x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
PEOPLES BANCORP INC. | ||||||||
(Exact name of Registrant as specified in its charter) | ||||||||
Ohio | 31-0987416 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
138 Putnam Street, P.O. Box 738, Marietta, Ohio | 45750 | |||||||
(Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: | (740) 373-3155 | |||||||
Not Applicable | ||||||||
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o | Emerging growth company o |
Table of Contents | |
September 30, 2017 | December 31, 2016 | |||||
(Dollars in thousands) | ||||||
Assets | ||||||
Cash and due from banks | $ | 53,585 | $ | 58,129 | ||
Interest-bearing deposits in other banks | 16,458 | 8,017 | ||||
Total cash and cash equivalents | 70,043 | 66,146 | ||||
Available-for-sale investment securities, at fair value (amortized cost of $792,810 at September 30, 2017 and $777,017 at December 31, 2016) | 797,021 | 777,940 | ||||
Held-to-maturity investment securities, at amortized cost (fair value of $42,808 at September 30, 2017 and $43,227 at December 31, 2016) | 42,163 | 43,144 | ||||
Other investment securities, at cost | 38,371 | 38,371 | ||||
Total investment securities | 877,555 | 859,455 | ||||
Loans, net of deferred fees and costs | 2,327,035 | 2,224,936 | ||||
Allowance for loan losses | (18,992 | ) | (18,429 | ) | ||
Net loans | 2,308,043 | 2,206,507 | ||||
Loans held for sale | 3,653 | 4,022 | ||||
Bank premises and equipment, net | 51,777 | 53,616 | ||||
Bank owned life insurance | 61,696 | 60,225 | ||||
Goodwill | 132,631 | 132,631 | ||||
Other intangible assets | 11,228 | 13,387 | ||||
Other assets | 35,786 | 36,359 | ||||
Total assets | $ | 3,552,412 | $ | 3,432,348 | ||
Liabilities | ||||||
Deposits: | ||||||
Non-interest-bearing | $ | 724,846 | $ | 734,421 | ||
Interest-bearing | 1,939,836 | 1,775,301 | ||||
Total deposits | 2,664,682 | 2,509,722 | ||||
Short-term borrowings | 193,717 | 305,607 | ||||
Long-term borrowings | 195,890 | 145,155 | ||||
Accrued expenses and other liabilities | 40,737 | 36,603 | ||||
Total liabilities | 3,095,026 | 2,997,087 | ||||
Stockholders’ equity | ||||||
Preferred stock, no par value, 50,000 shares authorized, no shares issued at September 30, 2017 and December 31, 2016 | — | — | ||||
Common stock, no par value, 24,000,000 shares authorized, 18,948,358 shares issued at September 30, 2017 and 18,939,091 shares issued at December 31, 2016, including shares in treasury | 344,831 | 344,404 | ||||
Retained earnings | 128,465 | 110,294 | ||||
Accumulated other comprehensive income (loss), net of deferred income taxes | 51 | (1,554 | ) | |||
Treasury stock, at cost, 703,530 shares at September 30, 2017 and 795,758 shares at December 31, 2016 | (15,961 | ) | (17,883 | ) | ||
Total stockholders’ equity | 457,386 | 435,261 | ||||
Total liabilities and stockholders’ equity | $ | 3,552,412 | $ | 3,432,348 |
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||
Interest income: | |||||||||||||
Interest and fees on loans | $ | 26,370 | $ | 23,493 | $ | 76,133 | $ | 69,850 | |||||
Interest and dividends on taxable investment securities | 5,615 | 4,456 | 15,280 | 13,875 | |||||||||
Interest on tax-exempt investment securities | 701 | 771 | 2,257 | 2,332 | |||||||||
Other interest income | 42 | 10 | 83 | 37 | |||||||||
Total interest income | 32,728 | 28,730 | 93,753 | 86,094 | |||||||||
Interest expense: | |||||||||||||
Interest on deposits | 1,865 | 1,427 | 5,081 | 4,531 | |||||||||
Interest on short-term borrowings | 369 | 109 | 853 | 301 | |||||||||
Interest on long-term borrowings | 1,274 | 1,071 | 3,564 | 3,064 | |||||||||
Total interest expense | 3,508 | 2,607 | 9,498 | 7,896 | |||||||||
Net interest income | 29,220 | 26,123 | 84,255 | 78,198 | |||||||||
Provision for loan losses | 1,086 | 1,146 | 2,657 | 2,828 | |||||||||
Net interest income after provision for loan losses | 28,134 | 24,977 | 81,598 | 75,370 | |||||||||
Non-interest income: | |||||||||||||
Insurance income | 3,345 | 3,137 | 10,861 | 10,934 | |||||||||
Trust and investment income | 2,838 | 2,692 | 8,497 | 7,850 | |||||||||
Electronic banking income | 2,544 | 2,765 | 7,692 | 7,867 | |||||||||
Deposit account service charges | 2,407 | 2,833 | 7,130 | 7,999 | |||||||||
Net gain (loss) on investment securities | 1,861 | (1 | ) | 2,219 | 862 | ||||||||
Mortgage banking income | 535 | 427 | 1,389 | 852 | |||||||||
Bank owned life insurance income | 482 | 491 | 1,471 | 911 | |||||||||
Commercial loan swap fees | 76 | 569 | 995 | 997 | |||||||||
Net (loss) gain on asset disposals and other transactions | (25 | ) | (224 | ) | 81 | (1,024 | ) | ||||||
Other non-interest income | 383 | 624 | 1,499 | 1,549 | |||||||||
Total non-interest income | 14,446 | 13,313 | 41,834 | 38,797 | |||||||||
Non-interest expense: | |||||||||||||
Salaries and employee benefit costs | 15,141 | 14,584 | 45,686 | 42,881 | |||||||||
Net occupancy and equipment expense | 2,619 | 2,768 | 7,980 | 8,155 | |||||||||
Electronic banking expense | 1,448 | 1,650 | 4,487 | 4,568 | |||||||||
Professional fees | 1,393 | 1,661 | 4,532 | 5,243 | |||||||||
Data processing and software expense | 1,092 | 741 | 3,330 | 2,503 | |||||||||
Amortization of other intangible assets | 869 | 1,008 | 2,603 | 3,023 | |||||||||
Franchise tax expense | 583 | 529 | 1,750 | 1,550 | |||||||||
Marketing expense | 488 | 380 | 1,122 | 1,192 | |||||||||
FDIC insurance expense | 449 | 549 | 1,339 | 1,706 | |||||||||
Communication expense | 334 | 518 | 1,134 | 1,730 | |||||||||
Foreclosed real estate and other loan expenses | 214 | 189 | 589 | 540 | |||||||||
Other non-interest expense | 1,928 | 2,265 | 6,017 | 6,538 | |||||||||
Total non-interest expense | 26,558 | 26,842 | 80,569 | 79,629 | |||||||||
Income before income taxes | 16,022 | 11,448 | 42,863 | 34,538 | |||||||||
Income tax expense | 5,127 | 3,656 | 13,393 | 10,789 | |||||||||
Net income | $ | 10,895 | $ | 7,792 | $ | 29,470 | $ | 23,749 | |||||
Earnings per common share - basic | $ | 0.60 | $ | 0.43 | $ | 1.62 | $ | 1.31 | |||||
Earnings per common share - diluted | $ | 0.60 | $ | 0.43 | $ | 1.61 | $ | 1.31 | |||||
Weighted-average number of common shares outstanding - basic | 18,056,202 | 17,993,443 | 18,043,692 | 18,015,249 | |||||||||
Weighted-average number of common shares outstanding - diluted | 18,213,533 | 18,110,710 | 18,199,959 | 18,123,660 | |||||||||
Cash dividends declared | $ | 4,020 | $ | 2,912 | $ | 11,299 | $ | 8,564 | |||||
Cash dividends declared per common share | $ | 0.22 | $ | 0.16 | $ | 0.62 | $ | 0.47 |
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||
Net income | $ | 10,895 | $ | 7,792 | $ | 29,470 | $ | 23,749 | |||||
Other comprehensive income: | |||||||||||||
Available-for-sale investment securities: | |||||||||||||
Gross unrealized holding (loss) gain arising in the period | (236 | ) | (4,068 | ) | 5,448 | 14,681 | |||||||
Related tax benefit (expense) | 83 | 1,424 | (1,906 | ) | (5,139 | ) | |||||||
Less: reclassification adjustment for net gain (loss) included in net income | 1,861 | (1 | ) | 2,219 | 862 | ||||||||
Related tax expense | (652 | ) | — | (777 | ) | (302 | ) | ||||||
Net effect on other comprehensive (loss) income | (1,362 | ) | (2,643 | ) | 2,100 | 8,982 | |||||||
Defined benefit plans: | |||||||||||||
Net loss arising during the period | (1 | ) | — | (1 | ) | — | |||||||
Amortization of unrecognized loss and service cost on benefit plans | 25 | 21 | 72 | 66 | |||||||||
Related tax expense | (9 | ) | (9 | ) | (25 | ) | (22 | ) | |||||
Net effect on other comprehensive income | 15 | 12 | 46 | 44 | |||||||||
Cash flow hedges: | |||||||||||||
Net (loss) gain arising during the period | (63 | ) | 68 | (832 | ) | (184 | ) | ||||||
Related tax benefit (expense) | 22 | (24 | ) | 291 | 64 | ||||||||
Net effect on other comprehensive (loss) income | (41 | ) | 44 | (541 | ) | (120 | ) | ||||||
Total other comprehensive (loss) income, net of tax expense | (1,388 | ) | (2,587 | ) | 1,605 | 8,906 | |||||||
Total comprehensive income | $ | 9,507 | $ | 5,205 | $ | 31,075 | $ | 32,655 |
Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | ||||||||||||||
Common Shares | Retained Earnings | Treasury Stock | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance, December 31, 2016 | $ | 344,404 | $ | 110,294 | $ | (1,554 | ) | $ | (17,883 | ) | $ | 435,261 | |||
Net income | — | 29,470 | — | — | 29,470 | ||||||||||
Other comprehensive income, net of tax | — | — | 1,605 | — | 1,605 | ||||||||||
Cash dividends declared | — | (11,299 | ) | — | — | (11,299 | ) | ||||||||
Exercise of stock appreciation rights | (6 | ) | — | — | 6 | — | |||||||||
Reissuance of treasury stock for common stock awards | (1,467 | ) | — | — | 1,467 | — | |||||||||
Reissuance of treasury stock for deferred compensation plan for Boards of Directors | — | — | — | 500 | 500 | ||||||||||
Repurchase of treasury stock in connection with employee incentive plan and under compensation plan for Boards of Directors | — | — | — | (411 | ) | (411 | ) | ||||||||
Common shares issued under dividend reinvestment plan | 385 | — | — | — | 385 | ||||||||||
Common shares issued under compensation plan for Boards of Directors | 72 | — | — | 168 | 240 | ||||||||||
Common shares issued under employee stock purchase plan | 81 | — | — | 192 | 273 | ||||||||||
Stock-based compensation expense | 1,362 | — | — | — | 1,362 | ||||||||||
Balance, September 30, 2017 | $ | 344,831 | $ | 128,465 | $ | 51 | $ | (15,961 | ) | $ | 457,386 |
Nine Months Ended | ||||||
September 30, | ||||||
(Dollars in thousands) | 2017 | 2016 | ||||
Net cash provided by operating activities | $ | 45,730 | $ | 42,195 | ||
Investing activities: | ||||||
Available-for-sale investment securities: | ||||||
Purchases | (140,791 | ) | (95,481 | ) | ||
Proceeds from sales | 7,381 | 30,622 | ||||
Proceeds from principal payments, calls and prepayments | 111,315 | 93,172 | ||||
Held-to-maturity investment securities: | ||||||
Purchases | (1,310 | ) | — | |||
Proceeds from principal payments | 1,997 | 1,747 | ||||
Net increase in loans | (99,829 | ) | (94,149 | ) | ||
Net expenditures for bank premises and equipment | (3,016 | ) | (4,893 | ) | ||
Proceeds from sales of other real estate owned | 494 | 148 | ||||
Purchase of bank owned life insurance | — | (35,000 | ) | |||
Business acquisitions, net of cash received | (450 | ) | (244 | ) | ||
Return of (investment in) limited partnership and tax credit funds | 6 | (2,954 | ) | |||
Net cash used in investing activities | (124,203 | ) | (107,032 | ) | ||
Financing activities: | ||||||
Net (decrease) increase in non-interest-bearing deposits | (9,575 | ) | 27,529 | |||
Net increase in interest-bearing deposits | 164,513 | 12,040 | ||||
Net (decrease) increase in short-term borrowings | (111,890 | ) | 2,421 | |||
Proceeds from long-term borrowings | 54,403 | 55,000 | ||||
Payments on long-term borrowings | (3,823 | ) | (21,899 | ) | ||
Cash dividends paid | (10,855 | ) | (8,215 | ) | ||
Repurchase of treasury stock under share repurchase program | — | (4,965 | ) | |||
Repurchase of treasury stock in connection with employee incentive plan and compensation plan for Boards of Directors to be held as treasury stock | (411 | ) | (369 | ) | ||
Proceeds from issuance of common shares | 8 | 15 | ||||
Net cash provided by financing activities | 82,370 | 61,557 | ||||
Net increase (decrease) in cash and cash equivalents | 3,897 | (3,280 | ) | |||
Cash and cash equivalents at beginning of period | 66,146 | 71,115 | ||||
Cash and cash equivalents at end of period | $ | 70,043 | $ | 67,835 |
• | Transition provisions for public business entities that otherwise would not meet the definition of a public business entity except for a requirement to include, or the inclusion of, its financial statements or financial information in another public business entity's filing. |
Fair Value Measurements at Reporting Date Using | ||||||||||||
(Dollars in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Fair Value | ||||||||||||
September 30, 2017 | ||||||||||||
Obligations of: | ||||||||||||
States and political subdivisions | $ | 104,560 | $ | — | $ | 104,560 | $ | — | ||||
Residential mortgage-backed securities | 672,106 | — | 672,106 | — | ||||||||
Commercial mortgage-backed securities | 7,128 | — | 7,128 | — | ||||||||
Bank-issued trust preferred securities | 5,154 | — | 5,154 | — | ||||||||
Equity securities | 8,073 | 7,914 | 159 | — | ||||||||
Total available-for-sale securities | $ | 797,021 | $ | 7,914 | $ | 789,107 | $ | — | ||||
December 31, 2016 | ||||||||||||
Obligations of: | ||||||||||||
U.S. government sponsored agencies | $ | 1,000 | $ | — | $ | 1,000 | $ | — | ||||
States and political subdivisions | 117,230 | — | 117,230 | — | ||||||||
Residential mortgage-backed securities | 626,567 | — | 626,567 | — | ||||||||
Commercial mortgage-backed securities | 19,291 | — | 19,291 | — | ||||||||
Bank-issued trust preferred securities | 4,899 | — | 4,899 | — | ||||||||
Equity securities | 8,953 | 8,734 | 219 | — | ||||||||
Total available-for-sale securities | $ | 777,940 | $ | 8,734 | $ | 769,206 | $ | — |
Fair Value at Reporting Date Using | ||||||||||||
(Dollars in thousands) | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||
September 30, 2017 | ||||||||||||
Obligations of: | ||||||||||||
States and political subdivisions | $ | 4,463 | $ | — | $ | 4,463 | $ | — | ||||
Residential mortgage-backed securities | 33,690 | — | 33,690 | — | ||||||||
Commercial mortgage-backed securities | 4,655 | — | 4,655 | — | ||||||||
Total held-to-maturity securities | $ | 42,808 | $ | — | $ | 42,808 | $ | — | ||||
December 31, 2016 | ||||||||||||
Obligations of: | ||||||||||||
States and political subdivisions | $ | 4,041 | $ | — | $ | 4,041 | $ | — | ||||
Residential mortgage-backed securities | 33,762 | — | 33,762 | — | ||||||||
Commercial mortgage-backed securities | 5,424 | — | 5,424 | — | ||||||||
Total held-to-maturity securities | $ | 43,227 | $ | — | $ | 43,227 | $ | — |
September 30, 2017 | December 31, 2016 | ||||||||||||
(Dollars in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||
Financial assets: | |||||||||||||
Cash and cash equivalents | $ | 70,043 | $ | 70,043 | $ | 66,146 | $ | 66,146 | |||||
Investment securities | 877,555 | 878,200 | 859,455 | 859,538 | |||||||||
Loans (1) | 2,311,696 | 2,252,054 | 2,210,529 | 2,152,544 | |||||||||
Bank premises and equipment, net | 51,777 | 51,777 | 53,616 | 53,616 | |||||||||
Bank owned life insurance | 61,696 | 61,696 | 60,225 | 60,225 | |||||||||
Financial liabilities: | |||||||||||||
Deposits | $ | 2,664,682 | $ | 2,664,513 | $ | 2,509,722 | $ | 2,512,647 | |||||
Short-term borrowings | 193,717 | 193,717 | 305,607 | 305,607 | |||||||||
Long-term borrowings | 195,890 | 195,857 | 145,155 | 145,106 | |||||||||
Cash flow hedges (2) | 916 | 916 | 1,779 | 1,779 |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
September 30, 2017 | ||||||||||||
Obligations of: | ||||||||||||
States and political subdivisions | $ | 102,415 | $ | 2,343 | $ | (198 | ) | $ | 104,560 | |||
Residential mortgage-backed securities | 676,576 | 3,965 | (8,435 | ) | 672,106 | |||||||
Commercial mortgage-backed securities | 7,105 | 40 | (17 | ) | 7,128 | |||||||
Bank-issued trust preferred securities | 5,188 | 147 | (181 | ) | 5,154 | |||||||
Equity securities | 1,526 | 6,611 | (64 | ) | 8,073 | |||||||
Total available-for-sale securities | $ | 792,810 | $ | 13,106 | $ | (8,895 | ) | $ | 797,021 | |||
December 31, 2016 | ||||||||||||
Obligations of: | ||||||||||||
U.S. government sponsored agencies | $ | 1,000 | $ | — | $ | — | $ | 1,000 | ||||
States and political subdivisions | 115,657 | 1,836 | (263 | ) | 117,230 | |||||||
Residential mortgage-backed securities | 633,802 | 3,758 | (10,993 | ) | 626,567 | |||||||
Commercial mortgage-backed securities | 19,337 | 41 | (87 | ) | 19,291 | |||||||
Bank-issued trust preferred securities | 5,169 | 91 | (361 | ) | 4,899 | |||||||
Equity securities | 2,052 | 6,969 | (68 | ) | 8,953 | |||||||
Total available-for-sale securities | $ | 777,017 | $ | 12,695 | $ | (11,772 | ) | $ | 777,940 |
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||
Gross gains realized | $ | 1,877 | $ | — | $ | 2,235 | $ | 863 | |||||
Gross losses realized | 16 | 1 | 16 | 1 | |||||||||
Net gain (loss) realized | $ | 1,861 | $ | (1 | ) | $ | 2,219 | $ | 862 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | ||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||
States and political subdivisions | $ | 7,622 | $ | 62 | 6 | $ | 3,957 | $ | 136 | 1 | $ | 11,579 | $ | 198 | ||||||||||
Residential mortgage-backed securities | 300,639 | 3,348 | 77 | 163,685 | 5,087 | 51 | 464,324 | 8,435 | ||||||||||||||||
Commercial mortgage-backed securities | 3,875 | 17 | 2 | — | — | — | 3,875 | 17 | ||||||||||||||||
Bank-issued trust preferred securities | — | — | — | 2,818 | 181 | 3 | 2,818 | 181 | ||||||||||||||||
Equity securities | — | — | — | 112 | 64 | 1 | 112 | 64 | ||||||||||||||||
Total | $ | 312,136 | $ | 3,427 | 85 | $ | 170,572 | $ | 5,468 | 56 | $ | 482,708 | $ | 8,895 | ||||||||||
December 31, 2016 | ||||||||||||||||||||||||
Obligations of: | ||||||||||||||||||||||||
States and political subdivisions | $ | 23,501 | $ | 263 | 28 | $ | — | $ | — | — | $ | 23,501 | $ | 263 | ||||||||||
Residential mortgage-backed securities | 427,088 | 8,495 | 108 | 46,631 | 2,498 | 22 | 473,719 | 10,993 | ||||||||||||||||
Commercial mortgage-backed securities | 7,770 | 87 | 4 | — | — | — | 7,770 | 87 | ||||||||||||||||
Bank-issued trust preferred securities | — | — | — | 2,637 | 361 | 3 | 2,637 | 361 | ||||||||||||||||
Equity securities | 263 | 3 | 1 | 110 | 65 | 1 | 373 | 68 | ||||||||||||||||
Total | $ | 458,622 | $ | 8,848 | 141 | $ | 49,378 | $ | 2,924 | 26 | $ | 508,000 | $ | 11,772 |
(Dollars in thousands) | Within 1 Year | 1 to 5 Years | 5 to 10 Years | Over 10 Years | Total | ||||||||||
Amortized cost | |||||||||||||||
Obligations of: | |||||||||||||||
States and political subdivisions | $ | 995 | $ | 11,339 | $ | 28,293 | $ | 61,788 | $ | 102,415 | |||||
Residential mortgage-backed securities | 13 | 15,029 | 37,213 | 624,321 | 676,576 | ||||||||||
Commercial mortgage-backed securities | — | 5,725 | — | 1,380 | 7,105 | ||||||||||
Bank-issued trust preferred securities | — | — | 2,190 | 2,998 | 5,188 | ||||||||||
Equity securities | 1,526 | ||||||||||||||
Total available-for-sale securities | $ | 1,008 | $ | 32,093 | $ | 67,696 | $ | 690,487 | $ | 792,810 | |||||
Fair value | |||||||||||||||
Obligations of: | |||||||||||||||
States and political subdivisions | $ | 1,002 | $ | 11,451 | $ | 28,743 | $ | 63,364 | $ | 104,560 | |||||
Residential mortgage-backed securities | 13 | 14,998 | 37,274 | 619,821 | 672,106 | ||||||||||
Commercial mortgage-backed securities | — | 5,762 | — | 1,366 | 7,128 | ||||||||||
Bank-issued trust preferred securities | — | — | 2,337 | 2,817 | 5,154 | ||||||||||
Equity securities | 8,073 | ||||||||||||||
Total available-for-sale securities | $ | 1,015 | $ | 32,211 | $ | 68,354 | $ | 687,368 | $ | 797,021 | |||||
Total weighted-average yield | 3.48 | % | 3.61 | % | 3.55 | % | 3.36 | % | 3.39 | % |
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
September 30, 2017 | ||||||||||||
Obligations of: | ||||||||||||
States and political subdivisions | $ | 3,812 | $ | 651 | $ | — | $ | 4,463 | ||||
Residential mortgage-backed securities | 33,648 | 448 | (406 | ) | 33,690 | |||||||
Commercial mortgage-backed securities | 4,703 | — | (48 | ) | 4,655 | |||||||
Total held-to-maturity securities | $ | 42,163 | $ | 1,099 | $ | (454 | ) | $ | 42,808 | |||
December 31, 2016 | ||||||||||||
Obligations of: | ||||||||||||
States and political subdivisions | $ | 3,820 | $ | 221 | $ | — | $ | 4,041 | ||||
Residential mortgage-backed securities | 33,858 | 432 | (528 | ) | 33,762 | |||||||
Commercial mortgage-backed securities | 5,466 | — | (42 | ) | 5,424 | |||||||
Total held-to-maturity securities | $ | 43,144 | $ | 653 | $ | (570 | ) | $ | 43,227 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | No. of Securities | Fair Value | Unrealized Loss | ||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 2,993 | $ | 90 | 1 | $ | 9,361 | $ | 316 | 2 | $ | 12,354 | $ | 406 | ||||||||||
Commercial mortgage-backed securities | 4,655 | 48 | 1 | — | — | — | 4,655 | 48 | ||||||||||||||||
Total | $ | 7,648 | $ | 138 | 2 | $ | 9,361 | $ | 316 | 2 | $ | 17,009 | $ | 454 | ||||||||||
December 31, 2016 | ||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 12,139 | $ | 476 | 3 | $ | 963 | $ | 52 | 1 | $ | 13,102 | $ | 528 | ||||||||||
Commercial mortgage-backed securities | 5,424 | 42 | 1 | — | — | — | 5,424 | 42 | ||||||||||||||||
Total | $ | 17,563 | $ | 518 | 4 | $ | 963 | $ | 52 | 1 | $ | 18,526 | $ | 570 |
(Dollars in thousands) | Within 1 Year | 1 to 5 Years | 5 to 10 Years | Over 10 Years | Total | ||||||||||
Amortized cost | |||||||||||||||
Obligations of: | |||||||||||||||
States and political subdivisions | $ | — | $ | 314 | $ | 2,980 | $ | 518 | $ | 3,812 | |||||
Residential mortgage-backed securities | — | 450 | 6,379 | 26,819 | 33,648 | ||||||||||
Commercial mortgage-backed securities | — | — | — | 4,703 | 4,703 | ||||||||||
Total held-to-maturity securities | $ | — | $ | 764 | $ | 9,359 | $ | 32,040 | $ | 42,163 | |||||
Fair value | |||||||||||||||
Obligations of: | |||||||||||||||
States and political subdivisions | $ | — | $ | 320 | $ | 3,598 | $ | 545 | $ | 4,463 | |||||
Residential mortgage-backed securities | — | 452 | 6,508 | 26,730 | 33,690 | ||||||||||
Commercial mortgage-backed securities | — | — | — | 4,655 | 4,655 | ||||||||||
Total held-to-maturity securities | $ | — | $ | 772 | $ | 10,106 | $ | 31,930 | $ | 42,808 | |||||
Total weighted-average yield | — | % | 4.18 | % | 3.10 | % | 4.01 | % | 3.81 | % |
(Dollars in thousands) | September 30, 2017 | December 31, 2016 | ||||
Originated loans: | ||||||
Commercial real estate, construction | $ | 111,187 | $ | 84,626 | ||
Commercial real estate, other | 573,256 | 531,557 | ||||
Commercial real estate | 684,443 | 616,183 | ||||
Commercial and industrial | 407,468 | 378,131 | ||||
Residential real estate | 304,094 | 307,490 | ||||
Home equity lines of credit | 88,421 | 85,617 | ||||
Consumer, indirect | 335,436 | 252,024 | ||||
Consumer, other | 68,286 | 67,579 | ||||
Consumer | 403,722 | 319,603 | ||||
Deposit account overdrafts | 507 | 1,080 | ||||
Total originated loans | $ | 1,888,655 | $ | 1,708,104 | ||
Acquired loans: | ||||||
Commercial real estate, construction | $ | 8,565 | $ | 10,100 | ||
Commercial real estate, other | 174,157 | 204,466 | ||||
Commercial real estate | 182,722 | 214,566 | ||||
Commercial and industrial | 36,462 | 44,208 | ||||
Residential real estate | 194,950 | 228,435 | ||||
Home equity lines of credit | 22,366 | 25,875 | ||||
Consumer, indirect | 408 | 808 | ||||
Consumer, other | 1,472 | 2,940 | ||||
Consumer | 1,880 | 3,748 | ||||
Total acquired loans | $ | 438,380 | $ | 516,832 | ||
Loans, net of deferred fees and costs | $ | 2,327,035 | $ | 2,224,936 |
(Dollars in thousands) | September 30, 2017 | December 31, 2016 | ||||
Commercial real estate, other | $ | 8,235 | $ | 11,476 | ||
Commercial and industrial | 818 | 1,573 | ||||
Residential real estate | 20,497 | 23,306 | ||||
Consumer | 41 | 76 | ||||
Total outstanding balance | $ | 29,591 | $ | 36,431 | ||
Net carrying amount | $ | 20,581 | $ | 26,524 |
(Dollars in thousands) | Accretable Yield | ||
Balance, December 31, 2016 | $ | 7,132 | |
Reclassification from nonaccretable to accretable | 1,285 | ||
Accretion | (1,279 | ) | |
Balance, September 30, 2017 | $ | 7,138 |
Nonaccrual Loans | Loans 90+ Days Past Due and Accruing | ||||||||||||
(Dollars in thousands) | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||
Originated loans: | |||||||||||||
Commercial real estate, construction | $ | 776 | $ | 826 | $ | — | $ | — | |||||
Commercial real estate, other | 6,675 | 9,934 | 374 | — | |||||||||
Commercial real estate | 7,451 | 10,760 | 374 | — | |||||||||
Commercial and industrial | 780 | 1,712 | 739 | — | |||||||||
Residential real estate | 3,437 | 3,778 | 231 | 183 | |||||||||
Home equity lines of credit | 344 | 383 | 15 | — | |||||||||
Consumer, indirect | 154 | 130 | — | 10 | |||||||||
Consumer, other | 16 | 11 | — | — | |||||||||
Consumer | 170 | 141 | — | 10 | |||||||||
Total originated loans | $ | 12,182 | $ | 16,774 | $ | 1,359 | $ | 193 | |||||
Acquired loans: | |||||||||||||
Commercial real estate, other | $ | 982 | $ | 1,609 | $ | 898 | $ | 1,506 | |||||
Commercial and industrial | 498 | 390 | 93 | 387 | |||||||||
Residential real estate | 2,210 | 2,317 | 1,184 | 1,672 | |||||||||
Home equity lines of credit | 330 | 231 | — | — | |||||||||
Consumer, indirect | — | — | — | 13 | |||||||||
Consumer, other | 17 | 4 | 8 | — | |||||||||
Consumer | 17 | 4 | 8 | 13 | |||||||||
Total acquired loans | $ | 4,037 | $ | 4,551 | $ | 2,183 | $ | 3,578 | |||||
Total loans | $ | 16,219 | $ | 21,325 | $ | 3,542 | $ | 3,771 |
Loans Past Due | Current Loans | Total Loans | |||||||||||||||||
(Dollars in thousands) | 30 - 59 days | 60 - 89 days | 90 + Days | Total | |||||||||||||||
September 30, 2017 | |||||||||||||||||||
Originated loans: | |||||||||||||||||||
Commercial real estate, construction | $ | — | $ | — | $ | — | $ | — | $ | 111,187 | $ | 111,187 | |||||||
Commercial real estate, other | 1,693 | 229 | 6,573 | 8,495 | 564,761 | 573,256 | |||||||||||||
Commercial real estate | 1,693 | 229 | 6,573 | 8,495 | 675,948 | 684,443 | |||||||||||||
Commercial and industrial | 1,292 | 155 | 1,396 | 2,843 | 404,625 | 407,468 | |||||||||||||
Residential real estate | 2,076 | 1,368 | 1,777 | 5,221 | 298,873 | 304,094 | |||||||||||||
Home equity lines of credit | 346 | 184 | 145 | 675 | 87,746 | 88,421 | |||||||||||||
Consumer, indirect | 1,731 | 358 | 33 | 2,122 | 333,314 | 335,436 | |||||||||||||
Consumer, other | 158 | 89 | 14 | 261 | 68,025 | 68,286 | |||||||||||||
Consumer | 1,889 | 447 | 47 | 2,383 | 401,339 | 403,722 | |||||||||||||
Deposit account overdrafts | — | — | — | — | 507 | 507 | |||||||||||||
Total originated loans | $ | 7,296 | $ | 2,383 | $ | 9,938 | $ | 19,617 | $ | 1,869,038 | $ | 1,888,655 | |||||||
Acquired loans: | |||||||||||||||||||
Commercial real estate, construction | $ | — | $ | — | $ | — | $ | — | $ | 8,565 | $ | 8,565 | |||||||
Commercial real estate, other | 544 | 176 | 1,089 | 1,809 | 172,348 | 174,157 | |||||||||||||
Commercial real estate | 544 | 176 | 1,089 | 1,809 | 180,913 | 182,722 | |||||||||||||
Commercial and industrial | 17 | 24 | 463 | 504 | 35,958 | 36,462 | |||||||||||||
Residential real estate | 1,498 | 1,141 | 2,436 | 5,075 | 189,875 | 194,950 | |||||||||||||
Home equity lines of credit | 112 | — | 280 | 392 | 21,974 | 22,366 | |||||||||||||
Consumer, indirect | 2 | — | — | 2 | 406 | 408 | |||||||||||||
Consumer, other | 13 | 18 | 24 | 55 | 1,417 | 1,472 | |||||||||||||
Consumer | 15 | 18 | 24 | 57 | 1,823 | 1,880 | |||||||||||||
Total acquired loans | $ | 2,186 | $ | 1,359 | $ | 4,292 | $ | 7,837 | $ | 430,543 | $ | 438,380 | |||||||
Total loans | $ | 9,482 | $ | 3,742 | $ | 14,230 | $ | 27,454 | $ | 2,299,581 | $ | 2,327,035 |
Loans Past Due | Current Loans | Total Loans | |||||||||||||||||
(Dollars in thousands) | 30 - 59 days | 60 - 89 days | 90 + Days | Total | |||||||||||||||
December 31, 2016 | |||||||||||||||||||
Originated loans: | |||||||||||||||||||
Commercial real estate, construction | $ | — | $ | — | $ | 826 | $ | 826 | $ | 83,800 | $ | 84,626 | |||||||
Commercial real estate, other | 1,420 | 225 | 9,305 | 10,950 | 520,607 | 531,557 | |||||||||||||
Commercial real estate | 1,420 | 225 | 10,131 | 11,776 | 604,407 | 616,183 | |||||||||||||
Commercial and industrial | 1,305 | 700 | 1,465 | 3,470 | 374,661 | 378,131 | |||||||||||||
Residential real estate | 7,288 | 1,019 | 1,895 | 10,202 | 297,288 | 307,490 | |||||||||||||
Home equity lines of credit | 316 | 45 | 248 | 609 | 85,008 | 85,617 | |||||||||||||
Consumer, indirect | 2,080 | 273 | 77 | 2,430 | 249,594 | 252,024 | |||||||||||||
Consumer, other | 346 | 38 | — | 384 | 67,195 | 67,579 | |||||||||||||
Consumer | 2,426 | 311 | 77 | 2,814 | 316,789 | 319,603 | |||||||||||||
Deposit account overdrafts | — | — | — | — | 1,080 | 1,080 | |||||||||||||
Total originated loans | $ | 12,755 | $ | 2,300 | $ | 13,816 | $ | 28,871 | $ | 1,679,233 | $ | 1,708,104 | |||||||
Acquired loans: | |||||||||||||||||||
Commercial real estate, construction | $ | — | $ | — | $ | 40 | $ | 40 | $ | 10,060 | $ | 10,100 | |||||||
Commercial real estate, other | 1,220 | 208 | 2,271 | 3,699 | 200,767 | 204,466 | |||||||||||||
Commercial real estate | 1,220 | 208 | 2,311 | 3,739 | 210,827 | 214,566 | |||||||||||||
Commercial and industrial | 148 | 3 | 777 | 928 | 43,280 | 44,208 | |||||||||||||
Residential real estate | 5,918 | 2,496 | 2,974 | 11,388 | 217,047 | 228,435 | |||||||||||||
Home equity lines of credit | 208 | 65 | 178 | 451 | 25,424 | 25,875 | |||||||||||||
Consumer, indirect | 4 | — | — | 4 | 804 | 808 | |||||||||||||
Consumer, other | 51 | — | 13 | 64 | 2,876 | 2,940 | |||||||||||||
Consumer | 55 | — | 13 | 68 | 3,680 | 3,748 | |||||||||||||
Total acquired loans | $ | 7,549 | $ | 2,772 | $ | 6,253 | $ | 16,574 | $ | 500,258 | $ | 516,832 | |||||||
Total loans | $ | 20,304 | $ | 5,072 | $ | 20,069 | $ | 45,445 | $ | 2,179,491 | $ | 2,224,936 |
Pass Rated (Grades 1 - 4) | Special Mention (Grade 5) | Substandard (Grade 6) | Doubtful (Grade 7) | Not Rated | Total Loans | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
September 30, 2017 | ||||||||||||||||||
Originated loans: | ||||||||||||||||||
Commercial real estate, construction | $ | 104,446 | $ | 5,510 | $ | 776 | $ | — | $ | 455 | $ | 111,187 | ||||||
Commercial real estate, other | 541,073 | 21,062 | 11,121 | — | — | 573,256 | ||||||||||||
Commercial real estate | 645,519 | 26,572 | 11,897 | — | 455 | 684,443 | ||||||||||||
Commercial and industrial | 382,332 | 18,943 | 6,157 | — | 36 | 407,468 | ||||||||||||
Residential real estate | 18,717 | 1,033 | 11,499 | 182 | 272,663 | 304,094 | ||||||||||||
Home equity lines of credit | 596 | — | — | — | 87,825 | 88,421 | ||||||||||||
Consumer, indirect | 59 | 9 | — | — | 335,368 | 335,436 | ||||||||||||
Consumer, other | 38 | — | — | — | 68,248 | 68,286 | ||||||||||||
Consumer | 97 | 9 | — | — | 403,616 | 403,722 | ||||||||||||
Deposit account overdrafts | — | — | — | — | 507 | 507 | ||||||||||||
Total originated loans | $ | 1,047,261 | $ | 46,557 | $ | 29,553 | $ | 182 | $ | 765,102 | $ | 1,888,655 | ||||||
Acquired loans: | ||||||||||||||||||
Commercial real estate, construction | $ | 8,513 | $ | — | $ | 52 | $ | — | $ | — | $ | 8,565 | ||||||
Commercial real estate, other | 157,610 | 8,057 | 8,490 | — | — | 174,157 | ||||||||||||
Commercial real estate | 166,123 | 8,057 | 8,542 | — | — | 182,722 | ||||||||||||
Commercial and industrial | 34,651 | 220 | 1,591 | — | — | 36,462 | ||||||||||||
Residential real estate | 13,082 | 604 | 1,365 | — | 179,899 | 194,950 | ||||||||||||
Home equity lines of credit | 143 | — | — | — | 22,223 | 22,366 | ||||||||||||
Consumer, indirect | 19 | — | — | — | 389 | 408 | ||||||||||||
Consumer, other | 42 | — | — | — | 1,430 | 1,472 | ||||||||||||
Consumer | 61 | — | — | — | 1,819 | 1,880 | ||||||||||||
Total acquired loans | $ | 214,060 | $ | 8,881 | $ | 11,498 | $ | — | $ | 203,941 | $ | 438,380 | ||||||
Total loans | $ | 1,261,321 | $ | 55,438 | $ | 41,051 | $ | 182 | $ | 969,043 | $ | 2,327,035 |
Pass Rated (Grades 1 - 4) | Special Mention (Grade 5) | Substandard (Grade 6) | Doubtful (Grade 7) | Not Rated | Total Loans | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
December 31, 2016 | ||||||||||||||||||
Originated loans: | ||||||||||||||||||
Commercial real estate, construction | $ | 73,423 | $ | — | $ | 826 | $ | — | $ | 10,377 | $ | 84,626 | ||||||
Commercial real estate, other | 505,029 | 11,855 | 14,673 | — | — | 531,557 | ||||||||||||
Commercial real estate | 578,452 | 11,855 | 15,499 | — | 10,377 | 616,183 | ||||||||||||
Commercial and industrial | 346,791 | 15,210 | 16,130 | — | — | 378,131 | ||||||||||||
Residential real estate | 47,336 | 957 | 12,828 | 304 | 246,065 | 307,490 | ||||||||||||
Home equity lines of credit | 465 | — | 135 | — | 85,017 | 85,617 | ||||||||||||
Consumer, indirect | 15 | 13 | — | — | 251,996 | 252,024 | ||||||||||||
Consumer, other | 50 | — | — | — | 67,529 | 67,579 | ||||||||||||
Consumer | 65 | 13 | — | — | 319,525 | 319,603 | ||||||||||||
Deposit account overdrafts | — | — | — | — | 1,080 | 1,080 | ||||||||||||
Total originated loans | $ | 973,109 | $ | 28,035 | $ | 44,592 | $ | 304 | $ | 662,064 | $ | 1,708,104 | ||||||
Acquired loans: | ||||||||||||||||||
Commercial real estate, construction | $ | 10,046 | $ | — | $ | 54 | $ | — | $ | — | $ | 10,100 | ||||||
Commercial real estate, other | 181,781 | 12,475 | 10,210 | — | — | 204,466 | ||||||||||||
Commercial real estate | 191,827 | 12,475 | 10,264 | — | — | 214,566 | ||||||||||||
Commercial and industrial | 42,809 | 227 | 978 | 194 | — | 44,208 | ||||||||||||
Residential real estate | 17,170 | 709 | 1,404 | — | 209,152 | 228,435 | ||||||||||||
Home equity lines of credit | 202 | — | — | — | 25,673 | 25,875 | ||||||||||||
Consumer, indirect | 51 | — | — | — | 757 | 808 | ||||||||||||
Consumer, other | 53 | — | — | — | 2,887 | 2,940 | ||||||||||||
Consumer | 104 | — | — | — | 3,644 | 3,748 | ||||||||||||
Total acquired loans | $ | 252,112 | $ | 13,411 | $ | 12,646 | $ | 194 | $ | 238,469 | $ | 516,832 | ||||||
Total loans | $ | 1,225,221 | $ | 41,446 | $ | 57,238 | $ | 498 | $ | 900,533 | $ | 2,224,936 |
Unpaid Principal Balance | Recorded Investment | Total Recorded Investment | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
With Allowance | Without Allowance | Related Allowance | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||
Commercial real estate, construction | $ | 821 | $ | — | $ | 776 | $ | 776 | $ | — | $ | 805 | $ | — | |||||||
Commercial real estate, other | 15,109 | 5,045 | 9,180 | 14,225 | 136 | 14,763 | 727 | ||||||||||||||
Commercial real estate | 15,930 | 5,045 | 9,956 | 15,001 | 136 | 15,568 | 727 | ||||||||||||||
Commercial and industrial | 2,794 | 2,016 | 603 | 2,619 | 424 | 2,651 | 384 | ||||||||||||||
Residential real estate | 25,974 | 654 | 23,724 | 24,378 | 151 | 24,273 | 1,675 | ||||||||||||||
Home equity lines of credit | 1,718 | 65 | 1,649 | 1,714 | 13 | 1,435 | 122 | ||||||||||||||
Consumer, indirect | 171 | 18 | 154 | 172 | 2 | 155 | 11 | ||||||||||||||
Consumer, other | 92 | 28 | 61 | 89 | 21 | 101 | 7 | ||||||||||||||
Consumer | 263 | 46 | 215 | 261 | 23 | 256 | 18 | ||||||||||||||
Total | $ | 46,679 | $ | 7,826 | $ | 36,147 | $ | 43,973 | $ | 747 | $ | 44,183 | $ | 2,926 | |||||||
December 31, 2016 | |||||||||||||||||||||
Commercial real estate, construction | $ | 894 | $ | — | $ | 866 | $ | 866 | $ | — | $ | 913 | $ | 3 | |||||||
Commercial real estate, other | 20,029 | 7,474 | 12,227 | 19,701 | 803 | 18,710 | 700 | ||||||||||||||
Commercial real estate | 20,923 | 7,474 | 13,093 | 20,567 | 803 | 19,623 | 703 | ||||||||||||||
Commercial and industrial | 7,289 | 2,732 | 1,003 | 3,735 | 585 | 3,386 | 125 | ||||||||||||||
Residential real estate | 27,703 | 138 | 27,393 | 27,531 | 24 | 27,455 | 1,419 | ||||||||||||||
Home equity lines of credit | 908 | — | 908 | 908 | — | 717 | 44 | ||||||||||||||
Consumer, indirect | 220 | — | 224 | 224 | — | 136 | 16 | ||||||||||||||
Consumer, other | 130 | — | 130 | 130 | — | 138 | 13 | ||||||||||||||
Consumer | 350 | — | 354 | 354 | — | 274 | 29 | ||||||||||||||
Total | $ | 57,173 | $ | 10,344 | $ | 42,751 | $ | 53,095 | $ | 1,412 | $ | 51,455 | $ | 2,320 |
Three Months Ended | |||||||||||
Recorded Investment (1) | |||||||||||
(Dollars in thousands) | Number of Contracts | Pre-Modification | Post-Modification | Remaining Recorded Investment | |||||||
September 30, 2017 | |||||||||||
Originated loans: | |||||||||||
Commercial and industrial | 1 | $ | 36 | $ | 36 | $ | 36 | ||||
Residential real estate | 1 | 90 | 90 | 90 | |||||||
Home equity lines of credit | 2 | 22 | 22 | 19 | |||||||
Consumer, indirect | 5 | 34 | 34 | 34 | |||||||
Consumer, other | 2 | 9 | 9 | 9 | |||||||
Consumer | 7 | 43 | 43 | 43 | |||||||
Total originated loans | 11 | $ | 191 | $ | 191 | $ | 188 | ||||
Acquired loans: | |||||||||||
Residential real estate | 2 | $ | 61 | $ | 61 | $ | 61 | ||||
Home equity lines of credit | 1 | 34 | 34 | 34 | |||||||
Total acquired loans | 3 | $ | 95 | $ | 95 | $ | 95 | ||||
September 30, 2016 | |||||||||||
Originated loans: | |||||||||||
Residential real estate | 2 | $ | 75 | $ | 75 | $ | 75 | ||||
Home equity lines of credit | 3 | 23 | 23 | 23 | |||||||
Consumer, indirect | 7 | 78 | 78 | 78 | |||||||
Consumer, other | 3 | 34 | 34 | 34 | |||||||
Consumer | 10 | 112 | 112 | 112 | |||||||
Total originated loans | 15 | $ | 210 | $ | 210 | $ | 210 | ||||
Acquired loans: | |||||||||||
Commercial real estate, other | 1 | $ | 224 | $ | 224 | $ | 224 | ||||
Residential real estate | 2 | 141 | 141 | 141 | |||||||
Total acquired loans | 3 | $ | 365 | $ | 365 | $ | 365 | ||||
(1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported. |
Nine Months Ended | |||||||||||
Recorded Investment (1) | |||||||||||
(Dollars in thousands) | Number of Contracts | Pre-Modification | Post-Modification | Remaining Recorded Investment | |||||||
September 30, 2017 | |||||||||||
Originated loans: | |||||||||||
Commercial real estate, other | 1 | $ | 14 | $ | 14 | $ | 14 | ||||
Commercial and industrial | 3 | 174 | 174 | 123 | |||||||
Residential real estate | 7 | 483 | 483 | 478 | |||||||
Home equity lines of credit | 6 | 291 | 291 | 286 | |||||||
Consumer, indirect | 11 | 127 | 127 | 86 | |||||||
Consumer, other | 3 | 10 | 10 | 10 | |||||||
Consumer | 14 | 137 | 137 | 96 | |||||||
Total originated loans | 31 | $ | 1,099 | $ | 1,099 | $ | 997 | ||||
Acquired loans: | |||||||||||
Commercial real estate, other | 2 | $ | 271 | $ | 271 | $ | 265 | ||||
Residential real estate | 8 | 264 | 264 | 263 | |||||||
Home equity lines of credit | 5 | 328 | 328 | 323 | |||||||
Consumer, other | 2 | 10 | 10 | 9 | |||||||
Total acquired loans | 17 | $ | 873 | $ | 873 | $ | 860 | ||||
September 30, 2016 | |||||||||||
Originated loans: | |||||||||||
Commercial real estate, other | 1 | $ | 57 | $ | 57 | $ | 56 | ||||
Commercial and industrial | 6 | 716 | 724 | 685 | |||||||
Residential real estate | 5 | 173 | 173 | 173 | |||||||
Home equity lines of credit | 3 | 23 | 23 | 23 | |||||||
Consumer, indirect | 9 | 107 | 107 | 107 | |||||||
Consumer, other | 5 | 46 | 46 | 46 | |||||||
Consumer | 14 | 153 | 153 | 153 | |||||||
Total originated loans | 29 | $ | 1,122 | $ | 1,130 | $ | 1,090 | ||||
Acquired loans: | |||||||||||
Commercial real estate, other | 1 | $ | 223 | $ | 223 | $ | 223 | ||||
Residential real estate | 11 | 927 | 929 | 923 | |||||||
Home equity lines of credit | 3 | 179 | 179 | 173 | |||||||
Consumer, indirect | 2 | 8 | 8 | 8 | |||||||
Consumer, other | 3 | 17 | 17 | 17 | |||||||
Consumer | 5 | 25 | 25 | 25 | |||||||
Total acquired loans | 20 | $ | 1,354 | $ | 1,356 | $ | 1,344 | ||||
(1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported. |
September 30, 2017 | September 30, 2016 | ||||||||||||||||
(Dollars in thousands) | Number of Contracts | Recorded Investment (1) | Impact on the Allowance for Loan Losses | Number of Contracts | Recorded Investment (1) | Impact on the Allowance for Loan Losses | |||||||||||
Acquired loans: | |||||||||||||||||
Residential real estate | 1 | $ | 44 | $ | — | — | $ | — | $ | — | |||||||
Consumer, other | 1 | 8 | — | — | — | — | |||||||||||
Total | 2 | $ | 52 | $ | — | — | $ | — | $ | — | |||||||
(1) The amounts shown are inclusive of all partial paydowns and charge-offs. Loans modified in a TDR that were fully paid down, charged-off or foreclosed upon by period end are not reported. |
(Dollars in thousands) | Commercial Real Estate | Commercial and Industrial | Residential Real Estate | Home Equity Lines of Credit | Consumer Indirect | Consumer Other | Deposit Account Overdrafts | Total | ||||||||||||||||
Balance, January 1, 2017 | $ | 7,172 | $ | 6,353 | $ | 982 | $ | 688 | $ | 2,312 | $ | 518 | $ | 171 | $ | 18,196 | ||||||||
Charge-offs | (25 | ) | (165 | ) | (451 | ) | (100 | ) | (1,493 | ) | (275 | ) | (767 | ) | (3,276 | ) | ||||||||
Recoveries | 135 | 1 | 128 | 9 | 598 | 152 | 159 | 1,182 | ||||||||||||||||
Net recoveries (charge-offs) | 110 | (164 | ) | (323 | ) | (91 | ) | (895 | ) | (123 | ) | (608 | ) | (2,094 | ) | |||||||||
Provision for loan losses | 252 | 226 | 265 | 82 | 1,397 | 46 | 507 | 2,775 | ||||||||||||||||
Balance, September 30, 2017 | $ | 7,534 | $ | 6,415 | $ | 924 | $ | 679 | $ | 2,814 | $ | 441 | $ | 70 | $ | 18,877 | ||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 136 | $ | 424 | $ | 151 | $ | 13 | $ | 2 | $ | 21 | $ | — | $ | 747 | ||||||||
Loans collectively evaluated for impairment | 7,398 | 5,991 | 773 | 666 | 2,812 | 420 | 70 | 18,130 | ||||||||||||||||
Ending balance | $ | 7,534 | $ | 6,415 | $ | 924 | $ | 679 | $ | 2,814 | $ | 441 | $ | 70 | $ | 18,877 | ||||||||
Balance, January 1, 2016 | $ | 7,076 | $ | 5,382 | $ | 1,257 | $ | 732 | $ | 1,934 | $ | 37 | $ | 121 | $ | 16,539 | ||||||||
Charge-offs | (12 | ) | (1,017 | ) | (524 | ) | (58 | ) | (1,502 | ) | (397 | ) | (544 | ) | (4,054 | ) | ||||||||
Recoveries | 1,199 | 250 | 193 | 33 | 727 | 183 | 148 | 2,733 | ||||||||||||||||
Net recoveries (charge-offs) | 1,187 | (767 | ) | (331 | ) | (25 | ) | (775 | ) | (214 | ) | (396 | ) | (1,321 | ) | |||||||||
(Recovery of) provision for loan losses | (773 | ) | 1,075 | 194 | (21 | ) | 1,081 | 769 | 418 | 2,743 | ||||||||||||||
Balance, September 30, 2016 | $ | 7,490 | $ | 5,690 | $ | 1,120 | $ | 686 | $ | 2,240 | $ | 592 | $ | 143 | $ | 17,961 | ||||||||
Period-end amount allocated to: | ||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,164 | $ | 506 | $ | 122 | $ | — | $ | — | $ | — | $ | — | $ | 1,792 | ||||||||
Loans collectively evaluated for impairment | 6,326 | 5,184 | 998 | 686 | 2,240 | 592 | 143 | 16,169 | ||||||||||||||||
Ending balance | $ | 7,490 | $ | 5,690 | $ | 1,120 | $ | 686 | $ | 2,240 | $ | 592 | $ | 143 | $ | 17,961 |
Three Months Ended | Nine Months Ended | ||||||||||||
(Dollars in thousands) | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 | |||||||||
Purchased credit impaired loans: | |||||||||||||
Balance, beginning of period | $ | 90 | $ | 197 | $ | 233 | $ | 240 | |||||
Charge-offs | — | (16 | ) | — | (67 | ) | |||||||
Recoveries | — | — | — | — | |||||||||
Net charge-offs | — | (16 | ) | — | (67 | ) | |||||||
Provision for (recovery of) loan losses | 25 | 77 | (118 | ) | 85 | ||||||||
Balance, September 30 | $ | 115 | $ | 258 | $ | 115 | $ | 258 |
September 30, 2017 | December 31, 2016 | ||||||||||
(Dollars in thousands) | Balance | Weighted- Average Rate | Balance | Weighted- Average Rate | |||||||
FHLB putable, non-amortizing, fixed-rate advances | $ | 125,000 | 2.00 | % | $ | 70,000 | 2.49 | % | |||
Callable national market repurchase agreements | 40,000 | 3.63 | % | 40,000 | 3.63 | % | |||||
FHLB amortizing, fixed-rate advances | 23,862 | 2.03 | % | 28,282 | 2.01 | % | |||||
Junior subordinated debt securities | 7,061 | 4.78 | % | 6,924 | 4.48 | % | |||||
Unamortized debt issuance costs | (33 | ) | — | % | (51 | ) | — | % | |||
Total long-term borrowings | $ | 195,890 | 2.43 | % | $ | 145,155 | 2.81 | % |
(Dollars in thousands) | Balance | Weighted-Average Rate | |||
Three months ending December 31, 2017 | $ | 1,866 | 2.04 | % | |
Year ending December 31, 2018 | 54,385 | 3.46 | % | ||
Year ending December 31, 2019 | 33,508 | 1.37 | % | ||
Year ending December 31, 2020 | 25,564 | 1.85 | % | ||
Year ending December 31, 2021 | 21,979 | 1.75 | % | ||
Thereafter | 58,588 | 2.62 | % | ||
Total long-term borrowings | $ | 195,890 | 2.43 | % |
Common Shares | Treasury Stock | |||
Shares at December 31, 2016 | 18,939,091 | 795,758 | ||
Changes related to stock-based compensation awards: | ||||
Release of restricted common shares | — | 8,719 | ||
Cancellation of restricted common shares | (3,344 | ) | 4,510 | |
Exercise of stock options for common shares | — | (266 | ) | |
Grant of restricted common shares | — | (68,707 | ) | |
Grant of common shares | — | (300 | ) | |
Changes related to deferred compensation plan for Boards of Directors: | ||||
Purchase of treasury stock | — | 4,266 | ||
Reissuance of treasury stock | — | (24,634 | ) | |
Common shares issued under dividend reinvestment plan | 12,611 | — | ||
Common shares issued under compensation plan for Boards of Directors | — | (7,404 | ) | |
Common shares issued under employee stock purchase plan | — | (8,412 | ) | |
Shares at September 30, 2017 | 18,948,358 | 703,530 |
(Dollars in thousands) | Unrealized Gain on Securities | Unrecognized Net Pension and Postretirement Costs | Unrealized Gain (Loss) on Cash Flow Hedge | Accumulated Other Comprehensive Income (Loss) | ||||||||
Balance, December 31, 2016 | $ | 581 | $ | (3,321 | ) | $ | 1,186 | $ | (1,554 | ) | ||
Reclassification adjustments to net income: | ||||||||||||
Realized gain on sale of securities, net of tax | (1,442 | ) | — | — | (1,442 | ) | ||||||
Other comprehensive income (loss), net of reclassifications and tax | 3,542 | 46 | (541 | ) | 3,047 | |||||||
Balance, September 30, 2017 | $ | 2,681 | $ | (3,275 | ) | $ | 645 | $ | 51 |
Pension Benefits | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||
Interest cost | $ | 112 | $ | 110 | $ | 338 | $ | 329 | |||||
Expected return on plan assets | (138 | ) | (123 | ) | (415 | ) | (369 | ) | |||||
Amortization of net loss | 26 | 23 | 77 | 71 | |||||||||
Net periodic cost | $ | — | $ | 10 | $ | — | $ | 31 |
Postretirement Benefits | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||
Interest cost | $ | 1 | $ | 1 | $ | 3 | $ | 3 | |||||
Amortization of net loss | (1 | ) | (2 | ) | (5 | ) | (5 | ) | |||||
Net periodic cost | $ | — | $ | (1 | ) | $ | (2 | ) | $ | (2 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||
Distributed earnings allocated to common shareholders | $ | 3,972 | $ | 2,879 | $ | 11,184 | $ | 8,471 | |||||
Undistributed earnings allocated to common shareholders | 6,865 | 4,881 | 18,134 | 15,189 | |||||||||
Net earnings allocated to common shareholders | $ | 10,837 | $ | 7,760 | $ | 29,318 | $ | 23,660 | |||||
Weighted-average common shares outstanding | 18,056,202 | 17,993,443 | 18,043,692 | 18,015,249 | |||||||||
Effect of potentially dilutive common shares | 157,331 | 117,267 | 156,267 | 108,411 | |||||||||
Total weighted-average diluted common shares outstanding | 18,213,533 | 18,110,710 | 18,199,959 | 18,123,660 | |||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.60 | $ | 0.43 | $ | 1.62 | $ | 1.31 | |||||
Diluted | $ | 0.60 | $ | 0.43 | $ | 1.61 | $ | 1.31 | |||||
Anti-dilutive shares excluded from calculation: | |||||||||||||
Restricted shares, stock options and stock appreciation rights | 163 | 18,604 | 270 | 24,461 |
Number of Common Shares Subject to SARs | Weighted- Average Exercise Price | Weighted-Average Remaining Contractual Life | Aggregate Intrinsic Value | ||||||||||
Outstanding at January 1 | 2,338 | $ | 27.37 | ||||||||||
Exercised | 2,024 | 27.93 | |||||||||||
Outstanding at September 30 | 314 | $ | 23.77 | 0.4 years | $ | 3,083 | |||||||
Exercisable at September 30 | 314 | $ | 23.77 | 0.4 years | $ | 3,083 |
Time-Based Vesting | Performance-Based Vesting | ||||||||||
Number of Common Shares | Weighted-Average Grant Date Fair Value | Number of Common Shares | Weighted-Average Grant Date Fair Value | ||||||||
Outstanding at January 1 | 40,316 | $ | 21.85 | 142,415 | $ | 21.95 | |||||
Awarded | 7,550 | 31.36 | 61,457 | 32.42 | |||||||
Released | 7,150 | 26.96 | 21,050 | 21.74 | |||||||
Forfeited | 2,300 | 24.69 | 5,854 | 24.89 | |||||||
Outstanding at September 30 | 38,416 | $ | 22.59 | 176,968 | $ | 25.51 |
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||
Total stock-based compensation expense | $ | 351 | $ | 346 | $ | 1,362 | $ | 1,009 | |||||
Recognized tax benefit | (123 | ) | (121 | ) | (477 | ) | (353 | ) | |||||
Net expense recognized | $ | 228 | $ | 225 | $ | 885 | $ | 656 |
At or For the Three Months Ended | At or For the Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
PER COMMON SHARE DATA | |||||||||||||
Earnings per common share – basic | $ | 0.60 | $ | 0.43 | $ | 1.62 | 1.31 | ||||||
Earnings per common share – diluted | 0.60 | 0.43 | 1.61 | 1.31 | |||||||||
Cash dividends declared per common share | 0.22 | 0.16 | 0.62 | 0.47 | |||||||||
Book value per common share (a) | 25.02 | 24.22 | 25.02 | 24.22 | |||||||||
Tangible book value per common share (a)(b) | $ | 17.15 | $ | 16.14 | $ | 17.15 | 16.14 | ||||||
Weighted-average number of common shares outstanding – basic | 18,056,202 | 17,993,443 | 18,043,692 | 18,105,249 | |||||||||
Weighted-average number of common shares outstanding – diluted | 18,213,533 | 18,110,710 | 18,199,959 | 18,123,660 | |||||||||
Common shares outstanding at end of period | 18,281,194 | 18,195,986 | 18,281,194 | 18,195,986 | |||||||||
Closing stock price at end of period | $ | 33.59 | $ | 24.59 | $ | 33.59 | $ | 24.59 | |||||
SIGNIFICANT RATIOS | |||||||||||||
Return on average stockholders' equity (c) | 9.47 | % | 7.07 | % | 8.80 | % | 7.36 | % | |||||
Return on average tangible stockholders' equity (c)(d) | 14.58 | % | 11.54 | % | 13.77 | % | 12.17 | % | |||||
Return on average assets (c) | 1.22 | % | 0.93 | % | 1.13 | % | 0.96 | % | |||||
Average stockholders' equity to average assets | 12.88 | % | 13.19 | % | 12.81 | % | 13.05 | % | |||||
Average loans to average deposits | 86.69 | % | 83.50 | % | 86.09 | % | 82.39 | % | |||||
Net interest margin (c)(e) | 3.67 | % | 3.54 | % | 3.61 | % | 3.55 | % | |||||
Efficiency ratio (f) | 60.74 | % | 64.33 | % | 62.24 | % | 64.56 | % | |||||
Pre-provision net revenue to total average assets (c)(g) | 1.71 | % | 1.53 | % | 1.65 | % | 1.52 | % | |||||
Dividend payout ratio | 36.90 | % | 37.37 | % | 38.34 | % | 36.06 | % | |||||
Investment securities as percentage of total assets (a) | 24.70 | % | 25.10 | % | 24.70 | % | 25.10 | % | |||||
ASSET QUALITY RATIOS | |||||||||||||
Nonperforming loans as a percent of total loans (a)(h) | 0.85 | % | 1.08 | % | 0.85 | % | 1.08 | % | |||||
Nonperforming assets as a percent of total assets (a)(h) | 0.56 | % | 0.72 | % | 0.56 | % | 0.72 | % | |||||
Nonperforming assets as a percent of total loans and other real estate owned ("OREO") (a)(h) | 0.86 | % | 1.11 | % | 0.86 | % | 1.11 | % | |||||
Criticized loans as a percent of total loans (a)(i) | 4.15 | % | 4.58 | % | 4.15 | % | 4.58 | % | |||||
Classified loans as a percent of total loans (a)(j) | 1.77 | % | 2.48 | % | 1.77 | % | 2.48 | % | |||||
Allowance for loan losses as a percent of total loans (a) | 0.82 | % | 0.84 | % | 0.82 | % | 0.84 | % | |||||
Allowance for loan losses as a percent of nonperforming loans (a)(h) | 96.11 | % | 77.50 | % | 96.11 | % | 77.50 | % | |||||
Provision for loan losses as a percent of average total loans | 0.19 | % | 0.21 | % | 0.16 | % | 0.18 | % | |||||
Net charge-offs as a percentage of average total loans (c) | 0.16 | % | 0.14 | % | 0.12 | % | 0.09 | % | |||||
CAPITAL RATIOS (a) | |||||||||||||
Common Equity Tier 1 (k) | 13.31 | % | 13.04 | % | 13.31 | % | 13.04 | % | |||||
Tier 1 | 13.60 | % | 13.34 | % | 13.60 | % | 13.34 | % | |||||
Total (Tier 1 and Tier 2) | 14.49 | % | 14.24 | % | 14.49 | % | 14.24 | % | |||||
Tier 1 leverage | 9.82 | % | 9.71 | % | 9.82 | % | 9.71 | % | |||||
Tangible equity to tangible assets (b) | 9.20 | % | 9.13 | % | 9.20 | % | 9.13 | % |
(a) | Data presented as of the end of the period indicated. |
(b) | These amounts represent non-GAAP financial measures since they exclude goodwill and other intangible assets. Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Capital/Stockholders’ Equity.” |
(c) | Ratios are presented on an annualized basis. |
(d) | These amounts represent non-GAAP financial measures since they exclude the after-tax impact of amortization of other intangible assets from earnings and exclude the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity. Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Return on Average Tangible Stockholders' Equity Ratio.” |
(e) | Information presented on a fully tax-equivalent basis. |
(f) | Total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and all losses). Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Efficiency Ratio.” |
(g) | These amounts represent non-GAAP financial measures since they exclude the provision for (recovery of) loan losses and all gains and losses included in earnings. Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Pre-Provision Net Revenue.” |
(h) | Nonperforming loans include loans 90 days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and other real estate owned. |
(i) | Includes loans categorized as special mention, substandard or doubtful. |
(j) | Includes loans categorized as substandard or doubtful. |
(k) | Peoples' capital conservation buffer was 6.49% at September 30, 2017 and 6.24% at September 30, 2016, compared to 2.50% for the fully phased-in capital conservation buffer required by January 1, 2019. |
(1) | the success, impact, and timing of the implementation of Peoples' business strategies, including the successful integration of acquisitions and the expansion of consumer lending activity; |
(2) | competitive pressures among financial institutions or from non-financial institutions which may increase significantly, including product and pricing pressures, changes to third-party relationships and revenues, and Peoples' ability to attract, develop and retain qualified professionals; |
(3) | changes in the interest rate environment due to economic conditions and/or the fiscal policies of the United States ("U.S.") government and the Board of Governors of the Federal Reserve System (the "Federal Reserve Board"), which may adversely impact interest rates, interest margins, loan demand and interest rate sensitivity; |
(4) | uncertainty regarding the nature, timing and effect of legislative or regulatory changes or actions, promulgated and to be promulgated by governmental and regulatory agencies in the State of Ohio, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements which adversely affect their respective businesses, including in particular the rules and regulations promulgated and to be promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the Basel III regulatory capital reform; |
(5) | changes in policy and other regulatory and legal developments accompanying the current presidential administration and uncertainty or speculation pending the enactment of such changes; |
(6) | Peoples' ability to leverage the core banking system upgrade that occurred in the fourth quarter of 2016 (including the related core operating systems, data systems and products) without complications or difficulties that may otherwise result in the loss of customers, operational problems or one-time costs currently not anticipated to arise in connection with implementing new features and functionality; |
(7) | local, regional, national and international economic conditions and the impact these conditions may have on Peoples, its customers and its counterparties, and Peoples' assessment of the impact, which may be different than anticipated; |
(8) | Peoples' ability to integrate any future acquisitions which may be unsuccessful, or may be more difficult, time-consuming or costly than expected; |
(9) | Peoples may issue equity securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders; |
(10) | changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated; |
(11) | adverse changes in the economic conditions and/or activities, including, but not limited to, continued economic uncertainty in the U.S., the European Union (including uncertainty surrounding the actions to be taken to implement the referendum by British voters to exit the European Union), Asia and other areas, which could decrease sales volumes, add volatility to the global stock markets and increase loan delinquencies and defaults; |
(12) | deterioration in the credit quality of Peoples' loan portfolio, which may adversely impact the provision for loan losses; |
(13) | changes in accounting standards, policies, estimates or procedures which may adversely affect Peoples' reported financial condition or results of operations; |
(14) | Peoples' assumptions and estimates used in applying critical accounting policies, which may prove unreliable, inaccurate or not predictive of actual results; |
(15) | adverse changes in the conditions and trends in the financial markets, including political developments, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities; |
(16) | Peoples' ability to receive dividends from its subsidiaries; |
(17) | Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity; |
(18) | the impact of minimum capital thresholds established as a part of the implementation of Basel III; |
(19) | the impact of larger or similar sized financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity; |
(20) | the costs and effects of regulatory and legal developments, including the outcome of potential regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; |
(21) | Peoples' ability to secure confidential information through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, may prove inadequate, which could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss; |
(22) | ability to anticipate and respond to technological changes which can impact Peoples' ability to respond to customer needs and meet competitive demands; |
(23) | changes in consumer spending, borrowing and saving habits, whether due to changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated; |
(24) | the overall adequacy of Peoples' risk management program; |
(25) | the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters, pandemics, cyber attacks, civil unrest, military or terrorist activities or international conflicts; |
(26) | significant changes in the tax laws, which may adversely affect the fair values of deferred tax assets and obligations of states and political subdivisions held in Peoples' investment securities portfolio; and |
(27) | other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2016 ("Peoples' 2016 Form 10-K"). |
◦ | On October 23, 2017, Peoples entered into a merger agreement with ASB Financial Corp (“ASB”) that calls for ASB to merge into Peoples and for ASB’s wholly-owned subsidiary, American Savings Bank, fsb, which operates six offices located in southern Ohio and northern Kentucky, to merge into Peoples Bank. This transaction is expected to close during the second quarter of 2018, subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of Peoples and of ASB. As of June 30, 2017, ASB had approximately $293.6 million in total assets, which included approximately $241.5 million in net loans, and approximately $210.4 million in total deposits. Under the terms of the ASB agreement, shareholders of ASB can elect to receive either 0.592 shares of Peoples' common stock for each share of ASB common stock or $20.00 cash per share with a limit of 15% of the merger consideration being paid in cash. |
◦ | On October 2, 2017, Peoples Insurance acquired a property and casualty focused independent insurance agency with annual net revenue of approximately $0.8 million located in the Cleveland, Ohio area. The acquisition will not materially impact Peoples' financial position, results of operations or cash flows. |
◦ | During the third quarter of 2017, Peoples reduced its position in certain investment securities. This action was taken as a result of the high appreciation in the market value of these securities. The sales completed resulted in a net gain on investment securities of $1.9 million, and are not a normal occurrence for our business. |
◦ | Peoples continually evaluates its overall balance sheet position given the interest rate environment. During the second quarter of 2017, Peoples borrowed an additional $45.0 million of long-term FHLB non-amortizing advances, which have interest rates ranging from 1.74% to 2.03% and mature between 2020 and 2022. |
◦ | During the first quarter of 2017, Peoples borrowed an additional $30.0 million of long-term FHLB non-amortizing advances, which have interest rates ranging from 1.20% to 1.46% and mature between 2018 and 2019. |
◦ | On March 31, 2017, Peoples closed four full-service bank branches. The closures included two Ohio offices located in Belpre and Wilmington, and two West Virginia offices located in Huntington and Point Pleasant. Peoples will close two additional full-service bank branches in the fourth quarter of 2017, one located in Centerville, Ohio and the other located in Coshocton, Ohio. Peoples continues to evaluate its bank branch network in an effort to optimize efficiency. |
◦ | On January 31, 2017, Peoples Insurance acquired a third-party insurance administration company located in Piketon, Ohio for total cash consideration of $0.5 million, and recorded $0.5 million of customer relationship intangibles. The acquisition did not materially impact Peoples' financial position, results of operations or cash flows. |
◦ | On January 27, 2017, Peoples entered into two $10.0 million forward starting interest rate swaps, which will become effective in 2018 and mature between 2025 and 2027, with interest rates ranging from 2.47% to 2.53%. For additional information regarding Peoples' interest rate swaps, refer to Note 9 of the Notes to the Unaudited Consolidated Financial Statements. |
◦ | In the fourth quarter of 2016, Peoples converted its core banking system (including ancillary systems as well as hardware, operating systems, application software and data center locations). The conversion resulted in a pre-tax combined revenue and expense impact of $1.3 million, or $0.05 in earnings per diluted share, for the full year of 2016. The costs recorded in the fourth quarter, third quarter and second quarter of 2016 were $700,000, $423,000 and $90,000, respectively. Deposit account service charges were impacted by the system conversion as Peoples granted waivers of $85,000 related to account service charges in the fourth quarter of 2016. |
◦ | During the fourth quarter of 2016, Peoples entered into two $5.0 million forward starting interest rate swaps, which become effective in 2018 and mature in 2022 and 2026, with interest rates of 1.56% and 1.83%. For additional information regarding Peoples' interest rate swaps, refer to Note 9 of the Notes to the Unaudited Consolidated Financial Statements. |
◦ | During the second quarter of 2016, Peoples executed the following transactions to take advantage of the low interest rates: |
▪ | Peoples restructured $20.0 million of FHLB borrowings that had a weighted-average rate of 2.97%, resulting in a $700,000 loss. Peoples replaced these borrowings with a long-term FHLB advance, which has an interest rate of 2.17% and matures in 2026. |
▪ | Peoples borrowed an additional $35.0 million of long-term FHLB amortizing advances, which had interest rates ranging from 1.08% to 1.40%, and mature between 2019 and 2031. |
▪ | Peoples entered into three $10.0 million forward starting interest rate swaps, which become effective in 2018 and mature between 2023 and 2025, with interest rates ranging from 1.49% to 1.56%. These swaps locked in funding rates for $40.0 million in FHLB advances that mature in 2018, which have interest rates ranging from 3.65% to 3.92%. For additional information regarding Peoples' interest rate swaps, refer to Note 9 of the Notes to the Unaudited Consolidated Financial Statements. |
◦ | On June 8, 2016, Peoples purchased an additional $35.0 million in bank owned life insurance ("BOLI"). The additional BOLI added $560,000 in non-interest income in the first nine months of 2017, compared to the first nine months of 2016. |
◦ | On March 4, 2016, Peoples entered into a Credit Agreement (the "RBJ Credit Agreement") with Raymond James, which provides Peoples with a revolving line of credit in the maximum aggregate principal amount of $15.0 million, that may be used: (i) to make acquisitions; (ii) to make stock repurchases; (iii) for working capital needs; and (iv) for other general corporate purposes. On March 4, 2016, Peoples paid upfront fees for the establishment of a revolving line of credit agreement of $70,600, representing 0.47% of the loan commitment under the RJB Credit Agreement. |
◦ | Effective March 2, 2016, Peoples terminated the loan agreement with U.S. Bank National Association dated as of December 18, 2012, as amended (the "U.S. Bank Loan Agreement"). As of the termination date, Peoples had no |
◦ | On January 6, 2016, Peoples Bank acquired a small financial advisory book of business in Marietta, Ohio for total cash consideration of $0.5 million, and recorded $0.5 million of customer relationship intangibles. The acquisition did not materially impact Peoples' financial position, results of operations or cash flows. |
◦ | Peoples' net interest income and net interest margin are impacted by changes in market interest rates based upon actions taken by the Federal Reserve Board (the "Fed"), either directly or through its Open Market Committee. These actions include changing its target Federal Funds Rate (the interest rate at which banks lend money to each other), Discount Rate (the interest rate charged to banks for money borrowed from a Federal Reserve Bank) and longer-term market interest rates (primarily U.S. Treasury securities). Interest rates also are affected by investor demand for U.S. Treasury securities. The resulting changes in the yield curve slope have a direct impact on reinvestment rates for Peoples' earning assets. |
◦ | The Fed raised the benchmark Federal Funds Target Rate by 25 basis points in each of December of 2016 and March and June of 2017. Peoples' management believes the Fed will likely raise the rate by 25 basis points again at its December 2017 meeting and potentially three more times in 2018. The Fed has also begun to reduce the size of its $4.5 trillion dollar balance sheet, which could result in higher interest rates as well. The minutes of the September 2017 Federal Open Market Committee meeting released in October noted concerns about raising interest rates given the low level of inflation in the economy. However, there was no indication that the Fed would alter its current posture of tightening monetary policy at future meetings. Peoples is closely monitoring interest rates, both foreign and domestic, and potential impacts of changes in interest rates to Peoples Bank’s operations. |
For the Three Months Ended | ||||||||||||||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Yield/Cost | Average Balance | Income/ Expense | Yield/Cost | Average Balance | Income/ Expense | Yield/Cost | |||||||||||||||||
Short-term investments | $ | 12,812 | $ | 42 | 1.30 | % | $ | 12,275 | $ | 26 | 0.85 | % | $ | 8,663 | $ | 10 | 0.46 | % | ||||||||
Investment securities (a): | ||||||||||||||||||||||||||
Taxable (b) | 780,667 | 5,661 | 2.90 | % | 768,495 | 5,002 | 2.60 | % | 736,677 | 4,500 | 2.44 | % | ||||||||||||||
Nontaxable (c) | 105,077 | 1,078 | 4.10 | % | 111,003 | 1,172 | 4.22 | % | 112,589 | 1,186 | 4.21 | % | ||||||||||||||
Total investment securities | 885,744 | 6,739 | 3.04 | % | 879,498 | 6,174 | 2.81 | % | 849,266 | 5,686 | 2.68 | % | ||||||||||||||
Loans (c) (d): | ||||||||||||||||||||||||||
Commercial real estate, construction | 118,208 | 1,337 | 4.43 | % | 107,224 | 1,158 | 4.27 | % | 93,353 | 915 | 3.84 | % | ||||||||||||||
Commercial real estate, other | 750,260 | 8,890 | 4.64 | % | 735,915 | 8,892 | 4.78 | % | 707,269 | 8,362 | 4.63 | % | ||||||||||||||
Commercial and industrial | 438,524 | 5,196 | 4.64 | % | 433,277 | 4,858 | 4.44 | % | 378,053 | 3,855 | 3.99 | % | ||||||||||||||
Residential real estate (e) | 507,906 | 5,468 | 4.31 | % | 520,863 | 5,564 | 4.27 | % | 554,039 | 6,070 | 4.38 | % | ||||||||||||||
Home equity lines of credit | 110,741 | 1,291 | 4.63 | % | 111,185 | 1,233 | 4.45 | % | 110,232 | 1,246 | 4.50 | % | ||||||||||||||
Consumer, indirect | 322,072 | 2,955 | 3.64 | % | 293,917 | 2,570 | 3.51 | % | 218,318 | 1,975 | 3.64 | % | ||||||||||||||
Consumer, other | 70,204 | 1,270 | 7.18 | % | 69,329 | 1,229 | 7.11 | % | 72,729 | 1,108 | 6.13 | % | ||||||||||||||
Total loans | 2,317,915 | 26,407 | 4.49 | % | 2,271,710 | 25,504 | 4.46 | % | 2,133,993 | 23,531 | 4.35 | % | ||||||||||||||
Less: Allowance for loan losses | (18,869 | ) | (18,554 | ) | (17,787 | ) | ||||||||||||||||||||
Net loans | 2,299,046 | 26,407 | 4.53 | % | 2,253,156 | 25,504 | 4.50 | % | 2,116,206 | 23,531 | 4.39 | % | ||||||||||||||
Total earning assets | 3,197,602 | 33,188 | 4.10 | % | 3,144,929 | 31,704 | 4.01 | % | 2,974,135 | 29,227 | 3.89 | % | ||||||||||||||
Intangible assets | 144,267 | 145,052 | 147,466 | |||||||||||||||||||||||
Other assets | 199,351 | 199,720 | 203,035 | |||||||||||||||||||||||
Total assets | $ | 3,541,220 | $ | 3,489,701 | $ | 3,324,636 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Savings accounts | $ | 443,599 | $ | 65 | 0.06 | % | $ | 444,824 | $ | 61 | 0.06 | % | $ | 439,464 | $ | 59 | 0.05 | % | ||||||||
Governmental deposit accounts | 309,623 | 200 | 0.26 | % | 301,448 | 168 | 0.22 | % | 311,650 | 152 | 0.19 | % | ||||||||||||||
Interest-bearing demand accounts | 320,788 | 133 | 0.16 | % | 295,080 | 98 | 0.13 | % | 264,182 | 61 | 0.09 | % | ||||||||||||||
Money market accounts | 389,292 | 253 | 0.26 | % | 393,807 | 197 | 0.20 | % | 400,749 | 175 | 0.17 | % | ||||||||||||||
Brokered certificates of deposit | 106,448 | 454 | 1.69 | % | 110,160 | 459 | 1.67 | % | 31,910 | 203 | 2.56 | % | ||||||||||||||
Retail certificates of deposit | 348,047 | 760 | 0.87 | % | 355,256 | 746 | 0.84 | % | 398,388 | 777 | 0.78 | % | ||||||||||||||
Total interest-bearing deposits | 1,917,797 | 1,865 | 0.39 | % | 1,900,575 | 1,729 | 0.36 | % | 1,846,343 | 1,427 | 0.31 | % | ||||||||||||||
Borrowed funds: | ||||||||||||||||||||||||||
Short-term FHLB advances | 96,760 | 336 | 1.38 | % | 83,352 | 201 | 0.96 | % | 73,413 | 79 | 0.43 | % | ||||||||||||||
Retail repurchase agreements | 77,706 | 33 | 0.17 | % | 76,153 | 32 | 0.17 | % | 70,401 | 30 | 0.17 | % | ||||||||||||||
Total short-term borrowings | 174,466 | 369 | 0.84 | % | 159,505 | 233 | 0.58 | % | 143,814 | 109 | 0.30 | % | ||||||||||||||
Long-term FHLB advances | 153,070 | 788 | 2.04 | % | 131,179 | 690 | 2.11 | % | 100,938 | 594 | 2.34 | % | ||||||||||||||
Wholesale repurchase agreements | 40,000 | 371 | 3.71 | % | 40,000 | 367 | 3.67 | % | 40,000 | 371 | 3.71 | % | ||||||||||||||
Other borrowings | 7,003 | 115 | 6.57 | % | 6,952 | 99 | 5.70 | % | 6,794 | 106 | 6.11 | % | ||||||||||||||
Total long-term borrowings | 200,073 | 1,274 | 2.53 | % | 178,131 | 1,156 | 2.60 | % | 147,732 | 1,071 | 2.89 | % | ||||||||||||||
Total borrowed funds | 374,539 | 1,643 | 1.74 | % | 337,636 | 1,389 | 1.65 | % | 291,546 | 1,180 | 1.61 | % | ||||||||||||||
Total interest-bearing liabilities | 2,292,336 | 3,508 | 0.61 | % | 2,238,211 | 3,118 | 0.56 | % | 2,137,889 | 2,607 | 0.49 | % | ||||||||||||||
Non-interest-bearing deposits | 756,098 | 769,406 | 709,432 | |||||||||||||||||||||||
Other liabilities | 36,588 | 34,685 | 38,709 | |||||||||||||||||||||||
Total liabilities | 3,085,022 | 3,042,302 | 2,886,030 | |||||||||||||||||||||||
Total stockholders’ equity | 456,198 | 447,399 | 438,606 | |||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,541,220 | $ | 3,489,701 | $ | 3,324,636 | ||||||||||||||||||||
Interest rate spread (b) | $ | 29,680 | 3.49 | % | $ | 28,586 | 3.45 | % | $ | 26,620 | 3.40 | % | ||||||||||||||
Net interest margin (b) | 3.67 | % | 3.62 | % | 3.54 | % |
For the Nine Months Ended | |||||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||||
(Dollars in thousands) | Average Balance | Income/ Expense | Yield/Cost | Average Balance | Income/ Expense | Yield/Cost | |||||||||||
Short-term investments | $ | 10,854 | $ | 83 | 1.02 | % | $ | 10,052 | $ | 37 | 0.49 | % | |||||
Investment securities (a): | |||||||||||||||||
Taxable (b) | 766,116 | 15,416 | 2.68 | % | 754,922 | 14,010 | 2.47 | % | |||||||||
Nontaxable (c) | 109,921 | 3,473 | 4.21 | % | 112,331 | 3,588 | 4.26 | % | |||||||||
Total investment securities | 876,037 | 18,889 | 2.87 | % | 867,253 | 17,598 | 2.71 | % | |||||||||
Loans (c) (d): | |||||||||||||||||
Commercial real estate, construction | 106,637 | 3,488 | 4.31 | % | 88,373 | 2,566 | 3.81 | % | |||||||||
Commercial real estate, other | 740,263 | 26,205 | 4.67 | % | 721,620 | 25,195 | 4.59 | % | |||||||||
Commercial and industrial | 434,976 | 14,599 | 4.43 | % | 369,248 | 11,568 | 4.12 | % | |||||||||
Residential real estate (e) | 519,989 | 16,801 | 4.31 | % | 560,681 | 18,341 | 4.36 | % | |||||||||
Home equity lines of credit | 111,012 | 3,683 | 4.44 | % | 108,380 | 3,639 | 4.49 | % | |||||||||
Consumer, indirect | 295,461 | 7,758 | 3.51 | % | 195,613 | 5,432 | 3.71 | % | |||||||||
Consumer, other | 69,914 | 3,718 | 7.11 | % | 72,060 | 3,226 | 5.98 | % | |||||||||
Total loans | 2,278,252 | 76,252 | 4.46 | % | 2,115,975 | 69,967 | 4.41 | % | |||||||||
Less: Allowance for loan losses | (18,671 | ) | (17,333 | ) | |||||||||||||
Net loans | 2,259,581 | 76,252 | 4.47 | % | 2,098,642 | 69,967 | 4.41 | % | |||||||||
Total earning assets | 3,146,472 | 95,224 | 4.02 | % | 2,975,947 | 87,602 | 3.90 | % | |||||||||
Intangible assets | 144,950 | 148,482 | |||||||||||||||
Other assets | 201,350 | 175,909 | |||||||||||||||
Total assets | $ | 3,492,772 | $ | 3,300,338 | |||||||||||||
Deposits: | |||||||||||||||||
Savings accounts | $ | 442,559 | $ | 184 | 0.06 | % | $ | 433,233 | $ | 173 | 0.05 | % | |||||
Governmental deposit accounts | 298,321 | 499 | 0.22 | % | 304,422 | 444 | 0.19 | % | |||||||||
Interest-bearing demand accounts | 300,911 | 310 | 0.14 | % | 255,796 | 151 | 0.08 | % | |||||||||
Money market accounts | 393,944 | 637 | 0.22 | % | 399,853 | 500 | 0.17 | % | |||||||||
Brokered certificates of deposit | 85,576 | 1,218 | 1.90 | % | 41,965 | 890 | 2.83 | % | |||||||||
Retail certificates of deposit | 363,747 | 2,233 | 0.82 | % | 417,599 | 2,373 | 0.76 | % | |||||||||
Total interest-bearing deposits | 1,885,058 | 5,081 | 0.36 | % | 1,852,868 | 4,531 | 0.33 | % | |||||||||
Borrowed funds: | |||||||||||||||||
Short-term FHLB advances | 104,703 | 757 | 0.97 | % | 67,533 | 208 | 0.41 | % | |||||||||
Retail repurchase agreements | 74,940 | 96 | 0.17 | % | 73,275 | 93 | 0.17 | % | |||||||||
Total short-term borrowings | 179,643 | 853 | 0.64 | % | 140,808 | 301 | 0.29 | % | |||||||||
Long-term FHLB advances | 136,570 | 2,140 | 2.10 | % | 79,829 | 1,653 | 2.77 | % | |||||||||
Wholesale repurchase agreements | 40,000 | 1,100 | 3.67 | % | 40,000 | 1,104 | 3.68 | % | |||||||||
Other borrowings | 6,951 | 324 | 6.21 | % | 6,758 | 307 | 5.97 | % | |||||||||
Total long-term borrowings | 183,521 | 3,564 | 2.59 | % | 126,587 | 3,064 | 3.23 | % | |||||||||
Total borrowed funds | 363,164 | 4,417 | 1.62 | % | 267,395 | 3,365 | 1.68 | % | |||||||||
Total interest-bearing liabilities | 2,248,222 | 9,498 | 0.56 | % | 2,120,263 | 7,896 | 0.50 | % | |||||||||
Non-interest-bearing deposits | 761,308 | 715,244 | |||||||||||||||
Other liabilities | 35,650 | 34,062 | |||||||||||||||
Total liabilities | 3,045,180 | 2,869,569 | |||||||||||||||
Total stockholders’ equity | 447,592 | 430,769 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,492,772 | $ | 3,300,338 | |||||||||||||
Interest rate spread (c) | $ | 85,726 | 3.46 | % | $ | 79,706 | 3.40 | % | |||||||||
Net interest margin (c) | 3.61 | % | 3.55 | % |
(a) | Average balances are based on carrying value. |
(c) | Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal tax rate. |
(d) | Average balances include nonaccrual, impaired loans and loans held for sale. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented. |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2017 Compared to | Compared to | |||||||||||||||||||||||||||
(Dollars in thousands) | June 30, 2017 | September 30, 2016 | September 30, 2016 | |||||||||||||||||||||||||
Increase (decrease) in: | Rate | Volume | Total (1) | Rate | Volume | Total (1) | Rate | Volume | Total (1) | |||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||
Short-term investments | $ | 14 | $ | 2 | $ | 16 | $ | 24 | $ | 8 | $ | 32 | $ | 42 | $ | 4 | $ | 46 | ||||||||||
Investment Securities (2): | ||||||||||||||||||||||||||||
Taxable | 579 | 80 | 659 | 880 | 281 | 1,161 | 1,196 | 210 | 1,406 | |||||||||||||||||||
Nontaxable | (33 | ) | (61 | ) | (94 | ) | (30 | ) | (78 | ) | (108 | ) | (39 | ) | (76 | ) | (115 | ) | ||||||||||
Total investment income | 546 | 19 | 565 | 850 | 203 | 1,053 | 1,157 | 134 | 1,291 | |||||||||||||||||||
Loans (2): | ||||||||||||||||||||||||||||
Commercial real estate, construction | 47 | 132 | 179 | 155 | 267 | 422 | 357 | 565 | 922 | |||||||||||||||||||
Commercial real estate, other | (832 | ) | 830 | (2 | ) | 19 | 509 | 528 | 409 | 601 | 1,010 | |||||||||||||||||
Commercial and industrial | 266 | 72 | 338 | 675 | 666 | 1,341 | 901 | 2,130 | 3,031 | |||||||||||||||||||
Residential real estate | 242 | (338 | ) | (96 | ) | (104 | ) | (498 | ) | (602 | ) | (223 | ) | (1,317 | ) | (1,540 | ) | |||||||||||
Home equity lines of credit | 89 | (31 | ) | 58 | 39 | 6 | 45 | (60 | ) | 104 | 44 | |||||||||||||||||
Consumer, indirect | 110 | 275 | 385 | 23 | 957 | 980 | (484 | ) | 2,810 | 2,326 | ||||||||||||||||||
Consumer, other | 18 | 23 | 41 | 389 | (227 | ) | 162 | 647 | (155 | ) | 492 | |||||||||||||||||
Total loan income | (60 | ) | 963 | 903 | 1,196 | 1,680 | 2,876 | 1,547 | 4,738 | 6,285 | ||||||||||||||||||
Total interest income | 500 | 984 | 1,484 | 2,070 | 1,891 | 3,961 | 2,746 | 4,876 | 7,622 | |||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Savings accounts | 5 | (1 | ) | 4 | 5 | 1 | 6 | 7 | 4 | 11 | ||||||||||||||||||
Governmental deposit accounts | 27 | 5 | 32 | 55 | (7 | ) | 48 | 70 | (15 | ) | 55 | |||||||||||||||||
Interest-bearing demand accounts | 25 | 10 | 35 | 57 | 15 | 72 | 129 | 30 | 159 | |||||||||||||||||||
Money market accounts | 71 | (15 | ) | 56 | 111 | (33 | ) | 78 | 149 | (12 | ) | 137 | ||||||||||||||||
Brokered certificates of deposit | 33 | (38 | ) | (5 | ) | (438 | ) | 689 | 251 | (514 | ) | 842 | 328 | |||||||||||||||
Retail certificates of deposit | 80 | (66 | ) | 14 | 364 | (381 | ) | (17 | ) | 261 | (401 | ) | (140 | ) | ||||||||||||||
Total deposit cost | 241 | (105 | ) | 136 | 154 | 284 | 438 | 102 | 448 | 550 | ||||||||||||||||||
Borrowed funds: | ||||||||||||||||||||||||||||
Short-term borrowings | 98 | 38 | 136 | 223 | 37 | 260 | 128 | 424 | 552 | |||||||||||||||||||
Long-term borrowings | (117 | ) | 235 | 118 | (273 | ) | 476 | 203 | (671 | ) | 1,171 | 500 | ||||||||||||||||
Total borrowed funds cost | (19 | ) | 273 | 254 | (50 | ) | 513 | 463 | (543 | ) | 1,595 | 1,052 | ||||||||||||||||
Total interest expense | 222 | 168 | 390 | 104 | 797 | 901 | (441 | ) | 2,043 | 1,602 | ||||||||||||||||||
Net interest income | $ | 278 | $ | 816 | $ | 1,094 | $ | 1,966 | $ | 1,094 | $ | 3,060 | $ | 3,187 | $ | 2,833 | $ | 6,020 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Net interest income, as reported | $ | 29,220 | $ | 28,090 | $ | 26,123 | $ | 84,255 | $ | 78,198 | ||||||
Taxable equivalent adjustments | 460 | 496 | 497 | 1,471 | 1,508 | |||||||||||
Fully tax-equivalent net interest income | $ | 29,680 | $ | 28,586 | $ | 26,620 | $ | 85,726 | $ | 79,706 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Loan losses | $ | 900 | $ | 850 | $ | 978 | 2,150 | 2,410 | ||||||||
Checking account overdrafts | 186 | 97 | 168 | $ | 507 | $ | 418 | |||||||||
Provision for loan losses | $ | 1,086 | $ | 947 | $ | 1,146 | $ | 2,657 | $ | 2,828 | ||||||
As a percentage of average total loans (a) | 0.19 | % | 0.17 | % | 0.21 | % | 0.16 | % | 0.18 | % | ||||||
(a) Presented on an annualized basis |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Net (loss) gain on bank premises and equipment | $ | (38 | ) | $ | 133 | $ | 1 | $ | 92 | $ | (126 | ) | ||||
Net gain (loss) on other real estate owned ("OREO") | 13 | (24 | ) | — | (11 | ) | (1 | ) | ||||||||
Net loss on debt extinguishment | — | — | — | — | (707 | ) | ||||||||||
Net loss on other transactions | — | — | (225 | ) | — | (190 | ) | |||||||||
Net (loss) gain on asset disposals and other transactions | $ | (25 | ) | $ | 109 | $ | (224 | ) | $ | 81 | $ | (1,024 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Property and casualty insurance commissions | $ | 2,638 | $ | 2,753 | $ | 2,579 | $ | 7,633 | $ | 7,699 | ||||||
Performance-based commissions | 99 | 2 | 91 | 1,407 | 1,720 | |||||||||||
Life and health insurance commissions | 433 | 467 | 420 | 1,310 | 1,318 | |||||||||||
Credit life and A&H insurance commissions | 2 | 17 | 12 | 27 | 30 | |||||||||||
Other fees and charges | 173 | 175 | 35 | 484 | 167 | |||||||||||
Insurance income | $ | 3,345 | $ | 3,414 | $ | 3,137 | $ | 10,861 | $ | 10,934 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Fiduciary | $ | 1,956 | $ | 2,093 | $ | 1,851 | $ | 5,922 | $ | 5,501 | ||||||
Brokerage | 882 | 884 | 841 | 2,575 | 2,349 | |||||||||||
Trust and investment income | $ | 2,838 | $ | 2,977 | $ | 2,692 | $ | 8,497 | $ | 7,850 |
September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||
(Dollars in thousands) | |||||||||||||||
Trust assets under administration and management | $ | 1,418,360 | $ | 1,393,435 | $ | 1,362,243 | $ | 1,301,509 | $ | 1,292,044 | |||||
Brokerage assets under administration and management | 862,530 | 836,192 | 805,361 | 777,771 | 754,168 | ||||||||||
Total assets under administration and management | $ | 2,280,890 | $ | 2,229,627 | $ | 2,167,604 | $ | 2,079,280 | $ | 2,046,212 | |||||
Quarterly average | $ | 2,254,997 | $ | 2,199,162 | $ | 2,122,036 | $ | 2,053,121 | $ | 2,031,378 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Overdraft and non-sufficient funds fees | $ | 1,765 | $ | 1,642 | $ | 2,105 | $ | 5,021 | $ | 5,806 | |||||
Account maintenance fees | 543 | 545 | 605 | 1,624 | 1,751 | ||||||||||
Other fees and charges | 99 | 107 | 123 | 485 | 442 | ||||||||||
Deposit account service charges | $ | 2,407 | $ | 2,294 | $ | 2,833 | $ | 7,130 | $ | 7,999 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | ||||||||||||
(Dollars in thousands) | 2017 | 2016 | |||||||||||||
Base salaries and wages | $ | 10,043 | $ | 9,750 | $ | 9,782 | $ | 29,860 | $ | 29,439 | |||||
Sales-based and incentive compensation | 2,653 | 2,878 | 2,501 | 7,630 | 6,310 | ||||||||||
Employee benefits | 1,535 | 1,509 | 1,492 | 4,971 | 4,387 | ||||||||||
Stock-based compensation | 359 | 443 | 346 | 1,370 | 1,009 | ||||||||||
Deferred personnel costs | (394 | ) | (447 | ) | (453 | ) | (1,201 | ) | (1,397 | ) | |||||
Payroll taxes and other employment costs | 945 | 916 | 916 | 3,056 | 3,133 | ||||||||||
Salaries and employee benefit costs | $ | 15,141 | $ | 15,049 | $ | 14,584 | $ | 45,686 | $ | 42,881 | |||||
Full-time equivalent employees: | |||||||||||||||
Actual at end of period | 778 | 775 | 799 | 778 | 799 | ||||||||||
Average during the period | 778 | 774 | 798 | 778 | 809 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Depreciation | $ | 1,206 | $ | 1,200 | $ | 1,337 | $ | 3,649 | $ | 3,773 | ||||||
Repairs and maintenance costs | 577 | 682 | 589 | 1,930 | 1,814 | |||||||||||
Net rent expense | 264 | 205 | 244 | 689 | 712 | |||||||||||
Property taxes, utilities and other costs | 572 | 561 | 598 | 1,712 | 1,856 | |||||||||||
Net occupancy and equipment expense | $ | 2,619 | $ | 2,648 | $ | 2,768 | $ | 7,980 | $ | 8,155 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Pre-Provision Net Revenue: | ||||||||||||||||
Income before income taxes | $ | 16,022 | $ | 14,180 | $ | 11,448 | $ | 42,863 | $ | 34,538 | ||||||
Add: provision for loan losses | 1,086 | 947 | 1,146 | 2,657 | 2,828 | |||||||||||
Add: loss on debt extinguishment | — | — | — | — | 707 | |||||||||||
Add: net loss on OREO | — | 24 | — | 24 | 1 | |||||||||||
Add: net loss on investment securities | — | — | 1 | — | — | |||||||||||
Add: net loss on other transactions | 38 | — | 225 | 41 | 316 | |||||||||||
Less: net gain on OREO | 13 | — | — | 13 | — | |||||||||||
Less: net gain on investment securities | 1,861 | 18 | — | 2,219 | 862 | |||||||||||
Less: net gain on other transactions | — | 133 | 1 | 133 | — | |||||||||||
Pre-provision net revenue | $ | 15,272 | $ | 15,000 | $ | 12,819 | $ | 43,220 | $ | 37,528 | ||||||
Total average assets | $ | 3,541,220 | $ | 3,489,701 | $ | 3,324,636 | $ | 3,492,772 | $ | 3,300,338 | ||||||
Pre-provision net revenue to total average assets (a) | 1.71 | % | 1.72 | % | 1.53 | % | 1.65 | % | 1.52 | % | ||||||
(a) Presented on an annualized basis. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Core non-interest expense: | ||||||||||||||||
Total non-interest expense | $ | 26,558 | $ | 26,680 | $ | 26,842 | $ | 80,569 | $ | 79,629 | ||||||
Less: system conversion costs | — | — | 423 | — | 513 | |||||||||||
Core non-interest expense | $ | 26,558 | $ | 26,680 | $ | 26,419 | $ | 80,569 | $ | 79,116 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Efficiency ratio: | ||||||||||||||||
Total non-interest expense | $ | 26,558 | $ | 26,680 | $ | 26,842 | $ | 80,569 | $ | 79,629 | ||||||
Less: Amortization of other intangible assets | 869 | 871 | 1,008 | 2,603 | 3,023 | |||||||||||
Adjusted total non-interest expense | $ | 25,689 | $ | 25,809 | $ | 25,834 | $ | 77,966 | $ | 76,606 | ||||||
Total non-interest income | 14,446 | 13,717 | 13,313 | 41,834 | 38,797 | |||||||||||
Less net gain (loss) on investment securities | 1,861 | 109 | (1 | ) | 2,219 | 862 | ||||||||||
Less net (loss) gain on asset disposals and other transactions | (25 | ) | 18 | (224 | ) | 81 | (1,024 | ) | ||||||||
Adjusted total non-interest income | $ | 12,610 | $ | 13,590 | $ | 13,538 | $ | 39,534 | $ | 38,959 | ||||||
Net interest income | $ | 29,220 | $ | 28,090 | $ | 26,123 | $ | 84,255 | $ | 78,198 | ||||||
Add: Fully tax-equivalent adjustment | 460 | 496 | 497 | 1,471 | 1,508 | |||||||||||
Net interest income on a fully taxable-equivalent basis | $ | 29,680 | $ | 28,586 | $ | 26,620 | $ | 85,726 | $ | 79,706 | ||||||
Adjusted revenue | $ | 42,290 | $ | 42,176 | $ | 40,158 | $ | 125,260 | $ | 118,665 | ||||||
Efficiency ratio | 60.74 | % | 61.19 | % | 64.33 | % | 62.24 | % | 64.56 | % | ||||||
Core non-interest expense | $ | 26,558 | $ | 26,680 | $ | 26,419 | $ | 80,569 | $ | 79,116 | ||||||
Less: Amortization of other intangible assets | 869 | 871 | 1,008 | 2,603 | 3,023 | |||||||||||
Adjusted non-interest expense | $ | 25,689 | $ | 25,809 | $ | 25,411 | $ | 77,966 | $ | 76,093 | ||||||
Total non-interest income | 12,610 | $ | 13,590 | 13,538 | 39,534 | 38,959 | ||||||||||
Net interest income on fully taxable-equivalent basis | $ | 29,680 | $ | 28,586 | $ | 26,620 | $ | 85,726 | $ | 79,706 | ||||||
Adjusted revenue | 42,290 | 42,176 | 40,158 | 125,260 | 118,665 | |||||||||||
Efficiency ratio adjusted for non-core items | 60.74 | % | 61.19 | % | 63.28 | % | 62.24 | % | 64.12 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | September 30, | |||||||||||||
(Dollars in thousands) | 2017 | 2016 | ||||||||||||||
Annualized Net Income Excluding Amortization of Other Intangible Assets: | ||||||||||||||||
Net income | $ | 10,895 | $ | 9,766 | $ | 7,792 | $ | 29,470 | $ | 23,749 | ||||||
Add: amortization of other intangible assets | 869 | 871 | 1,008 | 2,603 | 3,023 | |||||||||||
Less: tax effect (at 35% tax rate) of amortization of other intangible assets | 304 | 305 | 353 | 911 | 1,058 | |||||||||||
Net income excluding amortization of other intangible assets | $ | 11,460 | $ | 10,332 | $ | 8,447 | $ | 31,162 | $ | 25,714 | ||||||
Days in the quarter | 92 | 91 | 92 | 273 | 274 | |||||||||||
Days in the year | 365 | 365 | 366 | 365 | 366 | |||||||||||
Annualized net income | $ | 43,225 | $ | 39,171 | $ | 30,999 | $ | 39,401 | $ | 31,723 | ||||||
Annualized net income excluding amortization of other intangible assets | $ | 45,466 | $ | 41,442 | $ | 33,604 | $ | 41,663 | $ | 34,348 | ||||||
Average Tangible Stockholders' Equity: | ||||||||||||||||
Total average stockholders' equity | $ | 456,198 | $ | 447,399 | $ | 438,606 | $ | 447,592 | $ | 430,769 | ||||||
Less: average goodwill and other intangible assets | 144,267 | 145,052 | 147,466 | 144,950 | 148,482 | |||||||||||
Average tangible stockholders' equity | $ | 311,931 | $ | 302,347 | $ | 291,140 | $ | 302,642 | $ | 282,287 | ||||||
Return on Average Stockholders' Equity Ratio: | ||||||||||||||||
Annualized net income | $ | 43,225 | $ | 39,171 | $ | 30,999 | $ | 39,401 | $ | 31,723 | ||||||
Average stockholders' equity | $ | 456,198 | $ | 447,399 | $ | 438,606 | $ | 447,592 | $ | 430,769 | ||||||
Return on average stockholders' equity | 9.47 | % | 8.76 | % | 7.07 | % | 8.80 | % | 7.36 | % | ||||||
Return on Average Tangible Stockholders' Equity Ratio: | ||||||||||||||||
Annualized net income excluding amortization of other intangible assets | $ | 45,466 | $ | 41,442 | $ | 33,604 | $ | 41,663 | $ | 34,348 | ||||||
Average tangible stockholders' equity | $ | 311,931 | $ | 302,347 | $ | 291,140 | $ | 302,642 | $ | 282,287 | ||||||
Return on average tangible stockholders' equity | 14.58 | % | 13.71 | % | 11.54 | % | 13.77 | % | 12.17 | % |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Available-for-sale securities, at fair value: | |||||||||||||||
Obligations of: | |||||||||||||||
U.S. government sponsored agencies | $ | — | $ | — | $ | — | $ | 1,000 | $ | 1,001 | |||||
States and political subdivisions | 104,560 | 111,390 | 114,712 | 117,230 | 117,839 | ||||||||||
Residential mortgage-backed securities | 672,106 | 664,341 | 640,299 | 626,567 | 607,452 | ||||||||||
Commercial mortgage-backed securities | 7,128 | 8,092 | 16,424 | 19,291 | 23,283 | ||||||||||
Bank-issued trust preferred securities | 5,154 | 5,144 | 4,964 | 4,899 | 4,783 | ||||||||||
Equity securities | 8,073 | 10,121 | 10,562 | 8,953 | 7,785 | ||||||||||
Total fair value | $ | 797,021 | $ | 799,088 | $ | 786,961 | $ | 777,940 | $ | 762,143 | |||||
Total amortized cost | $ | 792,810 | $ | 792,803 | $ | 782,947 | $ | 777,017 | $ | 743,878 | |||||
Net unrealized gain | $ | 4,211 | $ | 6,285 | $ | 4,014 | $ | 923 | $ | 18,265 | |||||
Held-to-maturity securities, at amortized cost: | |||||||||||||||
Obligations of: | |||||||||||||||
States and political subdivisions | $ | 3,812 | $ | 3,815 | $ | 3,818 | $ | 3,820 | $ | 3,823 | |||||
Residential mortgage-backed securities | 33,648 | 34,264 | 34,812 | 33,858 | 34,203 | ||||||||||
Commercial mortgage-backed securities | 4,703 | 4,981 | 5,392 | 5,466 | 5,636 | ||||||||||
Total amortized cost | $ | 42,163 | $ | 43,060 | $ | 44,022 | $ | 43,144 | $ | 43,662 | |||||
Other investment securities, at cost | $ | 38,371 | $ | 38,371 | $ | 38,371 | $ | 38,371 | $ | 38,443 | |||||
Total investment portfolio: | |||||||||||||||
Amortized cost | $ | 873,344 | $ | 874,234 | $ | 865,340 | $ | 858,532 | $ | 825,983 | |||||
Carrying value | $ | 877,555 | $ | 880,519 | $ | 869,354 | $ | 859,455 | $ | 844,248 |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Total fair value | $ | 2,067 | $ | 2,502 | $ | 2,702 | $ | 2,991 | $ | 3,288 | |||||
Total amortized cost | 2,253 | 2,703 | 2,916 | 3,206 | 3,499 | ||||||||||
Net unrealized loss | $ | (186 | ) | $ | (201 | ) | $ | (214 | ) | $ | (215 | ) | $ | (211 | ) |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Gross originated loans: | |||||||||||||||
Commercial real estate, construction | $ | 111,187 | $ | 103,039 | $ | 93,886 | $ | 84,626 | $ | 70,838 | |||||
Commercial real estate, other | 573,256 | 567,537 | 535,474 | 531,557 | 507,842 | ||||||||||
Commercial real estate | 684,443 | 670,576 | 629,360 | 616,183 | 578,680 | ||||||||||
Commercial and industrial | 407,468 | 392,097 | 384,548 | 378,131 | 351,340 | ||||||||||
Residential real estate | 304,094 | 306,385 | 308,153 | 307,490 | 306,374 | ||||||||||
Home equity lines of credit | 88,421 | 88,229 | 85,512 | 85,617 | 83,412 | ||||||||||
Consumer, indirect | 335,436 | 305,580 | 283,106 | 252,024 | 229,334 | ||||||||||
Consumer, other | 68,286 | 67,287 | 66,283 | 67,579 | 67,973 | ||||||||||
Consumer | 403,722 | 372,867 | 349,389 | 319,603 | 297,307 | ||||||||||
Deposit account overdrafts | 507 | 521 | 721 | 1,080 | 1,074 | ||||||||||
Total originated loans | $ | 1,888,655 | $ | 1,830,675 | $ | 1,757,683 | $ | 1,708,104 | $ | 1,618,187 | |||||
Gross acquired loans (a): | |||||||||||||||
Commercial real estate, construction | $ | 8,565 | $ | 9,130 | $ | 9,431 | $ | 10,100 | $ | 10,242 | |||||
Commercial real estate, other | 174,157 | 182,682 | 194,581 | 204,466 | 221,036 | ||||||||||
Commercial real estate | 182,722 | 191,812 | 204,012 | 214,566 | 231,278 | ||||||||||
Commercial and industrial | 36,462 | 39,376 | 44,189 | 44,208 | 48,702 | ||||||||||
Residential real estate | 194,950 | 206,502 | 216,059 | 228,435 | 238,787 | ||||||||||
Home equity lines of credit | 22,366 | 23,481 | 24,516 | 25,875 | 27,784 | ||||||||||
Consumer, indirect | 408 | 533 | 656 | 808 | 952 | ||||||||||
Consumer, other | 1,472 | 1,980 | 2,387 | 2,940 | 3,518 | ||||||||||
Consumer | 1,880 | 2,513 | 3,043 | 3,748 | 4,470 | ||||||||||
Total acquired loans | $ | 438,380 | $ | 463,684 | $ | 491,819 | $ | 516,832 | $ | 551,021 | |||||
Total loans | $ | 2,327,035 | $ | 2,294,359 | $ | 2,249,502 | $ | 2,224,936 | $ | 2,169,208 | |||||
Percent of loans to total loans: | |||||||||||||||
Commercial real estate, construction | 5.1 | % | 4.9 | % | 4.6 | % | 4.3 | % | 3.7 | % | |||||
Commercial real estate, other | 32.2 | % | 32.7 | % | 32.4 | % | 33.0 | % | 33.8 | % | |||||
Commercial real estate | 37.3 | % | 37.6 | % | 37.0 | % | 37.3 | % | 37.5 | % | |||||
Commercial and industrial | 19.1 | % | 18.8 | % | 19.1 | % | 19.0 | % | 18.4 | % | |||||
Residential real estate | 21.4 | % | 22.4 | % | 23.3 | % | 24.1 | % | 25.1 | % | |||||
Home equity lines of credit | 4.8 | % | 4.9 | % | 4.9 | % | 5.0 | % | 5.1 | % | |||||
Consumer, indirect | 14.4 | % | 13.3 | % | 12.6 | % | 11.4 | % | 10.6 | % | |||||
Consumer, other | 3.0 | % | 3.0 | % | 3.1 | % | 3.2 | % | 3.3 | % | |||||
Consumer | 17.4 | % | 16.3 | % | 15.7 | % | 14.6 | % | 13.9 | % | |||||
Total percentage | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
Residential real estate loans being serviced for others | $ | 409,199 | $ | 402,516 | $ | 399,279 | $ | 398,134 | $ | 389,090 |
(a) | Includes all loans acquired, and related loan discount or premium recorded as part of acquisition accounting, in 2012 and thereafter. Loans that were acquired and subsequently re-underwritten, are reported as originated upon execution of such credit actions (for example, renewals and increases in lines of credit). |
(Dollars in thousands) | Outstanding Balance | Loan Commitments | Total Exposure | % of Total | |||||||
Commercial real estate, construction: | |||||||||||
Apartment complexes | $ | 45,081 | $ | 53,788 | $ | 98,869 | 39.4 | % | |||
Mixed commercial use facilities | 7,485 | 27,167 | 34,652 | 13.8 | % | ||||||
Office buildings | 3,363 | 28,287 | 31,650 | 12.6 | % | ||||||
Light industrial | 10,735 | 4,074 | 14,809 | 5.9 | % | ||||||
Assisted living facilities and nursing homes | 9,024 | 966 | 9,990 | 4.0 | % | ||||||
Land development | 8,943 | — | 8,943 | 3.6 | % | ||||||
Residential property | 2,461 | 2,514 | 4,975 | 2.0 | % | ||||||
Other | 32,660 | 14,134 | 46,794 | 18.7 | % | ||||||
Total commercial real estate, construction | $ | 119,752 | $ | 130,930 | $ | 250,682 | 100.0 | % |
(Dollars in thousands) | Outstanding Balance | Loan Commitments | Total Exposure | % of Total | |||||||
Commercial real estate, other: | |||||||||||
Office buildings and complexes: | |||||||||||
Owner occupied | $ | 42,537 | $ | 2,409 | $ | 44,946 | 5.8 | % | |||
Non-owner occupied | 44,859 | 288 | 45,147 | 5.8 | % | ||||||
Total office buildings and complexes | 87,396 | 2,697 | 90,093 | 11.6 | % | ||||||
Mixed commercial use facilities: | |||||||||||
Owner occupied | 36,611 | 1,070 | 37,681 | 4.9 | % | ||||||
Non-owner occupied | 34,006 | 970 | 34,976 | 4.5 | % | ||||||
Total mixed commercial use facilities | 70,617 | 2,040 | 72,657 | 9.4 | % | ||||||
Apartment complexes | 67,267 | 187 | 67,454 | 8.7 | % | ||||||
Light industrial facilities: | |||||||||||
Owner occupied | 50,500 | 308 | 50,808 | 6.5 | % | ||||||
Non-owner occupied | 13,178 | — | 13,178 | 1.7 | % | ||||||
Total light industrial facilities | 63,678 | 308 | 63,986 | 8.2 | % | ||||||
Retail facilities: | |||||||||||
Owner occupied | 20,493 | 565 | 21,058 | 2.7 | % | ||||||
Non-owner occupied | 37,626 | 982 | 38,608 | 5.0 | % | ||||||
Total retail facilities | 58,119 | 1,547 | 59,666 | 7.7 | % | ||||||
Lodging and lodging related | 38,571 | 2,994 | 41,565 | 5.4 | % | ||||||
Assisted living facilities and nursing homes | 31,352 | 250 | 31,602 | 4.1 | % | ||||||
Warehouse facilities | 27,937 | 605 | 28,542 | 3.7 | % | ||||||
Other | 302,476 | 18,622 | 321,098 | 41.2 | % | ||||||
Total commercial real estate, other | $ | 747,413 | $ | 29,250 | $ | 776,663 | 100.0 | % |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Commercial real estate | $ | 7,534 | $ | 7,328 | $ | 7,066 | $ | 7,172 | $ | 7,490 | |||||
Commercial and industrial | 6,415 | 6,727 | 6,534 | 6,353 | 5,690 | ||||||||||
Total commercial | 13,949 | 14,055 | 13,600 | 13,525 | 13,180 | ||||||||||
Residential real estate | 924 | 960 | 1,145 | 982 | 1,120 | ||||||||||
Home equity lines of credit | 679 | 676 | 675 | 688 | 686 | ||||||||||
Consumer, indirect | 2,814 | 2,549 | 2,409 | 2,312 | 2,240 | ||||||||||
Consumer, other | 441 | 402 | 438 | 518 | 592 | ||||||||||
Consumer | 3,255 | 2,951 | 2,847 | 2,830 | 2,832 | ||||||||||
Deposit account overdrafts | 70 | 83 | 111 | 171 | 143 | ||||||||||
Originated allowance for loan losses | 18,877 | 18,725 | 18,378 | 18,196 | 17,961 | ||||||||||
Acquired allowance for loan losses | 115 | 90 | 90 | 233 | 258 | ||||||||||
Allowance for loan losses | $ | 18,992 | $ | 18,815 | $ | 18,468 | $ | 18,429 | $ | 18,219 | |||||
As a percent of total loans, net of deferred fees and costs | 0.82 | % | 0.82 | % | 0.82 | % | 0.83 | % | 0.84 | % |
Three Months Ended | |||||||||||||||
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Gross charge-offs: | |||||||||||||||
Commercial real estate, other | $ | — | $ | 25 | $ | — | $ | 13 | $ | 28 | |||||
Commercial and industrial | 48 | — | 117 | — | — | ||||||||||
Residential real estate | 245 | 98 | 108 | 63 | 146 | ||||||||||
Home equity lines of credit | 80 | 17 | 3 | 15 | 29 | ||||||||||
Consumer, indirect | 494 | 516 | 483 | 571 | 674 | ||||||||||
Consumer, other | 106 | 129 | 40 | 185 | 177 | ||||||||||
Consumer | 600 | 645 | 523 | 756 | 851 | ||||||||||
Deposit account overdrafts | 246 | 172 | 349 | 229 | 210 | ||||||||||
Total gross charge-offs | $ | 1,219 | $ | 957 | $ | 1,100 | $ | 1,076 | $ | 1,264 | |||||
Recoveries: | |||||||||||||||
Commercial real estate, other | $ | 19 | $ | 14 | $ | 102 | $ | 10 | $ | 18 | |||||
Commercial and industrial | 1 | — | — | 56 | — | ||||||||||
Residential real estate | 19 | 20 | 89 | 85 | 123 | ||||||||||
Home equity lines of credit | 3 | 3 | 3 | 22 | 8 | ||||||||||
Consumer, indirect | 175 | 217 | 206 | 333 | 253 | ||||||||||
Consumer, other | 46 | 56 | 50 | 42 | 56 | ||||||||||
Consumer | 221 | 273 | 256 | 375 | 309 | ||||||||||
Deposit account overdrafts | 47 | 47 | 65 | 27 | 41 | ||||||||||
Total recoveries | $ | 310 | $ | 357 | $ | 515 | $ | 575 | $ | 499 | |||||
Net charge-offs (recoveries): | |||||||||||||||
Commercial real estate, other | $ | (19 | ) | $ | 11 | $ | (102 | ) | $ | 3 | $ | 10 | |||
Commercial and industrial | 47 | — | 117 | (56 | ) | — | |||||||||
Residential real estate | 226 | 78 | 19 | (22 | ) | 23 | |||||||||
Home equity lines of credit | 77 | 14 | — | (7 | ) | 21 | |||||||||
Consumer, indirect | 319 | 299 | 277 | 238 | 421 | ||||||||||
Consumer, other | 60 | 73 | (10 | ) | 143 | 121 | |||||||||
Consumer | 379 | 372 | 267 | 381 | 542 | ||||||||||
Deposit account overdrafts | 199 | 125 | 284 | 202 | 169 | ||||||||||
Total net charge-offs | $ | 909 | $ | 600 | $ | 585 | $ | 501 | $ | 765 |
Three Months Ended | ||||||||||
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||
Ratio of net charge-offs (recoveries) to average total loans (annualized): | ||||||||||
Commercial real estate | — | % | 0.01 | % | (0.01 | )% | — | % | — | % |
Commercial and industrial | 0.01 | % | — | % | 0.02 | % | (0.01 | )% | — | % |
Residential real estate | 0.04 | % | 0.01 | % | —% | — | % | — | % | |
Home equity lines of credit | 0.02 | % | 0.01 | % | —% | — | % | — | % | |
Consumer, indirect | 0.05 | % | 0.05 | % | 0.05 | % | 0.06 | % | 0.04 | % |
Consumer, other | 0.01 | % | 0.01 | % | — | % | — | % | 0.07 | % |
Consumer | 0.06 | % | 0.06 | % | 0.05 | % | 0.06 | % | 0.11 | % |
Deposit account overdrafts | 0.03 | % | 0.02 | % | 0.05 | % | 0.04 | % | 0.03 | % |
Total | 0.16 | % | 0.11 | % | 0.11 | % | 0.09 | % | 0.14 | % |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Loans 90+ days past due and accruing: | |||||||||||||||
Commercial real estate, other | $ | 1,272 | $ | 224 | $ | 456 | $ | 1,506 | $ | 1,636 | |||||
Commercial and industrial | 832 | 919 | 1,358 | 387 | 452 | ||||||||||
Residential real estate | 1,415 | 1,406 | 1,020 | 1,855 | 1,792 | ||||||||||
Home equity lines of credit | 15 | 34 | 111 | — | 199 | ||||||||||
Consumer, indirect | — | — | 61 | — | 82 | ||||||||||
Consumer, other | 8 | — | — | 23 | — | ||||||||||
Consumer | 8 | — | 61 | 23 | 82 | ||||||||||
Total loans 90+ days past due and accruing | $ | 3,542 | $ | 2,583 | $ | 3,006 | $ | 3,771 | $ | 4,161 | |||||
Nonaccrual loans: | |||||||||||||||
Commercial real estate, construction | $ | 776 | $ | 797 | $ | 819 | $ | 826 | $ | 855 | |||||
Commercial real estate, other | 7,321 | 7,711 | 8,893 | 10,792 | 10,020 | ||||||||||
Commercial real estate | 8,097 | 8,508 | 9,712 | 11,618 | 10,875 | ||||||||||
Commercial and industrial | 584 | 626 | 639 | 1,620 | 1,365 | ||||||||||
Residential real estate | 4,055 | 4,271 | 4,019 | 4,481 | 3,951 | ||||||||||
Home equity lines of credit | 589 | 450 | 438 | 554 | 458 | ||||||||||
Consumer, indirect | 79 | 138 | 153 | 9 | — | ||||||||||
Consumer, other | 31 | 23 | 1 | 81 | — | ||||||||||
Consumer | 110 | 161 | 154 | 90 | — | ||||||||||
Total nonaccrual loans | $ | 13,435 | $ | 14,016 | $ | 14,962 | $ | 18,363 | $ | 16,649 |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Nonaccrual troubled debt restructurings (TDRs): | |||||||||||||||
Commercial real estate, other | $ | 336 | $ | 335 | $ | 558 | $ | 751 | $ | 742 | |||||
Commercial and industrial | 694 | 821 | 910 | 482 | 384 | ||||||||||
Residential real estate | 1,592 | 1,543 | 1,699 | 1,614 | 1,484 | ||||||||||
Home equity lines of credit | 85 | 101 | 102 | 60 | 47 | ||||||||||
Consumer, indirect | 75 | 102 | 58 | 6 | 30 | ||||||||||
Consumer, other | 2 | 3 | 4 | 49 | 10 | ||||||||||
Consumer | 77 | 105 | 62 | 55 | 40 | ||||||||||
Total nonaccrual TDRs | 2,784 | 2,905 | 3,331 | 2,962 | 2,697 | ||||||||||
Total nonperforming loans (NPLs) | $ | 19,761 | $ | 19,504 | $ | 21,299 | $ | 25,096 | $ | 23,507 | |||||
Other real estate owned (OREO): | |||||||||||||||
Commercial | $ | 167 | $ | 545 | $ | 545 | $ | 594 | $ | 594 | |||||
Residential | 109 | 107 | 132 | 67 | 125 | ||||||||||
Total OREO | 276 | 652 | 677 | 661 | 719 | ||||||||||
Total nonperforming assets (NPAs) | $ | 20,037 | $ | 20,156 | $ | 21,976 | $ | 25,757 | $ | 24,226 | |||||
Criticized loans (a)(c) | 96,671 | 111,480 | 101,284 | 99,182 | 99,294 | ||||||||||
Classified loans (b)(c) | 41,233 | 53,041 | 56,503 | 57,736 | 53,755 | ||||||||||
Asset Quality Ratios: | |||||||||||||||
NPLs as a percent of total loans | 0.85 | % | 0.85 | % | 0.95 | % | 1.13 | % | 1.08 | % | |||||
NPAs as a percent of total assets | 0.56 | % | 0.57 | % | 0.64 | % | 0.75 | % | 0.72 | % | |||||
NPAs as a percent of total loans and OREO | 0.86 | % | 0.88 | % | 0.98 | % | 1.16 | % | 1.11 | % | |||||
Allowance for loan losses as a percent of NPLs | 96.11 | % | 96.47 | % | 86.71 | % | 73.43 | % | 77.50 | % | |||||
Criticized loans as a percent of total loans (a) | 4.15 | % | 4.86 | % | 4.50 | % | 4.46 | % | 4.58 | % | |||||
Classified loans as a percent of total loans (b) | 1.77 | % | 2.31 | % | 2.51 | % | 2.59 | % | 2.48 | % |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Non-interest-bearing deposits (a) | $ | 724,846 | $ | 772,061 | $ | 785,047 | $ | 734,421 | $ | 745,468 | |||||
Interest-bearing deposits: | |||||||||||||||
Retail certificates of deposit (CDs) (b) | 343,122 | 352,758 | 353,918 | 360,464 | 390,568 | ||||||||||
Money market deposit accounts | 388,876 | 397,211 | 386,999 | 407,754 | 411,111 | ||||||||||
Governmental deposit accounts | 289,895 | 297,560 | 330,477 | 251,671 | 286,716 | ||||||||||
Savings accounts | 440,633 | 443,110 | 445,720 | 436,344 | 438,087 | ||||||||||
Interest-bearing demand accounts (a) | 384,261 | 303,501 | 292,187 | 278,975 | 270,490 | ||||||||||
Brokered certificates of deposit (b) | 93,049 | 110,943 | 107,817 | 40,093 | 33,017 | ||||||||||
Total interest-bearing deposits | 1,939,836 | 1,905,083 | 1,917,118 | 1,775,301 | 1,829,989 | ||||||||||
Total deposits | $ | 2,664,682 | $ | 2,677,144 | $ | 2,702,165 | $ | 2,509,722 | $ | 2,575,457 |
(a) | The sum of amounts presented are considered total demand deposits. |
(b) | Prior periods reclassified. |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Short-term borrowings: | |||||||||||||||
FHLB advances | $ | 116,597 | $ | 65,000 | $ | 32,000 | $ | 231,000 | $ | 90,000 | |||||
Retail repurchase agreements | 77,120 | 77,532 | 73,752 | 74,607 | 72,807 | ||||||||||
Total short-term borrowings | 193,717 | 142,532 | 105,752 | 305,607 | 162,807 | ||||||||||
Long-term borrowings: | |||||||||||||||
FHLB advances | 148,862 | 172,038 | 127,581 | 98,282 | 100,743 | ||||||||||
National market repurchase agreements | 40,000 | 40,000 | 40,000 | 40,000 | 40,000 | ||||||||||
Unamortized debt issuance costs | (33 | ) | (39 | ) | (45 | ) | (51 | ) | (57 | ) | |||||
Junior subordinated debt securities | 7,061 | 7,015 | 6,970 | 6,924 | 6,877 | ||||||||||
Total long-term borrowings | 195,890 | 219,014 | 174,506 | 145,155 | 147,563 | ||||||||||
Total borrowed funds | $ | 389,607 | $ | 361,546 | $ | 280,258 | $ | 450,762 | $ | 310,370 |
▪ | On January 27, 2017, Peoples entered into two $10.0 million forward starting interest rate swaps, which will become effective in 2018 and mature between 2025 and 2027, with interest rates ranging from 2.47% to 2.53%. |
▪ | During the fourth quarter of 2016, Peoples entered into two $5.0 million forward starting interest rate swaps, which become effective in 2018 and mature in 2022 and 2026, with interest rates of 1.56% and 1.83%. |
▪ | During the second quarter of 2016, Peoples executed the following transactions to take advantage of the low interest rates: |
• | Peoples restructured $20.0 million of FHLB borrowings that had a weighted-average rate of 2.97%, resulting in a $700,000 loss. Peoples replaced these borrowings with a long-term FHLB advance, which had an interest rate of 2.17% and matures in 2026. |
• | Peoples borrowed an additional $35.0 million of long-term FHLB amortizing advances, which had interest rates ranging from 1.08% to 1.40%, and mature between 2019 and 2031. |
• | Peoples entered into three $10.0 million forward starting interest rate swaps, which become effective in 2018 and mature between 2023 and 2025, with interest rates ranging from 1.49% to 1.56%. These swaps locked in funding rates for $40.0 million in FHLB advances that mature in 2018, which have interest rates ranging from 3.65% to 3.92% |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Capital Amounts: | |||||||||||||||
Common Equity Tier 1 | $ | 326,966 | $ | 318,849 | $ | 310,856 | $ | 306,506 | $ | 301,222 | |||||
Tier 1 | 334,027 | 325,865 | 317,826 | 313,430 | 308,099 | ||||||||||
Total (Tier 1 and Tier 2) | 355,951 | 348,309 | 340,147 | 334,957 | 328,948 | ||||||||||
Net risk-weighted assets | $ | 2,456,797 | $ | 2,419,335 | $ | 2,382,874 | $ | 2,373,359 | $ | 2,309,951 | |||||
Capital Ratios: | |||||||||||||||
Common Equity Tier 1 | 13.31 | % | 13.18 | % | 13.05 | % | 12.91 | % | 13.04 | % | |||||
Tier 1 | 13.60 | % | 13.47 | % | 13.34 | % | 13.21 | % | 13.34 | % | |||||
Total (Tier 1 and Tier 2) | 14.49 | % | 14.40 | % | 14.27 | % | 14.11 | % | 14.24 | % | |||||
Leverage ratio | 9.82 | % | 9.72 | % | 9.60 | % | 9.66 | % | 9.71 | % |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Tangible equity: | |||||||||||||||
Total stockholders' equity | $ | 457,386 | $ | 451,353 | $ | 443,009 | $ | 435,261 | $ | 440,637 | |||||
Less: goodwill and other intangible assets | 143,859 | 144,692 | 145,505 | 146,018 | 147,005 | ||||||||||
Tangible equity | $ | 313,527 | $ | 306,661 | $ | 297,504 | $ | 289,243 | $ | 293,632 | |||||
Tangible assets: | |||||||||||||||
Total assets | $ | 3,552,412 | $ | 3,525,126 | $ | 3,459,276 | $ | 3,432,348 | $ | 3,363,585 | |||||
Less: goodwill and other intangible assets | 143,859 | 144,692 | 145,505 | 146,018 | 147,005 | ||||||||||
Tangible assets | $ | 3,408,553 | $ | 3,380,434 | $ | 3,313,771 | $ | 3,286,330 | $ | 3,216,580 | |||||
Tangible book value per common share: | |||||||||||||||
Tangible equity | $ | 313,527 | $ | 306,661 | $ | 297,504 | $ | 289,243 | $ | 293,632 | |||||
Common shares outstanding | 18,281,194 | 18,279,036 | 18,270,508 | 18,200,067 | 18,195,986 | ||||||||||
Tangible book value per common share | $ | 17.15 | $ | 16.78 | $ | 16.28 | $ | 15.89 | $ | 16.14 | |||||
Tangible equity to tangible assets ratio: | |||||||||||||||
Tangible equity | $ | 313,527 | $ | 306,661 | $ | 297,504 | $ | 289,243 | $ | 293,632 | |||||
Tangible assets | $ | 3,408,553 | $ | 3,380,434 | $ | 3,313,771 | $ | 3,286,330 | $ | 3,216,580 | |||||
Tangible equity to tangible assets | 9.20 | % | 9.07 | % | 8.98 | % | 8.80 | % | 9.13 | % |
Increase in Interest Rate | Estimated Increase (Decrease) in Net Interest Income | Estimated Decrease in Economic Value of Equity | |||||||||||||||||||||||
(in Basis Points) | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||||||
300 | $ | 4,572 | 4.0 | % | $ | (1,100 | ) | (1.0 | )% | $ | (89,378 | ) | (13.1 | )% | $ | (88,004 | ) | (15.0 | )% | ||||||
200 | 3,805 | 3.3 | % | 83 | 0.1 | % | (60,496 | ) | (8.9 | )% | (57,925 | ) | (9.9 | )% | |||||||||||
100 | 2,496 | 2.2 | % | 603 | 0.6 | % | (29,942 | ) | (4.4 | )% | (27,441 | ) | (4.7 | )% |
(Dollars in thousands) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Home equity lines of credit | $ | 84,101 | $ | 86,086 | $ | 86,037 | $ | 85,024 | $ | 83,267 | |||||
Unadvanced construction loans | 103,732 | 92,669 | 116,168 | 119,075 | 100,484 | ||||||||||
Other loan commitments | 280,974 | 302,710 | 267,132 | 269,669 | 268,259 | ||||||||||
Loan commitments | $ | 468,807 | $ | 481,465 | $ | 469,337 | $ | 473,768 | $ | 452,010 | |||||
Standby letters of credit | $ | 21,788 | $ | 26,458 | $ | 25,797 | $ | 25,651 | $ | 27,072 |
(a) | information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be accumulated and communicated to Peoples’ management, including its President and Chief Executive Officer and its Executive Vice President, Chief Financial Officer and Treasurer, as appropriate to allow timely decisions regarding required disclosure; |
(b) | information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and |
(c) | Peoples’ disclosure controls and procedures were effective as of the end of the fiscal quarter covered by this Quarterly Report on Form 10-Q. |
Period | (a) Total Number of Common Shares Purchased | (b) Average Price Paid per Common Share | (c) Total Number of Common Shares Purchased as Part of Publicly Announced Plans or Programs (1) | (d) Maximum Number ( or Approximate Dollar Value) of Common Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||
July 1- 31, 2017 | — | $ | — | — | $ | 15,049,184 | ||||||
August 1-31, 2017 | — | — | — | 15,049,184 | ||||||||
September 1-30, 2017 (2)(3) | 2,380 | 31.23 | — | 15,049,184 | ||||||||
Total | 2,380 | $ | 31.23 | — | $ | 15,049,184 |
(1) | On November 3, 2015, Peoples announced that on that same date, Peoples' Board of Directors authorized a share repurchase program authorizing Peoples to purchase up to $20.0 million of its outstanding common shares. No common shares were purchased under this share repurchase program during the three months ended September 30, 2017. |
(2) | Information reported includes 1,324 common shares withheld in September, to pay income tax associated with restricted common shares which vested. |
(3) | Information reported includes 1,056 common shares purchased in open market transactions during September by Peoples Bank under the Rabbi Trust Agreement. The Rabbi Trust Agreement establishes a rabbi trust that holds assets to provide funds for the payment of the benefits under the Peoples Bancorp Inc. Third Amended and Restated Deferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries. |
Exhibit Number | Description | Exhibit Location | ||
3.1(a) | Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on May 3, 1993) | Incorporated herein by reference to Exhibit 3(a) to the Registration Statement on Form 8-B of Peoples Bancorp Inc. ("Peoples") filed July 20, 1993 (File No. 0-16772) | ||
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 22, 1994) | Filed herewith | |||
Exhibit Number | Description | Exhibit Location | ||
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 9, 1996) | Filed herewith | |||
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 23, 2003) | Incorporated herein by reference to Exhibit 3(a) to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2003 (File No. 0-16772) (“Peoples’ March 31, 2003 Form 10-Q”) | |||
Certificate of Amendment by Shareholders to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on January 22, 2009) | Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on January 23, 2009 (File No. 0-16772) | |||
Certificate of Amendment by Directors to Articles filed with the Secretary of State of the State of Ohio on January 28, 2009, evidencing adoption of amendments by the Board of Directors of Peoples Bancorp Inc. to Article FOURTH of Amended Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on February 2, 2009 (File No. 0-16772) | |||
Amended Articles of Incorporation of Peoples Bancorp Inc. (This document represents the Amended Articles of Incorporation of Peoples Bancorp Inc. in compiled form incorporating all amendments. The compiled document has not been filed with the Ohio Secretary of State.) | Incorporated herein by reference to Exhibit 3.1(g) to Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (File No. 0-16772) | |||
3.2(a) | Code of Regulations of Peoples Bancorp Inc. | Incorporated herein by reference to Exhibit 3(b) to Peoples’ Registration Statement on Form 8-B filed July 20, 1993 (File No. 0-16772) | ||
Certified Resolutions Regarding Adoption of Amendments to Sections 1.03, 1.04, 1.05, 1.06, 1.08, 1.10, 2.03(C), 2.07, 2.08, 2.10 and 6.02 of the Code of Regulations of Peoples Bancorp Inc. by shareholders on April 10, 2003 | Incorporated herein by reference to Exhibit 3(c) to Peoples’ March 31, 2003 Form 10-Q | |||
Certificate regarding adoption of amendments to Sections 3.01, 3.03, 3.04, 3.05, 3.06, 3.07, 3.08 and 3.11 of the Code of Regulations of Peoples Bancorp Inc. by shareholders on April 8, 2004 | Incorporated herein by reference to Exhibit 3(a) to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 0-16772) | |||
Certificate regarding adoption of amendments to Sections 2.06, 2.07, 3.01 and 3.04 of Peoples Bancorp Inc.’s Code of Regulations by the shareholders on April 13, 2006 | Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on April 14, 2006 (File No. 0-16772) | |||
Certificate regarding adoption of an amendment to Section 2.01 of Peoples Bancorp Inc.’s Code of Regulations by the shareholders on April 22, 2010 | Incorporated herein by reference to Exhibit 3.2(e) to Peoples’ Quarterly Report on Form 10-Q/A (Amendment No. 1) for the quarterly period ended June 30, 2010 (File No. 0-16772) ("Peoples' June 30, 2010 Form 10-Q/A") | |||
Code of Regulations of Peoples Bancorp Inc. (This document represents the Code of Regulations of Peoples Bancorp Inc. in compiled form incorporating all amendments.) | Incorporated herein by reference to Exhibit 3.2(f) to Peoples’ June 30, 2010 Form 10-Q/A | |||
Form of Peoples Bancorp Inc. Second Amended and Restated 2006 Equity Plan Performance Unit Award Agreement used and to be used to evidence grants of performance units to executive officers of Peoples Bancorp Inc. on and after July 26, 2017 | Incorporated herein by reference to Exhibit 10.1 to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 (File No. 0-16772) | |||
Rule 13a-14(a)/15d-14(a) Certifications [President and Chief Executive Officer] | Filed herewith | |||
Rule 13a-14(a)/15d-14(a) Certifications [Executive Vice President, Chief Financial Officer and Treasurer] | Filed herewith | |||
Section 1350 Certifications | Furnished herewith | |||
Exhibit Number | Description | Exhibit Location | ||
101.INS | XBRL Instance Document | Submitted electronically herewith # | ||
101.SCH | XBRL Taxonomy Extension Schema Document | Submitted electronically herewith # | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Submitted electronically herewith # | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Submitted electronically herewith # | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Submitted electronically herewith # | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Submitted electronically herewith # | ||
# Attached as Exhibit 101 to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 of Peoples Bancorp Inc. are the following documents formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited) at September 30, 2017 and December 31, 2016; (ii) Consolidated Statements of Income (unaudited) for the three and nine months ended September 30, 2017 and 2016; (iii) Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2017 and 2016; (iv) Consolidated Statement of Stockholders' Equity (unaudited) for the nine months ended September 30, 2017; (v) Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2017 and 2016; and (vi) Notes to the Unaudited Consolidated Financial Statements. |
PEOPLES BANCORP INC. | |||
Date: | October 26, 2017 | By: /s/ | CHARLES W. SULERZYSKI |
Charles W. Sulerzyski | |||
President and Chief Executive Officer | |||
Date: | October 26, 2017 | By: /s/ | JOHN C. ROGERS |
John C. Rogers | |||
Executive Vice President, | |||
Chief Financial Officer and Treasurer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017, of Peoples Bancorp Inc.; |
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 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; and |
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 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 control over financial reporting. |
Date: | October 26, 2017 | By:/s/ | CHARLES W. SULERZYSKI | |
Charles W. Sulerzyski | ||||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017, of Peoples Bancorp Inc.; |
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 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; and |
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 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 control over financial reporting. |
Date: | October 26, 2017 | By:/s/ | JOHN C. ROGERS | |
John C. Rogers | ||||
Executive Vice President, | ||||
Chief Financial Officer and Treasurer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of Peoples Bancorp and its subsidiaries. |
Date: | October 26, 2017 | By: /s/ | CHARLES W. SULERZYSKI | |
Charles W. Sulerzyski | ||||
President and Chief Executive Officer |
Date: | October 26, 2017 | By:/s/ | JOHN C. ROGERS | |
John C. Rogers | ||||
Executive Vice President, | ||||
Chief Financial Officer and Treasurer |