Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
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Accelerated filer | ||||
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Non-accelerated filer |
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Exhibits |
Item 1. |
Financial Statements (unaudited) |
At June 30, 2019 |
At December 31, 2018 |
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Assets: |
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Cash and due from banks |
$ | $ | ||||||
Cash at Federal Reserve and other banks |
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Cash and cash equivalents |
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Investment securities: |
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Marketable equity securities |
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Available for sale debt securities |
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Held to maturity debt securities |
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Restricted equity securities |
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Loans held for sale |
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Loans |
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Allowance for loan losses |
( |
) | ( |
) | ||||
Total loans, net |
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Premises and equipment, net |
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Cash value of life insurance |
||||||||
Accrued interest receivable |
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Goodwill |
||||||||
Other intangible assets, net |
||||||||
Operating leases, right-of-use |
— |
|||||||
Other assets |
||||||||
Total assets |
$ | $ | ||||||
Liabilities and Shareholders’ Equity: |
||||||||
Liabilities: |
||||||||
Deposits: |
||||||||
Noninterest-bearing demand |
$ | $ | ||||||
Interest-bearing |
||||||||
Total deposits |
||||||||
Accrued interest payable |
||||||||
Operating lease liability |
— |
|||||||
Other liabilities |
||||||||
Other borrowings |
||||||||
Junior subordinated debt |
||||||||
Total liabilities |
||||||||
Commitments and contingencies (Note 8) |
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Shareholders’ equity: |
||||||||
Preferred stock, December 31, 2018 |
||||||||
Common stock, at June 30, 2019 and December 31, 2018, respectively |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss, net of tax |
( |
) | ( |
) | ||||
Total shareholders’ equity |
||||||||
Total liabilities and shareholders’ equity |
$ | $ | ||||||
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Interest and dividend income: |
||||||||||||||||
Loans, including fees |
$ | |
$ | |
$ | |
$ | |
||||||||
Investments: |
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Taxable securities |
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Tax exempt securities |
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Dividends |
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Interest bearing cash at Federal Reserve and other banks |
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Total interest and dividend income |
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Interest expense: |
||||||||||||||||
Deposits |
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||||||||||||
Other borrowings |
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||||||||||||
Junior subordinated debt |
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||||||||||||
Total interest expense |
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Net interest income |
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Provision for (reversal of) loan losses |
|
( |
) | ( |
) | ( |
) | |||||||||
Net interest income after provision for (benefit from reversal of) loan losses |
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|
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|
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Noninterest income: |
||||||||||||||||
Service charges and fees |
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Gain on sale of loans |
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Asset management and commission income |
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Increase in cash value of life insurance |
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Other |
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Total noninterest income |
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Noninterest expense: |
||||||||||||||||
Salaries and related benefits |
|
|
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|
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Other |
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|
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Total noninterest expense |
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|
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|
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Income before provision for income taxes |
|
|
|
|
||||||||||||
Provision for income taxes |
|
|
|
|
||||||||||||
Net income |
$ | |
$ | |
$ | |
$ | |
||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ | |
$ | |
$ | |
$ | |
||||||||
Diluted |
$ | |
$ | |
$ | |
$ | |
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Net income |
$ | |
$ | |
$ | |
$ | |
||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||
Unrealized gains (losses) on available for sale securities arising during the period |
|
( |
) | |
( |
) | ||||||||||
Change in minimum pension liability |
— |
|
— |
|
||||||||||||
Other comprehensive income (loss) |
|
( |
) | |
( |
) | ||||||||||
Comprehensive income |
$ | |
$ | |
$ | |
$ | |
Shares of Common Stock |
Common Stock |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||
Balance at March 31, 2019 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Net income |
||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||
Stock option vesting |
||||||||||||||||||||
Stock options exercised |
||||||||||||||||||||
RSU vesting |
||||||||||||||||||||
PSU vesting |
||||||||||||||||||||
RSUs released |
— |
|||||||||||||||||||
PSUs released |
— |
|||||||||||||||||||
Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Dividends paid ($ |
( |
) | ( |
) | ||||||||||||||||
Three months ending June 30, 2019 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Balance at January 1, 2019 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Net income |
||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||
Stock option vesting |
||||||||||||||||||||
Stock options exercised |
||||||||||||||||||||
RSU vesting |
||||||||||||||||||||
PSU vesting |
||||||||||||||||||||
RSUs released |
— |
|||||||||||||||||||
PSUs released |
— |
|||||||||||||||||||
Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Dividends paid ($ |
( |
) | ( |
) | ||||||||||||||||
Six months ending June 30, 2019 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Shares of Common Stock |
Common Stock |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total |
||||||||||||||||
Balance at March 31, 2018 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Net income |
||||||||||||||||||||
Adoption ASU 2016-01 |
||||||||||||||||||||
Adoption ASU 2018-02 |
||||||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||
Stock option vesting |
||||||||||||||||||||
Stock options exercised |
||||||||||||||||||||
RSU vesting |
||||||||||||||||||||
PSU vesting |
||||||||||||||||||||
RSUs released |
— |
|||||||||||||||||||
PSUs released |
— |
|||||||||||||||||||
Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Dividends paid ($ |
( |
) | ( |
) | ||||||||||||||||
Three months ending June 30, 2018 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Balance at January 1, 2018 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Net income |
||||||||||||||||||||
Adoption ASU 2016-01 |
( |
) | — |
|||||||||||||||||
Adoption ASU 2018-02 |
( |
) |
— |
|||||||||||||||||
Other comprehensive loss |
( |
) | ( |
) | ||||||||||||||||
Stock option vesting |
||||||||||||||||||||
Stock options exercised |
||||||||||||||||||||
RSU vesting |
||||||||||||||||||||
PSU vesting |
||||||||||||||||||||
RSUs released |
— |
|||||||||||||||||||
PSUs released |
— |
|||||||||||||||||||
Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Dividends paid ($ |
( |
) | ( |
) | ||||||||||||||||
Six months ending June 30, 2018 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
For the six months ended June 30, |
||||||||
2019 |
2018 |
|||||||
Operating activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation of premises and equipment, and amortization |
||||||||
Amortization of intangible assets |
||||||||
Reversal of provision for loan losses |
( |
) | ( |
) | ||||
Amortization of investment securities premium, net |
||||||||
Originations of loans for resale |
( |
) | ( |
) | ||||
Proceeds from sale of loans originated for resale |
||||||||
Gain on sale of loans |
( |
) | ( |
) | ||||
Change in market value of mortgage servicing rights |
( |
) | ||||||
Provision for losses on foreclosed assets |
||||||||
Gain on transfer of loans to foreclosed assets |
( |
) | ||||||
Gain on sale of foreclosed assets |
( |
) | ( |
) | ||||
Loss on disposal of fixed assets |
||||||||
Increase in cash value of life insurance |
( |
) | ( |
) | ||||
Gain on life insurance death benefit |
( |
) | ||||||
(Gain) loss on marketable equity securities |
( |
) | ||||||
Equity compensation vesting expense |
||||||||
Change in: |
||||||||
Interest receivable |
( |
) | ( |
) | ||||
Interest payable |
||||||||
Other assets and liabilities, net |
( |
) | ( |
) | ||||
Net cash from operating activities |
||||||||
Investing activities: |
||||||||
Proceeds from maturities of securities available for sale |
||||||||
Proceeds from maturities of securities held to maturity |
||||||||
Purchases of securities available for sale |
( |
) | ( |
) | ||||
Loan origination and principal collections, net |
( |
) | ( |
) | ||||
Proceeds from sale of other real estate owned |
||||||||
Proceeds from sale of premises and equipment |
||||||||
Purchases of premises and equipment |
( |
) | ( |
) | ||||
Net cash from investing activities |
( |
) | ( |
) | ||||
Financing activities: |
||||||||
Net change in deposits |
( |
) | ||||||
Net change in other borrowings |
( |
) | ||||||
Repurchase of common stock, net |
( |
) | ||||||
Dividends paid |
( |
) | ( |
) | ||||
Net cash used by financing activities |
( |
) | ||||||
Net change in cash and cash equivalents |
( |
) | ( |
) | ||||
Cash and cash equivalents and beginning of year |
||||||||
Cash and cash equivalents at end of year |
$ | $ | ||||||
Supplemental disclosure of noncash activities: |
||||||||
Unrealized gain (loss) on securities available for sale |
$ | $ | ( |
) | ||||
Loans transferred to foreclosed assets |
||||||||
Market value of shares tendered in-lieu of cash to pay for exercise of options and/or related taxes |
||||||||
Obligations incurred in conjunction with leased assets |
||||||||
Supplemental disclosure of cash flow activity: |
||||||||
Cash paid for interest expense |
||||||||
Cash paid for income taxes |
FNB Bancorp |
||||
July 6, 2018 |
||||
Fair value of consideration transferred: |
||||
Fair value of shares issued |
$ | |
||
Cash consideration |
|
|||
Total fair value of consideration transferred |
|
|||
Assets acquired: |
||||
Cash and cash equivalents |
|
|||
Securities available for sale |
|
|||
Restricted equity securities |
|
|||
Loans |
|
|||
Premises and equipment |
|
|||
Cash value of life insurance |
|
|||
Core deposit intangible |
|
|||
Other assets |
|
|||
Total assets acquired |
|
|||
Liabilities assumed: |
||||
Deposits |
|
|||
Other liabilities |
|
|||
Short-term borrowings - Federal Home Loan Bank |
|
|||
Total liabilities assumed |
|
|||
Total net assets acquired |
|
|||
Goodwill recognized |
$ | 156,661 |
FNB Bancorp |
||||
July 6, 2018 |
||||
Value of stock consideration paid to FNB Bancorp Shareholders |
$ | |
||
Cash consideration |
|
|||
Less: |
||||
Cost basis net assets acquired |
|
|||
Fair value adjustments: |
||||
Investments |
( |
) | ||
Loans |
( |
) | ||
Premises and equipment |
|
|||
Core deposit intangible |
|
|||
Deferred income taxes |
( |
) | ||
Other |
|
|||
Goodwill |
$ | |
June 30, 2019 |
||||||||||||||||
Gross |
Gross |
Estimated |
||||||||||||||
Amortized |
Unrealized |
Unrealized |
Fair |
|||||||||||||
Cost |
Gains |
Losses |
Value |
|||||||||||||
(in thousands) |
||||||||||||||||
Debt Securities Available for Sale |
||||||||||||||||
Obligations of U.S. government agencies |
$ | $ | $ | ( |
) | $ | ||||||||||
Obligations of states and political subdivisions |
( |
) | ||||||||||||||
Corporate bonds |
— |
|||||||||||||||
Asset backed securities |
( |
) | ||||||||||||||
Total debt securities available for sale |
$ | $ | $ | ( |
) | $ | ||||||||||
Debt Securities Held to Maturity |
||||||||||||||||
Obligations of U.S. government agencies |
$ | $ | $ | ( |
) | $ | ||||||||||
Obligations of states and political subdivisions |
— |
|||||||||||||||
Total debt securities held to maturity |
$ | $ | $ | ( |
) | $ | ||||||||||
December 31, 2018 |
||||||||||||||||
Gross |
Gross |
Estimated |
||||||||||||||
Amortized |
Unrealized |
Unrealized |
Fair |
|||||||||||||
Cost |
Gains |
Losses |
Value |
|||||||||||||
(in thousands) |
||||||||||||||||
Debt Securities Available for Sale |
||||||||||||||||
Obligations of U.S. government agencies |
$ | $ | $ | ( |
) | $ | ||||||||||
Obligations of states and political subdivisions |
( |
) | ||||||||||||||
Corporate bonds |
— |
|||||||||||||||
Asset backed securities |
( |
) | ||||||||||||||
Total debt securities available for sale |
$ | $ | $ | ( |
) | $ | ||||||||||
Debt Securities Held to Maturity |
||||||||||||||||
Obligations of U.S. government agencies |
$ | $ | $ | ( |
) | $ | ||||||||||
Obligations of states and political subdivisions |
( |
) | ||||||||||||||
Total debt securities held to maturity |
$ | $ | $ | ( |
) | $ | ||||||||||
Debt Securities |
Available for Sale |
Held to Maturity |
||||||||||||||
(In thousands) |
Amortized |
Estimated |
Amortized |
Estimated |
||||||||||||
Cost |
Fair Value |
Cost |
Fair Value |
|||||||||||||
Due in one year |
$ | $ | $ | — |
$ | — |
||||||||||
Due after one year through five years |
||||||||||||||||
Due after five years through ten years |
||||||||||||||||
Due after ten years |
||||||||||||||||
Totals |
$ | $ | $ | $ | ||||||||||||
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
Value |
Loss |
Value |
Loss |
Value |
Loss |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
June 30, 2019 |
||||||||||||||||||||||||
Debt Securities Available for Sale |
||||||||||||||||||||||||
Obligations of U.S. government agencies |
$ | — |
$ | — |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
Obligations of states and political subdivisions |
( |
) | — |
— |
( |
) | ||||||||||||||||||
Corporate Bonds |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Asset backed securities |
( |
) | — |
— |
( |
) | ||||||||||||||||||
Total debt securities available for sale |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
Debt Securities Held to Maturity |
||||||||||||||||||||||||
Obligations of U.S. government agencies |
$ | — |
$ | — |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
Obligations of states and political subdivisions |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Total debt securities held to maturity |
$ | — |
$ | — |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
Less than 12 months |
12 months or more |
Total |
||||||||||||||||||||||
Fair |
Unrealized |
Fair |
Unrealized |
Fair |
Unrealized |
|||||||||||||||||||
Value |
Loss |
Value |
Loss |
Value |
Loss |
|||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
December 31, 2018 |
||||||||||||||||||||||||
Debt Securities Available for Sale |
||||||||||||||||||||||||
Obligations of U.S. government agencies |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
Obligations of states and political subdivisions |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Asset backed securities |
( |
) | — |
— |
( |
) | ||||||||||||||||||
Total debt securities available for sale |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
Debt Securities Held to Maturity |
||||||||||||||||||||||||
Obligations of U.S. government agencies |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
Obligations of states and political subdivisions |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Total debt securities held to maturity |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) |
June 30, 2019 |
||||||||||||||||
Originated |
PNCI |
PCI |
Total |
|||||||||||||
Mortgage loans on real estate: |
||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
||||||||
Commercial |
|
|
|
|
||||||||||||
Total mortgage loan on real estate |
|
|
|
|
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines of credit |
|
|
|
|
||||||||||||
Home equity loans |
|
|
|
|
||||||||||||
Other |
|
|
|
|
||||||||||||
Total consumer loans |
|
|
|
|
||||||||||||
Commercial |
|
|
|
|
||||||||||||
Construction: |
||||||||||||||||
Residential |
|
|
— |
|
||||||||||||
Commercial |
|
|
— |
|
||||||||||||
Total construction |
|
|
— |
|
||||||||||||
Total loans, net of deferred loan fees and discounts |
$ | |
$ | |
$ | |
$ | |
||||||||
Total principal balance of loans owed, net of charge-offs |
$ | |
$ | |
$ | |
$ | |
||||||||
Unamortized net deferred loan fees |
( |
) | — |
— |
( |
) | ||||||||||
Discounts to principal balance of loans owed, net of charge-offs |
— |
( |
) | ( |
) | ( |
) | |||||||||
Total loans, net of unamortized deferred loan fees and discounts |
$ | 3,184,888 |
$ | 907,304 |
$ | 11,495 |
$ | 4,103,687 |
||||||||
Allowance for loan losses |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( 32,868 |
) | ||||
December 31, 2018 |
||||||||||||||||
Originated |
PNCI |
PCI |
Total |
|||||||||||||
Mortgage loans on real estate: |
||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
||||||||
Commercial |
|
|
|
|
||||||||||||
Total mortgage loan on real estate |
|
|
|
|
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines of credit |
|
|
|
|
||||||||||||
Home equity loans |
|
|
|
|
||||||||||||
Other |
|
|
|
|
||||||||||||
Total consumer loans |
|
|
|
|
||||||||||||
Commercial |
|
|
|
|
||||||||||||
Construction: |
||||||||||||||||
Residential |
|
|
— |
|
||||||||||||
Commercial |
|
|
— |
|
||||||||||||
Total construction |
|
|
— |
|
||||||||||||
Total loans, net of deferred loan fees and discounts |
$ | 2,981,456 |
$ | 1,026,335 |
$ | 14,223 |
$ | 4,022,014 |
||||||||
Total principal balance of loans owed, net of charge-offs |
$ | |
$ | |
$ | |
$ | |
||||||||
Unamortized net deferred loan fees |
( |
) | — |
— |
( |
) | ||||||||||
Discounts to principal balance of loans owed, net of charge-offs |
— |
( |
) | ( |
) | ( |
) | |||||||||
Total loans, net of unamortized deferred loan fees and discounts |
$ | |
$ | |
$ | |
$ | |
||||||||
Allowance for loan losses |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Change in accretable yield: |
||||||||||||||||
Balance at beginning of period |
$ | |
$ | |
$ | |
$ | |
||||||||
Accretion to interest income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Reclassification (to) from nonaccretable difference |
( |
) | |
( |
) | |
||||||||||
Balance at end of period |
$ | |
$ | |
$ | |
$ | |
||||||||
Allowance for Loan Losses – Three Months Ended June 30, 2019 |
||||||||||||||||||||
(in thousands) |
Beginning Balance |
Charge-offs |
Recoveries |
Provision (benefit) |
Ending Balance |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
|||||||||
Commercial |
|
— |
|
( |
) | |
||||||||||||||
Total mortgage loans on real estate |
|
( |
) | |
( |
) | |
|||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
— |
|
( |
) | |
||||||||||||||
Home equity loans |
|
— |
|
( |
) | |
||||||||||||||
Other |
|
( |
) | |
|
|
||||||||||||||
Total consumer loans |
|
( |
) | |
( |
) | |
|||||||||||||
Commercial |
|
( |
) | |
|
|
||||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
— |
— |
|
|
|||||||||||||||
Commercial |
|
— |
— |
( |
) | |
||||||||||||||
Total construction |
|
— |
— |
|
|
|||||||||||||||
Total |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
|||||||||
Allowance for Loan Losses – Six Months Ended June 30, 2019 |
||||||||||||||||||||
(in thousands) |
Beginning Balance |
Charge-offs |
Recoveries |
Provision (benefit) |
Ending Balance |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
||||||||
Commercial |
|
— |
|
( |
) | |
||||||||||||||
Total mortgage loans on real estate |
|
( |
) | |
( |
) | |
|||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
— |
|
( |
) | |
||||||||||||||
Home equity loans |
|
— |
|
( |
) | |
||||||||||||||
Other |
|
( |
) | |
|
|
||||||||||||||
Total consumer loans |
|
( |
) | |
( |
) | |
|||||||||||||
Commercial |
|
( |
) | |
|
|
||||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
— |
— |
|
|
|||||||||||||||
Commercial |
|
— |
— |
( |
) | |
||||||||||||||
Total construction |
|
— |
— |
|
|
|||||||||||||||
Total |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
Allowance for Loan Losses – As of June 30, 2019 |
||||||||||||||||
(in thousands) |
Loans pooled for evaluation |
Individually evaluated for impairment |
Loans acquired with deteriorated credit quality |
Total allowance for loan losses |
||||||||||||
Mortgage loans on real estate: |
||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | — |
$ | |
||||||||
Commercial |
|
|
— |
|
||||||||||||
Total mortgage loans on real estate |
|
|
— |
|
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines of credit |
|
|
|
|
||||||||||||
Home equity loans |
|
|
— |
|
||||||||||||
Other |
|
|
— |
|
||||||||||||
Total consumer loans |
|
|
|
|
||||||||||||
Commercial |
|
|
— |
|
||||||||||||
Construction: |
||||||||||||||||
Residential |
|
— |
— |
|
||||||||||||
Commercial |
|
— |
— |
|
||||||||||||
Total construction |
|
— |
— |
|
||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
Loans, Net of Unearned fees – As of June 30, 2019 |
||||||||||||||||
(in thousands) |
Loans pooled for evaluation |
Individually evaluated for impairment |
Loans acquired with deteriorated credit quality |
Total loans, net of unearned fees |
||||||||||||
Mortgage loans on real estate: |
||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
||||||||
Commercial |
|
|
|
|
||||||||||||
Total mortgage loans on real estate |
|
|
|
|
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines of credit |
|
|
|
|
||||||||||||
Home equity loans |
|
|
|
|
||||||||||||
Other |
|
|
|
|
||||||||||||
Total consumer loans |
|
|
|
|
||||||||||||
Commercial |
|
|
|
|
||||||||||||
Construction: |
||||||||||||||||
Residential |
|
— |
— |
|
||||||||||||
Commercial |
|
— |
— |
|
||||||||||||
Total construction |
|
— |
— |
|
||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
Allowance for Loan Losses – Year Ended December 31, 2018 |
||||||||||||||||||||
(in thousands) |
Beginning Balance |
Charge-offs |
Recoveries |
Provision (benefit) |
Ending Balance |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | ( |
) | $ | — |
$ | |
$ | |
|||||||||
Commercial |
|
( |
) | |
|
|
||||||||||||||
Total mortgage loans on real estate |
|
( |
) | |
|
|
||||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
( |
) | |
( |
) | |
|||||||||||||
Home equity loans |
|
( |
) | |
( |
) | |
|||||||||||||
Other |
|
( |
) | |
|
|
||||||||||||||
Total consumer loans |
|
( |
) | |
( |
) | |
|||||||||||||
Commercial |
|
( |
) | |
|
|
||||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
— |
— |
|
|
|||||||||||||||
Commercial |
|
— |
— |
|
|
|||||||||||||||
Total construction |
|
— |
— |
|
|
|||||||||||||||
Total |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
Allowance for Loan Losses – As of December 31, 2018 |
||||||||||||||||
(in thousands) |
Loans pooled for evaluation |
Individually evaluated for impairment |
Loans acquired with deteriorated credit quality |
Total allowance for loan losses |
||||||||||||
Mortgage loans on real estate: |
||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | — |
$ | |
||||||||
Commercial |
|
|
|
|
||||||||||||
Total mortgage loans on real estate |
|
|
|
|
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines of credit |
|
|
|
|
||||||||||||
Home equity loans |
|
|
— |
|
||||||||||||
Other |
|
|
— |
|
||||||||||||
Total consumer loans |
|
|
|
|
||||||||||||
Commercial |
|
|
— |
|
||||||||||||
Construction: |
||||||||||||||||
Residential |
|
— |
— |
|
||||||||||||
Commercial |
|
— |
— |
|
||||||||||||
Total construction |
|
— |
— |
|
||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
Loans, Net of Unearned fees – As of December 31, 2018 |
||||||||||||||||
(in thousands) |
Loans pooled for evaluation |
Individually evaluated for impairment |
Loans acquired with deteriorated credit quality |
Total loans, net of unearned fees |
||||||||||||
Mortgage loans on real estate: |
||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
||||||||
Commercial |
|
|
|
|
||||||||||||
Total mortgage loans on real estate |
|
|
|
|
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines of credit |
|
|
|
|
||||||||||||
Home equity loans |
|
|
|
|
||||||||||||
Other |
|
|
|
|
||||||||||||
Total consumer loans |
|
|
|
|
||||||||||||
Commercial |
|
|
|
|
||||||||||||
Construction: |
||||||||||||||||
Residential |
|
— |
— |
|
||||||||||||
Commercial |
|
— |
— |
|
||||||||||||
Total construction |
|
— |
— |
|
||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
||||||||
Allowance for Loan Losses – Three Months Ended June 30, 2018 |
||||||||||||||||||||
(in thousands) |
Beginning Balance |
Charge-offs |
Recoveries |
Provision (benefit) |
Ending Balance |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | ( |
) | $ | — |
$ | ( |
) | $ | |
||||||||
Commercial |
|
( |
) | |
|
|
||||||||||||||
Total mortgage loans on real estate |
|
( |
) | |
( |
) | |
|||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
( |
) | |
( |
) | |
|||||||||||||
Home equity loans |
|
— |
|
( |
) | |
||||||||||||||
Other |
|
( |
) | |
|
|
||||||||||||||
Total consumer loans |
|
( |
) | |
( |
) | |
|||||||||||||
Commercial |
|
( |
) | |
( |
) | |
|||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
— |
— |
|
|
|||||||||||||||
Commercial |
|
— |
— |
|
|
|||||||||||||||
Total construction |
|
— |
— |
|
|
|||||||||||||||
Total |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
||||||||
Allowance for Loan Losses – Six Months Ended June 30, 2018 |
||||||||||||||||||||
(in thousands) |
Beginning Balance |
Charge-offs |
Recoveries |
Provision (benefit) |
Ending Balance |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | ( |
) | $ | — |
$ | ( |
) | $ | |
||||||||
Commercial |
|
( |
) | |
|
|
||||||||||||||
Total mortgage loans on real estate |
|
( |
) | |
( |
) | |
|||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
( |
) | |
( |
) | |
|||||||||||||
Home equity loans |
|
— |
|
( |
) | |
||||||||||||||
Other |
|
( |
) | |
|
|
||||||||||||||
Total consumer loans |
|
( |
) | |
( |
) | |
|||||||||||||
Commercial |
|
( |
) | |
( |
) | |
|||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
— |
— |
|
|
|||||||||||||||
Commercial |
|
— |
— |
|
|
|||||||||||||||
Total construction |
|
— |
— |
|
|
|||||||||||||||
Total |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | $ | |
||||||||
Allowance for Loan Losses – As of June 30, 2018 |
||||||||||||||||
(in thousands) |
Loans pooled for evaluation |
Individually evaluated for impairment |
Loans acquired with deteriorated credit quality |
Total allowance for loan losses |
||||||||||||
Mortgage loans on real estate: |
||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
||||||||
Commercial |
|
|
|
|
||||||||||||
Total mortgage loans on real estate |
|
|
|
|
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines of credit |
|
|
|
|
||||||||||||
Home equity loans |
|
|
— |
|
||||||||||||
Other |
|
|
— |
|
||||||||||||
Total consumer loans |
|
|
|
|
||||||||||||
Commercial |
|
|
|
|
||||||||||||
Construction: |
||||||||||||||||
Residential |
|
— |
— |
|
||||||||||||
Commercial |
|
— |
— |
|
||||||||||||
Total construction |
|
— |
— |
|
||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
||||||||
Loans, Net of Unearned fees – As of June 30, 2018 |
||||||||||||||||
(in thousands) |
Loans pooled for evaluation |
Individually evaluated for impairment |
Loans acquired with deteriorated credit quality |
Total loans, net of unearned fees |
||||||||||||
Mortgage loans on real estate: |
||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
||||||||
Commercial |
|
|
|
|
||||||||||||
Total mortgage loans on real estate |
|
|
|
|
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines of credit |
|
|
|
|
||||||||||||
Home equity loans |
|
|
|
|
||||||||||||
Other |
|
|
|
|
||||||||||||
Total consumer loans |
|
|
|
|
||||||||||||
Commercial |
|
|
|
|
||||||||||||
Construction: |
||||||||||||||||
Residential |
|
— |
— |
|
||||||||||||
Commercial |
|
— |
— |
|
||||||||||||
Total construction |
|
|
— |
|
||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
||||||||
• | Pass |
• | Special Mention |
• | Substandard |
• | Doubtful |
• | Loss |
Credit Quality Indicators Originated Loans – As of June 30, 2019 |
||||||||||||||||||||
(in thousands) |
Pass |
Special Mention |
Substandard |
Doubtful / Loss |
Total Originated Loans |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | — |
$ | |
||||||||||
Commercial |
|
|
|
— |
|
|||||||||||||||
Total mortgage loans on real estate |
|
|
|
— |
|
|||||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
|
|
— |
|
|||||||||||||||
Home equity loans |
|
|
|
— |
|
|||||||||||||||
Other |
|
|
|
— |
|
|||||||||||||||
Total consumer loans |
|
|
|
— |
|
|||||||||||||||
Commercial |
|
|
|
|
|
|||||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
— |
|
— |
|
|||||||||||||||
Commercial |
|
|
— |
— |
|
|||||||||||||||
Total construction |
|
|
|
— |
|
|||||||||||||||
Total loans |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
Credit Quality Indicators PNCI Loans – As of June 30, 2019 |
||||||||||||||||||||
(in thousands) |
Pass |
Special Mention |
Substandard |
Doubtful / Loss |
Total PNCI Loans |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | — |
$ | |
||||||||||
Commercial |
|
|
|
— |
|
|||||||||||||||
Total mortgage loans on real estate |
|
|
|
— |
|
|||||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
|
|
— |
|
|||||||||||||||
Home equity loans |
|
|
|
— |
|
|||||||||||||||
Other |
|
|
|
— |
|
|||||||||||||||
Total consumer loans |
|
|
|
— |
|
|||||||||||||||
Commercial |
|
|
|
— |
|
|||||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
— |
— |
— |
|
|||||||||||||||
Commercial |
|
— |
|
— |
|
|||||||||||||||
Total construction |
|
— |
|
— |
|
|||||||||||||||
Total loans |
$ | |
$ | |
$ | |
$ | — |
$ | |
||||||||||
Credit Quality Indicators Originated Loans – As of December 31, 2018 |
||||||||||||||||||||
(in thousands) |
Pass |
Special Mention |
Substandard |
Doubtful / Loss |
Total Originated Loans |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | — |
$ | |
||||||||||
Commercial |
|
|
|
— |
|
|||||||||||||||
Total mortgage loans on real estate |
|
|
|
— |
|
|||||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
|
|
— |
|
|||||||||||||||
Home equity loans |
|
|
|
— |
|
|||||||||||||||
Other |
|
|
|
— |
|
|||||||||||||||
Total consumer loans |
|
|
|
— |
|
|||||||||||||||
Commercial |
|
|
|
— |
|
|||||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
|
|
— |
|
|||||||||||||||
Commercial |
|
|
— |
— |
|
|||||||||||||||
Total construction |
|
|
|
— |
|
|||||||||||||||
Total loans |
$ | |
$ | |
$ | |
$ | — |
$ | |
||||||||||
Credit Quality Indicators PNCI Loans – As of December 31, 2018 |
||||||||||||||||||||
(in thousands) |
Pass |
Special Mention |
Substandard |
Doubtful / Loss |
Total PNCI Loans |
|||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | — |
$ | |
||||||||||
Commercial |
|
|
|
— |
|
|||||||||||||||
Total mortgage loans on real estate |
|
|
|
— |
|
|||||||||||||||
Consumer: |
||||||||||||||||||||
Home equity lines of credit |
|
|
|
— |
|
|||||||||||||||
Home equity loans |
|
|
|
— |
|
|||||||||||||||
Other |
|
|
|
— |
|
|||||||||||||||
Total consumer loans |
|
|
|
— |
|
|||||||||||||||
Commercial |
|
|
|
— |
|
|||||||||||||||
Construction: |
||||||||||||||||||||
Residential |
|
— |
— |
— |
|
|||||||||||||||
Commercial |
|
— |
— |
— |
|
|||||||||||||||
Total construction |
|
— |
— |
— |
|
|||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | — |
$ | |
||||||||||
Analysis of Originated Past Due Loans - As of June 30, 2019 |
||||||||||||||||||||||||||||
(in thousands) |
30-59 days |
60-89 days |
> 90 days |
Total Past Due Loans |
Current |
Total |
> 90 Days and Still Accruing |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | — |
||||||||||||||
Commercial |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Total mortgage loans on real estate |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Home equity loans |
|
|
|
|
|
|
||||||||||||||||||||||
Other |
|
|
|
|
|
|
|
|||||||||||||||||||||
Total consumer loans |
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial |
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
|
|
— |
|||||||||||||||||||||
Total construction |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Total originated loans |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||
Analysis of PNCI Past Due Loans - As of June 30, 2019 |
||||||||||||||||||||||||||||
(in thousands) |
30-59 days |
60-89 days |
> 90 days |
Total Past Due Loans |
Current |
Total |
> 90 Days and Still Accruing |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | — |
$ | |
$ | |
$ | |
$ | — |
||||||||||||||
Commercial |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Total mortgage loans on real estate |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Home equity loans |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Other |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Total consumer loans |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Commercial |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
|
|
— |
|||||||||||||||||||||
Commercial |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Total construction |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Total PNCI loans |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | — |
||||||||||||||
Analysis of Originated Past Due Loans - As of December 31, 2018 |
||||||||||||||||||||||||||||
(in thousands) |
30-59 days |
60-89 days |
> 90 days |
Total Past Due Loans |
Current |
Total |
> 90 Days and Still Accruing |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | — |
||||||||||||||
Commercial |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Total mortgage loans on real estate |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Home equity loans |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Other |
|
|
— |
|
|
|
— |
|||||||||||||||||||||
Total consumer loans |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Commercial |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
|
|
— |
|||||||||||||||||||||
Total construction |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Total loans |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | — |
||||||||||||||
Analysis of PNCI Past Due Loans - As of December 31, 2018 |
||||||||||||||||||||||||||||
(in thousands) |
30-59 days |
60-89 days |
> 90 days |
Total Past Due Loans |
Current |
Total |
> 90 Days and Still Accruing |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | — |
||||||||||||||
Commercial |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Total mortgage loans on real estate |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Home equity loans |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Other |
|
— |
— |
|
|
|
— |
|||||||||||||||||||||
Total consumer loans |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Commercial |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
|
|
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
|
|
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
|
|
— |
|||||||||||||||||||||
Total loans |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | — |
||||||||||||||
Non Accrual Loans |
||||||||||||||||||||||||
As of June 30, 2019 |
As of December 31, 2018 |
|||||||||||||||||||||||
(in thousands) |
Originated |
PNCI |
Total |
Originated |
PNCI |
Total |
||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Commercial |
|
|
|
|
|
|
||||||||||||||||||
Total mortgage loans on real estate |
|
|
|
|
|
|
||||||||||||||||||
Consumer: |
||||||||||||||||||||||||
Home equity lines of credit |
|
|
|
|
|
|
||||||||||||||||||
Home equity loans |
|
|
|
|
|
|
||||||||||||||||||
Other |
|
|
|
|
|
|
||||||||||||||||||
Total consumer loans |
|
|
|
|
|
|
||||||||||||||||||
Commercial |
|
|
|
|
|
|
||||||||||||||||||
Construction: |
||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Total non accrual loans |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Impaired Originated Loans – As of, or for the Six Months Ended, June 30, 2019 |
||||||||||||||||||||||||||||
(in thousands) |
Unpaid principal balance |
Recorded investment with no related allowance |
Recorded investment with related allowance |
Total recorded investment |
Related Allowance |
Average recorded investment |
Interest income recognized |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||
Commercial |
|
|
|
|
|
|
|
|||||||||||||||||||||
Total mortgage loans on real estate |
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
|
|
— |
|
— |
|
|
|||||||||||||||||||||
Home equity loans |
|
|
|
|
|
|
|
|||||||||||||||||||||
Other |
|
|
|
|
|
|
|
|||||||||||||||||||||
Total consumer loans |
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial |
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||
Impaired PNCI Loans – As of, or for the Six Months Ended, June 30, 2019 |
||||||||||||||||||||||||||||
(in thousands) |
Unpaid principal balance |
Recorded investment with no related allowance |
Recorded investment with related allowance |
Total recorded investment |
Related Allowance |
Average recorded investment |
Interest income recognized |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | — |
$ | |
$ | — |
$ | |
$ | — |
||||||||||||||
Commercial |
|
|
— |
|
— |
|
|
|||||||||||||||||||||
Total mortgage loans on real estate |
|
|
— |
|
— |
|
|
|||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Home equity loans |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Other |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Total consumer loans |
|
|
|
|
|
|
— |
|||||||||||||||||||||
Commercial |
|
|
|
|
|
|
||||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||
Impaired Originated Loans – As of, or for the Twelve Months Ended, December 31, 2018 |
||||||||||||||||||||||||||||
(in thousands) |
Unpaid principal balance |
Recorded investment with no related allowance |
Recorded investment with related allowance |
Total recorded investment |
Related Allowance |
Average recorded investment |
Interest income recognized |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||
Commercial |
|
|
|
|
|
|
|
|||||||||||||||||||||
Total mortgage loans on real estate |
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
|
|
|
|
|
|
|
|||||||||||||||||||||
Home equity loans |
|
|
|
|
|
|
|
|||||||||||||||||||||
Other |
|
— |
|
|
|
|
|
|||||||||||||||||||||
Total consumer loans |
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial |
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
|
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
|
— |
|||||||||||||||||||||
Total |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||
Impaired PNCI Loans – As of, or for the Twelve Months Ended, December 31, 2018 |
||||||||||||||||||||||||||||
(in thousands) |
Unpaid principal balance |
Recorded investment with no related allowance |
Recorded investment with related allowance |
Total recorded investment |
Related Allowance |
Average recorded investment |
Interest income recognized |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | $ | $ | — |
$ | $ | — |
$ | $ | |||||||||||||||||||
Commercial |
— |
— |
||||||||||||||||||||||||||
Total mortgage loans on real estate |
— |
— |
||||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
||||||||||||||||||||||||||||
Home equity loans |
— |
|||||||||||||||||||||||||||
Other |
— |
|||||||||||||||||||||||||||
Total consumer loans |
||||||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Impaired Originated Loans – As of, or for the Six Months Ended, June 30, 2018 |
||||||||||||||||||||||||||||
(in thousands) |
Unpaid principal balance |
Recorded investment with no related allowance |
Recorded investment with related allowance |
Total recorded investment |
Related Allowance |
Average recorded investment |
Interest income recognized |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Commercial |
||||||||||||||||||||||||||||
Total mortgage loans on real estate |
||||||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
||||||||||||||||||||||||||||
Home equity loans |
||||||||||||||||||||||||||||
Other |
— |
— |
||||||||||||||||||||||||||
Total consumer loans |
||||||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Impaired PNCI Loans – As of, or for the Six Months Ended, June 30, 2018 |
||||||||||||||||||||||||||||
(in thousands) |
Unpaid principal balance |
Recorded investment with no related allowance |
Recorded investment with related allowance |
Total recorded investment |
Related Allowance |
Average recorded investment |
Interest income recognized |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | $ | $ | — |
$ | $ | — |
$ | $ | — |
||||||||||||||||||
Commercial |
— |
— |
||||||||||||||||||||||||||
Total mortgage loans on real estate |
— |
— |
||||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
||||||||||||||||||||||||||||
Home equity loans |
— |
|||||||||||||||||||||||||||
Other |
— |
— |
||||||||||||||||||||||||||
Total consumer loans |
||||||||||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
TDR Information for the Three Months Ended June 30, 2019 |
||||||||||||||||||||||||||||
(dollars in thousands) |
Number |
Pre-mod outstanding principal balance |
Post-mod outstanding principal balance |
Financial impact due to TDR taken as additional provision |
Number that defaulted during the period |
Recorded investment of TDRs that defaulted during the period |
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | $ | $ | — |
— |
$ | — |
$ | — |
|||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total mortgage loans on real estate |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
— |
— |
— |
— |
||||||||||||||||||||||||
Home equity loans |
— |
— |
— |
|||||||||||||||||||||||||
Other |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total consumer loans |
— |
— |
— |
|||||||||||||||||||||||||
Commercial |
— |
|||||||||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total |
$ | $ | $ | — |
$ | — |
$ | — |
||||||||||||||||||||
TDR Information for the Six Months Ended June 30, 2019 |
||||||||||||||||||||||||||||
(dollars in thousands) |
Number |
Pre-mod outstanding principal balance |
Post-mod outstanding principal balance |
Financial impact due to TDR taken as additional provision |
Number that defaulted during the period |
Recorded investment of TDRs that defaulted during the period |
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
$ | $ | $ | — |
— |
$ | — |
$ | — |
|||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total mortgage loans on real estate |
— |
— |
— |
— |
||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
— |
— |
— |
— |
||||||||||||||||||||||||
Home equity loans |
— |
— |
— |
|||||||||||||||||||||||||
Other |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total consumer loans |
— |
— |
— |
|||||||||||||||||||||||||
Commercial |
— |
|||||||||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | — |
||||||||||||||||||||||
TDR Information for the Three Months Ended June 30, 2018 |
||||||||||||||||||||||||||||
(dollars in thousands) |
Number |
Pre-mod outstanding principal balance |
Post-mod outstanding principal balance |
Financial impact due to TDR taken as additional provision |
Number that defaulted during the period |
Recorded investment of TDRs that defaulted during the period |
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
— |
$ | — |
$ | — |
$ | — |
— |
$ | — |
$ | — |
||||||||||||||||
Commercial |
— |
— |
— |
|||||||||||||||||||||||||
Total mortgage loans on real estate |
— |
— |
— |
|||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
— |
— |
— |
— |
||||||||||||||||||||||||
Home equity loans |
— |
— |
— |
— |
||||||||||||||||||||||||
Other |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total consumer loans |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
( |
) | ( |
) | ||||||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | ( |
) | |||||||||||||||||||||
TDR Information for the Six Months Ended June 30, 2018 |
||||||||||||||||||||||||||||
(dollars in thousands) |
Number |
Pre-mod outstanding principal balance |
Post-mod outstanding principal balance |
Financial impact due to TDR taken as additional provision |
Number that defaulted during the period |
Recorded investment of TDRs that defaulted during the period |
Financial impact due to the default of previous TDR taken as charge- offs or additional provisions |
|||||||||||||||||||||
Mortgage loans on real estate: |
||||||||||||||||||||||||||||
Residential 1-4 family |
— |
$ | — |
$ | — |
$ | — |
— |
$ | — |
$ | — |
||||||||||||||||
Commercial |
— |
|||||||||||||||||||||||||||
Total mortgage loans on real estate |
— |
|||||||||||||||||||||||||||
Consumer: |
||||||||||||||||||||||||||||
Home equity lines of credit |
— |
— |
— |
— |
||||||||||||||||||||||||
Home equity loans |
— |
— |
— |
— |
||||||||||||||||||||||||
Other |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total consumer loans |
— |
— |
— |
— |
||||||||||||||||||||||||
Commercial |
( |
) | ( |
) | ||||||||||||||||||||||||
Construction: |
||||||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total construction |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | ( |
) | |||||||||||||||||||||
(in thousands) |
Three months ended June 30, 2019 |
Six months ended June 30, 2019 |
||||||
Operating lease cost |
$ | $ | ||||||
Short-term lease cost |
||||||||
Variable lease cost |
( |
) | ( |
) | ||||
Sublease income |
( |
) | ( |
) | ||||
Total lease cost |
$ | $ | ||||||
(in thousands) |
Three months ended June 30, 2019 |
Six months ended June 30, 2019 |
||||||
Cash paid for amounts included in the measurement of lease liabilities: |
||||||||
Operating cash flows for operating leases |
$ | $ | ||||||
ROUA obtained in exchange for operating lease liabilities |
$ | $ | 32,162 |
Weighted-average remaining lease term |
||||
Weighted-average discount rate |
% |
(in thousands) |
||||
Periods ending December 31, |
||||
2019 |
$ | |||
2020 |
||||
2021 |
||||
2022 |
||||
2023 |
||||
Thereafter |
||||
Discount for present value of expected cash flows |
( |
) | ||
Lease liability at June 30, 2019 |
$ | |||
June 30, 2019 |
December 31, 2018 |
|||||||
Noninterest-bearing demand |
$ | $ | ||||||
Interest-bearing demand |
||||||||
Savings |
||||||||
Time certificates, $250,000 or more |
||||||||
Other time certificates |
||||||||
Total deposits |
$ | $ | ||||||
(in thousands) |
June 30, 2019 |
December 31, 2018 |
||||||
Financial instruments whose amounts represent risk: |
||||||||
Commitments to extend credit: |
||||||||
Commercial loans |
$ | $ | ||||||
Consumer loans |
||||||||
Real estate mortgage loans |
||||||||
Real estate construction loans |
||||||||
Standby letters of credit |
||||||||
Deposit account overdraft privilege |
Number of Shares |
Option Price per Share |
Weighted Average Exercise Price |
||||||||||
Outstanding at December 31, 2018 |
$ |
$ | ||||||||||
Options granted |
— |
— to — |
— |
|||||||||
Options exercised |
( |
) | $ |
|||||||||
Options forfeited |
— |
— to — |
— |
|||||||||
Outstanding at June 30, 2019 |
$ |
$ |
Currently Exercisable |
Currently Not Exercisable |
Total Outstanding |
||||||||||
Number of options |
||||||||||||
Weighted average exercise price |
$ | $ | $ | |||||||||
Intrinsic value (in thousands) |
$ | $ | $ | |||||||||
Weighted average remaining contractual term (yrs.) |
Service Condition Vesting RSUs |
Market Plus Service Condition Vesting RSUs |
|||||||
Outstanding at December 31, 2018 |
|
|
||||||
RSUs granted |
|
|
||||||
RSUs added through dividend and performance credits |
|
|
||||||
RSUs released |
( |
) | ( |
) | ||||
RSUs forfeited/expired |
— |
— |
||||||
Outstanding at June 30, 2019 |
|
|
||||||
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
(dollars in thousands) |
2019 |
2018 |
2019 |
2018 |
||||||||||||
ATM and interchange fees |
$ | |
$ | |
$ | |
$ | |
||||||||
Service charges on deposit accounts |
|
|
|
|
||||||||||||
Other service fees |
|
|
|
|
||||||||||||
Mortgage banking service fees |
|
|
|
|
||||||||||||
Change in value of mortgage servicing rights |
( |
) | ( |
) | ( |
) | |
|||||||||
Total service charges and fees |
|
|
|
|
||||||||||||
Increase in cash value of life insurance |
|
|
|
|
||||||||||||
Asset management and commission income |
|
|
|
|
||||||||||||
Gain on sale of loans |
|
|
|
|
||||||||||||
Lease brokerage income |
|
|
|
|
||||||||||||
Sale of customer checks |
|
|
|
|
||||||||||||
Gain on sale of foreclosed assets |
|
|
296 |
|
||||||||||||
Gain (loss) on marketable equity securities |
|
( |
) | |
( |
) | ||||||||||
Loss on disposal of fixed assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other |
|
|
|
|
||||||||||||
Total other noninterest income |
|
|
|
|
||||||||||||
Total noninterest income |
$ | |
$ | |
$ | |
$ | |
||||||||
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Base salaries, net of deferred loan origination costs |
$ | |
$ | |
$ | |
$ | |
||||||||
Incentive compensation |
|
|
|
|
||||||||||||
Benefits and other compensation costs |
|
|
|
|
||||||||||||
Total salaries and benefits expense |
|
|
|
|
||||||||||||
Occupancy |
|
|
|
|
||||||||||||
Data processing and software |
|
|
|
|
||||||||||||
Equipment |
|
|
|
|
||||||||||||
Intangible amortization |
|
|
|
|
||||||||||||
Advertising |
|
|
|
|
||||||||||||
ATM and POS network charges |
|
|
|
|
||||||||||||
Professional fees |
|
|
|
|
||||||||||||
Telecommunications |
|
|
|
|
||||||||||||
Regulatory assessments and insurance |
|
|
|
|
||||||||||||
Merger and acquisition expense |
— |
|
— |
|
||||||||||||
Postage |
|
|
|
|
||||||||||||
Operational losses |
|
|
|
|
||||||||||||
Courier service |
|
|
|
|
||||||||||||
Other miscellaneous expense |
|
|
|
|
||||||||||||
Total other noninterest expense |
|
|
|
|
||||||||||||
Total noninterest expense |
$ | |
$ | |
$ | |
$ | |
||||||||
Three months ended June 30, |
||||||||
(in thousands) |
2019 |
2018 |
||||||
Net income |
$ | |
$ | |
||||
Average number of common shares outstanding |
|
|
||||||
Effect of dilutive stock options and restricted stock |
|
|
||||||
Average number of common shares outstanding used to calculate diluted earnings per share |
|
|
||||||
Options excluded from diluted earnings per share because the effect of these options was antidilutive |
— |
— |
Six months ended June 30, |
||||||||
(in thousands) |
2019 |
2018 |
||||||
Net income |
$ | |
$ | |
||||
Average number of common shares outstanding |
|
|
||||||
Effect of dilutive stock options and restricted stock |
|
|
||||||
Average number of common shares outstanding used to calculate diluted earnings per share |
|
|
||||||
Options excluded from diluted earnings per share because the effect of these options was antidilutive |
— |
— |
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
(in thousands) |
2019 |
2018 |
2019 |
2018 |
||||||||||||
Unrealized holding gains (losses) on available for sale securities before reclassifications |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
Amounts reclassified out of accumulated other comprehensive income: |
||||||||||||||||
Adoption ASU 2016-01 |
— |
|
— |
|
||||||||||||
Adoption ASU 2018-02 |
— |
|
— |
( |
) | |||||||||||
Total amounts reclassified out of accumulated other comprehensive income |
— |
|
— |
( |
) | |||||||||||
Unrealized holding gains (losses) on available for sale securities after reclassifications |
|
( |
) | |
( |
) | ||||||||||
Tax effect |
( |
) | |
( |
) | |
||||||||||
Unrealized holding gains (losses) on available for sale securities, net of tax |
|
( |
) | |
( |
) | ||||||||||
Change in unfunded status of the supplemental retirement plans before reclassifications |
( |
) | |
( |
) | |
||||||||||
Amounts reclassified out of accumulated other comprehensive income: |
||||||||||||||||
Amortization of prior service cost |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Amortization of actuarial losses |
|
|
|
|
||||||||||||
Adoption ASU 2018-02 |
— |
|
— |
( |
) | |||||||||||
Total amounts reclassified out of accumulated other comprehensive income |
|
|
|
( |
) | |||||||||||
Change in unfunded status of the supplemental retirement plans after reclassifications |
— |
|
— |
|
||||||||||||
Tax effect |
— |
( |
) | — |
( |
) | ||||||||||
Change in unfunded status of the supplemental retirement plans, net of tax |
— |
|
— |
|
||||||||||||
Total other comprehensive income (loss) |
$ | |
$ | ( |
) | $ | |
$ | ( |
) | ||||||
June 30, |
December 31, |
|||||||
(in thousands) |
2019 |
2018 |
||||||
Net unrealized loss on available for sale securities |
$ | |
$ | ( |
) | |||
Tax effect |
( |
) | |
|||||
Unrealized holding loss on available for sale securities, net of tax |
|
( |
) | |||||
Unfunded status of the supplemental retirement plans |
( |
) | ( |
) | ||||
Tax effect |
|
|
||||||
Unfunded status of the supplemental retirement plans, net of tax |
( |
) | ( |
) | ||||
Joint beneficiary agreement liability |
|
|
||||||
Tax effect |
— |
— |
||||||
Joint beneficiary agreement liability, net of tax |
|
|
||||||
Accumulated other comprehensive loss |
$ | ( |
) | $ | ( |
) | ||
Fair value at June 30, 2019 |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Marketable equity securities |
$ | |
$ | |
$ | — |
$ | — |
||||||||
Debt securities available for sale: |
||||||||||||||||
Obligations of U.S. government corporations and agencies |
|
— |
|
— |
||||||||||||
Obligations of states and political subdivisions |
|
— |
|
— |
||||||||||||
Corporate bonds |
|
— |
|
— |
||||||||||||
Asset backed securities |
|
— |
|
— |
||||||||||||
Loans held for sale |
|
— |
|
— |
||||||||||||
Mortgage servicing rights |
|
— |
— |
|
||||||||||||
Total assets measured at fair value |
$ | |
$ | |
$ | |
$ | |
||||||||
Fair value at December 31, 2018 |
Total |
Level 1 |
Level 2 |
Level 3 |
||||||||||||
Marketable equity securities |
$ | |
$ | |
$ | — |
$ | — |
||||||||
Debt securities available for sale: |
||||||||||||||||
Obligations of U.S. government corporations and agencies |
|
— |
|
— |
||||||||||||
Obligations of states and political subdivisions |
|
— |
|
— |
||||||||||||
Corporate bonds |
|
— |
|
— |
||||||||||||
Asset backed securities |
|
— |
|
— |
||||||||||||
Loans held for sale |
|
— |
|
— |
||||||||||||
Mortgage servicing rights |
|
— |
— |
|
||||||||||||
Total assets measured at fair value |
$ | |
$ | |
$ | |
$ | |
||||||||
Transfers |
Change |
|||||||||||||||||||
Beginning |
into (out of) |
Included |
Ending |
|||||||||||||||||
Three months ended June 30, |
Balance |
Level 3 |
in Earnings |
Issuances |
Balance |
|||||||||||||||
2019: Mortgage servicing rights |
$ | |
— |
$ | ( |
) | $ | |
$ | |
||||||||||
2018: Mortgage servicing rights |
$ | |
— |
$ | ( |
) | $ | |
$ | |
Six months ended June 30, |
Beginning Balance |
Transfers into (out of) Level 3 |
Change Included in Earnings |
Issuances |
Ending Balance |
|||||||||||||||
2019: Mortgage servicing rights |
$ | |
— |
$ | ( |
) | $ | |
$ | |
||||||||||
2018: Mortgage servicing rights |
$ | |
— |
$ | |
$ | |
$ | |
Fair Value |
Valuation |
Unobservable |
Range, Weighted |
|||||||||||||
As of June 30, 2019: |
(in thousands) |
Technique |
Inputs |
Average |
||||||||||||
Mortgage Servicing Rights |
$ | |
Discounted cash flow |
Constant prepayment rate |
- |
% | ||||||||||
Discount rate |
|
% | ||||||||||||||
As of December 31, 2018: |
||||||||||||||||
Mortgage Servicing Rights |
$ | |
Discounted cash flow |
Constant prepayment rate |
|
% | ||||||||||
Discount rate |
|
% |
Total Gains |
||||||||||||||||||||
June 30, 2019 |
Total |
Level 1 |
Level 2 |
Level 3 |
(Losses) |
|||||||||||||||
Fair value: |
||||||||||||||||||||
Impaired Originated & PNCI loans |
$ | |
— |
— |
$ | |
$ | ( |
) | |||||||||||
Foreclosed assets |
|
— |
— |
|
( |
) | ||||||||||||||
Total assets measured at fair value |
$ | |
— |
— |
$ | |
$ | ( |
) | |||||||||||
Total Gains |
||||||||||||||||||||
December 31, 2018 |
Total |
Level 1 |
Level 2 |
Level 3 |
(Losses) |
|||||||||||||||
Fair value: |
||||||||||||||||||||
Impaired Originated & PNCI loans |
$ | |
— |
— |
$ | |
$ | ( |
) | |||||||||||
Foreclosed assets |
|
— |
— |
|
( |
) | ||||||||||||||
Total assets measured at fair value |
$ | |
— |
— |
$ | |
$ | ( |
) | |||||||||||
Total Gains |
||||||||||||||||||||
June 30, 2018 |
Total |
Level 1 |
Level 2 |
Level 3 |
(Losses) |
|||||||||||||||
Fair value: |
||||||||||||||||||||
Impaired Originated & PNCI loans |
$ | |
— |
— |
$ | |
$ | ( |
) | |||||||||||
Foreclosed assets |
|
— |
— |
|
( |
) | ||||||||||||||
Total assets measured at fair value |
$ | |
— |
— |
$ | |
$ | ( |
) | |||||||||||
June 30, 2019 |
Fair Value (in thousands) |
Valuation Technique |
Unobservable Inputs |
Range, Weighted Average |
||||||||||||
Impaired Originated & PNCI loans |
$ | |
Sales comparison approach Income approach |
Adjustment for differences between comparable sales Capitalization rate |
Not meaningful N/A |
|||||||||||
Foreclosed assets (Residential real estate) |
$ | |
Sales comparison approach |
Adjustment for differences between comparable sales |
Not meaningful |
December 31, 2018 |
Fair Value (in thousands) |
Valuation Technique |
Unobservable Inputs |
Range, Weighted Average |
||||||||||||
Impaired Originated & PNCI loans |
$ | |
Sales comparison approach Income approach |
Adjustment for differences between comparable sales Capitalization rate |
( - |
|||||||||||
Foreclosed assets (Residential real estate) |
$ | |
Sales comparison approach |
Adjustment for differences between comparable sales |
( ( |
|||||||||||
Foreclosed assets (Commercial real estate) |
$ | |
Sales comparison approach |
Adjustment for differences between comparable sales |
( |
June 30, 2019 |
December 31, 2018 |
|||||||||||||||
(in thouands) |
Carrying Amount |
Fair Value |
Carrying Amount |
Fair Value |
||||||||||||
Financial assets: |
||||||||||||||||
Level 1 inputs: |
||||||||||||||||
Cash and due from banks |
$ | |
$ | |
$ | |
$ | |
||||||||
Cash at Federal Reserve and other banks |
|
|
|
|
||||||||||||
Level 2 inputs: |
||||||||||||||||
Securities held to maturity |
|
|
|
|
||||||||||||
Restricted equity securities |
|
N/A |
|
N/A |
||||||||||||
Loans held for sale |
|
|
|
|
||||||||||||
Level 3 inputs: |
||||||||||||||||
Loans, net |
|
|
|
|
||||||||||||
Financial liabilities: |
||||||||||||||||
Level 2 inputs: |
||||||||||||||||
Deposits |
|
|
|
|
||||||||||||
Other borrowings |
|
|
|
|
||||||||||||
Level 3 inputs: |
||||||||||||||||
Junior subordinated debt |
|
|
|
|
||||||||||||
(in thouands) |
Contract Amount |
Fair Value |
Contract Amount |
Fair Value |
||||||||||||
Off-balance sheet: |
||||||||||||||||
Level 3 inputs: |
||||||||||||||||
Commitments |
$ | |
$ | |
$ | |
$ | |
||||||||
Standby letters of credit |
|
|
|
|
||||||||||||
Overdraft privilege commitments |
|
|
|
|
Actual |
Minimum Capital Required – Basel III Fully Phased In |
Required to be Considered Well Capitalized |
||||||||||||||||||||||
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
|||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||
As of June 30, 2019: |
||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): |
||||||||||||||||||||||||
Consolidated |
$ | |
|
% | $ | |
|
% | N/A |
N/A |
||||||||||||||
Tri Counties Bank |
$ | |
|
% | $ | |
|
% | $ | |
|
% | ||||||||||||
Tier 1 Capital (to Risk Weighted Assets): |
||||||||||||||||||||||||
Consolidated |
$ | |
|
% | $ | |
|
% | N/A |
N/A |
||||||||||||||
Tri Counties Bank |
$ | |
|
% | $ | |
|
% | $ | |
|
% | ||||||||||||
Common equity Tier 1 Capital (to Risk Weighted Assets): |
||||||||||||||||||||||||
Consolidated |
$ | |
|
% | $ | |
|
% | N/A |
N/A |
||||||||||||||
Tri Counties Bank |
$ | |
|
% | $ | |
|
% | $ | |
|
% | ||||||||||||
Tier 1 Capital (to Average Assets): |
||||||||||||||||||||||||
Consolidated |
$ | |
|
% | $ | |
|
% | N/A |
N/A |
||||||||||||||
Tri Counties Bank |
$ | |
|
% | $ | |
|
% | $ | |
|
% |
Actual |
Minimum Capital Required – Basel III Phase-in Schedule |
Minimum Capital Required – Basel III Fully Phased In |
Required to be Considered Well Capitalized |
|||||||||||||||||||||||||||||
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
|||||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||||||||||
As of December 31, 2018: |
||||||||||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): |
||||||||||||||||||||||||||||||||
Consolidated |
$ | |
|
% | $ | |
|
% | $ | |
|
% | N/A |
N/A |
||||||||||||||||||
Tri Counties Bank |
$ | |
|
% | $ | |
|
% | $ | |
|
% | $ | |
|
% | ||||||||||||||||
Tier 1 Capital (to Risk Weighted Assets): |
||||||||||||||||||||||||||||||||
Consolidated |
$ | |
|
% | $ | |
|
% | $ | |
|
% | N/A |
N/A |
||||||||||||||||||
Tri Counties Bank |
$ | |
|
% | $ | |
|
% | $ | |
|
% | $ | |
|
% | ||||||||||||||||
Common equity Tier 1 Capital (to Risk Weighted Assets): |
||||||||||||||||||||||||||||||||
Consolidated |
$ | |
|
% | $ | |
|
% | $ | |
|
% | N/A |
N/A |
||||||||||||||||||
Tri Counties Bank |
$ | |
|
% | $ | |
|
% | $ | |
|
% | $ | |
|
% | ||||||||||||||||
Tier 1 Capital (to Average Assets): |
||||||||||||||||||||||||||||||||
Consolidated |
$ | |
|
% | $ | |
|
% | $ | |
|
% | N/A |
N/A |
||||||||||||||||||
Tri Counties Bank |
$ | |
|
% | $ | |
|
% | $ | |
|
% | $ | |
|
% |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | For the three and six months ended June 30, 2019, the Company’s return on average assets was 1.44% and 1.43%, respectively, and the return on average equity was 10.65% and 10.71%, respectively. |
• | As of June 30, 2019, the Company reported total loans, total assets and total deposits of $4.10 billion, $6.40 billion and $5.34 billion, respectively. |
• | The loan to deposit ratio was 76.8% as of June 30, 2019 as compared to 74.3% at March 31, 2019 and 77.2% at June 30, 2018. |
• | Net interest margin grew 34 basis points to 4.48% on a tax equivalent basis as compared to 4.14% in the quarter ended June 30, 2018 and increased 2 basis points from the trailing quarter. |
• | Non-interest bearing deposits as a percentage of total deposits were 33.3% at June 30, 2019, as compared to 32.4% at March 31, 2019 and 33.6% at June 30, 2018. |
• | The average rate of interest paid on deposits, including noninterest-bearing deposits, remained low but increased slightly to 0.22% for the second quarter of 2019 as compared with 0.20% for the trailing quarter, and an increase of 10 basis points from the average rate paid during the same quarter of the prior year. |
• | Non-performing assets to total assets were 0.35% at June 30, 2019 as compared to 0.34% as of March 31, 2019 and 0.47% at December 31, 2018. |
• | The balance of nonperforming loans increased by $1.0 million, however recoveries on previously charged-off loans were $0.3 million and loans past due thirty days or more decreased by $2.18 million during the quarter. |
• | The efficiency ratio remained flat at 60.15% as compared to the trailing quarter, which had an efficiency ratio of 60.10%. |
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Net interest income |
$ | 64,315 |
$ | 45,869 |
$ | 128,185 |
$ | 90,855 |
||||||||
(Provision for) benefit from reversal of loan losses |
(537 |
) | 638 |
1,063 |
874 |
|||||||||||
Noninterest income |
13,578 |
12,174 |
25,442 |
24,464 |
||||||||||||
Noninterest expense |
(46,852 |
) | (37,870 |
) | (92,365 |
) | (76,032 |
) | ||||||||
Provision for income taxes |
(7,443 |
) | (5,782 |
) | (16,538 |
) | (11,222 |
) | ||||||||
Net income |
$ | 23,061 |
$ | 15,029 |
$ | 45,787 |
$ | 28,939 |
||||||||
Per Share Data: |
||||||||||||||||
Basic earnings per share |
$ | 0.76 |
$ | 0.65 |
$ | 1.50 |
$ | 1.26 |
||||||||
Diluted earnings per share |
$ | 0.75 |
$ | 0.65 |
$ | 1.49 |
$ | 1.24 |
||||||||
Dividends paid |
$ | 0.19 |
$ | 0.17 |
$ | 0.38 |
$ | 0.34 |
||||||||
Book value at period end |
$ | 28.71 |
$ | 22.27 |
||||||||||||
Average common shares outstanding |
30,458 |
22,983 |
30,441 |
22,970 |
||||||||||||
Average diluted common shares outstanding |
30,643 |
23,276 |
30,650 |
23,280 |
||||||||||||
Shares outstanding at period end |
30,503 |
23,004 |
||||||||||||||
At period end: |
||||||||||||||||
Loans, net |
4,070,819 |
3,116,789 |
||||||||||||||
Total investment securities |
1,566,720 |
1,251,776 |
||||||||||||||
Total assets |
6,395,172 |
4,863,153 |
||||||||||||||
Total deposits |
5,342,173 |
4,077,222 |
||||||||||||||
Other borrowings |
13,292 |
152,839 |
||||||||||||||
Shareholders’ equity |
875,886 |
512,344 |
||||||||||||||
Financial Ratios: |
||||||||||||||||
During the period (annualized): |
||||||||||||||||
Return on average assets |
1.44 |
% | 1.25 |
% | 1.43 |
% | 1.21 |
% | ||||||||
Return on average equity |
10.65 |
% | 11.78 |
% | 10.71 |
% | 11.39 |
% | ||||||||
Net interest margin 1 |
4.48 |
% | 4.14 |
% | 4.47 |
% | 4.14 |
% | ||||||||
Efficiency ratio |
60.1 |
% | 65.2 |
% | 60.1 |
% | 65.9 |
% | ||||||||
Average equity to average assets |
13.6 |
% | 10.6 |
% | 13.3 |
% | 10.6 |
% | ||||||||
At end of period: |
||||||||||||||||
Equity to assets |
13.70 |
% | 10.54 |
% | ||||||||||||
Total capital to risk-sdjusted assets |
14.93 |
% | 13.91 |
% |
1 |
Fully taxable equivalent (FTE) |
Three months ended |
Six months ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Net interest income (FTE) |
$ | 64,613 |
$ | 46,182 |
$ | 128,804 |
$ | 91,480 |
||||||||
(Provision for) Benefit from reversal of loan losses |
(537 |
) | 638 |
1,063 |
874 |
|||||||||||
Noninterest income |
13,578 |
12,174 |
25,442 |
24,464 |
||||||||||||
Noninterest expense |
(46,852 |
) | (37,870 |
) | (92,365 |
) | (76,032 |
) | ||||||||
Provision for income taxes (FTE) |
(7,741 |
) | (6,095 |
) | (17,157 |
) | (11,847 |
) | ||||||||
Net income |
$ | 23,061 |
$ | 15,029 |
$ | 45,787 |
$ | 28,939 |
||||||||
Three months ended |
Six months ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Interest income |
$ | 68,180 |
$ | 48,478 |
$ | 135,637 |
$ | 95,599 |
||||||||
Interest expense |
(3,865 |
) | (2,609 |
) | (7,452 |
) | (4,744 |
) | ||||||||
FTE adjustment |
298 |
313 |
619 |
625 |
||||||||||||
Net interest income (FTE) |
$ | 64,613 |
$ | 46,182 |
$ | 128,804 |
$ | 91,480 |
||||||||
Net interest margin (FTE) |
4.48 |
% | 4.14 |
% | 4.47 |
% | 4.14 |
% | ||||||||
Acquired loans discount accretion, net: |
||||||||||||||||
Amount (included in interest income) |
$ | 1,904 |
$ | 559 |
$ | 3,559 |
$ | 1,191 |
||||||||
Effect on average loan yield |
0.19 |
% | 0.07 |
% | 0.18 |
% | 0.08 |
% | ||||||||
Effect on net interest margin (FTE) |
0.13 |
% | 0.05 |
% | 0.12 |
% | 0.05 |
% |
For the three months ended |
||||||||||||||||||||||||
June 30, 2019 |
June 30, 2018 |
|||||||||||||||||||||||
Average Balance |
Interest Income/ Expense |
Rates Earned /Paid |
Average Balance |
Interest Income/ Expense |
Rates Earned /Paid |
|||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Loans |
$ | 4,044,044 |
$ | 55,492 |
5.49 |
% | $ | 3,104,126 |
$ | 39,304 |
5.06 |
% | ||||||||||||
Investment securities - taxable |
1,432,550 |
10,762 |
3.00 |
% | 1,122,534 |
7,736 |
2.76 |
% | ||||||||||||||||
Investment securities - nontaxable (1) |
140,562 |
1,358 |
3.86 |
% | 136,126 |
1,355 |
3.98 |
% | ||||||||||||||||
Total investments |
1,573,112 |
12,120 |
3.08 |
% | 1,258,660 |
9,091 |
2.89 |
% | ||||||||||||||||
Cash at Federal Reserve and other banks |
147,810 |
866 |
2.34 |
% | 94,874 |
396 |
1.67 |
% | ||||||||||||||||
Total interest-earning assets |
5,764,966 |
68,478 |
4.75 |
% | 4,457,660 |
48,791 |
4.38 |
% | ||||||||||||||||
Other assets |
620,923 |
356,863 |
||||||||||||||||||||||
Total assets |
$ | 6,385,889 |
$ | 4,814,523 |
||||||||||||||||||||
Liabilities and shareholders’ equity: |
||||||||||||||||||||||||
Interest-bearing demand deposits |
$ | 1,276,388 |
$ | 289 |
0.09 |
% | $ | 995,528 |
$ | 214 |
0.09 |
% | ||||||||||||
Savings deposits |
1,888,234 |
1,306 |
0.28 |
% | 1,393,121 |
427 |
0.12 |
% | ||||||||||||||||
Time deposits |
441,116 |
1,404 |
1.27 |
% | 313,556 |
593 |
0.76 |
% | ||||||||||||||||
Total interest-bearing deposits |
3,605,738 |
2,999 |
0.33 |
% | 2,702,205 |
1,234 |
0.18 |
% | ||||||||||||||||
Other borrowings |
17,963 |
37 |
0.82 |
% | 139,307 |
586 |
1.68 |
% | ||||||||||||||||
Junior subordinated debt |
57,222 |
829 |
5.79 |
% | 56,928 |
789 |
5.54 |
% | ||||||||||||||||
Total interest-bearing liabilities |
3,680,923 |
3,865 |
0.42 |
% | 2,898,440 |
2,609 |
0.36 |
% | ||||||||||||||||
Noninterest-bearing deposits |
1,765,141 |
1,339,905 |
||||||||||||||||||||||
Other liabilities |
73,541 |
65,745 |
||||||||||||||||||||||
Shareholders’ equity |
866,284 |
510,433 |
||||||||||||||||||||||
Total liabilities and shareholders’ equity |
$ | 6,385,889 |
$ | 4,814,523 |
||||||||||||||||||||
Net interest spread (2) |
4.33 |
% | 4.02 |
% | ||||||||||||||||||||
Net interest income and interest margin (3) |
$ | 64,613 |
4.48 |
% | $ | 46,182 |
4.14 |
% | ||||||||||||||||
(1) |
Fully taxable equivalent (FTE) |
(2) |
Net interest spread represents the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(3) |
Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets. |
As of June 30, |
Acquired |
Organic |
Organic |
|||||||||||||||||||||
($‘s in thousands) |
2019 |
2018 |
$ Change |
Balances |
$ Change |
% Change |
||||||||||||||||||
Ending balances |
||||||||||||||||||||||||
Total assets |
$ | 6,395,172 |
$ | 4,863,153 |
$ | 1,532,019 |
$ | 1,463,200 |
$ | 68,819 |
1.4 |
% | ||||||||||||
Total loans |
4,103,687 |
3,146,313 |
957,374 |
834,683 |
122,691 |
3.9 |
% | |||||||||||||||||
Total investments |
1,566,720 |
1,251,776 |
314,944 |
335,667 |
(20,723 |
) | (1.7 |
%) | ||||||||||||||||
Total deposits |
$ | 5,342,173 |
$ | 4,077,222 |
$ | 1,264,951 |
$ | 991,935 |
$ | 273,016 |
6.7 |
% |
For the six months ended |
||||||||||||||||||||||||
June 30, 2019 |
June 30, 2018 |
|||||||||||||||||||||||
Average Balance |
Interest Income/ Expense |
Rates Earned /Paid |
Average Balance |
Interest Income/ Expense |
Rates Earned /Paid |
|||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Loans |
$ | 4,033,954 |
$ | 109,889 |
5.45 |
% | $ | 3,066,152 |
$ | 77,353 |
5.05 |
% | ||||||||||||
Investment securities - taxable |
1,428,951 |
21,677 |
3.03 |
% | 1,123,964 |
15,394 |
2.74 |
% | ||||||||||||||||
Investment securities - nontaxable (1) |
141,397 |
2,753 |
3.89 |
% | 136,143 |
2,708 |
3.98 |
% | ||||||||||||||||
Total investments |
1,570,348 |
24,430 |
3.11 |
% | 1,260,107 |
18,102 |
2.87 |
% | ||||||||||||||||
Cash at Federal Reserve and other banks |
158,164 |
1,937 |
2.45 |
% | 92,869 |
769 |
1.66 |
% | ||||||||||||||||
Total interest-earning assets |
5,762,466 |
136,256 |
4.73 |
% | 4,419,128 |
96,224 |
4.35 |
% | ||||||||||||||||
Other assets |
643,592 |
358,747 |
||||||||||||||||||||||
Total assets |
$ | 6,406,058 |
$ | 4,777,875 |
||||||||||||||||||||
Liabilities and shareholders’ equity: |
||||||||||||||||||||||||
Interest-bearing demand deposits |
$ | 1,274,882 |
$ | 576 |
0.09 |
% | $ | 994,867 |
$ | 425 |
0.09 |
% | ||||||||||||
Savings deposits |
1,907,677 |
2,439 |
0.26 |
% | 1,382,249 |
838 |
0.12 |
% | ||||||||||||||||
Time deposits |
441,447 |
2,703 |
1.22 |
% | 310,035 |
1,067 |
0.69 |
% | ||||||||||||||||
Total interest-bearing deposits |
3,624,006 |
5,718 |
0.32 |
% | 2,687,151 |
2,330 |
0.17 |
% | ||||||||||||||||
Other borrowings |
16,736 |
50 |
0.60 |
% | 123,544 |
928 |
1.50 |
% | ||||||||||||||||
Junior subordinated debt |
57,086 |
1,684 |
5.90 |
% | 56,905 |
1,486 |
5.22 |
% | ||||||||||||||||
Total interest-bearing liabilities |
3,697,828 |
7,452 |
0.40 |
% | 2,867,600 |
4,744 |
0.33 |
% | ||||||||||||||||
Noninterest-bearing deposits |
1,754,973 |
1,336,070 |
||||||||||||||||||||||
Other liabilities |
98,570 |
65,982 |
||||||||||||||||||||||
Shareholders’ equity |
854,687 |
508,223 |
||||||||||||||||||||||
Total liabilities and shareholders’ equity |
$ | 6,406,058 |
$ | 4,777,875 |
||||||||||||||||||||
Net interest spread (2) |
4.33 |
% | 4.02 |
% | ||||||||||||||||||||
Net interest income and interest margin (3) |
$ | 128,804 |
4.47 |
% | $ | 91,480 |
4.14 |
% | ||||||||||||||||
(1) |
Fully taxable equivalent (FTE) |
(2) |
Net interest spread represents the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities. |
(3) |
Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets. |
Three months ended June 30, 2019 compared with three months ended June 30, 2018 |
||||||||||||
Volume |
Rate |
Total |
||||||||||
Increase in interest income: |
||||||||||||
Loans |
$ | 12,681 |
$ | 3,507 |
$ | 16,188 |
||||||
Investment securities (1) |
2,391 |
638 |
3,029 |
|||||||||
Cash at Federal Reserve and other banks |
273 |
197 |
470 |
|||||||||
Total interest-earning assets |
15,345 |
4,342 |
19,687 |
|||||||||
Increase (decrease) in interest expense: |
||||||||||||
Interest-bearing demand deposits |
63 |
12 |
75 |
|||||||||
Savings deposits |
194 |
685 |
879 |
|||||||||
Time deposits |
303 |
508 |
811 |
|||||||||
Other borrowings |
(346 |
) | (203 |
) | (549 |
) | ||||||
Junior subordinated debt |
4 |
36 |
40 |
|||||||||
Total interest-bearing liabilities |
218 |
1,038 |
1,256 |
|||||||||
Increase in net interest income |
$ | 15,127 |
$ | 3,304 |
$ | 18,431 |
||||||
(1) |
Fully taxable equivalent (FTE) |
Six months ended June 30, 2019 compared with six months ended June 30, 2018 |
||||||||||||
Volume |
Rate |
Total |
||||||||||
Increase in interest income: |
||||||||||||
Loans |
$ | 25,971 |
$ | 6,565 |
$ | 32,536 |
||||||
Investment securities (1) |
4,733 |
1,595 |
6,328 |
|||||||||
Cash at Federal Reserve and other banks |
695 |
473 |
1,168 |
|||||||||
Total interest-earning assets |
31,399 |
8,633 |
40,032 |
|||||||||
Increase (decrease) in interest expense: |
||||||||||||
Interest-bearing demand deposits |
126 |
25 |
151 |
|||||||||
Savings deposits |
408 |
1,193 |
1,601 |
|||||||||
Time deposits |
576 |
1,060 |
1,636 |
|||||||||
Other borrowings |
(518 |
) | (360 |
) | (878 |
) | ||||||
Junior subordinated debt |
4 |
194 |
198 |
|||||||||
Total interest-bearing liabilities |
596 |
2,112 |
2,708 |
|||||||||
Increase in net interest income |
$ | 30,803 |
$ | 6,521 |
$ | 37,324 |
||||||
(1) |
Fully taxable equivalent (FTE) |
Three months ended June 30, |
||||||||||||||||
(dollars in thousands) |
2019 |
2018 |
$ Change |
% Change |
||||||||||||
ATM and interchange fees |
$ | 5,404 |
$ | 4,510 |
$ | 894 |
19.8 |
% | ||||||||
Service charges on deposit accounts |
4,182 |
3,613 |
569 |
15.7 |
% | |||||||||||
Other service fees |
619 |
630 |
(11 |
) | (1.7 |
%) | ||||||||||
Mortgage banking service fees |
475 |
511 |
(36 |
) | (7.0 |
%) | ||||||||||
Change in value of mortgage servicing rights |
(552 |
) | (36 |
) | (516 |
) | 1433.3 |
% | ||||||||
Total service charges and fees |
10,128 |
9,228 |
900 |
9.8 |
% | |||||||||||
Increase in cash value of life insurance |
746 |
656 |
90 |
13.7 |
% | |||||||||||
Asset management and commission income |
739 |
810 |
(71 |
) | (8.8 |
%) | ||||||||||
Gain on sale of loans |
575 |
666 |
(91 |
) | (13.7 |
%) | ||||||||||
Lease brokerage income |
239 |
200 |
39 |
19.5 |
% | |||||||||||
Sale of customer checks |
135 |
138 |
(3 |
) | (2.2 |
%) | ||||||||||
Gain on sale of foreclosed assets |
197 |
17 |
180 |
1058.8 |
% | |||||||||||
Gain (loss) on marketable equity securities |
42 |
(23 |
) | 65 |
(282.6 |
%) | ||||||||||
Loss on disposal of fixed assets |
(42 |
) | (41 |
) | (1 |
) | 2.4 |
% | ||||||||
Other |
819 |
523 |
296 |
56.6 |
% | |||||||||||
Total other noninterest income |
3,450 |
2,946 |
504 |
17.1 |
% | |||||||||||
Total noninterest income |
$ | 13,578 |
$ | 12,174 |
$ | 1,404 |
11.5 |
% | ||||||||
Six months ended June 30, |
||||||||||||||||
(dollars in thousands) |
2019 |
2018 |
$ Change |
% Change |
||||||||||||
ATM and interchange fees |
$ | 9,985 |
$ | 8,745 |
$ | 1,240 |
14.2 |
% | ||||||||
Service charges on deposit accounts |
8,062 |
7,392 |
670 |
9.1 |
% | |||||||||||
Other service fees |
1,390 |
1,344 |
46 |
3.4 |
% | |||||||||||
Mortgage banking service fees |
958 |
1,028 |
(70 |
) | (6.8 |
%) | ||||||||||
Change in value of mortgage servicing rights |
(1,197 |
) | 75 |
(1,272 |
) | (1696.0 |
%) | |||||||||
Total service charges and fees |
19,198 |
18,584 |
614 |
3.3 |
% | |||||||||||
Increase in cash value of life insurance |
1,521 |
1,264 |
257 |
20.3 |
% | |||||||||||
Asset management and commission income |
1,381 |
1,686 |
(305 |
) | (18.1 |
%) | ||||||||||
Gain on sale of loans |
987 |
1,292 |
(305 |
) | (23.6 |
%) | ||||||||||
Lease brokerage income |
459 |
328 |
131 |
39.9 |
% | |||||||||||
Sale of customer checks |
275 |
239 |
36 |
15.1 |
% | |||||||||||
Gain on sale of foreclosed assets |
199 |
388 |
(189 |
) | (48.7 |
%) | ||||||||||
Gain (loss) on marketable equity securities |
78 |
(70 |
) | 148 |
(211.4 |
%) | ||||||||||
Loss on disposal of fixed assets |
(80 |
) | (54 |
) | (26 |
) | 48.1 |
% | ||||||||
Other |
1,424 |
807 |
617 |
76.5 |
% | |||||||||||
Total other noninterest income |
6,244 |
5,880 |
364 |
6.2 |
% | |||||||||||
Total noninterest income |
$ | 25,442 |
$ | 24,464 |
$ | 978 |
4.0 |
% | ||||||||
Three months ended June 30, |
||||||||||||||||
2019 |
2018 |
$ Change |
% Change |
|||||||||||||
Base salaries, net of deferred loan origination costs |
$ | 17,211 |
$ | 14,429 |
$ | 2,782 |
19.3 |
% | ||||||||
Incentive compensation |
3,706 |
2,159 |
1,547 |
71.7 |
% | |||||||||||
Benefits and other compensation costs |
5,802 |
4,865 |
937 |
19.3 |
% | |||||||||||
Total salaries and benefits expense |
26,719 |
21,453 |
5,266 |
24.5 |
% | |||||||||||
Occupancy |
3,738 |
2,720 |
1,018 |
37.4 |
% | |||||||||||
Data processing and software |
3,354 |
2,679 |
675 |
25.2 |
% | |||||||||||
Equipment |
1,752 |
1,637 |
115 |
7.0 |
% | |||||||||||
Intangible amortization |
1,431 |
339 |
1,092 |
322.1 |
% | |||||||||||
Advertising |
1,533 |
1,035 |
498 |
48.1 |
% | |||||||||||
ATM and POS network charges |
1,270 |
1,437 |
(167 |
) | (11.6 |
%) | ||||||||||
Professional fees |
1,057 |
774 |
283 |
36.6 |
% | |||||||||||
Telecommunications |
773 |
681 |
92 |
13.5 |
% | |||||||||||
Regulatory assessments and insurance |
490 |
417 |
73 |
17.5 |
% | |||||||||||
Merger and acquisition expense |
— |
601 |
(601 |
) | (100.0 |
%) | ||||||||||
Postage |
315 |
301 |
14 |
4.7 |
% | |||||||||||
Operational losses |
226 |
252 |
(26 |
) | (10.3 |
%) | ||||||||||
Courier service |
412 |
224 |
188 |
83.9 |
% | |||||||||||
Other miscellaneous expense |
3,782 |
3,320 |
462 |
13.9 |
% | |||||||||||
Total other noninterest expense |
20,133 |
16,417 |
3,716 |
22.6 |
% | |||||||||||
Total noninterest expense |
$ | 46,852 |
$ | 37,870 |
$ | 8,982 |
23.7 |
% | ||||||||
Average full time equivalent staff |
1,138 |
1,001 |
137 |
13.7 |
% | |||||||||||
Six months ended June 30, |
||||||||||||||||
2019 |
2018 |
$ Change |
% Change |
|||||||||||||
Base salaries, net of deferred loan origination costs |
$ | 33,968 |
$ | 28,391 |
$ | 5,577 |
19.6 |
% | ||||||||
Incentive compensation |
6,273 |
4,611 |
1,662 |
36.0 |
% | |||||||||||
Benefits and other compensation costs |
11,606 |
10,103 |
1,503 |
14.9 |
% | |||||||||||
Total salaries and benefits expense |
51,847 |
43,105 |
8,742 |
20.3 |
% | |||||||||||
Occupancy |
7,512 |
5,401 |
2,111 |
39.1 |
% | |||||||||||
Data processing and software |
6,703 |
5,193 |
1,510 |
29.1 |
% | |||||||||||
Equipment |
3,619 |
3,188 |
431 |
13.5 |
% | |||||||||||
Intangible amortization |
2,862 |
678 |
2,184 |
322.1 |
% | |||||||||||
Advertising |
2,864 |
1,873 |
991 |
52.9 |
% | |||||||||||
ATM and POS network charges |
2,593 |
2,663 |
(70 |
) | (2.6 |
%) | ||||||||||
Professional fees |
1,896 |
1,546 |
350 |
22.6 |
% | |||||||||||
Telecommunications |
1,570 |
1,382 |
188 |
13.6 |
% | |||||||||||
Regulatory assessments and insurance |
1,001 |
847 |
154 |
18.2 |
% | |||||||||||
Merger and acquisition expense |
— |
1,077 |
(1,077 |
) | (100.0 |
%) | ||||||||||
Postage |
625 |
659 |
(34 |
) | (5.2 |
%) | ||||||||||
Operational losses |
451 |
546 |
(95 |
) | (17.4 |
%) | ||||||||||
Courier service |
682 |
491 |
191 |
38.9 |
% | |||||||||||
Other miscellaneous expense |
8,140 |
7,383 |
757 |
10.3 |
% | |||||||||||
Total other noninterest expense |
40,518 |
32,927 |
7,591 |
23.1 |
% | |||||||||||
Total noninterest expense |
$ | 92,365 |
$ | 76,032 |
$ | 16,333 |
21.5 |
% | ||||||||
Average full time equivalent staff |
1,137 |
1,001 |
136 |
13.6 |
% |
(dollars in thousands) |
June 30, 2019 |
December 31, 2018 |
||||||||||||||
Fair Value |
% |
Fair Value |
% |
|||||||||||||
Debt securities available for sale: |
||||||||||||||||
Obligations of U.S. government agencies |
$ | 630,911 |
55.6 |
% | $ | 629,981 |
56.5 |
% | ||||||||
Obligations of states and political subdivisions |
125,980 |
11.1 |
% | 126,072 |
11.3 |
% | ||||||||||
Corporate bonds |
4,521 |
0.4 |
% | 4,478 |
0.4 |
% | ||||||||||
Asset backed securities |
372,582 |
32.9 |
% | 354,505 |
31.8 |
% | ||||||||||
Total debt securities available for sale |
$ | 1,133,994 |
100.0 |
% | $ | 1,115,036 |
100.0 |
% | ||||||||
(dollars in thousands) |
June 30, 2019 |
December 31, 2018 |
||||||||||||||
Amortized Cost |
% |
Amortized Cost |
% |
|||||||||||||
Debt securities held to maturity: |
||||||||||||||||
Obligations of U.S. government and agencies |
$ | 398,714 |
96.7 |
% | $ | 430,343 |
96.7 |
% | ||||||||
Obligations of states and political subdivisions |
13,810 |
3.3 |
% | 14,593 |
3.3 |
% | ||||||||||
Total debt securities held to maturity |
$ | 412,524 |
100 |
% | $ | 444,936 |
100.0 |
% | ||||||||
(dollars in thousands) |
June 30, 2019 |
December 31, 2018 |
||||||||||||||
Real estate mortgage |
$ | 3,178,730 |
77.5 |
% | $ | 3,143,100 |
78.1 |
% | ||||||||
Consumer |
434,388 |
10.6 |
% | 418,982 |
10.4 |
% | ||||||||||
Commercial |
276,045 |
6.7 |
% | 276,548 |
6.9 |
% | ||||||||||
Real estate construction |
214,524 |
5.2 |
% | 183,384 |
4.6 |
% | ||||||||||
Total loans |
$ | 4,103,687 |
100 |
% | $ | 4,022,014 |
100 |
% | ||||||||
(dollars in thousands) |
June 30, 2019 |
December 31, 2018 |
||||||
Performing nonaccrual loans |
$ | 17,825 |
$ | 22,689 |
||||
Nonperforming nonaccrual loans |
3,844 |
4,805 |
||||||
Total nonaccrual loans |
21,669 |
27,494 |
||||||
Loans 90 days past due and still accruing |
22 |
— |
||||||
Total nonperforming loans |
21,691 |
27,494 |
||||||
Foreclosed assets |
1,548 |
2,280 |
||||||
Total nonperforming assets |
$ | 23,239 |
$ | 29,774 |
||||
Nonperforming assets to total assets |
0.36 |
% | 0.47 |
% | ||||
Nonperforming loans to total loans |
0.53 |
% | 0.68 |
% | ||||
Allowance for loan losses to nonperforming loans |
152 |
% | 119 |
% | ||||
Allowance for loan losses, unamortized loan fees, and discounts to loan principal balances owed |
1.97 |
% | 2.11 |
% |
June 30, 2019 |
||||||||||||||||
(dollars in thousands) |
Originated |
PNCI |
PCI |
Total |
||||||||||||
Performing nonaccrual loans |
$ | 11,773 |
$ | 3,410 |
$ | 2,642 |
$ | 17,825 |
||||||||
Nonperforming nonaccrual loans |
2,360 |
1,087 |
397 |
3,844 |
||||||||||||
Total nonaccrual loans |
14,133 |
4,497 |
3,039 |
21,669 |
||||||||||||
Loans 90 days past due and still accruing |
22 |
— |
— |
22 |
||||||||||||
Total nonperforming loans |
14,155 |
4,497 |
3,039 |
21,691 |
||||||||||||
Foreclosed assets |
1,103 |
— |
445 |
1,548 |
||||||||||||
Total nonperforming assets |
$ | 15,258 |
$ | 4,497 |
$ | 3,484 |
$ | 23,239 |
||||||||
U.S. government, including its agencies and its government-sponsored agencies, guaranteed portion of nonperforming loans |
$ | 790 |
$ | — |
$ | 294 |
$ | 1,084 |
||||||||
Nonperforming assets to total assets |
0.24 |
% | 0.07 |
% | 0.05 |
% | 0.36 |
% | ||||||||
Nonperforming loans to total loans |
0.35 |
% | 0.11 |
% | 0.07 |
% | 0.53 |
% | ||||||||
Allowance for loan losses to nonperforming loans |
228 |
% | 13 |
% | 0.33 |
% | 152 |
% | ||||||||
Allowance for loan losses, unamortized loan fees, and discounts to loan principal balances owed |
1.29 |
% | 3.60 |
% | 36.11 |
% | 1.97 |
% |
December 31, 2018 |
||||||||||||||||
(dollars in thousands) |
Originated |
PNCI |
PCI |
Total |
||||||||||||
Performing nonaccrual loans |
$ | 16,573 |
$ | 1,269 |
$ | 4,847 |
$ | 22,689 |
||||||||
Nonperforming nonaccrual loans |
2,843 |
1,589 |
373 |
4,805 |
||||||||||||
Total nonaccrual loans |
19,416 |
2,858 |
5,220 |
27,494 |
||||||||||||
Loans 90 days past due and still accruing |
— |
— |
— |
— |
||||||||||||
Total nonperforming loans |
19,416 |
2,858 |
5,220 |
27,494 |
||||||||||||
Foreclosed assets |
1,490 |
— |
790 |
2,280 |
||||||||||||
Total nonperforming assets |
$ | 20,906 |
$ | 2,858 |
$ | 6,010 |
$ | 29,774 |
||||||||
U.S. government, including its agencies and its government-sponsored agencies, guaranteed portion of nonperforming loans |
$ | 800 |
$ | — |
$ | — |
$ | 800 |
||||||||
Nonperforming assets to total assets |
0.33 |
% | 0.04 |
% | 0.09 |
% | 0.47 |
% | ||||||||
Nonperforming loans to total loans |
0.48 |
% | 0.07 |
% | 0.13 |
% | 0.68 |
% | ||||||||
Allowance for loan losses to nonperforming loans |
164 |
% | 23.3 |
% | 2.34 |
% | 119 |
% | ||||||||
Allowance for loan losses, unamortized loan fees, and discounts to loan principal balances owed |
1.39 |
% | 3.48 |
% | 33.69 |
% | 2.11 |
% |
(in thousands): |
Balance at June 30, 2019 |
New NPA / Valuation Adjustments |
Pay-downs /Sales /Upgrades |
Charge-offs/ Write-downs |
Transfers to Foreclosed Assets |
Balance at March 31, 2019 |
||||||||||||||||||
Real estate mortgage: |
||||||||||||||||||||||||
Residential |
$ | 4,350 |
$ | 2,187 |
$ | (503 |
) | $ | (2 |
) | $ | — |
$ | 2,668 |
||||||||||
Commercial |
8,678 |
579 |
(207 |
) | — |
— |
8,306 |
|||||||||||||||||
Consumer |
||||||||||||||||||||||||
Home equity lines |
2,476 |
67 |
(25 |
) | — |
— |
2,434 |
|||||||||||||||||
Home equity loans |
2,047 |
168 |
(708 |
) | — |
— |
2,587 |
|||||||||||||||||
Other consumer |
74 |
81 |
(40 |
) | (37 |
) | — |
70 |
||||||||||||||||
Commercial |
4,066 |
1,126 |
(422 |
) | (138 |
) | — |
3,500 |
||||||||||||||||
Construction: |
||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Total nonperforming loans |
21,691 |
4,208 |
(1,905 |
) | (177 |
) | — |
19,565 |
||||||||||||||||
Foreclosed assets |
1,548 |
(63 |
) | (704 |
) | — |
— |
2,315 |
||||||||||||||||
Total nonperforming assets |
$ | 23,239 |
$ | 4,145 |
$ | (2,609 |
) | $ | (177 |
) | $ | — |
$ | 21,880 |
||||||||||
(in thousands): |
Balance at June 30, 2019 |
New NPA / Valuation Adjustments |
Pay-downs /Sales /Upgrades |
Charge-offs/ Write-downs |
Transfers to Foreclosed Assets |
Balance at December 31, 2018 |
||||||||||||||||||
Real estate mortgage: |
||||||||||||||||||||||||
Residential |
$ | 4,350 |
$ | 2,187 |
$ | (573 |
) | $ | (2 |
) | $ | (116 |
) | $ | 2,854 |
|||||||||
Commercial |
8,678 |
846 |
(7,214 |
) | — |
— |
15,046 |
|||||||||||||||||
Consumer |
||||||||||||||||||||||||
Home equity lines |
2,476 |
91 |
(364 |
) | — |
— |
2,749 |
|||||||||||||||||
Home equity loans |
2,047 |
200 |
(1,116 |
) | — |
— |
2,963 |
|||||||||||||||||
Other consumer |
74 |
145 |
(41 |
) | (37 |
) | — |
7 |
||||||||||||||||
Commercial |
4,066 |
1,399 |
(581 |
) | (627 |
) | — |
3,875 |
||||||||||||||||
Construction: |
||||||||||||||||||||||||
Residential |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Commercial |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Total nonperforming loans |
21,691 |
4,868 |
(9,889 |
) | (666 |
) | (116 |
) | 27,494 |
|||||||||||||||
Foreclosed assets |
1,548 |
35 |
(883 |
) | — |
116 |
2,280 |
|||||||||||||||||
Total nonperforming assets |
$ | 23,239 |
$ | 4,903 |
$ | (10,772 |
) | $ | (666 |
) | $ | — |
$ | 29,774 |
||||||||||
(dollars in thousands) |
2019 |
2018 |
||||||
Allowance for originated and PNCI loan losses: |
||||||||
Environmental factors allowance |
$ | 12,455 |
$ | 11,577 |
||||
Formula allowance |
17,961 |
18,689 |
||||||
Total allowance for originated and PNCI loan losses |
30,416 |
30,266 |
||||||
Allowance for impaired loans |
2,442 |
2,194 |
||||||
Allowance for PCI loan losses |
10 |
122 |
||||||
Total allowance for loan losses |
$ | 32,868 |
$ | 32,582 |
||||
Allowance for loan losses to loans |
0.80 |
% | 0.81 |
% |
Real estate mortgage |
$ | 14,675 |
44.7 |
% | $ | 15,620 |
47.9 |
% | ||||||||
Consumer |
8,552 |
26.0 |
% | 8,375 |
25.7 |
% | ||||||||||
Commercial |
6,745 |
20.5 |
% | 6,090 |
18.7 |
% | ||||||||||
Real estate construction |
2,896 |
8.8 |
% | 2,497 |
7.7 |
% | ||||||||||
Total allowance for loan losses |
$ | 32,868 |
100.0 |
% | $ | 32,582 |
100.0 |
% | ||||||||
Real estate mortgage |
$ | 3,178,730 |
0.46 |
% | $ | 3,143,100 |
0.50 |
% | ||||||||
Consumer |
434,388 |
1.97 |
% | 418,982 |
2.00 |
% | ||||||||||
Commercial |
276,045 |
2.44 |
% | 276,548 |
2.20 |
% | ||||||||||
Real estate construction |
214,524 |
1.35 |
% | 183,384 |
1.36 |
% | ||||||||||
Total allowance for loan losses |
$ | 4,103,687 |
0.80 |
% | $ | 4,022,014 |
0.81 |
% | ||||||||
(in thousands) |
2019 |
2018 |
2019 |
2018 |
||||||||||||
Allowance for loan losses: |
||||||||||||||||
Balance at beginning of period |
$ | 32,064 |
$ | 29,973 |
$ | 32,582 |
$ | 30,323 |
||||||||
Reversal of provision for loan losses |
537 |
(638 |
) | (1,063 |
) | (874 |
) | |||||||||
Loans charged off: |
||||||||||||||||
Real estate mortgage: |
||||||||||||||||
Residential |
(2 |
) | (51 |
) | (2 |
) | (52 |
) | ||||||||
Commercial |
— |
(15 |
) | — |
(15 |
) | ||||||||||
Consumer: |
||||||||||||||||
Home equity lines |
— |
(24 |
) | — |
(104 |
) | ||||||||||
Home equity loans |
— |
— |
— |
— |
||||||||||||
Other consumer |
(153 |
) | (174 |
) | (360 |
) | (368 |
) | ||||||||
Commercial |
(138 |
) | (54 |
) | (657 |
) | (259 |
) | ||||||||
Construction: |
||||||||||||||||
Residential |
— |
— |
— |
— |
||||||||||||
Commercial |
— |
— |
— |
— |
||||||||||||
Total loans charged off |
(293 |
) | (318 |
) | (1,019 |
) | (798 |
) | ||||||||
Recoveries of previously charged-off loans: |
||||||||||||||||
Real estate mortgage: |
||||||||||||||||
Residential |
3 |
— |
5 |
— |
||||||||||||
Commercial |
10 |
21 |
1,391 |
36 |
||||||||||||
Consumer: |
||||||||||||||||
Home equity lines |
183 |
317 |
278 |
526 |
||||||||||||
Home equity loans |
171 |
23 |
258 |
37 |
||||||||||||
Other consumer |
108 |
66 |
183 |
144 |
||||||||||||
Commercial |
85 |
80 |
253 |
130 |
||||||||||||
Construction: |
||||||||||||||||
Residential |
— |
— |
— |
— |
||||||||||||
Commercial |
— |
— |
— |
— |
||||||||||||
Total recoveries of previously charged off loans |
560 |
507 |
2,368 |
873 |
||||||||||||
Net recoveries (charge-offs) |
267 |
189 |
1,349 |
75 |
||||||||||||
Balance at end of period |
$ | 32,868 |
$ | 29,524 |
$ | 32,868 |
$ | 29,524 |
||||||||
Average total loans |
$ | 4,044,044 |
$ | 3,104,126 |
$ | 4,033,954 |
$ | 3,066,152 |
||||||||
Ratios (annualized): |
||||||||||||||||
Net charge-offs (recoveries) during period to average loans outstanding during period |
(0.03 |
)% | (0.02 |
)% | (0.13 |
)% | (0.01 |
)% | ||||||||
Benefit from reversal of loan losses to average loans outstanding during period |
0.05 |
% | (0.08 |
)% | (0.11 |
)% | (0.11 |
)% |
(in thousands) |
Balance at June 30, 2019 |
Sales |
Valuation Adjustments |
Transfers from Loans |
Balance at December 31, 2018 |
|||||||||||||||
Land & Construction |
$ | 445 |
$ | — |
$ | — |
$ | — |
$ | 445 |
||||||||||
Residential real estate |
1,015 |
(883 |
) | 40 |
116 |
1,742 |
||||||||||||||
Commercial real estate |
88 |
— |
(5 |
) | — |
93 |
||||||||||||||
Total foreclosed assets |
$ | 1,548 |
$ | (883 |
) | $ | 35 |
$ | 116 |
$ | 2,280 |
|||||||||
June 30, 2019 |
December 31, 2018 |
|||||||||||||||
Ratio |
Minimum Regulatory Requirement |
Ratio |
Minimum Regulatory Requirement |
|||||||||||||
Total capital |
14.93 |
% | 10.50 |
% | 14.40 |
% | 9.25 |
% | ||||||||
Tier I capital |
14.19 |
% | 8.50 |
% | 13.66 |
% | 7.25 |
% | ||||||||
Common equity Tier 1 capital |
13.03 |
% | 7.00 |
% | 12.49 |
% | 5.75 |
% | ||||||||
Leverage |
11.08 |
% | 4.00 |
% | 10.68 |
% | 4.00 |
% |
Item 3. |
Quantitative and Qualitative Disclosures about Market Risk |
Item 4. |
Controls and Procedures |
Period |
(a) Total number of shares purchased (1) |
(b) Average price paid per share |
(c) Total number of shares purchased as of part of publicly announced plans or programs |
(d) Maximum number of shares that may yet be purchased under the plans or programs (2) |
||||||||||||
April 1-30, 2019 |
38,087 |
$ | 39.91 |
— |
303,434 |
|||||||||||
May 1-31, 2019 |
12,487 |
$ | 39.88 |
— |
303,434 |
|||||||||||
June 1-30, 2019 |
43,181 |
$ | 38.28 |
— |
303,434 |
|||||||||||
Total |
93,755 |
$ | 39.16 |
— |
303,434 |
(1) |
Includes shares purchased by the Company’s Employee Stock Ownership Plan and pursuant to various other equity incentive plans. See Note 9 to the condensed consolidated financial statements at Item 1 of Part I of this report, for a discussion of the Company’s stock repurchased under equity compensation plans. |
(2) |
Does not include shares that may be purchased by the Company’s Employee Stock Ownership Plan and pursuant to various other equity incentive plans. |
Exhibit No. |
Exhibit | |||
31.1 |
||||
31.2 |
||||
32.1 |
||||
32.2 |
||||
99.1* |
||||
99.2* |
||||
99.3* |
||||
101.INS |
XBRL Instance Document | |||
101.SCH |
XBRL Taxonomy Extension Schema Document | |||
101.CAL |
XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.LAB |
XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE |
XBRL Taxonomy Extension Presentation Linkbase Document | |||
101.DEF |
XBRL Taxonomy Extension Definition Linkbase Document |
* | Management contract or compensatory plan or arrangement. |
TRICO BANCSHARES | ||||||
(Registrant) | ||||||
Date: August 9, 2019 |
/s/ Peter G. Wiese | |||||
Peter G. Wiese | ||||||
Executive Vice President and Chief Financial Officer | ||||||
(Duly authorized officer and principal financial and chief accounting officer) |
Exhibit 31.1
Rule 13a-14(a)/15d-14(a) Certification of CEO
I, Richard P. Smith, certify that;
1. | I have reviewed this report on Form 10-Q of TriCo Bancshares; |
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 quarterly 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 registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we 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 subsidiary, 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
Date: August 9, 2019 | /s/ Richard P. Smith | |||||
Richard P. Smith | ||||||
President and Chief Executive Officer |
Exhibit 31.2
Rule 13a-14(a)/15d-14(a) Certification of CFO
I, Peter G. Wiese, certify that;
1. | I have reviewed this report on Form 10-Q of TriCo Bancshares; |
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 quarterly 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 registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we 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 subsidiary, 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
Date: August 9, 2019 | /s/ Peter G. Wiese | |||||
Peter G. Wiese | ||||||
Executive Vice President and Chief Financial Officer |
Exhibit 32.1
Section 1350 Certification of CEO
In connection with the Quarterly Report of TriCo Bancshares (the Company) on Form 10-Q for the period ended June 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Richard P. Smith, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Sectioconsisn 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Richard P. Smith | ||
Richard P. Smith | ||
President and Chief Executive Officer |
A signed original of this written statement required by Section 906 has been provided to TriCo Bancshares and will be retained by TriCo Bancshares and furnished to the Securities and Exchange Commission or its staff upon request.
Exhibit 32.2
Section 1350 Certification of CFO
In connection with the Quarterly Report of TriCo Bancshares (the Company) on Form 10-Q for the period ended June 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Peter G. Wiese, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Peter G. Wiese | ||
Peter G. Wiese | ||
Executive Vice President and Chief Financial Officer |
A signed original of this written statement required by Section 906 has been provided to TriCo Bancshares and will be retained by TriCo Bancshares and furnished to the Securities and Exchange Commission or its staff upon request.
EXHIBIT 99.1
TRICO BANCSHARES
DIRECTOR RESTRICTED STOCK UNIT GRANT NOTICE
TriCo Bancshares, a California corporation (the Company), pursuant to its 2019 Equity Incentive Plan (the Plan), hereby grants to the holder listed below (the Participant or you), a Restricted Stock Unit Award (the Award). Such award shall be comprised of restricted stock units (the Units or RSUs), each of which is a right to receive one (1) share of Common Stock, on the terms and conditions set forth herein and in the Restricted Stock Unit Award Agreement attached hereto (the Award Agreement) and the Plan, which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Award Agreement.
Participant:
Date of Grant:
Vesting Commencement Date:
Number of Units/Shares Subject to Award:
Vesting Schedule: | Except as otherwise set forth in the Award Agreement, the Award will vest upon the Participants completion of one (1) year of Continuous Service following the Grant date.* |
* | For vesting dates that fall on weekends and holidays, this date will be the next business day following such date. |
By his or her signature below or by electronic acceptance or authentication in a form authorized by the Company, the Participant agrees to be bound by the terms and conditions of the Plan, the Award Agreement and the Grant Notice. The Participant has reviewed and fully understands all provisions of the Plan, the Award Agreement, and the Grant Notice in their entirety and has had an opportunity to obtain the advice of counsel prior to executing below. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, the Award Agreement, the Grant Notice or relating to the Units.
TRICO BANCSHARES | PARTICIPANT | |||||||
By: |
|
By: |
| |||||
Name: | Glenn Hunter | Print Name: | ||||||
Title: | SVP, CHRO | |||||||
Address: | 63 Constitution Drive | Address: | ||||||
Chico, CA 95973 |
ATTACHMENTS: | TriCo Bancshares 2019 Equity Incentive Plan, as amended; Restricted Stock Unit Award Agreement. The prospectus for the Plan prepared in connection with the registration with the Securities and Exchange Commission of the shares of Common Stock issuable pursuant to the Award is available on the Human Resources section of the Companys intranet. |
1
Trico Bancshares
2019 EQUITY INCENTIVE PLAN
RESTRICTED STOCK UNIT AWARD AGREEMENT
Pursuant to the Restricted Stock Unit Award Grant Notice (Grant Notice) and this Restricted Stock Unit Award Agreement (Award Agreement), Trico Bancshares (the Company) has awarded you a Restricted Stock Unit Award under its 2019 Equity Incentive Plan, (the Plan) for the number of RSUs specified in the Grant Notice (collectively, the Award). Except where indicated otherwise, defined terms not explicitly defined in this Award Agreement but defined in the Plan or Grant Notice shall have the same definitions as in the Plan or Grant Notice, You hereby understand that the shares of Common Stock issued with respect to the Award is subject to minimum holding requirements described in Section 10(f) of the Plan.
The details of your Award are as follows:
1. NUMBER OF RESTRICTED STOCK UNITS AND SHARES OF COMMON STOCK. The number of RSUs subject to your Award is set forth in the Grant Notice. Each RSU shall represent the right to receive one (1) share of Common Stock. The number of RSUs will increase by any dividend equivalents, as described in Section 3 below. The number of RSUs subject to your Award and the number of shares of Common Stock deliverable with respect to such RSUs may be adjusted from time to time for capitalization adjustments as described in Section 11(a) of the Plan.
2. VESTING. The RSUs shall vest, if at all, as provided in the vesting schedule set forth in your Grant Notice; provided, however, that except as provided herein, vesting shall cease upon the termination of your Continuous Service for any reason. Other than due to your retirement from the Board, in the event that your service with the Company terminates for any reason, with or without cause, you shall forfeit and the Company shall automatically reacquire all RSUs which are not, as of the time of such termination, vested Units, and you shall not be entitled to any payment therefor. If you retire from the Board prior to one year of Continuous Service following the Grant date, the RSUs shall vest on your date of retirement from the Board.
Except as otherwise determined by the Committee under the terms of Section 11 of the Plan, in the event of a Change in Control, no acceleration of vesting shall occur with respect to the Units granted in this Award.
3. DIVIDENDS. If the Company pays dividends with respect to the Common Stock (the date of any such payment is a Dividend Date), then Dividend equivalents shall then be credited to any then outstanding RSU. The amount of such dividend equivalent credit will be equal to the dollar value of dividends paid on an actual share of Common Stock on the Dividend Date, multiplied by the number of outstanding RSUs held by you pursuant to this Award as of the Dividend Date. This aggregate dollar
2
amount will then be divided by the Fair Market Value on the Dividend Date of a share of Common Stock, and the resulting quotient shall be the number of additional RSUs Additional RSUs that will be credited to this Award. Such Additional RSUs will be subject to the Plan and the same vesting (on a pro-rata basis based on each vesting tranche of RSUs outstanding hereunder on the Dividend Date), forfeiture restrictions, restrictions on transferability, and settlement provisions as apply to the RSUs that are the subject of this Award and for avoidance of doubt Additional RSUs will also be eligible to accrue future dividend equivalents.
4. RIGHTS AS A SHAREHOLDER. You shall have no rights as a shareholder with respect to any shares of Common Stock which may be issued in settlement of this Award until the date of the issuance of such share of Common Stock under the terms of this Award Agreement (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, Dividend Equivalents, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 1.
5. PAYMENT. Subject to Section 11 below, you will not be required to make any payment to the Company with respect to your receipt of the Award, vesting of the RSUs, or the delivery of the shares of Common Stock subject to the RSUs.
6. DELIVERY OF SHARES. Subject to Sections 7 and 11 below, the Company will issue you one share of Common Stock for each RSU which vests under this Award Agreement, on the applicable vesting date or as soon as practicable thereafter, but not later than thirty (30) days from the vesting date (the actual date of such issuance during such period shall be solely determined by the Company). The form of delivery (e.g., a stock certificate or electronic entry evidencing such shares of Common Stock) shall be determined by the Company. You hereby authorize the Company, in its sole discretion, to deposit for your benefit with a Company-designated brokerage firm or, at the Companys discretion, any other broker with which you have an account relationship of which the Company has notice any or all shares of Common Stock acquired by you pursuant to the settlement of the Award. Except as provided by the preceding sentence, a certificate for the shares of Common Stock as to which the Award is settled shall be registered in your name, or, if applicable, in the names of your heirs.
7. RESTRICTIONS ON GRANT OF THE AWARD AND ISSUANCE OF SHARES. The grant of the Award and issuance of shares of Common Stock upon settlement of the Award shall be subject to compliance with all applicable requirements of U.S. federal or state law with respect to such securities. No shares of Common Stock may be issued hereunder if the issuance of such shares of Common Stock would constitute a violation of any applicable U.S. federal or state securities laws or other laws or regulations or the requirements of any stock exchange or market system upon which the Common Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Companys legal counsel to be necessary to the lawful issuance of any shares of Common Stock subject to the Award shall relieve the Company of any liability in respect of the failure to issue such shares of
3
Common Stock as to which such requisite authority shall not have been obtained. As a condition to the settlement of the Award, the Company may require you to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. Further, regardless of whether the transfer or issuance of the shares of Common Stock to be issued pursuant to the Units has been registered under the Securities Act or has been registered or qualified under the securities laws of any State, the Company may impose additional restrictions upon the sale, pledge, or other transfer of the shares of Common Stock (including the placement of appropriate legends on stock certificates and the issuance of stop-transfer instructions to the Companys transfer agent) if, in the judgment of the Company and the Companys counsel, such restrictions are necessary in order to achieve compliance with the provisions of the Securities Act, the securities laws of any State, or any other law.
8. TRANSFER RESTRICTIONS. Prior to the time that the shares of Common Stock subject to your Award have been delivered to you, you may not transfer, pledge, sell or otherwise dispose of such shares of Common Stock or of the RSUs. For example, you may not use shares of Common Stock that may be issued in respect of your RSUs as security for a loan, nor may you transfer, pledge, sell or otherwise dispose of such shares of Common Stock. This restriction on transfer will lapse upon delivery to you of shares of Common Stock in respect of your vested RSUs. Your Award is not transferable, except by will or by the laws of descent and distribution. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to receive any distribution of shares of Common Stock in respect of vested RSUs pursuant to this Agreement.
9. AWARD NOT A SERVICE CONTRACT. Your Award is not an employment or service contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation on your part to continue in the service of the Company or any Affiliate, or on the part of the Company or any Affiliate to continue such service. In addition, nothing in your Award shall obligate the Company or any Affiliate, their respective shareholders, boards of directors or employees to continue any relationship that you might have as an Employee or Consultant of the Company or any Affiliate.
10. UNSECURED OBLIGATION. Your Award is unfunded, and even as a holder of vested RSUs, you shall be considered an unsecured creditor of the Company with respect to the Companys obligation, if any, to issue shares of Common Stock pursuant to this Agreement. Nothing contained in this Award Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.
11. WITHHOLDING OF TAXES. At the time the Grant Notice is executed, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for, any sums required to satisfy the U.S. federal, state, and local taxes required
4
by law to be withheld with respect to any taxable event arising as a result of your participation in the Plan (referred to herein as Tax-Related Items). The Company or any Affiliate, as appropriate, shall have the authority and the right to deduct or withhold, or require you to remit an amount sufficient to satisfy applicable Tax-Related Items or to take such other action as may be reasonably necessary to satisfy such Tax-Related Items. In this regard, you authorize the Company and any Affiliate, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:
(a) withholding from your wages or other cash compensation paid to you; or
(b) withholding from proceeds of the sale of shares of Common Stock acquired upon vesting and settlement of the Units, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization); or
(c) withholding in shares of Common Stock to be issued upon vesting and settlement of the Units; or
(d) direct payment from you.
The Company does not have any duty or obligation to minimize your liability for Tax-Related Items arising from the Award, and, will not be liable to you for any Tax-Related Items arising in connection with the Award. Finally, you shall pay any amount of Tax-Related Items that the Company or any Affiliate may be required to withhold as a result of his or her participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares of Common Stock that may be issued in connection with the settlement of the Units if you fail to comply with your Tax-Related Items obligations.
You represent, warrant and acknowledge that the Company has made no warranties or representations to you with respect to the income tax consequences of the transactions contemplated by this Award Agreement, and you are in no manner relying on the Company or the Companys representatives for an assessment of such tax consequences. YOU UNDERSTAND THAT THE TAX LAWS AND REGULATION ARE SUBJECT TO CHANGE. YOU SHOULD CONSULT YOUR OWN TAX ADVISOR REGARDING THE UNITS. NOTHING STATED HEREIN IS INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES.
12. NOTICES. Any notices provided for in your Award or the Plan shall be given in writing or shall be delivered electronically, and shall be deemed effectively given or delivered upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.
5
13. MISCELLANEOUS.
(a) The rights and obligations of the Company with respect to your Award shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Companys successors and assigns.
(b) You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your Award.
(c) All obligations of the Company under the Plan and this Agreement will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.
(d) You agree that the Company does not have any duty or obligation to minimize your liability for tax withholding obligations arising from the Award and will not be liable to you for any tax withholding obligations arising in connection with the Award.
14. HEADINGS. The headings of the Sections in this Agreement are inserted for convenience only and shall not be deemed to constitute a part of this Agreement or to affect the meaning of this Award Agreement.
15. SEVERABILITY. If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.
16. COMPLIANCE WITH CODE SECTION 409A.
(a) It is intended that the RSUs granted hereunder be exempt from or comply with the requirements of Code Section 409A, so that none of the RSUs, or the resulting shares of Common Stock or compensation, if any, shall be subject to the additional tax imposed by Section 409A. The vesting and settlement of such RSUs are intended to qualify for the short-term deferral exemption from Code Section 409A. Each installment of RSUs that vests is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). As such, each eligible vested RSU shall be settled, per the terms of the Plan, the Grant Notice and this Award Agreement, within the short-term deferral period, as defined in Code Section 409A, the
6
applicable Treasury Regulations and related guidance issued thereunder. Notwithstanding any other provision of the Plan, this Award Agreement, the Grant Notice or the Plan:
(i) The Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Code Section 409A and any Department of Treasury regulations and other applicable guidance issued thereunder (including any regulations or guidance that may be issued after the date hereof), and any ambiguities herein shall be interpreted to so comply.
(ii) The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan and/or this Award Agreement to ensure that the RSUs qualify for exemption from, comply with or otherwise avoid the imposition of any additional tax or income recognition under Code Section 409A; provided, however, that the Company makes no representations that the RSUs will be exempt from Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the RSUs.
(b) Separation from Service; Required Delay in Payment to Specified Employee. Notwithstanding anything set forth herein to the contrary, no amount payable pursuant to this Agreement on account of your termination of Service which constitutes a deferral of compensation within the meaning of Code Section 409A shall be paid unless and until you have incurred a separation from service within the meaning of Code Section 409A. Furthermore, to the extent that you are a Specified Employee within the meaning of Code Section 409A as of the date of your separation from service, no amount that constitutes a deferral of compensation which is payable on account of the your separation from service that would result in the imposition of additional tax under Code Section 409A if issued to you on or within the six (6) month period following your termination of an employment shall be paid to you before the date which is the first day of the seventh month after the date of your separation from service or, if earlier, ten (10) days following the date of your death following such separation from service. All such amounts that would, but for this Section, become payable prior to a delayed payment date will be accumulated and paid on the delayed payment date.
17. RESTRICTIONS ON CONTRACTS AND PAYMENTS FOR INSURED DEPOSITORY INSTITUTIONS IN TROUBLED STATUS. The parties acknowledge and agree that while the restrictions contained in the Federal Deposit Insurance Act, Section 18(k) [12 U.S.C. §1828(k)], relating to contracts for and payment of executive compensation and benefits by insured depository institutions in troubled condition, do not currently apply to the Company or you, such provisions could apply in the future. In the event that any such restrictions or any contractual arrangement with or required by a regulatory authority require the Company to seek or demand repayment or return of any payments made to you under this Award Agreement and the Plan for any reason, you agree to repay to the Company the aggregate amount of such payments no later than thirty (30) days following your receipt of a written notice from the Company indicating that payments received by you under this Award Agreement and the Plan are subject to recapture or clawback.
18. AUTHORIZATION TO RELEASE NECESSARY PERSONAL INFORMATION. You hereby authorize and direct the Company to collect, use and transfer in electronic or other form, any personal information (the Data), the nature and amount of your
7
compensation and the fact and conditions of your participation in the Plan (including, but not limited to, your name, home address, telephone number, date of birth, social security number, salary, job title, number of shares held and the details of all Units or any other entitlement to shares awarded, cancelled, exercised, vested, unvested or outstanding) for the purpose of implementing, administering and managing your participation in the Plan. You understand that the Data may be transferred to the Company or any Affiliate, or to any third parties assisting in the implementation, administration and management of the Plan, including any requisite transfer to a brokerage firm or other third party assisting with administration of the Award or with whom shares acquired upon settlement of this Award or cash from the sale of such shares may be deposited. Furthermore, you acknowledge and understands that the transfer of the Data to the Company or any Affiliate, or to any third parties is necessary for your participation in the Plan. You may at any time withdraw the consents herein, by contacting the Companys stock administration department in writing. You further acknowledge that withdrawal of consent may affect your ability to realize benefits from the Award, and your ability to participate in the Plan.
19. COUNTERPARTS. The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
20. ADMINISTRATION. The Committee shall have the power to interpret the Plan and this Award Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee or the Board in good faith shall be final and binding upon you, the Company and all other interested persons. No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Award Agreement or the Units.
21. GOVERNING LAW. The interpretation, performance and enforcement of this Award Agreement shall be governed by the laws of the State of California, U.S.A. without regard to the conflict-of-laws rules thereof or of any other jurisdiction.
22. GOVERNING PLAN DOCUMENT. Grant Notice, this Award Agreement, and the Units evidenced hereby (i) are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan, the provisions of which are hereby made a part of your Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan, and (ii) constitute the entire agreement between you and the Company on the subject matter hereof and supersede all proposals, written or oral, and all other communications between the parties related to the subject matter. In the event of any conflict between the provisions of your Award and those of the Plan, the provisions of the Plan shall control.
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EXHIBIT 99.2
TRICO BANCSHARES
RESTRICTED STOCK UNIT GRANT NOTICE
TriCo Bancshares, a California corporation (the Company), pursuant to its 2019 Equity Incentive Plan (the Plan), hereby grants to the holder listed below (the Participant or you), a Restricted Stock Unit Award (the Award). Such award shall be comprised of restricted stock units (the Units or RSUs), each of which is a right to receive one (1) share of Common Stock, on the terms and conditions set forth herein and in the Restricted Stock Unit Award Agreement attached hereto (the Award Agreement) and the Plan, which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Award Agreement.
Participant:
Date of Grant:
Vesting Commencement Date:
Number of Units/Shares Subject to Award:
Vesting Schedule: | The Award will vest in four (4) equal annual installments on each of the first four anniversaries of the Vesting Commencement Date* (provided that the first vesting date shall be no earlier than the first anniversary of the Grant Date) subject to the Participants Continuous Service following the Grant Date through each applicable vesting date. |
* | For vesting dates that fall on weekends and holidays, this date will be the next business day following such date. |
By his or her signature below or by electronic acceptance or authentication in a form authorized by the Company, the Participant agrees to be bound by the terms and conditions of the Plan, the Award Agreement and the Grant Notice. The Participant has reviewed and fully understands all provisions of the Plan, the Award Agreement, and the Grant Notice in their entirety and has had an opportunity to obtain the advice of counsel prior to executing below. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, the Award Agreement, the Grant Notice or relating to the Units.
TRICO BANCSHARES | PARTICIPANT | |||||||
By: |
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By: |
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Name: | Glenn Hunter | Print Name: | ||||||
Title: | SVP, CHRO | |||||||
Address: | 63 Constitution Drive | Address: | ||||||
Chico, CA 95973 |
ATTACHMENTS: | TriCo Bancshares 2019 Equity Incentive Plan, as amended; Restricted Stock Unit Award Agreement. The prospectus for the Plan prepared in connection with the registration with the Securities and Exchange Commission of the shares of Common Stock issuable pursuant to the Award is available on the Human Resources section of the Companys intranet. |
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Trico Bancshares
2019 EQUITY INCENTIVE PLAN
RESTRICTED STOCK UNIT AWARD AGREEMENT
Pursuant to the Restricted Stock Unit Award Grant Notice (Grant Notice) and this Restricted Stock Unit Award Agreement (Award Agreement), Trico Bancshares (the Company) has awarded you a Restricted Stock Unit Award under its 2019 Equity Incentive Plan, (the Plan) for the number of RSUs specified in the Grant Notice (collectively, the Award). Except where indicated otherwise, defined terms not explicitly defined in this Award Agreement but defined in the Plan or Grant Notice shall have the same definitions as in the Plan or Grant Notice, You hereby understand that the shares of Common Stock issued with respect to the Award is subject to minimum holding requirements described in Section 10(f) of the Plan.
The details of your Award are as follows:
1. NUMBER OF RESTRICTED STOCK UNITS AND SHARES OF COMMON STOCK. The number of RSUs subject to your Award is set forth in the Grant Notice. Each RSU shall represent the right to receive one (1) share of Common Stock. The number of RSUs will increase by any dividend equivalents, as described in Section 3 below. The number of RSUs subject to your Award and the number of shares of Common Stock deliverable with respect to such RSUs may be adjusted from time to time for capitalization adjustments as described in Section 11(a) of the Plan.
2. VESTING. The RSUs shall vest, if at all, as provided in the vesting schedule set forth in your Grant Notice; provided, however, that vesting shall cease upon the termination of your Continuous Service for any reason. In the event that your service with the Company terminates for any reason, with or without cause, you shall forfeit and the Company shall automatically reacquire all RSUs which are not, as of the time of such termination, vested Units, and you shall not be entitled to any payment therefor.
Except as otherwise determined by the Committee under the terms of Section 11 of the Plan, in the event of a Change in Control, no acceleration of vesting shall occur with respect to the Units granted in this Award.
3. DIVIDENDS. If the Company pays dividends with respect to the Common Stock (the date of any such payment is a Dividend Date), then Dividend equivalents shall then be credited to any then outstanding RSU. The amount of such dividend equivalent credit will be equal to the dollar value of dividends paid on an actual share of Common Stock on the Dividend Date, multiplied by the number of outstanding RSUs held by you pursuant to this Award as of the Dividend Date. This aggregate dollar amount will then be divided by the Fair Market Value on the Dividend Date of a share of Common Stock, and the resulting quotient shall be the number of additional RSUs Additional RSUs that will be credited to this Award. Such Additional RSUs will be
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subject to the Plan and the same vesting (on a pro-rata basis based on each vesting tranche of RSUs outstanding hereunder on the Dividend Date), forfeiture restrictions, restrictions on transferability, and settlement provisions as apply to the RSUs that are the subject of this Award and for avoidance of doubt Additional RSUs will also be eligible to accrue future dividend equivalents.
4. RIGHTS AS A SHAREHOLDER. You shall have no rights as a shareholder with respect to any shares of Common Stock which may be issued in settlement of this Award until the date of the issuance of such share of Common Stock under the terms of this Award Agreement (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, Dividend Equivalents, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 1.
5. PAYMENT. Subject to Section 11 below, you will not be required to make any payment to the Company with respect to your receipt of the Award, vesting of the RSUs, or the delivery of the shares of Common Stock subject to the RSUs.
6. DELIVERY OF SHARES. Subject to Sections 7 and 11 below, the Company will issue you one share of Common Stock for each RSU which vests under this Award Agreement, on the applicable vesting date or as soon as practicable thereafter, but not later than thirty (30) days from the vesting date (the actual date of such issuance during such period shall be solely determined by the Company). The form of delivery (e.g., a stock certificate or electronic entry evidencing such shares of Common Stock) shall be determined by the Company. You hereby authorize the Company, in its sole discretion, to deposit for your benefit with a Company-designated brokerage firm or, at the Companys discretion, any other broker with which you have an account relationship of which the Company has notice any or all shares of Common Stock acquired by you pursuant to the settlement of the Award. Except as provided by the preceding sentence, a certificate for the shares of Common Stock as to which the Award is settled shall be registered in your name, or, if applicable, in the names of your heirs.
7. RESTRICTIONS ON GRANT OF THE AWARD AND ISSUANCE OF SHARES. The grant of the Award and issuance of shares of Common Stock upon settlement of the Award shall be subject to compliance with all applicable requirements of U.S. federal or state law with respect to such securities. No shares of Common Stock may be issued hereunder if the issuance of such shares of Common Stock would constitute a violation of any applicable U.S. federal or state securities laws or other laws or regulations or the requirements of any stock exchange or market system upon which the Common Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Companys legal counsel to be necessary to the lawful issuance of any shares of Common Stock subject to the Award shall relieve the Company of any liability in respect of the failure to issue such shares of Common Stock as to which such requisite authority shall not have been obtained. As a condition to the settlement of the Award, the Company may require you to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any
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applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. Further, regardless of whether the transfer or issuance of the shares of Common Stock to be issued pursuant to the Units has been registered under the Securities Act or has been registered or qualified under the securities laws of any State, the Company may impose additional restrictions upon the sale, pledge, or other transfer of the shares of Common Stock (including the placement of appropriate legends on stock certificates and the issuance of stop-transfer instructions to the Companys transfer agent) if, in the judgment of the Company and the Companys counsel, such restrictions are necessary in order to achieve compliance with the provisions of the Securities Act, the securities laws of any State, or any other law.
8. TRANSFER RESTRICTIONS. Prior to the time that the shares of Common Stock subject to your Award have been delivered to you, you may not transfer, pledge, sell or otherwise dispose of such shares of Common Stock or of the RSUs. For example, you may not use shares of Common Stock that may be issued in respect of your RSUs as security for a loan, nor may you transfer, pledge, sell or otherwise dispose of such shares of Common Stock. This restriction on transfer will lapse upon delivery to you of shares of Common Stock in respect of your vested RSUs. Your Award is not transferable, except by will or by the laws of descent and distribution. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to receive any distribution of shares of Common Stock in respect of vested RSUs pursuant to this Agreement.
9. AWARD NOT A SERVICE CONTRACT. Your Award is not an employment or service contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation on your part to continue in the service of the Company or any Affiliate, or on the part of the Company or any Affiliate to continue such service. In addition, nothing in your Award shall obligate the Company or any Affiliate, their respective shareholders, boards of directors or employees to continue any relationship that you might have as an Employee or Consultant of the Company or any Affiliate.
10. UNSECURED OBLIGATION. Your Award is unfunded, and even as a holder of vested RSUs, you shall be considered an unsecured creditor of the Company with respect to the Companys obligation, if any, to issue shares of Common Stock pursuant to this Agreement. Nothing contained in this Award Agreement, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.
11. WITHHOLDING OF TAXES. At the time the Grant Notice is executed, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for, any sums required to satisfy the U.S. federal, state, and local taxes required by law to be withheld with respect to any taxable event arising as a result of your participation in the Plan (referred to herein as Tax-Related Items). The Company or any Affiliate, as appropriate, shall have the authority and the right to deduct or withhold,
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or require you to remit an amount sufficient to satisfy applicable Tax-Related Items or to take such other action as may be reasonably necessary to satisfy such Tax-Related Items. In this regard, you authorize the Company and any Affiliate, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:
(a) withholding from your wages or other cash compensation paid to you; or
(b) withholding from proceeds of the sale of shares of Common Stock acquired upon vesting and settlement of the Units, either through a voluntary sale or through a mandatory sale arranged by the Company (on your behalf pursuant to this authorization); or
(c) withholding in shares of Common Stock to be issued upon vesting and settlement of the Units; or
(d) direct payment from you.
The Company does not have any duty or obligation to minimize your liability for Tax-Related Items arising from the Award, and, will not be liable to you for any Tax-Related Items arising in connection with the Award. Finally, you shall pay any amount of Tax-Related Items that the Company or any Affiliate may be required to withhold as a result of his or her participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares of Common Stock that may be issued in connection with the settlement of the Units if you fail to comply with your Tax-Related Items obligations.
You represent, warrant and acknowledge that the Company has made no warranties or representations to you with respect to the income tax consequences of the transactions contemplated by this Award Agreement, and you are in no manner relying on the Company or the Companys representatives for an assessment of such tax consequences. YOU UNDERSTAND THAT THE TAX LAWS AND REGULATION ARE SUBJECT TO CHANGE. YOU SHOULD CONSULT YOUR OWN TAX ADVISOR REGARDING THE UNITS. NOTHING STATED HEREIN IS INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES.
12. NOTICES. Any notices provided for in your Award or the Plan shall be given in writing or shall be delivered electronically, and shall be deemed effectively given or delivered upon receipt or, in the case of notices delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.
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13. MISCELLANEOUS.
(a) The rights and obligations of the Company with respect to your Award shall be transferable to any one or more persons or entities, and all covenants and agreements hereunder shall inure to the benefit of, and be enforceable by the Companys successors and assigns.
(b) You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your Award.
(c) All obligations of the Company under the Plan and this Agreement will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.
(d) You agree that the Company does not have any duty or obligation to minimize your liability for tax withholding obligations arising from the Award and will not be liable to you for any tax withholding obligations arising in connection with the Award.
14. HEADINGS. The headings of the Sections in this Agreement are inserted for convenience only and shall not be deemed to constitute a part of this Agreement or to affect the meaning of this Award Agreement.
15. SEVERABILITY. If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.
16. COMPLIANCE WITH CODE SECTION 409A.
(a) It is intended that the RSUs granted hereunder be exempt from or comply with the requirements of Code Section 409A, so that none of the RSUs, or the resulting shares of Common Stock or compensation, if any, shall be subject to the additional tax imposed by Section 409A. The vesting and settlement of such RSUs are intended to qualify for the short-term deferral exemption from Code Section 409A. Each installment of RSUs that vests is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). As such, each eligible vested RSU shall be settled, per the terms of the Plan, the Grant Notice and this Award Agreement, within the short-term deferral period, as defined in Code Section 409A, the
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applicable Treasury Regulations and related guidance issued thereunder. Notwithstanding any other provision of the Plan, this Award Agreement, the Grant Notice or the Plan:
(i) The Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Code Section 409A and any Department of Treasury regulations and other applicable guidance issued thereunder (including any regulations or guidance that may be issued after the date hereof), and any ambiguities herein shall be interpreted to so comply.
(ii) The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan and/or this Award Agreement to ensure that the RSUs qualify for exemption from, comply with or otherwise avoid the imposition of any additional tax or income recognition under Code Section 409A; provided, however, that the Company makes no representations that the RSUs will be exempt from Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the RSUs.
(b) Separation from Service; Required Delay in Payment to Specified Employee. Notwithstanding anything set forth herein to the contrary, no amount payable pursuant to this Agreement on account of your termination of Service which constitutes a deferral of compensation within the meaning of Code Section 409A shall be paid unless and until you have incurred a separation from service within the meaning of Code Section 409A. Furthermore, to the extent that you are a Specified Employee within the meaning of Code Section 409A as of the date of your separation from service, no amount that constitutes a deferral of compensation which is payable on account of the your separation from service that would result in the imposition of additional tax under Code Section 409A if issued to you on or within the six (6) month period following your termination of an employment shall be paid to you before the date which is the first day of the seventh month after the date of your separation from service or, if earlier, ten (10) days following the date of your death following such separation from service. All such amounts that would, but for this Section, become payable prior to a delayed payment date will be accumulated and paid on the delayed payment date.
17. RESTRICTIONS ON CONTRACTS AND PAYMENTS FOR INSURED DEPOSITORY INSTITUTIONS IN TROUBLED STATUS. The parties acknowledge and agree that while the restrictions contained in the Federal Deposit Insurance Act, Section 18(k) [12 U.S.C. §1828(k)], relating to contracts for and payment of executive compensation and benefits by insured depository institutions in troubled condition, do not currently apply to the Company or you, such provisions could apply in the future. In the event that any such restrictions or any contractual arrangement with or required by a regulatory authority require the Company to seek or demand repayment or return of any payments made to you under this Award Agreement and the Plan for any reason, you agree to repay to the Company the aggregate amount of such payments no later than thirty (30) days following your receipt of a written notice from the Company indicating that payments received by you under this Award Agreement and the Plan are subject to recapture or clawback.
18. AUTHORIZATION TO RELEASE NECESSARY PERSONAL INFORMATION. You hereby authorize and direct the Company to collect, use and transfer in electronic or other form, any personal information (the Data), the nature and amount of your
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compensation and the fact and conditions of your participation in the Plan (including, but not limited to, your name, home address, telephone number, date of birth, social security number, salary, job title, number of shares held and the details of all Units or any other entitlement to shares awarded, cancelled, exercised, vested, unvested or outstanding) for the purpose of implementing, administering and managing your participation in the Plan. You understand that the Data may be transferred to the Company or any Affiliate, or to any third parties assisting in the implementation, administration and management of the Plan, including any requisite transfer to a brokerage firm or other third party assisting with administration of the Award or with whom shares acquired upon settlement of this Award or cash from the sale of such shares may be deposited. Furthermore, you acknowledge and understands that the transfer of the Data to the Company or any Affiliate, or to any third parties is necessary for your participation in the Plan. You may at any time withdraw the consents herein, by contacting the Companys stock administration department in writing. You further acknowledge that withdrawal of consent may affect your ability to realize benefits from the Award, and your ability to participate in the Plan.
19. COUNTERPARTS. The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
20. ADMINISTRATION. The Committee shall have the power to interpret the Plan and this Award Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee or the Board in good faith shall be final and binding upon you, the Company and all other interested persons. No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Award Agreement or the Units.
21. GOVERNING LAW. The interpretation, performance and enforcement of this Award Agreement shall be governed by the laws of the State of California, U.S.A. without regard to the conflict-of-laws rules thereof or of any other jurisdiction.
22. GOVERNING PLAN DOCUMENT. Grant Notice, this Award Agreement, and the Units evidenced hereby (i) are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan, the provisions of which are hereby made a part of your Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan, and (ii) constitute the entire agreement between you and the Company on the subject matter hereof and supersede all proposals, written or oral, and all other communications between the parties related to the subject matter. In the event of any conflict between the provisions of your Award and those of the Plan, the provisions of the Plan shall control.
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EXHIBIT 99.3
TRICO BANCSHARES
PERFORMANCE AWARD GRANT NOTICE
TriCo Bancshares, a California corporation (the Company), pursuant to its 2019 Equity Incentive Plan (the Plan), hereby grants to the holder listed below (the Participant or you), a Performance Award (the Award). Such award shall be comprised of Performance Share Units (the Units or PSUs), each of which is a right to receive the value of one (1) share of Common Stock, on the terms and conditions set forth herein and in the Performance Award Agreement attached hereto (the Award Agreement) and the Plan, which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Award Agreement.
Participant: | ||
Grant Date: | ||
Target Number of Units: | , subject to adjustment as provided by the Award Agreement. | |
Maximum Number of Units: | # which is 150% of the Target Number of Units, subject to adjustment as provided by the Award Agreement. | |
Performance Period: | Three years beginning and ending , subject to Sections 7.1 and 7.2 of the Award Agreement. | |
Performance Measure: | The difference, measured in percentage points, for the Performance Period between the Company Total Shareholder Return and the Benchmark Index Total Return, both determined in accordance with Section 2.2 of the Award Agreement. | |
Benchmark Index: | The KBW Regional Banking Index (Ticker Symbol ^KRX) | |
Relative Return Factor: | A percentage (rounded to the nearest 1/10th of 1% and not greater than 150% or less than 0%) equal to the sum of 100% plus the product of 2 multiplied by the difference (whether positive or negative) equal to (i) the Company Total Shareholder Return minus (ii) the Benchmark Index Total Return, as illustrated by Appendix A. | |
Vesting Date: | The Vesting Date is the date upon which the Committee officially determines the degree of achievement of the Performance Measure in accordance with Section 2.2 of the Award Agreement. The Vesting Date shall occur within 45 days following the final date of the Performance Period, except as otherwise provided by the Award Agreement. | |
Vested Units: | Provided that there has been no Termination of Employment of Participant prior to the Vesting Date (except as otherwise provided by the Award Agreement), the number of Vested |
Units, if any (not to exceed the Maximum Number of Units), shall equal the product of (i) the Target Number of Units and (ii) the Relative Return Factor (rounded down to the nearest whole share), as illustrated by Appendix A. | ||
Settlement Date: | For each Vested Unit, except as otherwise provided by the Award Agreement, a date occurring during the 30 day period following the Vesting Date, which date during such period shall be solely determined by the Company. |
By his or her signature below or by electronic acceptance or authentication in a form authorized by the Company, the Participant agrees to be bound by the terms and conditions of the Plan, the Award Agreement and the Grant Notice. The Participant has reviewed and fully understands all provisions of the Plan, the Award Agreement, and the Grant Notice in their entirety and has had an opportunity to obtain the advice of counsel prior to executing below. The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, the Award Agreement, the Grant Notice or relating to the Units.
TRICO BANCSHARES | PARTICIPANT | |||||||
By: |
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By: |
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Name: Name: |
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Print Name: |
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Title: |
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Address: | 63 Constitution Drive | Address: |
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Chico, CA 95973 |
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ATTACHMENTS: | TriCo Bancshares 2019 Equity Incentive Plan, as amended; Performance Award Agreement. The prospectus for the Plan prepared in connection with the registration with the Securities and Exchange Commission of the shares of Common Stock issuable pursuant to the Award is available in the Human Resources section of the Companys intranet. |
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TRICO BANCSHARES
PERFORMANCE AWARD AGREEMENT
TriCo Bancshares (the Company) has granted to the Participant named in the Performance Award Grant Notice (the Grant Notice), to which this Performance Award Agreement (this Award Agreement) is attached, an Award consisting of Performance Share Units (the Units or PSUs) subject to the terms and conditions set forth in the Grant Notice and this Award Agreement. This Award has been granted pursuant to the TriCo Bancshares 2019 Equity Incentive Plan (the Plan), as amended, the provisions of which are incorporated herein by reference. Participant hereby understands that the shares of Common Stock issued with respect to the Award is subject to minimum holding requirements described in Section 10(f) of the Plan.
Unless otherwise defined herein or in the Grant Notice, capitalized terms shall have the meanings assigned under the Plan.
1. THE AWARD.
The Company hereby awards to the Participant the Target Number of Units set forth in the Grant Notice, which, depending on the extent to which a Performance Goal (as described by Plan) is attained during the Performance Period, may result in the Participant earning as little as zero (0) Units or as many as the Maximum Number of Units. Subject to the terms of this Award Agreement and the Plan, each Unit, to the extent it is earned and becomes a Vested Unit, represents a right to receive on the Settlement Date one (1) share of Stock or, at the discretion of the Committee, the Fair Market Value thereof in cash. Unless and until a Unit has vested and become a Vested Unit as set forth in the Grant Notice, the Participant will have no right to settlement of such Units (including any rights with respect dividends payable with respect to the underlying shares of Common Stock). Prior to settlement of any earned and vested Units, such Units will represent an unfunded and unsecured obligation of the Company.
2. PERFORMANCE MEASUREMENT.
2.1 Level of Performance Measure Attained. As soon as practicable following completion of the Performance Period, but in any event no later than the Vesting Date, the Committee shall certify in writing the level of attainment of the Performance Measure during the Performance Period, the resulting Relative Return Factor and the number of Units which have become Vested Units.
2.2 Components of Performance Measure. The components of Performance Measure shall be determined for the Performance Period in accordance with the following:
(a) Company Total Shareholder Return means the percentage point increase or decrease in (i) the Average Per Share Closing Price for the 30 trading day period ending on the last day of the Performance Period over (ii) the Average Per Share Closing Price for the 30 trading day period ending on the first day of the Performance Period.
(b) Average Per Share Closing Price means the average of the daily closing prices per share of Common Stock as reported on the Nasdaq Stock Market (or such other market on which shares of Common Stock are traded) for all trading days falling within an applicable 30 trading day period described in (a) above. The Average Per Share Closing Price shall be adjusted in each case to reflect an assumed reinvestment, as of the of applicable ex-dividend date, of all cash dividends and other cash distributions (excluding cash distributions resulting from share repurchases or redemptions by the Company) paid to shareholders during the 30 trading day period ending on the first day of the Performance Period and during the Performance Period.
(c) Benchmark Index Total Return means the percentage point increase or decrease in (i) the Average Closing Index Value for the 30 trading day period ending on the last day of the Performance Period over (ii) the Average Closing Index Value for the 30 trading day period ending on the first day of the Performance Period.
(d) Average Closing Index Value means the average of the daily closing index values of the Benchmark Index for all trading days falling within an applicable 30 trading day period described in (c) above.
3. VESTING.
3.1 Normal Vesting. Except as otherwise provided by this Award Agreement, Units shall vest and become Vested Units as provided in the Grant Notice.
3.2 Vesting Upon a Change in Control. In the event of a Change in Control, vesting shall be determined in accordance with Section 7.1.
3.3 Vesting Upon Involuntary Termination Following a Change in Control. In the event that upon or within twelve (12) months following the effective date of a Change in Control, the Participants employment terminates due to Involuntary Termination, then vesting shall be determined in accordance with Section 7.2.
3.4 No Vesting on Termination of Employment. In the event that a Participants employment with the Company terminates for any reason prior to the Vesting Date, with or without Cause, other than as described in Section 3.2 or 3.3, the Participant shall forfeit and the Company shall automatically reacquire all Units which are not, as of the time of such termination, Vested Units, and the Participant shall not be entitled to any payment therefor.
3.5 Definitions. The following terms shall have the meanings set forth below:
(a) Termination of Employment means that the Participants employment with the Company is terminated and the Participant actually separates from service with the Company and does not continue in his or her prior capacity. Termination of Employment does not include the Participants military leave, sick leave or other bona fide leave of absence (such as temporary employment with the government) if the period of leave does not exceed six months, or if longer, so long as his right to reemployment with the Company is provided either in contract or by statute. Notwithstanding the foregoing, Participants
employment shall be deemed to have terminated, and Participant shall have suffered an Employment Termination, when the Parties reasonably anticipate that Participant will have a permanent reduction in the level of bona fide services provided to the Company, to a level of service that is less than fifty percent (50%) of the average level of bona fide services provided by Participant to the Company in the immediately preceding thirty-six (36) month period. Notwithstanding anything to the contrary, the term Termination of Employment shall be construed in accordance with Code Section 409A, together with regulations and guidance promulgated thereunder, as amended from time to time.
(b) Involuntary Termination means that a Participants employment is terminated by the Company without Cause or by the Participant for Good Reason.
(c) Termination of Employment for Cause means Termination of Employment of the Participant by reason of any of the following:
(i) A termination for cause, as such term may be defined in any written employment agreement entered into by and between the Company and the Participant;
(ii) A material breach of the Participants written employment agreement entered into by and between the Company and the Participant;
(iii) A material violation of any written policies or procedures of Company;
(iv) A breach of duty of loyalty to the Company;
(v) The Participant engages in any activity that brings disrepute or discredit on Company;
(vi) The Participant commits any act which is unlawful or materially detrimental to the business and affairs of Company;
(vii) The Participant commits any act of fraud, theft or embezzlement or other abuse of the property, information or funds of Company; or
(viii) The Participant is convicted of any felony or a crime involving deceit, moral turpitude or fraud.
(d) The Participants Termination of Employment for Good Reason means Participant experiences any of the following:
(i) a material diminution in the Participants base compensation;
(ii) a material diminution in the Participants authority, duties, or responsibilities;
(iii) a material change (of at least 50 miles) in geographic location at which the Participant must perform the services; or
(iv) any other action or inaction that constitutes a material breach of the terms of an applicable employment agreement.
If Participant wishes to resign for Good Reason, (A) the Participant must provide the Company with a written notice describing the event which is giving rise to such right, which notice must be delivered to the Company no later than 60 days following the first occurrence of such event; (B) the Company must fail to cure such condition within 30 days of receipt of such notice and (C) Participant must resign within 30 days of the expiration of such cure period.
4. SETTLEMENT OF THE AWARD.
4.1 Issuance of Shares of Common Stock or Cash Equivalent. Subject to the provisions of Section 4.3 and Section 5 below, the Company shall issue to the Participant on the Settlement Date with respect to each Vested Unit to be settled on such date one (1) share of Common Stock. Shares of Common Stock issued in settlement of Vested Units shall not be subject to any restriction on transfer other than any such restriction as may be required pursuant to Section 4.3 or provided for in Section 10(f) of the Plan. At the discretion of the Committee, payment with respect to all or any portion of the Vested Units may be made in a lump sum cash payment in an amount equal to the Fair Market Value, determined as of the Settlement Date, of the shares of Common Stock or other securities or property otherwise issuable in settlement of such Vested Units.
4.2 Beneficial Ownership of Shares; Certificate Registration. The Participant hereby authorizes the Company, in its sole discretion, to deposit for the benefit of the Participant with a Company-designated brokerage firm or, at the Companys discretion, any other broker with which the Participant has an account relationship of which the Company has notice any or all shares of Common Stock acquired by the Participant pursuant to the settlement of the Award. Except as provided by the preceding sentence, a certificate for the shares of Common Stock as to which the Award is settled shall be registered in the name of the Participant, or, if applicable, in the names of the Participants heirs.
4.3 Restrictions on Grant of the Award and Issuance of Shares. The grant of the Award and issuance of shares of Common Stock upon settlement of the Award shall be subject to compliance with all applicable requirements of U.S. federal or state law with respect to such securities. No shares of Common Stock may be issued hereunder if the issuance of such shares of Common Stock would constitute a violation of any applicable U.S. federal or state securities laws or other laws or regulations or the requirements of any stock exchange or market system upon which the Common Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Companys legal counsel to be necessary to the lawful issuance of any shares of Common Stock
subject to the Award shall relieve the Company of any liability in respect of the failure to issue such shares of Common Stock as to which such requisite authority shall not have been obtained. As a condition to the settlement of the Award, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. Further, regardless of whether the transfer or issuance of the shares of Common Stock to be issued pursuant to the Units has been registered under the Securities Act or has been registered or qualified under the securities laws of any State, the Company may impose additional restrictions upon the sale, pledge, or other transfer of the shares of Common Stock (including the placement of appropriate legends on stock certificates and the issuance of stop-transfer instructions to the Companys transfer agent) if, in the judgment of the Company and the Companys counsel, such restrictions are necessary in order to achieve compliance with the provisions of the Securities Act, the securities laws of any State, or any other law.
4.4 Fractional Shares. The Company shall not be required to issue fractional shares of Common Stock upon the settlement of the Award.
5. TAX WITHHOLDING AND ADVICE.
5.1 In General. Subject to Section 5.2, at the time the Grant Notice is executed, or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the U.S. federal, state, and local taxes required by law to be withheld with respect to any taxable event arising as a result of the Participants participation in the Plan (referred to herein as Tax-Related Items).
5.2 Withholding of Taxes. The Company or any Affiliate, as appropriate, shall have the authority and the right to deduct or withhold, or require the Participant to remit an amount sufficient to satisfy applicable Tax-Related Items or to take such other action as may be reasonably necessary to satisfy such Tax-Related Items. In this regard, the Participant authorizes the Company and any Affiliate, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:
(a) withholding from the Participants wages or other cash compensation paid to the Participant; or
(b) withholding from proceeds of the sale of shares of Common Stock acquired upon vesting and settlement of the Units, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participants behalf pursuant to this authorization); or
(c) withholding in shares of Common Stock to be issued upon vesting and settlement of the Units; or
(d) direct payment from the Participant.
The Company does not have any duty or obligation to minimize the Participants liability for Tax-Related Items arising from the Award, and, will not be liable to the Participant for any Tax-Related Items arising in connection with the Award. Finally, the Participant shall pay any amount of Tax-Related Items that the Company or any Affiliate may be required to withhold as a result of his or her participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares of Common Stock that may be issued in connection with the settlement of the Units if the Participant fails to comply with his or her Tax-Related Items obligations.
5.3 Tax Advice. The Participant represents, warrants and acknowledges that the Company has made no warranties or representations to the Participant with respect to the income tax consequences of the transactions contemplated by this Award Agreement, and the Participant is in no manner relying on the Company or the Companys representatives for an assessment of such tax consequences. THE PARTICIPANT UNDERSTANDS THAT THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE PARTICIPANT SHOULD CONSULT HIS OR HER OWN TAX ADVISOR REGARDING THE UNITS. NOTHING STATED HEREIN IS INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES.
6. AUTHORIZATION TO RELEASE NECESSARY PERSONAL INFORMATION.
The Participant hereby authorizes and directs the Participants employer to collect, use and transfer in electronic or other form, any personal information (the Data), the nature and amount of the Participants compensation and the fact and conditions of the Participants participation in the Plan (including, but not limited to, the Participants name, home address, telephone number, date of birth, social security number, salary, job title, number of shares of Common Stock held and the details of all Units or any other entitlement to shares of Common Stock awarded, cancelled, exercised, vested, unvested or outstanding) for the purpose of implementing, administering and managing the Participants participation in the Plan. The Participant understands that the Data may be transferred to the Company or any Affiliate, or to any third parties assisting in the implementation, administration and management of the Plan, including any requisite transfer to a brokerage firm or other third party assisting with administration of the Award or with whom shares of Common Stock acquired upon settlement of this Award or cash from the sale of such shares of Common Stock may be deposited. Furthermore, the Participant acknowledges and understands that the transfer of the Data to the Company or any Affiliate, or to any third parties is necessary for Participants participation in the Plan. The Participant may at any time withdraw the consents herein, by contacting the Companys stock administration department in writing. The Participant further acknowledges that withdrawal of consent may affect the Participants ability to realize benefits from the Award, and the Participants ability to participate in the Plan.
7. CHANGE IN CONTROL.
In the event of a Change in Control, this Section 7 shall determine the treatment of the Units which have not otherwise become Vested Units.
7.1 Effect of Change in Control on Award. In the event of a Change in Control which occurs more than 12 months following the Grant Date, the Performance Period shall end on the day immediately preceding the Change in Control (the Adjusted Performance Period). The number and vesting of Units shall be determined for the Adjusted Performance Period in accordance with the following:
(a) Vested Units. In the Committees determination of the number of Vested Units for the Adjusted Performance Period, the following modifications shall be made to the components of the Relative Return Factor:
(i) The Company Total Shareholder Return shall be determined as provided by Section 2.2, except that the Average Per Share Closing Price for the thirty (30) trading day period ending on the last day of the Adjusted Performance Period shall be replaced with the price per share of Common Stock to be paid to the holder thereof in accordance with the definitive agreement governing the transaction constituting the Change in Control (or, in the absence of such agreement, the closing price per share of Common Stock as reported on the Nasdaq Stock Market for the last trading day of the Adjusted Performance Period), adjusted to reflect an assumed reinvestment, as of the applicable ex-dividend date, of all cash dividends and other cash distributions (excluding cash distributions resulting from share repurchases or redemptions by the Company) paid to shareholders during the Adjusted Performance Period, as illustrated in Section 2.2.
(ii) The Benchmark Index Total Return shall be determined as provided by Section 2.2, except that for the purposes of clause (a) thereof, the Average Closing Index Value shall be determined for the 30 trading day period ending on the last day of the Adjusted Performance Period.
(b) Vested Units. As of the last day of the Adjusted Performance Period and provided that the Participant has not Terminated Employment prior to such date, a portion of the Units determined in accordance with Section 7.1(a) shall become Vested Units (the Accelerated Units), with such portion determined by multiplying the total number of Units by a fraction, the numerator of which equals the number of days contained in the Adjusted Performance Period and the denominator of which equals the number of days contained in the original Performance Period determined without regard to this Section. The Accelerated Units shall be settled in accordance Section 4 immediately prior to the consummation of the Change in Control.
7.2 Involuntary Termination Following Change in Control. If Section 7.1 does not apply, in the event that upon or within twelve (12) months following the effective date of the Change in Control (but no earlier than the twelve month anniversary of the Grant Date), the Participants employment terminates due to Involuntary Termination, the Units determined in accordance with Section 7.1(a) (as if Section 7.1 applied) shall be deemed Vested Units effective as of the date of the Participants Involuntary Termination and shall be settled in accordance with Section 4, treating the date of the Participants Termination of Employment as the Vesting Date, provided that payment for each Vested Unit shall be made in the amount and in the form of the consideration (whether stock, cash, other securities or property or a combination thereof) to
which a holder of a share of Common Stock on the effective date of the Change in Control was entitled (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock).
7.3 Internal Revenue Code Section 280G. Notwithstanding any provision of this Award Agreement to the contrary, in the event that it would be more likely than not that all or a portion of any benefit payment under this Award Agreement, alone or together with any other compensation or benefit payable to Participant, will be a non-deductible expense to the Company by reason of Code Section 280G, the Company shall reduce, but not less that zero, the benefits payable under this Award Agreement or the Plan as necessary to avoid the application of Section 280G.
8. ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE.
The number of Units awarded pursuant to this Award Agreement is subject to adjustment as provided in Section 11(a) of the Plan and otherwise is subject to Section 11(c) of the Plan, to the extent such section does not contradict Section 7 of this Award Agreement. Upon the occurrence of an event described in Plan Section 11(a), any and all new, substituted or additional securities or other property to which a holder of a share issuable in settlement of the Award would be entitled shall be immediately subject to the Award Agreement and included within the meaning of the terms shares of Common Stock for all purposes of the Award. The Participant shall be notified of such adjustments and such adjustments shall be binding upon the Company and the Participant.
9. NO ENTITLEMENT OR CLAIMS FOR COMPENSATION.
9.1 The Participants rights, if any, in respect of or in connection with the Units are derived solely from the discretionary decision of the Company to permit the Participant to participate in the Plan and to benefit from a discretionary Award. By accepting the Units, the Participant expressly acknowledges that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Units or other Awards to the Participant. The Units are not intended to be compensation of a continuing or recurring nature, or part of the Participants normal or expected compensation, and in no way represents any portion of the Participants salary, compensation, or other remuneration for purposes of pension benefits, severance, redundancy, resignation or any other purpose.
9.2 Neither the Plan nor the Units shall be deemed to give the Participant a right to remain an Employee, Director or Consultant of the Company or any Affiliate. The Company reserves the right to terminate the employment of the Participant at any time, with or without cause, and for any reason, subject to applicable laws, the Companys Articles of Incorporation and Bylaws and the Participants written employment agreement (if any), and the Participant shall be deemed irrevocably to have waived any claim to damages or specific performance for breach of contract or dismissal, compensation for loss of office, tort or otherwise with respect to the Plan, this Award, Units or any other outstanding Award that is forfeited and/or is terminated by its terms or to any future Award.
10. RIGHTS AS A SHAREHOLDER.
The Participant shall have no rights as a shareholder with respect to any shares of Common Stock which may be issued in settlement of this Award until the date of the issuance of such share of Common Stock under this Award Agreement (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, Dividend Equivalents, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 8.
11. MISCELLANEOUS PROVISIONS.
11.1 Amendment. The Committee may amend this Award Agreement at any time; provided, however, that no such amendment may adversely affect the Participants rights under this Award Agreement without the consent of the Participant, except to the extent such amendment is necessary to comply with applicable law, including, but not limited to, Code Section 409A. No amendment or addition to this Award Agreement shall be effective unless in writing and signed by the parties to this Award Agreement.
11.2 Nontransferability of the Award. Prior to the issuance of shares of Common Stock on the applicable Settlement Date, no right or interest of the Participant in the Award nor any shares of Common Stock issuable on settlement of the Award shall be in any manner pledged, encumbered, or hypothecated to or in favor of any party other than the Company or shall become subject to any lien, obligation, or liability of such Participant to any other party other than the Company. Except as otherwise provided by the Committee, no Award shall be assigned, transferred or otherwise disposed of other than by will or the laws of descent and distribution. All rights with respect to the Award shall be exercisable during the Participants lifetime only by the Participant or the Participants guardian or legal representative.
11.3 Further Instruments. The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Award Agreement.
11.4 Binding Effect. This Award Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participants heirs, executors, administrators, successors and assigns.
11.5 Notices. Any notice required to be given or delivered to the Company under the terms of this Award Agreement shall be in writing and addressed to the Company at its principal corporate offices. Any notice required to be given or delivered to the Participant shall be in writing and addressed to the Participant at the address maintained for the Participant in the Companys records or at the address of the local office of the Company or Affiliate at which the Participant works.
11.6 Construction of Award Agreement. The Grant Notice, this Award Agreement, and the Units evidenced hereby (i) are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan, the provisions of which are hereby made a part of Participants Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan, and (ii) constitute the entire agreement between the Participant and the Company on the subject matter hereof and supersede all proposals, written or oral, and all other communications between the parties related to the subject matter. In the event of any conflict between the provisions of Participants Award and those of the Plan, the provisions of the Plan shall control. The headings of the Sections in this Award Agreement are inserted for convenience only and shall not be deemed to constitute a part of this Award Agreement or to affect the meaning of this Award Agreement.
11.7 Governing Law. The interpretation, performance and enforcement of this Award Agreement shall be governed by the laws of the State of California, U.S.A. without regard to the conflict-of-laws rules thereof or of any other jurisdiction.
11.8 Section 409A.
(a) Compliance with Code Section 409A. It is intended that the Performance Share Units granted hereunder be exempt from or comply with the requirements of Code Section 409A, so that none of the Units, or the resulting shares of Common Stock or compensation, if any, shall be subject to the additional tax imposed by Section 409A. The vesting and settlement of such Units are intended to qualify for the short-term deferral exemption from Code Section 409A. Each installment of Units that vests is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). As such, each eligible Vested Unit shall be settled, per the terms of the Plan, the Grant Notice and this Award Agreement, within the short-term deferral period, as defined in Code Section 409A, the applicable Treasury Regulations and related guidance issued thereunder. Notwithstanding any other provision of the Plan, this Award Agreement, the Grant Notice or the Plan:
(i) The Plan, this Award Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Code Section 409A and any Department of Treasury regulations and other applicable guidance issued thereunder (including any regulations or guidance that may be issued after the date hereof), and any ambiguities herein shall be interpreted to so comply.
(ii) The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan and/or this Award Agreement to ensure that the Units qualify for exemption from, comply with or otherwise avoid the imposition of any additional tax or income recognition under Code Section 409A; provided, however, that the Company makes no representations that the Units will be exempt from Code Section 409A and makes no undertaking to preclude Code Section 409A from applying to the Units.
(b) Separation from Service; Required Delay in Payment to Specified Employee. Notwithstanding anything set forth herein to the contrary, no amount
payable pursuant to this Award Agreement on account of the Participants Termination of Employment which constitutes a deferral of compensation within the meaning of Code Section 409A shall be paid unless and until the Participant has incurred a separation from service within the meaning of Code Section 409A. Furthermore, to the extent that the Participant is a Specified Employee within the meaning of Code Section 409A as of the date of the Participants separation from service, no amount that constitutes a deferral of compensation which is payable on account of the Participants separation from service that would result in the imposition of additional tax under Code Section 409A if issued to Participant on or within the six (6) month period following Participants termination of an employment shall be paid to the Participant before the date (the Delayed Payment Date) which is the first day of the seventh month after the date of the Participants separation from service or, if earlier, ten (10) days following the date of the Participants death following such separation from service. All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.
11.9 Restrictions on Contracts and Payments for Insured Depository Institutions in Troubled Status. The parties acknowledge and agree that while the restrictions contained in the Federal Deposit Insurance Act, Section 18(k) [12 U.S.C. §1828(k)], relating to contracts for and payment of executive compensation and benefits by insured depository institutions in troubled condition, do not currently apply to the Company or the Participant, such provisions could apply in the future. In the event that any such restrictions or any contractual arrangement with or required by a regulatory authority require the Company to seek or demand repayment or return of any payments made to the Participant under this Award Agreement and the Plan for any reason, the Participant agrees to repay to the Company the aggregate amount of such payments no later than thirty (30) days following the Participants receipt of a written notice from the Company indicating that payments received by the Participant under this Award Agreement and the Plan are subject to recapture or clawback.
11.10 Administration. The Committee shall have the power to interpret the Plan and this Award Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Committee or the Board in good faith shall be final and binding upon the Participant, the Company and all other interested persons. No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Award Agreement or the Units.
11.11 Counterparts. The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
11.12 Severability. If any provision of this Award Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the parties to the extent possible. In any event, all other provisions of this Award Agreement shall be deemed valid and enforceable to the full extent possible.
APPENDIX A
ILLUSTRATION OF RELATIVE RETURN FACTOR AND RESULTING NUMBER OF VESTED UNITS
Percentage Point Difference of Return |
Relative Return Factor |
Vested Units (Per 1,000 Target Units) |
||||||
25 and Over |
150 | % | 1,500 | |||||
20 |
140 | % | 1,400 | |||||
15 |
130 | % | 1,300 | |||||
10 |
120 | % | 1,200 | |||||
9 |
118 | % | 1,180 | |||||
8 |
116 | % | 1,160 | |||||
7 |
114 | % | 1,140 | |||||
6 |
112 | % | 1,120 | |||||
5 |
110 | % | 1,010 | |||||
4 |
108 | % | 1,080 | |||||
3 |
106 | % | 1,060 | |||||
2 |
104 | % | 1,040 | |||||
1 |
102 | % | 1,020 | |||||
0 |
100 | % | 1,000 | |||||
-1 |
98 | % | 980 | |||||
-2 |
96 | % | 960 | |||||
-3 |
94 | % | 940 | |||||
-4 |
92 | % | 920 | |||||
-5 |
90 | % | 900 | |||||
-6 |
88 | % | 880 | |||||
-7 |
86 | % | 860 | |||||
-8 |
84 | % | 840 | |||||
-9 |
82 | % | 820 | |||||
-10 |
80 | % | 800 | |||||
-15 |
70 | % | 700 | |||||
-20 |
60 | % | 600 | |||||
-25 |
50 | % | 500 | |||||
-25 and less |
0 | % | 0 |
APPENDIX A (CONTINUED)
ILLUSTRATIONS OF CALCULATION OF VESTED UNITS
PER 1,000 TARGET UNITS
Company Total Shareholder Return Exceeds Benchmark Index Total Return
Assumptions: |
||||||||
Target Number of Units |
1000 | |||||||
TCBK: |
||||||||
Average Per Share Closing Price (beginning) |
$ | 25.00 | ||||||
Average Per Share Closing Price (ending) |
$ | 30.00 | ||||||
KBW Regional Banking Index: |
||||||||
Average Closing Index Value (beginning) |
$ | 80.00 | ||||||
Average Closing Index Value (ending) |
$ | 90.00 | ||||||
Computations: |
||||||||
Company Total Shareholder Return |
((30.00 / 25.00) - 1) x 100 | 20.0 | % | |||||
Benchmark Index Total Return |
((90.00 / 80.00) - 1) x 100 | 12.5 | % | |||||
Relative Return Factor |
100 + (2.0 x (20.0 12.5)) | 115.0 | % | |||||
Vested Units |
1,000 x 115.0% | 1,150 |
APPENDIX A (CONTINUED)
ILLUSTRATIONS OF CALCULATION OF VESTED UNITS
PER 1,000 TARGET UNITS
Company Total Shareholder Return Is Less Than Benchmark Index Total Return
Assumptions: |
||||||||
Target Number of Units |
1000 | |||||||
TCBK: |
||||||||
Average Per Share Closing Price (beginning) |
$ | 25.00 | ||||||
Average Per Share Closing Price (ending) |
$ | 30.00 | ||||||
KBW Regional Banking Index: |
||||||||
Average Closing Index Value (beginning) |
$ | 80.00 | ||||||
Average Closing Index Value (ending) |
$ | 100.00 | ||||||
Computations: |
||||||||
Company Total Shareholder Return |
((30.00 / 25.00) - 1) x 100 | 20.0 | % | |||||
Benchmark Index Total Return |
((100.00 / 80.00) - 1) x 100 | 25.0 | % | |||||
Relative Return Factor |
100 + (2.0 x (20.0 25.0)) | 90.0 | % | |||||
Vested Units |
1,000 x 90.0% | 900 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 30,502,757 | 30,417,223 |
Common stock, shares outstanding | 30,502,757 | 30,417,223 |
Condensed Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Interest and dividend income: | ||||
Loans, including fees | $ 55,491 | $ 39,304 | $ 109,889 | $ 77,353 |
Investments: | ||||
Taxable securities | 10,457 | 7,438 | 21,012 | 14,760 |
Tax exempt securities | 1,061 | 1,042 | 2,134 | 2,083 |
Dividends | 305 | 298 | 665 | 634 |
Interest bearing cash at Federal Reserve and other banks | 866 | 396 | 1,937 | 769 |
Total interest and dividend income | 68,180 | 48,478 | 135,637 | 95,599 |
Interest expense: | ||||
Deposits | 2,999 | 1,234 | 5,718 | 2,330 |
Other borrowings | 37 | 586 | 50 | 928 |
Junior subordinated debt | 829 | 789 | 1,684 | 1,486 |
Total interest expense | 3,865 | 2,609 | 7,452 | 4,744 |
Net interest income | 64,315 | 45,869 | 128,185 | 90,855 |
Provision for (reversal of) loan losses | 537 | (638) | (1,063) | (874) |
Net interest income after provision for (benefit from reversal of) loan losses | 63,778 | 46,507 | 129,248 | 91,729 |
Noninterest income: | ||||
Service charges and fees | 10,128 | 9,228 | 19,198 | 18,584 |
Gain on sale of loans | 575 | 666 | 987 | 1,292 |
Asset management and commission income | 739 | 810 | 1,381 | 1,686 |
Increase in cash value of life insurance | 746 | 656 | 1,521 | 1,264 |
Other | 1,390 | 814 | 2,355 | 1,638 |
Total noninterest income | 13,578 | 12,174 | 25,442 | 24,464 |
Noninterest expense: | ||||
Salaries and related benefits | 26,719 | 21,453 | 51,847 | 43,105 |
Other | 20,133 | 16,417 | 40,518 | 32,927 |
Total noninterest expense | 46,852 | 37,870 | 92,365 | 76,032 |
Income before provision for income taxes | 30,504 | 20,811 | 62,325 | 40,161 |
Provision for income taxes | 7,443 | 5,782 | 16,538 | 11,222 |
Net income | $ 23,061 | $ 15,029 | $ 45,787 | $ 28,939 |
Earnings per share: | ||||
Basic | $ 0.76 | $ 0.65 | $ 1.50 | $ 1.26 |
Diluted | $ 0.75 | $ 0.65 | $ 1.49 | $ 1.24 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 23,061 | $ 15,029 | $ 45,787 | $ 28,939 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gains (losses) on available for sale securities arising during the period | 6,729 | (3,998) | 15,681 | (15,024) |
Change in minimum pension liability | 80 | 160 | ||
Other comprehensive income (loss) | 6,729 | (3,918) | 15,681 | (14,864) |
Comprehensive income | $ 29,790 | $ 11,111 | $ 61,468 | $ 14,075 |
Condensed Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Retained Earnings [Member] | ||||
Dividends paid, per share | $ 0.19 | $ 0.17 | $ 0.38 | $ 0.34 |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 –Summary of Significant Accounting Policies Description of Business and Basis of Presentation TriCo Bancshares (the “Company” or “we”) is a California corporation organized to act as a bank holding company for Tri Counties Bank (the “Bank”). The Company and the Bank are headquartered in Chico, California. The Bank is a California-chartered bank that is engaged in the general commercial banking business in 29 California counties. The Company has five capital subsidiary business trusts (collectively, the “Capital Trusts”) that issued trust preferred securities, including two organized by the Company and three acquired with the acquisition of North Valley Bancorp. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. All adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. For financial reporting purposes, the Company’s investments in the Capital Trusts of $1,716,000 are accounted for under the equity method and, accordingly, are not consolidated and are included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the Capital Trusts are reflected as debt on the Company’s consolidated balance sheet. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidtated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Annual Report”). The Company believes that the disclosures made are adequate to make the inforamtion not misleading.Segment and Significant Group Concentration of Credit Risk The Company grants agribusiness, commercial, consumer, and residential loans to customers located throughout northern and central California. The Company has a diversified loan portfolio within the business segments located in this geographical area. The Company currently classifies all its operation into one business segment that it denotes as community banking. Geographical Descriptions For the purpose of describing the geographical location of the Company’s operations, the Company has defined northern California as that area of California north of, and including, Stockton to the east and San Jose to the west; central California as that area of the state south of Stockton and San Jose, to and including, Bakersfield to the east and San Luis Obispo to the west; and southern California as that area of the state south of Bakersfield and San Luis Obispo. Cash and Cash Equivalents Net cash flows are reported for loan and deposit transactions and other borrowings. For purposes of the consolidated statement of cash flows, cash, due from banks with original maturities less than 90 days, interest-earning deposits in other banks, and Federal funds sold are considered to be cash equivalents. Accounting Standards Adopted in 2019 The Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) 2016-02, which among other things, requires lessees to recognize most leases on-balance sheet, increasing reported assets and liabilities. Lessor accounting remains substantially similar to current U.S. GAAP. The FASB has issued incremental guidance to Topic 842 standard through ASU No. 2018-11, 2018-20, and 2019-01. The Company has elected to use the transition relief approach as provided in ASU 2018-11, which permits the Company to use January 1, 2019 as both the application date and the adoption date, rather than the modified retrospective approach which would have required an application date of January 1, 2017 and adoption date of January 1, 2019. The Company also elected certain relief options offered within the new standard, which include the package of practical expedients, the option not to recognize a right-of-use asset (ROUA) and lease liability that arise from short-term leases (i.e. leases with terms of 12 months or less), and the option of hindsight when determining lease term. Substantiallyall of the Company’s lease agreements are considered operating leases and were not previously recognized on the Company’s balance sheets. As of January 1, 2019, the Company recorded a ROUA and corresponding lease liability for all applicable operating leases. While the guidance increased the Company’s gross assets and liabilities, the adoption of ASU 2016-02 did not have a material impact on the consolidated statements of income or the consolidated statements of cash flows. See Note 6 for more information.The FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310). 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 was effective for the Company on January 1, 2019, and did not have an impact on the Company’s consolidated financial statements.Accounting Standards Pending Adoption The FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) . ASU 2016-13 is the final guidance on the new current expected credit loss (‘‘CECL’’) model. ASU 2016-13, among other things, requires the incurred loss impairment methodology in current GAAP be replaced with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity (‘‘HTM’’) debt securities. ASU 2016-13 amends the accounting for credit losses on available-for-sale securities (‘‘AFS’’), whereby credit losses will be presented as an allowance as opposed to a write-down. In addition, CECL will modify the accounting for purchased loans with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Lastly, ASU 2016-13 requires enhanced disclosures on the significant estimates and judgments used to estimate credit losses, as well as on the credit quality and underwriting standards of an organization’s portfolio. These disclosures require organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. ASU 2016-13 allows for a modified retrospective approach with a cumulative effect adjustment to the balance sheet upon adoption (charge to retained earnings instead of the income statement). ASU 2016-13 will be effective for the Company on January 1, 2020, and early adoption is permitted. While the Company is currently evaluating the provisions of ASU 2016-13 to determine the potential impact the new standard will have on the Company’s consolidated financial statements, it has taken steps to prepare for the implementation when it becomes effective, such as forming an internal task force, gathering pertinent data, consulting with outside professionals, and evaluating its current IT systems. While detailed modeling efforts are ongoing, the validation of expected credit loss estimates will likely not be available until late in 2019. Management expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the first reporting period in which the new standard is effective, but cannot yet estimate the magnitude of the one-time adjustment or the overall impact of the new guidance on the Company’s financial position, results of operations or cash flows.FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment (Topic 350): 2017-04 eliminates step two of the goodwill impairment test (the hypothetical purchase price allocation used to determine the implied fair value of goodwill) when step one (determining if the carrying value of a reporting unit exceeds its fair value) is failed. Instead, entities simply will compare the fair value of a reporting unit to its carrying amount and record goodwill impairment for the amount by which the reporting unit’s carrying amount exceeds its fair value. ASU 2017-04 will be effective for the Company on January 1, 2020 and is not expected to have a significant impact on the Company’s consolidated financial statements.In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a significant impact on the Company’s consolidated financial statements.In August 2018, the FASB issued ASU No.
2018-14, “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. As ASU 2018-14 only revises disclosure requirements, it will not have a significant impact on the Company’s consolidated financial statements. |
Business Combinations |
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Business Combinations | Note 2 - Business Combinations Merger with FNB Bancorp On July 6, 2018, the Company completed the acquisition of FNB Bancorp (“FNBB”) for an aggregate transaction value of $291,132,000. FNBB was merged into the Company, and the Company issued 7,405,277 shares of common stock to the former shareholders of FNBB. FNBB’s subsidiary, First National Bank of Northern California, merged into the Bank on the same day. The Company also paid $ 6.7 million to settle and retire all FNBB stock options outstanding as of the acquisition date. Upon the consummation of the merger, the Company added 12 branches within San Mateo, San Francisco, and Santa Clara counties. In accordance with accounting for business combinations, the Company recorded $156,661,000 of goodwill and $27,605,000 of core deposit intangibles on the acquisition date. The core deposit intangibles will be amortized over the weighted average remaining life of 6.2 years with no significant residual value. For tax purposes, purchase price accounting adjustments including goodwill are all non-taxable and /or non-deductible. Acquisition related costs of $601,000 and $1,077,000 are included in the consolidated statements of income for the three and six months ended June 30, 2018. There have been no acquisition costs incurred during the six months ended June 30, 2019. The acquisition was consistent with the Company’s strategy to expand into the Bay Area market. The acquisition offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded region. Goodwill arising from the acquisition consisted largely of the estimated cost savings resulting from the combined operations. The following table summarizes the consideration paid for FNBB and the amounts of assets acquired and liabilities assumed that were recorded at the acquisition date (in thousands).
A summary of the estimated fair value adjustments resulting in the goodwill recorded in the FNB Bancorp acquisition are presented below (in thousands):
The fair value of net assets acquired includes fair value adjustments to certain loans that were not considered impaired (PNCI loans) as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. As such, these loans were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans (PCI loans), which have shown evidence of credit deterioration since origination. The gross contractual amounts receivable and fair value for PNCI loans as of the acquisition date was $866,189,000 and $833,381,000, respectively. The gross contractual amounts receivable and fair value for PCI loans as of the acquisition date was $1,683,000 and $1,302,000, respectively. At the acquisition date, the Company was unable to estimate the expected contractual cash flows to be collected from the purchased credit impaired loans. |
Investment Securities |
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Investments Schedule [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Note 3 - Investment Securities The amortized cost and estimated fair values of investments in debt securities are summarized in the following tables:
There were no sales of investment securities during the six months ended June 30, 2019 and 2018. Investment securities with an aggregate carrying value of $569,296,000 and $597,591,000 at June 30, 2019 and December 31, 2018, respectively, were pledged as collateral for specific borrowings, lines of credit or local agency deposits. The amortized cost and estimated fair value of debt securities at June 30, 2019 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At June 30, 2019, obligations of U.S. government corporations and agencies with a cost basis totaling $1,026,710,000 consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by U.S. government corporations and agencies is categorized based on final maturity date. At June 30, 2019, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 5.1 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half.
Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
Obligations of U.S. government agencies: Unrealized losses on investments in obligations of U.S. government agencies are caused by interest rate increases. The contractual cash flows of these securities are guaranteed by U.S. Government Sponsored Entities (principally Fannie Mae and Freddie Mac). It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At June 30, 2019, 46 debt securities representing obligations of U.S. government agencies had unrealized losses with aggregate depreciation of (1.0%) from the Company’s amortized cost basis. Obligations of states and political subdivisions: The unrealized losses on investments in obligations of states and political subdivisions were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At June 30, 2019, 13 debt securities representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of (2.0%) from the Company’s amortized cost basis. Asset backed securities: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors in these types of securities. At the time of purchase, each of these securities was rated AA or AAA and through June 30, 2019 has not experienced any deterioration in credit rating. The Company continues to monitor these securities for changes in credit rating or other indications of credit deterioration. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At June 30, 2019, 28 asset backed securities had unrealized losses with aggregate depreciation of (1.3%) from the Company’s amortized cost basis. Marketable equity securities: All unrealized losses recognized during the reporting period were for equity securities still held at June 30, 2019. |
Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Note 4 – Loans A summary of loan balances follows (in thousands):
The following is a summary of the change in accretable yield for PCI during the periods indicated (in thousands):
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Allowance for Loan Losses |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses | Note 5 – Allowance for Loan Losses The following tables summarize the activity in the allowance for loan losses, and ending balance of loans, net of unearned fees for the periods indicated.
As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including, but not limited to, trends relating to (i) the level of criticized and classified loans, (ii) net charge-offs, (iii) non-performing loans, and (iv) delinquency within the portfolio.The Company utilizes a risk grading system to assign a risk grade to each of its loans. Loans are graded on a scale ranging from Pass to Loss. A description of the general characteristics of the risk grades is as follows:
The following tables present ending loan balances by loan category and risk grade for the periods indicated:
Consumer loans, whether unsecured or secured by real estate, automobiles, or other personal property, are susceptible to three primary risks; non-payment due to income loss, over-extension of credit and, when the borrower is unable to pay, shortfall in collateral value. Typically, payment performance will follow general economic trends in the marketplace driven primarily by rises in the unemployment rate; non-payment is likely due to loss of employment. Loss of collateral value can be due to market demand shifts, damage to collateral itself or a combination of the two. Problem consumer loans are generally identified by payment history and current performance of the borrower (delinquency). The Bank manages its consumer loan portfolios by monitoring delinquency and contacting borrowers to encourage repayment, suggesting modifications if appropriate, and, when continued scheduled payments become unrealistic, initiating repossession or foreclosure through appropriate channels.Commercial real estate loans generally fall into two categories, owner-occupied and non-owner occupied. Loans secured by owner occupied real estate are primarily susceptible to changes in the business conditions of the related business. This may be driven by, among other things, industry changes, geographic business changes, changes in the individual fortunes of the business owner, and general economic conditions and changes in business cycles. These same risks apply to commercial loans whether secured by equipment or other personal property or unsecured. Losses on loans secured by owner occupied real estate, equipment, or other personal property generally are dictated by the value of underlying collateral at the time of default and liquidation of the collateral. When default is driven by issues related specifically to the business owner, collateral values tend to provide better repayment support and may result in little or no loss. Alternatively, when default is driven by more general economic conditions, underlying collateral generally has devalued more and results in larger losses due to default. Loans secured by non-owner occupied real estate are primarily susceptible to risks associated with swings in occupancy or vacancy and related shifts in lease rates, rental rates or room rates. Most often these shifts are a result of changes in general economic or market conditions or overbuilding and resultant over-supply. Losses are dependent on value of underlying collateral at the time of default. Values are generally driven by these same factors and influenced by interest rates and required rates of return as well as changes in occupancy costs.Construction loans, whether owner occupied or non-owner occupied commercial real estate loans or residential development loans, are not only susceptible to the related risks described above but the added risks of construction itself including cost over-runs, mismanagement of the project, or lack of demand or market changes experienced at time of completion. Again, losses are primarily related to underlying collateral value and changes therein as described above.Problem commercial loans are generally identified by periodic review of financial information which may include financial statements, tax returns, rent rolls and payment history of the borrower (delinquency). Based on this information the Bank may decide to take any of several courses of action including demand for repayment, additional collateral or guarantors, and, when repayment becomes unlikely through borrower’s income and cash flow, repossession or foreclosure of the underlying collateral. Collateral values may be determined by appraisals obtained through Bank approved, licensed appraisers, qualified independent third parties, public value information (blue book values for autos), sales invoices, or other appropriate means. Appropriate valuations or revaluations are obtained at initiation of the credit and periodically, but not less than every twelve months depending on collateral type, once repayment is questionable and the loan has been classified. Once a loan becomes delinquent and repayment becomes questionable, a Bank collection officer will address collateral shortfalls with the borrower and attempt to obtain additional collateral. If this is not forthcoming and payment in full is unlikely, the Bank will estimate its probable loss, using a recent valuation as appropriate to the underlying collateral less estimated costs of sale, and charge the loan down to the estimated net realizable amount. Depending on the length of time until ultimate collection, the Bank may revalue the underlying collateral and take additional charge-offs as warranted. Revaluations may occur as often as every 3-12 months depending on the underlying collateral and volatility of values. Final charge-offs or recoveries are taken when collateral is liquidated and actual loss is known. Unpaid balances on loans after or during collection and liquidation may also be pursued through lawsuit and attachment of wages or judgment liens on borrower’s other assets.The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:
The following table shows the ending balance of current and past due PNCI loans by loan category as of the date indicated:
The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:
The following table shows the ending balance of current and past due PNCI loans by loan category as of the date indicated:
Interest income on originated nonaccrual loans that would have been recognized during the three months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $289,000 and $341,000, respectively. Interest income actually recognized on these originated loans during the three months ended June 30, 2019 and 2018 was $53,000 and $53,000, respectively. Interest income on PNCI nonaccrual loans that would have been recognized during the three months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $160,000 and $26,000, respectively. Interest income actually recognized on these PNCI loans during the three months ended June 30, 2019 and 2018 was $111,000 and $12,000. Interest income on originated nonaccrual loans that would have been recognized during the six months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $568,000 and $626,000, respectively. Interest income actually recognized on these originated loans during the six months ended June 30, 2019 and 2018 was $86,000 and $75,000, respectively. Interest income on PNCI nonaccrual loans that would have been recognized during the six months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $281,000 and $54,000, respectively. Interest income actually recognized on these PNCI loans during the six months ended June 30, 2019 and 2018 was $171,000 and $11,000. The following table shows the ending balance of nonaccrual originated
and PNCI loans by loan category as of the date indicated:
Impaired originated loans are those where management has concluded that it is probable that the borrower will be unable to pay all amounts due in accordance with the original contractual terms of the loan agreement. The following tables show the recorded investment (financial statement balance), unpaid principal balance, average recorded investment, and interest income recognized for impaired Originated and PNCI loans, segregated by those with no related allowance recorded and those with an allowance recorded for the periods indicated. The average recorded investment in impaired loans and interest income recognized on impaired loans during the three months ended June 30, 2019 and 2018 was not considered significant for financial reporting purposes.
Originated loans classified as TDRs and impaired were $10,998,000, $10,253,000, and $9,450,000 at June 30, 2019, December 31, 2018, and June 30, 2018, respectively. PNCI loans classified as TDRs and impaired were $811,000, $615,000, and $1,459,000 at June 30, 2019, December 31, 2018 and June 30, 2018, respectively. The Company had no significant obligations to lend additional funds on Originated or PNCI TDRs as of June 30, 2019, December 31, 2018, or June 30, 2018. The following tables show certain information regarding TDRs that occurred during the periods indicated:
Modifications classified as TDRs can include one or a combination of the following: rate modifications, term extensions, interest only modifications, either temporary or long-term, payment modifications, and collateral substitutions/additions. For all new TDRs, an impairment analysis is conducted. If the loan is determined to be collateral dependent, any additional amount of impairment will be calculated based on the difference between estimated collectible value and the current carrying balance of the loan. This difference could result in an increased provision and is typically charged off. If the asset is determined not to be collateral dependent, the impairment is measured on the net present value difference between the expected cash flows of the restructured loan and the cash flows which would have been received under the original terms. The effect of this could result in a requirement for additional provision to the reserve. The effect of these required provisions for the period are indicated above. Typically if a TDR defaults during the period, the loan is then considered collateral dependent and, if it was not already considered collateral dependent, an appropriate provision will be reserved or charge will be taken. The additional provisions required resulting from default of previously modified TDR’s are noted above. Loans that defaulted within the twelve month period subsequent to modification were not considered significant for financial reporting purposes. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Note 6 – Leases The Company adopted ASU 2016-02 “Leases” (Topic 842) as of January 1, 2019, which requires the Company to record a right-of-use asset (“ROUA”) on the consolidated balance sheets for those leases that convey rights to control use of identified assets for a period of time in exchange for consideration. The Company is also required to record a lease liability on the consolidated balance sheets for the present value of future payment commitments. All of the Company’s leases are comprised of operating leases in which the Company is lessee of real estate property for branches, ATM locations, and general administration and operations. The Company elected not to include short-term leases (i.e. leases with initial terms of twelve months or less) within the ROUA and lease liability. Known or determinable adjustments to the required minimum future lease payments were included in the calculation of the Company’s ROUA and lease liability. Adjustments to the required minimum future lease payments that are variable and will not be determinable until a future period, such as changes in the consumer price index, are included as variable lease costs. Additionally, expected variable payments for common area maintenance, taxes and insurance were unknown and not determinable at lease commencement and therefore, were not included in the determination of the Company’s ROUA or lease liability.The value of the ROUA and lease liability is impacted by the amount of the periodic payment required, length of the lease term, and the discount rate used to calculate the present value of the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. The lease liability is reduced based on the discounted present value of remaining payments as of each reporting period. The ROUA value is measured using the amount of lease liability and adjusted for prepaid or accrued lease payments, remaining lease incentives, unamortized direct costs (if any), and impairment (if any). The following table presents the components of lease expense for the three and six months ended June 30, 2019:
Prior to the adoption of ASU 2016-02, rent expense under operating leases was $892,000 and $1,776,000 during the three and six months ended June 30, 2018. Rent expense was offset by rent income of $10,000 and $21,000 during the three and six months ended June 30, 2018.The following table presents supplemental cash flow information related to leases for the six months ended June 30, 2019:
The following table presents the weighted average operating lease term and discount rate at June 30, 2019:
At June 30, 2019, future expected operating lease payments are as follows:
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Deposits |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Note 7 - Deposits A summary of the balances of deposits follows (in thousands):
Certificate of deposit balances of $50,000,000 and $60,000,000 from the State of California were included in time certificates, over $250,000, at June 30, 2019 and December 31, 2018, respectively. The Company participates in a deposit program offered by the State of California whereby the State may make deposits at the Company’s request subject to collateral and credit worthiness constraints. The negotiated rates on these State deposits are generally more favorable than other wholesale funding sources available to the Company. Overdrawn deposit balances of $1,242,000 and $1,469,000 were classified as consumer loans at June 30, 2019 and December 31, 2018, respectively. |
Commitments and Contingencies |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Note 8 - Commitments and Contingencies The following table presents a summary of the Bank’s commitments and contingent liabilities:
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Shareholders' Equity |
6 Months Ended |
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Jun. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Shareholders' Equity | Note 9 – Shareholders’ Equity Dividends Paid The Bank paid to the Company cash dividends in the aggregate amounts of $10,236,000 and $4,770,000 during the three months ended June 30, 2019 and 2018, respectively and $18,350,000 and $9,142,000 during the six months ended June 30, 2019 and 2018, respectively. The Bank is regulated by the Federal Deposit Insurance Corporation (FDIC) and the State of California Department of Business Oversight (DBO). Absent approval from the Commissioner of the DBO, California banking laws generally limit the Bank’s ability to pay dividends to the lesser of (1) retained earnings or (2) net income for the last three fiscal years, less cash distributions paid during such period. Stock Repurchase Plan On August 21, 2007, the Board of Directors adopted a plan to repurchase, as conditions warrant, up to 500,000 shares of the Company’s common stock on the open market. The timing of purchases and the exact number of shares to be purchased will depend on market conditions. This stock repurchase plan has no expiration date. As of June 30, 2019, the Company had repurchased 196,566 shares under this plan. During the six month periods ended June 30, 2019 and 2018, there were no shares of common stock repurchased under this plan. Stock Repurchased Under Equity Compensation Plans During the three months ended June 30, 2019 and 2018, employees tendered 93,755 and 17,086 shares, respectively, of the Company’s common stock with market value of $3,659,000, and $667,000, respectively, in lieu of cash to exercise options to purchase shares of the Company’s stock and to pay income taxes related to equity compensation plan instruments as permitted by the Company’s shareholder-approved equity compensation plans. During the six months ended June 30, 2019 and 2018, employees tendered 119,914 and 17,220 shares, respectively, of the Company’s common stock with market value of $4,695,000, and $671,000, respectively, in lieu of cash to exercise options to purchase shares of the Company’s stock and to pay income taxes related to equity compensation plan instruments as permitted by the Company’s shareholder-approved equity compensation plans. The tendered shares were retired. The market value of tendered shares is the last market trade price at closing on the day an option is exercised. Stock repurchased under equity incentive plans are not included in the total of stock repurchased under the stock repurchase plan announced on August 21, 2007. |
Stock Options and Other Equity-Based Incentive Instruments |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options and Other Equity-Based Incentive Instruments | Note 10 - Stock Options and Other Equity-Based Incentive Instruments The Company’s 2009 Equity Incentive Plan (2009 Plan) expired on March 26, 2019. While no new awards can be granted under the 2009 Plan, existing grants continue to be governed by the terms, conditions and procedures set forth in any applicable award agreement. On April 16, 2019, the Board of Directors adopted the 2019 Equity Incentive Plan (2019 Plan) which was ratified by shareholders on May 21, 2019. The 2019 Plan allows for up to 1,500,000 shares to be issued in connection with equity-based incentives. All grants of equity awards made during the six months ended June 30, 2019 were made from the 2019 Plan. Stock option activity during the six months
ended June 30, 2019 is summarized in the following table:
The following table shows the number, weighted-average exercise price, intrinsic value, and weighted average remaining contractual life of options exercisable, options not yet exercisable and total options outstanding as of June 30, 2019:
The 750 options that are currently not exercisable as of June 30, 2019 are expected to vest, on a weighted-average basis, over the next three months. The Company did not modify any option grants during 2018 or the six months ended June 30, 2019. Restricted stock unit (RSU) activity is summarized in the following table for the dates indicated:
The 76,527 of service condition vesting RSUs outstanding as of June 30, 2019 include a feature whereby each RSU outstanding is credited with a dividend amount equal to any common stock cash dividend declared and paid, and the credited amount is divided by the closing price of the Company’s stock on the dividend payable date to arrive at an additional amount of RSUs outstanding under the original grant. The dividend credits follow the same vesting requirements as the RSU awards and are not considered participating securities. The 76,527 of service condition vesting RSUs outstanding as of June 30, 2019 are expected to vest, and be released, on a weighted-average basis, over the next 1.4 years. The Company expects to recognize $2,495,000 of pre-tax compensation costs related to these service condition vesting RSUs between June 30, 2019 and their vesting dates. The Company did not modify any service condition vesting RSUs during 2018 or during the six months ended June 30, 2019.The 53,611 of market plus service condition vesting RSUs outstanding as of June 30, 2019 are expected to vest, and be released, on a weighted-average basis, over the next 2.1 years. The Company expects to recognize $1,227,000 of
pre-tax compensation costs related to these RSUs between June 30, 2019 and their vesting dates. As of June 30, 2019, the number of market plus service condition vesting RSUs outstanding that will actually vest, and be released, may be reduced to zero or increased to 80,417 depending on the total return of the Company’s common stock versus the total return of an index of bank stocks from the grant date to the vesting date. The Company did not modify any market plus service condition vesting RSUs during 2018 or during the six months ended June 30, 2019. |
Noninterest Income and Expense |
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Noninterest Income and Expense | Note 11 - Noninterest Income and Expense The following table summarizes the Company’s noninterest income for the periods indicated:
The components of noninterest expense were as follows (in thousands):
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Note 12 – Earnings Per Share Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustments to income that would result from assumed issuance. Potential common shares that may be issued by the Company relate from outstanding stock options and restricted stock units (RSUs), and are determined using the treasury stock method. Earnings per share have been computed based on the following:
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Note 13 – Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of other comprehensive income.The components of other comprehensive income (loss) and related tax effects are as follows:
The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows:
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Note 14 - Fair Value Measurement The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, income approach, and/or the cost approach. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance. Marketable equity securities, debt securities available-for-sale, loans held for sale, and mortgage servicing rights are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application impairment write-downs of individual assets.The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the observable nature of the assumptions used to determine fair value. These levels are: Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 - Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Marketable equity securities and debt securities available for sale not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. The Company had no securities classified as Level 3 during any of the periods covered in these financial statements.Loans held for sale Impaired originated and PNCI loans Foreclosed assets Mortgage servicing rights - Mortgage servicing rights are carried at fair value. A valuation model, which utilizes a discounted cash flow analysis using a discount rate and prepayment speed assumptions is used in the computation of the fair valuemeasurement. While the prepayment speed assumption is currently quoted for comparable instruments, the discount rate assumption currently requires a significant degree of management judgment and is therefore considered an unobservable input. As such, the Company classifies mortgage servicing rights subjected to recurring fair value adjustments as Level 3. The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):
Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company’s quarterly valuation process. There were no transfers between any levels during the six months ended June 30, 2019 or the year ended December 31, 2018. The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):
The key unobservable inputs used in determining the fair value of mortgage servicing rights are mortgage prepayment speeds and the discount rate used to discount cash projected cash flows. Generally, any significant increases in the mortgage prepayment speed and discount rate utilized in the fair value measurement of the mortgage servicing rights will result in a negative fair value adjustments (and decrease in the fair value measurement). Conversely, a decrease in the mortgage prepayment speed and discount rate will result in a positive fair value adjustment (and increase in the fair value measurement). The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2019 and December 31, 2018:
The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):
The impaired originated and PNCI loan amount above represents impaired, collateral dependent loans that have been adjusted to fair value. When the Company identifies a collateral dependent loan as impaired, the Company measures the impairment using the current fair value of the collateral, less selling costs. Depending on the characteristics of a loan, the fair value of collateral is generally estimated by obtaining external appraisals. If the Company determines that the value of the impaired loan is less than the recorded investment in the loan, the Company recognizes this impairment and adjust the carrying value of the loan to fair value through the allowance for loan and lease losses. The loss represents charge-offs or impairments on collateral dependent loans for fair value adjustments based on the fair value of collateral. The carrying value of loans fully charged-off is zero .The foreclosed assets amount above represents impaired real estate that has been adjusted to fair value. Foreclosed assets represent real estate which the Company has taken control of in partial or full satisfaction of loans. At the time of foreclosure, other real estate owned is recorded at fair value less costs to sell, which becomes the property’s new basis. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance for loan and lease losses. After foreclosure, management periodically performs valuations such that the real estate is carried at the lower of its new cost basis or fair value, net of estimated costs to sell. Fair value adjustments on other real estate owned are recognized within net loss on real estate owned. The loss represents impairments on real estate owned for fair value adjustments based on the fair value of the real estate. The Company’s property appraisals are primarily based on the sales comparison approach and income approach methodologies, which consider recent sales of comparable properties, including their income generating characteristics, and then make adjustments to reflect the general assumptions that a market participant would make when analyzing the property for purchase. These adjustments may increase or decrease an appraised value and can vary significantly depending on the location, physical characteristics and income producing potential of each property. Additionally, the quality and volume of market information available at the time of the appraisal can vary from period to period and cause significant changes to the nature and magnitude of comparable sale adjustments. Given these variations, comparable sale adjustments are generally not a reliable indicator for how fair value will increase or decrease from period to period. Under certain circumstances, management discounts are applied based on specific characteristics of an individual property. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2019:
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2018:
Fair values for financial instruments are management’s estimates of the values at which the instruments could be exchanged in a transaction between willing parties. The Company uses the exit price notion when measuring the fair value of financial instruments. These estimates are subjective and may vary significantly from amounts that would be realized in actual transactions. In addition, other significant assets are not considered financial assets including, any mortgage banking operations, deferred tax assets, and premises and equipment. Further, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered in any of these estimates.
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Regulatory Matters |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters | Note 15 - Regulatory Matters The Company is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. The following tables present actual and required capital ratios as of June 30, 2019 and December 31, 2018 for the Company and the Bank under applicable Basel III Capital Rules. The minimum capital amounts presented include the minimum required capital levels as of June 30, 2019 and December 31, 2018 based on the then
phased-in provisions of the Basel III Capital Rules. As of January 1, 2019, the minimum required capital levels of the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.
As of June 30, 2019 and December 31, 2018, capital levels at the Company and the Bank exceed all capital adequacy requirements under the Basel III Capital Rules. Also, at June 30, 2019 and December 31, 2018, the Bank’s capital levels exceeded the minimum amounts necessary to be considered well capitalized under the current regulatory framework for prompt corrective action. The Basel III Capital Rules require for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of common equity tier 1 capital, and it applies to each of the risk-based capital ratios but not the leverage ratio. At June 30, 2019, the Company and the Bank are in compliance with the capital conservation buffer requirement. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation TriCo Bancshares (the “Company” or “we”) is a California corporation organized to act as a bank holding company for Tri Counties Bank (the “Bank”). The Company and the Bank are headquartered in Chico, California. The Bank is a California-chartered bank that is engaged in the general commercial banking business in 29 California counties. The Company has five capital subsidiary business trusts (collectively, the “Capital Trusts”) that issued trust preferred securities, including two organized by the Company and three acquired with the acquisition of North Valley Bancorp. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. All adjustments necessary for a fair presentation of these consolidated financial statements have been included and are of a normal and recurring nature. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. For financial reporting purposes, the Company’s investments in the Capital Trusts of $1,716,000 are accounted for under the equity method and, accordingly, are not consolidated and are included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the Capital Trusts are reflected as debt on the Company’s consolidated balance sheet. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidtated financial statements and notes thereto included in the Company’s Annual Report on Form
10-K for the year ended December 31, 2018 (the “2018 Annual Report”). The Company believes that the disclosures made are adequate to make the inforamtion not misleading. |
Segment and Significant Group Concentration of Credit Risk | Segment and Significant Group Concentration of Credit Risk The Company grants agribusiness, commercial, consumer, and residential loans to customers located throughout northern and central California. The Company has a diversified loan portfolio within the business segments located in this geographical area. The Company currently classifies all its operation into one business segment that it denotes as community banking. |
Geographical Descriptions | Geographical Descriptions For the purpose of describing the geographical location of the Company’s operations, the Company has defined northern California as that area of California north of, and including, Stockton to the east and San Jose to the west; central California as that area of the state south of Stockton and San Jose, to and including, Bakersfield to the east and San Luis Obispo to the west; and southern California as that area of the state south of Bakersfield and San Luis Obispo. |
Cash and Cash Equivalents | Cash and Cash Equivalents Net cash flows are reported for loan and deposit transactions and other borrowings. For purposes of the consolidated statement of cash flows, cash, due from banks with original maturities less than 90 days, interest-earning deposits in other banks, and Federal funds sold are considered to be cash equivalents. |
Accounting Standards Adopted in 2019 | Accounting Standards Adopted in 2019 The Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) 2016-02, which among other things, requires lessees to recognize most leases on-balance sheet, increasing reported assets and liabilities. Lessor accounting remains substantially similar to current U.S. GAAP. The FASB has issued incremental guidance to Topic 842 standard through ASU No. 2018-11, 2018-20, and 2019-01. The Company has elected to use the transition relief approach as provided in ASU 2018-11, which permits the Company to use January 1, 2019 as both the application date and the adoption date, rather than the modified retrospective approach which would have required an application date of January 1, 2017 and adoption date of January 1, 2019. The Company also elected certain relief options offered within the new standard, which include the package of practical expedients, the option not to recognize a right-of-use asset (ROUA) and lease liability that arise from short-term leases (i.e. leases with terms of 12 months or less), and the option of hindsight when determining lease term. Substantiallyall of the Company’s lease agreements are considered operating leases and were not previously recognized on the Company’s balance sheets. As of January 1, 2019, the Company recorded a ROUA and corresponding lease liability for all applicable operating leases. While the guidance increased the Company’s gross assets and liabilities, the adoption of ASU 2016-02 did not have a material impact on the consolidated statements of income or the consolidated statements of cash flows. See Note 6 for more information.The FASB issued ASU
2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310). 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 was effective for the Company on January 1, 2019, and did not have an impact on the Company’s consolidated financial statements. |
Accounting Standards Pending Adoption | Accounting Standards Pending Adoption The FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326) . ASU 2016-13 is the final guidance on the new current expected credit loss (‘‘CECL’’) model. ASU 2016-13, among other things, requires the incurred loss impairment methodology in current GAAP be replaced with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity (‘‘HTM’’) debt securities. ASU 2016-13 amends the accounting for credit losses on available-for-sale securities (‘‘AFS’’), whereby credit losses will be presented as an allowance as opposed to a write-down. In addition, CECL will modify the accounting for purchased loans with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Lastly, ASU 2016-13 requires enhanced disclosures on the significant estimates and judgments used to estimate credit losses, as well as on the credit quality and underwriting standards of an organization’s portfolio. These disclosures require organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. ASU 2016-13 allows for a modified retrospective approach with a cumulative effect adjustment to the balance sheet upon adoption (charge to retained earnings instead of the income statement). ASU 2016-13 will be effective for the Company on January 1, 2020, and early adoption is permitted. While the Company is currently evaluating the provisions of ASU 2016-13 to determine the potential impact the new standard will have on the Company’s consolidated financial statements, it has taken steps to prepare for the implementation when it becomes effective, such as forming an internal task force, gathering pertinent data, consulting with outside professionals, and evaluating its current IT systems. While detailed modeling efforts are ongoing, the validation of expected credit loss estimates will likely not be available until late in 2019. Management expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the first reporting period in which the new standard is effective, but cannot yet estimate the magnitude of the one-time adjustment or the overall impact of the new guidance on the Company’s financial position, results of operations or cash flows.FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment (Topic 350): 2017-04 eliminates step two of the goodwill impairment test (the hypothetical purchase price allocation used to determine the implied fair value of goodwill) when step one (determining if the carrying value of a reporting unit exceeds its fair value) is failed. Instead, entities simply will compare the fair value of a reporting unit to its carrying amount and record goodwill impairment for the amount by which the reporting unit’s carrying amount exceeds its fair value. ASU 2017-04 will be effective for the Company on January 1, 2020 and is not expected to have a significant impact on the Company’s consolidated financial statements.In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. Entities are also allowed to elect early adoption the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU No. 2018-13 only revises disclosure requirements, it will not have a significant impact on the Company’s consolidated financial statements.In August 2018, the FASB issued ASU No.
2018-14, “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. As ASU 2018-14 only revises disclosure requirements, it will not have a significant impact on the Company’s consolidated financial statements. |
Business Combinations (Tables) |
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Schedule of Fair Value of Consideration Transferred, Identifiable Net Assets Acquired and Resulting Goodwill | The following table summarizes the consideration paid for FNBB and the amounts of assets acquired and liabilities assumed that were recorded at the acquisition date (in thousands).
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Summary of Estimated Fair Value Adjustments Resulting in Goodwill | A summary of the estimated fair value adjustments resulting in the goodwill recorded in the FNB Bancorp acquisition are presented below (in thousands):
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Investment Securities (Tables) |
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Investments Schedule [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Values of Investments Securities | The amortized cost and estimated fair values of investments in debt securities are summarized in the following tables:
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Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity | For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by U.S. government corporations and agencies is categorized based on final maturity date.
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Gross Unrealized Losses on Investment Securities | Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
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Loans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Loan Balances | A summary of loan balances follows (in thousands):
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Change in Accretable Yield for PCI | The following is a summary of the change in accretable yield for PCI during the periods indicated (in thousands):
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Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity in Allowance for Loan Losses, and Ending Balance of Loans, Net of Unearned Fees for Periods Indicated | The following tables summarize the activity in the allowance for loan losses, and ending balance of loans, net of unearned fees for the periods indicated.
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Schedule Credit Quality Indicators | The following tables present ending loan balances by loan category and risk grade for the periods indicated:
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Analysis of Past Due Loans | The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:
The following table shows the ending balance of current and past due PNCI loans by loan category as of the date indicated:
The following table shows the ending balance of current and past due originated loans by loan category as of the date indicated:
The following table shows the ending balance of current and past due PNCI loans by loan category as of the date indicated:
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Schedule of Non Accrual Loans | Interest income on originated nonaccrual loans that would have been recognized during the six months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $568,000 and $626,000, respectively. Interest income actually recognized on these originated loans during the six months ended June 30, 2019 and 2018 was $86,000 and $75,000, respectively. Interest income on PNCI nonaccrual loans that would have been recognized during the six months ended June 30, 2019 and 2018, if all such loans had been current in accordance with their original terms, totaled $281,000 and $54,000, respectively. Interest income actually recognized on these PNCI loans during the six months ended June 30, 2019 and 2018 was $171,000 and $11,000. The following table shows the ending balance of nonaccrual originated
and PNCI loans by loan category as of the date indicated:
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Impaired Loans |
|
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Troubled Debt Restructurings | The following tables show certain information regarding TDRs that occurred during the periods indicated:
|
Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Cost and Other Lease Information | The following table presents the components of lease expense for the three and six months ended June 30, 2019:
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Schedule Of Supplemental Cash Flow Information Related To Operating Leases [Table Text Block] | The following table presents supplemental cash flow information related to leases for the six months ended June 30, 2019:
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Schedule Of Weighted Average Lease Term And Discount Rate Related To Operating Lease [Table Text Block] | The following table presents the weighted average operating lease term and discount rate at June 30, 2019:
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At June 30, 2019, future expected operating lease payments are as follows:
|
Deposits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Balances of Deposits | A summary of the balances of deposits follows (in thousands):
|
Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Bank's Commitments and Contingent Liabilities |
|
Stock Options and Other Equity-Based Incentive Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity | The Company’s 2009 Equity Incentive Plan (2009 Plan) expired on March 26, 2019. While no new awards can be granted under the 2009 Plan, existing grants continue to be governed by the terms, conditions and procedures set forth in any applicable award agreement. On April 16, 2019, the Board of Directors adopted the 2019 Equity Incentive Plan (2019 Plan) which was ratified by shareholders on May 21, 2019. The 2019 Plan allows for up to 1,500,000 shares to be issued in connection with equity-based incentives. All grants of equity awards made during the six months ended June 30, 2019 were made from the 2019 Plan. Stock option activity during the six months
ended June 30, 2019 is summarized in the following table:
|
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Summary of Options Outstanding | The following table shows the number, weighted-average exercise price, intrinsic value, and weighted average remaining contractual life of options exercisable, options not yet exercisable and total options outstanding as of June 30, 2019:
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Restricted Stock Unit (RSU) Activity | Restricted stock unit (RSU) activity is summarized in the following table for the dates indicated:
|
Noninterest Income and Expense (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Noninterest Income | The following table summarizes the Company’s noninterest income for the periods indicated:
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Components of Noninterest Expense | The components of noninterest expense were as follows (in thousands):
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings Per Share | Earnings per share have been computed based on the following:
|
Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income (Loss) and Related Tax Effects | The components of other comprehensive income (loss) and related tax effects are as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, included in shareholders’ equity, are as follows:
|
Fair Value Measurement (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):
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Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) on Recurring Basis | The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):
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Quantitative Information about Recurring Level 3 Fair Value Measurements | The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2019 and December 31, 2018:
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Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):
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Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at June 30, 2019:
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2018:
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Estimated Fair Values of Financial Instruments that are Reported at Amortized Cost in Consolidated Balance Sheets |
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Regulatory Matters (Tables) |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual and Required Capital Ratios of Bank | The following tables present actual and required capital ratios as of June 30, 2019 and December 31, 2018 for the Company and the Bank under applicable Basel III Capital Rules. The minimum capital amounts presented include the minimum required capital levels as of June 30, 2019 and December 31, 2018 based on the then phased-in provisions of the Basel III Capital Rules. As of January 1, 2019, the minimum required capital levels of the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules.
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Summary of Significant Accounting Policies - Additional Information (Detail) |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
Segment
Office
Trust
Business
| |
Significant Of Accounting Policies [Line Items] | |
Number of subsidiary business trusts | Trust | 5 |
Number of loan production offices | Office | 2 |
Company's investments in the trusts | $ | $ 1,716,000 |
Number of business segment | Segment | 1 |
Loans contractual past due | 90 days |
California [Member] | |
Significant Of Accounting Policies [Line Items] | |
Number of counties | Business | 29 |
Business Combinations - Summary of Estimated Fair Value Adjustments Resulting in Goodwill (Detail) - USD ($) $ in Thousands |
Jul. 06, 2018 |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 220,972 | $ 220,972 | |
FNBB [Member] | |||
Business Acquisition [Line Items] | |||
Value of stock consideration paid to FNB Bancorp Shareholders | $ 284,437 | ||
Cash consideration | 6,695 | ||
Cost basis net assets acquired | 114,030 | ||
Investments | (1,081) | ||
Fair Value Adjustments, Premises and equipment | 21,590 | ||
Core deposit intangible | 27,327 | ||
Deferred income taxes | (6,394) | ||
Other | 1,389 | ||
Goodwill | 156,661 | ||
FNBB [Member] | Loans [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value Adjustments | $ (22,390) |
Loans - Change in Accretable Yield for PCI (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Change in accretable yield: | ||||
Balance at beginning of period | $ 5,747 | $ 6,022 | $ 6,059 | $ 6,137 |
Accretion to interest income | (109) | (261) | (410) | (516) |
Reclassification (to) from nonaccretable difference | (320) | 110 | (331) | 250 |
Balance at end of period | $ 5,318 | $ 5,871 | $ 5,318 | $ 5,871 |
Allowance for Loan Losses - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Originated [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Interest income on non accrual loans | $ 289,000 | $ 341,000 | $ 568,000 | $ 626,000 | |
Interest income on non accrual loans ,recognized | 53,000 | 53,000 | 86,000 | 75,000 | |
Impaired TDR Loans | 10,998,000 | 9,450,000 | $ 10,253,000 | ||
Obligations to lend additional funds on TDR | 0 | 0 | 0 | ||
PNCI [Member] | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Interest income on non accrual loans | 160,000 | 26,000 | 281,000 | 54,000 | |
Interest income on non accrual loans ,recognized | $ 111,000 | $ 12,000 | 171,000 | 11,000 | |
Impaired TDR Loans | 811,000 | 1,459,000 | 615,000 | ||
Obligations to lend additional funds on TDR | $ 0 | $ 0 | $ 0 |
Leases - Lease Costs and Other Lease Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Operating lease cost | $ 1,310 | $ 2,621 |
Short-term lease cost | 58 | 129 |
Variable lease cost | (17) | (22) |
Sublease income | (32) | (66) |
Total lease cost | $ 1,319 | $ 2,662 |
Leases - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
|
Operating Leases, Rent Expense | $ 892,000 | $ 1,776,000,000 |
Rental Income, Nonoperating | $ 10,000 | $ 21,000,000 |
Leases - Supplemental Cash Flow Information Related To Operating Leases (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 1,229 | $ 2,447 | |
ROUA obtained in exchange for operating lease liabilities | $ 156 | $ 156 | $ 0 |
Leases - Weighted Average Lease Term And Discount Rate Related To Operating Lease (Detail) |
Jun. 30, 2019 |
---|---|
Operating Lease, Weighted Average Remaining Lease Term | 9 years 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 3.18% |
Leases - Future Minimum Rental Payments For Operating Leases (Detail) $ in Thousands |
Jun. 30, 2019
USD ($)
|
---|---|
2019 | $ 2,352 |
2020 | 4,387 |
2021 | 4,235 |
2022 | 3,896 |
2023 | 3,216 |
Thereafter | 16,682 |
Operating Leases, Future Minimum Payments Due | 34,768 |
Discount for present value of expected cash flows | (5,334) |
Lease liability at June 30, 2019 | $ 29,434 |
Deposits - Summary of Balances of Deposits (Detail) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 1,780,339 | $ 1,760,580 |
Interest-bearing demand | 1,263,635 | 1,252,366 |
Savings | 1,856,749 | 1,921,324 |
Time certificates, $250,000 or more | 130,061 | 132,429 |
Other time certificates | 311,389 | 299,767 |
Total deposits | $ 5,342,173 | $ 5,366,466 |
Deposits - Additional Information (Detail) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Schedule Of Deposits [Line Items] | ||
Overdrawn deposit balances classified as consumer loans | $ 1,242,000 | $ 1,469,000 |
California [Member] | ||
Schedule Of Deposits [Line Items] | ||
Certificate of deposits, included in time certificates, over $250,000 | $ 50,000,000 | $ 60,000,000 |
Shareholders' Equity - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Aug. 21, 2007 |
|
Class of Stock [Line Items] | |||||||||
Cash dividends received | $ 10,236,000 | $ 4,770,000 | $ 18,350,000 | $ 9,142,000 | |||||
Repurchase of common stock | 500,000 | ||||||||
Common stock, shares outstanding | 30,502,757 | 30,502,757 | 30,417,223 | ||||||
Market value of shares repurchased under equity compensation plans | $ 4,695,000 | $ 671,000 | |||||||
2007 Stock Repurchase Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding | 0 | 0 | 0 | 0 | |||||
Cumulative number of shares repurchased | 196,566 | 196,566 | |||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding | 30,502,757 | 23,004,153 | 30,502,757 | 23,004,153 | 30,432,419 | 30,417,223 | 22,956,323 | 22,955,963 | |
Company's common stock in lieu of cash to exercise options to purchase shares | 93,755 | 17,086 | 119,914 | 17,220 | |||||
Market value of shares repurchased under equity compensation plans | $ 3,659,000 | $ 667,000 | $ 4,695,000 | $ 671,000 |
Stock Options and Other Equity-Based Incentive Instruments - Restricted Stock Unit (RSU) Activity (Detail) - Restricted Stock Units (RSUs) [Member] |
6 Months Ended |
---|---|
Jun. 30, 2019
shares
| |
Market Plus Service Condition Vesting RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs outstanding, Number of RSUs, beginning balance | 45,536 |
RSUs granted, Number of RSUs | 22,898 |
RSUs added through dividend and performance credits, Number of RSUs | 7,414 |
RSUs released through vesting, Number of RSUs | (22,237) |
RSUs outstanding, Number of RSUs, ending balance | 53,611 |
Service Condition Vesting RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs outstanding, Number of RSUs, beginning balance | 66,947 |
RSUs granted, Number of RSUs | 35,272 |
RSUs added through dividend and performance credits, Number of RSUs | 519 |
RSUs released through vesting, Number of RSUs | (26,211) |
RSUs outstanding, Number of RSUs, ending balance | 76,527 |
Noninterest Income and Expense - Components of Noninterest Expense (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Statement [Abstract] | ||||
Base salaries, net of deferred loan origination costs | $ 17,211 | $ 14,429 | $ 33,968 | $ 28,391 |
Incentive compensation | 3,706 | 2,159 | 6,273 | 4,611 |
Benefits and other compensation costs | 5,802 | 4,865 | 11,606 | 10,103 |
Total salaries and benefits expense | 26,719 | 21,453 | 51,847 | 43,105 |
Occupancy | 3,738 | 2,720 | 7,512 | 5,401 |
Data processing and software | 3,354 | 2,679 | 6,703 | 5,193 |
Equipment | 1,752 | 1,637 | 3,619 | 3,188 |
Intangible amortization | 1,431 | 339 | 2,862 | 678 |
Advertising | 1,533 | 1,035 | 2,864 | 1,873 |
ATM and POS network charges | 1,270 | 1,437 | 2,593 | 2,663 |
Professional fees | 1,057 | 774 | 1,896 | 1,546 |
Telecommunications | 773 | 681 | 1,570 | 1,382 |
Regulatory assessments and insurance | 490 | 417 | 1,001 | 847 |
Merger and acquisition expense | 601 | 1,077 | ||
Postage | 315 | 301 | 625 | 659 |
Operational losses | 226 | 252 | 451 | 546 |
Courier service | 412 | 224 | 682 | 491 |
Other miscellaneous expense | 3,782 | 3,320 | 8,140 | 7,383 |
Total other noninterest expense | 20,133 | 16,417 | 40,518 | 32,927 |
Total noninterest expense | $ 46,852 | $ 37,870 | $ 92,365 | $ 76,032 |
Earnings Per Share - Computation of Earnings Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 23,061 | $ 15,029 | $ 45,787 | $ 28,939 |
Average number of common shares outstanding | 30,458 | 22,983 | 30,441 | 22,970 |
Effect of dilutive stock options and restricted stock | 185 | 293 | 209 | 310 |
Average number of common shares outstanding used to calculate diluted earnings per share | 30,643 | 23,276 | 30,650 | 23,280 |
Fair Value Measurement - Additional Information (Detail) - USD ($) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Fair Value Disclosures [Abstract] | ||
Transfers between level 1 to level 2, Assets | $ 0 | $ 0 |
Transfers between level 2 to level 1, Assets | 0 | 0 |
Transfers between level 1 to level 2, Liabilities | 0 | 0 |
Transfers between level 2 to level 1, Liabilities | 0 | 0 |
Transfer into level 3 | 0 | 0 |
Transfer out of level 3 | 0 | $ 0 |
Carrying value of loans fully charged-off | $ 0 |
Fair Value Measurement - Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) on Recurring Basis (Detail) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning Balance | $ 6,572 | $ 6,953 | $ 7,098 | $ 6,687 |
Change Included in Earnings | (552) | (36) | (1,197) | 75 |
Issuances | 209 | 104 | 328 | 259 |
Ending Balance | $ 6,229 | $ 7,021 | $ 6,229 | $ 7,021 |
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