 405 | ||||||||||||||||||||||||
Real estate—residential secured for business purpose | — | — | 1 | 353 | — | — | — | — | 1 | 353 | ||||||||||||||||||||||||
Total | — | $ | — | 2 | $ | 496 | 1 | $ | 500 | 2 | $ | 852 | 5 | $ | 1,848 | |||||||||||||||||||
Nonaccrual Troubled Debt Restructured Loans: | ||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | — | $ | — | 1 | $ | 122 | — | $ | — | — | $ | — | 1 | $ | 122 | |||||||||||||||||||
Total | — | $ | — | 1 | $ | 122 | — | $ | — | — | $ | — | 1 | $ | 122 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||||||||
Accruing Troubled Debt Restructured Loans: | |||||||||||||||||||||||||||
Total | — | $ | — | — | $ | — | — | $ | — | — | $ | — | |||||||||||||||
Nonaccrual Troubled Debt Restructured Loans: | |||||||||||||||||||||||||||
Commercial, financial and agricultural | — | $ | — | — | $ | — | 1 | $ | 50 | 2 | $ | 200 | |||||||||||||||
Total | — | $ | — | — | $ | — | 1 | $ | 50 | 2 | $ | 200 |
(Dollars in thousands) | At June 30, 2016 | At December 31, 2015 | |||||
Real estate-residential secured for personal purpose | $ | 277 | $ | 313 | |||
Real estate-home equity secured for personal purpose | 60 | 60 | |||||
Total | $ | 337 | $ | 373 |
(Dollars in thousands) | Banking | Wealth Management | Insurance | Consolidated | |||||||||||
Balance at December 31, 2015 | $ | 78,574 | $ | 15,434 | $ | 18,649 | $ | 112,657 | |||||||
Addition to goodwill from acquisitions | — | — | — | — | |||||||||||
Balance at June 30, 2016 | $ | 78,574 | $ | 15,434 | $ | 18,649 | $ | 112,657 |
At June 30, 2016 | At December 31, 2015 | ||||||||||||||||||||||
(Dollars in thousands) | Gross Carrying Amount | Accumulated Amortization and Fair Value Adjustments | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization and Fair Value Adjustments | Net Carrying Amount | |||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||
Core deposit intangibles | $ | 1,520 | $ | 401 | $ | 1,119 | $ | 1,520 | $ | 276 | $ | 1,244 | |||||||||||
Customer related intangibles | 12,381 | 7,719 | 4,662 | 14,227 | 8,728 | 5,499 | |||||||||||||||||
Mortgage servicing rights | 13,010 | 7,114 | 5,896 | 12,233 | 6,356 | 5,877 | |||||||||||||||||
Total amortized intangible assets | $ | 26,911 | $ | 15,234 | $ | 11,677 | $ | 27,980 | $ | 15,360 | $ | 12,620 |
Year | (Dollars in thousands) | Amount | ||
Remainder of 2016 | $ | 909 | ||
2017 | 1,544 | |||
2018 | 1,170 | |||
2019 | 847 | |||
2020 | 577 | |||
Thereafter | 734 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Beginning of period | $ | 5,839 | $ | 5,523 | $ | 5,877 | $ | 5,509 | |||||||
Servicing rights capitalized | 466 | 499 | 777 | 881 | |||||||||||
Amortization of servicing rights | (409 | ) | (326 | ) | (758 | ) | (694 | ) | |||||||
Changes in valuation allowance | — | — | — | — | |||||||||||
End of period | $ | 5,896 | $ | 5,696 | $ | 5,896 | $ | 5,696 | |||||||
Mortgage loans serviced for others | $ | 889,639 | $ | 832,318 | $ | 889,639 | $ | 832,318 |
Year | (Dollars in thousands) | Amount | ||
Remainder of 2016 | $ | 559 | ||
2017 | 1,024 | |||
2018 | 846 | |||
2019 | 690 | |||
2020 | 560 | |||
Thereafter | 2,217 |
Three Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Dollars in thousands) | Retirement Plans | Other Post Retirement Benefits | |||||||||||||
Service cost | $ | 170 | $ | 193 | $ | 11 | $ | 14 | |||||||
Interest cost | 519 | 488 | 33 | 27 | |||||||||||
Expected return on plan assets | (753 | ) | (756 | ) | — | — | |||||||||
Amortization of net actuarial loss | 322 | 326 | 7 | 14 | |||||||||||
Accretion of prior service cost | (70 | ) | (70 | ) | — | — | |||||||||
Net periodic benefit cost | $ | 188 | $ | 181 | $ | 51 | $ | 55 |
Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(Dollars in thousands) | Retirement Plans | Other Post Retirement Benefits | |||||||||||||
Service cost | $ | 341 | $ | 386 | $ | 23 | $ | 29 | |||||||
Interest cost | 1,037 | 976 | 66 | 55 | |||||||||||
Expected return on plan assets | (1,507 | ) | (1,512 | ) | — | — | |||||||||
Amortization of net actuarial loss | 645 | 654 | 13 | 27 | |||||||||||
Accretion of prior service cost | (141 | ) | (140 | ) | — | — | |||||||||
Net periodic benefit cost (income) | $ | 375 | $ | 364 | $ | 102 | $ | 111 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(Dollars and shares in thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Numerator: | |||||||||||||||
Net income | $ | 5,240 | $ | 6,466 | $ | 12,529 | $ | 12,582 | |||||||
Net income allocated to unvested restricted stock | (40 | ) | (49 | ) | (98 | ) | (93 | ) | |||||||
Net income allocated to common shares | $ | 5,200 | $ | 6,417 | $ | 12,431 | $ | 12,489 | |||||||
Denominator: | |||||||||||||||
Denominator for basic earnings per share—weighted-average shares outstanding | 19,434 | 19,501 | 19,418 | 19,638 | |||||||||||
Effect of dilutive securities—employee stock options | 35 | 29 | 33 | 26 | |||||||||||
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding | 19,469 | 19,530 | 19,451 | 19,664 | |||||||||||
Basic earnings per share | $ | 0.27 | $ | 0.33 | $ | 0.64 | $ | 0.64 | |||||||
Diluted earnings per share | $ | 0.27 | $ | 0.33 | $ | 0.64 | $ | 0.64 | |||||||
Average anti-dilutive options and awards excluded from computation of diluted earnings per share | 619 | 567 | 603 | 555 |
(Dollars in thousands) | Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities | Net Change Related to Derivatives Used for Cash Flow Hedges | Net Change Related to Defined Benefit Pension Plans | Accumulated Other Comprehensive (Loss) Income | |||||||||||
Balance, December 31, 2015 | $ | (592 | ) | $ | (285 | ) | $ | (15,831 | ) | $ | (16,708 | ) | |||
Net Change | 2,499 | (497 | ) | 336 | 2,338 | ||||||||||
Balance, June 30, 2016 | $ | 1,907 | $ | (782 | ) | $ | (15,495 | ) | $ | (14,370 | ) | ||||
Balance, December 31, 2014 | $ | 1,711 | $ | (157 | ) | $ | (16,016 | ) | $ | (14,462 | ) | ||||
Net Change | (1,085 | ) | 26 | 351 | (708 | ) | |||||||||
Balance, June 30, 2015 | $ | 626 | $ | (131 | ) | $ | (15,665 | ) | $ | (15,170 | ) |
Details about Accumulated Other Comprehensive (Loss) Income Components | Amount Reclassified from Accumulated Other Comprehensive (Loss) Income | Affected Line Item in the Statement of Income | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||||
Net unrealized holding gains on available-for-sale investment securities: | ||||||||||||||||||
$ | 413 | $ | 181 | $ | 457 | $ | 272 | Net gain on sales of investment securities | ||||||||||
413 | 181 | 457 | 272 | Total before tax | ||||||||||||||
(145 | ) | (63 | ) | (160 | ) | (95 | ) | Tax expense | ||||||||||
$ | 268 | $ | 118 | $ | 297 | $ | 177 | Net of tax | ||||||||||
Defined benefit pension plans: | ||||||||||||||||||
Amortization of net loss included in net periodic pension costs* | $ | (329 | ) | $ | (340 | ) | $ | (658 | ) | $ | (681 | ) | ||||||
Accretion of prior service cost included in net periodic pension costs* | 70 | 70 | 141 | 140 | ||||||||||||||
(259 | ) | (270 | ) | (517 | ) | (541 | ) | Total before tax | ||||||||||
91 | 94 | 181 | 190 | Tax benefit | ||||||||||||||
$ | (168 | ) | $ | (176 | ) | $ | (336 | ) | $ | (351 | ) | Net of tax |
* | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 7—Retirement Plans and Other Postretirement Benefits for additional details.) |
Derivative Assets | Derivative Liabilities | ||||||||||||||
(Dollars in thousands) | Notional Amount | Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||
At June 30, 2016 | |||||||||||||||
Interest rate locks with customers | $ | 57,601 | Other Assets | $ | 2,432 | $ | — | ||||||||
Forward loan sale commitments | 62,783 | — | Other Liabilities | 510 | |||||||||||
Total | $ | 120,384 | $ | 2,432 | $ | 510 | |||||||||
At December 31, 2015 | |||||||||||||||
Interest rate locks with customers | $ | 34,450 | Other Assets | $ | 1,089 | $ | — | ||||||||
Forward loan sale commitments | 39,545 | — | Other Liabilities | 102 | |||||||||||
Total | $ | 73,995 | $ | 1,089 | $ | 102 |
Derivative Assets | Derivative Liabilities | ||||||||||||||
(Dollars in thousands) | Notional Amount | Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||
At June 30, 2016 | |||||||||||||||
Interest rate swap - cash flow hedge | $ | 18,921 | $ | — | Other Liabilities | $ | 1,203 | ||||||||
Total | $ | 18,921 | $ | — | $ | 1,203 | |||||||||
At December 31, 2015 | |||||||||||||||
Interest rate swap - cash flow hedge | $ | 19,269 | $ | — | Other Liabilities | $ | 438 | ||||||||
Total | $ | 19,269 | $ | — | $ | 438 |
Statement of Income Classification | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Interest rate locks with customers | Net gain (loss) on mortgage banking activities | $ | 711 | $ | (312 | ) | $ | 1,343 | $ | 137 | |||||||
Forward loan sale commitments | Net gain (loss) on mortgage banking activities | (267 | ) | 305 | (408 | ) | 249 | ||||||||||
Total | $ | 444 | $ | (7 | ) | $ | 935 | $ | 386 |
Statement of Income Classification | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Interest rate swap—cash flow hedge—net interest payments | Interest expense | $ | 80 | $ | 95 | $ | 161 | 191 | |||||||||
Net loss | $ | (80 | ) | $ | (95 | ) | $ | (161 | ) | $ | (191 | ) |
(Dollars in thousands) | Accumulated Other Comprehensive (Loss) Income | At June 30, 2016 | At December 31, 2015 | ||||||
Interest rate swap—cash flow hedge | Fair value, net of taxes | $ | (782 | ) | $ | (285 | ) | ||
Total | $ | (782 | ) | $ | (285 | ) |
At June 30, 2016 | |||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Assets/ Liabilities at Fair Value | |||||||||||
Assets: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
U.S. government corporations and agencies | $ | — | $ | 47,446 | $ | — | $ | 47,446 | |||||||
State and political subdivisions | — | 98,867 | — | 98,867 | |||||||||||
Residential mortgage-backed securities | — | 3,635 | — | 3,635 | |||||||||||
Collateralized mortgage obligations | — | 2,928 | — | 2,928 | |||||||||||
Corporate bonds | — | 93,445 | — | 93,445 | |||||||||||
Money market mutual funds | 7,009 | — | — | 7,009 | |||||||||||
Equity securities | 765 | — | — | 765 | |||||||||||
Total available-for-sale securities | 7,774 | 246,321 | — | 254,095 | |||||||||||
Interest rate locks with customers | — | 2,432 | — | 2,432 | |||||||||||
Total assets | $ | 7,774 | $ | 248,753 | $ | — | $ | 256,527 | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 5,213 | $ | 5,213 | |||||||
Interest rate swap | — | 1,203 | — | 1,203 | |||||||||||
Forward loan sale commitments | — | 510 | — | 510 | |||||||||||
Total liabilities | $ | — | $ | 1,713 | $ | 5,213 | $ | 6,926 |
At December 31, 2015 | |||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Assets/ Liabilities at Fair Value | |||||||||||
Assets: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
U.S. treasuries | $ | 4,887 | $ | — | $ | — | $ | 4,887 | |||||||
U.S. government corporations and agencies | — | 102,156 | — | 102,156 | |||||||||||
State and political subdivisions | — | 102,032 | — | 102,032 | |||||||||||
Residential mortgage-backed securities | — | 13,354 | — | 13,354 | |||||||||||
Collateralized mortgage obligations | — | 3,133 | — | 3,133 | |||||||||||
Corporate bonds | — | 86,675 | — | 86,675 | |||||||||||
Money market mutual funds | 16,726 | — | — | 16,726 | |||||||||||
Equity securities | 807 | — | — | 807 | |||||||||||
Total available-for-sale securities | 22,420 | 307,350 | — | 329,770 | |||||||||||
Interest rate locks with customers | — | 1,089 | — | 1,089 | |||||||||||
Forward loan sale commitments | — | — | — | — | |||||||||||
Total assets | $ | 22,420 | $ | 308,439 | $ | — | $ | 330,859 | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liability | $ | — | $ | — | $ | 5,577 | $ | 5,577 | |||||||
Interest rate swap | — | 438 | — | 438 | |||||||||||
Forward loan sale commitments | — | 102 | — | 102 | |||||||||||
Total liabilities | $ | — | $ | 540 | $ | 5,577 | $ | 6,117 |
Six Months Ended June 30, 2016 | |||||||||||||||||||
(Dollars in thousands) | Balance at December 31, 2015 | Contingent Consideration from New Acquisition | Payment of Contingent Consideration | Adjustment of Contingent Consideration | Balance at June 30, 2016 | ||||||||||||||
Sterner Insurance Associates | $ | 1,144 | $ | — | $ | — | $ | 490 | $ | 1,634 | |||||||||
Girard Partners | 4,241 | — | 900 | 238 | 3,579 | ||||||||||||||
John T. Fretz Insurance Agency | 192 | — | 260 | 68 | — | ||||||||||||||
Total contingent consideration liability | $ | 5,577 | $ | — | $ | 1,160 | $ | 796 | $ | 5,213 |
Six Months Ended June 30, 2015 | |||||||||||||||||||
(Dollars in thousands) | Balance at December 31, 2014 | Contingent Consideration from New Acquisition* | Payment of Contingent Consideration | Adjustment of Contingent Consideration | Balance at June 30, 2015 | ||||||||||||||
Sterner Insurance Associates | $ | 680 | $ | 1,525 | $ | — | $ | 402 | $ | 2,607 | |||||||||
Girard Partners | 5,503 | $ | — | $ | 620 | $ | (112 | ) | 4,771 | ||||||||||
John T. Fretz Insurance Agency | 358 | — | 260 | 80 | 178 | ||||||||||||||
Total contingent consideration liability | $ | 6,541 | $ | 1,525 | $ | 880 | $ | 370 | $ | 7,556 |
At June 30, 2016 | |||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Assets/Liabilities at Fair Value | |||||||||||
Impaired loans held for investment | $ | — | $ | — | $ | 43,624 | $ | 43,624 | |||||||
Total | $ | — | $ | — | $ | 43,624 | $ | 43,624 |
At December 31, 2015 | |||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Assets/Liabilities at Fair Value | |||||||||||
Impaired loans held for investment | $ | — | $ | — | $ | 48,611 | $ | 48,611 | |||||||
Total | $ | — | $ | — | $ | 48,611 | $ | 48,611 |
At June 30, 2016 | |||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Fair Value | Carrying Amount | ||||||||||||||
Assets: | |||||||||||||||||||
Cash and short-term interest-earning assets | $ | 93,190 | $ | — | $ | — | $ | 93,190 | $ | 93,190 | |||||||||
Held-to-maturity securities | — | 32,946 | — | 32,946 | 32,885 | ||||||||||||||
Loans held for sale | — | 4,766 | — | 4,766 | 4,657 | ||||||||||||||
Net loans and leases held for investment | — | — | 2,255,667 | 2,255,667 | 2,284,260 | ||||||||||||||
Mortgage servicing rights | — | — | 6,785 | 6,785 | 5,896 | ||||||||||||||
Other real estate owned | — | 3,131 | — | 3,131 | 3,131 | ||||||||||||||
Total assets | $ | 93,190 | $ | 40,843 | $ | 2,262,452 | $ | 2,396,485 | $ | 2,424,019 | |||||||||
Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand and savings deposits, non-maturity | $ | 2,016,892 | $ | — | $ | — | $ | 2,016,892 | $ | 2,016,892 | |||||||||
Time deposits | — | 361,256 | — | 361,256 | 360,192 | ||||||||||||||
Total deposits | 2,016,892 | 361,256 | — | 2,378,148 | 2,377,084 | ||||||||||||||
Short-term borrowings | — | 259,971 | — | 259,971 | 260,216 | ||||||||||||||
Subordinated notes | — | 50,250 | — | 50,250 | 49,450 | ||||||||||||||
Total liabilities | $ | 2,016,892 | $ | 671,477 | $ | — | $ | 2,688,369 | $ | 2,686,750 | |||||||||
Off-Balance-Sheet: | |||||||||||||||||||
Commitments to extend credit | $ | — | $ | (1,874 | ) | $ | — | $ | (1,874 | ) | $ | — |
At December 31, 2015 | |||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Fair Value | Carrying Amount | ||||||||||||||
Assets: | |||||||||||||||||||
Cash and short-term interest-earning assets | $ | 60,799 | $ | — | $ | — | $ | 60,799 | $ | 60,799 | |||||||||
Held-to-maturity securities | — | 41,061 | — | 41,061 | 40,990 | ||||||||||||||
Loans held for sale | — | 4,708 | — | 4,708 | 4,680 | ||||||||||||||
Net loans and leases held for investment | — | — | 2,099,082 | 2,099,082 | 2,112,774 | ||||||||||||||
Mortgage servicing rights | — | — | 8,047 | 8,047 | 5,877 | ||||||||||||||
Other real estate owned | — | 1,276 | — | 1,276 | 1,276 | ||||||||||||||
Total assets | $ | 60,799 | $ | 47,045 | $ | 2,107,129 | $ | 2,214,973 | $ | 2,226,396 | |||||||||
Liabilities: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand and savings deposits, non-maturity | $ | 1,939,954 | $ | — | $ | — | $ | 1,939,954 | $ | 1,939,954 | |||||||||
Time deposits | — | 455,527 | — | 455,527 | 454,406 | ||||||||||||||
Total deposits | 1,939,954 | 455,527 | — | 2,395,481 | 2,394,360 | ||||||||||||||
Short-term borrowings | — | 22,302 | — | 22,302 | 24,211 | ||||||||||||||
Subordinated notes | $ | — | $ | 50,375 | $ | — | $ | 50,375 | $ | 49,377 | |||||||||
Total liabilities | $ | 1,939,954 | $ | 528,204 | $ | — | $ | 2,468,158 | $ | 2,467,948 | |||||||||
Off-Balance-Sheet: | |||||||||||||||||||
Commitments to extend credit | $ | — | $ | (1,788 | ) | $ | — | $ | (1,788 | ) | $ | — |
| The Banking segment provides financial services to consumers, businesses and governmental units. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. |
| The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions. |
| The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting. |
(Dollars in thousands) | At June 30, 2016 | At December 31, 2015 | At June 30, 2015 | ||||||||
Banking | $ | 2,925,285 | $ | 2,797,746 | $ | 2,701,275 | |||||
Wealth Management | 31,392 | 33,950 | 31,605 | ||||||||
Insurance | 25,309 | 24,436 | 25,389 | ||||||||
Other | 125,631 | 23,319 | 22,309 | ||||||||
Consolidated assets | $ | 3,107,617 | $ | 2,879,451 | $ | 2,780,578 |
Three Months Ended | |||||||||||||||||||
June 30, 2016 | |||||||||||||||||||
(Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||
Interest income | $ | 25,986 | $ | 1 | $ | — | $ | 7 | $ | 25,994 | |||||||||
Interest expense | 2,163 | — | — | 288 | 2,451 | ||||||||||||||
Net interest income | 23,823 | 1 | — | (281 | ) | 23,543 | |||||||||||||
Provision for loan and lease losses | 830 | — | — | — | 830 | ||||||||||||||
Noninterest income | 5,610 | 4,812 | 3,620 | 77 | 14,119 | ||||||||||||||
Intangible expenses | 66 | 304 | 626 | — | 996 | ||||||||||||||
Other noninterest expense | 19,733 | 3,247 | 2,937 | 2,633 | 28,550 | ||||||||||||||
Intersegment (revenue) expense* | (479 | ) | 211 | 268 | — | — | |||||||||||||
Income (expense) before income taxes | 9,283 | 1,051 | (211 | ) | (2,837 | ) | 7,286 | ||||||||||||
Income tax expense (benefit) | 2,291 | 395 | (81 | ) | (559 | ) | 2,046 | ||||||||||||
Net income (loss) | $ | 6,992 | $ | 656 | $ | (130 | ) | $ | (2,278 | ) | $ | 5,240 | |||||||
Capital expenditures | $ | 1,481 | $ | 9 | $ | 11 | $ | 515 | $ | 2,016 |
Three Months Ended | |||||||||||||||||||
June 30, 2015 | |||||||||||||||||||
(Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||
Interest income | $ | 25,505 | $ | — | $ | — | $ | 8 | $ | 25,513 | |||||||||
Interest expense | 2,133 | — | — | — | 2,133 | ||||||||||||||
Net interest income | 23,372 | — | — | 8 | 23,380 | ||||||||||||||
Provision for loan and lease losses | 1,141 | — | — | — | 1,141 | ||||||||||||||
Noninterest income | 4,858 | 4,964 | 3,538 | (9 | ) | 13,351 | |||||||||||||
Intangible expenses | 73 | 85 | 735 | — | 893 | ||||||||||||||
Other noninterest expense | 20,499 | 3,059 | 2,683 | (302 | ) | 25,939 | |||||||||||||
Intersegment (revenue) expense* | (495 | ) | 195 | 300 | — | — | |||||||||||||
Income (expense) before income taxes | 7,012 | 1,625 | (180 | ) | 301 | 8,758 | |||||||||||||
Income tax expense (benefit) | 1,814 | 623 | (72 | ) | (73 | ) | 2,292 | ||||||||||||
Net income (loss) | $ | 5,198 | $ | 1,002 | $ | (108 | ) | $ | 374 | $ | 6,466 | ||||||||
Capital expenditures | $ | 1,321 | $ | — | $ | 8 | $ | 5 | $ | 1,334 |
Six Months Ended | |||||||||||||||||||
June 30, 2016 | |||||||||||||||||||
(Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||
Interest income | $ | 51,586 | $ | 3 | $ | — | $ | 14 | $ | 51,603 | |||||||||
Interest expense | 4,374 | — | — | 288 | 4,662 | ||||||||||||||
Net interest income | 47,212 | 3 | — | (274 | ) | 46,941 | |||||||||||||
Provision for loan and lease losses | 1,156 | — | — | — | 1,156 | ||||||||||||||
Noninterest income | 10,283 | 9,384 | 8,340 | 68 | 28,075 | ||||||||||||||
Intangible expenses | 133 | 607 | 1,026 | — | 1,766 | ||||||||||||||
Other noninterest expense | 38,475 | 6,305 | 6,056 | 3,883 | 54,719 | ||||||||||||||
Intersegment (revenue) expense* | (990 | ) | 430 | 560 | — | — | |||||||||||||
Income (expense) before income taxes | 18,721 | 2,045 | 698 | (4,089 | ) | 17,375 | |||||||||||||
Income tax expense (benefit) | 4,648 | 778 | 296 | (876 | ) | 4,846 | |||||||||||||
Net income (loss) | $ | 14,073 | $ | 1,267 | $ | 402 | $ | (3,213 | ) | $ | 12,529 | ||||||||
Capital expenditures | $ | 3,320 | $ | 24 | $ | 21 | $ | 829 | $ | 4,194 |
Six Months Ended | |||||||||||||||||||
June 30, 2015 | |||||||||||||||||||
(Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||
Interest income | $ | 50,235 | $ | — | $ | — | $ | 16 | $ | 50,251 | |||||||||
Interest expense | 3,567 | — | — | — | 3,567 | ||||||||||||||
Net interest income | 46,668 | — | — | 16 | 46,684 | ||||||||||||||
Provision for loan and lease losses | 2,215 | — | — | — | 2,215 | ||||||||||||||
Noninterest income | 9,308 | 9,588 | 7,793 | 93 | 26,782 | ||||||||||||||
Intangible expenses | 147 | 479 | 1,053 | — | 1,679 | ||||||||||||||
Other noninterest expense | 41,721 | 6,014 | 5,352 | (523 | ) | 52,564 | |||||||||||||
Intersegment (revenue) expense* | (1,029 | ) | 417 | 612 | — | — | |||||||||||||
Income (expense) before income taxes | 12,922 | 2,678 | 776 | 632 | 17,008 | ||||||||||||||
Income tax expense | 2,976 | 1,037 | 326 | 87 | 4,426 | ||||||||||||||
Net income (loss) | $ | 9,946 | $ | 1,641 | $ | 450 | $ | 545 | $ | 12,582 | |||||||||
Capital expenditures | $ | 2,518 | $ | 8 | $ | 47 | $ | 78 | $ | 2,651 |
(Dollars in thousands) | Write-downs and retirements of fixed assets | Lease cancellations | Total | ||||||||
Accrued at January 1, 2016 | $ | 228 | $ | 834 | $ | 1,062 | |||||
Payments | — | (157 | ) | (157 | ) | ||||||
Accelerated depreciation | — | — | — | ||||||||
Accrued at June 30, 2016 | $ | 228 | $ | 677 | $ | 905 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Operating, legal and regulatory risks |
• | Economic, political and competitive forces impacting various lines of business |
• | The risk that our analysis of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful |
• | Volatility in interest rates |
• | Other risks and uncertainties, including those occurring in the U.S. and world financial systems |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2016 | 2015 | Amount | Percent | 2016 | 2015 | Amount | Percent | |||||||||||||||||||||
Net income | $ | 5,240 | $ | 6,466 | $ | (1,226 | ) | (19 | )% | $ | 12,529 | $ | 12,582 | $ | (53 | ) | — | % | |||||||||||
Net income per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.27 | $ | 0.33 | $ | (0.06 | ) | (18 | ) | $ | 0.64 | $ | 0.64 | $ | — | — | |||||||||||||
Diluted | 0.27 | 0.33 | (0.06 | ) | (18 | ) | 0.64 | 0.64 | — | — | |||||||||||||||||||
Return on average assets | 0.74 | % | 0.95 | % | (21 BP) | (22 | ) | 0.89 | % | 0.93 | % | (4 BP) | (4 | ) | |||||||||||||||
Return on average equity | 5.72 | % | 7.22 | % | (150 BP) | (21 | ) | 6.88 | % | 7.04 | % | (16 BP) | (2 | ) |
Three Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Average Rate | Average Balance | Income/ Expense | Average Rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning deposits with other banks | $ | 7,654 | $ | 9 | 0.47 | % | $ | 17,767 | $ | 11 | 0.25 | % | |||||||||
U.S. government obligations | 57,776 | 176 | 1.23 | 129,482 | 351 | 1.09 | |||||||||||||||
Obligations of states and political subdivisions | 101,241 | 1,092 | 4.34 | 109,449 | 1,354 | 4.96 | |||||||||||||||
Other debt and equity securities | 143,475 | 1,012 | 2.84 | 136,956 | 753 | 2.21 | |||||||||||||||
Federal funds sold | 973 | 2 | 0.83 | 825 | — | — | |||||||||||||||
Total interest-earning deposits, investments and federal funds sold | 311,119 | 2,291 | 2.96 | 394,479 | 2,469 | 2.51 | |||||||||||||||
Commercial, financial and agricultural loans | 436,189 | 4,132 | 3.81 | 434,251 | 4,483 | 4.14 | |||||||||||||||
Real estate—commercial and construction loans | 898,494 | 10,106 | 4.52 | 846,318 | 9,913 | 4.70 | |||||||||||||||
Real estate—residential loans | 557,733 | 6,141 | 4.43 | 482,796 | 5,619 | 4.67 | |||||||||||||||
Loans to individuals | 30,301 | 408 | 5.42 | 29,149 | 389 | 5.35 | |||||||||||||||
Municipal loans and leases | 241,507 | 2,723 | 4.53 | 204,931 | 2,431 | 4.76 | |||||||||||||||
Lease financings | 75,450 | 1,524 | 8.12 | 69,675 | 1,535 | 8.84 | |||||||||||||||
Gross loans and leases | 2,239,674 | 25,034 | 4.50 | 2,067,120 | 24,370 | 4.73 | |||||||||||||||
Total interest-earning assets | 2,550,793 | 27,325 | 4.31 | 2,461,599 | 26,839 | 4.37 | |||||||||||||||
Cash and due from banks | 32,647 | 32,624 | |||||||||||||||||||
Reserve for loan and lease losses | (16,789 | ) | (21,373 | ) | |||||||||||||||||
Premises and equipment, net | 43,990 | 40,433 | |||||||||||||||||||
Other assets | 243,920 | 226,685 | |||||||||||||||||||
Total assets | $ | 2,854,561 | $ | 2,739,968 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest-bearing checking deposits | $ | 351,011 | 75 | 0.09 | $ | 370,449 | 67 | 0.07 | |||||||||||||
Money market savings | 337,250 | 322 | 0.38 | 344,523 | 259 | 0.30 | |||||||||||||||
Regular savings | 644,199 | 199 | 0.12 | 581,765 | 136 | 0.09 | |||||||||||||||
Time deposits | 374,936 | 862 | 0.92 | 445,255 | 983 | 0.89 | |||||||||||||||
Total time and interest-bearing deposits | 1,707,396 | 1,458 | 0.34 | 1,741,992 | 1,445 | 0.33 | |||||||||||||||
Short-term borrowings | 53,874 | 320 | 2.39 | 45,525 | 13 | 0.11 | |||||||||||||||
Subordinated notes* | 49,431 | 673 | 5.48 | 49,286 | 675 | 5.49 | |||||||||||||||
Total borrowings | 103,305 | 993 | 3.87 | 94,811 | 688 | 2.91 | |||||||||||||||
Total interest-bearing liabilities | 1,810,701 | 2,451 | 0.54 | 1,836,803 | 2,133 | 0.47 | |||||||||||||||
Noninterest-bearing deposits | 633,563 | 500,225 | |||||||||||||||||||
Accrued expenses and other liabilities | 41,831 | 43,786 | |||||||||||||||||||
Total liabilities | 2,486,095 | 2,380,814 | |||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||
Common stock | 110,271 | 110,271 | |||||||||||||||||||
Additional paid-in capital | 121,070 | 120,294 | |||||||||||||||||||
Retained earnings and other equity | 137,125 | 128,589 | |||||||||||||||||||
Total shareholders’ equity | 368,466 | 359,154 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,854,561 | $ | 2,739,968 | |||||||||||||||||
Net interest income | $ | 24,874 | $ | 24,706 | |||||||||||||||||
Net interest spread | 3.77 | 3.90 | |||||||||||||||||||
Effect of net interest-free funding sources | 0.15 | 0.13 | |||||||||||||||||||
Net interest margin | 3.92 | % | 4.03 | % | |||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 140.87 | % | 134.02 | % |
Notes: | For rate calculation purposes, average loan and lease categories include unearned discount. |
Six Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Average Rate | Average Balance | Income/ Expense | Average Rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning deposits with other banks | $ | 13,637 | $ | 37 | 0.55 | % | $ | 13,474 | $ | 16 | 0.24 | % | |||||||||
U.S. government obligations | 70,132 | 426 | 1.22 | 134,694 | 730 | 1.09 | |||||||||||||||
Obligations of states and political subdivisions | 101,151 | 2,221 | 4.42 | 107,048 | 2,676 | 5.04 | |||||||||||||||
Other debt and equity securities | 151,072 | 2,036 | 2.71 | 136,691 | 1,408 | 2.08 | |||||||||||||||
Federal funds sold | 3,456 | 9 | 0.52 | 3,692 | 2 | 0.11 | |||||||||||||||
Total interest-earning deposits, investments and federal funds sold | 339,448 | 4,729 | 2.80 | 395,599 | 4,832 | 2.46 | |||||||||||||||
Commercial, financial and agricultural loans | 424,094 | 8,146 | 3.86 | 428,566 | 8,732 | 4.11 | |||||||||||||||
Real estate—commercial and construction loans | 892,806 | 20,025 | 4.51 | 834,178 | 19,544 | 4.72 | |||||||||||||||
Real estate—residential loans | 549,855 | 12,117 | 4.43 | 477,996 | 11,003 | 4.64 | |||||||||||||||
Loans to individuals | 29,889 | 807 | 5.43 | 29,881 | 796 | 5.37 | |||||||||||||||
Municipal loans and leases | 236,503 | 5,348 | 4.55 | 204,468 | 4,868 | 4.80 | |||||||||||||||
Lease financings | 75,235 | 3,066 | 8.20 | 70,509 | 3,118 | 8.92 | |||||||||||||||
Gross loans and leases | 2,208,382 | 49,509 | 4.51 | 2,045,598 | 48,061 | 4.74 | |||||||||||||||
Total interest-earning assets | 2,547,830 | 54,238 | 4.28 | 2,441,197 | 52,893 | 4.37 | |||||||||||||||
Cash and due from banks | 32,156 | 31,420 | |||||||||||||||||||
Reserve for loan and lease losses | (17,280 | ) | (21,231 | ) | |||||||||||||||||
Premises and equipment, net | 43,431 | 40,500 | |||||||||||||||||||
Other assets | 238,140 | 223,988 | |||||||||||||||||||
Total assets | $ | 2,844,277 | $ | 2,715,874 | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest-bearing checking deposits | $ | 376,586 | 159 | 0.08 | $ | 358,234 | 114 | 0.06 | |||||||||||||
Money market savings | 349,519 | 662 | 0.38 | 359,936 | 538 | 0.30 | |||||||||||||||
Regular savings | 635,546 | 373 | 0.12 | 572,453 | 258 | 0.09 | |||||||||||||||
Time deposits | 396,741 | 1,797 | 0.91 | 453,270 | 1,952 | 0.87 | |||||||||||||||
Total time and interest-bearing deposits | 1,758,392 | 2,991 | 0.34 | 1,743,893 | 2,862 | 0.33 | |||||||||||||||
Short-term borrowings | 40,631 | 323 | 1.60 | 46,178 | 23 | 0.10 | |||||||||||||||
Subordinated notes * | 49,412 | 1,348 | 5.49 | 25,324 | 682 | 5.43 | |||||||||||||||
Total borrowings | 90,043 | 1,671 | 3.73 | 71,502 | 705 | 1.99 | |||||||||||||||
Total interest-bearing liabilities | 1,848,435 | 4,662 | 0.51 | 1,815,395 | 3,567 | 0.40 | |||||||||||||||
Noninterest-bearing deposits | 587,995 | 496,142 | |||||||||||||||||||
Accrued expenses and other liabilities | 41,567 | 43,706 | |||||||||||||||||||
Total liabilities | 2,477,997 | 2,355,243 | |||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||
Common stock | 110,271 | 110,271 | |||||||||||||||||||
Additional paid-in capital | 120,947 | 120,227 | |||||||||||||||||||
Retained earnings and other equity | 135,062 | 130,133 | |||||||||||||||||||
Total shareholders’ equity | 366,280 | 360,631 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,844,277 | $ | 2,715,874 | |||||||||||||||||
Net interest income | $ | 49,576 | $ | 49,326 | |||||||||||||||||
Net interest spread | 3.77 | 3.97 | |||||||||||||||||||
Effect of net interest-free funding sources | 0.14 | 0.10 | |||||||||||||||||||
Net interest margin | 3.91 | % | 4.07 | % | |||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 137.84 | % | 134.47 | % |
Notes: | For rate calculation purposes, average loan and lease categories include unearned discount. |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2016 Versus 2015 | June 30, 2016 Versus 2015 | ||||||||||||||||||||||
(Dollars in thousands) | Volume Change | Rate Change | Total | Volume Change | Rate Change | Total | |||||||||||||||||
Interest income: | |||||||||||||||||||||||
Interest-earning deposits with other banks | $ | (8 | ) | $ | 6 | $ | (2 | ) | $ | — | $ | 21 | $ | 21 | |||||||||
U.S. government obligations | (215 | ) | 40 | (175 | ) | (383 | ) | 79 | (304 | ) | |||||||||||||
Obligations of states and political subdivisions | (98 | ) | (164 | ) | (262 | ) | (141 | ) | (314 | ) | (455 | ) | |||||||||||
Other debt and equity securities | 37 | 222 | 259 | 162 | 466 | 628 | |||||||||||||||||
Federal funds sold | — | 2 | 2 | — | 7 | 7 | |||||||||||||||||
Interest on deposits, investments and federal funds sold | (284 | ) | 106 | (178 | ) | (362 | ) | 259 | (103 | ) | |||||||||||||
Commercial, financial and agricultural loans | 19 | (370 | ) | (351 | ) | (86 | ) | (500 | ) | (586 | ) | ||||||||||||
Real estate—commercial and construction loans | 587 | (394 | ) | 193 | 1,360 | (879 | ) | 481 | |||||||||||||||
Real estate—residential loans | 826 | (304 | ) | 522 | 1,623 | (509 | ) | 1,114 | |||||||||||||||
Loans to individuals | 14 | 5 | 19 | — | 11 | 11 | |||||||||||||||||
Municipal loans and leases | 415 | (123 | ) | 292 | 741 | (261 | ) | 480 | |||||||||||||||
Lease financings | 120 | (131 | ) | (11 | ) | 205 | (257 | ) | (52 | ) | |||||||||||||
Interest and fees on loans and leases | 1,981 | (1,317 | ) | 664 | 3,843 | (2,395 | ) | 1,448 | |||||||||||||||
Total interest income | 1,697 | (1,211 | ) | 486 | 3,481 | (2,136 | ) | 1,345 | |||||||||||||||
Interest expense: | |||||||||||||||||||||||
Interest-bearing checking deposits | (4 | ) | 12 | 8 | 5 | 40 | 45 | ||||||||||||||||
Money market savings | (5 | ) | 68 | 63 | (16 | ) | 140 | 124 | |||||||||||||||
Regular savings | 15 | 48 | 63 | 28 | 87 | 115 | |||||||||||||||||
Time deposits | (154 | ) | 33 | (121 | ) | (245 | ) | 90 | (155 | ) | |||||||||||||
Interest on time and interest-bearing deposits | (148 | ) | 161 | 13 | (228 | ) | 357 | 129 | |||||||||||||||
Short-term borrowings | 2 | 305 | 307 | (3 | ) | 303 | 300 | ||||||||||||||||
Subordinated notes | — | (2 | ) | (2 | ) | 658 | 8 | 666 | |||||||||||||||
Interest on borrowings | 2 | 303 | 305 | 655 | 311 | 966 | |||||||||||||||||
Total interest expense | (146 | ) | 464 | 318 | 427 | 668 | 1,095 | ||||||||||||||||
Net interest income | $ | 1,843 | $ | (1,675 | ) | $ | 168 | $ | 3,054 | $ | (2,804 | ) | $ | 250 |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | Amount | Percent | 2016 | 2015 | Amount | Percent | |||||||||||||||||||||
Trust fee income | $ | 1,997 | $ | 2,154 | $ | (157 | ) | (7 | )% | $ | 3,862 | $ | 3,974 | $ | (112 | ) | (3 | )% | |||||||||||
Service charges on deposit accounts | 1,056 | 1,039 | 17 | 2 | 2,054 | 2,102 | (48 | ) | (2 | ) | |||||||||||||||||||
Investment advisory commission and fee income | 2,759 | 2,740 | 19 | 1 | 5,428 | 5,503 | (75 | ) | (1 | ) | |||||||||||||||||||
Insurance commission and fee income | 3,503 | 3,434 | 69 | 2 | 8,061 | 7,580 | 481 | 6 | |||||||||||||||||||||
Other service fee income | 1,948 | 1,833 | 115 | 6 | 3,781 | 3,431 | 350 | 10 | |||||||||||||||||||||
Bank owned life insurance income | 535 | 211 | 324 | N/M | 1,005 | 564 | 441 | 78 | |||||||||||||||||||||
Net gain on sales of investment securities | 413 | 181 | 232 | N/M | 457 | 272 | 185 | 68 | |||||||||||||||||||||
Net gain on mortgage banking activities | 1,711 | 1,367 | 344 | 25 | 2,929 | 2,625 | 304 | 12 | |||||||||||||||||||||
Other income | 197 | 392 | (195 | ) | (50 | ) | 498 | 731 | (233 | ) | (32 | ) | |||||||||||||||||
Total noninterest income | $ | 14,119 | $ | 13,351 | $ | 768 | 6 | % | $ | 28,075 | $ | 26,782 | $ | 1,293 | 5 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | Amount | Percent | 2016 | 2015 | Amount | Percent | |||||||||||||||||||||
Salaries and benefits | $ | 14,080 | $ | 11,957 | $ | 2,123 | 17 | % | $ | 28,262 | $ | 25,271 | $ | 2,991 | 11 | % | |||||||||||||
Commissions | 2,363 | 2,155 | 208 | 10 | 4,258 | 3,969 | 289 | 7 | |||||||||||||||||||||
Net occupancy | 2,091 | 2,035 | 56 | 3 | 4,187 | 4,393 | (206 | ) | (5 | ) | |||||||||||||||||||
Equipment | 2,116 | 1,708 | 408 | 24 | 4,004 | 3,397 | 607 | 18 | |||||||||||||||||||||
Professional fees | 947 | 1,066 | (119 | ) | (11 | ) | 1,967 | 1,873 | 94 | 5 | |||||||||||||||||||
Marketing and advertising | 513 | 551 | (38 | ) | (7 | ) | 1,051 | 911 | 140 | 15 | |||||||||||||||||||
Deposit insurance premiums | 418 | 422 | (4 | ) | (1 | ) | 865 | 834 | 31 | 4 | |||||||||||||||||||
Intangible expenses | 996 | 893 | 103 | 12 | 1,766 | 1,679 | 87 | 5 | |||||||||||||||||||||
Acquisition-related costs | 1,158 | 41 | 1,117 | N/M | 1,372 | 507 | 865 | N/M | |||||||||||||||||||||
Integration costs | 27 | 110 | (83 | ) | (75 | ) | 33 | 1,484 | (1,451 | ) | (98 | ) | |||||||||||||||||
Restructuring charges | — | 1,642 | (1,642 | ) | N/M | — | 1,642 | (1,642 | ) | N/M | |||||||||||||||||||
Other expense | 4,837 | 4,252 | 585 | 14 | 8,720 | 8,283 | 437 | 5 | |||||||||||||||||||||
Total noninterest expense | $ | 29,546 | $ | 26,832 | $ | 2,714 | 10 | % | $ | 56,485 | $ | 54,243 | $ | 2,242 | 4 | % |
At June 30, 2016 | At December 31, 2015 | Change | ||||||||||||
(Dollars in thousands) | Amount | Percent | ||||||||||||
Cash, interest-earning deposits and federal funds sold | $ | 93,190 | $ | 60,799 | $ | 32,391 | 53 | % | ||||||
Investment securities | 286,980 | 370,760 | (83,780 | ) | (23 | ) | ||||||||
Loans held for sale | 4,657 | 4,680 | (23 | ) | — | |||||||||
Loans and leases held for investment | 2,345,037 | 2,179,013 | 166,024 | 8 | ||||||||||
Reserve for loan and lease losses | (17,153 | ) | (17,628 | ) | 475 | 3 | ||||||||
Premises and equipment, net | 44,437 | 42,156 | 2,281 | 5 | ||||||||||
Goodwill and other intangibles, net | 124,334 | 125,277 | (943 | ) | (1 | ) | ||||||||
Bank owned life insurance | 72,565 | 71,560 | 1,005 | 1 | ||||||||||
Funds advanced for merger settlement | 98,885 | — | 98,885 | N/M | ||||||||||
Accrued interest receivable and other assets | 54,685 | 42,834 | 11,851 | 28 | ||||||||||
Total assets | $ | 3,107,617 | $ | 2,879,451 | $ | 228,166 | 8 | % |
(Dollars in thousands) | At June 30, 2016 | At December 31, 2015 | At June 30, 2015 | ||||||||
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications*: | |||||||||||
Loans held for sale | $ | — | $ | — | $ | 4,000 | |||||
Loans held for investment: | |||||||||||
Commercial, financial and agricultural | 5,463 | 6,915 | 5,888 | ||||||||
Real estate—commercial | 3,960 | 4,314 | 4,639 | ||||||||
Real estate—construction | — | — | 363 | ||||||||
Real estate—residential | 3,280 | 2,514 | 2,282 | ||||||||
Lease financings | 562 | 440 | 525 | ||||||||
Total nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications* | 13,265 | 14,183 | 17,697 | ||||||||
Accruing troubled debt restructured loans and lease modifications not included in the above | 4,413 | 5,245 | 6,099 | ||||||||
Accruing loans and leases 90 days or more past due: | |||||||||||
Real estate—residential | 77 | — | — | ||||||||
Loans to individuals | 155 | 173 | 149 | ||||||||
Lease financings | 516 | 206 | 138 | ||||||||
Total accruing loans and leases, 90 days or more past due | 748 | 379 | 287 | ||||||||
Total non-performing loans and leases | 18,426 | 19,807 | 24,083 | ||||||||
Other real estate owned | 3,131 | 1,276 | 955 | ||||||||
Total nonperforming assets | $ | 21,557 | $ | 21,083 | $ | 25,038 | |||||
Nonaccrual loans and leases (including nonaccrual troubled debt restructured loans and lease modifications) / loans and leases held for investment and nonaccrual loans held for sale | 0.57 | % | 0.65 | % | 0.84 | % | |||||
Nonperforming loans and leases / loans and leases held for investment and nonaccrual loans held for sale | 0.79 | 0.91 | 1.14 | ||||||||
Nonperforming assets / total assets | 0.69 | 0.73 | 0.90 | ||||||||
Allowance for loan and lease losses / loans and leases held for investment | 0.73 | 0.81 | 0.93 | ||||||||
Allowance for loan and lease losses / loans and leases held for investment (excluding acquired loans at period-end) | 0.82 | 0.94 | 1.12 | ||||||||
Allowance for loan and lease losses / nonaccrual loans and leases held for investment | 129.31 | 124.29 | 143.11 | ||||||||
Allowance for loan and lease losses / nonperforming loans and leases held for investment | 93.09 | 89.00 | 97.60 | ||||||||
Allowance for loan and lease losses | $ | 17,153 | $ | 17,628 | $ | 19,602 | |||||
Acquired credit impaired loans | $ | 942 | $ | 1,253 | $ | 1,876 | |||||
* Nonaccrual troubled debt restructured loans and lease modifications included in nonaccrual loans and leases in the above table | $ | 1,396 | $ | 93 | $ | 2,826 |
(Dollars in thousands) | At June 30, 2016 | At December 31, 2015 | At June 30, 2015 | ||||||||
Total nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and lease modifications | $ | 13,265 | $ | 14,183 | $ | 13,697 | |||||
Nonaccrual loans and leases with partial charge-offs | 5,671 | 6,451 | 5,237 | ||||||||
Life-to-date partial charge-offs on nonaccrual loans and leases | 2,807 | 3,853 | 3,119 | ||||||||
Charge-off rate of nonaccrual loans and leases with partial charge-offs | 33.1 | % | 37.4 | % | 37.3 | % | |||||
Specific reserves on impaired loans | $ | 410 | $ | 322 | $ | 444 |
(Dollars in thousands) | At June 30, 2016 | At December 31, 2015 | Change | |||||||||||
Amount | Percent | |||||||||||||
Deposits | $ | 2,377,084 | $ | 2,394,360 | $ | (17,276 | ) | (1 | )% | |||||
Short-term borrowings | 260,216 | 24,211 | 236,005 | N/M | ||||||||||
Long-term borrowings | 49,450 | 49,377 | 73 | — | ||||||||||
Accrued interest payable and other liabilities | 51,707 | 49,929 | 1,778 | 4 | ||||||||||
Total liabilities | $ | 2,738,457 | $ | 2,517,877 | $ | 220,580 | 9 | % |
(Dollars in thousands) | At June 30, 2016 | At December 31, 2015 | Change | |||||||||||
Amount | Percent | |||||||||||||
Common stock | $ | 110,271 | $ | 110,271 | $ | — | — | % | ||||||
Additional paid-in capital | 121,399 | 121,280 | 119 | — | ||||||||||
Retained earnings | 198,156 | 193,446 | 4,710 | 2 | ||||||||||
Accumulated other comprehensive loss | (14,370 | ) | (16,708 | ) | 2,338 | 14 | ||||||||
Treasury stock | (46,296 | ) | (46,715 | ) | 419 | 1 | ||||||||
Total shareholders’ equity | $ | 369,160 | $ | 361,574 | $ | 7,586 | 2 | % |
Actual | For Capital Adequacy Purposes | To Be Well-Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
At June 30, 2016 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | $ | 338,914 | 12.77 | % | $ | 212,241 | 8.00 | % | $ | 265,301 | 10.00 | % | ||||||||
Bank | 301,063 | 11.45 | 210,267 | 8.00 | 262,834 | 10.00 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 271,658 | 10.24 | 159,180 | 6.00 | 212,241 | 8.00 | ||||||||||||||
Bank | 283,257 | 10.78 | 157,701 | 6.00 | 210,267 | 8.00 | ||||||||||||||
Tier 1 Common Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 271,658 | 10.24 | 119,385 | 4.50 | 172,446 | 6.50 | ||||||||||||||
Bank | 283,257 | 10.78 | 118,275 | 4.50 | 170,842 | 6.50 | ||||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||
Corporation | 271,658 | 9.90 | 109,708 | 4.00 | 137,134 | 5.00 | ||||||||||||||
Bank | 283,257 | 10.44 | 108,553 | 4.00 | 135,691 | 5.00 | ||||||||||||||
At December 31, 2015 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | $ | 334,757 | 13.35 | % | $ | 200,613 | 8.00 | % | $ | 250,766 | 10.00 | % | ||||||||
Bank | 300,527 | 12.09 | 198,816 | 8.00 | 248,521 | 10.00 | ||||||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 267,098 | 10.65 | 150,460 | 6.00 | 200,613 | 8.00 | ||||||||||||||
Bank | 282,245 | 11.36 | 149,112 | 6.00 | 198,816 | 8.00 | ||||||||||||||
Tier 1 Common Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | 267,098 | 10.65 | 112,845 | 4.50 | 162,998 | 6.50 | ||||||||||||||
Bank | 282,245 | 11.36 | 111,834 | 4.50 | 161,538 | 6.50 | ||||||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||||
Corporation | 267,098 | 9.69 | 110,227 | 4.00 | 137,783 | 5.00 | ||||||||||||||
Bank | 282,245 | 10.31 | 109,480 | 4.00 | 136,850 | 5.00 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
ISSUER PURCHASES OF EQUITY SECURITIES | ||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||
April 1 – 30, 2016 | — | $ | — | — | 1,080,246 | |||||||
May 1 – 31, 2016 | — | — | — | 1,080,246 | ||||||||
June 1 – 30, 2016 | — | — | — | 1,080,246 | ||||||||
Total | — | $ | — | — |
1. | Transactions are reported as of trade dates. |
2. | On October 23, 2013, the Corporation’s Board of Directors approved a new stock repurchase plan for the repurchase of up to 800,000 shares, or approximately 5% of the shares outstanding. On May 27, 2015, the Corporation's Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation's share repurchase program, or approximately 5% of the Corporation's common stock outstanding as of May 27, 2015. The repurchased shares limit is net of normal treasury activity such as purchases to fund the dividend reinvestment, employee stock purchase and equity compensation plans. The program has no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the program at any time. |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
a. | Exhibits | ||
Exhibit 2.1 | Agreement and Plan of Merger by and between Univest Corporation of Pennsylvania and Fox Chase Bancorp, Inc. dated as of December 8, 2015 is incorporated by reference to Exhibit 2.1 of Form 8-K, filed with the SEC on December 11, 2015. | ||
Exhibit 3.1 | Amended and Restated Articles of Incorporation are incorporated by reference to Exhibit 3.1 of Form 8-K, filed with the SEC on April 22, 2015. | ||
Exhibit 3.2 | Amended By-Laws effective January 1, 2015 are incorporated by reference to Exhibit 3.2 of Form 8-K, filed with the SEC on January 2, 2015. | ||
Exhibit 10.1 | Form of Change in Control Agreement dated February 26, 2016 between Univest Corporation of Pennsylvania, Univest Bank and Trust Co. and certain executive officers is incorporated by reference to Form 8-K, filed with the SEC on March 2, 2016. | ||
Exhibit 31.1 | Certification of Jeffrey M. Schweitzer, President and Chief Executive Officer of the Corporation, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Exhibit 31.2 | Certification of Roger S. Deacon, Senior Executive Vice President and Chief Financial Officer of the Corporation, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Exhibit 32.1 | Certification of Jeffrey M. Schweitzer, President and Chief Executive Officer of the Corporation, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Exhibit 32.2 | Certification of Roger S. Deacon, Senior Executive Vice President and Chief Financial Officer of the Corporation, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Exhibit 101.INS | XBRL Instance Document | ||
Exhibit 101.SCH | XBRL Taxonomy Extension Schema Document | ||
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
Univest Corporation of Pennsylvania | |
(Registrant) | |
Date: August 8, 2016 | /s/ Jeffrey M. Schweitzer |
Jeffrey M. Schweitzer President and Chief Executive Officer (Principal Executive Officer) | |
Date: August 8, 2016 | /s/ Roger S. Deacon |
Roger S. Deacon Senior Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Univest Corporation of Pennsylvania; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
/s/ Jeffrey M. Schweitzer | |
Jeffrey M. Schweitzer | |
President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Univest Corporation of Pennsylvania; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
/s/ Roger S. Deacon | |
Roger S. Deacon | |
Senior Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
/s/ Jeffrey M. Schweitzer | |
Jeffrey M. Schweitzer | |
President and Chief Executive Officer (Principal Executive Officer) | |
August 8, 2016 |
/s/ Roger S. Deacon | |
Roger S. Deacon | |
Senior Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |
August 8, 2016 |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 29, 2016 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | UNIVEST CORP OF PENNSYLVANIA | |
Entity Central Index Key | 0000102212 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | UVSP | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,555,176 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities Held-to-Maturity, Fair Value | $ 32,946 | $ 41,061 |
Accumulated amortization and fair value adjustments on other intangibles | $ 15,234 | $ 15,360 |
Common stock, par value | $ 5 | $ 5 |
Common stock, shares authorized | 48,000,000 | 48,000,000 |
Common stock, shares issued | 22,054,270 | 22,054,270 |
Common stock, shares outstanding | 19,557,958 | 19,530,930 |
Treasury stock, shares | 2,496,312 | 2,523,340 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared, per share | $ 0.20 | $ 0.20 | $ 0.4 | $ 0.40 |
Summary of Significant Accounting Policies |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Univest Corporation of Pennsylvania (the Corporation or Univest) and its wholly owned subsidiaries; the Corporation’s primary subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current-year presentation. Operating results for the six-month period ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on March 4, 2016. Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation expense. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to require businesses and other organizations to measure the current expected credit losses (CECL) on financial assets, such as loans, net investments in leases, certain debt securities, bond insurance and other receivables. The amendments affect entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. Current GAAP requires an incurred loss methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The amendments in this ASU replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonableness and supportable information to inform credit loss estimates. An entity should apply the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (modified-retrospective approach). Acquired credit impaired loans for which the guidance in Accounting Standards Codification (ASC) Topic 310-30 has been previously applied should prospectively apply the guidance in this ASU. A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those years for public business entities that are SEC filers, or January 1, 2020 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated that the allowance will increase upon adoption of CECL and that the increased allowance level will decrease regulatory capital and ratios. In March 2016, the FASB issued an ASU to simplify and improve employee share-based payment accounting. Under the new guidance, all excess tax benefits and tax deficiencies are recognized as an income tax benefit or expense in the income statement. The additional paid-in capital pool is eliminated. Excess tax benefits and deficiencies are recognized in the period they are deducted on the income tax return. Excess tax benefits are recorded along with other income tax cash flows as an operating activity in the statement of cash flows. The recognition of excess tax benefits and deficiencies and changes to diluted earnings per share are to be applied prospectively when this ASU is adopted. For tax benefits that were not previously recognized because the related tax deduction had not reduced taxes payable, entities record a cumulative-effect adjustment in retained earnings as of the beginning of the year of adoption. The Corporation does not record deferred tax benefits on incentive stock options when expense is accrued, therefore, the Corporation will not have a cumulative-effect adjustment when this ASU is adopted. Changes to the treatment of forfeitures will not impact the Corporation as the historical assumption for forfeitures was immaterial and not taken into account during valuations; the Corporation has recorded forfeitures as they occurred which is consistent with the new guidance. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities, or January 1, 2017 for the Corporation. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Corporation does not anticipate that the adoption of this ASU will have a material impact on the financial statements. In March 2016, the FASB issued an ASU to amend the guidance for hedge accounting to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in this ASU are effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2016, or January 1, 2017 for the Corporation. The Corporation does not anticipate the adoption of this ASU will have any impact on the financial statements. In February 2016, the FASB issued an ASU to revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The ASU is effective for the first interim period within annual periods beginning after December 15, 2018, or January 1, 2019, with early adoption permitted. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, the adoption of this ASU will impact the balance sheet for the recording of assets and liabilities for operating leases; any initial or continued impact of the recording of assets will have an impact on risk-based capital ratios under current regulatory guidance and possibly equity ratios. In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The ASU will require equity investments to be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable, an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. The ASU will simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. A valuation allowance on a deferred tax asset related to available-for-sale securities will need to be included. For financial liabilities that are measured at fair value, the ASU requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument-specific credit risk. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The amendments in this ASU are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017 or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements. In September 2015, the FASB issued an ASU simplifying the accounting for measurement-period adjustments related to business combinations. The ASU eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Under this ASU, measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. The ASU requires additional disclosures about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. The amendments in this ASU were effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this guidance did not impact the Corporation's financial statements. In April 2015, the FASB issued an ASU simplifying the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The costs will continue to be amortized to interest expense using the effective interest method. The ASU was effective for financial statements of public businesses issued for fiscal years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this ASU did not impact the Corporation's balance sheet presentation as the Corporation followed this presentation consistent with the guidance in FASB Concepts Statement No. 6. In May 2014, the FASB issued an ASU regarding revenue from contracts with customers which clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that would require an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient information that enables users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued an ASU clarifying the implementation guidance on the principal-versus-agent considerations in the revenue recognition standard by instructing the participants in the sale to determine whether they control the good or service and are entitled to the gross amount of the transaction or are acting as an agent and should collect only a fee or commission for arranging the sale. In April 2016, the FASB issued an ASU clarifying the identification of performance obligations and licensing. In May 2016, the FASB issued an ASU providing some limited improvements and practical expedients. The original effective date of the guidance relating to revenue from contracts with customers was deferred in August 2015 by one year. This guidance is now effective for fiscal years and interim periods within those years beginning after December 15, 2017, or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated the impact will be only related to timing. |
Acquisition |
6 Months Ended |
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Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Fox Chase Bancorp On December 8, 2015, the Corporation and Fox Chase Bancorp, Inc. (Fox Chase), parent company of Fox Chase Bank, entered into an Agreement and Plan of Merger which provided for the merger of Fox Chase with and into the Corporation in a cash and stock transaction with an aggregate value of approximately $243.0 million based on the Corporation's June 30, 2016 closing share price. The transaction is expected to qualify as a tax-free reorganization for federal income tax purposes. On July 1, 2016, the Corporation completed its acquisition of Fox Chase. See Note 15, "Subsequent Event" for additional information. In January 2016, the Corporation approved a discretionary overnight federal funds line to Fox Chase Bank at a rate of one-month LIBOR plus 0.05%. At June 30, 2016, the Corporation had outstanding federal funds sold to Fox Chase Bank of $48.5 million. During the six months ended June 30, 2016, average federal funds sold to Fox Chase Bank were $3.5 million. During the first half of 2016, a purported Fox Chase shareholder filed a purported class action derivative complaint in the Court of Common Pleas of Montgomery County, Pennsylvania. The lawsuit named as defendants Fox Chase, each member of Fox Chase’s board of directors and Univest. The lawsuit alleged that the Fox Chase directors breached their fiduciary duties by agreeing to the merger, that the directors and executive officers had conflicts of interest related to the transaction, that the registration filed on February 26, 2016 failed to disclose material information related to the transaction, and that Univest aided and abetted the alleged breaches of fiduciary duty. During July 2016, the case was dismissed with prejudice. |
Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at June 30, 2016 and December 31, 2015, by contractual maturity within each type:
Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties. Unrealized losses in investment securities at June 30, 2016 and December 31, 2015 do not represent other-than-temporary impairments in management's judgment.. Securities with a carrying value of $128.4 million and $210.1 million at June 30, 2016 and December 31, 2015, respectively, were pledged to secure public deposits and for other purposes as required by law. The following table presents information related to sales of securities available-for-sale during the six months ended June 30, 2016 and 2015:
Management evaluates debt securities, which are comprised of U.S. government, government sponsored agencies, municipalities, corporate bonds and other issuers, for other-than-temporary impairment by considering the current economic conditions, the length of time and the extent to which the fair value has been less than cost, market interest rates and the bond rating of each security. All of the debt securities are rated as investment grade and management believes that it will not incur any losses. The unrealized losses on the Corporation’s investments in debt securities are temporary in nature since they are primarily related to market interest rates and are not related to the underlying credit quality of the issuers. The Corporation does not have the intent to sell the debt securities and believes it is more likely than not, that it will not have to sell the securities before recovery of their cost basis. The Corporation did not recognize any other-than-temporary impairment charges on debt securities for the six months ended June 30, 2016 and 2015. The Corporation evaluates its equity securities for other-than-temporary impairment and recognizes other-than-temporary impairment charges when it has determined that it is probable that the fair value of certain equity securities will not recover to the Corporation’s cost basis in the individual securities within a reasonable period of time due to a decline in the financial stability of the underlying companies. Management evaluates the near-term prospects of the issuers in relation to the severity and duration of the impairment. The Corporation has the intent and ability to hold these securities until recovery of the Corporation’s cost basis occurs. The Corporation did not recognize any other-than-temporary impairment charges on its equity portfolio during the six months ended June 30, 2016 and 2015. At June 30, 2016 and December 31, 2015, there were no investments in any single non-federal issuer representing more than 10% of shareholders’ equity. The following table shows the fair value of securities that were in an unrealized loss position at June 30, 2016 and December 31, 2015 by the length of time those securities were in a continuous loss position:
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Loans and Leases |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases | Loans and Leases Summary of Major Loan and Lease Categories
Overdraft deposits are re-classified as loans and are included in the total loans and leases on the balance sheet. The carrying amount of acquired loans at June 30, 2016 totaled $256.8 million, including $942 thousand of loans acquired with deteriorated credit quality, or acquired credit impaired loans from the Valley Green Bank acquisition. Acquired credit impaired loans are accounted for in accordance with Accounting Standards Codification (ASC) Topic 310-30. The outstanding principal balance and carrying amount for acquired credit impaired loans at June 30, 2016 and December 31, 2015 were as follows:
The following table presents the changes in accretable yield on acquired credit impaired loans:
Age Analysis of Past Due Loans and Leases The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at June 30, 2016 and December 31, 2015:
Non-Performing Loans and Leases The following presents, by class of loans and leases, non-performing loans and leases at June 30, 2016 and December 31, 2015:
* Includes nonaccrual troubled debt restructured loans and lease modifications of $1.4 million and $93 thousand at June 30, 2016 and December 31, 2015, respectively. Credit Quality Indicators The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at June 30, 2016 and December 31, 2015. The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.
Commercial Credit Exposure Credit Risk by Internally Assigned Grades The following table presents classifications for originated loans:
The following table presents classifications for acquired loans:
Credit Exposure—Real Estate—Residential Secured for Personal Purpose, Real Estate—Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financing Credit Risk Profile by Payment Activity The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings. Nonperforming loans and leases are loans past due 90 days or more, loans and leases on nonaccrual of interest and troubled debt restructured loans and lease modifications. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Nonperforming loans and leases are loans or leases with a well-defined weakness and where collection in-full is unlikely. The following table presents classifications for originated loans:
The following table presents classifications for acquired loans:
Risks associated with lending activities include, among other things, the impact of changes in interest rates and economic conditions, which may adversely impact the ability of borrowers to repay outstanding loans, and impact the value of the associated collateral. Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties and factors affecting residential real estate borrowers. Commercial, financial and agricultural business loans are typically based on the borrowers’ ability to repay the loans from the cash flow of their businesses. These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business. In addition, the collateral securing the loans often depreciates over time, is difficult to appraise and liquidate and fluctuates in value based on the success of the business. Risk of loss on a construction loan depends largely upon whether our initial estimate of the property’s value at completion of construction equals or exceeds the cost of the property construction (including interest). During the construction phase, a number of factors can result in delays and cost overruns. If estimates of value are inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan or by seizure of collateral. Included in real estate-construction is track development financing. Risk factors related to track development financing include the demand for residential housing and the real estate valuation market. When projects move slower than anticipated, the properties may have significantly lower values than when the original underwriting was completed, resulting in lower collateral values to support the loan. Extended time frames also cause the interest carrying cost for a project to be higher than the builder projected, negatively impacting the builder’s profit and cash flow and, therefore, their ability to make principal and interest payments. Commercial real estate loans and residential real estate loans with a business purpose secured by owner-occupied properties are dependent upon the successful operation of the borrower’s business. If the operating company suffers difficulties in terms of sales volume and/or profitability, the borrower’s ability to repay the loan may be impaired. Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit. Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans secured for a business purpose are more susceptible to a risk of loss during a downturn in the business cycle. While the Corporation has strict underwriting, review, and monitoring procedures in place, these procedures cannot eliminate all of the risks related to these loans. The Corporation focuses on both assessing the borrower’s capacity and willingness to repay and on obtaining sufficient collateral. Commercial, financial and agricultural loans are generally secured by the borrower’s assets and by personal guarantees. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the Southeastern Pennsylvania market area at conservative loan-to-value ratios and often with a guarantee of the borrowers. Management closely monitors the composition and quality of the total commercial loan portfolio to ensure that any credit concentrations by borrower or industry are closely monitored. The Corporation originates fixed-rate and adjustable-rate real estate-residential mortgage loans that are secured by the underlying 1-to-4 family residential properties for personal purposes. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance. In the real estate-home equity loan portfolio secured for a personal purpose, credit exposure is minimized by the evaluation of the creditworthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to the Corporation’s underwriting policies. Combined loan-to-value ratios are generally limited to 80%, but increased to 85% for the Corporation’s strongest profile borrower. Other credit considerations and compensating factors may support higher combined loan-to-value ratios. Credit risk for consumer loans is controlled by strict adherence to underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. These loans are included within the portfolio of loans to individuals. The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review, and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease term. Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three and six months ended June 30, 2016 and 2015:
N/A – Not applicable *Includes charge-offs of $1.3 million on two real estate construction loans for one borrower which were subsequently transferred to loans held for sale in the second quarter of 2015.
N/A – Not applicable Subsequent to the acquisition date, the methods utilized to estimate the required allowance for loan losses for acquired non-impaired loans is similar to originated loans, however, the Corporation records a provision for loan loss only when the required allowance exceeds the remaining unamortized credit mark. The present value of any decreases in expected cash flows after the acquisition date of purchased impaired loans will generally result in an impairment charge recorded as a provision for loan loss, resulting in an increase to the allowance. Impaired Loans The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at June 30, 2016 and December 31, 2015. The impaired loans exclude loans acquired with deteriorated credit quality.
Impaired loans include nonaccrual loans, accruing troubled debt restructured loans and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. These loans are individually measured to determine the amount of potential impairment. The loans are reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Impaired loans include other accruing impaired loans of $26.9 million and $30.0 million at June 30, 2016 and December 31, 2015, respectively. Specific reserves on other accruing impaired loans were $171 thousand and $186 thousand at June 30, 2016 and December 31, 2015, respectively. The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method.
Troubled Debt Restructured Loans The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:
The Corporation grants concessions primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for a short-term basis up to one year. The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than ninety days past due. The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three and six months ended June 30, 2016 and 2015.
The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:
As a result of payment default during the first quarter of 2016, a commercial accruing troubled debt restructured loan totaling $50 thousand was placed on nonaccrual of interest status. The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at June 30, 2016 and December 31, 2015:
The Corporation held no foreclosed consumer residential real estate property at June 30, 2016 and December 31, 2015. |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Corporation has core deposit and customer-related intangibles and mortgage servicing rights, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The Corporation also has goodwill which is deemed to be an indefinite intangible asset and is not amortized. Changes in the carrying amount of the Corporation's goodwill by business segment for the six months ended June 30, 2016 were as follows:
The following table reflects the components of intangible assets at the dates indicated:
The estimated aggregate amortization expense for core deposit and customer related intangibles for the remainder of 2016 and the succeeding fiscal years is as follows:
The Corporation has originated mortgage servicing rights which are included in other intangible assets on the consolidated balance sheets. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income on a basis similar to the interest method and an accelerated amortization method for loan payoffs. Mortgage servicing rights are subject to impairment testing on a quarterly basis. The aggregate fair value of these rights was $6.8 million and $8.0 million at June 30, 2016 and December 31, 2015, respectively. The fair value of mortgage servicing rights was determined using a discount rate of 10.0% at June 30, 2016, and December 31, 2015. Changes in the mortgage servicing rights balance are summarized as follows:
There was no activity in the valuation allowance for the three and six months ended June 30, 2016 and June 30, 2015. The estimated amortization expense of mortgage servicing rights for the remainder of 2016 and the succeeding fiscal years is as follows:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At June 30, 2016 and December 31, 2015, the Corporation had no material unrecognized tax benefits, accrued interest or penalties. Penalties are recorded in noninterest expense in the year they are assessed and are treated as a non-deductible expense for tax purposes. Interest is recorded in noninterest expense in the year it is assessed and is treated as a deductible expense for tax purposes. At June 30, 2016, the Corporation’s tax years 2012 through 2015 remain subject to federal examination as well as examination by state taxing jurisdictions. |
Retirement Plans and Other Postretirement Benefits |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans and Other Postretirement Benefits | Retirement Plans and Other Postretirement Benefits Substantially all employees who were hired before December 8, 2009 are covered by a noncontributory retirement plan. Employees hired on or after December 8, 2009 are not eligible to participate in the noncontributory retirement plan. The Corporation also provides supplemental executive retirement benefits to certain former executives, a portion of which is in excess of limits imposed on qualified plans by federal tax law; these plans are non-qualified benefit plans. These non-qualified benefit plans are not offered to new participants; all current participants are now retired. Information on these plans are aggregated and reported under “Retirement Plans” within this footnote. The Corporation also provides certain postretirement healthcare and life insurance benefits for retired employees. Information on these benefits is reported under “Other Postretirement Benefits” within this footnote. The Corporation sponsors a Supplemental Non-Qualified Pension Plan which was established in 1981 prior to the existence of a 401(k) deferred salary savings plan, employee stock purchase plan and long-term incentive plans and therefore is not offered to new participants; all current participants are now retired. Components of net periodic benefit cost (income) were as follows:
The Corporation expects to make a contribution of $2.0 million to its qualified retirement plan during the third quarter of 2016. The Corporation previously disclosed in its financial statements for the year ended December 31, 2015, that it expected to make contributions of $160 thousand to its non-qualified retirement plans and $117 thousand to its other postretirement benefit plans in 2016. During the six months ended June 30, 2016, the Corporation contributed $80 thousand to its non-qualified retirement plans and $41 thousand to its other postretirement plans. During the six months ended June 30, 2016, $1.2 million was paid to participants from the retirement plans and $41 thousand was paid to participants from the other postretirement plans. |
Borrowings |
6 Months Ended |
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Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Short-term borrowings consist of overnight borrowings and term borrowings with an original maturity of less than one year. Short-term borrowings are obtained from the Federal Home Loan Bank (FHLB) and correspondent banks. At June 30, 2016, short-term borrowings consisted of borrowings with the FHLB of $156.0 million, customer repurchase agreements of $24.3 million and a short-term bridge loan with a correspondent bank of $80.0 million. The bridge loan was paid off on July 1, 2016 in conjunction with the closing of the merger. At December 31, 2015, short-term borrowings consisted of customer repurchase agreements of $24.2 million. At June 30, 2016 and December 31, 2015, the Corporation had $49.5 million and $49.4 million, respectively, of long-term subordinated notes. On April 25, 2016, Kroll Bond Rating Agency ("KBRA") affirmed its credit rating for the Corporation and the Bank with a stable outlook. Specifically, KBRA affirmed the Corporation's senior unsecured debt rating of BBB+, subordinated debt rating of BBB and short-term rating of K2. With regard to the Bank, KBRA affirmed the Bank's deposit rating of A-, short-term debt rating of K2 and short-term deposit rating of K2 while also assigning the Bank a senior unsecured debt rating of A-. |
Earnings per Share |
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Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share The Corporation uses the two-class method to calculate earnings per share as the unvested restricted stock issued under the Corporation's equity incentive plans are participating shares with nonforfeitable rights to dividends. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities based on the number of weighted average shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share:
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Accumulated Other Comprehensive (Loss) Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:
The following table illustrates the amounts reclassified out of each component of accumulated comprehensive loss for the three and six months ended June 30, 2016 and 2015:
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Corporation may use interest-rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. Recorded amounts related to interest-rate swaps are included in other assets or liabilities. The Corporation’s credit exposure on interest rate swaps includes fair value and any collateral that is held by a third party. Changes in the fair value of derivative instruments designated as hedges of future cash flows are recognized in accumulated other comprehensive income until the underlying forecasted transactions occur, at which time the deferred gains and losses are recognized in earnings. For a qualifying fair value hedge, the gain or loss on the hedging instrument is recognized in earnings, and the change in fair value of the hedge item, to the extent attributable to the hedged risk, adjusts the carrying amount of the hedge item and is recognized in earnings. Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The Corporation’s derivative loan commitments are commitments to sell loans secured by 1-to 4-family residential properties whose predominant risk characteristic is interest rate risk. The fair values of these derivative loan commitments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties. On October 24, 2014, the Corporation entered into an amortizing interest rate swap classified as a cash flow hedge with a notional amount of $20.0 million to hedge a portion of the debt financing of a pool of 10-year maturity fixed rate loans with balances totaling $29.1 million, at time of the hedge, that were originated in 2013. A brokered money market demand account with a balance exceeding the amortizing interest rate swap balance is being used for the cash flow hedge. Under the terms of the swap agreement, the Corporation pays a fixed rate of 2.10% and receives a floating rate based on the one-month LIBOR with a maturity date of November 1, 2022. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and on a recurring basis to determine that the derivative has been and is expected to continue to be highly effective in offsetting changes in cash flows of the hedged item. The Corporation expects that there will be no ineffectiveness over the life of the interest rate swap, and therefore anticipates no portion of the net loss in accumulated other comprehensive loss will be reclassified into interest expense. To the extent there is ineffectiveness, the Corporation would record the ineffectiveness in interest expense. At June 30, 2016, approximately $269 thousand in net deferred losses, net of tax, recorded in accumulated other comprehensive loss are expected to be reclassified into earnings during the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to June 30, 2016. The Corporation pledges cash or securities to cover a portion of the negative fair value of the interest rate swap, as measured by the counterparty. At June 30, 2016, the notional amount of the cash flow hedge was $18.9 million, with a negative fair value of $1.2 million. The Corporation has pledged $1.3 million to the counterparty as collateral for the negative fair value. The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at June 30, 2016 and December 31, 2015:
The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at June 30, 2016 and December 31, 2015:
For the three and six months ended June 30, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives not designated as hedging instruments are shown in the table below:
For the three and six months ended June 30, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives designated as hedging instruments are shown in the table below:
At June 30, 2016 and December 31, 2015, the amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments are shown in the table below:
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Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | Fair Value Disclosures Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Corporation determines the fair value of financial instruments based on the fair value hierarchy. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Corporation. Unobservable inputs are inputs that reflect the Corporation’s assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances, including assumptions about risk. Three levels of inputs are used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. Transfers between levels are recognized at the end of the reporting period. Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities that the Corporation can access at the measurement date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2: Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3: Valuations are based on inputs that are unobservable and significant to the overall fair value measurement. Assets and liabilities utilizing Level 3 inputs include: financial instruments whose value is determined using pricing models, discounted cash-flow methodologies, or similar techniques, as well as instruments for which the fair value calculation requires significant management judgment or estimation. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include U.S. Treasury securities, most equity securities and money market mutual funds. Mutual funds are registered investment companies which are valued at net asset value of shares on a market exchange at the end of each trading day. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Examples of instruments, which would generally be classified within Level 2 of the valuation hierarchy, include securities issued by U.S. Government sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, corporate and municipal bonds and certain equity securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy. Fair values for securities are determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. If at any time, the pricing service determines that it does not have sufficient verifiable information to value a particular security, the Corporation will utilize valuations from another pricing service. Management has a sufficient understanding of the third party service’s valuation models, assumptions and inputs used in determining the fair value of securities to enable management to maintain an appropriate system of internal control. On a quarterly basis, the Corporation reviews changes, as submitted by the pricing service, in the market value of its security portfolio. Individual changes in valuations are reviewed for consistency with general interest rate movements and any known credit concerns for specific securities. Additionally, on a quarterly basis, the Corporation has its security portfolio priced by a second pricing service to determine consistency with another market evaluator, except for municipal bonds which are priced by another service provider on a sample basis. If, upon the Corporation’s review or in comparing with another service, a material difference between pricing evaluations were to exist, the Corporation may submit an inquiry to the current pricing service regarding the data used to determine the valuation of a particular security. If the Corporation determines there is market information that would support a different valuation than from the current pricing service’s evaluation, the Corporation can submit a challenge for a change to that security’s valuation. There were no material differences in valuations noted at June 30, 2016. Derivative Financial Instruments The fair values of derivative financial instruments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties. Derivative financial instruments are classified within Level 2 of the valuation hierarchy. Contingent Consideration Liability The Corporation estimates the fair value of the contingent consideration liability by using a discounted cash flow model of future contingent payments based on projected revenue related to the acquired business. The estimated fair value of the contingent consideration liability is reviewed on a quarterly basis and any valuation adjustments resulting from a change of estimated future contingent payments based on projected revenue of the acquired business affecting the contingent consideration liability will be recorded through noninterest expense. Changes in the original assumptions utilized at the time the acquisition closes and identified during the measurement period are recorded in accordance with ASC Topic 805 as an adjustment to goodwill. Due to the significant unobservable input related to the projected revenue, the contingent consideration liability is classified within Level 3 of the valuation hierarchy. An increase in the projected revenue may result in a higher fair value of the contingent consideration liability. Alternatively, a decrease in the projected revenue may result in a lower estimated fair value of the contingent consideration liability. For the Sterner Insurance Associates acquisition, the potential remaining two cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $3.9 million based on the results for the twelve-month periods ended June 30, 2016 and 2017, respectively. Due to updates to the original assumptions utilized for determining the contingent consideration liability for the Sterner acquisition completed on July 1, 2014, the Corporation recorded a purchase accounting adjustment, in accordance with ASC Topic 805, in the first quarter of 2015 which resulted in an increase to the contingent consideration liability and an increase to goodwill of $1.5 million. For the Girard Partners acquisition, the potential remaining three cash payments that could result from the contingent consideration arrangement range from $0 to a maximum of $12.9 million cumulative based on the results for the three-year periods ended December 31, 2016, 2017, and 2018, respectively. The Corporation recorded a reduction to the contingent liability during the fourth quarter of 2015 which resulted in a reduction of noninterest expense of $550 thousand. The adjustment reflected that projected revenue levels for earn-out payments in the second through fifth years post-acquisition are anticipated to be lower than originally projected. The following table presents the assets and liabilities measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015, classified using the fair value hierarchy:
At June 30, 2016 and December 31, 2015, the Corporation had no assets measured at fair value on a recurring basis utilizing Level 3 inputs. The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the six months ended June 30, 2016 and 2015:
*Includes adjustments during the measurement period in accordance with ASC Topic 805. The Corporation recorded an increase to the contingent liability related to Sterner Insurance Associates during the second quarter of 2016 which resulted in an increase in noninterest expense of $183 thousand. The adjustment reflected that projected revenue levels for earn-out payments in the second through third years post-acquisition are anticipated to be higher than originally projected. The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or impairment charges of individual assets. The following table represents assets measured at fair value on a non-recurring basis at June 30, 2016 and December 31, 2015:
The following table presents assets and liabilities and off-balance sheet items not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed at June 30, 2016 and December 31, 2015. The disclosed fair values are classified using the fair value hierarchy.
The following valuation methods and assumptions were used by the Corporation in estimating the fair value for financial instruments measured at fair value on a non-recurring basis and financial instruments not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed: Cash and short-term interest-earning assets: The carrying amounts reported in the balance sheet for cash and due from banks, interest-earning deposits with other banks, federal funds sold and other short-term investments approximates those assets’ fair values. Cash and short-term interest-earning assets are classified within Level 1 in the fair value hierarchy. Held-to-maturity securities: Fair values for the held-to-maturity investment securities are estimated by using pricing models or quoted prices of securities with similar characteristics and are classified in Level 2 in the fair value hierarchy. Loans held for sale: The fair value of the Corporation’s mortgage loans held for sale are generally determined using a pricing model based on current market information obtained from external sources, including interest rates, bids or indications provided by market participants on specific loans that are actively marketed for sale. These loans are primarily residential mortgage loans and are generally classified in Level 2 due to the observable pricing data. Loans held for sale are carried at the lower of cost or estimated fair value. There were no valuation adjustments for loans held for sale at June 30, 2016 and December 31, 2015. Loans and leases held for investment: The fair values for loans and leases held for investment are estimated using discounted cash flow analyses, using a discount rate based on current interest rates at which similar loans with similar terms would be made to borrowers and include components for credit risk, operating expense and embedded prepayment options. An overall valuation adjustment is made for specific credit risks in addition to general portfolio risk and is significant to the valuation. As permitted, the fair value of the loans and leases are not based on the exit price concept as discussed in the first paragraph of this note. Loans and leases are classified within Level 3 in the fair value hierarchy. Impaired loans held for investment: Impaired loans held for investment include those collateral-dependent loans for which the practical expedient was applied, resulting in a fair-value adjustment to the loan. Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans less costs to sell and is classified at a Level 3 in the fair value hierarchy. The fair value of collateral is based on appraisals performed by qualified licensed appraisers hired by the Corporation. At June 30, 2016, impaired loans held for investment had a carrying amount of $44.0 million with a valuation allowance of $410 thousand. At December 31, 2015, impaired loans held for investment had a carrying amount of $48.9 million with a valuation allowance of $322 thousand. Mortgage servicing rights: The Corporation estimates the fair value of mortgage servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. Mortgage servicing rights are classified within Level 3 of the valuation hierarchy. The Corporation reviews the mortgage servicing rights portfolio on a quarterly basis for impairment and the mortgage servicing rights are carried at the lower of amortized cost or estimated fair value. At June 30, 2016 and December 31, 2015, mortgage servicing rights had a carrying amount of $5.9 million, with no valuation allowance. Goodwill and other identifiable assets: Certain non-financial assets subject to measurement at fair value on a non-recurring basis include goodwill and other identifiable intangible assets. During the six months ended June 30, 2016, there were no triggering events that required valuation of goodwill and other identifiable intangible assets. Other real estate owned: The fair value of other real estate owned is estimated based upon the appraised value less costs to sell. The real estate is stated at an amount equal to the loan balance prior to foreclosure, plus costs incurred for improvements to the property but no more than the fair value of the property, less estimated costs to sell. New appraisals are generally obtained on an annual basis. Other real estate owned is classified within Level 2 of the valuation hierarchy. Deposit liabilities: The fair values for demand and savings accounts, with no stated maturities, is the amount payable on demand at the reporting date (carrying value) and are classified within Level 1 in the fair value hierarchy. The fair values for time deposits with fixed maturities are estimated by discounting the final maturity using interest rates currently offered for deposits with similar remaining maturities. Time deposits are classified within Level 2 in the fair value hierarchy. Short-term borrowings: The fair value of short-term borrowings are estimated using current market rates for similar borrowings and are classified within Level 2 in the fair value hierarchy. Subordinated notes: The fair value of the subordinated notes are estimated by discounting the principal balance using the treasury yield curve for the term to the call date as the Corporation has the option to call the subordinated notes. The subordinated notes are classified within Level 2 in the fair value hierarchy. Off-balance-sheet instruments: Fair values for the Corporation’s off-balance-sheet instruments are based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing and are classified within Level 2 in the fair value hierarchy. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting At June 30, 2016, the Corporation has three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. At June 30, 2016, these segments meet the quantitative thresholds for separate disclosure as a business segment. Non-reportable segments include the parent holding company and intercompany eliminations, and are included in the "Other" segment. The Corporation's Banking segment consists of commercial and consumer banking. The Wealth Management segment consists of investment advisory services, retirement plan services, trust, municipal pension services and broker/dealer services. The Insurance segment consists of commercial lines, personal lines, benefits and human resources consulting. Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated below.
The accounting policies, used in the disclosure of the operating segments, are the same as those described in Note 1, “Summary of Significant Accounting Policies". The following table provides total assets by reportable operating segment as of the dates indicated.
The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three and six months ended June 30, 2016 and 2015.
*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage utilized. |
Restructuring Charges |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges During the first quarter of 2015, the Corporation finalized a new financial center model, which is smaller in size, combines enhanced technology with personal service and provides consultive services and solutions delivered by personal bankers. These efforts led to the development of a comprehensive financial center optimization plan approved in April 2015 which includes opening new financial centers in growth markets while closing financial centers which operate in close proximity to other centers. As the Corporation announced in April 2015, six financial centers were closed in September 2015 that operated in close proximity to other centers. As a result, the Corporation recorded $1.6 million in restructuring charges during the second quarter of 2015 and related to the Banking business segment. A roll-forward of the accrued restructuring expense for the six months ended June 30, 2016 is as follows:
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Fox Chase Bancorp Acquisition On July 1, 2016, the Corporation completed the merger of Fox Chase Bancorp into the Corporation and Fox Chase Bank into Univest Bank and Trust Co. Fox Chase Bank was a locally-managed institution with locations in Pennsylvania and New Jersey and headquartered in Hatboro, Pennsylvania. The Corporation's presence expanded in Bucks, Chester, Philadelphia and Montgomery counties in Pennsylvania and into Atlantic and Cape May counties in New Jersey, complementing and expanding the Corporation's existing network of financial centers. As of June 30, 2016, Fox Chase had approximately $785 million in loans, $739 million in deposits and $1.1 billion in total assets. In accordance with the terms of the Agreement and Plan of Merger, dated December 8, 2015, holders of shares of Fox Chase common stock received, in aggregate, $98.9 million in cash and 6,857,529 shares or approximately 35% of outstanding Corporation’s common stock. The transaction was valued at $243.0 million based on Corporation’s June 30, 2016 closing share price of $21.02 as quoted on NASDAQ. The results of the combined entity’s operations will be included in the Corporation's Consolidated Financial Statements from the date of acquisition. The acquisition of Fox Chase will be accounted for as a business combination using the acquisition method of accounting, which includes estimating the fair value of assets acquired, liabilities assumed and consideration paid as of the acquisition date. These preliminary estimates will be completed during the third quarter of 2016 and will be subject to adjustments during the up to one year measurement period after the acquisition. Subordinated Debt On July 1, 2016, the Corporation completed the issuance of $45.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the "Notes") due 2026 in a private placement transaction to institutional accredited investors. The net proceeds of the offering, which approximated $44.5 million, will be used for general corporate purposes and to support both organic growth as well as potential acquisitions should such opportunities arise. The Notes are expected to qualify as Tier 2 capital for regulatory capital purposes, subject to applicable limitations. The Notes bear interest at an annual fixed rate of 5.00% from the date of issuance until June 30, 2021, or any early redemption date, with the first interest payment on the Notes occurring on December 30, 2016 and semi-annually thereafter each June 30 and December 30, to but excluding June 30, 2021. From and including June 30, 2021 to but excluding the maturity date of June 30, 2026 (or any early redemption date), the Notes will bear interest at an annual rate equal to three-month LIBOR rate plus 3.90%, payable quarterly in arrears on each March 30, June 30, September 30 and December 30. Beginning with the interest payment date of June 30, 2021, the Corporation has the option on each interest payment date, subject to approval of the Federal Reserve Board, to redeem the Notes in whole or in part at a redemption price equal to 100% of the principal amount of the redeemed Notes, plus accrued and unpaid interest to the date of the redemption. The Corporation may also redeem the Notes, in whole but not in part, at any time upon the occurrence of certain tax, regulatory capital and Investment Company Act of 1940 Act events, subject in each case to the approval of the Federal Reserve. |
Summary of Significant Accounting Policies (Policies) |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Univest Corporation of Pennsylvania (the Corporation or Univest) and its wholly owned subsidiaries; the Corporation’s primary subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited interim consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current-year presentation. Operating results for the six-month period ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited financial statements and the notes thereto included in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2015, which was filed with the SEC on March 4, 2016. |
Use of Estimates | Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include fair value measurement of investment securities available-for-sale and assessment for impairment of certain investment securities, reserve for loan and lease losses, valuation of goodwill and other intangible assets, mortgage servicing rights, deferred tax assets and liabilities, benefit plans and stock-based compensation expense. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) to require businesses and other organizations to measure the current expected credit losses (CECL) on financial assets, such as loans, net investments in leases, certain debt securities, bond insurance and other receivables. The amendments affect entities holding financial assets and net investments in leases that are not accounted for at fair value through net income. Current GAAP requires an incurred loss methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. The amendments in this ASU replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonableness and supportable information to inform credit loss estimates. An entity should apply the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (modified-retrospective approach). Acquired credit impaired loans for which the guidance in Accounting Standards Codification (ASC) Topic 310-30 has been previously applied should prospectively apply the guidance in this ASU. A prospective transition approach is required for debt securities for which an other-than-temporary impairment has been recognized before the effective date. The ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those years for public business entities that are SEC filers, or January 1, 2020 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated that the allowance will increase upon adoption of CECL and that the increased allowance level will decrease regulatory capital and ratios. In March 2016, the FASB issued an ASU to simplify and improve employee share-based payment accounting. Under the new guidance, all excess tax benefits and tax deficiencies are recognized as an income tax benefit or expense in the income statement. The additional paid-in capital pool is eliminated. Excess tax benefits and deficiencies are recognized in the period they are deducted on the income tax return. Excess tax benefits are recorded along with other income tax cash flows as an operating activity in the statement of cash flows. The recognition of excess tax benefits and deficiencies and changes to diluted earnings per share are to be applied prospectively when this ASU is adopted. For tax benefits that were not previously recognized because the related tax deduction had not reduced taxes payable, entities record a cumulative-effect adjustment in retained earnings as of the beginning of the year of adoption. The Corporation does not record deferred tax benefits on incentive stock options when expense is accrued, therefore, the Corporation will not have a cumulative-effect adjustment when this ASU is adopted. Changes to the treatment of forfeitures will not impact the Corporation as the historical assumption for forfeitures was immaterial and not taken into account during valuations; the Corporation has recorded forfeitures as they occurred which is consistent with the new guidance. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities, or January 1, 2017 for the Corporation. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Corporation does not anticipate that the adoption of this ASU will have a material impact on the financial statements. In March 2016, the FASB issued an ASU to amend the guidance for hedge accounting to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in this ASU are effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2016, or January 1, 2017 for the Corporation. The Corporation does not anticipate the adoption of this ASU will have any impact on the financial statements. In February 2016, the FASB issued an ASU to revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The ASU is effective for the first interim period within annual periods beginning after December 15, 2018, or January 1, 2019, with early adoption permitted. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, the adoption of this ASU will impact the balance sheet for the recording of assets and liabilities for operating leases; any initial or continued impact of the recording of assets will have an impact on risk-based capital ratios under current regulatory guidance and possibly equity ratios. In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The ASU will require equity investments to be measured at fair value with changes in fair value recognized in net income. When fair value is not readily determinable, an entity may elect to measure the equity investment at cost, minus impairment, plus or minus any change in the investment’s observable price. The ASU will simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value. A valuation allowance on a deferred tax asset related to available-for-sale securities will need to be included. For financial liabilities that are measured at fair value, the ASU requires an entity to present separately, in other comprehensive income, any change in fair value resulting from a change in instrument-specific credit risk. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The amendments in this ASU are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017 or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements. In September 2015, the FASB issued an ASU simplifying the accounting for measurement-period adjustments related to business combinations. The ASU eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Under this ASU, measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. The ASU requires additional disclosures about the impact on current period income statement line items of adjustments that would have been recognized in prior periods if prior period information had been revised. The amendments in this ASU were effective for financial statements of public businesses issued for fiscal years and interim periods within those years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this guidance did not impact the Corporation's financial statements. In April 2015, the FASB issued an ASU simplifying the presentation of debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability shall be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The costs will continue to be amortized to interest expense using the effective interest method. The ASU was effective for financial statements of public businesses issued for fiscal years beginning after December 15, 2015, or January 1, 2016 for the Corporation. The adoption of this ASU did not impact the Corporation's balance sheet presentation as the Corporation followed this presentation consistent with the guidance in FASB Concepts Statement No. 6. In May 2014, the FASB issued an ASU regarding revenue from contracts with customers which clarifies the principles for recognizing revenue and develops a common standard for U.S. GAAP and International Financial Reporting Standards. The ASU establishes a core principle that would require an entity to identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. The ASU provides for improved disclosure requirements that require entities to disclose sufficient information that enables users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued an ASU clarifying the implementation guidance on the principal-versus-agent considerations in the revenue recognition standard by instructing the participants in the sale to determine whether they control the good or service and are entitled to the gross amount of the transaction or are acting as an agent and should collect only a fee or commission for arranging the sale. In April 2016, the FASB issued an ASU clarifying the identification of performance obligations and licensing. In May 2016, the FASB issued an ASU providing some limited improvements and practical expedients. The original effective date of the guidance relating to revenue from contracts with customers was deferred in August 2015 by one year. This guidance is now effective for fiscal years and interim periods within those years beginning after December 15, 2017, or January 1, 2018 for the Corporation. The Corporation is in the process of evaluating the impact of the adoption of this guidance on the Corporation's financial statements; however, it is anticipated the impact will be only related to timing. |
Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost and estimated fair value of held to maturity securities and available for sale securities by contractual maturity | The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at June 30, 2016 and December 31, 2015, by contractual maturity within each type:
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Information Related to Sales of Securities Available-for-Sale | The following table presents information related to sales of securities available-for-sale during the six months ended June 30, 2016 and 2015:
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Amount of Securities in Unrealized Loss Position | The following table shows the fair value of securities that were in an unrealized loss position at June 30, 2016 and December 31, 2015 by the length of time those securities were in a continuous loss position:
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Loans and Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Major Loan and Lease Categories |
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Schedule of Impaired Loans | The outstanding principal balance and carrying amount for acquired credit impaired loans at June 30, 2016 and December 31, 2015 were as follows:
The following table presents the changes in accretable yield on acquired credit impaired loans:
The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at June 30, 2016 and December 31, 2015. The impaired loans exclude loans acquired with deteriorated credit quality.
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Schedule of Age Analysis of Past Due Loans and Leases | The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at June 30, 2016 and December 31, 2015:
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Schedule of Nonperforming Loans and Leases | The following presents, by class of loans and leases, non-performing loans and leases at June 30, 2016 and December 31, 2015:
* Includes nonaccrual troubled debt restructured loans and lease modifications of $1.4 million and $93 thousand at June 30, 2016 and December 31, 2015, respectively. |
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Summary of Credit Quality Indicators | The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at June 30, 2016 and December 31, 2015. The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with a risk rating of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.
Commercial Credit Exposure Credit Risk by Internally Assigned Grades The following table presents classifications for originated loans:
The following table presents classifications for acquired loans:
The following table presents classifications for originated loans:
The following table presents classifications for acquired loans:
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Summary of Activity in the Reserve for Loan and Lease Losses | eserve for Loan and Lease Losses and Recorded Investment in Loans and Leases The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three and six months ended June 30, 2016 and 2015:
N/A – Not applicable *Includes charge-offs of $1.3 million on two real estate construction loans for one borrower which were subsequently transferre |
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Summary of Average Recorded Investment in Impaired Loans and Leases and Analysis of Interest on Impaired Loans | The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method.
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Schedule of Troubled Debt Restructured Loans | The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:
The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at June 30, 2016 and December 31, 2015:
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Summary of Concessions Granted on Restructured Loans | The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three and six months ended June 30, 2016 and 2015.
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Schedule of Accruing and Nonaccruing Troubled Debt Restructured Loans | The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:
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Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of the Corporation's goodwill by business segment for the six months ended June 30, 2016 were as follows:
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Components of Intangible Assets | The following table reflects the components of intangible assets at the dates indicated:
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Estimated Aggregate Amortization Expense | The estimated amortization expense of mortgage servicing rights for the remainder of 2016 and the succeeding fiscal years is as follows:
The estimated aggregate amortization expense for core deposit and customer related intangibles for the remainder of 2016 and the succeeding fiscal years is as follows:
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Changes in Mortgage Servicing Rights | Changes in the mortgage servicing rights balance are summarized as follows:
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Retirement Plans and Other Postretirement Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost (Income) | Components of net periodic benefit cost (income) were as follows:
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Earnings per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Computation for Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share:
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Accumulated Other Comprehensive (Loss) Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes | The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:
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Amounts Reclassified Out of Each Component of Accumulated Comprehensive (Loss) Income | The following table illustrates the amounts reclassified out of each component of accumulated comprehensive loss for the three and six months ended June 30, 2016 and 2015:
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Derivative Instruments and Hedging Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amounts and Fair Values of Derivatives Not Designated as Hedging Instruments | The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at June 30, 2016 and December 31, 2015:
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Notional Amounts and Fair Value of Derivatives Designated as Hedging Instruments | The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at June 30, 2016 and December 31, 2015:
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Income for Derivatives Not Designated as Hedging Instruments | For the three and six months ended June 30, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives not designated as hedging instruments are shown in the table below:
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Income for Derivatives Designated as Hedging Instruments | For the three and six months ended June 30, 2016 and 2015, the amounts included in the consolidated statements of income for derivatives designated as hedging instruments are shown in the table below:
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | At June 30, 2016 and December 31, 2015, the amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments are shown in the table below:
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Fair Value Disclosures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the assets and liabilities measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015, classified using the fair value hierarchy:
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Contingent Consideration Liability Change in Amount | The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the six months ended June 30, 2016 and 2015:
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Assets Measured at Fair Value on Non-Recurring Basis | The following table represents assets measured at fair value on a non-recurring basis at June 30, 2016 and December 31, 2015:
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Assets, Liabilities and Off-Balance Sheet Items Not Measured at Fair Value | The following table presents assets and liabilities and off-balance sheet items not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed at June 30, 2016 and December 31, 2015. The disclosed fair values are classified using the fair value hierarchy.
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting | The following table provides total assets by reportable operating segment as of the dates indicated.
The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three and six months ended June 30, 2016 and 2015.
*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. Generally speaking, these expenses are allocated based upon number of employees and square footage utilized. |
Restructuring Charges (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Roll-Forward of Accrued Restructuring Expense | A roll-forward of the accrued restructuring expense for the six months ended June 30, 2016 is as follows:
|
Acquisition - Narrative (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Jan. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Business Acquisition [Line Items] | |||
Federal funds sold | $ 48,500 | $ 0 | |
Fox Chase Bank [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase price | 243,000 | ||
Federal funds sold | 48,500 | ||
Average amount of federal funds sold to correspondent bank | $ 3,500 | ||
Fox Chase Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Business Acquisition [Line Items] | |||
Basis spread of interest rate (LIBOR) | 0.05% |
Investment Securities - Information Related to Sales of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Securities available-for-sale: | ||
Proceeds from sales | $ 73,991 | $ 37,546 |
Gross realized gains on sales | 539 | 294 |
Gross realized losses on sales | 82 | 22 |
Tax expense related to net realized gains on sales | $ 160 | $ 95 |
Investment Securities - Narrative (Detail) $ in Millions |
Jun. 30, 2016
USD ($)
Investment
|
Dec. 31, 2015
USD ($)
Investment
|
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Carrying value of securities pledged to secure public deposits and for other purposes as required by law | $ | $ 128.4 | $ 210.1 |
Number of investments in non-federal issuer representing more than 10% of shareholders' equity | Investment | 0 | 0 |
Maximum investment in any single non-federal issuer representing shareholders' equity | 10.00% | 10.00% |
Loans and Leases - Acquired Credit Impaired Loans (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Receivables [Abstract] | ||
Outstanding principal balance | $ 1,814 | $ 3,551 |
Carrying amount | 942 | 1,253 |
Allowance for loan losses | 0 | $ 8 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning of period | 144 | |
Reclassification from nonaccretable difference | 133 | |
Accretable yield amortized to interest income | (184) | |
Disposals | (34) | |
End of period | $ 59 |
Loans and Leases - Accruing and Nonaccruing Troubled Debt Restructured Loans with Payment Defaults (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
loan
|
Mar. 31, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
loan
|
Jun. 30, 2016
USD ($)
loan
|
Jun. 30, 2015
USD ($)
loan
|
|
Accrual Troubled Debt Restructuring Loans [Member] | |||||
Accruing and nonaccrual troubled debt restructured loans with payment default | |||||
Number of Loans | loan | 0 | 0 | 0 | 0 | |
Recorded Investment | $ | $ 0 | $ 50 | $ 0 | $ 0 | $ 0 |
Nonaccrual Troubled Debt Restructuring Loans [Member] | |||||
Accruing and nonaccrual troubled debt restructured loans with payment default | |||||
Number of Loans | loan | 0 | 0 | 1 | 2 | |
Recorded Investment | $ | $ 0 | $ 0 | $ 50 | $ 200 | |
Nonaccrual Troubled Debt Restructuring Loans [Member] | Commercial, Financial and Agricultural [Member] | |||||
Accruing and nonaccrual troubled debt restructured loans with payment default | |||||
Number of Loans | loan | 0 | 0 | 1 | 2 | |
Recorded Investment | $ | $ 0 | $ 0 | $ 50 | $ 200 |
Loans and Leases - Mortgages in Process of Foreclosure (Details) - Residential Real Estate [Member] - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Financing Receivable, Modifications [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 337 | $ 373 |
Real Estate-Residential Secured for Personal Purpose [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | 277 | 313 |
Real Estate-Home Equity Secured for Personal Purpose [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Mortgage Loans in Process of Foreclosure, Amount | $ 60 | $ 60 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Aggregate fair value of mortgage servicing rights | $ 6.8 | $ 8.0 |
Range of discount rates used for valuation of mortgage servicing rights | 10.00% | 10.00% |
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 112,657 |
Goodwill, Acquired During Period | 0 |
Goodwill, Ending Balance | 112,657 |
Banking [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 78,574 |
Goodwill, Acquired During Period | 0 |
Goodwill, Ending Balance | 78,574 |
Wealth Management [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 15,434 |
Goodwill, Acquired During Period | 0 |
Goodwill, Ending Balance | 15,434 |
Insurance [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 18,649 |
Goodwill, Acquired During Period | 0 |
Goodwill, Ending Balance | $ 18,649 |
Goodwill and Other Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 26,911 | $ 27,980 |
Accumulated Amortization and Fair Value Adjustments | 15,234 | 15,360 |
Net Carrying Amount | 11,677 | 12,620 |
Core Deposit Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,520 | 1,520 |
Accumulated Amortization and Fair Value Adjustments | 401 | 276 |
Net Carrying Amount | 1,119 | 1,244 |
Customer Related Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,381 | 14,227 |
Accumulated Amortization and Fair Value Adjustments | 7,719 | 8,728 |
Net Carrying Amount | 4,662 | 5,499 |
Mortgage Servicing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 13,010 | 12,233 |
Accumulated Amortization and Fair Value Adjustments | 7,114 | 6,356 |
Net Carrying Amount | $ 5,896 | $ 5,877 |
Goodwill and Other Intangible Assets - Estimated Amortization Expense for Core Deposit and Customer Related Intangibles (Details) $ in Thousands |
Jun. 30, 2016
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2016 | $ 909 |
2017 | 1,544 |
2018 | 1,170 |
2019 | 847 |
2020 | 577 |
Thereafter | $ 734 |
Goodwill and Other Intangible Assets - Changes in Mortgage Servicing Rights (Details) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Beginning of period | $ 5,839 | $ 5,523 | $ 5,877 | $ 5,509 |
Servicing rights capitalized | 466 | 499 | 777 | 881 |
Amortization of servicing rights | (409) | (326) | (758) | (694) |
Changes in valuation allowance | 0 | 0 | 0 | 0 |
End of period | 5,896 | 5,696 | 5,896 | 5,696 |
Mortgage loans serviced for others | $ 889,639 | $ 832,318 | $ 889,639 | $ 832,318 |
Goodwill and Other Intangible Assets - Estimated Amortization Expense of Mortgage Servicing Rights (Details) $ in Thousands |
Jun. 30, 2016
USD ($)
|
---|---|
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2016 | $ 909 |
2017 | 1,544 |
2018 | 1,170 |
2019 | 847 |
2020 | 577 |
Thereafter | 734 |
Mortgage Servicing Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2016 | 559 |
2017 | 1,024 |
2018 | 846 |
2019 | 690 |
2020 | 560 |
Thereafter | $ 2,217 |
Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Accrued interest or penalties | $ 0 | $ 0 |
Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years | 2012 | |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Open tax years | 2015 |
Retirement Plans and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Employee hire date no longer eligible for noncontributory retirement plan | Dec. 08, 2009 | |
Defined Benefit Plans, estimated future employer contributions in current fiscal year | $ 2,000 | |
Retirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, non-qualified plans, estimated employer contributions for next fiscal year | $ 160 | |
Defined benefit plan, contributions by employer | 80 | |
Defined benefit plan, benefits paid | 1,200 | |
Other Post Retirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected employer contributions for next fiscal year | $ 117 | |
Defined benefit plan, contributions by employer | 41 | |
Defined benefit plan, benefits paid | $ 41 |
Retirement Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Retirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 170 | $ 193 | $ 341 | $ 386 |
Interest cost | 519 | 488 | 1,037 | 976 |
Expected return on plan assets | (753) | (756) | (1,507) | (1,512) |
Amortization of net actuarial loss | 322 | 326 | 645 | 654 |
Accretion of prior service cost | (70) | (70) | (141) | (140) |
Net periodic benefit cost | 188 | 181 | 375 | 364 |
Other Post Retirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 11 | 14 | 23 | 29 |
Interest cost | 33 | 27 | 66 | 55 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 7 | 14 | 13 | 27 |
Accretion of prior service cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 51 | $ 55 | $ 102 | $ 111 |
Borrowings Narrative (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Disclosure [Abstract] | ||
Short-term Federal Home Loan Bank advances | $ 156,000 | |
Customer repurchase agreements | 24,300 | $ 24,200 |
Bridge loan | 80,000 | |
Subordinated notes | $ 49,450 | $ 49,377 |
Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income | $ 5,240 | $ 6,466 | $ 12,529 | $ 12,582 |
Net income allocated to unvested restricted stock | (40) | (49) | (98) | (93) |
Net income allocated to common shares | $ 5,200 | $ 6,417 | $ 12,431 | $ 12,489 |
Denominator for basic earnings per share—weighted-average shares outstanding | 19,434 | 19,501 | 19,418 | 19,638 |
Effect of dilutive securities—employee stock options | 35 | 29 | 33 | 26 |
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding | 19,469 | 19,530 | 19,451 | 19,664 |
Basic earnings per share | $ 0.27 | $ 0.33 | $ 0.64 | $ 0.64 |
Diluted earnings per share | $ 0.27 | $ 0.33 | $ 0.64 | $ 0.64 |
Average anti-dilutive options and awards excluded from computation of diluted earnings per share | 619 | 567 | 603 | 555 |
Fair Value Disclosures - Assets Measured at Fair Value on Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans held for investment | $ 43,624 | $ 48,611 |
Total assets | 43,624 | 48,611 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans held for investment | 0 | 0 |
Total assets | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans held for investment | 0 | 0 |
Total assets | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans held for investment | 43,624 | 48,611 |
Total assets | $ 43,624 | $ 48,611 |
Segment Reporting (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||||
Total assets | $ 3,107,617 | $ 2,780,578 | $ 3,107,617 | $ 2,780,578 | $ 2,879,451 |
Interest income | 25,994 | 25,513 | 51,603 | 50,251 | |
Interest expense | 2,451 | 2,133 | 4,662 | 3,567 | |
Net interest income | 23,543 | 23,380 | 46,941 | 46,684 | |
Provision for loan and lease losses | 830 | 1,141 | 1,156 | 2,215 | |
Noninterest income | 14,119 | 13,351 | 28,075 | 26,782 | |
Intangible expenses | 996 | 893 | 1,766 | 1,679 | |
Other noninterest expense | 28,550 | 25,939 | 54,719 | 52,564 | |
Intersegment (revenue) expense | 0 | 0 | 0 | 0 | |
Income before income taxes | 7,286 | 8,758 | 17,375 | 17,008 | |
Income taxes | 2,046 | 2,292 | 4,846 | 4,426 | |
Net income | 5,240 | 6,466 | 12,529 | 12,582 | |
Capital expenditures | 2,016 | 1,334 | 4,194 | 2,651 | |
Banking [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 2,925,285 | 2,701,275 | 2,925,285 | 2,701,275 | 2,797,746 |
Interest income | 25,986 | 25,505 | 51,586 | 50,235 | |
Interest expense | 2,163 | 2,133 | 4,374 | 3,567 | |
Net interest income | 23,823 | 23,372 | 47,212 | 46,668 | |
Provision for loan and lease losses | 830 | 1,141 | 1,156 | 2,215 | |
Noninterest income | 5,610 | 4,858 | 10,283 | 9,308 | |
Intangible expenses | 66 | 73 | 133 | 147 | |
Other noninterest expense | 19,733 | 20,499 | 38,475 | 41,721 | |
Intersegment (revenue) expense | (479) | (495) | (990) | (1,029) | |
Income before income taxes | 9,283 | 7,012 | 18,721 | 12,922 | |
Income taxes | 2,291 | 1,814 | 4,648 | 2,976 | |
Net income | 6,992 | 5,198 | 14,073 | 9,946 | |
Capital expenditures | 1,481 | 1,321 | 3,320 | 2,518 | |
Wealth Management [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 31,392 | 31,605 | 31,392 | 31,605 | 33,950 |
Interest income | 1 | 0 | 3 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 1 | 0 | 3 | 0 | |
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |
Noninterest income | 4,812 | 4,964 | 9,384 | 9,588 | |
Intangible expenses | 304 | 85 | 607 | 479 | |
Other noninterest expense | 3,247 | 3,059 | 6,305 | 6,014 | |
Intersegment (revenue) expense | 211 | 195 | 430 | 417 | |
Income before income taxes | 1,051 | 1,625 | 2,045 | 2,678 | |
Income taxes | 395 | 623 | 778 | 1,037 | |
Net income | 656 | 1,002 | 1,267 | 1,641 | |
Capital expenditures | 9 | 0 | 24 | 8 | |
Insurance [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 25,309 | 25,389 | 25,309 | 25,389 | 24,436 |
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 0 | 0 | 0 | 0 | |
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |
Noninterest income | 3,620 | 3,538 | 8,340 | 7,793 | |
Intangible expenses | 626 | 735 | 1,026 | 1,053 | |
Other noninterest expense | 2,937 | 2,683 | 6,056 | 5,352 | |
Intersegment (revenue) expense | 268 | 300 | 560 | 612 | |
Income before income taxes | (211) | (180) | 698 | 776 | |
Income taxes | (81) | (72) | 296 | 326 | |
Net income | (130) | (108) | 402 | 450 | |
Capital expenditures | 11 | 8 | 21 | 47 | |
Other Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 125,631 | 22,309 | 125,631 | 22,309 | $ 23,319 |
Interest income | 7 | 8 | 14 | 16 | |
Interest expense | 288 | 0 | 288 | 0 | |
Net interest income | (281) | 8 | (274) | 16 | |
Provision for loan and lease losses | 0 | 0 | 0 | 0 | |
Noninterest income | 77 | (9) | 68 | 93 | |
Intangible expenses | 0 | 0 | 0 | 0 | |
Other noninterest expense | 2,633 | (302) | 3,883 | (523) | |
Intersegment (revenue) expense | 0 | 0 | 0 | 0 | |
Income before income taxes | (2,837) | 301 | (4,089) | 632 | |
Income taxes | (559) | (73) | (876) | 87 | |
Net income | (2,278) | 374 | (3,213) | 545 | |
Capital expenditures | $ 515 | $ 5 | $ 829 | $ 78 |
Restructuring Charges - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 1,642 | $ 0 | $ 1,642 |
Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1,600 |
Restructuring Charges - Roll-Forward of Accrued Restructuring Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Restructuring Reserve [Roll Forward] | ||||
Accrued at January 1, 2016 | $ 1,062 | |||
Restructuring charges | $ 0 | $ 1,642 | 0 | $ 1,642 |
Payments | (157) | |||
Accelerated depreciation | 0 | |||
Accrued at June 30, 2016 | 905 | 905 | ||
Write-downs and retirements of fixed assets | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued at January 1, 2016 | 228 | |||
Payments | 0 | |||
Accelerated depreciation | 0 | |||
Accrued at June 30, 2016 | 228 | 228 | ||
Lease cancellations | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued at January 1, 2016 | 834 | |||
Payments | (157) | |||
Accelerated depreciation | 0 | |||
Accrued at June 30, 2016 | $ 677 | $ 677 |
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