0001206774-17-003077.txt : 20171103 0001206774-17-003077.hdr.sgml : 20171103 20171103150334 ACCESSION NUMBER: 0001206774-17-003077 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 100 CONFORMED PERIOD OF REPORT: 20170930 FILED AS OF DATE: 20171103 DATE AS OF CHANGE: 20171103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ConnectOne Bancorp, Inc. CENTRAL INDEX KEY: 0000712771 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 521273725 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11486 FILM NUMBER: 171176082 BUSINESS ADDRESS: STREET 1: 301 SYLVAN AVENUE CITY: ENGLEWOOD CLIFFS STATE: NJ ZIP: 07632 BUSINESS PHONE: 2018168900 MAIL ADDRESS: STREET 1: 301 SYLVAN AVENUE CITY: ENGLEWOOD CLIFFS STATE: NJ ZIP: 07632 FORMER COMPANY: FORMER CONFORMED NAME: CENTER BANCORP INC DATE OF NAME CHANGE: 19920703 10-Q 1 connect3318581-10q.htm QUARTERLY REPORT

UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2017

OR

☐        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number: 000-11486

CONNECTONE BANCORP, INC.
(Exact Name of Registrant as Specified in Its Charter)

New Jersey 52-1273725
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)

301 Sylvan Avenue
Englewood Cliffs, New Jersey 07632
(Address of Principal Executive Offices) (Zip Code)

201-816-8900
(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer         Accelerated filer         Non-accelerated filer         Smaller reporting company
    (Do not check if smaller
reporting company)
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, no par value: 32,015,317 shares
(Title of Class) (Outstanding as of November 3, 2017)


Table of Contents

Page
PART I – FINANCIAL INFORMATION
 
Item 1.               Financial Statements
Consolidated Statements of Condition at September 30, 2017 (unaudited) and December 31, 2016 3
Consolidated Statements of Income for the three and nine months ended September 30, 2017 and 2016 (unaudited) 4
Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2017 and 2016 (unaudited) 5
Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2017 and 2016 (unaudited) 6
Consolidated Statements of Cash Flows for the nine months ended September 30, 2017 and 2016 (unaudited) 7
Notes to Consolidated Financial Statements
 
8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
44
Item 3. Qualitative and Quantitative Disclosures about Market Risks
 
58
Item 4. Controls and Procedures
 
59
PART II – OTHER INFORMATION
 
Item 1. Legal Proceedings
 
60
Item 1a. Risk Factors
 
60
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
61
Item 3. Defaults Upon Senior Securities
 
61
Item 4. Mine Safety Disclosures
 
61
Item 5. Other Information
 
61
Item 6. Exhibits
 
62
SIGNATURES

2


Item 1. Financial Statements

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION

      September 30,       December 31,
(in thousands, except for share data) 2017 2016
(unaudited)  
ASSETS  
Cash and due from banks $        41,114 $        37,150
Interest-bearing deposits with banks 100,148 163,249
Cash and cash equivalents 141,262 200,399
                 
Securities available-for-sale 400,516 353,290
                 
Loans held-for-sale (net of valuation allowance of $15,287 and $-0-, respectively) 89,386 78,005
                 
Loans receivable 3,889,289 3,475,832
Less: Allowance for loan losses 29,870 25,744
Net loans receivable 3,859,419 3,450,088
                 
Investment in restricted stock, at cost 29,672 24,310
Bank premises and equipment, net 21,917 22,075
Accrued interest receivable 14,841 12,965
Bank owned life insurance 110,762 98,359
Other real estate owned - 626
Goodwill 145,909 145,909
Core deposit intangibles 2,533 3,088
Other assets 28,538 37,234
Total assets $ 4,844,755 $ 4,426,348
LIABILITIES
Deposits:
Noninterest-bearing $ 719,582 $ 694,977
Interest-bearing 2,904,187 2,649,294
Total deposits 3,623,769 3,344,271
Borrowings 585,124 476,280
Subordinated debentures (net of debt issuance costs of $498 and $621, respectively) 54,657 54,534
Other liabilities 23,514 20,231
Total liabilities 4,287,064 3,895,316
                 
COMMITMENTS AND CONTINGENCIES
                 
STOCKHOLDERS’ EQUITY
                 
Common stock, no par value, authorized 50,000,000 shares; issued 34,079,239 shares at September 30, 2017 and 34,018,731 at December 31, 2016; outstanding 32,015,317 shares at September 30, 2017 and 31,948,307 at December 31, 2016 412,546 412,726
Additional paid-in capital 12,840 11,407
Retained earnings 151,851 126,462
Treasury stock, at cost (2,063,922 common shares at September 30, 2017 and December 31, 2016) (16,717 ) (16,717 )
Accumulated other comprehensive loss (2,829 ) (2,846 )
Total stockholders’ equity 557,691 531,032
Total liabilities and stockholders’ equity $ 4,844,755 $ 4,426,348

See accompanying notes to unaudited consolidated financial statements.

3


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)

      Three Months Ended       Nine Months Ended
September 30, September 30,
(in thousands, except for per share data) 2017       2016 2017       2016
Interest income        
Interest and fees on loans $        43,241 $        37,803 $        121,879 $        109,381
Interest and dividends on securities:
Taxable 1,695 1,774 5,042 5,879
Tax-exempt 870 988 2,655 2,867
Dividends 362 352 982 1,074
Interest on federal funds sold and other short-term investments 170 261 555 541
Total interest income 46,338 41,178 131,113 119,742
Interest expense
Deposits 6,113 5,159 16,717 13,532
Borrowings 3,206 2,995 9,135 9,472
Total interest expense 9,319 8,154 25,852 23,004
Net interest income 37,019 33,024 105,261 96,738
Provision for loan losses 1,450 6,750 4,000 13,500
Net interest income after provision for loan losses 35,569 26,274 101,261 83,238
Noninterest income
Annuities and insurance commissions - 68 39 140
Income on bank owned life insurance 985 615 2,402 1,843
Net gains on sale of loans held-for-sale 50 56 120 147
Deposit, loan and other income 721 706 2,023 1,984
Net gains on sales of securities available-for-sale - 4,131 1,596 4,234
Total noninterest income 1,756 5,576 6,180 8,348
Noninterest expenses
Salaries and employee benefits 8,872 7,791 25,710 23,143
Occupancy and equipment 1,969 2,049 6,215 6,450
FDIC insurance 840 745 2,550 1,955
Professional and consulting 740 667 2,192 2,078
Marketing and advertising 225 293 770 817
Data processing 1,176 1,002 3,474 3,036
Amortization of core deposit intangible 169 193 555 627
Increase in valuation allowance, loans held-for-sale 3,000 - 15,325 -
Other expenses 1,650 1,811 5,402 5,150
Total noninterest expenses 18,641 14,551 62,193 43,256
Income before income tax expense 18,684 17,299 45,248 48,330
Income tax expense 5,607 5,443 12,608 15,224
Net income 13,077 11,856 32,640 33,106
Less: Preferred stock dividends - - - 22
Net income available to common stockholders $ 13,077 $ 11,856 $ 32,640 $ 33,084
                         
Earnings per common share:
Basic $ 0.41 $ 0.39 $ 1.02 $ 1.10
Diluted 0.41 0.39 1.01 1.09
                         
Dividends per common share $ 0.075 $ 0.075 $ 0.225 $ 0.225

See accompanying notes to unaudited consolidated financial statements.

4


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)

      Three Months Ended       Nine Months Ended
September 30, September 30,
(in thousands) 2017       2016 2017       2016
Net income $        13,077 $        11,856 $        32,640 $        33,106
Other comprehensive income:        
Unrealized gains and losses:
Unrealized holding gains (losses) on available-for-sale securities arising during the period 415 (523 ) 1,332 1,551
Tax effect (165 ) 187 (525 ) (634 )
Net of tax 250 (336 ) 807 917
Unrealized gains on securities transferred from held-to-maturity to available-for-sale the period - 10,069 - 10,069
Tax effect - (3,815 ) - (3,815 )
Net of tax - 6,254 6,254
Reclassification adjustment for realized gains included in net income - (4,131 ) (1,596 ) (4,234 )
Tax effect - 1,640 579 1,682
Net of tax - (2,491 ) (1,017 ) (2,552 )
Amortization of unrealized net losses on held-to-maturity securities transferred from available-for-sale securities - 1,890 - 1,986
Tax effect - (774 ) - (813 )
Net of tax 1,116 - 1,173
                                 
Unrealized gains (losses) on cash flow hedges 119 644 76 (1,081 )
Tax effect (48 ) (263 ) (31 ) 441
Net of tax 71 381 45 (640 )
Unrealized pension plan gains and losses:
Unrealized pension plan losses before reclassifications - - (2 ) (1 )
Tax effect - - 1 -
Net of tax - - (1 ) (1 )
Reclassification adjustment for amortization included in net income 103 204 309 306
Tax effect (42 ) (83 ) (126 ) (124 )
Net of tax 61 121 183 182
Total other comprehensive income 382 5,045 17 5,333
Total comprehensive income $ 13,459 $ 16,901 $ 32,657 $ 38,439

See accompanying notes to unaudited consolidated financial statements.

5


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)

                  Accumulated   
Additional Other Total
(dollars in thousands, except for per Preferred Common Paid-In Retained Treasury Comprehensive Stockholders’
share data) Stock Stock Capital Earnings Stock (Loss) Income Equity
Balance as of December 31, 2015 $     11,250 $     374,287 $     8,527 $     104,606 $     (16,717 ) $     (4,609 ) $     477,344
Net income - - - 33,106 - - 33,106
Other comprehensive income, net of tax - - - - - 5,333 5,333
Dividend on series B preferred stock - - - (22 ) - - (22 )
Cash dividends declared on common stock ($0.225 per share) - - - (6,805 ) - - (6,805 )
                                                       
Redemption of preferred stock (11,250 ) - - - - - (11,250 )
Exercise of stock options (36,135 shares) - - 232 - - - 232
Restricted stock and performance units grants (75,520 shares) - - - - - - -
Stock-based compensation expense - - 1,650 - - - 1,650
                                                       
Balance as of September 30, 2016 $ - $ 374,287 $ 10,409 $ 130,885 $ (16,717 ) $ 724 $ 499,588
                                                       
Balance as of December 31, 2016 $ - $ 412,726 $ 11,407 $ 126,462 $ (16,717 ) $ (2,846 ) $ 531,032
Net income - - - 32,640 - - 32,640
Other comprehensive income, net of tax - - - - - 17 17
Cash dividends declared on common stock ($0.225 per share) - - - (7,251 ) - - (7,251 )
                                                       
Stock issuance costs - (180 ) - - - - (180 )
Exercise of stock options (10,846 shares) - - 118 - - - 118
Restricted stock grants (57,164 shares) - - - - - - -
Stock-based compensation expense - - 1,315 - - - 1,315
                                                       
Balance as of September 30, 2017 $ - $ 412,546 $ 12,840 $ 151,851 $ (16,717 ) $ (2,829 ) $ 557,691

See accompanying notes to unaudited consolidated financial statements.

6


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

      Nine Months Ended
September 30,
(dollars in thousands) 2017       2016
Cash flows from operating activities  
Net income $        32,640 $        33,106
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of premises and equipment 2,364 2,084
Provision for loan losses 4,000 13,500
Increase in valuation allowance 15,325 -
Amortization of intangibles 555 627
Net accretion of loans (1,106 ) (3,381 )
Accretion on bank premises (58 ) (94 )
Accretion on deposits (19 ) (167 )
Accretion on borrowings (156 ) (250 )
Stock-based compensation 1,315 1,650
Gains on sales of investment securities, net (1,596 ) (4,234 )
Gains on sales of loans held-for-sale, net (120 ) (147 )
Gains on sales of fixed assets, net (8 ) -
Loans originated for resale (6,790 ) (6,399 )
Proceeds from sale of loans held-for sale 12,015 4,948
Net loss (gain) on sale of other real estate owned 82 (182 )
Increase in cash surrender value of bank owned life insurance (2,402 ) (1,843 )
Amortization of premiums and accretion of discounts on investments securities, net 1,808 1,148
(Increase) decrease in accrued interest receivable (1,876 ) 48
Decrease (increase) in other assets 8,894 (2,813 )
Increase (decrease) in other liabilities 3,444 (981 )
Net cash provided by operating activities 68,311 36,620
Cash flows from investing activities
Investment securities available-for-sale:
Purchases (138,945 ) (114,844 )
Sales 29,543 85,253
Maturities, calls and principal repayments 61,700 109,452
Investment securities held-to-maturity:
Purchases - (1,000 )
Maturities and principal repayments - 14,758
Net (purchases) redemptions of restricted investment in bank stocks (5,362 ) 8,077
Payments on loans held-for-sale 2,841 -
Net increase in loans (447,457 ) (359,945 )
Proceeds from sales of fixed assets 8 -
Purchases of premises and equipment (2,148 ) (1,769 )
Purchases of bank owned life insurance (10,000 ) (17,000 )
Proceeds from sale of other real estate owned 1,124 2,992
Net cash used in investing activities (508,696 ) (274,026 )
Cash flows from financing activities
Net increase in deposits 279,517 478,150
Advances of Federal Home Loan Bank (“FHLB”) borrowings 780,000 375,000
Repayments of FHLB borrowings (656,000 ) (565,000 )
Repayment of repurchase agreement (15,000 ) -
Cash dividends paid on common stock (7,207 ) (6,805 )
Cash dividends paid on preferred stock - (22 )
Common stock issuance costs (180 ) -
Redemption of preferred stock - (11,250 )
Proceeds from exercise of stock options 118 232
Net cash provided by financing activities 381,248 270,305
Net change in cash and cash equivalents (59,137 ) 32,899
Cash and cash equivalents at beginning of period 200,399 200,895
Cash and cash equivalents at end of period $ 141,262 $ 233,794
Supplemental disclosures of cash flow information
Cash payments for:
Interest paid on deposits and borrowings $ 25,807 $ 22,791
Income taxes 4,670 18,195
Supplemental disclosures of noncash investing activities
Transfer of loans to other real estate owned $ 580 $ 887
Transfer of loans from held-for-investment to held-for-sale 34,652 13,514
Transfer of investment securities from held-to-maturity to available-for-sale - 209,855

See accompanying notes to unaudited consolidated financial statements.

7


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 1. Nature of Operations and Principles of Consolidation

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of State of New Jersey and is a registered bank holding company. The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), and NJCB Spec-1, LLC (a New Jersey limited liability company).

The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages.

The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017, or for any other interim period. The Company’s 2016 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements.

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.

The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.

Note 2. New Authoritative Accounting Guidance

ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU No. 2017-12 refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 will be effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Although management continues to evaluate the potential impact of ASU 2017-12 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for us on January 1, 2019 and we are currently evaluating this ASU to determine the impact on our consolidated financial statements.

ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

8


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 2. New Authoritative Accounting Guidance – (continued)

ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” provides guidance on the following eight specific cash flow issues: (1) Debt prepayment or debt extinguishment costs; (2) Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) Contingent consideration payments made after a business combination; (4) Proceeds from the settlement of insurance claims; (5) Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) Distributions received from equity method investees; (7) Beneficial interests in securitization transactions; and (8) Separately identifiable cash flows and application of the predominance principle. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Although management continues to evaluate the potential impact of ASU 2016-05 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost.” ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee that will be assessing our data and system needs. The Company has also met with multiple third-party vendors who may provide assistance in implementation and model creation. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements.

ASU No. 2016-02, “Leases (Topic 842)” requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for the Company for reporting periods beginning January 1, 2019, with early adoption permitted. The Company must apply a modified retrospective transition approach for the applicable leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company is currently leasing seventeen properties as branch locations and is leasing certain office equipment. The adoption of ASU 2016-02 will result in increases to the Company's assets and liabilities. We are currently in the process of evaluating all of our leases for compliance with the new ASU.

ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things; (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and we are currently evaluating the potential impact of ASU No. 2016-01 on our consolidated financial statements.

9


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 2. New Authoritative Accounting Guidance – (continued)

ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, the FASB recently issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. Although management continues to evaluate the potential impact of ASU 2014-09 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments relate to when another party, along with the entity, is involved in providing a good or service to a customer. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: identifying performance obligations, and the licensing implementation guidance. The amendments in this update are intended to improve the operability and understandability of the licensing implementation guidance. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedients.

In December 2016, the FASB issued ASU No. 2016-20, Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements. The FASB board decided to issue a separate update for technical corrections and improvements to Topic 606 and other Topics amended by ASU No. 2014-09 to increase awareness of the proposals and to expedite improvements to ASU No. 2014-09. The amendment affects narrow aspects of the guidance issued in ASU No. 2014-09.

10


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 3. Earnings per Common Share

Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards previously granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

Earnings per common share have been computed based on the following:

Three Months Ended Nine Months Ended
September 30, September 30,
(in thousands, except for per share data)
    2017     2016     2017     2016
Net income available to common stockholders $        13,035 $                 11,812 $        32,534 $        33,084
Earnings allocated to participating securities 42 44 106 22
Net income $ 13,077 $ 11,856 $ 32,640 $ 33,106
Weighted average common shares outstanding, including participating securities 32,015 30,143 31,999 30,094
Weighted average participating securities (103 ) (113 ) (104 ) (98 )
Weighted average common shares outstanding 31,912 30,030 31,895 29,996
Incremental shares from assumed conversions of options, performance units and restricted shares 270 329 272 351
Weighted average common and equivalent shares outstanding 32,182 30,359 32,167 30,347
 
Earnings per common share:
Basic $ 0.41 $ 0.39 $ 1.02 $ 1.10
Diluted 0.41 0.39 1.01 1.09

There were no antidilutive share equivalents as of September 30, 2017 and September 30, 2016.

Note 4. Securities Available-For-Sale

The Company’s securities are all classified as available-for-sale at September 30, 2017 and December 31, 2016. Securities available-for-sale are reported at fair value with unrealized gains or losses included in equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of September 30, 2017 and December 31, 2016. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 7 of the Notes to Consolidated Financial Statements for a further discussion.

During the quarter ended September 30, 2016, the Company transferred all securities previously categorized as held-to-maturity to available-for-sale classification. The transfer resulted in an increase of approximately $210 million in amortized cost basis of available-for-sale securities and resulted in a net increase to accumulated other comprehensive income of $7.4 million, net of tax. The transfer enhanced liquidity and increased flexibility with regard to asset-liability management and balance sheet composition. As a result of the transfer, the Company believes it has tainted its held-to-maturity classification and judgment will be required in the future in determining when circumstances have changed such that management can assert that it has the intent and ability to hold debt securities to maturity. Based on this guidance, the Company does not expect to classify any securities as held-to-maturity within the near future.

Transfers of debt securities from the held-to-maturity category to the available-for-sale category are made at fair value at the date of transfer. For transfers from the available-for-sale category to the held-to maturity category the unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted out of other comprehensive income with an offsetting entry to interest income as a yield adjustment through earnings over the remaining terms of the securities. For transfers from the held-to-maturity category to the available-for-sale category unrealized holding gain or loss at the date of the transfer shall be recognized in accumulated other comprehensive income, net of applicable taxes.

11


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 4. Securities Available-For-Sale – (continued)

The following tables present information related to the Company’s securities at September 30, 2017 and December 31, 2016:

Gross Gross
Amortized Unrealized Unrealized Fair
September 30, 2017       Cost       Gains       Losses       Value
(dollars in thousands)
Federal agency obligations   $        55,819   $        290   $        (171 )   $        55,938
Residential mortgage pass-through securities 133,517 668 (1,021 ) 133,164
Commercial mortgage pass-through securities     4,088     42     -       4,130
Obligations of U.S. states and political subdivisions 143,787 2,233 (1,044 ) 144,976
Trust preferred securities     4,576     122     (71 )     4,627
Corporate bonds and notes 30,052 255 (219 ) 30,088
Asset-backed securities     12,605     66     (38 )     12,633
Certificates of deposit 622 5 - 627
Equity securities     376     254     -       630
Other securities 13,976 - (273 ) 13,703
Total securities available-for-sale   $ 399,418   $ 3,935   $ (2,837 )   $ 400,516
 
Gross Gross
Amortized Unrealized Unrealized Fair
December 31, 2016 Cost Gains Losses Value
  (dollars in thousands)
Federal agency obligations   $ 52,826   $ 282   $ (271 )   $ 52,837
Residential mortgage pass-through securities 72,922 519 (944 ) 72,497
Commercial mortgage pass-through securities     4,186     23     -       4,209
Obligations of U.S. states and political subdivisions 148,747 2,789 (931 ) 150,605
Trust preferred securities     5,575     242     (151 )     5,666
Corporate bonds and notes 36,717 586 (375 ) 36,928
Asset-backed securities     14,867     2     (286 )     14,583
Certificates of deposit 973 10 - 983
Equity securities     376     192     -       568
Other securities 14,739 - (325 ) 14,414
Total securities available-for-sale   $ 351,928   $ 4,645   $ (3,283 )   $ 353,290

12


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 4. Securities Available-For-Sale – (continued)

The following table presents information for securities at September 30, 2017, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer.

September 30, 2017
Amortized Fair
      Cost       Value
(dollars in thousands)
Securities available-for-sale:
Due in one year or less $        6,775 $        6,801
Due after one year through five years 30,824 31,197
Due after five years through ten years 39,489 40,174
Due after ten years 170,373 170,717
Residential mortgage pass-through securities 133,517 133,164
Commercial mortgage pass-through securities 4,088 4,130
Equity securities 376 630
Other securities 13,976 13,703
Total $ 399,418 $ 400,516

Gross gains and losses from the sales, calls and maturities of securities for periods presented were as follows (dollars in thousands):

Three Months Ended Nine Months Ended
September 30, September 30,
      2017       2016       2017       2016
Net gains on sales of securities, after tax $        - $        78,680 $        29,543 $        85,253
 
Gross gains on sales of securities - 4,131 1,596 4,234
Gross losses on sales of securities - - - -
Net gains on sales of securities - 4,131 1,596 4,234
Less: tax provision on net gains - 1,640 579 1,682
 
Net gains on sales of securities, after tax $ - $ 2,491 $ 1,017 $ 2,552

The Company reviews all securities for potential recognition of other-than-temporary impairment. The Company maintains a watch list for the identification and monitoring of securities experiencing problems that require a heightened level of review. This could include credit rating downgrades.

The Company’s assessment of whether an impairment in the portfolio is other-than temporary includes factors such as whether the issuer has defaulted on scheduled payments, announced restructuring and/or filed for bankruptcy, has disclosed severe liquidity problems that cannot be resolved, disclosed deteriorating financial condition or sustained significant losses.

13


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 4. Securities Available-For-Sale – (continued)

Temporarily Impaired Securities

The Company does not believe that any of the unrealized losses, which were comprised of 75 and 84 securities as of September 30, 2017 and December 31, 2016, respectively, represent an other-than-temporary impairment (“OTTI”). The gross unrealized losses associated with U.S. Treasury and agency securities, federal agency obligations, mortgage-backed securities, corporate bonds, tax-exempt securities, asset-backed securities, trust preferred securities, mutual funds and equity securities are not considered to be other-than-temporary because these unrealized losses are related to changes in interest rates and do not affect the expected cash flows of the underlying collateral or issuer.

Factors which may contribute to unrealized losses include credit risk, market risk, changes in interest rates, economic cycles, and liquidity risk. The magnitude of any unrealized loss may be affected by the relative concentration of the Company’s investment in any one issuer or industry. The Company has established policies to reduce exposure through diversification of the securities portfolio including limits on concentrations to any one issuer. The Company believes the securities portfolio is prudently diversified.

The unrealized losses included in the tables below are primarily related to changes in interest rates and credit spreads. All of the Company’s securities are performing and are expected to continue to perform in accordance with their respective contractual terms and conditions. These are largely intermediate duration holdings and, in certain cases, monthly principal payments can further reduce loss exposure resulting from an increase in rates.

The Company evaluates all securities with unrealized losses quarterly to determine whether the loss is other-than-temporary. Unrealized losses in the corporate debt securities category consist primarily of senior unsecured corporate debt securities issued by large financial institutions, insurance companies and other corporate issuers. Single issuer corporate trust preferred securities are also included, and in the case of one holding the market valuation loss is largely based upon the floating rate coupon and corresponding market valuation. Neither that trust preferred issuer, nor any other corporate issuers, have defaulted on interest payments. The unrealized loss in equity securities consists of losses on other bank equities. The decline in fair value is due in large part to the lack of an active trading market for these securities, changes in market credit spreads and rating agency downgrades. Management concluded that these securities were not OTTI at September 30, 2017.

In determining whether or not securities are OTTI, the Company must exercise considerable judgment. Accordingly, there can be no assurance that the actual results will not differ from the Company’s judgments and that such differences may not require the future recognition of OTTI charges that could have a material effect on the Company’s financial position and results of operations. In addition, the value of, and the realization of any loss on, a security is subject to numerous risks as cited above.

14


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 4. Securities Available-For-Sale – (continued)

The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at September 30, 2017 and December 31, 2016:

September 30, 2017
Total Less than 12 Months 12 Months or Longer
Fair Unrealized Fair Unrealized Fair Unrealized
    Value     Losses     Value     Losses     Value     Losses
(dollars in thousands)
Federal agency obligation $     21,451 $      (171 ) $    17,679 $      (116 ) $    3,772 $      (55 )
Residential mortgage pass-through securities 77,391 (1,021 ) 49,079 (457 ) 28,312 (564 )
Obligations of U.S. states and political subdivisions 54,073 (1,044 ) 47,016 (829 ) 7,057 (215 )
Trust preferred securities 1,507 (71 ) - - 1,507 (71 )
Corporate bonds and notes 13,123 (219 ) 3,946 (38 ) 9,177 (181 )
Asset-backed securities 7,929 (38 ) - - 7,929 (38 )
Other securities 11,193 (273 ) 5,911 (56 ) 5,282 (217 )
Total temporarily impaired securities $ 186,667 $ (2,837 ) $ 123,631 $ (1,496 ) $ 63,036 $ (1,341 )

December 31, 2016
Total Less than 12 Months 12 Months or Longer
Fair Unrealized Fair Unrealized Fair Unrealized
    Value     Losses     Value     Losses     Value     Losses
(dollars in thousands)
Federal agency obligation $    22,672 $       (271 ) $    21,416 $      (262 ) $    1,256 $         (9 )
Residential mortgage pass-through securities 50,136 (944 ) 49,817 (937 ) 319 (7 )
Obligations of U.S. states and political subdivisions 52,307 (931 ) 52,307 (931 ) - -
Trust preferred securities 1,427 (151 ) - - 1,427 (151 )
Corporate bonds and notes 15,930 (375 ) 7,671 (265 ) 8,259 (110 )
Asset-backed securities 13,404 (286 ) 3,743 (88 ) 9,661 (198 )
Other securities 11,467 (325 ) - - 11,467 (325 )
Total temporarily impaired securities $ 167,343 $ (3,283 ) $ 134,954 $ (2,483 ) $ 32,389 $ (800 )

Securities having a carrying value of approximately $139.5 million and $121.9 million at September 30, 2017 and December 31, 2016, respectively, were pledged to secure public deposits, Federal Reserve Bank discount window borrowings, Federal Home Loan Bank (“FHLB”) advances and for other purposes required or permitted by law.

As of September 30, 2017 and December 31, 2016, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

Note 5. Derivatives

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

15


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 5. Derivatives – (continued)

Interest rate swaps were entered into on April 13, 2017, August 24, 2015, December 30, 2014 and October 15, 2014, each with a respective notional amount of $25 million and were designated as cash flow hedges of an FHLB advance. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income while the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps.

Summary information about the interest rate swaps designated as cash flow hedges as of September 30, 2017, December 31, 2016 and September 30, 2016 are presented in the following table.

September 30, December 31, September 30,
      2017       2016       2016
(dollars in thousands)
Notional amount $        100,000 $        75,000 $        75,000
Weighted average pay rates 1.52 % 1.59 % 1.58 %
Weighted average receive rates 1.07 % 0.69 % 0.70 %
Weighted average maturity 2.7 years 2.8 years 3.1 years
Fair value $ 164 $ 88 $ (1,212 )

Interest expense recorded on these swap transactions totaled approximately $95,000 and $326,000 for the three and nine months ended September 30, 2017, respectively, and $167,000 and $534,000 for the three and nine months ended September 30, 2016, respectively.

Cash Flow Hedge

The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods:

Nine Months Ended September 30, 2017
Amount of gain Amount of gain Amount of gain (loss)
(loss) recognized (loss) reclassified recognized in other
in OCI (Effective from OCI to Noninterest income
      Portion)       interest income       (Ineffective Portion)
(dollars in thousands)
Interest rate contracts $                          45 $                             - $                                          -

Nine Months Ended September 30, 2016
Amount of gain Amount of gain Amount of gain (loss)
(loss) recognized (loss) reclassified recognized in other
in OCI (Effective from OCI to Noninterest income
      Portion)       interest income       (Ineffective Portion)
(dollars in thousands)
Interest rate contracts $                      (640 ) $                                - $                                       -

The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2017 and December 31, 2016:

September 30, 2017  December 31, 2016
Notional Notional
Amount Fair Value Amount Fair Value
(dollars in thousands)
Interest rate swaps related to FHLB advances included in assets       $        100,000       $        164       $        75,000       $        88

16


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, premiums and discounts related to purchase accounting, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Loan segments are defined as a group of loans, which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has five segments of loans: commercial, commercial real estate, commercial construction, residential real estate (including home equity) and consumer.

The recognition of interest income on commercial, commercial real estate, commercial construction and residential loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. A loan is moved to nonaccrual status in accordance with the Company’s policy, typically after 90 days of non-payment.

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The policy of the Company is to generally grant commercial, residential and consumer loans to residents and businesses within our market area. The borrowers’ abilities to repay their obligations are dependent upon various factors including the borrowers’ income and net worth, cash flows generated by the borrowers’ underlying collateral, value of the underlying collateral, and priority of the lender’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the control of the Company. The Company is therefore subject to risk of loss. The Company believes its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for loan losses are provided for all known and inherent risks. Collateral and/or personal guarantees are required for a large majority of the Company’s loans.

Loans Held-for-Sale

Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan.

Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. A portion of these loans, taxi medallion loans, have no material observable trading in any market. Fair value is established with consideration of a range of market participant indications, for all or parts of these loans, and discounted cash flow analyses, which have significant unobservable inputs. See Note 7 for further discussion.

Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Allowance for Loan losses

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired.

17


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. As part of the evaluation of impaired loans, the Company individually reviews for impairment all non-homogeneous loans internally classified as substandard or below. Generally, smaller impaired non-homogeneous loans and impaired homogeneous loans are collectively evaluated for impairment.

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience, the primary factor, is determined by loan class and is based on the actual loss history experienced by the Bank over an actual three-year rolling calculation. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment and with the exogenous factor adjustments based on the risks present for each loan category. These exogenous factors include consideration of the following: concentrations of credit; delinquency & nonaccrual trends; economic & business conditions including evaluation of the national and regional economies and industries with significant loan concentrations; external factors including legal, regulatory or competitive pressures that may impact the loan portfolio; changes in the experience, ability, or size of the lending staff, management, or board of directors that may impact the loan portfolio; changes in underwriting standards, collection procedures, charge-off practices, or other changes in lending policies and procedures that may impact the loan portfolio; loss and recovery trends; changes in portfolio size and mix; and trends in problem loans.

Purchased Credit-Impaired Loans

The Company acquires groups of loans in conjunction with mergers, some of which have shown evidence of credit deterioration since origination. These purchased credit-impaired loans are recorded at their estimated fair value, such that there is no carryover of the seller’s allowance for loan losses (“ALLL”). After acquisition, probable incurred credit losses are recognized by an increase in the ALLL.

Such purchased credit-impaired loans (“PCI”) are identified on an individual basis. The Company estimates the amount and timing of expected cash flows for each loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

A PCI loan may be resolved either through a sale of the loan, by working with the customer and obtaining partial or full repayment, by short sale of the collateral, or by foreclosure. A gain or loss on resolution would be recognized based on the difference between the proceeds received and the carrying amount of the loan.

PCI loans that met the criteria for nonaccrual may be considered performing, regardless of whether the customer is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loans to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount.

18


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

Loans held-for-sale

The following table presents loans held-for-sale by loan segment:

September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        47,430 $        70,105
Commercial real estate 41,811   7,712
Residential real estate   145   188
Total carrying amount $ 89,386 $ 78,005

As of September 30, 2017 and December 31, 2016, the commercial loans held-for-sale segment included the Company’s entire taxi medallion portfolio, with a carrying value of $47.4 million and $65.6 million, net of $15.3 million and $-0- million valuation allowance, respectively. The commercial real estate segment reflects multifamily loans, with a carrying value of $41.8 million as of September 30, 2017. These loans were designated as loans held-for-sale during the quarter ended September 30, 2017. No portion of the valuation allowance has been designated toward the loans held-for-sale within the commercial real estate segment.

Activity in the valuation allowance was as follows for periods presented:

      Three Months       Three Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $        12,325   $        -
Reduction from loans paid off (38 )     -
Increase in valuation allowance 3,000 -
Balance at end of period $ 15,287 $ -
 
 
Nine Months Nine Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $ - $ -
Reduction from loans paid off (38 ) -
Increase in valuation allowance   15,325 -
Balance at end of period $ 15,287 $ -

19


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

Loans receivable: The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at September 30, 2017 and December 31, 2016:

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        641,613 $        553,576
Commercial real estate 2,585,205 2,204,710
Commercial construction 399,453   486,228  
Residential real estate 264,244 232,547
Consumer 1,912   2,380
Gross loans   3,892,427   3,479,441
Net deferred loan fees (3,138 ) (3,609 )
Total loans receivable $ 3,889,289 $ 3,475,832

At September 30, 2017 and December 31, 2016, loan balances of approximately $1.9 billion and $1.8 billion, respectively, were pledged to secure borrowings from the FHLB of New York.

Purchased Credit-Impaired Loans: The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment of those loans is as follows at September 30, 2017 and December 31, 2016.

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        5,243   $        7,098
Commercial real estate   232   982
Total carrying amount $ 5,475 $ 8,080

For those purchased loans disclosed above, the Company did not increase the allowance for loan losses during both the three and nine months ended September 30, 2017 and September 30, 2016. There were no reversals from the allowance for loan losses during the three and nine months ended September 30, 2017 and 2016.

The following tables presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for the following periods:

      Three Months       Three Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $        2,496 $        3,233
Accretion of income (180 ) (185 )
Balance at end of period $ 2,316 $ 3,048
 
Nine Months Nine Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $ 2,860   $ 3,599
Accretion of income   (544 )   (551 )
Balance at end of period $ 2,316   $ 3,048

20


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

Loans Receivable on Nonaccrual Status: The following tables presents nonaccrual loans included in loans receivable by loan segment as of the periods presented:

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial   $        951 $        1,460
Commercial real estate   8,369   1,081
Residential real estate 4,435   3,193
Total loans receivable on nonaccrual status $ 13,755 $ 5,734

Nonaccrual loans and loans 90 days or greater past due and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment.

The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected. All loans past due 90 days or greater and all impaired loans are included in the appropriate category below.

Credit Quality Indicators: The following table presents information, excluding loans held-for-sale and net deferred loan fees, about the Company’s loan credit quality at September 30, 2017 and December 31, 2016:

September 30, 2017
            Special                  
Pass Mention Substandard Doubtful Total
(dollars in thousands)
Commercial $        630,818 $        3,882 $        6,913 $        - $        641,613
Commercial real estate 2,535,005 30,875 19,325 - 2,585,205
Commercial construction 393,625 3,239 2,589 - 399,453
Residential real estate 264,244 - - - 264,244
Consumer 1,912 - - - 1,912
Gross loans $ 3,825,604 $ 37,996 $ 28,827 $ - $ 3,892,427
 
December 31, 2016
Special
Pass Mention Substandard Doubtful Total
(dollars in thousands)
Commercial $ 539,961 $ 3,255 $ 10,360 $ - $ 553,576
Commercial real estate 2,154,343 31,173 19,194 - 2,204,710
Commercial construction 480,319 3,388 2,521 - 486,228
Residential real estate 228,990 - 3,557 - 232,547
Consumer 2,318 - 62 - 2,380
Gross loans $ 3,405,931 $ 37,816 $ 35,694 $ - $ 3,479,441

21


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

The following table provides an analysis of the impaired loans by segment as of September 30, 2017 and December 31, 2016:

      September 30, 2017
      Unpaid      
Recorded Principal Related
Investment Balance Allowance
No related allowance recorded (dollars in thousands)
Commercial $ 3,068 $ 3,073
Commercial real estate 19,221 19,283
Commercial construction 4,340 4,340  
Residential real estate 2,520 2,749
Consumer 46 46
Total $ 29,195 $ 29,491
 
With an allowance recorded
Commercial real estate $ 1,640 $ 2,052 $        110
 
Total
Commercial $ 3,068 $ 3,073 $ -
Commercial real estate 20,861 21,335   110
Commercial construction 4,340 4,340   -
Residential real estate 2,520 2,749 -
Consumer 46 46 -
Total (including allowance) $ 30,835 $ 31,543 $ 110
  
December 31, 2016
Unpaid
Recorded Principal Related
Investment Balance Allowance
No related allowance recorded (dollars in thousands)
Commercial $        3,637 $        4,063
Commercial real estate 18,288 18,288
Commercial construction 5,909 5,909
Residential real estate 1,851 2,055
Consumer 62 62
Total $ 29,747 $ 30,377
 
With an allowance recorded
Commercial real estate $ 1,244 $ 1,244 $ 145
 
Total
Commercial $ 3,637 $ 4,063 $ -
Commercial real estate   19,532   19,532 145
Commercial construction   5,909 5,909 -
Residential real estate 1,851 2,055 -
Consumer 62   62 -
Total (including allowance) $ 30,991 $ 31,621 $ 145

22


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by segment as of and for the three and nine months ended September 30, 2017 and 2016:

      Three Months Ended September 30,       Nine Months Ended September 30,
2017       2016 2017       2016
Average       Interest Average       Interest Average       Interest Average       Interest
Recorded Income Recorded Income Recorded Income Recorded Income
Investment Recognized Investment Recognized Investment Recognized Investment Recognized
(dollars in thousands)
Impaired loans (no allowance)  
 
Commercial $        3,100 $        34 $        6,704 $        66 $        3,149 $        115 $        4,317 $        86
Commercial real estate 19,302 221   9,129   65 18,813 424 8,167 118
Commercial construction   4,285 63   1,224 21 4,273 215 979 54
Residential real estate 2,529 2 3,271 5 2,551 6 3,247     15
Consumer   48   1 70 1 54 2   74 3
Total $ 29,264 $ 321 $ 20,398   $ 158 $ 28,840 $ 762 $ 16,784 $ 276
 
Impaired loans (allowance):
 
Commercial $ - $ - $ 91,393 $ 925 $ - $ - $ 85,620 $ 2,447
Commercial real estate 1,645 2 153 - 1,654 39 153 -
Total $ 1,645 $ 2 $ 91,546 $ 925 $ 1,654 $ 39 $ 85,773 $ 2,447
 
Total impaired loans:
 
Commercial $ 3,100 $ 34 $ 98,097 $ 991 $ 3,149 $ 115 $ 89,937 $ 2,533
Commercial real estate 20,947 223 9,282 65 20,467 463 8,320 118
Commercial construction 4,285 63 1,224 21 4,273 215 979 54
Residential mortgage 2,259 2 3,271 5 2,551 6 3,247 15
Consumer 48 1 70 1 54 2 74 3
 
Total $ 30,909 $ 323 $ 111,944 $ 1,083 $ 30,494 $ 801 $ 102,557 $ 2,723

Included in impaired loans at September 30, 2017 and December 31, 2016 are loans that are deemed troubled debt restructurings. The recorded investment in loans include accrued interest receivable and other capitalized costs such as real estate taxes paid on behalf of the borrower and loan origination fees, net, when applicable. Cash basis interest and interest income recognized on accrual basis approximate each other.

23


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at September 30, 2017 and December 31, 2016 by segment:

Aging Analysis

September 30, 2017
               90 Days or                    
Greater Past Total Past
30-59 Days 60-89 Days Due and Still Due and
Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans
(dollars in thousands)
Commercial $        199 $        288 $        4,209 $        951 $        5,647 $        635,966 $        641,613
Commercial real estate 586 8,057 - 8,369 17,012 2,568,193 2,585,205
Commercial construction     -   - - - - 399,453 399,453
Residential real estate 918   541   - 4,435 5,894 258,350 264,244
Consumer - 2 - - 2 1,910 1,912
Total $ 1,703 $ 8,888 $ 4,209 $ 13,755 $ 28,555 $ 3,863,872 $ 3,892,427
 
December 31, 2016
90 Days or
Greater Past Total Past
30-59 Days 60-89 Days Due and Still Due and
Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans
(dollars in thousands)
Commercial $ 475 $ 18 $ 4,630 $ 1,460 $ 6,583 $ 546,993 $ 553,576
Commercial real estate 4,928 1,584 663 1,081 8,256 2,196,454 2,204,710
Commercial construction - - - -     - 486,228   486,228
Residential real estate 2,131 388   -     3,193 5,712     223,835   232,547
Consumer - - - - - 2,380 2.380
Total $ 7,534 $ 1,990 $ 5,293 $ 5,734 $ 20,551 $ 3,458,890 $ 3,479,441

Included in the 90 days or greater past due and still accruing/accreting category as of both September 30, 2017 and December 31, 2016 are three purchased credit-impaired loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition.

24


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated credit quality, and the related portion of the allowance for loan losses (“ALLL”) that are allocated to each loan portfolio segment:

      September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
ALLL
Individually evaluated for impairment $        - $        110 $        - $        - $        - $        - $        110
Collectively evaluated for impairment 7,716 15,224 3,940 1,052 2 326 28,260
Acquired portfolio - 1,500 - - - - 1,500
Acquired with deteriorated credit quality - - - - - - -
Total ALLL $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870
 
Gross loans  
Individually evaluated for impairment $ 3,068 $ 20,861   $ 4,340   $ 2,520 $ 46   $ 30,835
Collectively evaluated for impairment 618,012 2,142,385 395,113 199,902   1,410   3,356,822
Acquired portfolio   15,290     421,727   - 61,822 456   499,295
Acquired with deteriorated credit quality 5,243 232 -   - -   5,475
Total gross loans $ 641,613 $ 2,585,205 $ 399,453 $ 264,244 $ 1,912 $ 3,892,427
 
December 31, 2016
Commercial Commercial Residential
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
ALLL
Individually evaluated for impairment $ - $ 145 $ - $ - $ - $ - $ 145
Collectively evaluated for impairment 6,632 12,438 4,789 958 3 779 25,599
Acquired portfolio - - - - - - -
Acquired with deteriorated credit quality - - - - - - -
Total ALLL $ 6,632 $ 12,583 $ 4,789 $ 958 $ 3 $ 779 $ 25,744
 
Gross loans
Individually evaluated for impairment $ 3,637 $ 19,532 $ 5,909 $ 1,851 $ 62 $ 30,991
Collectively evaluated for impairment 517,869 1,621,745 478,865 163,686 1,757 2,783,922
Acquired portfolio 24,972 562,451 1,454 67,010 561 656,448
Acquired with deteriorated credit quality 7,098 982 - - - 8,080
Total gross loans $ 553,576 $ 2,204,710 $ 486,228 $ 232,547 $ 2,380 $ 3,479,441

25


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

The Company’s allowance for loan losses is analyzed quarterly. Many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other factors inherent in the extension of credit. There have been no material changes to the allowance for loan losses (“ALLL”) methodology as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

A summary of the activity in the ALLL is as follows:

      Three Months Ended September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at June 30, 2017 $        7,238 $        15,389 $        4,241 $        985 $        2 $        546 $        28,401
 
Charge-offs - - - - (1 ) - (1 )
 
Recoveries 17 2 - - 1 - 20
 
Provision for loan losses 461 1,443 (301 ) 67 - (220 ) 1,450
 
Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870
 
Three Months Ended September 30, 2016
Commercial Commercial Residential
Commercial real estate construction real estate   Consumer Unallocated Total  
(dollars in thousands)
Balance at June 30, 2016 $ 15,548   $ 11,371 $ 4,040   $ 1,091   $ 4   $ 709   $ 32,763
 
Charge-offs   (1,878 ) - - (27 )   (5 ) - (1,910 )
 
Recoveries 1 10 - - 1 - 12
 
Provision for loan losses 6,725   (6 ) 32 110 4 (115 ) 6,750
   
Balance at September 30, 2016 $ 20,396 $ 11,375 $ 4,072 $ 1,174 $ 4 $ 594 $ 37,615

26


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

      Nine Months Ended September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at December 31, 2016 $        6,632 $        12,583 $        4,789 $        958 $        3 $        779 $        25,744
 
Charge-offs - (71 ) - - (12 ) - (83 )
 
Recoveries 158 50 - - 1 - 209
 
Provision for loan losses 926 4,272 (849 ) 94 10 (453 ) 4,000
 
Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940   $ 1,052 $ 2 $ 326 $ 29,870
  
Nine Months Ended September 30, 2016
Commercial Commercial Residential
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at December 31, 2015 $ 10,949   $ 10,926   $ 3,253 $ 976   $ 4   $ 464 $ 26,572
 
Charge-offs (2,396 ) - - (94 )   (10 )   -   (2,500 )
 
Recoveries 2 35 - 3 3 - 43
 
Provision for loan losses 11,841 414 819 289 7 130 13,500
 
Balance at September 30, 2016 $ 20,396 $ 11,375 $ 4,072 $ 1,174 $ 4 $ 594 $ 37,615

Troubled Debt Restructurings

Loans are considered to have been modified in a troubled debt restructuring (“TDRs”) when due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a troubled debt restructuring remains on nonaccrual status for a period of nine months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status.

At September 30, 2017, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due 90 days or greater and still accruing interest, or whose terms have been modified in troubled debt restructurings.

27


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

The following table presents a rollforward of TDRs and the related changes to the allowance for loan losses (“ALLL”) that occurred for the periods presented:

Nine Months Ended Year Ended
September 30, 2017 December 31, 2016
(dollars in thousands)
Recorded Recorded
      Investment       ALLL       Investment       ALLL
Troubled Debt Restructurings
  
Beginning balance $      13,818 $      - $      86,629 $      4,500
Additions 5,668 - 26,325 8,250
Payoffs/paydowns (1,309 ) - (2,616 ) -
Transfers (580 ) - (96,520 ) -
Other - - - (12,750 )
Ending balance $ 17,597 $ - $ 13,818 $ -

TDRs totaled $17.6 million at September 30, 2017, of which $4.8 million were on nonaccrual status and $12.8 million were performing under restructured terms. At December 31, 2016, TDRs totaled $13.8 million, of which $0.5 million were on nonaccrual status and $13.3 million were performing under restructured terms. TDRs as of September 30, 2017 did not increase the ALLL during the three and nine months ended September 30, 2017. There were no charge-offs in connection with a loan modification at the time of modification during the three or nine months ended September 30, 2017. There were no TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2017.

TDRs totaled $106.7 million at September 30, 2016, of which $1.4 million were on nonaccrual status and $105.3 million were performing under restructured terms. The Company had allocated $12.5 in specific allocations with respect to loans whose loan terms had been modified in troubled debt restructurings as of September 30, 2016. TDRs as of September 30, 2016 increased the ALLL by $5.0 and $8.3 million during the three and nine months ended September 30, 2016, respectively.

The $12.5 million in specific allocations referenced above were associated with New York City taxi medallion lending and were calculated based on the present value of estimated cash flows, including contractual debt interest service through maturity, and principal repayments based on the estimated fair value of the collateral excluding any consideration for personal guarantees of borrowers, which provide an additional source of repayment but cannot be relied upon.

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016 (dollars in thousands):

Pre-Modification Post-Modification
Outstanding Outstanding
Number of Recorded Recorded
      Loans       Investment       Investment
Troubled debt restructurings:
Commercial 16 $ 19,311 $ 19,311
Commercial real estate 2 581 581
Commercial construction - - -
Residential real estate - - -
Consumer - - -
 
Total 18 $ 19,892 $ 19,892

Included in the above TDRs were 14 loans secured by 25 New York City taxi medallions totaling $17.3 million. These loan modifications included interest rate reductions and maturity extensions. All 14 loans were accruing prior to modification, while 13 remained in accrual status post-modification.

28


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 6. Loans and the Allowance for Loan Losses – (continued)

The TDRs described above increased the allowance for loan losses by $8.3 million during the nine months ended September 30, 2016. There were no charge-offs in connection with a loan modification at the time of modification during the three and nine months ended September 30, 2016. There were no TDRs for which there was a payment default within twelve months following the modification during the three or nine months ended September 30, 2016.

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

FASB ASC 820-10-05 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurements and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

FASB ASC 820-10-65 provides additional guidance for estimating fair value in accordance with FASB ASC 820-10-05 when the volume and level of activity for the asset or liability have significantly decreased. This ASC also includes guidance on identifying circumstances that indicate a transaction is not orderly.

FASB ASC 820-10-05 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820-10-05 are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (for example, supported with little or no market activity).

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2017 and December 31, 2016:

Securities Available-for-Sale

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of instruments which would generally be classified within Level 2 of the valuation hierarchy include municipal bonds and certain agency collateralized mortgage obligations. In certain cases where there is limited activity in the market for a particular instrument, assumptions must be made to determine the fair value of the instruments and these are classified as Level 3. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.

29


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Derivatives

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2017 and December 31, 2016 are as follows:

September 30, 2017
Fair Value Measurements at Reporting Date Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
            (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Recurring fair value measurements:
Assets
Securities:
Federal agency obligations $      55,938 $      - $      55,938 $      -
Residential mortgage pass-through securities 133,164 - 133,164 -
Commercial mortgage pass-through securities 4,130 - 4,130 -
Obligations of U.S. states and political subdivisions 144,976 - 127,111 17,865
Trust preferred securities 4,627 - 4,627 -
Corporate bonds and notes 30,088 - 30,088 -
Asset-backed securities 12,633 - 12,633 -
Certificates of deposit 627 - 627 -
Equity securities 630 630 - -
Other securities 13,703 13,703 - -
Total available-for-sale 400,516 14,333 368,318 17,865
Derivatives 164 - 164 -
Total Assets $ 400,680 $ 14,333 $ 368,482 $ 17,865

30


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments – (continued)

December 31, 2016
Fair Value Measurements at Reporting Date Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
            (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Recurring fair value measurements:
Assets
Securities:
Federal agency obligations $      52,837 $      - $      52,837 $      -
Residential mortgage pass-through securities 72,497 - 72,497 -
Commercial mortgage pass-through securities 4,209 - 4,209 -
Obligations of U.S. states and political subdivisions 150,605 - 132,387 18,218
Trust preferred securities 5,666 - 5,666 -
Corporate bonds and notes 36,928 - 36,928 -
Asset-backed securities 14,583 - 14,583 -
Certificates of deposit 983 - 983 -
Equity securities 568 568 - -
Other securities 14,414 14,414 - -
Total available-for-sale 353,290 14,982 320,090 18,218
Derivatives 88 - 88 -
Total assets $ 353,378 $ 14,982 $ 320,178 $ 18,218

There were no transfers between Level 1 and Level 2 during the quarter ended September 30, 2017 and during the year ended December 31, 2016.

Assets Measured at Fair Value on a Non-Recurring Basis

The Company may be required periodically to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis at September 30, 2017 and December 31, 2016:

Loans Held-for-Sale

Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Management obtains quotes or bids on all or part of these loans directly from the purchasing financial institutions (Level 2).

31


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. A portion of these loans, taxi medallion loans, have no material observable trading in any market. The approach to determining fair value involved several steps, including a detailed collateral analysis of the underlying medallions, performance projections for individual loans, discounted cash flow modeling and consideration of indicative bids, which at September 30, 2017 did not necessarily contemplate whole loan sales (Level 3).

Impaired Loans

The Company may record adjustments to the carrying value of loans based on fair value measurements, generally as partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with GAAP. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the market place and are also based on Level 3 inputs.

For assets measured at fair value on a non-recurring basis, the fair value measurements at September 30, 2017 and December 31, 2016 are as follows:

Fair Value Measurements at Reporting Date Using
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
September Assets Inputs Inputs
Assets measured at fair value on a nonrecurring basis:       30, 2017       (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Impaired loans:
Commercial real estate $      1,198 $      - $      - $      1,198
 
Loans held-for-sale:
Commercial 47,430 - - 47,430
 
Fair Value Measurements at Reporting Date Using
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
December 31, Assets Inputs Inputs
Assets measured at fair value on a nonrecurring basis: 2016 (Level 1) (Level 2) (Level 3)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,099 $ - $ - $ 1,099
 
Loans held-for-sale:
Commercial 70,105 - 4,509 65,596
Commercial real estate 7,712 - 7,712 -

Impaired loansCollateral dependent impaired loans at September 30, 2017 that required a valuation allowance were $1.3 million with a related valuation allowance of $0.1 million compared to $1.2 million with a related valuation allowance of $0.1 million at December 31, 2016.

Loans held-for-saleLoans held-for-sale at September 30, 2017 that required a valuation allowance were $62.7 million with a related valuation allowance of $15.3 million compared to $65.6 million with no valuation allowance at December 31, 2016.

32


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Assets Measured With Significant Unobservable Level 3 Inputs

Recurring basis

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2017 and year ended December 31, 2016:

Municipal
      Securities
(dollars in thousands)
Beginning balance, January 1, 2017 $                           18,218
Principal paydowns (353 )
Ending balance, September 30, 2017 $ 17,865
 
Municipal
Securities
(dollars in thousands)
Beginning balance, January 1, 2016 $ -
Other(1) 18,335
Principal paydowns (117 )
Ending balance, December 31, 2016 $ 18,218

(1) Includes transfers from held-to-maturity to available-for-sale designation

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2017 and December 31, 2016. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2017
Valuation Unobservable
      Fair Value       Techniques       Input       Range
(dollars in thousands)
Securities available-for-sale:
Municipal securities $      17,865 Discounted cash flows Discount rate 2.8%
 
December 31, 2016
Valuation Unobservable
Fair Value Techniques Input Range
(dollars in thousands)
Securities available-for-sale:
Municipal securities $ 18,218 Discounted cash flows Discount rate 2.8%

33


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Non-recurring basis

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2017
Valuation
Techniques Unobservable
Type       Fair Value       (weightings)       Input       Range (weighted average)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,918 Appraisals of
collateral value
Comparable sales 0% - 15% (6%)
 
Loans held-for-sale:
Commercial taxi medallion loans $ 47,430 Market approach
(70%)
Indications expressed as a
price to unpaid principal
balance
37 - 100 (46)
 
Discounted cash
flows (30%)
Discount rate 14%
 
December 31, 2016
Valuation
Techniques Unobservable
Type Fair Value (weightings) Input Range (weighted average)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,099 Appraisals of
collateral value
Comparable sales 0% - 15% (6%)
 
Loans held-for-sale:
Commercial taxi medallion loans $ 65,596 Market approach
(70%)
Indications under securitized
transactions expressed as a
price to unpaid principal
balance
40 - 100 (59)
 
Discounted cash
flows (30%)
Discount Rate 14%

34


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Fair Value of Financial Instruments

FASB ASC 825-10 requires all entities to disclose the estimated fair value of their financial instrument assets and liabilities. For the Company, as for most financial institutions, the majority of its assets and liabilities are considered financial instruments as defined in FASB ASC 825-10. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. It is also the Company’s general practice and intent to hold its financial instruments to maturity and not to engage in trading or sales activities except for loans held-for-sale and securities available-for-sale. Therefore, significant estimations and assumptions, as well as present value calculations, were used by the Company for the purposes of this disclosure.

Cash and Cash Equivalents. The carrying amounts of cash and short-term instruments approximate fair values.

FHLB Stock. It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability.

Loans. The fair value of the Company’s loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans were segregated by types such as commercial, residential and consumer loans. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price and therefore, while permissible for presentation purposes under ASC 825-10, do not conform to ASC 820-10.

Deposits. The carrying amounts of deposits with no stated maturities (i.e., noninterest-bearing, savings, NOW, and money market deposits) are assigned fair values equal to the carrying amounts payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows using estimated rates currently offered for alternative funding sources of similar remaining maturity.

Term Borrowings and Subordinated Debentures. The fair value of the Company’s long-term borrowings and subordinated debentures was calculated using a discounted cash flow approach and applying discount rates currently offered based on weighted remaining maturities.

Accrued Interest Receivable/Payable. The carrying amounts of accrued interest approximate fair value resulting in a level 2 or level 3 classification based on the level of the asset or liability with which the accrual is associated.

35


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments – (continued)

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2017 and December 31, 2016:

Fair Value Measurements
Quoted
Prices in
Active Significant
Markets for Other Significant
Identical Observable Unobservable
Carrying Fair Assets Inputs Inputs
      Amount       Value       (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
September 30, 2017
Financial assets:
Cash and due from banks $      141,262 $      141,262 $      141,262 $      - $      -
Securities available-for-sale 400,516 400,516 14,333 368,318 17,865
Restricted investment in bank stocks 29,672 n/a n/a n/a n/a
Loans held-for-sale 89,386 89,386 - 41,956 47,430
Net loans 3,859,419 3,862,104 - - 3,862,104
Derivatives 164 164 - 164 -
Accrued interest receivable 14,841 14,841 - 2,011 12,830
 
Financial liabilities:
Noninterest-bearing deposits 719,582 719,582 719,582 - -
Interest-bearing deposits 2,904,187 2,904,285 1,825,846 1,078,439 -
Borrowings 585,124 586,474 - 586,474 -
Subordinated debentures 54,657 56,519 - 56,519 -
Accrued interest payable 4,304 4,304 - 4,304 -
 
December 31, 2016
Financial assets:
Cash and due from banks $ 200,399 $ 200,399 $ 200,399 $ - $ -
Securities available-for-sale 353,290 353,290 14,982 320,090 18,218
Restricted investment in bank stocks 24,310 n/a n/a n/a n/a
Loans held-for-sale 78,005 78,005 - 12,409 65,596
Net loans 3,450,088 3,462,138 - - 3,462,138
Derivatives 88 88 - 88 -
Accrued interest receivable 12,965 12,965 - 2,026 10,939
 
Financial liabilities:
Noninterest-bearing deposits 694,977 694,977 694,977 - -
Interest-bearing deposits 2,649,294 2,649,717 1,681,044 968,673 -
Borrowings 476,280 478,286 - 478,286 -
Subordinated debentures 54,534 55,901 - 55,901 -
Accrued interest payable 4,142 4,142 - 4,142 -

36


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments – (continued)

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.

The Company’s remaining assets and liabilities, which are not considered financial instruments, have not been valued differently than has been customary with historical cost accounting. No disclosure of the relationship value of the Company’s core deposit base is required by FASB ASC 825-10.

Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

Note 8. Other Comprehensive Income (Loss)

The following represents the reclassifications out of accumulated other comprehensive (loss) income for the periods presented:

Affected Line item in the
Details about Accumulated Other Amounts Reclassified from Accumulated Amounts Reclassified from Accumulated Statement Where Net Income is
Comprehensive Income Components Other Comprehensive Income/(Loss) Other Comprehensive Income/(Loss) Presented
(dollars in thousands)
Three Months Ended September 30, Nine Months Ended September 30,
    2017     2016     2017     2016    
Sale of securities available-for-sale $                 - $                 4,131 $                 1,596 $                 4,234 Net gains on sales of securities available for sale
- (1,640 ) (579 ) (1,682 ) Income tax expense
- 2,491 1,017 2,552
 
Amortization of pension plan net actuarial losses (103 ) (204 ) (309 ) (306 ) Salaries and employee benefits
42 83 126 124 Income tax benefit
(61 ) (121 ) (183 ) (182 )
 
Total reclassification $ (61 ) $ 2,370 $ 834 $ 2,370

37


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 8. Other Comprehensive (Loss) Income – (continued)

Accumulated other comprehensive (loss) income (net of tax) at September 30, 2017 and December 31, 2016 consisted of the following:

September 30, December 31,
      2017       2016
(dollars in thousands)
Securities available-for-sale $             723 $           933
Cash flow hedge 97 52
Defined benefit pension and post-retirement plans (3,649 ) (3,831 )
Total accumulated other comprehensive loss $ (2,829 ) $ (2,846 )

Note 9. Stock-Based Compensation

The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of September 30, 2017. The maximum number of shares of common stock or equivalents, which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of September 30, 2017 are 750,000. The Company intends to issue all shares under the Plan in the form of newly issued shares.

Restricted stock and option awards typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock awards granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options and performance units do not.

All awards are issued at fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are handled on a case-by-case basis.

No options or performance units were granted during the three months ended September 30, 2017 or 2016.

38


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 9. Stock-Based Compensation – (continued)

Activity under the Company’s option plans as of and for the nine months ended September 30, 2017 were as follows:

Weighted-
Average
Weighted- Remaining
Average Contractual
Exercise Term Aggregate
      Shares       Price       (In Years)       Intrinsic Value
Outstanding at December 31, 2016 358,367 $      6.26
Granted - -
Exercised 10,846 10.89
Forfeited/cancelled/expired - -
Outstanding at September 30, 2017 347,521 $ 6.11 1.90 $      6,425,663
Exercisable at September 30, 2017 343,991 $ 6.03 1.86 $ 6,387,912

The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on September 30, 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2017. This amount changes based on the fair market value of the Parent Corporation’s stock.

The below table represents information regarding restricted shares currently outstanding at September 30, 2017:

Weighted-
Average
Nonvested Grant Date
      Shares       Fair Value
Nonvested at December 31, 2016        111,273 $      16.81
Granted 57,164 23.82
Vested (65,359 ) 16.49
Forfeited/cancelled/expired - -
Nonvested at September 30, 2017 103,078 $ 20.41

As of September 30, 2017, there was approximately $1,366,000 of total unrecognized compensation cost related to nonvested restricted shares granted under the plans. The cost is expected to be recognized over a weighted average period of one year.

At September 30, 2017, the specific number of shares related to performance unit awards that were expected to vest was 151,194, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. At September 30, 2017 the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 226,791.

A summary of the status of unearned performance unit awards and the change during the period is presented in the table below:

Weighted
Average Grant
Units Units Date Fair
      (expected)       (maximum)       Value
Unearned at December 31, 2016       151,572 189,455 $ 18.47
Awarded 24,891 37,336 22.75
Forfeited - - -
Adjustments (25,269 ) - 18.47
Unearned at September 30, 2017 151,194 226,791 $ 19.19

At September 30, 2017, compensation cost of approximately $1,006,000 related to non-vested performance unit awards not yet recognized is expected to be recognized over a weighted-average period of 1.3 years.

39


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 9. Stock-Based Compensation – (continued)

Effective January 1, 2017, the Company implemented ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment. Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Included in income tax expense for the three and nine months ended September 30, 2017 is a benefit of $-0- and $180 thousand, respectively, which resulted from the effect of implementing ASU 2016-09.

Note 10. Components of Net Periodic Pension Cost

The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until March 31, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated.

Three Months Ended Nine Months Ended
September 30, September 30,
      2017       2016       2017       2016
(dollars in thousands)
Interest cost $      119 $      129 $      358 $      386
Expected return on plan assets (160 ) (166 ) (480 ) (457 )
Net amortization 103 101 309 305
Recognized settlement loss - - 2 -
Net periodic pension cost $ 62 $ 64 $ 189 $ 234
 
Amortization of actuarial loss $ (103 ) $ (204 ) $ (309 ) $ (306 )
 
Total recognized in other comprehensive income $ (103 ) $ (204 ) $ (309 ) $ (306 )
 
Total recognized in net expense and OCI (before tax) $ (41 ) $ (140 ) $ (120 ) $ (72 )

Contributions

The Company did not make any contributions during the nine months ended September 30, 2017. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2017. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust.

Note 11 – FHLB Borrowings

The Company’s FHLB borrowings and weighted average interest rates are summarized below:

September 30, 2017 December 31, 2016
      Amount       Rate       Amount       Rate
(dollars in thousands)
Total FHLB borrowings $      585,124 1.61 % $      461,280 1.55 %
 
By remaining period to maturity:
Less than 1 year $ 415,124 1.41 % $ 231,280 1.02 %
1  year through less than 2 years 105,000 1.69 % 130,000 1.84 %
2 years through less than 3 years 25,000 1.85 % 35,000 1.60 %
3 years through less than 4 years 40,000 3.43 % 65,000 2.82 %
4 years through 5 years - - - -
Total FHLB borrowings $ 585,124 1.61 % $ 461,280 1.55 %

The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans.

40


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 11 – FHLB Borrowings – (continued)

Three of the FHLB notes ($2.5 million and $7.5 million each due April 2, 2018, and $5.0 million due July 16, 2018) contain a convertible option which allows the FHLB, at quarterly intervals, to convert the fixed convertible advance into replacement funding for the same or lesser principal based on any advance then offered by the FHLB at its current market rate. The Company has the option to repay these advances, if converted, without penalty. The remaining advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rate. The advances at September 30, 2017 were primarily collateralized by approximately $1.4 billion of commercial mortgage loans, net of required over collateralization amounts, under a blanket lien arrangement. At September 30, 2017 the Company had remaining borrowing capacity of approximately $796 million at FHLB.

Note 12 – Securities Sold Under Agreements to Repurchase

Repurchase agreements are secured borrowings. The Company pledges securities to secure those borrowings. Information concerning repurchase agreements is summarized as follows for the periods presented:

September 30, December 31, September 30,
      2017       2016       2016
(dollars in thousands)
Average daily balance during the year-to-date $      9,065 $      15,000 $      15,000
Average interest rate during the year-to-date 5.95 % 5.95 % 5.95 %
Maximum month end balance during the year-to-date $ 15,000 $ 15,000 $ 15,000
Weighted average interest rate during the year-to-date 5.95 % 5.95 % 5.95 %

As of September 30, 2017, there were no repurchase agreements outstanding. The previous outstanding repurchase agreement of $15.0 million was repaid on June 15, 2017.

December 31, 2016
Remaining Contractual Maturity of the Agreements
Overnight and Up to 30 Greater Than
      Continuous       Days       31-90 Days       90 Days       Total
(dollars in thousands)
Repurchase agreements & repurchase-to-maturity transaction
U.S. Treasury and agency securities $ - $ - $ - $ - $      -
Residential mortgage pass-through securities - - - 16,826 16,826
Total borrowings $ - $ - $ - $ 16,826 $ 16,826
 
Amounts related to agreements not included in offsetting disclosure in Note 14: $ 1,826

The fair value of securities pledged to secure repurchase agreements may decline. By contractual agreement, the fair value of securities pledged to secure repurchase agreements must meet or exceed the gross outstanding balance by 8%, or be subject to margin calls. Securities sold under agreements to repurchase are secured by securities with a carrying amount of $-0- and $16.8 million at September 30, 2017 and December 31, 2016, respectively.

41


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 13 - Subordinated Debentures

During 2003, the Company formed a statutory business trust, which exists for the exclusive purpose of (i) issuing Trust Securities representing undivided beneficial interests in the assets of the Trust; (ii) investing the gross proceeds of the Trust securities in junior subordinated deferrable interest debentures (subordinated debentures) of the Company; and (iii) engaging in only those activities necessary or incidental thereto. On December 19, 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly-owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The capital securities presently qualify as Tier I capital. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or in part prior to maturity. The floating interest rate on the subordinate debentures is three month LIBOR plus 2.85% and reprices quarterly. The rate at September 30, 2017 was 4.16%. These subordinated debentures and the related income effects are not eliminated in the consolidated financial statements as the statutory business trust is not consolidated in accordance with FASB ASC 810-10. Distributions on the subordinated debentures owned by the subsidiary trust have been classified as interest expense in the Consolidated Statements of Income.

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II at September 30, 2017 and December 31, 2016.

Securities Redeemable by
Issuance Date       Issued       Liquidation Value       Coupon Rate       Maturity       Issuer Beginning
12/19/2003 $      5,000,000 $1,000 per Capital Floating 3-month 01/23/2034 01/23/2009
Security LIBOR + 285 Basis
Points

During June 2015, the Parent Corporation issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). The Notes are non-callable for five years, have a stated maturity of July 1, 2025, and bear interest at a fixed rate of 5.75% per year, from and including September 30, 2015 to, but excluding July 1, 2020. From and including July 1, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three month LIBOR rate plus 393 basis points. As of September 30, 2017, unamortized costs related to the debt issuance was approximately $498,000.

42


CONNECTONE BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 14 – Offsetting Assets and Liabilities

Certain financial instrument-related assets and liabilities may be eligible for offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements. However, the Company does not elect to offset such arrangements on the consolidated financial statements. The Company enters into interest rate swap agreements with financial institution counterparties. For additional detail regarding interest rate swap agreements refer to Note 5. In the event of default on, or termination of, any one contract, both parties have the right to net settle multiple contracts. Also, certain interest rate swap agreements may require the Company to receive or pledge cash or financial instrument collateral based on the contract provisions.

The Company also entered into an agreement to sell securities subject to an obligation to repurchase the same or similar securities, referred to as a repurchase agreement. Under this agreement, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated statement of condition, while the securities underlying the repurchase agreements remain in the respective securities account, therefore there is no offsetting or netting of the securities assets with the repurchase agreement liability. The following table presents information about financial instruments that are eligible for offset as of September 30, 2017 and December 31, 2016:

Gross Amounts Not Offset
Gross Amounts Net Amounts of Cash or
Offset in the   Assets Presented in Financial Financial
Gross Amounts Statement of the Statement of Instruments Instrument Net
     Recognized      Financial Position      Financial Position      Recognized      Collateral      Amount
(dollars in thousands)
September 30, 2017
Assets:
Interest rate swaps $      164 $      - $      164 $      - $      - $      164
Liabilities:
Repurchase agreements $ - $ - $ - $ - $ - $ -
December 31, 2016
Assets:
Interest rate swaps $ 88 $ - $ 88 $ - $ - $ 88
Liabilities:
Repurchase agreements $ 15,000 $ - $ 15,000 $ - $ 15,000 $ -

Note 15 – Subsequent Event

On November 2, 2017, all of the Bank’s loans secured by New York City medallions, which had been classified as held-for-sale since December 31, 2016, were returned to the loans held-for-investment portfolio. As of September 30, 2017, the portfolio totaled $47.4 million, net of a $15.3 million valuation allowance. This transfer of the loans to held-for-investment will be recorded at the fair value of the loans held-for-sale with any difference between the fair value determined as of the transfer date and the carrying value as of September 30, 2017 to be recognized in noninterest expense during the fourth quarter 2017. The Company currently estimates a pretax charge of approximately $0.5 million to reflect this transfer. Management’s decision is based on its current view that a strategy to work out the credits through cash flow generated by borrowers’ operations is now superior, from a financial perspective, to a disposition via a sale to a third-party. This decision reflects (i) a reduced level of interest on the part of institutional investors to purchase taxi medallion loans, especially for relatively smaller portfolios such as the Bank’s and (ii) the Company’s increasing success at restructuring loans in the portfolio to monthly payment terms that can be supported through borrowers’ operations, although the collectability of principal balloon payments at maturity remains uncertain.

43


Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The purpose of this analysis is to provide the reader with information relevant to understanding and assessing the Company’s results of operations for the periods presented herein and financial condition as of September 30, 2017 and December 31, 2016. In order to fully understand this analysis, the reader is encouraged to review the consolidated financial statements and accompanying notes thereto appearing elsewhere in this report.

Cautionary Statement Concerning Forward-Looking Statements

This report includes forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, that involve inherent risks and uncertainties. This report contains certain forward-looking statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of ConnectOne Bancorp Inc. and its subsidiaries, including statements preceded by, followed by or that include words or phrases such as “believes,” “expects,” “anticipates,” “plans,” “trend,” “objective,” “continue,” “remain,” “pattern” or similar expressions or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions. There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to: (1) competitive pressures among depository institutions may increase significantly; (2) changes in the interest rate environment may reduce interest margins; (3) prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions may vary substantially from period to period; (4) general economic conditions may be less favorable than expected; (5) political developments, sovereign debt problems, wars or other hostilities may disrupt or increase volatility in securities markets or other economic conditions; (6) legislative or regulatory changes or actions may adversely affect the businesses in which ConnectOne Bancorp is engaged, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and regulations issued thereunder; (7) changes and trends in the securities markets may adversely impact ConnectOne Bancorp; (8) a delayed or incomplete resolution of regulatory issues could adversely impact planning by ConnectOne Bancorp; (9) the impact on reputation risk created by the developments discussed above on such matters as business generation and retention, funding and liquidity could be significant; and (10) the outcome of regulatory and legal investigations and proceedings may not be anticipated. Further information on other factors that could affect the financial results of ConnectOne Bancorp is included in Item 1a. of ConnectOne Bancorp’s Annual Report on Form 10-K and in ConnectOne Bancorp’s other filings with the Securities and Exchange Commission. These documents are available free of charge at the Commission’s website at http://www.sec.gov and/or from ConnectOne Bancorp, Inc.

Critical Accounting Policies and Estimates

The accounting and reporting policies followed by ConnectOne Bancorp, Inc. and its subsidiaries (collectively, the “Company”) conform, in all material respects, to GAAP. In preparing the consolidated financial statements, management has made estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and for the periods indicated in the consolidated statements of operations. Actual results could differ significantly from those estimates.

The Company’s accounting policies are fundamental to understanding Management’s Discussion and Analysis (“MD&A”) of financial condition and results of operations. The Company has identified the determination of the allowance for loan losses, the other-than-temporary impairment evaluation of securities, the evaluation of the impairment of goodwill and the evaluation of deferred tax assets to be critical because management must make subjective and/or complex judgments about matters that are inherently uncertain and could be most subject to revision as new information becomes available. Additional information on these policies is provided below.

Allowance for Loan Losses and Related Provision

The allowance for loan losses (“ALLL”) represents management’s estimate of probable incurred credit losses inherent in the loan portfolio. Determining the amount of the ALLL is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on historical loss experience, individual credit situation and consideration of current economic trends and conditions, all of which may be susceptible to significant change. The loan portfolio also represents the largest asset type on the consolidated statements of condition.

The evaluation of the adequacy of the ALLL includes, among other factors, an analysis of historical loss rates by loan category applied to current loan totals. However, actual loan losses may be higher or lower than historical trends, which vary. Actual losses on specified problem loans, which also are provided for in the evaluation, may vary from estimated loss percentages, which are established based upon a limited number of potential loss classifications.

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The ALLL is established through a provision for loan losses charged to expense. Management believes that the current ALLL will be adequate to absorb loan losses on existing loans that may become uncollectible based on the evaluation of known and inherent risks in the loan portfolio. The evaluation takes into consideration such factors as changes in the nature and size of the portfolio, overall portfolio quality, and specific problem loans and current economic conditions which may affect the borrowers’ ability to pay. The evaluation also details historical losses by loan category and the resulting loan loss rates which are projected for current loan total amounts. Loss estimates for specified problem loans are also detailed. All of the factors considered in the analysis of the adequacy of the ALLL may be subject to change. To the extent actual outcomes differ from management estimates, additional provisions for loan losses may be required that could materially adversely impact earnings in future periods. Additional information can be found in Note 1 of the Notes to Consolidated Financial Statements.

Other-Than-Temporary Impairment of Securities Available-for-Sale

Securities available-for-sale are evaluated on at least a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether a decline in their value is other-than-temporary. FASB ASC 320-10-65 clarifies the interaction of the factors that should be considered when determining whether a debt security is other–than-temporarily impaired. For debt securities, management assesses whether (a) it has the intent to sell the security and (b) it is more likely than not that it will be required to sell the security prior to its anticipated recovery.

In instances when a determination is made that an other-than-temporary impairment exists but the investor does not intend to sell the debt security and it is not more likely than not that it will be required to sell the debt security prior to its anticipated recovery, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income.

Fair Value of Securities

FASB ASC 820-10-35 clarifies the application of the provisions of FASB ASC 820-10-05 in an inactive market and how an entity would determine fair value in an inactive market. The Company applies the guidance in FASB ASC 820-10-35 when determining fair value for the Company’s private label collateralized mortgage obligations, pooled trust preferred securities and single name corporate trust preferred securities. See Note 8 of the Notes to Consolidated Financial Statements for further discussion.

FASB ASC 820-10-65 provides additional guidance for estimating fair value in accordance with FASB ASC 820-10-05 when the volume and level of activity for the asset or liability have significantly decreased. This ASC also includes guidance on identifying circumstances that indicate a transaction is not orderly.

Goodwill

The Company adopted the provisions of FASB ASC 350-10, which requires that goodwill be reported separate from other intangible assets in the Consolidated Statements of Condition and not be amortized but rather tested for impairment annually or more frequently if impairment indicators arise.

Income Taxes

The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. Judgment is required in assessing the future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns.

Fluctuations in the actual outcome of these future tax consequences could impact the Company’s consolidated financial condition or results of operations. Note 12 of the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2016 includes additional discussion on the accounting for income taxes.

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Operating Results Overview

Net income available to common stockholders for the three months ended September 30, 2017 amounted to $13.1 million compared to $11.9 million for the comparable three-month period ended September 30, 2016. The Company’s diluted earnings per share were $0.41 for the three months ended September 30, 2017 as compared with diluted earnings per share of $0.39 for the comparable three-month period ended September 30, 2016. The increase in net income available to common stockholders and diluted earnings per share was primarily attributable to an increase in net interest income and a decrease in provision for loan losses, partially offset by a decrease in net gains on sale of investment securities and an increase in other expenses. The increase in other expenses was primarily the result of an increase in a valuation allowance related to loans held-for-sale.

Net income available to common stockholders for the nine months ended September 30, 2017 amounted to $32.6 million compared to $33.1 million for the comparable nine-month period ended September 30, 2016. The Company’s diluted earnings per share were $1.01 for the nine months ended September 30, 2017 as compared with diluted earnings per share of $1.09 for the comparable nine-month period ended September 30, 2016. The decrease in net income available to common stockholders and diluted earnings per share was primarily attributable to an increase in noninterest expenses, which was primarily the result of an increase in a valuation allowance related to loans held-for-sale and a decrease in net gains on sale of investment securities, partially offset by an increase in net interest income, a decrease in provision for loan losses, and a decrease in income tax expense.

Net Interest Income and Margin

Net interest income is the difference between the interest earned on the portfolio of earning assets (principally loans and investments) and the interest paid for deposits and borrowings, which support these assets. Net interest income is presented on a tax-equivalent basis by adjusting tax-exempt income (primarily interest earned on obligations of state and political subdivisions) by the amount of income tax which would have been paid had the assets been invested in taxable issues. Net interest margin is defined as net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

Fully taxable equivalent net interest income for the third quarter of 2017 increased by $4.2 million, or 12.3%, from the third quarter of 2016, resulting from an increase in average interest-earning assets of 8.4% and the widening of the net interest margin by 12 basis-points to 3.44% from 3.32%. Included in net interest income was accretion and amortization of purchase accounting adjustments of $0.3 million and $1.0 million during the third quarter of 2017 and 2016, respectively. Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.41% in the third quarter of 2017, widening by 19 basis-points from the third quarter of 2016 adjusted net interest margin of 3.22%. The increase in the adjusted net interest margin was primarily attributable to a higher volume of loans which reduced excess cash balances resulting in an improved asset-mix, partially offset by increased cost in deposit funding and lower yields on securities.

Fully taxable equivalent net interest income for the nine months ended September 30, 2017 was $108.0 million, an increase of $9.1 million, or 9.2%, from the nine months ended September 30, 2016, resulting from an increase in average interest-earning assets of 7.8% and the widening of the net interest margin by 5 basis-points to 3.44% from 3.39%. Included in net interest income was accretion and amortization of purchase accounting adjustments of $1.3 million and $3.6 million during the nine months ended September 30, 2017 and 2016, respectively. Excluding these purchase accounting adjustments, the adjusted net interest margin was 3.40% for the nine months ended September 30, 2017, widening by 14 basis-points from the nine months ended September 30, 2016 adjusted net interest margin of 3.26%. The increase in the adjusted net interest margin was primarily attributable to higher yields on loans and an improved asset-mix, partially offset by lower yields on securities and an increased cost in deposit funding.

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The following tables, “Average Statements of Condition with Interest and Average Rates”, present for the three and nine months ended September 30, 2017 and 2016, the Company’s average assets, liabilities and stockholders’ equity. The Company’s net interest income, net interest spread and net interest margin are also reflected.

Average Statements of Condition with Interest and Average Rates

Three Months Ended September 30,
2017 2016
Interest Interest
Average Income/ Average Average Income/ Average
   Balance    Expense    Rate (8)    Balance    Expense    Rate (8)
(dollars in thousands)
Interest-earning assets:
Securities (1) (2) $     397,077 $     3,033       3.03 % $     406,802 $     3,293       3.22 %
Total loans (2) (3) (4) 3,898,404 43,683 4.45 3,407,278 38,010 4.44
Federal funds sold and interest-bearing with banks 53,820 170 1.25 202,106 261 0.51
Restricted investment in bank stocks 29,236 362 4.91 24,834 352 5.64
Total interest-earning assets 4,378,537 47,248 4.28 4,041,020 41,916 4.13
Noninterest-earning assets:
Allowance for loan losses (28,999 ) (34,052 )
Other noninterest-earning assets 364,474 337,828
Total assets $ 4,714,012 $ 4,344,796
 
Interest-bearing liabilities:
Interest-bearing deposits:
Time deposits $ 1,005,997 3,593 1.42 $ 1,007,530 3,323 1.31
Other interest-bearing deposits 1,816,162 2,520 0.55 1,637,500 1,836 0.45
Total interest-bearing deposits 2,822,159 6,113 0.86 2,645,030 5,159 0.78
 
Borrowings 570,711 2,353 1.64 488,015 2,139 1.74
Subordinated debentures (5) 55,155 813 5.85 55,155 814 5.87
Capital lease 2,688 40 5.90 2,814 42 5.94
Total interest-bearing liabilities 3,450,713 9,319 1.07 3,191,014 8,154 1.02
 
Demand deposits 688,707 640,323
Other liabilities 17,972 18,318
Total noninterest-bearing liabilities 706,679 658,641
Stockholders’ equity 556,620 495,141
Total liabilities and stockholders’ equity $ 4,714,012 $ 4,344,796
Net interest income (tax-equivalent basis) 37,929 33,762
Net interest spread (6) 3.21 % 3.11 %
Net interest margin (7) 3.44 % 3.32 %
Tax-equivalent adjustment (910 ) (738 )
Net interest income $ 37,019 $ 33,024

(1) Average balances are based on amortized cost.
(2) Interest income is presented on a tax-equivalent basis using 35% federal tax rate.
(3) Includes loan fee income.
(4) Loans include nonaccrual loans.
(5) Does not reflect netting of debt issuance costs of $525 and $697 as of September 30, 2017 and 2016, respectively.
(6) Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities and is presented on a tax- equivalent basis.
(7) Represents net interest income on a tax-equivalent basis divided by average total interest-earning assets.
(8) Rates are annualized.

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Average Statements of Condition with Interest and Average Rates

Nine Months Ended September 30,
2017 2016
Interest Interest
Average Income/ Average Average Income/ Average
   Balance    Expense    Rate (8)    Balance    Expense    Rate (8)
(dollars in thousands)
Interest-earning assets:
Securities (1) (2) $    384,782 $    9,272      3.22 % $    413,493 $    10,290       3.32 %
Total loans (2) (3) (4) 3,716,876 123,009 4.42 3,310,788 109,959 4.44
Federal funds sold and interest-bearing with banks 73,424 555 1.01 143,517 541 0.50
Restricted investment in bank stocks 26,177 982 5.02 29,818 1,074 4.81
Total interest-earning assets 4,201,259 133,818 4.26 3,897,616 121,864 4.18
Noninterest-earning assets:
Allowance for loan losses (27,533 ) (30,412 )
Other noninterest-earning assets 358,726 331,544
Total assets $ 4,532,452 $ 4,198,748
 
Interest-bearing liabilities:
Interest-bearing deposits:
Time deposits $ 982,149 9,996 1.36 $ 902,017 8,714 1.29
Other interest-bearing deposits 1,745,742 6,722 0.51 1,515,785 4,818 0.42
Total interest-bearing deposits 2,727,891 16,718 0.82 2,417,802 13,532 0.75
 
Borrowings 509,625 6,581 1.73 603,423 6,908 1.53
Subordinated debentures (5) 55,155 2,431 5.89 55,155 2,436 5.90
Capital lease 2,720 123 6.05 2,844 128 6.01
Total interest-bearing liabilities 3,295,391 25,853 1.05 3,079,224 23,004 1.00
 
Demand deposits 670,709 610,568
Other liabilities 17,652 21,872
Total noninterest-bearing liabilities 688,361 632,440
Stockholders’ equity 548,700 487,084
Total liabilities and stockholders’ equity $ 4,532,452 $ 4,198,748
Net interest income (tax-equivalent basis) 107,965 98,860
Net interest spread (6) 3.21 % 3.18 %
Net interest margin (7) 3.44 % 3.39 %
Tax-equivalent adjustment (2,704 ) (2,122 )
Net interest income $ 105,261 $ 96,738

(1) Average balances are based on amortized cost.
(2) Interest income is presented on a tax-equivalent basis using 35% federal tax rate.
(3) Includes loan fee income.
(4) Loans include nonaccrual loans.
(5) Does not reflect netting of debt issuance costs of $565 and $697 as of September 30, 2017 and 2016, respectively.
(6) Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities and is presented on a tax- equivalent basis.
(7) Represents net interest income on a tax-equivalent basis divided by average total interest-earning assets.
(8) Rates are annualized.

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Noninterest Income

Noninterest income totaled $1.8 million for the three months ended September 30, 2017, compared with $5.6 million for the three months ended September 30, 2016. There were no net securities gains/(losses) for the three months ended September 30, 2017 and $4.1 million in net securities gains for the three months ended September 30, 2016. Excluding the securities gains, noninterest income increased by $0.3 million when compared to the prior year third quarter. The increase was due primarily to a bank owned life insurance death benefit recorded during the third quarter of 2017. Noninterest income also includes bank owned life insurance and deposit, loan and other income for the three month periods.

Noninterest income totaled $6.2 million for the nine months ended September 30, 2017, compared with $8.3 million for the nine months ended September 30, 2016. For the nine months ended September 30, 2017 and 2016, there were $1.6 million and $4.2 million of net securities gains, respectively. Excluding the securities gains, noninterest income increased by $0.5 million when compared to the nine months ended September 30, 2016. The increase was due primarily to a bank owned life insurance death benefit recorded during the third quarter of 2017. Noninterest income also includes annuities and insurance commissions, bank owned life insurance and deposit, loan and other income for the nine month periods.

Noninterest Expenses

Noninterest expenses totaled $18.6 million for the three months ended September 30, 2017, compared to $14.6 million for the three months ended September 30, 2016. The increase from the prior year period was mainly attributable to an increase in the taxi medallions loans held-for-sale valuation allowance of $3.0 million. In addition, increases in salaries and employee benefits ($1.1 million), FDIC insurance premiums ($0.1 million) and data processing ($0.2 million) were partially offset by decreases in occupancy and equipment expenses ($0.1 million) and other expense ($0.2 million), contributing to the overall increase in noninterest expenses from the prior year third quarter.

Noninterest expenses totaled $62.2 million for the nine months ended September 30, 2017, compared to $43.3 million for the nine months ended September 30, 2016. The increase from the prior year period was mainly attributable to an increase in the taxi medallions loans held-for-sale valuation allowance of $15.3 million. In addition, increases in salaries and employee benefits ($2.6 million), FDIC insurance premiums ($0.6 million), data processing ($0.4 million) and other expense ($0.3 million) were partially offset by decreases in occupancy and equipment expenses ($0.2 million) contributing to the overall increase in noninterest expenses from the prior year nine month period.

On November 2, 2017, all of the Bank’s loans secured by New York City medallions, which had been classified as held-for-sale since December 31, 2016, were returned to the loans held-for-investment portfolio. As of September 30, 2017, the portfolio totaled $47.4 million, net of a $15.3 million valuation allowance. This transfer of the loans to held-for-investment will be recorded at the fair value of the loans held-for-sale with any difference between the fair value determined as of the transfer date and the carrying value as of September 30, 2017 to be recognized in noninterest expense during the fourth quarter 2017. The Company currently estimates a pretax charge of approximately $0.5 million to reflect this transfer. Management’s decision is based on its current view that a strategy to work out the credits through cash flow generated by borrowers’ operations is now superior, from a financial perspective, to a disposition via a sale to a third-party. This decision reflects (i) a reduced level of interest on the part of institutional investors to purchase taxi medallion loans, especially for relatively smaller portfolios such as the Bank’s and (ii) the Company’s increasing success at restructuring loans in the portfolio to monthly payment terms that can be supported through borrowers’ operations, although the collectability of principal balloon payments at maturity remains uncertain.

Income Taxes

Income tax expense was $5.6 million for the three months ended September 30, 2017, compared to $5.4 million for the three months ended September 30, 2016. The effective tax rate for the current quarter was 30.0% versus 31.5% for the prior-year quarter.

Income tax expense was $12.6 million for the nine months ended September 30, 2017, compared to $15.2 million for the nine months ended September 30, 2016. Included in income tax expense for the nine months ended September 30, 2017 is a benefit of $180 thousand which resulted from the effect of implementing ASU 2016-09, which relates to the recognition of excess tax benefits in the income statement (formerly through equity) that result from employee share-based payment awards. The effective tax rate for the nine months ended September 30, 2017 was 27.9% versus 31.5% for the prior-year period. Excluding any changes to the taxi medallion valuation allowance, the effective tax rate for 2017 is expected to be maintained in the low 30% range.

Financial Condition

Loan Portfolio

Commercial lending is the Company’s primary business activity. The Company’s loan portfolio consists of commercial, residential and consumer loans, serving the diverse client base in the Company’s market area. The composition of the Company’s portfolio remains relatively constant but can change due to factors such as the economic climate, the level and fluctuations in interest rates, real estate values and employment metrics. Organic growth (i.e., growth other than through mergers and acquisitions) is generated through business development, repeat client requests for new financings, penetration into existing markets and entry into new markets.

The Company seeks to create growth in commercial lending by offering client-focused products, competitive pricing and by capitalizing on the positive trends in its market area. Products offered are designed to meet the financial requirements of the Company’s clients. It is the objective of the Company’s credit policies to diversify the commercial loan portfolio to limit concentrations in any single segment.

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The following table sets forth the composition of our loan portfolio, excluding loans held-for-sale and unearned net origination fees and costs, by loan segment at the periods indicated.

September 30, 2017 December 31, 2016 Amount
Increase/
      Amount       %       Amount       %       (Decrease)
(dollars in thousands)
Commercial $      641,613 16.5 % $      553,576 15.9 % $      88,037
 
Commercial real estate 2,585,205 66.4 2,204,710 63.3 380,495
 
Commercial construction 399,453 10.2 486,228 14.0 (86,775 )
 
Residential real estate 264,244 6.8 232,547 6.7 31,697
 
Consumer 1,912 0.1 2,380 0.1 (468 )
 
Gross loans $ 3,892,427       100.0 % $ 3,479,441       100.0 % $ 412,986

At September 30, 2017, gross loans totaled $3.9 billion, an increase of $0.4 billion, or 11.9%, as compared to December 31, 2016. Net loan growth was primarily attributable to commercial real estate ($380 million), commercial ($88 million) and residential real estate ($32 million), partially offset by a decrease in construction ($87 million).

At September 30, 2017, acquired loans remaining in the loan portfolio totaled $0.5 billion, compared to $0.7 billion as of December 31, 2016.

Allowance for Loan Losses and Related Provision

The purpose of the allowance for loan losses (“ALLL”) is to establish a valuation allowance for probable incurred credit losses in the loan portfolio. Additions to the ALLL are made through provisions charged against current operations and through recoveries made on loans previously charged off. The ALLL is maintained at an amount considered adequate by management to provide for probable incurred credit losses inherent in the loan portfolio based upon historical losses and a periodic evaluation of external and portfolio risk factors. In establishing an appropriate ALLL, an assessment of the individual borrowers, a determination of the value of the underlying collateral, a review of historical loss experience and an analysis of the levels and trends of loan categories, delinquencies and problem loans are considered. Such factors as the level and trend of interest rates and current economic conditions and peer group statistics are also reviewed. The Company’s analysis of its ALLL also takes into consideration the potential impact that current trends may have on the Company’s borrower base.

Although management uses the best information available, the level of the ALLL remains an estimate, which is subject to significant judgment and short-term change. Various regulatory agencies, as an integral part of their examination process, periodically review the Company’s ALLL. Such agencies may require the Company to increase the ALLL based on their analysis of information available to them at the time of their examination. Furthermore, the majority of the Company’s loans are secured by real estate in the State of New Jersey. Future adjustments to the ALLL may be necessary due to economic factors impacting New Jersey real estate and the economy in general, as well as operating, regulatory and other conditions beyond the Company’s control.

At September 30, 2017, the ALLL was $29.9 million as compared to $25.7 million at December 31, 2016. Provisions to the ALLL for the three and nine months ended September 30, 2017 totaled $1.5 million and $4.0 million, respectively, compared to $6.8 million and $13.5 million for the same periods in 2016. The decrease from the prior year quarter and prior year nine month period was largely attributable to decreases in specific reserves, primarily related to the portfolio of taxi medallion loans.

There were $(19) thousand in net recoveries and $1.9 million in net charge-offs during the three months ended September 30, 2017 and 2016, respectively. There were $(126) thousand in net recoveries and $2.5 million in net charge-offs during the nine months ended September 30, 2017 and September 30, 2016, respectively. The ALLL as a percentage of total loans amounted to 0.77% at September 30, 2017 compared to 0.74% at December 31, 2016 and 1.09 % at September 30, 2016.

The level of the allowance for the respective periods of 2017 and 2016 reflects the credit quality within the loan portfolio, the loan volume recorded during the periods, the changing composition of the commercial and residential real estate loan portfolios and other related factors. In management’s view, the level of the ALLL at September 30, 2017 is adequate to cover losses inherent in the loan portfolio. Management’s judgment regarding the adequacy of the allowance constitutes a “Forward-Looking Statement” under the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from management’s analysis, based principally upon the factors considered by management in establishing the allowance.

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Changes in the ALLL are presented in the following table for the periods indicated.

Nine Months Ended
September 30,
      2017       2016
(dollars in thousands)
Average loans receivable at end of period $ 3,847,396 $ 3,406,800
 
Analysis of the ALLL:
Balance - beginning of quarter $       25,744 $       26,572
Charge-offs:
Commercial - (2,396 )
Commercial real estate (71 ) -
Residential real estate - (94 )
Consumer (12 ) (10 )
Total charge-offs (83 ) (2,500 )
Recoveries:
Commercial 158 2
Commercial real estate 50 35
Residential real estate - 3
Consumer 1 3
Total recoveries 209 43
Net recoveries (charge-offs) 126 (2,457 )
Provision for loan and losses 4,000 13,500
Balance - end of period $ 29,870 $ 37,615
Ratio of annualized net charge-offs during the period to average loans receivable during the period - % 0.06 %
 
Loans receivable $ 3,889,289 $ 3,445,476
ALLL as a percentage of loans receivable 0.77 % 1.09 %

Asset Quality

The Company manages asset quality and credit risk by maintaining diversification in its loan portfolio and through review processes that include analysis of credit requests and ongoing examination of outstanding loans, delinquencies, and potential problem loans, with particular attention to portfolio dynamics and mix. The Company strives to identify loans experiencing difficulty early enough to correct the problems, to record charge-offs promptly based on realistic assessments of current collateral values and cash flows, and to maintain an adequate allowance for loan losses at all times.

It is generally the Company’s policy to discontinue interest accruals once a loan is past due as to interest or principal payments for a period of ninety days. When a loan is placed on nonaccrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current income. Payments received on nonaccrual loans are generally applied against principal. A loan may be restored to an accruing basis when all past due amounts have been collected. Loans past due 90 days or more which are both well-secured and in the process of collection may remain on an accrual basis.

Nonperforming assets include nonaccrual loans and other real estate owned. Nonaccrual loans represent loans on which interest accruals have been suspended. In general, it is the policy of management to consider the charge-off of uncollectible amounts of loans at the point they become past due 90 days. Performing troubled debt restructured loans represent loans to borrowers experiencing financial difficulties on which a concession was granted, such as a reduction in interest rate below the current market rate for new debt with similar risks or modified repayment terms, and are performing under the restructured terms.

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The following table sets forth, as of the dates indicated, the amount of the Company’s nonaccrual loans, other real estate owned (“OREO”), performing troubled debt restructurings (“TDRs”) and loans past due 90 days or greater and still accruing/accreting:

September 30, December 31,
      2017       2016
(dollars in thousands)
Nonaccrual loans (held-for-investment) $ 13,755 $ 5,734
Nonaccrual loans (held-for-sale) 47,430 63,044
OREO - 626
Total nonperforming assets (1) $ 61,185 $ 69,404
 
Performing TDRs $ 12,749 $ 13,338
Loans 90 days or greater past due and still accruing (non-PCI) - -
Loans 90 days or greater past due and still accruing/accreting (PCI) $ 4,209 $ 5,293

(1)        Nonperforming assets are defined as nonaccrual loans (held-for-investment), nonaccrual loans (held-for-sale), and other real estate owned.

Nonaccrual loans (held-for-investment) to total loans receivable              0.35%              0.16%
Nonperforming assets to total assets 1.26% 1.57%
Nonperforming assets, performing TDRs, and loans 90 days or greater past due and still accruing to total loans 1.96% 2.48%

Securities Portfolio

At September 30, 2017, the principal components of the securities portfolio were federal agency obligations, mortgage-backed securities, obligations of U.S. states and political subdivisions, corporate bonds and notes, trust preferred securities, asset-backed securities and equity securities.

During the quarter ended September 30, 2016, the Company transferred all securities previously categorized as held-to-maturity to available-for-sale classification. The transfer resulted in an increase of approximately $210 million in amortized cost basis of available-for-sale securities and resulted in a net increase to accumulated other comprehensive income of $7.4 million, net of tax. This transfer enhanced liquidity and increased flexibility with regard to asset-liability management and balance sheet composition. As a result of the transfer, the Company believes it has tainted its held-to-maturity classification and judgment will be required in the future in determining when circumstances have changed such that management can assert that it has the intent and ability to hold debt securities to maturity. Based on this guidance, the Company does not expect to classify any securities as held-to-maturity within the near future.

For the three months ended September 30, 2017, average securities decreased $9.7 million to $397.1 million, or 9.1% of average interest-earning assets, from $406.8 million, or 10.1% of average interest-earning assets, for the comparable period in 2016. For the nine months ended September 30, 2017, average securities decreased $28.7 million to $384.8 million, or 9.2% of average interest-earning assets, from $413.5 million, or 10.6% of average interest-earning assets, for the comparable period in 2016.

At September 30, 2017, net unrealized gains on securities available-for-sale, which are carried as a component of accumulated other comprehensive income and included in stockholders’ equity, net of tax, amounted to $0.7 million as compared to $0.9 million at December 31, 2016. The decrease in net unrealized gains is predominantly attributable to the sales of available-for-sale securities during 2017 and fluctuations in prevailing market interest rates. The gross unrealized losses associated with agency securities and federal agency obligations, mortgage-backed securities, corporate bonds and tax-exempt securities are not considered to be other-than-temporary because their unrealized losses are related to changes in interest rates and do not affect the expected cash flows of the underlying collateral or issue.

52



Interest Rate Sensitivity Analysis

The principal objective of our asset and liability management function is to evaluate the interest-rate risk included in certain balance sheet accounts; determine the level of risk appropriate given our business focus, operating environment, and capital and liquidity requirements; establish prudent asset concentration guidelines; and manage the risk consistent with Board approved guidelines. We seek to reduce the vulnerability of our operations to changes in interest rates, and actions in this regard are taken under the guidance of the Bank’s Asset Liability Committee (the “ALCO”). The ALCO generally reviews our liquidity, cash flow needs, maturities of investments, deposits and borrowings, and current market conditions and interest rates.

We currently utilize net interest income simulation and economic value of equity (“EVE”) models to measure the potential impact to the Bank of future changes in interest rates. As of September 30, 2017 and December 31, 2016 the results of the models were within guidelines prescribed by our Board of Directors. If model results were to fall outside prescribed ranges, action, including additional monitoring and reporting to the Board, would be required by the ALCO and Bank’s management.

The net interest income simulation model attempts to measure the change in net interest income over the next one-year period, and over the next three-year period on a cumulative basis, assuming certain changes in the general level of interest rates.

Based on our model, which was run as of September 30, 2017, we estimated that over the next one-year period a 200 basis-point instantaneous increase in the general level of interest rates would increase our net interest income by 1.65%, while a 100 basis-point instantaneous decrease in interest rates would decrease net interest income by 1.84%. As of December 31, 2016, we estimated that over the next one-year period, a 200 basis-point instantaneous increase in the general level of interest rates would increase our net interest income by 5.79%, while a 100 basis-point instantaneous decrease in the general level of interest rates would decrease our net interest income by 2.93%.

Based on our model, which was run as of September 30, 2017, we estimated that over the next three years, on a cumulative basis, a 200 basis-point instantaneous increase in the general level of interest rates would increase our net interest income by 2.43%, while a 100 basis-point instantaneous decrease in interest rates would decrease net interest income by 2.75%. As of December 31, 2016, we estimated that over the next three years, on a cumulative basis, a 200 basis-point instantaneous increase in the general level of interest rates would increase our net interest income by 6.65%, while a 100 basis-point instantaneous decrease in interest rates would decrease net interest income by 4.43%.

An EVE analysis is also used to dynamically model the present value of asset and liability cash flows with instantaneous rate shocks of up 200 basis points and down 100 basis points. The economic value of equity is likely to be different as interest rates change. Our EVE as of September 30, 2017, would decline by 12.49% with an instantaneous rate shock of up 200 basis points, and increase by 4.51% with an instantaneous rate shock of down 100 basis points. Our EVE as of December 31, 2016, would decline by 7.97% with an instantaneous rate shock of up 200 basis points, and increase by 2.96% with an instantaneous rate shock of down 100 basis points.

Estimated Change in
Interest Rates Estimated EVE   Interest Rates Estimated Estimated Change in NII
(basis points)      EVE      Amount      %      (basis points)        NII      Amount      %
(dollars in thousands)
+300 $443,173 $(108,035) (19.6) +300 $154,260 $3,080 2.0
 
+200 482,343 (68,865)   (12.5)   +200   153,672 2,491 1.7
+100   520,848   (30,360)   (5.5) +100 152,821   1,640   1.1
  
0 551,208 - 0.0 0 151,180 - 0.0
-100 576,090 24,882 4.5 -100 148,406 (2,775) (1.8)

53



Estimates of Fair Value

The estimation of fair value is significant to a number of the Company’s assets, including loans held-for-sale and securities available-for-sale. These are all recorded at either fair value or the lower of cost or fair value. Fair values are volatile and may be influenced by a number of factors. Circumstances that could cause estimates of the fair value of certain assets and liabilities to change include a change in prepayment speeds, discount rates, or market interest rates. Fair values for most available-for-sale securities are based on quoted market prices. If quoted market prices are not available, fair values are based on judgments regarding future expected loss experience, current economic condition risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Impact of Inflation and Changing Prices

The consolidated financial statements and notes thereto presented elsewhere herein have been prepared in accordance with GAAP, which require the measurement of financial position and operating results in terms of historical dollars without considering the change in the relative purchasing power of money over time due to inflation. The impact of inflation is reflected in the increased cost of operations; unlike most industrial companies, nearly all of the Company’s assets and liabilities are monetary. As a result, interest rates have a greater impact on performance than do the effects of general levels of inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.

Liquidity

Liquidity is a measure of a bank’s ability to fund loans, withdrawals or maturities of deposits, and other cash outflows in a cost-effective manner. Our principal sources of funds are deposits, scheduled amortization and prepayments of loan principal, maturities of securities, and funds provided by operations. While scheduled loan payments and maturing investments are relatively predictable sources of funds, deposit flow and loan prepayments are greatly influenced by general interest rates, economic conditions and competition.

At September 30, 2017, the amount of liquid assets remained at a level management deemed adequate to ensure that, on a short and long-term basis, contractual liabilities, depositors’ withdrawal requirements, and other operational and client credit needs could be satisfied. As of September 30, 2017, liquid assets (cash and due from banks, interest-bearing deposits with banks and unencumbered securities) were $399.2 million, which represented 8.2% of total assets and 9.5% of total deposits and borrowings, compared to $428.2 million at December 31, 2016, which represented 9.7% of total assets and 11.2% of total deposits and borrowings on such date.

The Bank is a member of the FHLB of New York and, based on available qualified collateral as of September 30, 2017, had the ability to borrow $1.4 billion. In addition, at September 30, 2017, the Bank had in place borrowing capacity of $25 million through correspondent banks. The Bank also has a credit facility established with the Federal Reserve Bank of New York for direct discount window borrowings with capacity based on pledged collateral of $10.9 million. At September 30, 2017, the Bank had aggregate available and unused credit of approximately $796 million, which represents the aforementioned facilities totaling $1.4 billion net of $610 million in outstanding borrowings and letters of credit. At September 30, 2017, outstanding commitments for the Bank to extend credit were approximately $635 million.

Cash and cash equivalents totaled $141.3 million on September 30, 2017, decreasing by $59.1 million from $200.4 million at December 31, 2016. Operating activities provided $68.3 million in net cash. Investing activities used $508.7 million in net cash, primarily reflecting an increase in loans and securities. Financing activities provided $381.2 million in net cash, primarily reflecting a net increase of $279.5 million in deposits and a net increase of $109 million in borrowings (consisting of $780.0 million in new FHLB borrowings offset by notional repayments of $656.0 million of FHLB borrowings and $15.0 million of repayments of repurchase agreements).

54



Deposits

Total deposits increased by $279.5 million, or 8.4%, to $3.6 billion at September 30, 2017 from December 31, 2016. The increase was primarily attributable to increases in time deposits, money market, interest-bearing demand and noninterest-bearing demand deposits and partially offset by a slight decrease in savings deposits. The following table sets forth the composition of our deposit base by the periods indicated.

Amount
Increase/
September 30, 2017 December 31, 2016 (Decrease)
      Amount       %       Amount       %       2017 vs. 2016
(dollars in thousands)
Demand, noninterest-bearing $       719,582         19.8 % $       694,977         20.8 % $        24,605
 
Demand, interest-bearing 623,027 17.2 563,740 16.9 59,287
 
Money market 1,024,975 28.3 911,867 27.3 113,108
 
Savings 177,826 4.9 205,551 6.1 (27,725 )
 
Time 1,078,359 29.8 968,136 28.9 110,223
 
Total deposits $ 3,623,769 100.0 % $ 3,344,271 100.0 % $ 279,498

Subordinated Debentures

During December 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly-owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or part prior to maturity. The floating interest rate on the subordinated debentures is three month LIBOR plus 2.85% and reprices quarterly. The rate at September 30, 2017 was 4.16%.

During June 2015, the Parent Corporation issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”) to certain institutional accredited investors. The net proceeds from the sale of the Notes were used by the Parent Corporation to contribute $35.0 million of common equity to the Bank on September 30, 2015, and to repay $11.25 million of SBLF preferred issued to the U.S. Treasury on March 11, 2016. Remaining funds were used for general corporate purposes. The Notes are non-callable for five years, have a stated maturity of July 1, 2025, and bear interest at a fixed rate of 5.75% per year, from and including September 30, 2015 to, but excluding July 1, 2020. From and including July 1, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three month LIBOR rate plus 393 basis points.

55



Stockholders’ Equity

The Company’s stockholders’ equity was $558 million at September 30, 2017, an increase of $26.7 million from December 31, 2016. The increase in stockholders’ equity was primarily attributable to an increase of $25.4 million in retained earnings and approximately $1.4 million of equity issuance related to stock-based compensation. As of September 30, 2017, the Company’s tangible common equity ratio and tangible book value per share were 8.71% and $12.78, respectively. As of December 31, 2016, the tangible common equity ratio and tangible book value per share were 8.93% and $11.96, respectively. Total goodwill and other intangible assets were approximately $148 million and $149 million as of September 30, 2017 and December 31, 2016, respectively.

September 30, December 31,
      2017       2016
(dollars in thousands, except for share and
per share data)
Stockholders’ equity $         557,691 $         531,032
 
Less: Goodwill and other intangible assets 148,442 148,997
Tangible common stockholders’ equity $ 409,249 $ 382,035
 
Common stock outstanding at period end 32,015,317 31,948,307
 
Book value per common share $ 17.42 $ 16.62
Less: Goodwill and other intangible assets 4.64 4.66
Tangible book value per common share $ 12.78 $ 11.96

56



Regulatory Capital and Capital Adequacy

The maintenance of a solid capital foundation is a primary goal for the Company. Accordingly, capital plans and dividend policies are monitored on an ongoing basis. The Company’s objective with respect to the capital planning process is to effectively balance the retention of capital to support future growth with the goal of providing stockholders with an attractive long-term return on their investment.

The Company and the Bank are subject to regulatory guidelines establishing minimum capital standards that involve quantitative measures of assets, and certain off-balance sheet items, as risk-adjusted assets under regulatory accounting practices.

The following is a summary of regulatory capital amounts and ratios as of September 30, 2017 for the Company and the Bank, compared with minimum capital adequacy requirements and the regulatory requirements for classification as a well-capitalized depository institution (dollars in thousands).

To Be Well-Capitalized Under
                For Capital Adequacy       Prompt Corrective Action
ConnectOne Bancorp, Inc. Purposes Provisions
At September 30, 2017 Amount Ratio Amount      Ratio Amount      Ratio
  (dollars in thousands)
Tier 1 leverage capital $           416,736 9.13 % $           182,603 4.00 % N/A N/A
CET I risk-based ratio 411,582 9.40 197,042 4.50 N/A N/A
Tier 1 risk-based capital 416,736 9.52 262,723 6.00 N/A N/A
Total risk-based capital 496,606 11.34 350,397 8.00 N/A N/A
 
To Be Well-Capitalized Under
For Capital Adequacy Prompt Corrective Action
ConnectOne Bank Purposes Provisions
At September 30, 2017 Amount Ratio Amount Ratio Amount Ratio
(dollars in thousands)
Tier 1 leverage capital $ 461,300         10.11 % $ 182,539         4.00 % $           228,173        5.00 %
CET I risk-based ratio 461,300 10.54 197,019 4.50 284,583 6.50
Tier 1 risk-based capital 461,300 10.54 262,692 6.00 350,255 8.00
Total risk-based capital 491,170 11.22 350,255 8.00 437,819 10.00

N/A - not applicable

As of September 30, 2017, management believes that each of the Bank and the Company meet all capital adequacy requirements to which they are subject.

Basel III rules require a “capital conservation buffer” for both the Company and the Bank. When fully phased in on January 1, 2019, each of the Company and the Bank will be required to maintain a 2.5% capital conservation buffer, above and beyond the capital levels otherwise required under applicable regulation. The implementation of this capital conservation buffer began on January 1, 2016 at a level of 0.625%, and will increase by 0.625% on each subsequent January 1 until it reaches 2.5% on January 1, 2019. Under this guidance banking institutions with a CET1, Tier 1 Capital Ratio and Total Risk Based Capital Ratio above the minimum regulatory adequate capital ratios but below the capital conservation buffer will face constraints on their ability to pay dividends, repurchase equity and pay discretionary bonuses to executive officers, based on the amount of the shortfall.

As of September 30, 2017 both the Company and Bank satisfy the capital conservation buffer requirements applicable to them. The lowest ratio at the Company is the Total Risk Based Capital Ratio which was 2.09% above the minimum buffer ratio and, at the Bank, the lowest ratio was the Total Risk Based Capital Ratio which was 1.97% above the minimum buffer ratio.

57



Item 3. Qualitative and Quantitative Disclosures about Market Risks

Market Risk

Interest rate risk management is our primary market risk. See "Item 2- Management's Discussion and Analysis of Financial Condition and Results of Operation- Interest Rate Sensitivity Analysis" herein for a discussion of our management of our interest rate risk.

58


Item 4. Controls and Procedures

a) Disclosure controls and procedures. As of the end of the Company’s most recently completed fiscal quarter covered by this report, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s chief executive officer and chief financial officer, of the effectiveness of the Company’s disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-15. Based upon that evaluation, the Company’s chief executive officer and chief financial officer concluded that the Company’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and are operating in an effective manner and that such information is accumulated and communicated to management, including the Company’s chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

b) Changes in internal controls over financial reporting. There have been no changes in the Company’s internal controls over financial reporting that occurred during the Company’s last fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

59


PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not subject to any legal proceedings, which could have a materially adverse impact on its results of operations and financial condition.

Item 1a. Risk Factors

There have been no changes to the risks inherent in our business from those described under Item 1A – Risk Factors of our Annual Report on Form 10-K.

60


Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable

Item 3. Defaults Upon Senior Securities

Not applicable

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Not applicable

61


Item 6. Exhibits

Exhibit No.       Description
31.1 Certification of the Chief Executive Officer of the Parent Corporation Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
31.2 Certification of the Chief Financial Officer of the Parent Corporation Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
32.1 Certification of the Chief Executive Officer of the Parent Corporation Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
32.2 Certification of the Chief Financial Officer of the Parent Corporation Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
101.INS XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Definition Taxonomy Extension Linkbase Document
101.LAB XBRL Taxonomy Extension Label Linkbase Document
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

62


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf, by the undersigned, thereunto duly authorized.

CONNECTONE BANCORP, INC.
(Registrant)

By:    /s/ Frank Sorrentino III        By:    /s/ William S. Burns
  Frank Sorrentino III     William S. Burns
Chairman and Chief Executive Officer Executive Vice President and Chief Financial Officer
 
Date: November 3, 2017 Date: November 3, 2017

63


EX-31.1 2 connect3318581-ex311.htm CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER OF THE PARENT CORPORATION

EXHIBIT 31.1

CERTIFICATION

I, Frank Sorrentino III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of ConnectOne Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: November 3, 2017 /s/ Frank Sorrentino III
Frank Sorrentino III
Chairman and Chief Executive Officer


EX-31.2 3 connect3318581-ex312.htm CERTIFICATION OF THE CHIEF FINANCIAL OFFICER OF THE PARENT CORPORATION

EXHIBIT 31.2

CERTIFICATION

I, William S. Burns, certify that:

1. I have reviewed this quarterly report on Form 10-Q of ConnectOne Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

5. The Registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: November 3, 2017 /s/ William S. Burns
William S. Burns
Executive Vice President and Chief Financial Officer


EX-32.1 4 connect3318581-ex321.htm CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER OF THE PARENT CORPORATION

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of ConnectOne Bancorp, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2017 filed with the Securities and Exchange Commission (the “Report”), I, Frank Sorrentino III, Chairman and Chief Executive 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 to my knowledge:

1. The Report fully complies with the requirements of Section 13 (a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated results of operations of the Company for the periods presented.

Date: November 3, 2017 /s/ Frank Sorrentino III
Frank Sorrentino III
Chairman and Chief Executive Officer


EX-32.2 5 connect3318581-ex322.htm CERTIFICATION OF THE CHIEF FINANCIAL OFFICER OF THE PARENT CORPORATION

EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of ConnectOne Bancorp, Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2017 filed with the Securities and Exchange Commission (the “Report”), I, William S. Burns, 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 to my knowledge:

1. The Report fully complies with the requirements of Section 13 (a) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the consolidated financial condition of the Company as of the dates presented and the consolidated results of operations of the Company for the periods presented.

Date: November 3, 2017 /s/ William S. Burns
William S. Burns
Executive Vice President and Chief Financial Officer


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Nature of Operations and Principles of Consolidation</font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ConnectOne Bancorp, Inc. (the &#147;Parent Corporation&#148;) is incorporated under the laws of State of New Jersey and is a registered bank holding company. The Parent Corporation&#146;s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the &#147;Bank&#148; and, collectively with the Parent Corporation and the Parent Corporation&#146;s subsidiaries, the &#147;Company&#148;). The Bank&#146;s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), and NJCB Spec-1, LLC (a New Jersey limited liability company).</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower&#146;s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers&#146; business, real estate rental and consumer wages.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (&#147;GAAP&#148;) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017, or for any other interim period. The Company&#146;s 2016 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders&#146; equity. </font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 3. Earnings per Common Share</font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Financial Accounting Standards Board Accounting Standards Codification (&#147;FASB ASC&#148;) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (&#147;EPS&#148;). The restricted stock awards previously granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. 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width: 77%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="border-bottom: #000000 1pt solid; text-align: center; width: 10%"><font style="font: x-small Times New Roman">September 30,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="border-bottom: #000000 1pt solid; text-align: center; width: 11%"><font style="font: x-small Times New Roman">September 30,</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="15" style="text-align: center; width: 9%"><b><font style="font: xx-small Times New Roman">(in thousands, except for per share data)</font></b></td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff"><font style="font: x-small Times New Roman">Net income available to common stockholders</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,035</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">11,812</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">32,534</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">33,106</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"><font style="font: x-small Times New Roman">Earnings allocated to participating securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">42</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 2%"><font style="font: x-small Times New Roman">44</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">106</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">22</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Income attributable to common stock</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,077</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">11,856</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">32,640</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">33,128</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 77%; padding-left: 15pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Weighted average common shares outstanding, including participating securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">32,015</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">30,143</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">31,999</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">30,094</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff"><font style="font: x-small Times New Roman">Weighted average participating securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">(103</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">(113</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">(104</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">(98</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; padding-left: 15pt"><font style="font: x-small Times New Roman">Weighted average common shares outstanding</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">31,912</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">30,030</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">31,895</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">29,996</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 77%; background-color: #cceeff; padding-left: 15pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Incremental shares from assumed conversions of options, performance units and restricted shares</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">270</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">329</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">272</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">351</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"><font style="font: x-small Times New Roman">Weighted average common and equivalent shares outstanding</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">32,182</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 2%"><font style="font: x-small Times New Roman">30,359</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">32,167</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">30,347</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td></tr> <tr> <td colspan="17" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff"><font style="font: x-small Times New Roman">Earnings per common share:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 2%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; padding-left: 15pt"><font style="font: x-small Times New Roman">Basic</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">0.41</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">0.39</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">1.02</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">1.10</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Diluted</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">0.41</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">0.39</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.01</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; 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Securities Available-For-Sale </font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company&#146;s securities are all classified as available-for-sale at September 30, 2017 and December 31, 2016. Securities available-for-sale are reported at fair value with unrealized gains or losses included in equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of September 30, 2017 and December 31, 2016. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. 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width: 79%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Losses</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; 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width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">17,679</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(116</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,772</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(55</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-left: 15pt; width: 79%; text-indent: -15pt; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">77,391</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,021</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">49,079</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(457</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">28,312</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(564</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 79%; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Obligations of U.S. states and political subdivisions</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">54,073</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,044</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,016</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,507</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(71</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,507</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(71</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 79%; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Corporate bonds and notes</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">13,123</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(219</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,946</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(38</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">9,177</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(181</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 79%"><font style="font: x-small Times New Roman">Asset-backed securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">7,929</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(38</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">7,929</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(38</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 79%; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Other securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">11,193</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(273</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">5,911</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(56</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">5,282</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(217</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-left: 30pt; width: 79%; text-indent: -15pt; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Total temporarily impaired securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">186,667</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(2,837</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">123,631</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,496</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">63,036</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,341</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr></table><br /> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" colspan="20" style="width: 20%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" colspan="6" style="width: 6%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="6" style="width: 6%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Less than 12 Months</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="6" style="width: 6%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">12 Months or Longer</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" colspan="2" style="width: 2%; text-align: center"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="3" style="width: 3%; text-align: center"><font style="font: x-small Times New Roman">Unrealized</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="2" style="width: 2%; text-align: center"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="3" style="width: 3%; text-align: center"><font style="font: x-small Times New Roman">Unrealized</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="2" style="width: 2%; text-align: center"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="3" style="width: 3%; text-align: center"><font style="font: x-small Times New Roman">Unrealized</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="width: 2%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="width: 3%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Losses</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="width: 2%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="width: 3%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Losses</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="width: 2%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="width: 3%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Losses</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" colspan="20" style="width: 20%; text-align: center"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Federal agency obligation</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">22,672</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(271</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">21,416</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(262</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">1,256</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(9</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-left: 15pt; width: 82%; text-indent: -15pt; text-align: left"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">50,136</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(944</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">49,817</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(937</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">319</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(7</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="padding-left: 15pt; width: 82%; text-indent: -15pt; text-align: left"><font style="font: x-small Times New Roman">Obligations of U.S. states and political subdivisions</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">52,307</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(931</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">52,307</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(931</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Trust preferred securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">1,427</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(151</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">1,427</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(151</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Corporate bonds and notes</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">15,930</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(375</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">7,671</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(265</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">8,259</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(110</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Asset-backed securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">13,404</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(286</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">3,743</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(88</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">9,661</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(198</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Other securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">11,467</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">(325</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">11,467</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">(325</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-left: 30pt; width: 82%; text-indent: -15pt; text-align: left"><font style="font: x-small Times New Roman">Total temporarily impaired securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">167,343</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">(3,283</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">134,954</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">(2,483</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">32,389</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">(800</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr></table> <p style="text-align: left; text-indent: 15pt">&#160;</p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Securities having a carrying value of approximately $139.5 million and $121.9 million at September 30, 2017 and December 31, 2016, respectively, were pledged to secure public deposits, Federal Reserve Bank discount window borrowings, Federal Home Loan Bank (&#147;FHLB&#148;) advances and for other purposes required or permitted by law. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">As of September 30, 2017 and December 31, 2016, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders&#146; equity. </font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 5. Derivatives </font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Interest rate swaps were entered into on April 13, 2017, August 24, 2015, December 30, 2014 and October 15, 2014, each with a respective notional amount of $25 million and were designated as cash flow hedges of an FHLB advance. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income while the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Summary information about the interest rate swaps designated as cash flow hedges as of September 30, 2017, December 31, 2016 and September 30, 2016 are presented in the following table. </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-top: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">September 30,</font></td> <td nowrap="nowrap" style="border-top: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-top: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">December 31,</font></td> <td nowrap="nowrap" style="border-top: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-top: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">September 30,</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="11" style="text-align: center; width: 14%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Notional amount</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">100,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">75,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">75,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Weighted average pay rates</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">1.52</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">1.59</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">1.58</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Weighted average receive rates</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.07</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">0.69</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">0.70</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Weighted average maturity</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">2.7 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">2.8 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">3.1 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Fair value</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">(1,212</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Interest expense recorded on these swap transactions totaled approximately $95,000 and $326,000 for the three and nine months ended September 30, 2017, respectively, and $167,000 and $534,000 for the three and nine months ended September 30, 2016, respectively. </font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Cash Flow Hedge</font></b></p> <p style="text-align: left; 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Loans and the Allowance for Loan Losses </font></b></p> <p style="text-align: left; text-indent: 15pt"><b><i><font style="font: x-small Times New Roman">Loans </font></i></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, premiums and discounts related to purchase accounting, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Loan segments are defined as a group of loans, which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has five segments of loans: commercial, commercial real estate, commercial construction, residential real estate (including home equity) and consumer.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The recognition of interest income on commercial, commercial real estate, commercial construction and residential loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. A loan is moved to nonaccrual status in accordance with the Company&#146;s policy, typically after 90 days of non-payment. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The policy of the Company is to generally grant commercial, residential and consumer loans to residents and businesses within our market area. The borrowers&#146; abilities to repay their obligations are dependent upon various factors including the borrowers&#146; income and net worth, cash flows generated by the borrowers&#146; underlying collateral, value of the underlying collateral, and priority of the lender&#146;s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the control of the Company. The Company is therefore subject to risk of loss. The Company believes its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for loan losses are provided for all known and inherent risks. Collateral and/or personal guarantees are required for a large majority of the Company&#146;s loans. </font></p> <p style="text-align: left; text-indent: 15pt"><b><i><font style="font: x-small Times New Roman">Loans Held-for-Sale </font></i></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. A portion of these loans, taxi medallion loans, have no material observable trading in any market. Fair value is established with consideration of a range of market participant indications, for all or parts of these loans, and discounted cash flow analyses, which have significant unobservable inputs. See Note 7 for further discussion.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. </font></p> <p style="text-align: left; text-indent: 15pt"><b><i><font style="font: x-small Times New Roman">Allowance for Loan losses </font></i></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The allowance for loan losses is a valuation allowance for probable incurred credit losses. Losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management&#146;s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (&#147;TDRs&#148;) and classified as impaired. As part of the evaluation of impaired loans, the Company individually reviews for impairment all non-homogeneous loans internally classified as substandard or below. Generally, smaller impaired non-homogeneous loans and impaired homogeneous loans are collectively evaluated for impairment.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower&#146;s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan&#146;s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience, the primary factor, is determined by loan class and is based on the actual loss history experienced by the Bank over an actual three-year rolling calculation. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment and with the exogenous factor adjustments based on the risks present for each loan category. These exogenous factors include consideration of the following: concentrations of credit; delinquency &#38; nonaccrual trends; economic &#38; business conditions including evaluation of the national and regional economies and industries with significant loan concentrations; external factors including legal, regulatory or competitive pressures that may impact the loan portfolio; changes in the experience, ability, or size of the lending staff, management, or board of directors that may impact the loan portfolio; changes in underwriting standards, collection procedures, charge-off practices, or other changes in lending policies and procedures that may impact the loan portfolio; loss and recovery trends; changes in portfolio size and mix; and trends in problem loans. </font></p> <p style="text-align: left; text-indent: 15pt"><b><i><font style="font: x-small Times New Roman">Purchased Credit-Impaired Loans </font></i></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company acquires groups of loans in conjunction with mergers, some of which have shown evidence of credit deterioration since origination. 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text-indent: 15pt"><font style="font: x-small Times New Roman">As of September 30, 2017 and December 31, 2016, the commercial loans held-for-sale segment included the Company&#146;s entire taxi medallion portfolio, with a carrying value of $47.4 million and $65.6 million, net of $15.3 million and $-0- million valuation allowance, respectively. 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width: 89%; background-color: #cceeff"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,435</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,193</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 89%; 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text-indent: 15pt"><font style="font: x-small Times New Roman">The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified &#147;Pass&#148; are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as &#147;Special Mention&#148; have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company&#146;s credit position at some future date. Assets are classified &#147;Substandard&#148; if the asset has a well-defined weakness that requires management&#146;s attention to a greater degree than for loans classified special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as &#147;Doubtful&#148; if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a &#147;distinct possibility&#148; that a degree of loss will occur if the inadequacies are not corrected. 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width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Special</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Pass</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Mention</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Substandard</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; 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width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">630,818</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,882</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,585,205</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">393,625</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,239</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,589</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">399,453</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">264,244</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">264,244</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,912</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,912</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Gross loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,825,604</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">37,996</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">28,827</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,892,427</font></td></tr> <tr> <td colspan="16" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="14" style="border-bottom: #000000 1pt solid; text-align: center; width: 24%"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Special</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Pass</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Mention</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Substandard</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Doubtful</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Total</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="14" style="text-align: center; width: 24%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">539,961</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,255</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">10,360</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">553,576</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,154,343</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">31,173</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">19,194</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,204,710</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">480,319</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,388</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,521</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">486,228</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">228,990</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,557</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">232,547</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,318</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">62</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,380</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Gross loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,405,931</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">37,816</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">35,694</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,479,441</font></td></tr></table></div><br /> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following table provides an analysis of the impaired loans by segment as of September 30, 2017 and December 31, 2016:</font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 14%"><font style="font: x-small Times New Roman">September 30, 2017</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Unpaid</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Recorded</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Principal</font></td> <td style="text-align: center; width: 1%"></td> <td colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Related</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Investment</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Balance</font></td> <td style="text-align: center; width: 1%"></td> <td colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Allowance</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman"><u>No related allowance recorded</u></font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 14%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,068</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,073</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">19,221</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">19,283</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,340</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,340</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,520</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,749</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">29,195</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">29,491</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr> <td colspan="10" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman"><u>With an allowance recorded</u></font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,640</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,052</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">110</font></td></tr> <tr> <td colspan="10" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman"><u>Total</u></font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,068</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,073</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">20,861</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">21,335</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">110</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,340</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,340</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,520</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,749</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Total (including allowance)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">30,835</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">31,543</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">110</font></td></tr> <tr> <td colspan="10" style="width: 100%">&#160;&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 14%"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Unpaid</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Recorded</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Principal</font></td> <td style="text-align: center; width: 1%"></td> <td colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Related</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Investment</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Balance</font></td> <td style="text-align: center; width: 1%"></td> <td colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Allowance</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman"><u>No related allowance recorded</u></font></td> <td nowrap="nowrap" style="text-align: center; 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width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,063</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">18,288</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">18,288</font></td> <td nowrap="nowrap" style="text-align: left; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; border-bottom: Black 2pt double"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; border-bottom: Black 2pt double"><font style="font: x-small Times New Roman">29,747</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; border-bottom: Black 2pt double"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; 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width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,244</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,637</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,063</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">19,532</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">19,532</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">145</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">5,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">5,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,851</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,055</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #ffffff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 3%"></td></tr> <tr> <td colspan="25" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Commercial</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: right; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">91,393</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">925</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">85,620</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,447</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><font style="font: xx-small Times New Roman">Commercial real estate</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,645</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">153</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,654</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">39</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">153</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Total</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,645</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2</font></td> <td style="text-align: right; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">91,546</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">925</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,654</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">39</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">85,773</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,447</font></td></tr> <tr> <td colspan="25" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><u><font style="font: xx-small Times New Roman">Total impaired loans:</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr> <td colspan="25" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3,100</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">34</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">98,097</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">991</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3,149</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">115</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">89,937</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,533</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><font style="font: xx-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">20,947</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">223</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">9,282</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">65</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">20,467</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">463</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">8,320</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">118</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,285</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">63</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,224</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">21</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,273</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">215</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">979</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">54</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><font style="font: xx-small Times New Roman">Residential mortgage</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2,259</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3,271</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">5</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2,551</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">6</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3,247</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">15</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">48</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">70</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">54</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">541</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,435</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">5,894</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; 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text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,910</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,912</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,703</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">8,888</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,209</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">13,755</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">28,555</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,863,872</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,892,427</font></td></tr> <tr> <td colspan="22" style="width: 99%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="border-bottom: #000000 1pt solid; text-align: center; width: 34%"><font style="font: x-small Times New Roman">Dece</font><font style="font: x-small Times New Roman">mber 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">90 Days or</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Greater Past</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Total Past</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">30-59 Days</font></td> <td nowrap="nowrap" style="text-align: center; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Past Due</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Past Due</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Accruing</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; 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width: 64%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">475</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">18</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,630</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,460</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">6,583</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">546,993</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">553,576</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,928</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,584</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">663</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,081</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">8,256</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,196,454</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,204,710</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">486,228</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">486,228</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,131</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; 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width: 3%"><font style="font: x-small Times New Roman">223,835</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">232,547</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,380</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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text-indent: 15pt"><font style="font: x-small Times New Roman">The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated credit quality, and the related portion of the allowance for loan losses (&#147;ALLL&#148;) that are allocated to each loan portfolio segment: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="20" style="border-bottom: #000000 1pt solid; text-align: center; width: 34%"><font style="font: xx-small Times New Roman">September 30, 2017</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Residential</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">real estate</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Individually evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font><font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">110</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">110</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Collectively evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">7,716</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">15,224</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3,940</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,052</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; 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width: 3%"><font style="font: xx-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">30,835</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Collectively evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">618,012</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,142,385</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">395,113</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">199,902</font></td> <td nowrap="nowrap" style="text-align: left; 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text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">real estate</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">construction</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">real estate</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Unallocated</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Total</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="text-align: center; width: 34%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><u><font style="font: xx-small Times New Roman">ALLL</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Individually evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">145</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">145</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Collectively evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">6,632</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">12,438</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,789</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">958</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">779</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">25,599</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Acquired portfolio</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Acquired with deteriorated credit quality</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Total ALLL</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">6,632</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">12,583</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">4,789</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">958</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">779</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">25,744</font></td></tr> <tr> <td colspan="22" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><u><font style="font: xx-small Times New Roman">Gross loans</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Individually evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3,637</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">19,532</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">5,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,851</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">62</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">30,991</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Collectively evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">517,869</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,621,745</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">478,865</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">163,686</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,757</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,783,922</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Acquired portfolio</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">24,972</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">562,451</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,454</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">67,010</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">561</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">656,448</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Acquired with deteriorated credit quality</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">7,098</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">982</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; 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width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3,479,441</font></td></tr></table><br /> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company&#146;s allowance for loan losses is analyzed quarterly. 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text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">(301</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">67</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 58%; background-color: #cceeff"><font style="font: x-small Times New Roman">Balance at September 30,</font><font style="font: small Times New Roman"> </font><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(27</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(5</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; 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width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 58%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">real estate</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(94</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(10</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr> <td colspan="16" style="width: 100%; background-color: #cceeff">&#160;&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Beginning balance</font></td> <td nowrap="nowrap" style="text-align: left; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(96,520</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; 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text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(12,750</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Ending balance</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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text-indent: 15pt">&#160;</p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">TDRs totaled $17.6 million at September 30, 2017, of which $4.8 million were on nonaccrual status and $12.8 million were performing under restructured terms. At December 31, 2016, TDRs totaled $13.8 million, of which $0.5 million were on nonaccrual status and $13.3 million were performing under restructured terms. TDRs as of September 30, 2017 did not increase the ALLL during the three and nine months ended September 30, 2017. There were no charge-offs in connection with a loan modification at the time of modification during the three or nine months ended September 30, 2017. There were no TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2017.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">TDRs totaled $106.7 million at September 30, 2016, of which $1.4 million were on nonaccrual status and $105.3 million were performing under restructured terms. The Company had allocated $12.5 in specific allocations with respect to loans whose loan terms had been modified in troubled debt restructurings as of September 30, 2016. 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border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Pre-Modification</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Post-Modification</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; padding-left: 15pt"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr> <td colspan="9" style="width: 102%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">18</font></td> <td nowrap="nowrap" style="text-align: left; 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These loan modifications included interest rate reductions and maturity extensions. All 14 loans were accruing prior to modification, while 13 remained in accrual status post-modification.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The TDRs described above increased the allowance for loan losses by $8.3 million during the nine months ended September 30, 2016. There were no charge-offs in connection with a loan modification at the time of modification during the three and nine months ended September 30, 2016. There were no TDRs for which there was a payment default within twelve months following the modification during the three or nine months ended September 30, 2016.</font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 7. - Fair Value Measurements and Fair Value of Financial Instruments</font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">FASB ASC 820-10-05 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurements and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">FASB ASC 820-10-65 provides additional guidance for estimating fair value in accordance with FASB ASC 820-10-05 when the volume and level of activity for the asset or liability have significantly decreased. This ASC also includes guidance on identifying circumstances that indicate a transaction is not orderly.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">FASB ASC 820-10-05 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820-10-05 are as follows: </font></p> <p style="text-align: left; padding-left: 30pt"><i><font style="font: x-small Times New Roman">Level 1: </font></i><font style="font: x-small Times New Roman">Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.</font></p> <p style="text-align: left; padding-left: 30pt"><i><font style="font: x-small Times New Roman">Level 2: </font></i><font style="font: x-small Times New Roman">Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. </font></p> <p style="text-align: left; padding-left: 30pt"><i><font style="font: x-small Times New Roman">Level 3: </font></i><font style="font: x-small Times New Roman">Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (for example, supported with little or no market activity).</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">An asset&#146;s or liability&#146;s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company&#146;s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company&#146;s disclosures and those of other companies may not be meaningful. </font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Assets and Liabilities Measured at Fair Value on a Recurring Basis</font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following methods and assumptions were used to estimate the fair values of the Company&#146;s assets measured at fair value on a recurring basis at September 30, 2017 and December 31, 2016:</font></p> <p style="text-align: left; text-indent: 15pt"><i><font style="font: x-small Times New Roman">Securities Available-for-Sale</font></i></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of instruments which would generally be classified within Level 2 of the valuation hierarchy include municipal bonds and certain agency collateralized mortgage obligations. In certain cases where there is limited activity in the market for a particular instrument, assumptions must be made to determine the fair value of the instruments and these are classified as Level 3. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company&#146;s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.</font></p> <p style="text-align: left; text-indent: 15pt"><i><font style="font: x-small Times New Roman">Derivatives</font></i></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The fair value of derivatives is based on valuation models using observable market data as of the measurement date (level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2017 and December 31, 2016 are as follows: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%"><u><font style="font: x-small Times New Roman">September 30, 2017</font></u></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements at Reporting Date Using</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted Prices</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">in Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 1)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 2)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 3)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Recurring fair value measurements:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Federal agency obligations</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">55,938</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">55,938</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">133,164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">133,164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Commercial mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,130</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,130</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Obligations of U.S. states and political subdivisions</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">144,976</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">127,111</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">17,865</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Trust preferred securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,627</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,627</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Corporate bonds and notes</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">30,088</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">30,088</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Asset-backed securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">12,633</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">12,633</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Certificates of deposit</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">627</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">627</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Equity securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">630</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">630</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Other securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,703</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,703</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">400,516</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,333</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">368,318</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">17,685</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Derivatives</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total Assets</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">400,680</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,333</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">368,482</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">17,685</font></td></tr></table><br /> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%"><u><font style="font: x-small Times New Roman">December 31, 2016</font></u></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements at Reporting Date Using</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted Prices</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">in Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 1)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 2)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 3)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Recurring fair value measurements:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Federal agency obligations</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">52,837</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">52,837</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">72,497</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">72,497</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Commercial mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,209</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,209</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Obligations of U.S. states and political subdivisions</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">150,605</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">132,387</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">18,218</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Trust preferred securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5,666</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5,666</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Corporate bonds and notes</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">36,928</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">36,928</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Asset-backed securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,583</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,583</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Certificates of deposit</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">983</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">983</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Equity securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">568</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">568</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Other securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,414</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,414</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">353,290</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,982</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">320,090</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">18,218</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Derivatives</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total assets</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">353,378</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,982</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">320,178</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">18,218</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">There were no transfers between Level 1 and Level 2 during the quarter ended September 30, 2017 and during the year ended December 31, 2016. </font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Assets Measured at Fair Value on a Non-Recurring Basis </font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company may be required periodically to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company&#146;s assets measured at fair value on a non-recurring basis at September 30, 2017 and December 31, 2016:</font></p> <p style="text-align: left; text-indent: 15pt"><i><font style="font: x-small Times New Roman">Loans Held-for-Sale</font></i></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Management obtains quotes or bids on all or part of these loans directly from the purchasing financial institutions (Level 2).</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. A portion of these loans, taxi medallion loans, have no material observable trading in any market. The approach to determining fair value involved several steps, including a detailed collateral analysis of the underlying medallions, performance projections for individual loans, discounted cash flow modeling and consideration of indicative bids, which at September 30, 2017 did not necessarily contemplate whole loan sales (Level 3). </font></p> <p style="text-align: left; text-indent: 15pt"><i><font style="font: x-small Times New Roman">Impaired Loans</font></i></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company may record adjustments to the carrying value of loans based on fair value measurements, generally as partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with GAAP. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the market place and are also based on Level 3 inputs. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">For assets measured at fair value on a non-recurring basis, the fair value measurements at September 30, 2017 and December 31, 2016 are as follows: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements at Reporting Date Using</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Prices</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">in Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">September</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 88%"><u><font style="font: x-small Times New Roman">Assets measured at fair value on a nonrecurring basis:</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">30, 2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 1)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 2)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 3)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%; background-color: #ffffff"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #cceeff"><font style="font: x-small Times New Roman">Impaired loans:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,198</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,198</font></td></tr> <tr> <td colspan="13" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #cceeff"><font style="font: x-small Times New Roman">Loans held-for-sale:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,430</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,430</font></td></tr> <tr> <td colspan="13" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements at Reporting Date Using</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Prices</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">in Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">December 31,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 88%"><u><font style="font: x-small Times New Roman">Assets measured at fair value on a nonrecurring basis:</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 1)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 2)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 3)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%; background-color: #ffffff"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #cceeff"><font style="font: x-small Times New Roman">Impaired loans:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,099</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,099</font></td></tr> <tr> <td colspan="13" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #cceeff"><font style="font: x-small Times New Roman">Loans held-for-sale:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">70,105</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,509</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">65,596</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">7,712</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><u><font style="font: x-small Times New Roman">Impaired loans</font></u><b><font style="font: x-small Times New Roman"> &#150; </font></b><font style="font: x-small Times New Roman">Collateral dependent impaired loans at September 30, 2017 that required a valuation allowance were $1.3 million with a related valuation allowance of $0.1 million compared to $1.2 million with a related valuation allowance of $0.1 million at December 31, 2016. </font></p> <p style="text-align: left; text-indent: 15pt"><u><font style="font: x-small Times New Roman">Loans held-for-sale</font></u><b><font style="font: x-small Times New Roman"> &#150; </font></b><font style="font: x-small Times New Roman">Loans held-for-sale at September 30, 2017 that required a valuation allowance were $62.7 million with a related valuation allowance of $15.3 million compared to $65.6 million with no valuation allowance at December 31, 2016. </font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Assets Measured With Significant Unobservable Level 3 Inputs</font></b></p> <p style="text-align: left; text-indent: 15pt"><i><font style="font: x-small Times New Roman">Recurring basis </font></i></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2017 and year ended December 31, 2016: </font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">Municipal</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Securities</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Beginning balance, January 1, 2017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">18,218</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">Principal paydowns</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(353</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Ending balance, September 30, 2017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">17,865</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr> <td colspan="5" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">Municipal</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Securities</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Principal paydowns</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(117</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">Ending balance, December 31, 2016</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">18,218</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td></tr></table></div><br /> <table cellspacing="0" cellpadding="0" border="0"> <tr> <td nowrap="nowrap" style="vertical-align: top; padding-right: 8pt; padding-left: 15pt"><font style="font: x-small Times New Roman"><sup>(1)</sup></font></td> <td style="width: 100%"><font style="font: x-small Times New Roman">Includes transfers from held-to-maturity to available-for-sale designation</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following methods and assumptions were used to estimate the fair values of the Company&#146;s assets measured at fair value on a recurring basis at September 30, 2017 and December 31, 2016. 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width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 91%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Valuation</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Unobservable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 91%"></td> <td nowrap="nowrap" style="text-align: left; 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width: 91%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"><strong><font style="font: x-small Times New Roman">(dollars in thousands)</font></strong></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Valuation</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Unobservable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 91%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Fair Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 91%; padding-left: 15pt"><font style="font: x-small Times New Roman">Municipal securities</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">18,218</font></td> <td nowrap="nowrap" style="text-align: center; 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width: 64%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 9%"><font style="font: x-small Times New Roman">Valuation</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td style="text-align: center; width: 20%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; 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text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="vertical-align: top; text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial taxi medallion loans</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,430</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; 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text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; 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text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td style="vertical-align: top; text-align: center; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"><u><font style="font: x-small Times New Roman">December 31, 2016</font></u></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td style="vertical-align: top; text-align: center; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 9%"><font style="font: x-small Times New Roman">Valuation</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td style="vertical-align: top; text-align: center; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 9%"><font style="font: x-small Times New Roman">Techniques</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td style="vertical-align: top; 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text-align: center; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; vertical-align: top; text-align: center; width: 20%"><font style="font: x-small Times New Roman">Input</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; vertical-align: top; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Range (weighted average)</font></td></tr> <tr style="vertical-align: bottom"> <td colspan="10" style="vertical-align: top; text-align: center; width: 100%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"><u><font style="font: x-small Times New Roman">Impaired loans</font></u><font style="font: x-small Times New Roman">:</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,099</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"><font style="font: x-small Times New Roman">Appraisals of<br />collateral value</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"><font style="font: x-small Times New Roman">Comparable sales</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"><font style="font: x-small Times New Roman">0% - 15% (6%)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"><u><font style="font: x-small Times New Roman">Loans held-for-sale:</font></u></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="vertical-align: top; text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial taxi medallion loans</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: right; width: 1%"><font style="font: x-small Times New Roman">65,596</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"><font style="font: x-small Times New Roman">Market approach<br />(70%)</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 20%"><font style="font: x-small Times New Roman">Indications under securitized<br />transactions expressed as a<br />price to unpaid principal<br /> balance</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"><font style="font: x-small Times New Roman">40 - 100 (59)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"><font style="font: x-small Times New Roman">Discounted cash<br />flows (30%)</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"><font style="font: x-small Times New Roman">Discount Rate</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14%</font></td></tr></table><br /> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Fair Value of Financial Instruments</font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">FASB ASC 825-10 requires all entities to disclose the estimated fair value of their financial instrument assets and liabilities. For the Company, as for most financial institutions, the majority of its assets and liabilities are considered financial instruments as defined in FASB ASC 825-10. Many of the Company&#146;s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. It is also the Company&#146;s general practice and intent to hold its financial instruments to maturity and not to engage in trading or sales activities except for loans held-for-sale and securities available-for-sale. Therefore, significant estimations and assumptions, as well as present value calculations, were used by the Company for the purposes of this disclosure.</font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Cash and Cash Equivalents.</font></b><font style="font: x-small Times New Roman"> The carrying amounts of cash and short-term instruments approximate fair values. </font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">FHLB Stock.</font></b><font style="font: x-small Times New Roman"> It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. </font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Loans.</font></b><font style="font: x-small Times New Roman"> The fair value of the Company&#146;s loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans were segregated by types such as commercial, residential and consumer loans. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price and therefore, while permissible for presentation purposes under ASC 825-10, do not conform to ASC 820-10. </font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Deposits. </font></b><font style="font: x-small Times New Roman">The carrying amounts of deposits with no stated maturities (i.e., noninterest-bearing, savings, NOW, and money market deposits) are assigned fair values equal to the carrying amounts payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows using estimated rates currently offered for alternative funding sources of similar remaining maturity.</font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Term Borrowings and Subordinated Debentures</font></b><font style="font: x-small Times New Roman">. The fair value of the Company&#146;s long-term borrowings and subordinated debentures was calculated using a discounted cash flow approach and applying discount rates currently offered based on weighted remaining maturities.</font></p> <p style="text-align: left; text-indent: 15pt"><b><font style="font: x-small Times New Roman">Accrued Interest Receivable/Payable.</font></b><font style="font: x-small Times New Roman"> The carrying amounts of accrued interest approximate fair value resulting in a level 2 or level 3 classification based on the level of the asset or liability with which the accrual is associated. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company&#146;s financial instruments as of September 30, 2017 and December 31, 2016: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Prices in</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Carrying</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Amount</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 1)</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 2)</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 3)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="14" style="text-align: center; width: 14%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><b><u><font style="font: x-small Times New Roman">September 30, 2017</font></u></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Financial assets:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Cash and due from banks</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">141,262</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">141,262</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">141,262</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Securities available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">400,516</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">400,516</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,333</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">368,318</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">17,865</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Restricted investment in bank stocks</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">29,672</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">n/a</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Loans held-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">89,386</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">89,386</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">41,956</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,430</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Net loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,859,419</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,862,104</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,862,104</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Derivatives</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Accrued interest receivable</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,841</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,841</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,011</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">12,830</font></td></tr> <tr> <td colspan="16" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Financial liabilities:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Noninterest-bearing deposits</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">719,582</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">719,582</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">719,582</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Interest-bearing deposits</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2,904,187</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2,904,285</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,825,846</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,078,439</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Borrowings</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">585,124</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">586,474</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">586,474</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Subordinated debentures</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">54,657</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">56,519</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">56,519</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Accrued interest payable</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,304</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,304</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,304</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr> <td colspan="16" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><b><u><font style="font: x-small Times New Roman">December 31, 2016</font></u></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Financial assets:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Cash and due from banks</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">200,399</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">200,399</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">200,399</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">353,290</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">353,290</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,982</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">320,090</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">18,218</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Restricted investment in bank stocks</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">24,310</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">n/a</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Loans held-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">78,005</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">78,005</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">12,409</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">65,596</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Net loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,450,088</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,462,138</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,462,138</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Derivatives</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Accrued interest receivable</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">12,965</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">12,965</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2,026</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">10,939</font></td></tr> <tr> <td colspan="16" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Financial liabilities:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Noninterest-bearing deposits</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">694,977</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">694,977</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">694,977</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Interest-bearing deposits</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,649,294</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,649,717</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,681,044</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">968,673</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Borrowings</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">476,280</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">478,286</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">478,286</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Subordinated debentures</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">54,534</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">55,901</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">55,901</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Accrued interest payable</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,142</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,142</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,142</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr></table><br /> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company&#146;s remaining assets and liabilities, which are not considered financial instruments, have not been valued differently than has been customary with historical cost accounting. No disclosure of the relationship value of the Company&#146;s core deposit base is required by FASB ASC 825-10.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. </font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 8. 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width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: xx-small Times New Roman">Affected Line item in the</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: center; width: 82%"><font style="font: xx-small Times New Roman">Details about Accumulated Other</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="text-align: center; width: 7%"><font style="font: xx-small Times New Roman">Amounts Reclassified from Accumulated</font></td> <td nowrap="nowrap" style="text-align: center; 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text-align: center; width: 3%"><font style="font: xx-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: xx-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: xx-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 82%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Sale of securities available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,131</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,596</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,234</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Net gains on sales of securities available for sale</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">Income tax expense</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,491</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,552</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 82%"><font style="font: xx-small Times New Roman">Amortization of pension plan net actuarial losses</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(103</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(204</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(309</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(306</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">Salaries and employee benefits</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">42</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">83</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">126</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">124</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Income tax benefit</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(61</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(121</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(183</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(182</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr> <td colspan="19" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Total reclassification</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">(61</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,370</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">834</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,370</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr></table><br /> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Accumulated other comprehensive (loss) income (net of tax) at September 30, 2017 and December 31, 2016 consisted of the following: </font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">September 30,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">December 31,</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="text-align: center; width: 7%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">723</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">933</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%"><font style="font: x-small Times New Roman">Cash flow hedge</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">97</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">52</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%; background-color: #cceeff"><font style="font: x-small Times New Roman">Defined benefit pension and post-retirement plans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(3,649</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(3,831</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total accumulated other comprehensive loss</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(2,829</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(2,846</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr></table></div> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 9. Stock-Based Compensation</font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company&#146;s stockholders approved the 2017 Equity Compensation Plan (&#147;the Plan&#148;) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of September 30, 2017. The maximum number of shares of common stock or equivalents, which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of September 30, 2017 are 750,000. The Company intends to issue all shares under the Plan in the form of newly issued shares. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Restricted stock and option awards typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock awards granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options and performance units do not.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">All awards are issued at fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are handled on a case-by-case basis.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">No options or performance units were granted during the three months ended September 30, 2017 or 2016.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Activity under the Company&#146;s option plans as of and for the nine months ended September 30, 2017 were as follows:</font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Weighted-</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Average</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Weighted-</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Remaining</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Average</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Contractual</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Exercise</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Term</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Aggregate</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Shares</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">6.26</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"><font style="font: x-small Times New Roman">Granted</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%; background-color: #cceeff"><font style="font: x-small Times New Roman">Exercised</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">10,846</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">10.89</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"><font style="font: x-small Times New Roman">Forfeited/cancelled/expired</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%; background-color: #cceeff"><font style="font: x-small Times New Roman">Outstanding at September 30, 2017</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">347,521</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">6.11</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.90</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: center; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">6,425,663</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"><font style="font: x-small Times New Roman">Exercisable at September 30, 2017</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">343,991</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">6.03</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">1.86</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: center; width: 1%"><font style="font: x-small Times New Roman">6,387,912</font></td></tr></table></div> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company&#146;s closing stock price on September 30, 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2017. This amount changes based on the fair market value of the Parent Corporation&#146;s stock.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The below table represents information regarding restricted shares currently outstanding at September 30, 2017: </font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Weighted-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Average</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Nonvested</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Grant Date</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Shares</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Fair Value</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; background-color: #cceeff"><font style="font: x-small Times New Roman">Nonvested at December 31, 2016</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;111,273</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">16.81</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"><font style="font: x-small Times New Roman">Granted</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">57,164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; 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text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">103,078</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">20.41</font></td></tr></table></div> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">As of September 30, 2017, there was approximately $1,366,000 of total unrecognized compensation cost related to nonvested restricted shares granted under the plans. 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width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">22.75</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 93%; background-color: #cceeff"><font style="font: x-small Times New Roman">Forfeited</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; 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background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr> <tr> <td colspan="17" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 84%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total recognized in net expense and OCI (before tax)</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(41</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(140</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(120</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(72</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr></table> <p style="text-align: left"><b><i><font style="font: x-small Times New Roman">Contributions</font></i></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company did not make any contributions during the nine months ended September 30, 2017. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2017. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust.</font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 11 &#150; FHLB Borrowings </font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company&#146;s FHLB borrowings and weighted average interest rates are summarized below: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="5" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">September 30, 2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="5" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Amount</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Rate</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Amount</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Rate</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="11" style="text-align: center; width: 11%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Total FHLB borrowings</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">585,124</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.61</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">461,280</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.55</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td></tr> <tr> <td colspan="13" style="width: 108%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">By remaining period to maturity:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Less than 1 year</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">415,124</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.41</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">231,280</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.02</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; padding-left: 15pt"><font style="font: x-small Times New Roman">1&#160; year through less than 2 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">105,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1.69</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">130,000</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1.84</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">2 years through less than 3 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">25,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.85</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">35,000</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.60</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; padding-left: 15pt"><font style="font: x-small Times New Roman">3 years through less than 4 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">40,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3.43</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">65,000</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2.82</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">4 years through 5 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">Total FHLB borrowings</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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The Company has the option to repay these advances, if converted, without penalty. The remaining advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rate. The advances at September 30, 2017 were primarily collateralized by approximately $1.4 billion of commercial mortgage loans, net of required over collateralization amounts, under a blanket lien arrangement. At September 30, 2017 the Company had remaining borrowing capacity of approximately $796 million at FHLB.</font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 12 &#150; Securities Sold Under Agreements to Repurchase</font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Repurchase agreements are secured borrowings. The Company pledges securities to secure those borrowings. Information concerning repurchase agreements is summarized as follows for the periods presented: </font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">September 30,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">December 31,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">September 30,</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td colspan="11" style="text-align: center; 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width: 100%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Continuous</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Days</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">31-90 Days</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">90 Days</font></td> <td nowrap="nowrap" style="text-align: center; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%; background-color: #cceeff; padding-left: 30pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; 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By contractual agreement, the fair value of securities pledged to secure repurchase agreements must meet or exceed the gross outstanding balance by 8%, or be subject to margin calls. 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The Notes are non-callable for five years, have a stated maturity of July 1, 2025, and bear interest at a fixed rate of 5.75% per year, from and including September 30, 2015 to, but excluding July 1, 2020. From and including July 1, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three month LIBOR rate plus 393 basis points. As of September 30, 2017, unamortized costs related to the debt issuance was approximately $498,000. </font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 14 &#150; Offsetting Assets and Liabilities </font></b></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Certain financial instrument-related assets and liabilities may be eligible for offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements. 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%"><b><font style="font: x-small Times New Roman">Assets:</font></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Interest rate swaps</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">164</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%"><b><font style="font: x-small Times New Roman">Liabilities:</font></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Repurchase agreements</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%"><u><font style="font: x-small Times New Roman">December 31, 2016</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; background-color: #cceeff"><b><font style="font: x-small Times New Roman">Assets:</font></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; padding-left: 15pt"><font style="font: x-small Times New Roman">Interest rate swaps</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">88</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; background-color: #cceeff"><b><font style="font: x-small Times New Roman">Liabilities:</font></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; padding-left: 15pt"><font style="font: x-small Times New Roman">Repurchase agreements</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr></table><br /> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2017-08, &#147;</font><i><font style="font: x-small Times New Roman">Receivables&#151;Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities</font></i><font style="font: x-small Times New Roman">.&#148; ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for us on January 1, 2019 and we are currently evaluating this ASU to determine the impact on our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2017-04, </font><i><font style="font: x-small Times New Roman">&#147;Intangibles &#150; Goodwill and Other (Topic 350).&#148; </font></i><font style="font: x-small Times New Roman">ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit&#146;s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2016-15, &#147;</font><i><font style="font: x-small Times New Roman">Statement of Cash Flows (Topic 230)</font></i><font style="font: x-small Times New Roman">: </font><i><font style="font: x-small Times New Roman">Classification of Certain Cash Receipts and Cash Payments</font></i><font style="font: x-small Times New Roman">&#148; provides guidance on the following eight specific cash flow issues: (1) Debt prepayment or debt extinguishment costs; (2) Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) Contingent consideration payments made after a business combination; (4) Proceeds from the settlement of insurance claims; (5) Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) Distributions received from equity method investees; (7) Beneficial interests in securitization transactions; and (8) Separately identifiable cash flows and application of the predominance principle. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Although management continues to evaluate the potential impact of ASU 2016-05 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2016-13, &#147;</font><i><font style="font: x-small Times New Roman">Financial Instruments &#150; Credit Losses (Topic 326): Assets Measured at Amortized Cost.&#148; ASU 2016-</font></i><font style="font: x-small Times New Roman">13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee that will be assessing our data and system needs. The Company has also met with multiple third-party vendors who may provide assistance in implementation and model creation. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2016-02, &#147;</font><i><font style="font: x-small Times New Roman">Leases (Topic 842)</font></i><font style="font: x-small Times New Roman">&#148; requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for the Company for reporting periods beginning January 1, 2019, with early adoption permitted. The Company must apply a modified retrospective transition approach for the applicable leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company is currently leasing seventeen properties as branch locations and is leasing certain office equipment. The adoption of ASU 2016-02 will result in increases to the Company's assets and liabilities. We are currently in the process of evaluating all of our leases for compliance with the new ASU. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2016-01, </font><i><font style="font: x-small Times New Roman">Financial Instruments &#150; Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.&#148;</font></i><font style="font: x-small Times New Roman"> ASU 2016-01, among other things; (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and we are currently evaluating the potential impact of ASU No. 2016-01 on our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2014-09, </font><i><font style="font: x-small Times New Roman">&#147;Revenue from Contracts with Customers (Topic 606).&#148; </font></i><font style="font: x-small Times New Roman">ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, the FASB recently issued ASU 2015-14, </font><i><font style="font: x-small Times New Roman">&#147;Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date&#148;</font></i><font style="font: x-small Times New Roman"> which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. Although management continues to evaluate the potential impact of ASU 2014-09 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In March 2016, the FASB issued ASU No. 2016-08, </font><i><font style="font: x-small Times New Roman">Revenue from Contracts with Customers (Topic 606)</font></i><font style="font: x-small Times New Roman">: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments relate to when another party, along with the entity, is involved in providing a good or service to a customer. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In April 2016, the FASB issued ASU No. 2016-10, </font><i><font style="font: x-small Times New Roman">Revenue from Contracts with Customers (Topic 606)</font></i><font style="font: x-small Times New Roman">: Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: identifying performance obligations, and the licensing implementation guidance. The amendments in this update are intended to improve the operability and understandability of the licensing implementation guidance. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In May 2016, the FASB issued ASU No. 2016-12, </font><i><font style="font: x-small Times New Roman">Revenue from Contracts with Customers (Topic 606)</font></i><font style="font: x-small Times New Roman">: Narrow-Scope Improvements and Practical Expedients. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedients. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In December 2016, the FASB issued ASU No. 2016-20, </font><i><font style="font: x-small Times New Roman">Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements</font></i><font style="font: x-small Times New Roman">. The FASB board decided to issue a separate update for technical corrections and improvements to Topic 606 and other Topics amended by ASU No. 2014-09 to increase awareness of the proposals and to expedite improvements to ASU No. 2014-09. The amendment affects narrow aspects of the guidance issued in ASU No. 2014-09. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Earnings per common share have been computed based on the following: </font></p> <div> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="text-align: center; width: 10%"><font style="font: x-small Times New Roman">Three Months Ended</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="text-align: center; width: 11%"><font style="font: x-small Times New Roman">Nine Months Ended</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="border-bottom: #000000 1pt solid; text-align: center; width: 10%"><font style="font: x-small Times New Roman">September 30,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="border-bottom: #000000 1pt solid; text-align: center; width: 11%"><font style="font: x-small Times New Roman">September 30,</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="15" style="text-align: center; width: 9%"><b><font style="font: xx-small Times New Roman">(in thousands, except for per share data)</font></b></td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff"><font style="font: x-small Times New Roman">Net income available to common stockholders</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,035</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">11,812</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">32,534</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">33,106</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"><font style="font: x-small Times New Roman">Earnings allocated to participating securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">42</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 2%"><font style="font: x-small Times New Roman">44</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">106</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">22</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Income attributable to common stock</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,077</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">11,856</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">32,640</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">33,128</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 77%; padding-left: 15pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Weighted average common shares outstanding, including participating securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">32,015</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">30,143</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">31,999</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">30,094</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff"><font style="font: x-small Times New Roman">Weighted average participating securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">(103</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">(113</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">(104</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">(98</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; padding-left: 15pt"><font style="font: x-small Times New Roman">Weighted average common shares outstanding</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">31,912</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">30,030</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">31,895</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">29,996</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 77%; background-color: #cceeff; padding-left: 15pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Incremental shares from assumed conversions of options, performance units and restricted shares</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">270</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">329</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">272</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">351</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%"><font style="font: x-small Times New Roman">Weighted average common and equivalent shares outstanding</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">32,182</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 2%"><font style="font: x-small Times New Roman">30,359</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">32,167</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">30,347</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td></tr> <tr> <td colspan="17" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; background-color: #cceeff"><font style="font: x-small Times New Roman">Earnings per common share:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 2%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 77%; padding-left: 15pt"><font style="font: x-small Times New Roman">Basic</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">0.41</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">0.39</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">1.02</font></td> <td nowrap="nowrap" style="text-align: left; 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text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 2%"><font style="font: x-small Times New Roman">2,491</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 2%"><font style="font: x-small Times New Roman">1,017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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width: 1%"></td> <td nowrap="nowrap" colspan="6" style="border-bottom: #000000 1pt solid; text-align: center; width: 6%"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid"></td> <td nowrap="nowrap" colspan="6" style="border-bottom: #000000 1pt solid; text-align: center; width: 6%"><font style="font: x-small Times New Roman">Less than 12 Months</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid"></td> <td nowrap="nowrap" colspan="6" style="border-bottom: #000000 1pt solid; text-align: center; width: 6%"><font style="font: x-small Times New Roman">12 Months or Longer</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 79%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="text-align: center; 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width: 79%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Losses</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Losses</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%; border-bottom: Black 1pt solid">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Losses</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 79%; background-color: white; text-align: left; width: 79%"></td> <td nowrap="nowrap" style="width: 1%; background-color: white; text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="width: 20%; background-color: white; text-align: center; width: 20%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="text-align: left; width: 79%"><font style="font: x-small Times New Roman">Federal agency obligation</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">21,451</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(171</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">17,679</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(116</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,772</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(55</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-left: 15pt; width: 79%; text-indent: -15pt; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">77,391</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,021</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">49,079</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(457</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">28,312</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(564</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 79%; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Obligations of U.S. states and political subdivisions</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">54,073</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,044</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,016</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(829</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">7,057</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(215</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 79%"><font style="font: x-small Times New Roman">Trust preferred securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,507</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(71</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,507</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(71</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 79%; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Corporate bonds and notes</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">13,123</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(219</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,946</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(38</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">9,177</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(181</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 79%"><font style="font: x-small Times New Roman">Asset-backed securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">7,929</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(38</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">7,929</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(38</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 79%; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Other securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">11,193</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(273</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">5,911</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(56</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">5,282</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(217</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-left: 30pt; width: 79%; text-indent: -15pt; text-align: left; width: 79%"><font style="font: x-small Times New Roman">Total temporarily impaired securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">186,667</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(2,837</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">123,631</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,496</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">63,036</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,341</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr></table><br /> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" colspan="20" style="width: 20%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" colspan="6" style="width: 6%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="6" style="width: 6%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Less than 12 Months</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="6" style="width: 6%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">12 Months or Longer</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" colspan="2" style="width: 2%; text-align: center"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="3" style="width: 3%; text-align: center"><font style="font: x-small Times New Roman">Unrealized</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="2" style="width: 2%; text-align: center"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="3" style="width: 3%; text-align: center"><font style="font: x-small Times New Roman">Unrealized</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="2" style="width: 2%; text-align: center"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" colspan="3" style="width: 3%; text-align: center"><font style="font: x-small Times New Roman">Unrealized</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="width: 2%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="width: 3%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Losses</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="width: 2%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="width: 3%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Losses</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="width: 2%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: center">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="width: 3%; border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Losses</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" colspan="20" style="width: 20%; text-align: center"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Federal agency obligation</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">22,672</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(271</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">21,416</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(262</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">1,256</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(9</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-left: 15pt; width: 82%; text-indent: -15pt; text-align: left"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">50,136</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(944</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">49,817</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(937</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">319</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(7</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="padding-left: 15pt; width: 82%; text-indent: -15pt; text-align: left"><font style="font: x-small Times New Roman">Obligations of U.S. states and political subdivisions</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">52,307</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(931</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">52,307</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(931</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Trust preferred securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">1,427</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(151</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">1,427</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(151</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Corporate bonds and notes</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">15,930</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(375</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">7,671</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(265</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">8,259</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(110</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Asset-backed securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">13,404</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(286</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">3,743</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(88</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">9,661</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: right"><font style="font: x-small Times New Roman">(198</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 82%; text-align: left"><font style="font: x-small Times New Roman">Other securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">11,467</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">(325</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">11,467</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: right"><font style="font: x-small Times New Roman">(325</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 1pt solid; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="padding-left: 30pt; width: 82%; text-indent: -15pt; text-align: left"><font style="font: x-small Times New Roman">Total temporarily impaired securities</font></td> <td nowrap="nowrap" style="width: 1%; text-align: right"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">167,343</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">(3,283</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">134,954</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">(2,483</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="width: 1%; text-align: left"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">32,389</font></td> <td nowrap="nowrap" style="width: 1%; text-align: center"></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: right"><font style="font: x-small Times New Roman">(800</font></td> <td nowrap="nowrap" style="width: 1%; border-bottom: #000000 2pt double; text-align: left"><font style="font: x-small Times New Roman">)</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Summary information about the interest rate swaps designated as cash flow hedges as of September 30, 2017, December 31, 2016 and September 30, 2016 are presented in the following table. </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-top: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">September 30,</font></td> <td nowrap="nowrap" style="border-top: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-top: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">December 31,</font></td> <td nowrap="nowrap" style="border-top: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-top: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">September 30,</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="11" style="text-align: center; width: 14%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">75,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Weighted average pay rates</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 2%"><font style="font: x-small Times New Roman">1.52</font></td> <td nowrap="nowrap" style="text-align: left; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.07</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 2%; background-color: #cceeff"><font style="font: x-small Times New Roman">0.69</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; 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line-height: 14pt; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left"></td> <td nowrap="nowrap" style="text-align: left"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center"><font style="font: x-small Times New Roman">Nine Months Ended September 30, 2017</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left"></td> <td nowrap="nowrap" style="text-align: left"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">Amount of gain</font></td> <td nowrap="nowrap" style="text-align: center"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">Amount of gain</font></td> <td nowrap="nowrap" style="text-align: center"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">Amount of gain (loss)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left"></td> <td nowrap="nowrap" style="text-align: left"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">(loss) recognized</font></td> <td nowrap="nowrap" style="text-align: center"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">(loss) reclassified</font></td> <td nowrap="nowrap" style="text-align: center"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">recognized in other</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left"></td> <td nowrap="nowrap" style="text-align: left"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">in OCI (Effective</font></td> <td nowrap="nowrap" style="text-align: center"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">from OCI to</font></td> <td nowrap="nowrap" style="text-align: center"></td> <td nowrap="nowrap" colspan="2" style="text-align: center"><font style="font: x-small Times New Roman">Noninterest income</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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text-align: center; width: 4%"><font style="font: x-small Times New Roman">Mention</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Substandard</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Doubtful</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Total</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="14" style="text-align: center; width: 24%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">630,818</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,882</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">6,913</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">641,613</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,535,005</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">30,875</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">19,325</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,585,205</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">393,625</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,239</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,589</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">399,453</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">264,244</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">264,244</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,912</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,912</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Gross loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,825,604</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">37,996</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">28,827</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,892,427</font></td></tr> <tr> <td colspan="16" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="14" style="border-bottom: #000000 1pt solid; text-align: center; width: 24%"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Special</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Pass</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Mention</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Substandard</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Doubtful</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Total</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="14" style="text-align: center; width: 24%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">539,961</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,255</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">10,360</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">553,576</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,154,343</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">31,173</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">19,194</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,204,710</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">480,319</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,388</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,521</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">486,228</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">228,990</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,557</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">232,547</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,318</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">62</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,380</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 75%"><font style="font: x-small Times New Roman">Gross loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,405,931</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">37,816</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">35,694</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,479,441</font></td></tr></table></div> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following table provides an analysis of the impaired loans by segment as of September 30, 2017 and December 31, 2016:</font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 14%"><font style="font: x-small Times New Roman">September 30, 2017</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Unpaid</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Recorded</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Principal</font></td> <td style="text-align: center; width: 1%"></td> <td colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Related</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Investment</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Balance</font></td> <td style="text-align: center; width: 1%"></td> <td colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Allowance</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman"><u>No related allowance recorded</u></font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 14%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,068</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,073</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">19,221</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">19,283</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,340</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,340</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,520</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,749</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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text-align: right; width: 3%"><font style="font: x-small Times New Roman">110</font></td></tr> <tr> <td colspan="10" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman"><u>Total</u></font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,068</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,073</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">20,861</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">21,335</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">110</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,340</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,340</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,520</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,749</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">46</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Total (including allowance)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">30,835</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">31,543</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">110</font></td></tr> <tr> <td colspan="10" style="width: 100%">&#160;&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 14%"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Unpaid</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Recorded</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Principal</font></td> <td style="text-align: center; width: 1%"></td> <td colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Related</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Investment</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Balance</font></td> <td style="text-align: center; width: 1%"></td> <td colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Allowance</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman"><u>No related allowance recorded</u></font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 14%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,637</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,063</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">18,288</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">18,288</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">5,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">5,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,851</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,055</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">62</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">62</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; border-bottom: Black 2pt double"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; border-bottom: Black 2pt double"><font style="font: x-small Times New Roman">29,747</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; border-bottom: Black 2pt double"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; border-bottom: Black 2pt double"><font style="font: x-small Times New Roman">30,377</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr> <td colspan="10" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman"><u>With an allowance recorded</u></font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,244</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,244</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">145</font></td></tr> <tr> <td colspan="10" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman"><u>Total</u></font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,637</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,063</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">19,532</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">19,532</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">145</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">5,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">5,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,851</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,055</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">29,264</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">321</font></td> <td style="text-align: right; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">20,398</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">158</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">28,840</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">762</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">16,784</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">276</font></td></tr> <tr> <td colspan="25" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><u><font style="font: xx-small Times New Roman">Impaired loans (allowance):</font></u></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 3%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 3%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 3%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 3%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 3%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 3%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 3%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 1%"></td> <td style="text-align: left; width: 3%"></td></tr> <tr> <td colspan="25" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Commercial</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: right; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">91,393</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">925</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">85,620</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,447</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><font style="font: xx-small Times New Roman">Commercial real estate</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,645</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">153</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,654</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">39</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">153</font></td> <td style="text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Total</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,645</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2</font></td> <td style="text-align: right; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">91,546</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">925</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,654</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">39</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">85,773</font></td> <td style="text-align: left; width: 1%; background-color: #cceeff"></td> <td style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,447</font></td></tr> <tr> <td colspan="25" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><u><font style="font: xx-small Times New Roman">Total impaired loans:</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td></tr> <tr> <td colspan="25" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3,100</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">34</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">98,097</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">991</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3,149</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">115</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">89,937</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,533</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><font style="font: xx-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">20,947</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">223</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">9,282</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">65</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">20,467</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">463</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">8,320</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">118</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,285</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">63</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,224</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">21</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,273</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">215</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">979</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">54</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><font style="font: xx-small Times New Roman">Residential mortgage</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2,259</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3,271</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">5</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2,551</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">6</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">54</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">74</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3</font></td></tr> <tr> <td colspan="25" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 60%"><font style="font: xx-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">30,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">323</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">111,944</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,083</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">30,494</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">801</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">102,557</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2,723</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at September 30, 2017 and December 31, 2016 by segment: </font></p> <p style="text-align: left"><b><font style="font: x-small Times New Roman">Aging Analysis</font></b></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="border-bottom: #000000 1pt solid; text-align: center; width: 34%"><font style="font: x-small Times New Roman">September 30, 2017</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">90 Days or</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Greater Past</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Total Past</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 64%"></td> <td style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">30-59 Days</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">60-89 Days</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Due and Still</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; 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text-align: center; width: 4%"><font style="font: x-small Times New Roman">Current</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Gross Loans</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="text-align: center; width: 34%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">199</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">288</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,209</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">951</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">5,647</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">635,966</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">641,613</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">586</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">8,057</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">8,369</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">17,012</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,568,193</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">2,585,205</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">399,453</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">399,453</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">918</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">541</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,435</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">5,894</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">258,350</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">264,244</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%; background-color: #cceeff"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,910</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,912</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,703</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">8,888</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">4,209</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">13,755</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">28,555</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,863,872</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: x-small Times New Roman">3,892,427</font></td></tr> <tr> <td colspan="22" style="width: 99%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="border-bottom: #000000 1pt solid; text-align: center; width: 34%"><font style="font: x-small Times New Roman">Dece</font><font style="font: x-small Times New Roman">mber 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">90 Days or</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Greater Past</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Total Past</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">30-59 Days</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">60-89 Days</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Due and Still</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: x-small Times New Roman">Due and</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Past Due</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Past Due</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Accruing</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Nonaccrual</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Nonaccrual</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Current</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: x-small Times New Roman">Gross Loans</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="text-align: center; width: 34%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 64%; background-color: #cceeff"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">475</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">18</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,630</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,460</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">6,583</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">546,993</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">553,576</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; 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text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">110</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Collectively evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">7,716</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">15,224</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3,940</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,052</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; 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border-bottom: Black 1pt solid"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff; border-bottom: Black 1pt solid"><font style="font: xx-small Times New Roman">5,243</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff; border-bottom: Black 1pt solid"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff; border-bottom: Black 1pt solid"><font style="font: xx-small Times New Roman">232</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff; border-bottom: Black 1pt solid"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff; border-bottom: Black 1pt solid"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff; border-bottom: Black 1pt solid">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff; border-bottom: Black 1pt solid"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff; border-bottom: Black 1pt solid"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff; border-bottom: Black 1pt solid"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff; border-bottom: Black 1pt solid"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff; border-bottom: Black 1pt solid"><font style="font: xx-small Times New Roman">5,475</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Total gross loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">641,613</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2,585,205</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">399,453</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">264,244</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,912</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3,892,427</font></td></tr> <tr> <td colspan="22" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="border-bottom: #000000 1pt solid; text-align: center; width: 34%"><font style="font: xx-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Residential</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">real estate</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">construction</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">real estate</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Unallocated</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 4%"><font style="font: xx-small Times New Roman">Total</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="20" style="text-align: center; width: 34%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><u><font style="font: xx-small Times New Roman">ALLL</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Individually evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">145</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">145</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Collectively evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">6,632</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">12,438</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,789</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">958</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">3</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">779</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">25,599</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Acquired portfolio</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Acquired with deteriorated credit quality</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Total ALLL</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">6,632</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">12,583</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">4,789</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">958</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">779</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">25,744</font></td></tr> <tr> <td colspan="22" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><u><font style="font: xx-small Times New Roman">Gross loans</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Individually evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3,637</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">19,532</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">5,909</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,851</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">62</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">30,991</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Collectively evaluated for impairment</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">517,869</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,621,745</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">478,865</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">163,686</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,757</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,783,922</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Acquired portfolio</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">24,972</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">562,451</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">1,454</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">67,010</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">561</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: xx-small Times New Roman">656,448</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Acquired with deteriorated credit quality</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">7,098</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">982</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 3%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%; background-color: #cceeff"><font style="font: xx-small Times New Roman">8,080</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 65%"><font style="font: xx-small Times New Roman">Total gross loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">553,576</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2,204,710</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">486,228</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">232,547</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">2,380</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%"><font style="font: xx-small Times New Roman">3,479,441</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">A summary of the activity in the ALLL is as follows: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 58%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="27" style="border-bottom: #000000 1pt solid; text-align: center; width: 41%"><font style="font: x-small Times New Roman">Three Months Ended September 30, 2017</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 58%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 5%"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="width: 5%; text-align: center"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 5%"><font style="font: x-small Times New Roman">Residential</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 3%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: #000000 1pt solid; text-align: left; width: 58%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">real estate</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">construction</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">real estate</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">985</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">546</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$<font style="font: small Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></font></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">28,401</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr> <td colspan="29" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 58%"><font style="font: x-small Times New Roman">Charge-offs</font></td> <td nowrap="nowrap" style="text-align: left; 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width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(1</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(1</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr> <td colspan="29" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 58%; background-color: #cceeff"><font style="font: x-small Times New Roman">Recoveries</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">17</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">1</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">20</font></td> <td nowrap="nowrap" style="text-align: left; 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text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">(301</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">67</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">(220</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">1,450</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 58%; background-color: #cceeff"><font style="font: x-small Times New Roman">Balance at September 30,</font><font style="font: small Times New Roman"> </font><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">7,716</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">16,834</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(94</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(10</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 3%"><font style="font: x-small Times New Roman">(2,500</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr> <td colspan="29" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 58%; background-color: #cceeff"><font style="font: x-small Times New Roman">Recoveries</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; background-color: #cceeff"><font style="font: x-small Times New Roman">3</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 3%; 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width: 3%"><font style="font: x-small Times New Roman">130</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 3%"><font style="font: x-small Times New Roman">13,500</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td></tr> <tr> <td colspan="29" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 58%; background-color: #cceeff"><font style="font: x-small Times New Roman">Balance at September 30, 2016</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; 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text-align: center; width: 7%"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="14" style="text-align: center; width: 14%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">Recorded</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; 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width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Investment</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">ALLL</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><u><font style="font: x-small Times New Roman">Troubled Debt Restructurings</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr> <td colspan="16" style="width: 100%; background-color: #cceeff">&#160;&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Beginning balance</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">13,818</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">86,629</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,500</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Additions</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">5,668</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">26,325</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">8,250</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Payoffs/paydowns</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(1,309</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">(2,616</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Transfers</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(580</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(96,520</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(12,750</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Ending balance</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">17,597</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,818</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr></table></div> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016 (dollars in thousands):</font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Pre-Modification</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Post-Modification</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Outstanding</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Outstanding</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Number of</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Recorded</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Recorded</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Loans</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Investment</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Investment</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; background-color: #cceeff"><font style="font: x-small Times New Roman">Troubled debt restructurings:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">16</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">19,311</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">19,311</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">2</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">581</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">581</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial construction</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Residential real estate</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; padding-left: 15pt"><font style="font: x-small Times New Roman">Consumer</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr> <td colspan="9" style="width: 102%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Total</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">18</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">19,892</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">19,892</font></td></tr></table></div> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2017 and December 31, 2016 are as follows: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%"><u><font style="font: x-small Times New Roman">September 30, 2017</font></u></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements at Reporting Date Using</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted Prices</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">in Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 1)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 2)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 3)</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Recurring fair value measurements:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Federal agency obligations</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">55,938</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">55,938</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">133,164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">133,164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Commercial mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,130</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,130</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Obligations of U.S. states and political subdivisions</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">144,976</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">127,111</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">17,865</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Trust preferred securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,627</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,627</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Corporate bonds and notes</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">30,088</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">30,088</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Asset-backed securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">12,633</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">12,633</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Certificates of deposit</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">627</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">627</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Equity securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">630</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">630</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Other securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,703</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">13,703</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">400,516</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,333</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">368,318</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">17,685</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Derivatives</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 95%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total Assets</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">400,680</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,333</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">368,482</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">17,685</font></td></tr></table><br /> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%"><u><font style="font: x-small Times New Roman">December 31, 2016</font></u></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements at Reporting Date Using</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted Prices</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">in Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 1)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 2)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 3)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Recurring fair value measurements:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Federal agency obligations</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">52,837</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">52,837</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">72,497</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">72,497</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Commercial mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,209</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,209</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 45pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Obligations of U.S. states and political subdivisions</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">150,605</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">132,387</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">18,218</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Trust preferred securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5,666</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5,666</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Corporate bonds and notes</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">36,928</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">36,928</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Asset-backed securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,583</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,583</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Certificates of deposit</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">983</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">983</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 30pt"><font style="font: x-small Times New Roman">Equity securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">568</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">568</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Other securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,414</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,414</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">353,290</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,982</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">320,090</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">18,218</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Derivatives</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 95%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total assets</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">353,378</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,982</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">320,178</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">18,218</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">For assets measured at fair value on a non-recurring basis, the fair value measurements at September 30, 2017 and December 31, 2016 are as follows: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements at Reporting Date Using</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Prices</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,198</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,198</font></td></tr> <tr> <td colspan="13" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #cceeff"><font style="font: x-small Times New Roman">Loans held-for-sale:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,430</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,430</font></td></tr> <tr> <td colspan="13" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements at Reporting Date Using</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Prices</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">in Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; 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width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" colspan="8" style="text-align: center; width: 8%; background-color: #ffffff"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #cceeff"><font style="font: x-small Times New Roman">Impaired loans:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,099</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,099</font></td></tr> <tr> <td colspan="13" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #cceeff"><font style="font: x-small Times New Roman">Loans held-for-sale:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">70,105</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,509</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">65,596</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 88%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">7,712</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">7,712</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2017 and year ended December 31, 2016: </font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">Municipal</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Securities</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Beginning balance, January 1, 2017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">18,218</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">Principal paydowns</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(353</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Ending balance, September 30, 2017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">17,865</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr> <td colspan="5" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">Municipal</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">Securities</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Beginning balance, January 1, 2016</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">Other<sup>(1)</sup></font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">18,335</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Principal paydowns</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(117</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">Ending balance, December 31, 2016</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; 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The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 91%"><u><font style="font: x-small Times New Roman">September 30, 2017</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 91%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Valuation</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Unobservable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 91%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Fair Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Techniques</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Input</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Range</font></td></tr> <tr> <td nowrap="nowrap" style="text-align: left; width: 91%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"><strong><font style="font: x-small Times New Roman">(dollars in thousands)</font></strong></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 91%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities available-for-sale:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Valuation</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Unobservable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 91%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Fair Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Techniques</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Input</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Range</font></td></tr> <tr> <td nowrap="nowrap" style="text-align: left; width: 91%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"><strong><font style="font: x-small Times New Roman">(dollars in thousands)</font></strong></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #ffffff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 91%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities available-for-sale:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 91%; padding-left: 15pt"><font style="font: x-small Times New Roman">Municipal securities</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">18,218</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Discounted cash flows</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Discount rate</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2.8%</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following methods and assumptions were used to estimate the fair values of the Company&#146;s assets measured at fair value on a non-recurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 64%"><u><font style="font: x-small Times New Roman">September 30, 2017</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 9%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td style="text-align: center; width: 20%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 9%"><font style="font: x-small Times New Roman">Valuation</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td style="text-align: center; width: 20%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 64%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 9%"><font style="font: x-small Times New Roman">Techniques</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td style="text-align: center; width: 20%"><font style="font: x-small Times New Roman">Unobservable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 64%"><font style="font: x-small Times New Roman">Type</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Fair Value</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 9%"><font style="font: x-small Times New Roman">(weightings)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td style="border-bottom: #000000 1pt solid; text-align: center; width: 20%"><font style="font: x-small Times New Roman">Input</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Range (weighted average)</font></td></tr> <tr style="vertical-align: bottom"> <td colspan="10" style="vertical-align: top; text-align: center; width: 100%"><b><font style="font: x-small Times New Roman">(</font></b><b><font style="font: x-small Times New Roman">dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"><u><font style="font: x-small Times New Roman">Impaired loans</font></u><font style="font: x-small Times New Roman">:</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,918</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"><font style="font: x-small Times New Roman">Appraisals of<br />collateral value</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"><font style="font: x-small Times New Roman">Comparable sales</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"><font style="font: x-small Times New Roman">0% - 15% (6%)</font></td></tr> <tr> <td colspan="10" style="vertical-align: top; width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"><u><font style="font: x-small Times New Roman">Loans held-for-sale:</font></u></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="vertical-align: top; text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial taxi medallion loans</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,430</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"><font style="font: x-small Times New Roman">Market approach<br />(70%)</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 20%"><font style="font: x-small Times New Roman">Indications expressed as a<br />price to unpaid principal<br />balance</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"><font style="font: x-small Times New Roman">37 - 100 (46)</font></td></tr> <tr> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"><font style="font: x-small Times New Roman">Discounted cash<br />flows (30%)</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"><font style="font: x-small Times New Roman">Discount rate</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14%</font></td></tr> <tr> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td style="vertical-align: top; text-align: center; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"><u><font style="font: x-small Times New Roman">December 31, 2016</font></u></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td style="vertical-align: top; text-align: center; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 9%"><font style="font: x-small Times New Roman">Valuation</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td style="vertical-align: top; text-align: center; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 9%"><font style="font: x-small Times New Roman">Techniques</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td style="vertical-align: top; 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text-align: center; width: 1%"></td> <td style="border-bottom: #000000 1pt solid; vertical-align: top; text-align: center; width: 20%"><font style="font: x-small Times New Roman">Input</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; vertical-align: top; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Range (weighted average)</font></td></tr> <tr style="vertical-align: bottom"> <td colspan="10" style="vertical-align: top; text-align: center; width: 100%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"><u><font style="font: x-small Times New Roman">Impaired loans</font></u><font style="font: x-small Times New Roman">:</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial real estate</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,099</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"><font style="font: x-small Times New Roman">Appraisals of<br />collateral value</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"><font style="font: x-small Times New Roman">Comparable sales</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"><font style="font: x-small Times New Roman">0% - 15% (6%)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"><u><font style="font: x-small Times New Roman">Loans held-for-sale:</font></u></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="vertical-align: top; text-align: left; width: 64%"><font style="font: x-small Times New Roman">Commercial taxi medallion loans</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: right; width: 1%"><font style="font: x-small Times New Roman">65,596</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"><font style="font: x-small Times New Roman">Market approach<br />(70%)</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 20%"><font style="font: x-small Times New Roman">Indications under securitized<br />transactions expressed as a<br />price to unpaid principal<br /> balance</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"><font style="font: x-small Times New Roman">40 - 100 (59)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%">&#160;</td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%"></td> <td style="vertical-align: top; text-align: left; width: 20%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 64%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 9%; background-color: #cceeff"><font style="font: x-small Times New Roman">Discounted cash<br />flows (30%)</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: left; width: 1%; background-color: #cceeff"></td> <td style="vertical-align: top; text-align: left; width: 20%; background-color: #cceeff"><font style="font: x-small Times New Roman">Discount Rate</font></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="vertical-align: top; text-align: center; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14%</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company&#146;s financial instruments as of September 30, 2017 and December 31, 2016: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="8" style="border-bottom: #000000 1pt solid; text-align: center; width: 8%"><font style="font: x-small Times New Roman">Fair Value Measurements</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Quoted</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Prices in</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Active</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Markets for</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Other</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Significant</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Identical</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Observable</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Unobservable</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Carrying</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Fair</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Assets</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Inputs</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Amount</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Value</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 1)</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 2)</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">(Level 3)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="14" style="text-align: center; width: 14%"><b><font style="font: x-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><b><u><font style="font: x-small Times New Roman">September 30, 2017</font></u></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Financial assets:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Cash and due from banks</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">141,262</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">141,262</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">141,262</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Securities available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">400,516</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">400,516</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">14,333</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">368,318</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">17,865</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Restricted investment in bank stocks</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">29,672</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">n/a</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Loans held-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">89,386</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">89,386</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">41,956</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">47,430</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Net loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,859,419</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,862,104</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">3,862,104</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Derivatives</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">164</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Accrued interest receivable</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,841</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,841</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,011</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">12,830</font></td></tr> <tr> <td colspan="16" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Financial liabilities:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Noninterest-bearing deposits</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">719,582</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">719,582</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">719,582</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Interest-bearing deposits</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2,904,187</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2,904,285</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,825,846</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1,078,439</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Borrowings</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">585,124</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">586,474</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">586,474</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Subordinated debentures</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">54,657</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">56,519</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">56,519</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Accrued interest payable</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,304</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,304</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">4,304</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr> <td colspan="16" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><b><u><font style="font: x-small Times New Roman">December 31, 2016</font></u></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Financial assets:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Cash and due from banks</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">200,399</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">200,399</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">200,399</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">353,290</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">353,290</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">14,982</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">320,090</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">18,218</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Restricted investment in bank stocks</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">24,310</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">n/a</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">n/a</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Loans held-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">78,005</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">78,005</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">12,409</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">65,596</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Net loans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,450,088</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,462,138</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3,462,138</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Derivatives</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Accrued interest receivable</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">12,965</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">12,965</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2,026</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">10,939</font></td></tr> <tr> <td colspan="16" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Financial liabilities:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Noninterest-bearing deposits</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">694,977</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">694,977</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">694,977</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Interest-bearing deposits</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,649,294</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">2,649,717</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1,681,044</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">968,673</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Borrowings</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">476,280</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">478,286</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">478,286</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%; background-color: #cceeff"><font style="font: x-small Times New Roman">Subordinated debentures</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">54,534</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">55,901</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">55,901</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 85%"><font style="font: x-small Times New Roman">Accrued interest payable</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,142</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,142</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">4,142</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr></table><br /> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The following represents the reclassifications out of accumulated other comprehensive (loss) income for the periods presented:</font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: xx-small Times New Roman">Affected Line item in the</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: center; width: 82%"><font style="font: xx-small Times New Roman">Details about Accumulated Other</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="text-align: center; width: 7%"><font style="font: xx-small Times New Roman">Amounts Reclassified from Accumulated</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="text-align: center; width: 7%"><font style="font: xx-small Times New Roman">Amounts Reclassified from Accumulated</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: xx-small Times New Roman">Statement Where Net Income is</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: xx-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: xx-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: xx-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: xx-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 82%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Sale of securities available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,131</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,596</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">4,234</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Net gains on sales of securities available for sale</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(1,640</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,491</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">1,017</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,552</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%; background-color: #cceeff">&#160;</td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left; width: 82%"><font style="font: xx-small Times New Roman">Amortization of pension plan net actuarial losses</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(103</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(204</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(309</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(306</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; 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width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(121</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(183</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: xx-small Times New Roman">(182</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr> <td colspan="19" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 82%; background-color: #cceeff"><font style="font: xx-small Times New Roman">Total reclassification</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">(61</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,370</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">834</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: xx-small Times New Roman">2,370</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Accumulated other comprehensive (loss) income (net of tax) at September 30, 2017 and December 31, 2016 consisted of the following: </font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">September 30,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 3%"><font style="font: x-small Times New Roman">December 31,</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="7" style="text-align: center; width: 7%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%; background-color: #cceeff"><font style="font: x-small Times New Roman">Securities available-for-sale</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">723</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">933</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%"><font style="font: x-small Times New Roman">Cash flow hedge</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">97</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">52</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 92%; background-color: #cceeff"><font style="font: x-small Times New Roman">Defined benefit pension and post-retirement plans</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(3,649</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(3,831</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; 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text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr></table></div> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Activity under the Company&#146;s option plans as of and for the nine months ended September 30, 2017 were as follows:</font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Weighted-</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Average</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Weighted-</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Remaining</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Average</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Contractual</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Exercise</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Term</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Aggregate</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Shares</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Price</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">(In Years)</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Intrinsic Value</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%; background-color: #cceeff"><font style="font: x-small Times New Roman">Outstanding at December 31, 2016</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">358,367</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">6.26</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"><font style="font: x-small Times New Roman">Granted</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%; background-color: #cceeff"><font style="font: x-small Times New Roman">Exercised</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">10,846</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">10.89</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"><font style="font: x-small Times New Roman">Forfeited/cancelled/expired</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%; background-color: #cceeff"><font style="font: x-small Times New Roman">Outstanding at September 30, 2017</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">347,521</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">6.11</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.90</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: center; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">6,425,663</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 90%"><font style="font: x-small Times New Roman">Exercisable at September 30, 2017</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">343,991</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">6.03</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">1.86</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: center; width: 1%"><font style="font: x-small Times New Roman">6,387,912</font></td></tr></table></div> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The below table represents information regarding restricted shares currently outstanding at September 30, 2017: </font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 60%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Weighted-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 2%"><font style="font: x-small Times New Roman">Average</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 94%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; 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text-align: center; width: 3%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 3%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 84%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="15" style="text-align: center; width: 15%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 84%; background-color: #cceeff"><font style="font: x-small Times New Roman">Interest cost</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">119</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">129</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">358</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">103</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">101</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">309</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">305</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 84%"><font style="font: x-small Times New Roman">Recognized settlement loss</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">2</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 84%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Net periodic pension cost</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">62</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(309</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(306</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr> <tr> <td colspan="17" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 84%; background-color: #cceeff; padding-left: 30pt"><font style="font: x-small Times New Roman">Total recognized in other comprehensive income</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(103</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(204</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(309</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">(306</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">)</font></td></tr> <tr> <td colspan="17" style="width: 100%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 84%; padding-left: 15pt"><font style="font: x-small Times New Roman">Total recognized in net expense and OCI (before tax)</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(41</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(140</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(120</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">(72</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">)</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">The Company&#146;s FHLB borrowings and weighted average interest rates are summarized below: </font></p> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="5" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">September 30, 2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="5" style="border-bottom: #000000 1pt solid; text-align: center; width: 5%"><font style="font: x-small Times New Roman">December 31, 2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Amount</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Rate</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Amount</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 2%"><font style="font: x-small Times New Roman">Rate</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="11" style="text-align: center; width: 11%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff"><font style="font: x-small Times New Roman">Total FHLB borrowings</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">585,124</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.61</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">461,280</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.55</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td></tr> <tr> <td colspan="13" style="width: 108%; background-color: #cceeff">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">By remaining period to maturity:</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Less than 1 year</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">415,124</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.41</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">231,280</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.02</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; padding-left: 15pt"><font style="font: x-small Times New Roman">1&#160; year through less than 2 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">105,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1.69</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">130,000</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1.84</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">2 years through less than 3 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">25,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.85</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">35,000</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">1.60</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; padding-left: 15pt"><font style="font: x-small Times New Roman">3 years through less than 4 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">40,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">3.43</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">65,000</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">2.82</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">4 years through 5 years</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 96%"><font style="font: x-small Times New Roman">Total FHLB borrowings</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">585,124</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1.61</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">461,280</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">1.55</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td></tr></table> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">Repurchase agreements are secured borrowings. The Company pledges securities to secure those borrowings. Information concerning repurchase agreements is summarized as follows for the periods presented: </font></p> <div align="center"> <table cellspacing="0" cellpadding="0" border="0" style="line-height: 14pt; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">September 30,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">December 31,</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="3" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">September 30,</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">2017</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">2016</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="3" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">2016</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td colspan="11" style="text-align: center; width: 1%"><b><font style="font: xx-small Times New Roman">(dollars in thousands)</font></b></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%; background-color: #cceeff"><font style="font: x-small Times New Roman">Average daily balance during the year-to-date</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">9,065</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"><font style="font: x-small Times New Roman">Average interest rate during the year-to-date</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5.95</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5.95</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5.95</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%; background-color: #cceeff"><font style="font: x-small Times New Roman">Maximum month end balance during the year-to-date</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"><font style="font: x-small Times New Roman">Weighted average interest rate during the year-to-date</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5.95</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5.95</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">5.95</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">%</font></td></tr></table></div> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">As of September 30, 2017, there were no repurchase agreements outstanding. 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width: 100%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Overnight and</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Up to 30</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" colspan="2" style="text-align: center; width: 1%"><font style="font: x-small Times New Roman">Greater Than</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Continuous</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">Days</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">31-90 Days</font></td> <td nowrap="nowrap" style="text-align: center; width: 1%">&#160;&#160;&#160;&#160;&#160;</td> <td nowrap="nowrap" colspan="2" style="border-bottom: #000000 1pt solid; text-align: center; width: 1%"><font style="font: x-small Times New Roman">90 Days</font></td> <td nowrap="nowrap" style="text-align: center; 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width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%; padding-left: 30pt; text-indent: -15pt"><font style="font: x-small Times New Roman">U.S. Treasury and agency securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%; background-color: #cceeff; padding-left: 30pt; text-indent: -15pt"><font style="font: x-small Times New Roman">Residential mortgage pass-through securities</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">16,826</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 1pt solid; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">16,826</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 100%"><font style="font: x-small Times New Roman">Total borrowings</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; 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width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">16,826</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">16,826</font></td></tr> <tr> <td colspan="16" style="width: 100%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" colspan="10" style="text-align: left; width: 106%; background-color: #cceeff"><font style="font: x-small Times New Roman">Amounts related to agreements not included in offsetting disclosure in Note 14:</font></td> <td nowrap="nowrap" style="text-align: left; 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text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$&#160;&#160;&#160;&#160;&#160;</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">164</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%"><b><font style="font: x-small Times New Roman">Liabilities:</font></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; background-color: #cceeff; padding-left: 15pt"><font style="font: x-small Times New Roman">Repurchase agreements</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%; background-color: #cceeff"><font style="font: x-small Times New Roman">-</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%"><u><font style="font: x-small Times New Roman">December 31, 2016</font></u></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; background-color: #cceeff"><b><font style="font: x-small Times New Roman">Assets:</font></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; padding-left: 15pt"><font style="font: x-small Times New Roman">Interest rate swaps</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">88</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: left; 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width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">88</font></td></tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="text-align: left; width: 83%; background-color: #cceeff"><b><font style="font: x-small Times New Roman">Liabilities:</font></b></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: right; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; width: 1%; background-color: #cceeff"></td> <td nowrap="nowrap" style="text-align: left; 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width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td> <td nowrap="nowrap" style="text-align: right; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">15,000</font></td> <td nowrap="nowrap" style="text-align: left; width: 1%"></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: left; width: 1%"><font style="font: x-small Times New Roman">$</font></td> <td nowrap="nowrap" style="border-bottom: #000000 2pt double; text-align: right; width: 1%"><font style="font: x-small Times New Roman">-</font></td></tr></table><br /> 38000 38000 62700000 65600000 15300000 164000 88000 164000 88000 400680000 353378000 17685000 368482000 14333000 14982000 320178000 18218000 1099000 1099000 7712000 7712000 70105000 4509000 65596000 1198000 1198000 47430000 47430000 65596000 47430000 18218000 17865000 18335000 -353000 -117000 18218000 17865000 <table cellpadding="1" cellspacing="0" style="border-collapse: collapse; font: 8.25pt Segoe UI"> <tr> <td>Discounted Cash Flows</td></tr> </table> <table cellpadding="1" cellspacing="0" style="border-collapse: collapse; font: 8.25pt Segoe UI"> <tr> <td>Discounted Cash Flows</td></tr> </table> Appraisals of collateral value Discounted cash flows (30%) Market approach (70%) Appraisals of collateral value Discounted cash flows (30%) Market approach (70%) <table cellpadding="1" cellspacing="0" style="border-collapse: collapse; font: 8.25pt Segoe UI"> <tr> <td>&#160;Discount Rate</td></tr> </table> <table cellpadding="1" cellspacing="0" style="border-collapse: collapse; font: 8.25pt Segoe UI"> <tr> <td>&#160;Discount Rate</td></tr> </table> 0.028 0.028 Comparable sales Indications under securitized transactions expressed as a price to unpaid principal balance Comparable sales Indications under securitized transactions expressed as a price to unpaid principal balance 0.00 0.15 0.06 0.00 0.15 0.06 59000 46000 40000 100000 37000 100000 0.14 0.14 141262000 200399000 141262000 200399000 400516000 353290000 29672000 24310000 89386000 78005000 47430000 41956000 12409000 65596000 3862104000 3462138000 3862104000 3462138000 14841000 12965000 12830000 2011000 2026000 10939000 719582000 694977000 719582000 694977000 2904285000 2649717000 1078439000 1825846000 1681044000 968673000 586474000 478286000 586474000 478286000 56519000 55901000 56519000 55901000 4304000 4142000 4304000 4142000 4304000 4142000 1017000 2552000 2491000 -309000 -306000 -103000 -204000 126000 124000 42000 83000 -183000 -182000 -61000 -121000 723000 933000 -97000 -52000 3649000 3831000 750000 750000 P10Y P3Y 1006000 1366000 P1Y3M19D P1Y 151194 347521 358367 226791 226791 151572 151194 189455 180000 0 57164 24891 37336 343991 6.11 6.26 10.89 6.03 P1Y10M25D P1Y10M10D 6425663 6387912 111273 103078 65359 18.47 19.19 16.81 20.41 23.82 22.75 16.49 25269 18.47 358000 386000 119000 129000 480000 457000 160000 166000 309000 305000 103000 101000 -2000 189000 234000 62000 64000 309000 306000 103000 204000 -309000 -306000 -103000 -204000 -120000 -72000 -41000 -140000 3 2500000 7500000 5000000 2018-04-02 2018-04-02 2018-07-16 2034-01-23 2025-07-01 1400000000 796000000 585124000 461280000 0.0161 0.0155 415124000 231280000 0.0141 0.0102 105000000 130000000 0.0169 0.0184 25000000 35000000 0.0185 0.016 40000000 65000000 0.0343 0.0282 15000000 0.08 0 16800000 9065000 15000000 15000000 0.0595 0.0595 0.0595 15000000 15000000 15000000 0.0595 0.0595 0.0595 16826000 16826000 16826000 16826000 1826000 5000000 0.0285 0.0416 5200000 50000000 P5Y 0.0575 three month LIBOR rate plus 393 basis points 498000 2003-12-19 2003-12-19 5000000 5000000 $1,000 per Capital Security $1,000 per Capital Security Floating 3-month LIBOR + 285 Basis Points Floating 3-month LIBOR + 285 Basis Points 2034-01-23 2034-01-23 2009-01-23 2009-01-23 164000 88000 164000 88000 164000 88000 15000000 15000000 15000000 180000 180000 <p style="text-align: left"><b><font style="font: x-small Times New Roman">Note 2. New Authoritative Accounting Guidance </font></b></p> <p style="text-align: justify; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2017-12 <i>&#147;Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.&#148;</i> ASU No. 2017-12 refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 will be effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Although management continues to evaluate the potential impact of ASU 2017-12 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.</font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2017-08, &#147;</font><i><font style="font: x-small Times New Roman">Receivables&#151;Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities</font></i><font style="font: x-small Times New Roman">.&#148; ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for us on January 1, 2019 and we are currently evaluating this ASU to determine the impact on our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2017-04, </font><i><font style="font: x-small Times New Roman">&#147;Intangibles &#150; Goodwill and Other (Topic 350).&#148; </font></i><font style="font: x-small Times New Roman">ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit&#146;s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2016-15, &#147;</font><i><font style="font: x-small Times New Roman">Statement of Cash Flows (Topic 230)</font></i><font style="font: x-small Times New Roman">: </font><i><font style="font: x-small Times New Roman">Classification of Certain Cash Receipts and Cash Payments</font></i><font style="font: x-small Times New Roman">&#148; provides guidance on the following eight specific cash flow issues: (1) Debt prepayment or debt extinguishment costs; (2) Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) Contingent consideration payments made after a business combination; (4) Proceeds from the settlement of insurance claims; (5) Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) Distributions received from equity method investees; (7) Beneficial interests in securitization transactions; and (8) Separately identifiable cash flows and application of the predominance principle. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Although management continues to evaluate the potential impact of ASU 2016-05 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2016-13, &#147;</font><i><font style="font: x-small Times New Roman">Financial Instruments &#150; Credit Losses (Topic 326): Assets Measured at Amortized Cost.&#148; ASU 2016-</font></i><font style="font: x-small Times New Roman">13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee that will be assessing our data and system needs. The Company has also met with multiple third-party vendors who may provide assistance in implementation and model creation. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2016-02, &#147;</font><i><font style="font: x-small Times New Roman">Leases (Topic 842)</font></i><font style="font: x-small Times New Roman">&#148; requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for the Company for reporting periods beginning January 1, 2019, with early adoption permitted. The Company must apply a modified retrospective transition approach for the applicable leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company is currently leasing seventeen properties as branch locations and is leasing certain office equipment. The adoption of ASU 2016-02 will result in increases to the Company's assets and liabilities. We are currently in the process of evaluating all of our leases for compliance with the new ASU. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2016-01, </font><i><font style="font: x-small Times New Roman">Financial Instruments &#150; Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.&#148;</font></i><font style="font: x-small Times New Roman"> ASU 2016-01, among other things; (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and we are currently evaluating the potential impact of ASU No. 2016-01 on our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">ASU No. 2014-09, </font><i><font style="font: x-small Times New Roman">&#147;Revenue from Contracts with Customers (Topic 606).&#148; </font></i><font style="font: x-small Times New Roman">ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, the FASB recently issued ASU 2015-14, </font><i><font style="font: x-small Times New Roman">&#147;Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date&#148;</font></i><font style="font: x-small Times New Roman"> which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. Although management continues to evaluate the potential impact of ASU 2014-09 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In March 2016, the FASB issued ASU No. 2016-08, </font><i><font style="font: x-small Times New Roman">Revenue from Contracts with Customers (Topic 606)</font></i><font style="font: x-small Times New Roman">: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments relate to when another party, along with the entity, is involved in providing a good or service to a customer. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In April 2016, the FASB issued ASU No. 2016-10, </font><i><font style="font: x-small Times New Roman">Revenue from Contracts with Customers (Topic 606)</font></i><font style="font: x-small Times New Roman">: Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: identifying performance obligations, and the licensing implementation guidance. The amendments in this update are intended to improve the operability and understandability of the licensing implementation guidance. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In May 2016, the FASB issued ASU No. 2016-12, </font><i><font style="font: x-small Times New Roman">Revenue from Contracts with Customers (Topic 606)</font></i><font style="font: x-small Times New Roman">: Narrow-Scope Improvements and Practical Expedients. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedients. </font></p> <p style="text-align: left; text-indent: 15pt"><font style="font: x-small Times New Roman">In December 2016, the FASB issued ASU No. 2016-20, </font><i><font style="font: x-small Times New Roman">Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements</font></i><font style="font: x-small Times New Roman">. The FASB board decided to issue a separate update for technical corrections and improvements to Topic 606 and other Topics amended by ASU No. 2014-09 to increase awareness of the proposals and to expedite improvements to ASU No. 2014-09. The amendment affects narrow aspects of the guidance issued in ASU No. 2014-09. </font></p> <p style="text-align: justify"><font style="font: x-small Times New Roman"><b style="font-style: normal; font-weight: normal">Note 15 &#150; Subsequent Event</b></font></p> <p style="text-align: justify; text-indent: 15pt"><font style="font: x-small Times New Roman">On November 2, 2017, all of the Bank&#8217;s loans secured by New York City medallions, which had been classified as held-for-sale since December 31, 2016, were returned to the loans held-for-investment portfolio. As of September 30, 2017, the portfolio totaled $47.4 million, net of a $15.3 million valuation allowance. 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available-for-sale the period Tax effect Net of tax Reclassification adjustment for realized gains included in net income Tax effect Net of tax Amortization of unrealized net losses on held-to-maturity securities transferred from available-for-sale securities Tax effect Net of tax Unrealized gains (losses) on cash flow hedges Tax effect Net of tax Unrealized pension plan gains and losses: Unrealized pension plan losses before reclassifications Tax effect Net of tax Reclassification adjustment for amortization included in net income Tax effect Net of tax Total other comprehensive income Total comprehensive income Statement [Table] Statement [Line Items] Balance Other comprehensive income, net of tax Dividend on series B preferred stock Cash dividends declared on common stock ($0.225 per share) Stock issuance costs Redemption of preferred stock Exercise of stock options (36,135 and 10,846 shares) Restricted stock grants (75,520 and 57,164 shares) Stock-based compensation expense Balance 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net (Increase) decrease in accrued interest receivable Decrease (increase) in other assets Increase (decrease) in other liabilities Net cash provided by operating activities Cash flows from investing activities Investment securities available-for-sale: Purchases Sales Maturities, calls and principal repayments Investment securities held-to-maturity: Purchases Maturities and principal repayments Net (purchases) redemptions of restricted investment in bank stocks Payments on loans held-for-sale Net increase in loans Proceeds from sales of fixed assets Purchases of premises and equipment Purchases of bank owned life insurance Proceeds from sale of other real estate owned Net cash used in investing activities Cash flows from financing activities Net increase in deposits Increase in subordinated debt Advances of Federal Home Loan Bank ("FHLB") borrowings Repayments of FHLB borrowings Repayment of repurchase agreement Cash dividends paid on common stock Cash dividends paid on preferred stock Common stock issuance costs Redemption of preferred stock Proceeds from exercise of stock options Net cash provided by financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental disclosures of cash flow information Cash payments for: Interest paid on deposits and borrowings Income taxes Supplemental disclosures of noncash investing activities Transfer of loans to other real estate owned Transfer of loans from held-for-investment to held-for-sale Transfer of investment securities from held-to-maturity to available-for-sale Organization, Consolidation and Presentation of Financial Statements [Abstract] Nature of Operations and Principles of Consolidation New Accounting Pronouncements and Changes in Accounting Principles [Abstract] New Authoritative Accounting Guidance Earnings Per Share [Abstract] Earnings per Common Share Investments, Debt and Equity Securities [Abstract] Securities Available-For-Sale Derivative Instruments and Hedging Activities Disclosure [Abstract] Derivatives Receivables [Abstract] Loans and the Allowance for Loan Losses Fair Value Disclosures [Abstract] Fair Value Measurements and Fair Value of Financial Instruments Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] Other Comprehensive Income (Loss) Disclosure of Compensation Related Costs, Share-based Payments [Abstract] Stock-Based Compensation Retirement Benefits [Abstract] Components of Net Periodic Pension Cost Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract] FHLB Borrowings Securities Sold under Agreements to Repurchase [Abstract] Securities Sold under Agreements to Repurchase Subordinated Borrowings [Abstract] Subordinated Debentures Offsetting [Abstract] Offsetting Assets and Liabilities Subsequent Events [Abstract] Subsequent Event New Authoritative Accounting Guidance Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] Unrealized Gain (Loss) on Investments [Table Text Block] Investments Classified by Contractual Maturity Date [Table Text Block] Schedule of Realized Gain (Loss) [Table Text Block] Schedule of Unrealized Loss on Investments [Table Text Block] Schedule of Interest Rate Derivatives [Table Text Block] Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] Loans held for sale [Table Text Block] Activity in the valuation allowance [Table Text Block] Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block] Loans and Leases Receivable Purchased Loans [Table Text Block] Schedule of Financing Receivables, Non Accrual Status [Table Text Block] Financing Receivable Credit Quality Indicators [Table Text Block] Impaired Financing Receivables [Table Text Block] Schedule of Average Balance and Interest Income Recognized on Impaired Loans [Table Text Block] Past Due Financing Receivables [Table Text Block] Schedule of Recorded Investment in Financing Receivables [Table Text Block] Allowance for Credit Losses on Financing Receivables [Table Text Block] Allowance for Loan and Lease Losses [Table Text Block] Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block] Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] Fair Value, Recurring basis [Table Text Block] Significant unobservable inputs used in fair value measurements [Table Text Block] Fair Value Measurements, Nonrecurring [Table Text Block] Fair Value, by Balance Sheet Grouping [Table Text Block] Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] Comprehensive Income (Loss) [Table Text Block] Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] Schedule of Share Based Compensation Stock Option Plan Table Text Block Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] Schedule of Unearned Performance Unit Awards [Table Text Block] Schedule of Changes in Projected Benefit Obligations [Table Text Block] Schedule of Net Benefit Costs [Table Text Block] Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] Schedule of Allocation of Plan Assets [Table Text Block] Schedule of Changes in Fair Value of Plan Assets [Table Text Block] Schedule of Defined Benefit Plans Disclosures [Table Text Block] Debt Disclosure [Abstract] Schedule of Long-term Debt Instruments [Table Text Block] Securities Sold Under Agreements To Repurchase Tables Schedule of information concerning repurchase agreements [Table Text Block] Schedule of remaining contractual maturity [Table Text Block] Schedule of Subordinated Debentures [Table Text Block] Offsetting Assets And Liabilities Tables Schedule of financial instruments that are eligible for offset [Table Text Block] Net income available to common stockholders Earnings allocated to participating securities Income attributable to common stock Weighted average common shares outstanding, including participating securities Weighted average participating securities Weighted average common shares outstanding Incremental shares from assumed conversions of options, performance units and restricted shares Weighted average common and equivalent shares outstanding Earnings per common share: Increase in amortized cost basis of available-for-sale securities Net increase to accumulated other comprehensive income net of tax Number of Investment Securities Sold Available-for-sale Securities Pledged as Collateral Description of Holding Securities Investment Securities (Details) - Unrealized gains on investment securities [Table] Investment Securities (Details) - Unrealized gains on investment securities [Line Items] Securities available-for-sale Securities available-for-sale, Amortized Cost Securities available-for-sale, Gross Unrealized Gains Securities available-for-sale, Gross Unrealized Losses Securities available-for-sale, Fair Value Investment securities held-to-maturity Investment Securities Held-to-Maturity, Amortized Cost Investment Securities Held-to-Maturity, Gross Unrealized Gains Investment Securities Held-to-Maturity, Gross Unrealized Losses Investment Securities Held-to-Maturity, Fair Value Total, Amortized Cost Total, Gross Unrealized Gains Total, Gross Unrealized Losses Total, Fair Value Investment Securities (Details) - Investments classified by maturity date [Table] Investment Securities (Details) - Investments classified by maturity date [Line Items] Securities available-for-sale: Due in one year or less, amortized cost Due in one year or less, fair value Due after one year through five years, amortized cost Due after one year through five years, fair value Due after five years through ten years, amortized cost Due after five years through ten years, fair value Due after ten years, amortized cost Due after ten years, fair value Securities available-for-sale: Fair Value Total, amortized cost Total, fair value Schedule of realized gains and losses [Abstract] Proceeds Gross gains on sales of securities Gross losses on sales of securities Net gains on sales of securities Less: tax provision on net gains Net gains on sales of securities, after tax Investment Securities (Details) - Schedule of unrealized losses not recognized in income [Table] Investment Securities (Details) - Schedule of unrealized losses not recognized in income [Line Items] Securities available-for-sale: Securities available-for-sale: Total, Fair Value Securities available-for-sale: Total, Unrealized Losses Securities available-for-sale: Less than 12 Months, Fair Value Securities available-for-sale: Less than 12 Months, Unrealized Losses Securities available-for-sale: 12 Months or Longer, Fair Value Securities available-for-sale: 12 Months or Longer, Unrealized Losses Investment securities held-to-maturity: Investment Securities Held-to-Maturity: Total, Fair Value Investment Securities Held-to-Maturity: Total, Unrealized Losses Investment Securities Held-to-Maturity: Less than 12 Months, Fair Value Investment Securities Held-to-Maturity: Less than 12 Months, Unrealized Losses Investment Securities Held-to-Maturity: 12 Months or Longer, Fair Value Investment Securities Held-to-Maturity: 12 Months or Longer, Unrealized Losses Fair Value, Total Unrealized Losses, Total Fair Value, Less than 12 Months Unrealized Losses, Less than 12 Months Fair Value, 12 Months or Longer Unrealized Losses, 12 Months or Longer Notional Amount of Interest Rate Cash Flow Hedge Derivatives Interest expense on derivatives Summary of interest rate swap designated as a cash flow hedges [Abstract] Notional amount Weighted average pay rates Weighted average receive rates Weighted average maturity Fair value Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income and statements of income relating to cash flow derivative instruments [Table] Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income and statements of income relating to cash flow derivative instruments [Line Items] Amount of gain (loss) recognized in OCI (Effective Portion) Amount of gain (loss) reclassified from OCI to interest income Amount of gain (loss) recognized in other Noninterest income (Ineffective Portion) DERIVATIVES (Details) - Summary of cash flow hedges included in the consolidated balance sheets [Table] DERIVATIVES (Details) - Summary of cash flow hedges included in the consolidated balance sheets [Line Items] Included in Assets: Interest rate swaps related to FHLB advances included in assets, Notional Amount Interest rate swaps related to FHLB advances included in assets, Fair Value LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Table] LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items] Class of Financing Receivable, Type [Axis] Non Accrual Contractual Due Loans held-for-sale, Carrying Amount Loans held-for-sale net of valuation allowance Loans Pledged as Collateral Loans performing under the restructured terms Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans Troubled debt restructurings Allowance for Loan and Lease Losses Period Increase Decrease Due to Trouble Debt Restructuring Valuation per Medallion Amount Specific allocations associated with taxi medallion, fair value Increase in allowance for loan and lease losses Number of loans Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Table] Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] Total carrying amount Schedule of accretable yield, or income expected to be collected [Abstract] Balance at beginning of period Reduction from loans paid off Increase in valuation allowance Balance at end of period Schedule of Accounts, Notes, Loans and Financing Receivable [Table] Accounts, Notes, Loans and Financing Receivable [Line Items] Gross loans Net deferred loan fees Total loans receivable Total carrying amount Balance at beginning of period Accretion of income Balance at end of period Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Table] Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] Financing Receivable, Recorded Investment, Nonaccrual Status Schedule of Financing Receivable, Recorded Investment, Credit Quality Indicator [Table] Financing Receivable, Recorded Investment [Line Items] Gross loans Schedule of Impaired Financing Receivable [Table] Financing Receivable, Impaired [Line Items] No related allowance recorded, Recorded Investment No related allowance recorded, Unpaid Principal Balance Impaired loans with No Related Allowance Average Recorded Investment Impaired loans with No Related Allowance Interest Income Recognized With an allowance recorded, Recorded Investment With an allowance recorded, Unpaid Principal Balance With an allowance recorded, Related Allowance Impaired loans With An Allowance Recorded Average Recorded Investment Impaired loans With An Allowance Recorded Interest Income Recognized Total, Recorded Investment Total, Unpaid Principal Balance Total, Related Allowance Total Impaired Loans Average Recorded Investment Total Impaired Loans Interest Income Recognized Schedule of Financing Receivables Past Due [Table] Financing Receivable, Recorded Investment, Past Due [Line Items] Nonaccrual Total Past Due and Nonaccrual Current Gross Loans Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Table] Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items] ALLL ALLL, individually evaluated for impairment ALLL, collectively evaluated for impairment ALLL, acquired portfolio ALLL, acquired with deteriorated credit quality Total ALLL Gross loans Loans Receivable, individually evaluated for impairment Loans Receivable, collectively evaluated for impairment Loans Receivable, acquired portfolio Loans Receivables, acquired with deteriorated credit quality Total gross loans Schedule of Financing Receivable, Allowance for Credit Losses [Table] Financing Receivable, Allowance for Credit Losses [Line Items] Balance Charge-offs Recoveries Provision Balance Beginning balance Additions Payoffs/paydowns Transfers Other Ending balance Troubled Debt Restructuring, Debtor, Current Period [Table] Troubled Debt Restructuring, Debtor, Current Period [Line Items] Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Impaired Financing Receivable, with Related Allowance, Recorded Investment Impaired Financing Receivable, Related Allowance Loans held-for-sale requiring valuation allowance, gross carrying amount Loans held-for-sale requiring valuation allowance, amount of allowance Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value, assets and liabilities measured on recurring basis [Table] Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value, assets and liabilities measured on recurring basis [Line Items] Recurring fair value measurements: Assets Securities: Securities: Available-for-sale, Fair Value Derivatives Assets: Available-for-sale, Fair Value FAIRVALUEMEASUREMENTSANDFAIRVALUEOFFINANCIALINSTRUMENTSDetailsScheduleofAssetsatFairValueonNonRecurringBasisTable [Table] FAIRVALUEMEASUREMENTSANDFAIRVALUEOFFINANCIALINSTRUMENTSDetailsScheduleofAssetsatFairValueonNonRecurringBasisLineItems [Line Items] Assets measured at fair value on a nonrecurring basis: Assets measured at fair value on a nonrecurring basis Balance of recurring Level 3 assets Federal agency obligations Purchases Sales Transfer into Level 3 Transfers out of Level 3 Other Principal paydowns Balance of recurring Level 3 assets Fair value Valuation Techniques Unobservable Input Range Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Table] Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] Fair Value Valuation Technique Unobservable Inputs Capitalization rate Lease rates for a medallion Purchase amount per medallion Discount Range Collateral Value Fair Value, by Balance Sheet Grouping [Table] Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] Financial assets Cash and due from banks, Carrying Amount Cash and due from banks, Fair Value Securities available-for-sale, Carrying Amount Investment securities held-to-maturity, Carrying Amount Investment securities held-to-maturity, Fair Value Restricted investment in bank stocks, Carrying Amount Restricted investment in bank stocks, Fair Value Loans held-for-sale, Fair Value Net loans, Carrying Amount Net loans, Fair Value Derivatives, Carrying Amount Derivatives, Fair Value Accrued interest receivable, Carrying Amount Accrued interest receivable, Fair Value Financial liabilities Noninterest-bearing deposits, Carrying Amount Noninterest-bearing deposits, Fair Value Interest-bearing deposits, Carrying Amount Interest-bearing deposits, Fair Value Borrowings, Carrying Amount Borrowings, Fair Value Subordinated debentures, net Subordinated debentures, Fair Value Accrued interest payable, Carrying Amount Accrued interest payable, Fair Value COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Table] COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items] Sale of securities available-for-sale Net gains on sale of securities available for sale Sale of securities available-for-sale Income tax expense Sale of securities available-for-sale Amortization of unrealized holding (losses) gains on securities transferred from available-for-sale to held-to-maturity Interest income Amortization of unrealized holding (losses) gains on securities transferred from available-for-sale to held-to-maturity Income tax benefit Amortization of unrealized holding (losses) gains on securities transferred from available-for-sale to held-to-maturity Amortization of pension plan net actuarial losses Salaries and employee benefits Amortization of pension plan net actuarial losses Income tax benefit Amortization of pension plan net actuarial losses Total reclassification Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract] Securities available-for-sale Cash flow hedge Unamortized component of securities transferred from available-for-sale to held-to-maturity, net of tax Defined benefit pension and post-retirement plans Total accumulated other comprehensive loss Share Based Compensation Arrangement by Share Based Payment Award Number of Plans Maximum number of shares of common stock or equivalents issued Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) Share-based Compensation Arrangement by Share-based Payment Award, Award expiration Period Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period Restricted shares granted Unrecognized compensation cost related to nonvested shares Weighted average period related to compesation cost Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost (in Dollars) Outstanding Beginning Balance Granted Exercised Forfeited/cancelled/expired Outstanding Ending Balance Exercisable Ending Balance Outstanding Beginning Balance, Weighted-Average Exercise Price Granted, Weighted-Average Exercise Price Exercised, Weighted-Average Exercise Price Forfeited/cancelled/expired, Weighted-Average Exercise Price Outstanding Ending Balance, Weighted-Average Exercise Price Exercisable Ending Balance, Weighted-Average Exercise Price Outstanding Ending Balance - Weighted-Average Remaining Contractual Term (In Years) Exercisable Ending Balance - Weighted-Average Remaining Contractual Term (In Years) Outstanding Ending Balance - Aggregate Intrinsic Value Exercisable Ending Balance - Aggregate Intrinsic Value Outstanding, beginning balance Vested Forfeited/cancelled/expired Outstanding, ending balance Outstanding, beginning balance Granted Vested Forfeited/cancelled/expired Outstanding, ending balance Awarded Forfeited Adjustments Awarded Forfeited Adjustments Average daily balance during the year Interest cost Expected return on plan assets Net amortization Recognized settlement loss Net periodic pension cost Amortization of actuarial loss Total recognized in other comprehensive income Total recognized in net expense and OCI (before tax) Defined Benefit Plan, Contributions by Employer Number of Federal Home Loan Bank Notes Extinguishment of Debt, Amount Debt Instrument, Maturity Date Long-term Line of Credit Line of Credit Facility, Remaining Borrowing Capacity By type of borrowing: FHLB borrowings (in Dollars) Weighted average interest rates By remaining period to maturity: Less than 1 year (in Dollars) Less than 1 year 1 year through less than 2 years (in Dollars) 1 year through less than 2 years 2 years through less than 3 years (in Dollars) 2 years through less than 3 years 3 years through less than 4 years (in Dollars) 3 years through less than 4 years 4 years through 5 years (in Dollars) 4 years through 5 years Outstanding repurchase agreement Percentage by which fair value of pledged securities must meet or exceed gross outstanding balance Securities carrying amount Average daily balance during the year-to-date Average interest rate during the year-to-date Maximum month end balance during the year-to-date Weighted average interest rate during the year-to-date Total Borrowings Amounts related to agreements not included in offsetting disclosure in Note 14: Subordinated Debentures (Details) [Table] Subordinated Debentures (Details) [Line Items] Value of subordinated debentures received by Trust Percentage Rate Added to Libor Floating interest rate on subordinated debentures Proceeds from Issuance of Debt Debt Instrument, Term Debt Instrument, Interest Rate, Stated Percentage Debt Instrument, Description of Variable Rate Basis Debt Instrument, Basis Spread on Variable Rate Debt Issuance Cost Schedule of Subordinated Borrowing [Abstract] Issuance Date Securities Issued Liquidation Value Coupon Rate Maturity Redeemable by Issuer Beginning Gross Amounts Recognized, Assets Gross Amounts Offset in the Statement of Financial Position, Assets Net Amounts of Assets Presented in the Statement of Financial Position, Assets Financial Instruments Recognized, Assets Cash or Financial Instrument Collateral, Assets Net Amount, Assets Gross Amounts Recognized, Liabilities Gross Amounts Offset in the Statement of Financial Position, Liabilities Net Amounts of Assets Presented in the Statement of Financial Position, Liabilities Financial Instruments Recognized, Liabilities Cash or Financial Instrument Collateral, Liabilities Net Amount, Liabilities Gross Amounts Recognized, Total Gross Amounts Offset in the Statement of Financial Position, Total Net Amounts of Assets Presented in the Statement of Financial Position, Total Financial Instruments Recognized, Total Cash or Financial Instrument Collateral, Total Net Amount, Total Subsequent Event [Table] Subsequent Event [Line Items] Value of loans held-for-sale, subsequently returned to loans held-for-investment portfolio Valuation allowance of loans held-for-sale, subsequently returned to loans held-for-investment portfolio Estimated pretax charge for transfer of loans returned to held-for-investment portfolio Accretion on bank premises. Accretion on borrowings. Accretion on deposits. Accumulated other comprehensive income loss cash flow hedge. Accumulated other comprehensive income (loss), unamortized component of securities transferred from available-for-sale to held-to-maturity, net of tax. Activity in the valuation allowance [Table Text Block] Allowance for loan and lease losses, acquired portfolio. Allowance for loan and lease losses, acquired with deteriorated credit quality. Allowance for loan and lease losses period increase decrease due to trouble debt restructuring. Amortization of unrealized holding gains on securities transferred from available-for-sale to held-to-maturity securities Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity securities before tax. Amortization of unrealized holding gains on securities transferred from available-for-sale to held-to-maturity securities, net of tax. Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity securities tax. Cutstom Element. Appraisals of collateral valuation technique. Carrying value of investment in debt and equity securities categorized neither as held-to-maturity nor trading. Amount of accumulated pre-tax unrealized loss on investments in available-for-sale securities that have been in a loss position for less than twelve months impacting investments. Amount of accumulated pre-tax unrealized loss on investments on securities classified as available-for-sale securities impacting investments. Amount of accumulated pre-tax unrealized loss on investments in available-for-sale securities that have been in a loss position for less than twelve months impacting investments. Available for sale securities gross unrealized gain accumulated in investments. Available for sale securities gross unrealized loss accumulated in investments. Average daily balance during the year. Average interest rate during the year. Cash or financial instrument collateral assets. Cash or financial instrument collateral liabilities. Certificate of deposit. Commercial loans held-for-sale segment [Member] Commercial (taxi medallion loans) [Member] Cutstom Element. Cutstom Element. Corporate Bonds and Notes. Debt Issuance Cost. Defined benefit plan amortization and deferral net. Defined benefit plan amounts recognized in net periodic benefit cost and other comprehensive income before tax. Deposit, loan and other income. Cutstom Element. Cutstom Element. Cutstom Element. Cutstom Element. Description of holding securities. Dividends paid on earnings allocated to participating securities. Employee Director Stock Option Plan 2009. Equity Compensation Plan, 2009 [Member] Cutstom Element. Cutstom Element. Custom Element. Custom Element. Cutstom Element. Cutstom Element. Amount of purchases of financial instrument classified as an asset measured using unobservable inputs that reflect the entity's Federal agency obligations. Fair value of financial instrument classified as an asset measured using unobservable inputs that reflect the entity's own assumption about the Other assumptions market participants would use in pricing. Fair value of financial instrument classified as an asset measured using unobservable inputs that reflect the entity's own assumption about the Other assumptions market participants would use in pricing principal pay down. Federal Agency Obligations. Federal home loan bank. Federal home loan bank note three. Federal home loan bank note two. Net amount of financial instruments recognized. Financial instruments recognized assets. Financial instruments recognized assets net amount. Financial instruments recognized liabilities. Financial instruments recognized liabilities. Balance of troubled debt allowance for loan and lease losses. Additions to the balance of troubled debt allowance for loan and lease losses. Other changes in the balance of troubled debt allowance for loan and lease losses. Payoffs or paydowns of troubled debt allowance for loan and lease losses. Transfers into the balance of troubled debt allowance for loan and lease losses. Fixed-to-floating Rate Subordinated Notes [Member] Floating interest rate on subordinated debentures. Gain loss on sale of investments net of tax. Gross amounts offset in the statement of financial position total amount. Gross amounts recognized total. Held to maturity securities accumulated unrecognized holding gain. Held to maturity securities accumulated unrecognized gross holding loss. This item represents the excess of amortized cost basis over fair value of securities in a loss position and which are categorized as held-to-maturity. Investment securities held-to-maturity: less than 12 months, unrealized losses. Amount of accumulated pre-tax unrealized loss on investments in held-to-maturity securities that have been in a loss position for twelve months or longer. Impaired financing receivable with related allowance. Impaired loans. Income attributable to common stock. Increase in amortized cost basis of available-for-sale securities. Increase in subordinated debt. Incremental shares from assumed conversions of options, performance units and restricted shares. Fair value as of the balance sheet date of interest-bearing deposit liabilities. Interest expense on derivatives. Cutstom Element. Cutstom Element. Cutstom Element. Cutstom Element. Cutstom Element. Cutstom Element. Issuance date of the preferred securities. Lease rates for a medallion. Description of liquidation value per capital share. Amount before allowance of loans and leases held in portfolio, including but not limited to, commercial and consumer loans. Includes deferred interest and fees, undisbursed portion of loan balance, unamortized costs and premiums and discounts from face amounts. Excludes loans and leases covered under loss sharing agreements. Loans and leases receivable purchase credit impaired loans. Loans and leases receivable purchased loans. Loans and leases receivable purchased loans accretion of income. Loans and Leases Receivable Purchased Loans. Cutstom Element. Cutstom Element. Cutstom Element. Cutstom Element. Cutstom Element. Cutstom Element. Loans and the allowance for loan losses details line items. Loans and the allowance fo rloan losses details table. Loans held-for-sale [Member] Tabular disclosure of loans held for sale. Loans performing under the restructured terms Loans Receivable, acquired portfolio. Loans held-for-sale net of valuation allowance. Loans Receivables, acquired with deteriorated credit quality. Market approach [Member] Capitalization rate. Net amounts of assets presented in the statement of financial position. Net decrease in repurchase agreements. Non accrual contractual due. Fair value as of the balance sheet date of non interest-bearing deposit liabilities. Nonvested member. Cutstom Element. Number of federal home loan bank notes. Number of investment securities sold. Number of loans. Obligation of us states and political subdivisions. Offsetting Assets and Liabilities [TextBlock] Amount after tax and reclassification adjustments, of appreciation (loss) in value of unsold held to maturity securities. Excludes amounts related to other than temporary impairment (OTTI) loss. Tax effect of the income statement impact of the reclassification adjustment for unrealized gain (loss) realized upon the sale of available-for-sale securities. Other comprehensive income loss reclassification adjustment for net gains net of tax. Other comprehensive income loss reclassification adjustment for net gains tax effect. Cutstom Element. Other comprehensive income pension plan actuarial (gains) losses before tax. Cutstom Element. Cutstom Element. Amount after tax and reclassification adjustments, of appreciation (loss) in value of unsold held to maturity securities. Excludes amounts related to other than temporary impairment (OTTI) loss. Cutstom Element. Other securities Percentage by which the fair value exceeds the gross outstanding balance of pledged securities. Percentage rate added to LIBOR. Redemption of preferred stock. Redemption of preferred stock. Proceeds from sale of investment securities. Purchase amount per medallion. Rate added to LIBOR. Reclassification adjustment for realized losses included in net income. Reclassification adjustment for realized losses included in net income, net of tax. Reclassification adjustment for realized losses included in net income, tax effect. Recorded Investment [Member] Redeemable by issuer beginning date. Schedule of average balance and interest income recognized on impaired loans. Schedule of recorded investment in financing receivables. Share based compensation stock option plan. Tabular disclosure of schedule of unearned performance unit awards. Securities available for sale net. Securities sold under agreements to repurchase text block. Share based compensation arrangement by share based payment award number of plans. Restricted stock and performance units grants, shares. Stock issued during period value restricted stock and performance units award gross. Subordinated debentures debt issuance costs. Cutstom Element. Cutstom Element. Subordinated Debt from Trust [Member] Tax provision on gain on sale of investments. Temporarily impaired securities, 12 months or longer, aggregate losses. Temporarily impaired securities, 12 months or longer, fair value. Temporarily impaired securities, less than 12 months, aggregate losses. Temporarily impaired securities, less than 12 months, fair value. Temporarily impaired securities, total fair value. Temporarily impaired securities, total unrealized losses. Total investment securities, amortized cost. Total investment securities, fair value. Total investment securities, gross unrealized gains. Total investment securities, gross unrealized losses. Trust Preferred Securities. Unearned member. Unrealized holding gain on cash flow hedge before tax. Unrealized holding gain on cash flow hedge net of tax. Unrealized holding gain on cash flow hedge tax. Amount before tax and reclassification adjustments of unrealized holding gain (loss) on held to maturity securities. Unrecognized compensation cost related to nonvested shares. Value of subordinated debentures received by Trust. Weighted average common and equivalent shares outstanding. Weighted average common shares outstanding. Weighted average common shares outstanding, including participating securities. Weighted average interest rate during the year. Weighted average participating securities. Weighted average period related to compensation cost. Weighted average receive rates. Valuation per Medallion Amount. Specific allocations associated with taxi medallion, fair value. Outstanding repurchase agreement. 2017 Equity Compensation Plan [Member] Loans held-for-sale requiring valuation allowance, gross carrying amount. Loans held-for-sale requiring valuation allowance, amount of allowance. Payments on loans held-for-sale. Net income (loss) available to common stockholders Transfer of investment securities from held-to-maturity to available-for-sale. Transfer of investment securities from held-to-maturity to available-for-sale. Value of loans held-for-sale, subsequently returned to loans held-for-investment portfolio. Valuation allowance of loans held-for-sale, subsequently returned to loans held-for-investment portfolio. Estimated pretax charge for transfer of loans returned to held-for-investment portfolio. 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Document and Entity Information - shares
9 Months Ended
Sep. 30, 2017
Nov. 03, 2017
Document And Entity Information    
Entity Registrant Name ConnectOne Bancorp, Inc.  
Entity Central Index Key 0000712771  
Document Type 10-Q  
Document Period End Date Sep. 30, 2017  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   32,015,317
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2017  
XML 14 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF CONDITION - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
ASSETS    
Cash and due from banks $ 41,114 $ 37,150
Interest-bearing deposits with banks 100,148 163,249
Cash and cash equivalents 141,262 200,399
Securities available-for-sale 400,516 353,290
Loans held-for-sale (net of valuation allowance of $15,287 and $-0-, respectively) 89,386 78,005
Loans receivable 3,889,289 3,475,832
Less: Allowance for loan losses 29,870 25,744
Net loans receivable 3,859,419 3,450,088
Investment in restricted stock, at cost 29,672 24,310
Bank premises and equipment, net 21,917 22,075
Accrued interest receivable 14,841 12,965
Bank owned life insurance 110,762 98,359
Other real estate owned 626
Goodwill 145,909 145,909
Core deposit intangibles 2,533 3,088
Other assets 28,538 37,234
Total assets 4,844,755 4,426,348
Deposits:    
Noninterest-bearing 719,582 694,977
Interest-bearing 2,904,187 2,649,294
Total deposits 3,623,769 3,344,271
Borrowings 585,124 476,280
Subordinated debentures (net of debt issuance costs of $498 and $621, respectively) 54,657 54,534
Other liabilities 23,514 20,231
Total liabilities 4,287,064 3,895,316
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Common stock, no par value, authorized 50,000,000 shares; issued 34,079,239 shares at September 30, 2017 and 34,018,731 at December 31, 2016; outstanding 32,015,317 shares at September 30, 2017 and 31,948,307 at December 31, 2016 412,546 412,726
Additional paid-in capital 12,840 11,407
Retained earnings 151,851 126,462
Treasury stock, at cost (2,063,922 common shares at September 30, 2017 and December 31, 2016) (16,717) (16,717)
Accumulated other comprehensive loss (2,829) (2,846)
Total stockholders' equity 557,691 531,032
Total liabilities and stockholders' equity $ 4,844,755 $ 4,426,348
XML 15 R3.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]    
Valuation allowance $ 15,287 $ 0
Subordinated debentures, debt issuance costs $ 498 $ 621
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 34,079,239 34,018,731
Common stock, shares outstanding 32,015,317 31,948,307
Treasury Stock, Shares 2,063,922 2,063,922
XML 16 R4.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Interest income        
Interest and fees on loans $ 43,241 $ 37,803 $ 121,879 $ 109,381
Interest and dividends on securities:        
Taxable 1,695 1,774 5,042 5,879
Tax-exempt 870 988 2,655 2,867
Dividends 362 352 982 1,074
Interest on federal funds sold and other short-term investments 170 261 555 541
Total interest income 46,338 41,178 131,113 119,742
Interest expense        
Deposits 6,113 5,159 16,717 13,532
Borrowings 3,206 2,995 9,135 9,472
Total interest expense 9,319 8,154 25,852 23,004
Net interest income 37,019 33,024 105,261 96,738
Provision for loan losses 1,450 6,750 4,000 13,500
Net interest income after provision for loan losses 35,569 26,274 101,261 83,238
Noninterest income        
Annuities and insurance commissions 68 39 140
Income on bank owned life insurance 985 615 2,402 1,843
Net gains on sale of loans held-for-sale 50 56 120 147
Deposit, loan and other income 721 706 2,023 1,984
Net gains on sales of securities available-for-sale 4,131 1,596 4,234
Total noninterest income 1,756 5,576 6,180 8,348
Noninterest expenses        
Salaries and employee benefits 8,872 7,791 25,710 23,143
Occupancy and equipment 1,969 2,049 6,215 6,450
FDIC insurance 840 745 2,550 1,955
Professional and consulting 740 667 2,192 2,078
Marketing and advertising 225 293 770 817
Data processing 1,176 1,002 3,474 3,036
Amortization of core deposit intangible 169 193 555 627
Increase in valuation allowance, loans held-for-sale 3,000 15,325
Other expenses 1,650 1,811 5,402 5,150
Total noninterest expenses 18,641 14,551 62,193 43,256
Income before income tax expense 18,684 17,299 45,248 48,330
Income tax expense 5,607 5,443 12,608 15,224
Net income 13,077 11,856 32,640 33,106
Less: Preferred stock dividends 22
Net income available to common stockholders $ 13,077 $ 11,856 $ 32,640 $ 33,084
Earnings per common share:        
Basic $ 0.41 $ 0.39 $ 1.02 $ 1.1
Diluted 0.41 0.39 1.01 1.09
Dividends per common share $ 0.075 $ 0.075 $ 0.225 $ 0.225
XML 17 R5.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]        
Net income $ 13,077 $ 11,856 $ 32,640 $ 33,106
Unrealized gains and losses:        
Unrealized holding gains (losses) on available-for-sale securities arising during the period 415 (523) 1,332 1,551
Tax effect (165) 187 (525) (634)
Net of tax 250 (336) 807 917
Unrealized gains on securities transferred from held-to-maturity to available-for-sale the period 10,069 10,069
Tax effect (3,815) (3,815)
Net of tax 6,254   6,254
Reclassification adjustment for realized gains included in net income (4,131) (1,596) (4,234)
Tax effect 1,640 579 1,682
Net of tax (2,491) (1,017) (2,552)
Amortization of unrealized net losses on held-to-maturity securities transferred from available-for-sale securities 1,890 1,986
Tax effect (774) (813)
Net of tax   1,116 1,173
Unrealized gains (losses) on cash flow hedges 119 644 76 (1,081)
Tax effect (48) (263) (31) 441
Net of tax 71 381 45 (640)
Unrealized pension plan gains and losses:        
Unrealized pension plan losses before reclassifications (2) (1)
Tax effect 1
Net of tax (1) (1)
Reclassification adjustment for amortization included in net income 103 204 309 306
Tax effect (42) (83) (126) (124)
Net of tax 61 121 183 182
Total other comprehensive income 382 5,045 17 5,333
Total comprehensive income $ 13,459 $ 16,901 $ 32,657 $ 38,439
XML 18 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive (Loss) Income [Member]
Total
Balance at Dec. 31, 2015 $ 11,250 $ 374,287 $ 8,527 $ 104,606 $ (16,717) $ (4,609) $ 477,344
Net income 33,106 33,106
Other comprehensive income, net of tax 5,333 5,333
Dividend on series B preferred stock (22) (22)
Cash dividends declared on common stock ($0.225 per share) (6,805) (6,805)
Redemption of preferred stock (11,250) (11,250)
Exercise of stock options (36,135 and 10,846 shares) 232 232
Restricted stock grants (75,520 and 57,164 shares)
Stock-based compensation expense 1,650 1,650
Balance at Sep. 30, 2016 374,287 10,409 130,885 (16,717) 724 499,588
Balance at Dec. 31, 2016 412,726 11,407 126,462 (16,717) (2,846) 531,032
Net income 32,640 32,640
Other comprehensive income, net of tax 17 17
Cash dividends declared on common stock ($0.225 per share) (7,251) (7,251)
Stock issuance costs (180) (180)
Exercise of stock options (36,135 and 10,846 shares) 118 118
Restricted stock grants (75,520 and 57,164 shares)
Stock-based compensation expense 1,315 1,315
Balance at Sep. 30, 2017 $ 412,546 $ 12,840 $ 151,851 $ (16,717) $ (2,829) $ 557,691
XML 19 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Statement of Stockholders' Equity [Abstract]    
Cash dividends declared on common stock (in Dollars per share) $ 0.225 $ 0.225
Exercise of stock options, shares 10,846 36,135
Restricted stock and performance units grants, shares 57,164 75,520
XML 20 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities    
Net income $ 32,640 $ 33,106
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization of premises and equipment 2,364 2,084
Provision for loan losses 4,000 13,500
Increase in valuation allowance 15,325
Amortization of intangibles 555 627
Net accretion of loans (1,106) (3,381)
Accretion on bank premises (58) (94)
Accretion on deposits (19) (167)
Accretion on borrowings (156) (250)
Stock-based compensation 1,315 1,650
Gains on sales of investment securities, net (1,596) (4,234)
Gains on sales of loans held-for-sale, net (120) (147)
Gains on sales of fixed assets, net (8)
Loans originated for resale (6,790) (6,399)
Proceeds from sale of loans held-for sale 12,015 4,948
Net loss (gain) on sale of other real estate owned 82 (182)
Increase in cash surrender value of bank owned life insurance (2,403) (1,843)
Amortization of premiums and accretion of discounts on investments securities, net 1,808 1,148
(Increase) decrease in accrued interest receivable (1,876) 48
Decrease (increase) in other assets 8,895 (2,813)
Increase (decrease) in other liabilities 3,444 (981)
Net cash provided by operating activities 68,311 36,620
Investment securities available-for-sale:    
Purchases (138,945) (114,844)
Sales 29,543 85,253
Maturities, calls and principal repayments 61,700 109,452
Investment securities held-to-maturity:    
Purchases (1,000)
Maturities and principal repayments 14,758
Net (purchases) redemptions of restricted investment in bank stocks (5,362) 8,077
Payments on loans held-for-sale 2,841
Net increase in loans (447,457) (359,945)
Proceeds from sales of fixed assets 8
Purchases of premises and equipment (2,148) (1,769)
Purchases of bank owned life insurance (10,000) (17,000)
Proceeds from sale of other real estate owned 1,124 2,992
Net cash used in investing activities (508,696) (274,026)
Cash flows from financing activities    
Net increase in deposits 279,517 478,150
Advances of Federal Home Loan Bank ("FHLB") borrowings 780,000 375,000
Repayments of FHLB borrowings (656,000) (565,000)
Repayment of repurchase agreement (15,000)
Cash dividends paid on common stock (7,207) (6,805)
Cash dividends paid on preferred stock (22)
Common stock issuance costs (180)
Redemption of preferred stock (11,250)
Proceeds from exercise of stock options 118 232
Net cash provided by financing activities 381,248 270,305
Net change in cash and cash equivalents (59,137) 32,899
Cash and cash equivalents at beginning of period 200,399 200,895
Cash and cash equivalents at end of period 141,262 233,794
Cash payments for:    
Interest paid on deposits and borrowings 25,807 22,791
Income taxes 4,670 18,195
Supplemental disclosures of noncash investing activities    
Transfer of loans to other real estate owned 580 887
Transfer of loans from held-for-investment to held-for-sale 34,652 13,514
Transfer of investment securities from held-to-maturity to available-for-sale $ 209,855
XML 21 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Nature of Operations and Principles of Consolidation
9 Months Ended
Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations and Principles of Consolidation

Note 1. Nature of Operations and Principles of Consolidation

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of State of New Jersey and is a registered bank holding company. The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), and NJCB Spec-1, LLC (a New Jersey limited liability company).

The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages.

The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2017, or for any other interim period. The Company’s 2016 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements.

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.

The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.

XML 22 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
New Authoritative Accounting Guidance
9 Months Ended
Sep. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Authoritative Accounting Guidance

Note 2. New Authoritative Accounting Guidance

ASU No. 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU No. 2017-12 refines and expands hedge accounting for both financial (e.g., interest rate) and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. ASU 2017-12 will be effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Although management continues to evaluate the potential impact of ASU 2017-12 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for us on January 1, 2019 and we are currently evaluating this ASU to determine the impact on our consolidated financial statements.

ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” provides guidance on the following eight specific cash flow issues: (1) Debt prepayment or debt extinguishment costs; (2) Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) Contingent consideration payments made after a business combination; (4) Proceeds from the settlement of insurance claims; (5) Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) Distributions received from equity method investees; (7) Beneficial interests in securitization transactions; and (8) Separately identifiable cash flows and application of the predominance principle. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Although management continues to evaluate the potential impact of ASU 2016-05 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost.” ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee that will be assessing our data and system needs. The Company has also met with multiple third-party vendors who may provide assistance in implementation and model creation. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements.

ASU No. 2016-02, “Leases (Topic 842)” requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for the Company for reporting periods beginning January 1, 2019, with early adoption permitted. The Company must apply a modified retrospective transition approach for the applicable leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company is currently leasing seventeen properties as branch locations and is leasing certain office equipment. The adoption of ASU 2016-02 will result in increases to the Company's assets and liabilities. We are currently in the process of evaluating all of our leases for compliance with the new ASU.

ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things; (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and we are currently evaluating the potential impact of ASU No. 2016-01 on our consolidated financial statements.

ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, the FASB recently issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. Although management continues to evaluate the potential impact of ASU 2014-09 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments relate to when another party, along with the entity, is involved in providing a good or service to a customer. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: identifying performance obligations, and the licensing implementation guidance. The amendments in this update are intended to improve the operability and understandability of the licensing implementation guidance. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedients.

In December 2016, the FASB issued ASU No. 2016-20, Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements. The FASB board decided to issue a separate update for technical corrections and improvements to Topic 606 and other Topics amended by ASU No. 2014-09 to increase awareness of the proposals and to expedite improvements to ASU No. 2014-09. The amendment affects narrow aspects of the guidance issued in ASU No. 2014-09.

XML 23 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Earnings per Common Share
9 Months Ended
Sep. 30, 2017
Earnings per common share:  
Earnings per Common Share

Note 3. Earnings per Common Share

Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards previously granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

Earnings per common share have been computed based on the following:

Three Months Ended Nine Months Ended
September 30, September 30,
(in thousands, except for per share data)
    2017     2016     2017     2016
Net income available to common stockholders $        13,035 $                 11,812 $        32,534 $        33,106
Earnings allocated to participating securities 42 44 106 22
Income attributable to common stock $ 13,077 $ 11,856 $ 32,640 $ 33,128
Weighted average common shares outstanding, including participating securities 32,015 30,143 31,999 30,094
Weighted average participating securities (103 ) (113 ) (104 ) (98 )
Weighted average common shares outstanding 31,912 30,030 31,895 29,996
Incremental shares from assumed conversions of options, performance units and restricted shares 270 329 272 351
Weighted average common and equivalent shares outstanding 32,182 30,359 32,167 30,347
 
Earnings per common share:
Basic $ 0.41 $ 0.39 $ 1.02 $ 1.10
Diluted 0.41 0.39 1.01 1.09

There were no antidilutive share equivalents as of September 30, 2017 and September 30, 2016.

XML 24 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Available-For-Sale
9 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Securities Available-For-Sale

Note 4. Securities Available-For-Sale

The Company’s securities are all classified as available-for-sale at September 30, 2017 and December 31, 2016. Securities available-for-sale are reported at fair value with unrealized gains or losses included in equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of September 30, 2017 and December 31, 2016. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 7 of the Notes to Consolidated Financial Statements for a further discussion.

During the quarter ended September 30, 2016, the Company transferred all securities previously categorized as held-to-maturity to available-for-sale classification. The transfer resulted in an increase of approximately $210 million in amortized cost basis of available-for-sale securities and resulted in a net increase to accumulated other comprehensive income of $7.4 million, net of tax. The transfer enhanced liquidity and increased flexibility with regard to asset-liability management and balance sheet composition. As a result of the transfer, the Company believes it has tainted its held-to-maturity classification and judgment will be required in the future in determining when circumstances have changed such that management can assert that it has the intent and ability to hold debt securities to maturity. Based on this guidance, the Company does not expect to classify any securities as held-to-maturity within the near future.

Transfers of debt securities from the held-to-maturity category to the available-for-sale category are made at fair value at the date of transfer. For transfers from the available-for-sale category to the held-to maturity category the unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity security. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted out of other comprehensive income with an offsetting entry to interest income as a yield adjustment through earnings over the remaining terms of the securities. For transfers from the held-to-maturity category to the available-for-sale category unrealized holding gain or loss at the date of the transfer shall be recognized in accumulated other comprehensive income, net of applicable taxes.

The following tables present information related to the Company’s securities at September 30, 2017 and December 31, 2016:

Gross Gross
Amortized Unrealized Unrealized Fair
September 30, 2017       Cost       Gains       Losses       Value
(dollars in thousands)
Federal agency obligations   $        55,819   $        290   $        (171 )   $        55,938
Residential mortgage pass-through securities 133,517 668 (1,021 ) 133,164
Commercial mortgage pass-through securities     4,088     42     -       4,130
Obligations of U.S. states and political subdivisions 143,787 2,233 (1,044 ) 144,976
Trust preferred securities     4,576     122     (71 )     4,627
Corporate bonds and notes 30,052 255 (219 ) 30,088
Asset-backed securities     12,605     66     (38 )     12,633
Certificates of deposit 622 5 - 627
Equity securities     376     254     -       630
Other securities 13,976 - (273 ) 13,703
Total securities available-for-sale   $ 399,418   $ 3,935   $ (2,837 )   $ 400,516
 
Gross Gross
Amortized Unrealized Unrealized Fair
December 31, 2016 Cost Gains Losses Value
  (dollars in thousands)
Federal agency obligations   $ 52,826   $ 282   $ (271 )   $ 52,837
Residential mortgage pass-through securities 72,922 519 (944 ) 72,497
Commercial mortgage pass-through securities     4,186     23     -       4,209
Obligations of U.S. states and political subdivisions 148,747 2,789 (931 ) 150,605
Trust preferred securities     5,575     242     (151 )     5,666
Corporate bonds and notes 36,717 586 (375 ) 36,928
Asset-backed securities     14,867     2     (286 )     14,583
Certificates of deposit 973 10 - 983
Equity securities     376     192     -       568
Other securities 14,739 - (325 ) 14,414
Total securities available-for-sale   $ 351,928   $ 4,645   $ (3,283 )   $ 353,290

The following table presents information for securities at September 30, 2017, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer.

September 30, 2017
Amortized Fair
      Cost       Value
(dollars in thousands)
Securities available-for-sale:
Due in one year or less $        6,775 $        6,801
Due after one year through five years 30,824 31,197
Due after five years through ten years 39,489 40,174
Due after ten years 170,373 170,717
Residential mortgage pass-through securities 133,517 133,164
Commercial mortgage pass-through securities 4,088 4,130
Equity securities 376 630
Other securities 13,976 13,703
Total $ 399,418 $ 400,516

Gross gains and losses from the sales, calls and maturities of securities for periods presented were as follows (dollars in thousands):

Three Months Ended Nine Months Ended
September 30, September 30,
      2017       2016       2017       2016
Net gains on sales of securities, after tax $        - $        78,680 $        29,543 $        85,253
 
Gross gains on sales of securities - 4,131 1,596 4,234
Gross losses on sales of securities - - - -
Net gains on sales of securities - 4,131 1,596 4,234
Less: tax provision on net gains - 1,640 579 1,682
 
Net gains on sales of securities, after tax $ - $ 2,491 $ 1,017 $ 2,552

 

The Company reviews all securities for potential recognition of other-than-temporary impairment. The Company maintains a watch list for the identification and monitoring of securities experiencing problems that require a heightened level of review. This could include credit rating downgrades.

The Company’s assessment of whether an impairment in the portfolio is other-than temporary includes factors such as whether the issuer has defaulted on scheduled payments, announced restructuring and/or filed for bankruptcy, has disclosed severe liquidity problems that cannot be resolved, disclosed deteriorating financial condition or sustained significant losses.

Temporarily Impaired Securities

The Company does not believe that any of the unrealized losses, which were comprised of 75 and 84 securities as of September 30, 2017 and December 31, 2016, respectively, represent an other-than-temporary impairment (“OTTI”). The gross unrealized losses associated with U.S. Treasury and agency securities, federal agency obligations, mortgage-backed securities, corporate bonds, tax-exempt securities, asset-backed securities, trust preferred securities, mutual funds and equity securities are not considered to be other-than-temporary because these unrealized losses are related to changes in interest rates and do not affect the expected cash flows of the underlying collateral or issuer.

Factors which may contribute to unrealized losses include credit risk, market risk, changes in interest rates, economic cycles, and liquidity risk. The magnitude of any unrealized loss may be affected by the relative concentration of the Company’s investment in any one issuer or industry. The Company has established policies to reduce exposure through diversification of the securities portfolio including limits on concentrations to any one issuer. The Company believes the securities portfolio is prudently diversified.

The unrealized losses included in the tables below are primarily related to changes in interest rates and credit spreads. All of the Company’s securities are performing and are expected to continue to perform in accordance with their respective contractual terms and conditions. These are largely intermediate duration holdings and, in certain cases, monthly principal payments can further reduce loss exposure resulting from an increase in rates.

The Company evaluates all securities with unrealized losses quarterly to determine whether the loss is other-than-temporary. Unrealized losses in the corporate debt securities category consist primarily of senior unsecured corporate debt securities issued by large financial institutions, insurance companies and other corporate issuers. Single issuer corporate trust preferred securities are also included, and in the case of one holding the market valuation loss is largely based upon the floating rate coupon and corresponding market valuation. Neither that trust preferred issuer, nor any other corporate issuers, have defaulted on interest payments. The unrealized loss in equity securities consists of losses on other bank equities. The decline in fair value is due in large part to the lack of an active trading market for these securities, changes in market credit spreads and rating agency downgrades. Management concluded that these securities were not OTTI at September 30, 2017.

In determining whether or not securities are OTTI, the Company must exercise considerable judgment. Accordingly, there can be no assurance that the actual results will not differ from the Company’s judgments and that such differences may not require the future recognition of OTTI charges that could have a material effect on the Company’s financial position and results of operations. In addition, the value of, and the realization of any loss on, a security is subject to numerous risks as cited above.

The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at September 30, 2017 and December 31, 2016:

September 30, 2017
Total Less than 12 Months 12 Months or Longer
Fair Unrealized Fair Unrealized Fair Unrealized
    Value     Losses     Value     Losses     Value     Losses
(dollars in thousands)
Federal agency obligation $     21,451 $      (171 ) $    17,679 $      (116 ) $    3,772 $      (55 )
Residential mortgage pass-through securities 77,391 (1,021 ) 49,079 (457 ) 28,312 (564 )
Obligations of U.S. states and political subdivisions 54,073 (1,044 ) 47,016 (829 ) 7,057 (215 )
Trust preferred securities 1,507 (71 ) - - 1,507 (71 )
Corporate bonds and notes 13,123 (219 ) 3,946 (38 ) 9,177 (181 )
Asset-backed securities 7,929 (38 ) - - 7,929 (38 )
Other securities 11,193 (273 ) 5,911 (56 ) 5,282 (217 )
Total temporarily impaired securities $ 186,667 $ (2,837 ) $ 123,631 $ (1,496 ) $ 63,036 $ (1,341 )

December 31, 2016
Total Less than 12 Months 12 Months or Longer
Fair Unrealized Fair Unrealized Fair Unrealized
    Value     Losses     Value     Losses     Value     Losses
(dollars in thousands)
Federal agency obligation $    22,672 $       (271 ) $    21,416 $      (262 ) $    1,256 $         (9 )
Residential mortgage pass-through securities 50,136 (944 ) 49,817 (937 ) 319 (7 )
Obligations of U.S. states and political subdivisions 52,307 (931 ) 52,307 (931 ) - -
Trust preferred securities 1,427 (151 ) - - 1,427 (151 )
Corporate bonds and notes 15,930 (375 ) 7,671 (265 ) 8,259 (110 )
Asset-backed securities 13,404 (286 ) 3,743 (88 ) 9,661 (198 )
Other securities 11,467 (325 ) - - 11,467 (325 )
Total temporarily impaired securities $ 167,343 $ (3,283 ) $ 134,954 $ (2,483 ) $ 32,389 $ (800 )

 

Securities having a carrying value of approximately $139.5 million and $121.9 million at September 30, 2017 and December 31, 2016, respectively, were pledged to secure public deposits, Federal Reserve Bank discount window borrowings, Federal Home Loan Bank (“FHLB”) advances and for other purposes required or permitted by law.

As of September 30, 2017 and December 31, 2016, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

XML 25 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivatives
9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 5. Derivatives

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Interest rate swaps were entered into on April 13, 2017, August 24, 2015, December 30, 2014 and October 15, 2014, each with a respective notional amount of $25 million and were designated as cash flow hedges of an FHLB advance. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income while the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps.

Summary information about the interest rate swaps designated as cash flow hedges as of September 30, 2017, December 31, 2016 and September 30, 2016 are presented in the following table.

September 30, December 31, September 30,
      2017       2016       2016
(dollars in thousands)
Notional amount $        100,000 $        75,000 $        75,000
Weighted average pay rates 1.52 % 1.59 % 1.58 %
Weighted average receive rates 1.07 % 0.69 % 0.70 %
Weighted average maturity 2.7 years 2.8 years 3.1 years
Fair value $ 164 $ 88 $ (1,212 )

Interest expense recorded on these swap transactions totaled approximately $95,000 and $326,000 for the three and nine months ended September 30, 2017, respectively, and $167,000 and $534,000 for the three and nine months ended September 30, 2016, respectively.

Cash Flow Hedge

The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods:

Nine Months Ended September 30, 2017
Amount of gain Amount of gain Amount of gain (loss)
(loss) recognized (loss) reclassified recognized in other
in OCI (Effective from OCI to Noninterest income
      Portion)       interest income       (Ineffective Portion)
(dollars in thousands)
Interest rate contracts $                          45 $                             - $                                          -

Nine Months Ended September 30, 2016
Amount of gain Amount of gain Amount of gain (loss)
(loss) recognized (loss) reclassified recognized in other
in OCI (Effective from OCI to Noninterest income
      Portion)       interest income       (Ineffective Portion)
(dollars in thousands)
Interest rate contracts $                      (640 ) $                                - $                                       -

The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2017 and December 31, 2016:

September 30, 2017  December 31, 2016
Notional Notional
Amount Fair Value Amount Fair Value
(dollars in thousands)
Interest rate swaps related to FHLB advances included in assets       $        100,000       $        164       $        75,000       $        88
XML 26 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses
9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Loans and the Allowance for Loan Losses

Note 6. Loans and the Allowance for Loan Losses

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, premiums and discounts related to purchase accounting, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Loan segments are defined as a group of loans, which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. Management has determined that the Company has five segments of loans: commercial, commercial real estate, commercial construction, residential real estate (including home equity) and consumer.

The recognition of interest income on commercial, commercial real estate, commercial construction and residential loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. A loan is moved to nonaccrual status in accordance with the Company’s policy, typically after 90 days of non-payment.

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The policy of the Company is to generally grant commercial, residential and consumer loans to residents and businesses within our market area. The borrowers’ abilities to repay their obligations are dependent upon various factors including the borrowers’ income and net worth, cash flows generated by the borrowers’ underlying collateral, value of the underlying collateral, and priority of the lender’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the control of the Company. The Company is therefore subject to risk of loss. The Company believes its lending policies and procedures adequately minimize the potential exposure to such risks and that adequate provisions for loan losses are provided for all known and inherent risks. Collateral and/or personal guarantees are required for a large majority of the Company’s loans.

Loans Held-for-Sale

Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan.

Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. A portion of these loans, taxi medallion loans, have no material observable trading in any market. Fair value is established with consideration of a range of market participant indications, for all or parts of these loans, and discounted cash flow analyses, which have significant unobservable inputs. See Note 7 for further discussion.

Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Allowance for Loan losses

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired.

A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. As part of the evaluation of impaired loans, the Company individually reviews for impairment all non-homogeneous loans internally classified as substandard or below. Generally, smaller impaired non-homogeneous loans and impaired homogeneous loans are collectively evaluated for impairment.

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience, the primary factor, is determined by loan class and is based on the actual loss history experienced by the Bank over an actual three-year rolling calculation. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment and with the exogenous factor adjustments based on the risks present for each loan category. These exogenous factors include consideration of the following: concentrations of credit; delinquency & nonaccrual trends; economic & business conditions including evaluation of the national and regional economies and industries with significant loan concentrations; external factors including legal, regulatory or competitive pressures that may impact the loan portfolio; changes in the experience, ability, or size of the lending staff, management, or board of directors that may impact the loan portfolio; changes in underwriting standards, collection procedures, charge-off practices, or other changes in lending policies and procedures that may impact the loan portfolio; loss and recovery trends; changes in portfolio size and mix; and trends in problem loans.

Purchased Credit-Impaired Loans

The Company acquires groups of loans in conjunction with mergers, some of which have shown evidence of credit deterioration since origination. These purchased credit-impaired loans are recorded at their estimated fair value, such that there is no carryover of the seller’s allowance for loan losses (“ALLL”). After acquisition, probable incurred credit losses are recognized by an increase in the ALLL.

Such purchased credit-impaired loans (“PCI”) are identified on an individual basis. The Company estimates the amount and timing of expected cash flows for each loan and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

A PCI loan may be resolved either through a sale of the loan, by working with the customer and obtaining partial or full repayment, by short sale of the collateral, or by foreclosure. A gain or loss on resolution would be recognized based on the difference between the proceeds received and the carrying amount of the loan.

PCI loans that met the criteria for nonaccrual may be considered performing, regardless of whether the customer is contractually delinquent, if management can reasonably estimate the timing and amount of the expected cash flows on such loans and if management expects to fully collect the new carrying value of the loans. As such, management may no longer consider the loans to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount.

Loans held-for-sale

The following table presents loans held-for-sale by loan segment:

September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        47,430 $        70,105
Commercial real estate 41,811   7,712
Residential real estate   145   188
Total carrying amount $ 89,386 $ 78,005

As of September 30, 2017 and December 31, 2016, the commercial loans held-for-sale segment included the Company’s entire taxi medallion portfolio, with a carrying value of $47.4 million and $65.6 million, net of $15.3 million and $-0- million valuation allowance, respectively. The commercial real estate segment reflects multifamily loans, with a carrying value of $41.8 million as of September 30, 2017. These loans were designated as loans held-for-sale during the quarter ended September 30, 2017. No portion of the valuation allowance has been designated toward the loans held-for-sale within the commercial real estate segment.

Activity in the valuation allowance was as follows for periods presented:

      Three Months       Three Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $        12,325   $        -
Reduction from loans paid off (38 )    
Increase in valuation allowance 3,000 -
Balance at end of period $ 15,287 $ -
 
 
Nine Months Nine Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $ - $ -
Reduction from loans paid off (38 )
Increase in valuation allowance   15,325 -
Balance at end of period $ 15,287 $ -

Loans receivable: The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at September 30, 2017 and December 31, 2016:

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        641,613 $        553,576
Commercial real estate 2,585,205 2,204,710
Commercial construction 399,453   486,228  
Residential real estate 264,244 232,547
Consumer 1,912   2,380
Gross loans   3,892,427   3,479,441
Net deferred loan fees (3,138 ) (3,609 )
Total loans receivable $ 3,889,289 $ 3,475,832

At September 30, 2017 and December 31, 2016, loan balances of approximately $1.9 billion and $1.8 billion, respectively, were pledged to secure borrowings from the FHLB of New York.

Purchased Credit-Impaired Loans: The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment of those loans is as follows at September 30, 2017 and December 31, 2016.

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        5,243   $        7,098
Commercial real estate   232   982
Total carrying amount $ 5,475 $ 8,080

For those purchased loans disclosed above, the Company did not increase the allowance for loan losses during both the three and nine months ended September 30, 2017 and September 30, 2016. There were no reversals from the allowance for loan losses during the three and nine months ended September 30, 2017 and 2016.

The following tables presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for the following periods:

      Three Months       Three Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $        2,496 $        3,233
Accretion of income (180 ) (185 )
Balance at end of period $ 2,316 $ 3,048
 
Nine Months Nine Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $ 2,860   $ 3,599
Accretion of income   (544 )   (551 )
Balance at end of period $ 2,316   $ 3,048

Loans Receivable on Nonaccrual Status: The following tables presents nonaccrual loans included in loans receivable by loan segment as of the periods presented:

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial   $        951 $        1,460
Commercial real estate   8,369   1,081
Residential real estate 4,435   3,193
Total loans receivable on nonaccrual status $ 13,755 $ 5,734

Nonaccrual loans and loans 90 days or greater past due and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment.

The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected. All loans past due 90 days or greater and all impaired loans are included in the appropriate category below.

Credit Quality Indicators: The following table presents information, excluding loans held-for-sale and net deferred loan fees, about the Company’s loan credit quality at September 30, 2017 and December 31, 2016:

September 30, 2017
            Special                  
Pass Mention Substandard Doubtful Total
(dollars in thousands)
Commercial $        630,818 $        3,882 $        6,913 $        - $        641,613
Commercial real estate 2,535,005 30,875 19,325 - 2,585,205
Commercial construction 393,625 3,239 2,589 - 399,453
Residential real estate 264,244 - - - 264,244
Consumer 1,912 - - - 1,912
Gross loans $ 3,825,604 $ 37,996 $ 28,827 $ - $ 3,892,427
 
December 31, 2016
Special
Pass Mention Substandard Doubtful Total
(dollars in thousands)
Commercial $ 539,961 $ 3,255 $ 10,360 $ - $ 553,576
Commercial real estate 2,154,343 31,173 19,194 - 2,204,710
Commercial construction 480,319 3,388 2,521 - 486,228
Residential real estate 228,990 - 3,557 - 232,547
Consumer 2,318 - 62 - 2,380
Gross loans $ 3,405,931 $ 37,816 $ 35,694 $ - $ 3,479,441

The following table provides an analysis of the impaired loans by segment as of September 30, 2017 and December 31, 2016:

      September 30, 2017
      Unpaid      
Recorded Principal Related
Investment Balance Allowance
No related allowance recorded (dollars in thousands)
Commercial $ 3,068 $ 3,073
Commercial real estate 19,221 19,283
Commercial construction 4,340 4,340  
Residential real estate 2,520 2,749
Consumer 46 46
Total $ 29,195 $ 29,491
 
With an allowance recorded
Commercial real estate $ 1,640 $ 2,052 $        110
 
Total
Commercial $ 3,068 $ 3,073 $ -
Commercial real estate 20,861 21,335   110
Commercial construction 4,340 4,340   -
Residential real estate 2,520 2,749 -
Consumer 46 46 -
Total (including allowance) $ 30,835 $ 31,543 $ 110
  
December 31, 2016
Unpaid
Recorded Principal Related
Investment Balance Allowance
No related allowance recorded (dollars in thousands)
Commercial $        3,637 $        4,063
Commercial real estate 18,288 18,288
Commercial construction 5,909 5,909
Residential real estate 1,851 2,055
Consumer 62 62
Total $ 29,747 $ 30,377
 
With an allowance recorded
Commercial real estate $ 1,244 $ 1,244 $ 145
 
Total
Commercial $ 3,637 $ 4,063 $ -
Commercial real estate   19,532   19,532 145
Commercial construction   5,909 5,909 -
Residential real estate 1,851 2,055 -
Consumer 62   62 -
Total (including allowance) $ 30,991 $ 31,621 $ 145

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by segment as of and for the three and nine months ended September 30, 2017 and 2016:

      Three Months Ended September 30,       Nine Months Ended September 30,
2017       2016 2017       2016
Average       Interest Average       Interest Average       Interest Average       Interest
Recorded Income Recorded Income Recorded Income Recorded Income
Investment Recognized Investment Recognized Investment Recognized Investment Recognized
(dollars in thousands)
Impaired loans (no allowance)  
 
Commercial $        3,100 $        34 $        6,704 $        66 $        3,149 $        115 $        4,317 $        86
Commercial real estate 19,302 221   9,129   65 18,813 424 8,167 118
Commercial construction   4,285 63   1,224 21 4,273 215 979 54
Residential real estate 2,529 2 3,271 5 2,551 6 3,247     15
Consumer   48   1 70 1 54 2   74 3
Total $ 29,264 $ 321 $ 20,398   $ 158 $ 28,840 $ 762 $ 16,784 $ 276
 
Impaired loans (allowance):
 
Commercial $ - $ - $ 91,393 $ 925 $ - $ - $ 85,620 $ 2,447
Commercial real estate 1,645 2 153 - 1,654 39 153 -
Total $ 1,645 $ 2 $ 91,546 $ 925 $ 1,654 $ 39 $ 85,773 $ 2,447
 
Total impaired loans:
 
Commercial $ 3,100 $ 34 $ 98,097 $ 991 $ 3,149 $ 115 $ 89,937 $ 2,533
Commercial real estate 20,947 223 9,282 65 20,467 463 8,320 118
Commercial construction 4,285 63 1,224 21 4,273 215 979 54
Residential mortgage 2,259 2 3,271 5 2,551 6 3,247 15
Consumer 48 1 70 1 54 2 74 3
 
Total $ 30,909 $ 323 $ 111,944 $ 1,083 $ 30,494 $ 801 $ 102,557 $ 2,723

 

Included in impaired loans at September 30, 2017 and December 31, 2016 are loans that are deemed troubled debt restructurings. The recorded investment in loans include accrued interest receivable and other capitalized costs such as real estate taxes paid on behalf of the borrower and loan origination fees, net, when applicable. Cash basis interest and interest income recognized on accrual basis approximate each other.

The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at September 30, 2017 and December 31, 2016 by segment:

Aging Analysis

September 30, 2017
               90 Days or                    
Greater Past Total Past
30-59 Days 60-89 Days Due and Still Due and
Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans
(dollars in thousands)
Commercial $        199 $        288 $        4,209 $        951 $        5,647 $        635,966 $        641,613
Commercial real estate 586 8,057 - 8,369 17,012 2,568,193 2,585,205
Commercial construction     -   - - - - 399,453 399,453
Residential real estate 918   541   - 4,435 5,894 258,350 264,244
Consumer - 2 - - 2 1,910 1,912
Total $ 1,703 $ 8,888 $ 4,209 $ 13,755 $ 28,555 $ 3,863,872 $ 3,892,427
 
December 31, 2016
90 Days or
Greater Past Total Past
30-59 Days 60-89 Days Due and Still Due and
Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans
(dollars in thousands)
Commercial $ 475 $ 18 $ 4,630 $ 1,460 $ 6,583 $ 546,993 $ 553,576
Commercial real estate 4,928 1,584 663 1,081 8,256 2,196,454 2,204,710
Commercial construction - - - -     - 486,228   486,228
Residential real estate 2,131 388   -     3,193 5,712     223,835   232,547
Consumer - - - - - 2,380 2.380
Total $ 7,534 $ 1,990 $ 5,293 $ 5,734 $ 20,551 $ 3,458,890 $ 3,479,441

Included in the 90 days or greater past due and still accruing/accreting category as of both September 30, 2017 and December 31, 2016 are three purchased credit-impaired loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition.

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated credit quality, and the related portion of the allowance for loan losses (“ALLL”) that are allocated to each loan portfolio segment:

      September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
ALLL
Individually evaluated for impairment $        - $        110 $        - $        - $        - $        - $        110
Collectively evaluated for impairment 7,716 15,224 3,940 1,052 2 326 28,260
Acquired portfolio - 1,500 - - - - 1,500
Acquired with deteriorated credit quality - - - - - - -
Total ALLL $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870
 
Gross loans  
Individually evaluated for impairment $ 3,068 $ 20,861   $ 4,340   $ 2,520 $ 46   $ 30,835
Collectively evaluated for impairment 618,012 2,142,385 395,113 199,902   1,410   3,356,822
Acquired portfolio   15,290     421,727   - 61,822 456   499,295
Acquired with deteriorated credit quality 5,243 232 -   - -   5,475
Total gross loans $ 641,613 $ 2,585,205 $ 399,453 $ 264,244 $ 1,912 $ 3,892,427
 
December 31, 2016
Commercial Commercial Residential
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
ALLL
Individually evaluated for impairment $ - $ 145 $ - $ - $ - $ - $ 145
Collectively evaluated for impairment 6,632 12,438 4,789 958 3 779 25,599
Acquired portfolio - - - - - - -
Acquired with deteriorated credit quality - - - - - - -
Total ALLL $ 6,632 $ 12,583 $ 4,789 $ 958 $ 3 $ 779 $ 25,744
 
Gross loans
Individually evaluated for impairment $ 3,637 $ 19,532 $ 5,909 $ 1,851 $ 62 $ 30,991
Collectively evaluated for impairment 517,869 1,621,745 478,865 163,686 1,757 2,783,922
Acquired portfolio 24,972 562,451 1,454 67,010 561 656,448
Acquired with deteriorated credit quality 7,098 982 - - - 8,080
Total gross loans $ 553,576 $ 2,204,710 $ 486,228 $ 232,547 $ 2,380 $ 3,479,441

The Company’s allowance for loan losses is analyzed quarterly. Many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other factors inherent in the extension of credit. There have been no material changes to the allowance for loan losses (“ALLL”) methodology as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

A summary of the activity in the ALLL is as follows:

      Three Months Ended September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at June 30, 2017 $        7,238 $        15,389 $        4,241 $        985 $        2 $        546 $        28,401
 
Charge-offs - - - - (1 ) - (1 )
 
Recoveries 17 2 - - 1 - 20
 
Provision for loan losses 461 1,443 (301 ) 67 - (220 ) 1,450
 
Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870
 
Three Months Ended September 30, 2016
Commercial Commercial Residential
Commercial real estate construction real estate   Consumer Unallocated Total  
(dollars in thousands)
Balance at June 30, 2016 $ 15,548   $ 11,371 $ 4,040   $ 1,091   $ 4   $ 709   $ 32,763
 
Charge-offs   (1,878 ) - - (27 )   (5 ) - (1,910 )
 
Recoveries 1 10 - - 1 - 12
 
Provision for loan losses 6,725   (6 ) 32 110 4 (115 ) 6,750
   
Balance at September 30, 2016 $ 20,396 $ 11,375 $ 4,072 $ 1,174 $ 4 $ 594 $ 37,615

      Nine Months Ended September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at December 31, 2016 $        6,632 $        12,583 $        4,789 $        958 $        3 $        779 $        25,744
 
Charge-offs - (71 ) - - (12 ) - (83 )
 
Recoveries 158 50 - - 1 - 209
 
Provision for loan losses 926 4,272 (849 ) 94 10 (453 ) 4,000
 
Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940   $ 1,052 $ 2 $ 326 $ 29,870
  
Nine Months Ended September 30, 2016
Commercial Commercial Residential
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at December 31, 2015 $ 10,949   $ 10,926   $ 3,253 $ 976   $ 4   $ 464 $ 26,572
 
Charge-offs (2,396 ) - - (94 )   (10 )   -   (2,500 )
 
Recoveries 2 35 - 3 3 - 43
 
Provision for loan losses 11,841 414 819 289 7 130 13,500
 
Balance at September 30, 2016 $ 20,396 $ 11,375 $ 4,072 $ 1,174 $ 4 $ 594 $ 37,615

Troubled Debt Restructurings

Loans are considered to have been modified in a troubled debt restructuring (“TDRs”) when due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a troubled debt restructuring remains on nonaccrual status for a period of nine months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status.

At September 30, 2017, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due 90 days or greater and still accruing interest, or whose terms have been modified in troubled debt restructurings.

The following table presents a rollforward of TDRs and the related changes to the allowance for loan losses (“ALLL”) that occurred for the periods presented:

Nine Months Ended Year Ended
September 30, 2017 December 31, 2016
(dollars in thousands)
Recorded Recorded
      Investment       ALLL       Investment       ALLL
Troubled Debt Restructurings
  
Beginning balance $      13,818 $      - $      86,629 $      4,500
Additions 5,668 - 26,325 8,250
Payoffs/paydowns (1,309 ) - (2,616 ) -
Transfers (580 ) - (96,520 ) -
Other - - - (12,750 )
Ending balance $ 17,597 $ - $ 13,818 $ -

 

TDRs totaled $17.6 million at September 30, 2017, of which $4.8 million were on nonaccrual status and $12.8 million were performing under restructured terms. At December 31, 2016, TDRs totaled $13.8 million, of which $0.5 million were on nonaccrual status and $13.3 million were performing under restructured terms. TDRs as of September 30, 2017 did not increase the ALLL during the three and nine months ended September 30, 2017. There were no charge-offs in connection with a loan modification at the time of modification during the three or nine months ended September 30, 2017. There were no TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2017.

TDRs totaled $106.7 million at September 30, 2016, of which $1.4 million were on nonaccrual status and $105.3 million were performing under restructured terms. The Company had allocated $12.5 in specific allocations with respect to loans whose loan terms had been modified in troubled debt restructurings as of September 30, 2016. TDRs as of September 30, 2016 increased the ALLL by $5.0 and $8.3 million during the three and nine months ended September 30, 2016, respectively.

The $12.5 million in specific allocations referenced above were associated with New York City taxi medallion lending and were calculated based on the present value of estimated cash flows, including contractual debt interest service through maturity, and principal repayments based on the estimated fair value of the collateral excluding any consideration for personal guarantees of borrowers, which provide an additional source of repayment but cannot be relied upon.

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016 (dollars in thousands):

Pre-Modification Post-Modification
Outstanding Outstanding
Number of Recorded Recorded
      Loans       Investment       Investment
Troubled debt restructurings:
Commercial 16 $ 19,311 $ 19,311
Commercial real estate 2 581 581
Commercial construction - - -
Residential real estate - - -
Consumer - - -
 
Total 18 $ 19,892 $ 19,892

 

Included in the above TDRs were 14 loans secured by 25 New York City taxi medallions totaling $17.3 million. These loan modifications included interest rate reductions and maturity extensions. All 14 loans were accruing prior to modification, while 13 remained in accrual status post-modification.

The TDRs described above increased the allowance for loan losses by $8.3 million during the nine months ended September 30, 2016. There were no charge-offs in connection with a loan modification at the time of modification during the three and nine months ended September 30, 2016. There were no TDRs for which there was a payment default within twelve months following the modification during the three or nine months ended September 30, 2016.

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Fair Value Measurements and Fair Value of Financial Instruments
9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments

Note 7. - Fair Value Measurements and Fair Value of Financial Instruments

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

FASB ASC 820-10-05 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurements and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

FASB ASC 820-10-65 provides additional guidance for estimating fair value in accordance with FASB ASC 820-10-05 when the volume and level of activity for the asset or liability have significantly decreased. This ASC also includes guidance on identifying circumstances that indicate a transaction is not orderly.

FASB ASC 820-10-05 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820-10-05 are as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (for example, supported with little or no market activity).

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2017 and December 31, 2016:

Securities Available-for-Sale

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of instruments which would generally be classified within Level 2 of the valuation hierarchy include municipal bonds and certain agency collateralized mortgage obligations. In certain cases where there is limited activity in the market for a particular instrument, assumptions must be made to determine the fair value of the instruments and these are classified as Level 3. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.

Derivatives

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2017 and December 31, 2016 are as follows:

September 30, 2017
Fair Value Measurements at Reporting Date Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
            (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Recurring fair value measurements:
Assets
Securities:
Federal agency obligations $      55,938 $      - $      55,938 $      -
Residential mortgage pass-through securities 133,164 - 133,164 -
Commercial mortgage pass-through securities 4,130 - 4,130 -
Obligations of U.S. states and political subdivisions 144,976 - 127,111 17,865
Trust preferred securities 4,627 - 4,627 -
Corporate bonds and notes 30,088 - 30,088 -
Asset-backed securities 12,633 - 12,633 -
Certificates of deposit 627 - 627 -
Equity securities 630 630 - -
Other securities 13,703 13,703 - -
Total available-for-sale 400,516 14,333 368,318 17,685
Derivatives 164 - 164 -
Total Assets $ 400,680 $ 14,333 $ 368,482 $ 17,685

December 31, 2016
Fair Value Measurements at Reporting Date Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
            (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Recurring fair value measurements:
Assets
Securities:
Federal agency obligations $      52,837 $      - $      52,837 $      -
Residential mortgage pass-through securities 72,497 - 72,497 -
Commercial mortgage pass-through securities 4,209 - 4,209 -
Obligations of U.S. states and political subdivisions 150,605 - 132,387 18,218
Trust preferred securities 5,666 - 5,666 -
Corporate bonds and notes 36,928 - 36,928 -
Asset-backed securities 14,583 - 14,583 -
Certificates of deposit 983 - 983 -
Equity securities 568 568 - -
Other securities 14,414 14,414 - -
Total available-for-sale 353,290 14,982 320,090 18,218
Derivatives 88 - 88 -
Total assets $ 353,378 $ 14,982 $ 320,178 $ 18,218

There were no transfers between Level 1 and Level 2 during the quarter ended September 30, 2017 and during the year ended December 31, 2016.

Assets Measured at Fair Value on a Non-Recurring Basis

The Company may be required periodically to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis at September 30, 2017 and December 31, 2016:

Loans Held-for-Sale

Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Management obtains quotes or bids on all or part of these loans directly from the purchasing financial institutions (Level 2).

Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. A portion of these loans, taxi medallion loans, have no material observable trading in any market. The approach to determining fair value involved several steps, including a detailed collateral analysis of the underlying medallions, performance projections for individual loans, discounted cash flow modeling and consideration of indicative bids, which at September 30, 2017 did not necessarily contemplate whole loan sales (Level 3).

Impaired Loans

The Company may record adjustments to the carrying value of loans based on fair value measurements, generally as partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with GAAP. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the market place and are also based on Level 3 inputs.

For assets measured at fair value on a non-recurring basis, the fair value measurements at September 30, 2017 and December 31, 2016 are as follows:

Fair Value Measurements at Reporting Date Using
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
September Assets Inputs Inputs
Assets measured at fair value on a nonrecurring basis:       30, 2017       (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Impaired loans:
Commercial real estate $      1,198 $      - $      - $      1,198
 
Loans held-for-sale:
Commercial 47,430 - - 47,430
 
Fair Value Measurements at Reporting Date Using
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
December 31, Assets Inputs Inputs
Assets measured at fair value on a nonrecurring basis: 2016 (Level 1) (Level 2) (Level 3)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,099 $ - $ - $ 1,099
 
Loans held-for-sale:
Commercial 70,105 - 4,509 65,596
Commercial real estate 7,712 - 7,712 -

Impaired loansCollateral dependent impaired loans at September 30, 2017 that required a valuation allowance were $1.3 million with a related valuation allowance of $0.1 million compared to $1.2 million with a related valuation allowance of $0.1 million at December 31, 2016.

Loans held-for-saleLoans held-for-sale at September 30, 2017 that required a valuation allowance were $62.7 million with a related valuation allowance of $15.3 million compared to $65.6 million with no valuation allowance at December 31, 2016.

Assets Measured With Significant Unobservable Level 3 Inputs

Recurring basis

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2017 and year ended December 31, 2016:

Municipal
      Securities
(dollars in thousands)
Beginning balance, January 1, 2017 $                           18,218
Principal paydowns (353 )
Ending balance, September 30, 2017 $ 17,865
 
Municipal
Securities
(dollars in thousands)
Beginning balance, January 1, 2016 $ -
Other(1) 18,335
Principal paydowns (117 )
Ending balance, December 31, 2016 $ 18,218

(1) Includes transfers from held-to-maturity to available-for-sale designation

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2017 and December 31, 2016. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2017
Valuation Unobservable
      Fair Value       Techniques       Input       Range
(dollars in thousands)
Securities available-for-sale:
Municipal securities $      17,865 Discounted cash flows Discount rate 2.8%
 
December 31, 2016
Valuation Unobservable
Fair Value Techniques Input Range
(dollars in thousands)
Securities available-for-sale:
Municipal securities $ 18,218 Discounted cash flows Discount rate 2.8%

Non-recurring basis

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2017
Valuation
Techniques Unobservable
Type       Fair Value       (weightings)       Input       Range (weighted average)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,918 Appraisals of
collateral value
Comparable sales 0% - 15% (6%)
 
Loans held-for-sale:
Commercial taxi medallion loans $ 47,430 Market approach
(70%)
Indications expressed as a
price to unpaid principal
balance
37 - 100 (46)
 
Discounted cash
flows (30%)
Discount rate 14%
 
December 31, 2016
Valuation
Techniques Unobservable
Type Fair Value (weightings) Input Range (weighted average)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,099 Appraisals of
collateral value
Comparable sales 0% - 15% (6%)
 
Loans held-for-sale:
Commercial taxi medallion loans $ 65,596 Market approach
(70%)
Indications under securitized
transactions expressed as a
price to unpaid principal
balance
40 - 100 (59)
 
Discounted cash
flows (30%)
Discount Rate 14%

Fair Value of Financial Instruments

FASB ASC 825-10 requires all entities to disclose the estimated fair value of their financial instrument assets and liabilities. For the Company, as for most financial institutions, the majority of its assets and liabilities are considered financial instruments as defined in FASB ASC 825-10. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. It is also the Company’s general practice and intent to hold its financial instruments to maturity and not to engage in trading or sales activities except for loans held-for-sale and securities available-for-sale. Therefore, significant estimations and assumptions, as well as present value calculations, were used by the Company for the purposes of this disclosure.

Cash and Cash Equivalents. The carrying amounts of cash and short-term instruments approximate fair values.

FHLB Stock. It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability.

Loans. The fair value of the Company’s loans was estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans were segregated by types such as commercial, residential and consumer loans. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price and therefore, while permissible for presentation purposes under ASC 825-10, do not conform to ASC 820-10.

Deposits. The carrying amounts of deposits with no stated maturities (i.e., noninterest-bearing, savings, NOW, and money market deposits) are assigned fair values equal to the carrying amounts payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows using estimated rates currently offered for alternative funding sources of similar remaining maturity.

Term Borrowings and Subordinated Debentures. The fair value of the Company’s long-term borrowings and subordinated debentures was calculated using a discounted cash flow approach and applying discount rates currently offered based on weighted remaining maturities.

Accrued Interest Receivable/Payable. The carrying amounts of accrued interest approximate fair value resulting in a level 2 or level 3 classification based on the level of the asset or liability with which the accrual is associated.

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2017 and December 31, 2016:

Fair Value Measurements
Quoted
Prices in
Active Significant
Markets for Other Significant
Identical Observable Unobservable
Carrying Fair Assets Inputs Inputs
      Amount       Value       (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
September 30, 2017
Financial assets:
Cash and due from banks $      141,262 $      141,262 $      141,262 $      - $      -
Securities available-for-sale 400,516 400,516 14,333 368,318 17,865
Restricted investment in bank stocks 29,672 n/a n/a n/a n/a
Loans held-for-sale 89,386 89,386 - 41,956 47,430
Net loans 3,859,419 3,862,104 - - 3,862,104
Derivatives 164 164 - 164 -
Accrued interest receivable 14,841 14,841 - 2,011 12,830
 
Financial liabilities:
Noninterest-bearing deposits 719,582 719,582 719,582 - -
Interest-bearing deposits 2,904,187 2,904,285 1,825,846 1,078,439 -
Borrowings 585,124 586,474 - 586,474 -
Subordinated debentures 54,657 56,519 - 56,519 -
Accrued interest payable 4,304 4,304 - 4,304 -
 
December 31, 2016
Financial assets:
Cash and due from banks $ 200,399 $ 200,399 $ 200,399 $ - $ -
Securities available-for-sale 353,290 353,290 14,982 320,090 18,218
Restricted investment in bank stocks 24,310 n/a n/a n/a n/a
Loans held-for-sale 78,005 78,005 - 12,409 65,596
Net loans 3,450,088 3,462,138 - - 3,462,138
Derivatives 88 88 - 88 -
Accrued interest receivable 12,965 12,965 - 2,026 10,939
 
Financial liabilities:
Noninterest-bearing deposits 694,977 694,977 694,977 - -
Interest-bearing deposits 2,649,294 2,649,717 1,681,044 968,673 -
Borrowings 476,280 478,286 - 478,286 -
Subordinated debentures 54,534 55,901 - 55,901 -
Accrued interest payable 4,142 4,142 - 4,142 -

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.

The Company’s remaining assets and liabilities, which are not considered financial instruments, have not been valued differently than has been customary with historical cost accounting. No disclosure of the relationship value of the Company’s core deposit base is required by FASB ASC 825-10.

Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

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Other Comprehensive Income (Loss)
9 Months Ended
Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Other Comprehensive Income (Loss)

Note 8. Other Comprehensive Income (Loss)

The following represents the reclassifications out of accumulated other comprehensive (loss) income for the periods presented:

Affected Line item in the
Details about Accumulated Other Amounts Reclassified from Accumulated Amounts Reclassified from Accumulated Statement Where Net Income is
Comprehensive Income Components Other Comprehensive Income/(Loss) Other Comprehensive Income/(Loss) Presented
(dollars in thousands)
Three Months Ended September 30, Nine Months Ended September 30,
    2017     2016     2017     2016    
Sale of securities available-for-sale $                 - $                 4,131 $                 1,596 $                 4,234 Net gains on sales of securities available for sale
- (1,640 ) (579 ) (1,682 ) Income tax expense
- 2,491 1,017 2,552
 
Amortization of pension plan net actuarial losses (103 ) (204 ) (309 ) (306 ) Salaries and employee benefits
42 83 126 124 Income tax benefit
(61 ) (121 ) (183 ) (182 )
 
Total reclassification $ (61 ) $ 2,370 $ 834 $ 2,370

Accumulated other comprehensive (loss) income (net of tax) at September 30, 2017 and December 31, 2016 consisted of the following:

September 30, December 31,
      2017       2016
(dollars in thousands)
Securities available-for-sale $             723 $           933
Cash flow hedge 97 52
Defined benefit pension and post-retirement plans (3,649 ) (3,831 )
Total accumulated other comprehensive loss $ (2,829 ) $ (2,846 )
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Stock-Based Compensation
9 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation

Note 9. Stock-Based Compensation

The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of September 30, 2017. The maximum number of shares of common stock or equivalents, which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of September 30, 2017 are 750,000. The Company intends to issue all shares under the Plan in the form of newly issued shares.

Restricted stock and option awards typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock awards granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options and performance units do not.

All awards are issued at fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are handled on a case-by-case basis.

No options or performance units were granted during the three months ended September 30, 2017 or 2016.

Activity under the Company’s option plans as of and for the nine months ended September 30, 2017 were as follows:

Weighted-
Average
Weighted- Remaining
Average Contractual
Exercise Term Aggregate
      Shares       Price       (In Years)       Intrinsic Value
Outstanding at December 31, 2016 358,367 $      6.26
Granted - -
Exercised 10,846 10.89
Forfeited/cancelled/expired - -
Outstanding at September 30, 2017 347,521 $ 6.11 1.90 $      6,425,663
Exercisable at September 30, 2017 343,991 $ 6.03 1.86 $ 6,387,912

The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on September 30, 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2017. This amount changes based on the fair market value of the Parent Corporation’s stock.

The below table represents information regarding restricted shares currently outstanding at September 30, 2017:

Weighted-
Average
Nonvested Grant Date
      Shares       Fair Value
Nonvested at December 31, 2016        111,273 $      16.81
Granted 57,164 23.82
Vested (65,359 ) 16.49
Forfeited/cancelled/expired - -
Nonvested at September 30, 2017 103,078 $ 20.41

As of September 30, 2017, there was approximately $1,366,000 of total unrecognized compensation cost related to nonvested restricted shares granted under the plans. The cost is expected to be recognized over a weighted average period of one year.

At September 30, 2017, the specific number of shares related to performance unit awards that were expected to vest was 151,194, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. At September 30, 2017 the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 226,791.

A summary of the status of unearned performance unit awards and the change during the period is presented in the table below:

Weighted
Average Grant
Units Units Date Fair
      (expected)       (maximum)       Value
Unearned at December 31, 2016       151,572 189,455 $ 18.47
Awarded 24,891 37,336 22.75
Forfeited - - -
Adjustments (25,269 ) - 18.47
Unearned at September 30, 2017 151,194 226,791 $ 19.19

 

At September 30, 2017, compensation cost of approximately $1,006,000 related to non-vested performance unit awards not yet recognized is expected to be recognized over a weighted-average period of 1.3 years.

Effective January 1, 2017, the Company implemented ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment. Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Included in income tax expense for the three and nine months ended September 30, 2017 is a benefit of $-0- and $180 thousand, respectively, which resulted from the effect of implementing ASU 2016-09.

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Components of Net Periodic Pension Cost
9 Months Ended
Sep. 30, 2017
Retirement Benefits [Abstract]  
Components of Net Periodic Pension Cost

Note 10. Components of Net Periodic Pension Cost

The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until March 31, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated.

Three Months Ended Nine Months Ended
September 30, September 30,
      2017       2016       2017       2016
(dollars in thousands)
Interest cost $      119 $      129 $      358 $      386
Expected return on plan assets (160 ) (166 ) (480 ) (457 )
Net amortization 103 101 309 305
Recognized settlement loss - - 2 -
Net periodic pension cost $ 62 $ 64 $ 189 $ 234
 
Amortization of actuarial loss $ (103 ) $ (204 ) $ (309 ) $ (306 )
 
Total recognized in other comprehensive income $ (103 ) $ (204 ) $ (309 ) $ (306 )
 
Total recognized in net expense and OCI (before tax) $ (41 ) $ (140 ) $ (120 ) $ (72 )

Contributions

The Company did not make any contributions during the nine months ended September 30, 2017. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2017. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust.

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FHLB Borrowings
9 Months Ended
Sep. 30, 2017
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract]  
FHLB Borrowings

Note 11 – FHLB Borrowings

The Company’s FHLB borrowings and weighted average interest rates are summarized below:

September 30, 2017 December 31, 2016
      Amount       Rate       Amount       Rate
(dollars in thousands)
Total FHLB borrowings $      585,124 1.61 % $      461,280 1.55 %
 
By remaining period to maturity:
Less than 1 year $ 415,124 1.41 % $ 231,280 1.02 %
1  year through less than 2 years 105,000 1.69 % 130,000 1.84 %
2 years through less than 3 years 25,000 1.85 % 35,000 1.60 %
3 years through less than 4 years 40,000 3.43 % 65,000 2.82 %
4 years through 5 years - - - -
Total FHLB borrowings $ 585,124 1.61 % $ 461,280 1.55 %

 

The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans.

Three of the FHLB notes ($2.5 million and $7.5 million each due April 2, 2018, and $5.0 million due July 16, 2018) contain a convertible option which allows the FHLB, at quarterly intervals, to convert the fixed convertible advance into replacement funding for the same or lesser principal based on any advance then offered by the FHLB at its current market rate. The Company has the option to repay these advances, if converted, without penalty. The remaining advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rate. The advances at September 30, 2017 were primarily collateralized by approximately $1.4 billion of commercial mortgage loans, net of required over collateralization amounts, under a blanket lien arrangement. At September 30, 2017 the Company had remaining borrowing capacity of approximately $796 million at FHLB.

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Securities Sold under Agreements to Repurchase
9 Months Ended
Sep. 30, 2017
Securities Sold under Agreements to Repurchase [Abstract]  
Securities Sold under Agreements to Repurchase

Note 12 – Securities Sold Under Agreements to Repurchase

Repurchase agreements are secured borrowings. The Company pledges securities to secure those borrowings. Information concerning repurchase agreements is summarized as follows for the periods presented:

September 30, December 31, September 30,
      2017       2016       2016
(dollars in thousands)
Average daily balance during the year-to-date $      9,065 $      15,000 $      15,000
Average interest rate during the year-to-date 5.95 % 5.95 % 5.95 %
Maximum month end balance during the year-to-date $ 15,000 $ 15,000 $ 15,000
Weighted average interest rate during the year-to-date 5.95 % 5.95 % 5.95 %

As of September 30, 2017, there were no repurchase agreements outstanding. The previous outstanding repurchase agreement of $15.0 million was repaid on June 15, 2017.

December 31, 2016
Remaining Contractual Maturity of the Agreements
Overnight and Up to 30 Greater Than
      Continuous       Days       31-90 Days       90 Days       Total
(dollars in thousands)
Repurchase agreements & repurchase-to-maturity transaction
U.S. Treasury and agency securities $ - $ - $ - $ - $      -
Residential mortgage pass-through securities - - - 16,826 16,826
Total borrowings $ - $ - $ - $ 16,826 $ 16,826
 
Amounts related to agreements not included in offsetting disclosure in Note 14: $ 1,826

The fair value of securities pledged to secure repurchase agreements may decline. By contractual agreement, the fair value of securities pledged to secure repurchase agreements must meet or exceed the gross outstanding balance by 8%, or be subject to margin calls. Securities sold under agreements to repurchase are secured by securities with a carrying amount of $-0- and $16.8 million at September 30, 2017 and December 31, 2016, respectively.

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Subordinated Debentures
9 Months Ended
Sep. 30, 2017
Subordinated Borrowings [Abstract]  
Subordinated Debentures

Note 13 - Subordinated Debentures

During 2003, the Company formed a statutory business trust, which exists for the exclusive purpose of (i) issuing Trust Securities representing undivided beneficial interests in the assets of the Trust; (ii) investing the gross proceeds of the Trust securities in junior subordinated deferrable interest debentures (subordinated debentures) of the Company; and (iii) engaging in only those activities necessary or incidental thereto. On December 19, 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly-owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The capital securities presently qualify as Tier I capital. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or in part prior to maturity. The floating interest rate on the subordinate debentures is three month LIBOR plus 2.85% and reprices quarterly. The rate at September 30, 2017 was 4.16%. These subordinated debentures and the related income effects are not eliminated in the consolidated financial statements as the statutory business trust is not consolidated in accordance with FASB ASC 810-10. Distributions on the subordinated debentures owned by the subsidiary trust have been classified as interest expense in the Consolidated Statements of Income.

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II at September 30, 2017 and December 31, 2016.

Securities Redeemable by
Issuance Date       Issued       Liquidation Value       Coupon Rate       Maturity       Issuer Beginning
12/19/2003 $      5,000,000 $1,000 per Capital Floating 3-month 01/23/2034 01/23/2009
Security LIBOR + 285 Basis
Points

During June 2015, the Parent Corporation issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). The Notes are non-callable for five years, have a stated maturity of July 1, 2025, and bear interest at a fixed rate of 5.75% per year, from and including September 30, 2015 to, but excluding July 1, 2020. From and including July 1, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three month LIBOR rate plus 393 basis points. As of September 30, 2017, unamortized costs related to the debt issuance was approximately $498,000.

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Offsetting Assets and Liabilities
9 Months Ended
Sep. 30, 2017
Offsetting [Abstract]  
Offsetting Assets and Liabilities

Note 14 – Offsetting Assets and Liabilities

Certain financial instrument-related assets and liabilities may be eligible for offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements. However, the Company does not elect to offset such arrangements on the consolidated financial statements. The Company enters into interest rate swap agreements with financial institution counterparties. For additional detail regarding interest rate swap agreements refer to Note 5. In the event of default on, or termination of, any one contract, both parties have the right to net settle multiple contracts. Also, certain interest rate swap agreements may require the Company to receive or pledge cash or financial instrument collateral based on the contract provisions.

The Company also entered into an agreement to sell securities subject to an obligation to repurchase the same or similar securities, referred to as a repurchase agreement. Under this agreement, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated statement of condition, while the securities underlying the repurchase agreements remain in the respective securities account, therefore there is no offsetting or netting of the securities assets with the repurchase agreement liability. The following table presents information about financial instruments that are eligible for offset as of September 30, 2017 and December 31, 2016:

Gross Amounts Not Offset
Gross Amounts Net Amounts of Cash or
Offset in the   Assets Presented in Financial Financial
Gross Amounts Statement of the Statement of Instruments Instrument Net
     Recognized      Financial Position      Financial Position      Recognized      Collateral      Amount
(dollars in thousands)
September 30, 2017
Assets:
Interest rate swaps $      164 $      - $      164 $      - $      - $      164
Liabilities:
Repurchase agreements $ - $ - $ - $ - $ - $ -
December 31, 2016
Assets:
Interest rate swaps $ 88 $ - $ 88 $ - $ - $ 88
Liabilities:
Repurchase agreements $ 15,000 $ - $ 15,000 $ - $ 15,000 $ -

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Subsequent Event
9 Months Ended
Sep. 30, 2017
Subsequent Events [Abstract]  
Subsequent Event

Note 15 – Subsequent Event

On November 2, 2017, all of the Bank’s loans secured by New York City medallions, which had been classified as held-for-sale since December 31, 2016, were returned to the loans held-for-investment portfolio. As of September 30, 2017, the portfolio totaled $47.4 million, net of a $15.3 million valuation allowance. This transfer of the loans to held-for-investment will be recorded at the fair value of the loans held-for-sale with any difference between the fair value determined as of the transfer date and the carrying value as of September 30, 2017 to be recognized in noninterest expense during the fourth quarter 2017. The Company currently estimates a pretax charge of approximately $0.5 million to reflect this transfer. Management’s decision is based on its current view that a strategy to work out the credits through cash flow generated by borrowers’ operations is now superior, from a financial perspective, to a disposition via a sale to a third-party. This decision reflects (i) a reduced level of interest on the part of institutional investors to purchase taxi medallion loans, especially for relatively smaller portfolios such as the Bank’s and (ii) the Company’s increasing success at restructuring loans in the portfolio to monthly payment terms that can be supported through borrowers’ operations, although the collectability of principal balloon payments at maturity remains uncertain.

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New Authoritative Accounting Guidance (Policies)
9 Months Ended
Sep. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Authoritative Accounting Guidance

ASU No. 2017-08, “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for us on January 1, 2019 and we are currently evaluating this ASU to determine the impact on our consolidated financial statements.

ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” provides guidance on the following eight specific cash flow issues: (1) Debt prepayment or debt extinguishment costs; (2) Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) Contingent consideration payments made after a business combination; (4) Proceeds from the settlement of insurance claims; (5) Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) Distributions received from equity method investees; (7) Beneficial interests in securitization transactions; and (8) Separately identifiable cash flows and application of the predominance principle. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. Although management continues to evaluate the potential impact of ASU 2016-05 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost.” ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee that will be assessing our data and system needs. The Company has also met with multiple third-party vendors who may provide assistance in implementation and model creation. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements.

ASU No. 2016-02, “Leases (Topic 842)” requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for the Company for reporting periods beginning January 1, 2019, with early adoption permitted. The Company must apply a modified retrospective transition approach for the applicable leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. The Company is currently leasing seventeen properties as branch locations and is leasing certain office equipment. The adoption of ASU 2016-02 will result in increases to the Company's assets and liabilities. We are currently in the process of evaluating all of our leases for compliance with the new ASU.

ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things; (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and we are currently evaluating the potential impact of ASU No. 2016-01 on our consolidated financial statements.

ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, the FASB recently issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 by one year to January 1, 2018. Although management continues to evaluate the potential impact of ASU 2014-09 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact to our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The amendments relate to when another party, along with the entity, is involved in providing a good or service to a customer. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09.

In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: identifying performance obligations, and the licensing implementation guidance. The amendments in this update are intended to improve the operability and understandability of the licensing implementation guidance. The amendments in this update affect the guidance in ASU No. 2014-09 above, which is not yet effective. The effective date will be the same as the effective date of ASU No. 2014-09.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedients.

In December 2016, the FASB issued ASU No. 2016-20, Revenue from Contracts with Customers (Topic 606): Technical Corrections and Improvements. The FASB board decided to issue a separate update for technical corrections and improvements to Topic 606 and other Topics amended by ASU No. 2014-09 to increase awareness of the proposals and to expedite improvements to ASU No. 2014-09. The amendment affects narrow aspects of the guidance issued in ASU No. 2014-09.

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Earnings per Common Share (Tables)
9 Months Ended
Sep. 30, 2017
Earnings per common share:  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Earnings per common share have been computed based on the following:

Three Months Ended Nine Months Ended
September 30, September 30,
(in thousands, except for per share data)
    2017     2016     2017     2016
Net income available to common stockholders $        13,035 $                 11,812 $        32,534 $        33,106
Earnings allocated to participating securities 42 44 106 22
Income attributable to common stock $ 13,077 $ 11,856 $ 32,640 $ 33,128
Weighted average common shares outstanding, including participating securities 32,015 30,143 31,999 30,094
Weighted average participating securities (103 ) (113 ) (104 ) (98 )
Weighted average common shares outstanding 31,912 30,030 31,895 29,996
Incremental shares from assumed conversions of options, performance units and restricted shares 270 329 272 351
Weighted average common and equivalent shares outstanding 32,182 30,359 32,167 30,347
 
Earnings per common share:
Basic $ 0.41 $ 0.39 $ 1.02 $ 1.10
Diluted 0.41 0.39 1.01 1.09
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Securities Available-For-Sale (Tables)
9 Months Ended
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Unrealized Gain (Loss) on Investments [Table Text Block]

The following tables present information related to the Company’s securities at September 30, 2017 and December 31, 2016:

Gross Gross
Amortized Unrealized Unrealized Fair
September 30, 2017       Cost       Gains       Losses       Value
(dollars in thousands)
Federal agency obligations   $        55,819   $        290   $        (171 )   $        55,938
Residential mortgage pass-through securities 133,517 668 (1,021 ) 133,164
Commercial mortgage pass-through securities     4,088     42     -       4,130
Obligations of U.S. states and political subdivisions 143,787 2,233 (1,044 ) 144,976
Trust preferred securities     4,576     122     (71 )     4,627
Corporate bonds and notes 30,052 255 (219 ) 30,088
Asset-backed securities     12,605     66     (38 )     12,633
Certificates of deposit 622 5 - 627
Equity securities     376     254     -       630
Other securities 13,976 - (273 ) 13,703
Total securities available-for-sale   $ 399,418   $ 3,935   $ (2,837 )   $ 400,516
 
Gross Gross
Amortized Unrealized Unrealized Fair
December 31, 2016 Cost Gains Losses Value
  (dollars in thousands)
Federal agency obligations   $ 52,826   $ 282   $ (271 )   $ 52,837
Residential mortgage pass-through securities 72,922 519 (944 ) 72,497
Commercial mortgage pass-through securities     4,186     23     -       4,209
Obligations of U.S. states and political subdivisions 148,747 2,789 (931 ) 150,605
Trust preferred securities     5,575     242     (151 )     5,666
Corporate bonds and notes 36,717 586 (375 ) 36,928
Asset-backed securities     14,867     2     (286 )     14,583
Certificates of deposit 973 10 - 983
Equity securities     376     192     -       568
Other securities 14,739 - (325 ) 14,414
Total securities available-for-sale   $ 351,928   $ 4,645   $ (3,283 )   $ 353,290
Investments Classified by Contractual Maturity Date [Table Text Block]

The following table presents information for securities at September 30, 2017, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer.

September 30, 2017
Amortized Fair
      Cost       Value
(dollars in thousands)
Securities available-for-sale:
Due in one year or less $        6,775 $        6,801
Due after one year through five years 30,824 31,197
Due after five years through ten years 39,489 40,174
Due after ten years 170,373 170,717
Residential mortgage pass-through securities 133,517 133,164
Commercial mortgage pass-through securities 4,088 4,130
Equity securities 376 630
Other securities 13,976 13,703
Total $ 399,418 $ 400,516
Schedule of Realized Gain (Loss) [Table Text Block]

Gross gains and losses from the sales, calls and maturities of securities for periods presented were as follows (dollars in thousands):

Three Months Ended Nine Months Ended
September 30, September 30,
      2017       2016       2017       2016
Net gains on sales of securities, after tax $        - $        78,680 $        29,543 $        85,253
 
Gross gains on sales of securities - 4,131 1,596 4,234
Gross losses on sales of securities - - - -
Net gains on sales of securities - 4,131 1,596 4,234
Less: tax provision on net gains - 1,640 579 1,682
 
Net gains on sales of securities, after tax $ - $ 2,491 $ 1,017 $ 2,552
Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at September 30, 2017 and December 31, 2016:

September 30, 2017
Total Less than 12 Months 12 Months or Longer
Fair Unrealized Fair Unrealized Fair Unrealized
    Value     Losses     Value     Losses     Value     Losses
(dollars in thousands)
Federal agency obligation $     21,451 $      (171 ) $    17,679 $      (116 ) $    3,772 $      (55 )
Residential mortgage pass-through securities 77,391 (1,021 ) 49,079 (457 ) 28,312 (564 )
Obligations of U.S. states and political subdivisions 54,073 (1,044 ) 47,016 (829 ) 7,057 (215 )
Trust preferred securities 1,507 (71 ) - - 1,507 (71 )
Corporate bonds and notes 13,123 (219 ) 3,946 (38 ) 9,177 (181 )
Asset-backed securities 7,929 (38 ) - - 7,929 (38 )
Other securities 11,193 (273 ) 5,911 (56 ) 5,282 (217 )
Total temporarily impaired securities $ 186,667 $ (2,837 ) $ 123,631 $ (1,496 ) $ 63,036 $ (1,341 )

December 31, 2016
Total Less than 12 Months 12 Months or Longer
Fair Unrealized Fair Unrealized Fair Unrealized
    Value     Losses     Value     Losses     Value     Losses
(dollars in thousands)
Federal agency obligation $    22,672 $       (271 ) $    21,416 $      (262 ) $    1,256 $         (9 )
Residential mortgage pass-through securities 50,136 (944 ) 49,817 (937 ) 319 (7 )
Obligations of U.S. states and political subdivisions 52,307 (931 ) 52,307 (931 ) - -
Trust preferred securities 1,427 (151 ) - - 1,427 (151 )
Corporate bonds and notes 15,930 (375 ) 7,671 (265 ) 8,259 (110 )
Asset-backed securities 13,404 (286 ) 3,743 (88 ) 9,661 (198 )
Other securities 11,467 (325 ) - - 11,467 (325 )
Total temporarily impaired securities $ 167,343 $ (3,283 ) $ 134,954 $ (2,483 ) $ 32,389 $ (800 )
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Derivatives (Tables)
9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Derivatives [Table Text Block]

Summary information about the interest rate swaps designated as cash flow hedges as of September 30, 2017, December 31, 2016 and September 30, 2016 are presented in the following table.

September 30, December 31, September 30,
      2017       2016       2016
(dollars in thousands)
Notional amount $        100,000 $        75,000 $        75,000
Weighted average pay rates 1.52 % 1.59 % 1.58 %
Weighted average receive rates 1.07 % 0.69 % 0.70 %
Weighted average maturity 2.7 years 2.8 years 3.1 years
Fair value $ 164 $ 88 $ (1,212 )
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods:

Nine Months Ended September 30, 2017
Amount of gain Amount of gain Amount of gain (loss)
(loss) recognized (loss) reclassified recognized in other
in OCI (Effective from OCI to Noninterest income
      Portion)       interest income       (Ineffective Portion)
(dollars in thousands)
Interest rate contracts $                          45 $                             - $                                          -

Nine Months Ended September 30, 2016
Amount of gain Amount of gain Amount of gain (loss)
(loss) recognized (loss) reclassified recognized in other
in OCI (Effective from OCI to Noninterest income
      Portion)       interest income       (Ineffective Portion)
(dollars in thousands)
Interest rate contracts $                      (640 ) $                                - $                                       -
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2017 and December 31, 2016:

September 30, 2017  December 31, 2016
Notional Notional
Amount Fair Value Amount Fair Value
(dollars in thousands)
Interest rate swaps related to FHLB advances included in assets       $        100,000       $        164       $        75,000       $        88
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Loans and the Allowance for Loan Losses (Tables)
9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Loans held for sale [Table Text Block]

The following table presents loans held-for-sale by loan segment:

September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        47,430 $        70,105
Commercial real estate 41,811   7,712
Residential real estate   145   188
Total carrying amount $ 89,386 $ 78,005
Activity in the valuation allowance [Table Text Block]

Activity in the valuation allowance was as follows for periods presented:

      Three Months       Three Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $        12,325   $        -
Reduction from loans paid off (38 )    
Increase in valuation allowance 3,000 -
Balance at end of period $ 15,287 $ -
 
 
Nine Months Nine Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $ - $ -
Reduction from loans paid off (38 )
Increase in valuation allowance   15,325 -
Balance at end of period $ 15,287 $ -
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at September 30, 2017 and December 31, 2016:

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        641,613 $        553,576
Commercial real estate 2,585,205 2,204,710
Commercial construction 399,453   486,228  
Residential real estate 264,244 232,547
Consumer 1,912   2,380
Gross loans   3,892,427   3,479,441
Net deferred loan fees (3,138 ) (3,609 )
Total loans receivable $ 3,889,289 $ 3,475,832
Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block]

The recorded investment of those loans is as follows at September 30, 2017 and December 31, 2016.

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial $        5,243   $        7,098
Commercial real estate   232   982
Total carrying amount $ 5,475 $ 8,080
Loans and Leases Receivable Purchased Loans [Table Text Block]

The following tables presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for the following periods:

      Three Months       Three Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $        2,496 $        3,233
Accretion of income (180 ) (185 )
Balance at end of period $ 2,316 $ 3,048
 
Nine Months Nine Months
Ended Ended
September 30, September 30,
2017 2016
(dollars in thousands)
Balance at beginning of period $ 2,860   $ 3,599
Accretion of income   (544 )   (551 )
Balance at end of period $ 2,316   $ 3,048
Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The following tables presents nonaccrual loans included in loans receivable by loan segment as of the periods presented:

      September 30,       December 31,
2017 2016
(dollars in thousands)
Commercial   $        951 $        1,460
Commercial real estate   8,369   1,081
Residential real estate 4,435   3,193
Total loans receivable on nonaccrual status $ 13,755 $ 5,734
Financing Receivable Credit Quality Indicators [Table Text Block]

The following table presents information, excluding loans held-for-sale and net deferred loan fees, about the Company’s loan credit quality at September 30, 2017 and December 31, 2016:

September 30, 2017
            Special                  
Pass Mention Substandard Doubtful Total
(dollars in thousands)
Commercial $        630,818 $        3,882 $        6,913 $        - $        641,613
Commercial real estate 2,535,005 30,875 19,325 - 2,585,205
Commercial construction 393,625 3,239 2,589 - 399,453
Residential real estate 264,244 - - - 264,244
Consumer 1,912 - - - 1,912
Gross loans $ 3,825,604 $ 37,996 $ 28,827 $ - $ 3,892,427
 
December 31, 2016
Special
Pass Mention Substandard Doubtful Total
(dollars in thousands)
Commercial $ 539,961 $ 3,255 $ 10,360 $ - $ 553,576
Commercial real estate 2,154,343 31,173 19,194 - 2,204,710
Commercial construction 480,319 3,388 2,521 - 486,228
Residential real estate 228,990 - 3,557 - 232,547
Consumer 2,318 - 62 - 2,380
Gross loans $ 3,405,931 $ 37,816 $ 35,694 $ - $ 3,479,441
Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by segment as of September 30, 2017 and December 31, 2016:

      September 30, 2017
      Unpaid      
Recorded Principal Related
Investment Balance Allowance
No related allowance recorded (dollars in thousands)
Commercial $ 3,068 $ 3,073
Commercial real estate 19,221 19,283
Commercial construction 4,340 4,340  
Residential real estate 2,520 2,749
Consumer 46 46
Total $ 29,195 $ 29,491
 
With an allowance recorded
Commercial real estate $ 1,640 $ 2,052 $        110
 
Total
Commercial $ 3,068 $ 3,073 $ -
Commercial real estate 20,861 21,335   110
Commercial construction 4,340 4,340   -
Residential real estate 2,520 2,749 -
Consumer 46 46 -
Total (including allowance) $ 30,835 $ 31,543 $ 110
  
December 31, 2016
Unpaid
Recorded Principal Related
Investment Balance Allowance
No related allowance recorded (dollars in thousands)
Commercial $        3,637 $        4,063
Commercial real estate 18,288 18,288
Commercial construction 5,909 5,909
Residential real estate 1,851 2,055
Consumer 62 62
Total $ 29,747 $ 30,377
 
With an allowance recorded
Commercial real estate $ 1,244 $ 1,244 $ 145
 
Total
Commercial $ 3,637 $ 4,063 $ -
Commercial real estate   19,532   19,532 145
Commercial construction   5,909 5,909 -
Residential real estate 1,851 2,055 -
Consumer 62   62 -
Total (including allowance) $ 30,991 $ 31,621 $ 145
Schedule of Average Balance and Interest Income Recognized on Impaired Loans [Table Text Block]

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by segment as of and for the three and nine months ended September 30, 2017 and 2016:

      Three Months Ended September 30,       Nine Months Ended September 30,
2017       2016 2017       2016
Average       Interest Average       Interest Average       Interest Average       Interest
Recorded Income Recorded Income Recorded Income Recorded Income
Investment Recognized Investment Recognized Investment Recognized Investment Recognized
(dollars in thousands)
Impaired loans (no allowance)  
 
Commercial $        3,100 $        34 $        6,704 $        66 $        3,149 $        115 $        4,317 $        86
Commercial real estate 19,302 221   9,129   65 18,813 424 8,167 118
Commercial construction   4,285 63   1,224 21 4,273 215 979 54
Residential real estate 2,529 2 3,271 5 2,551 6 3,247     15
Consumer   48   1 70 1 54 2   74 3
Total $ 29,264 $ 321 $ 20,398   $ 158 $ 28,840 $ 762 $ 16,784 $ 276
 
Impaired loans (allowance):
 
Commercial $ - $ - $ 91,393 $ 925 $ - $ - $ 85,620 $ 2,447
Commercial real estate 1,645 2 153 - 1,654 39 153 -
Total $ 1,645 $ 2 $ 91,546 $ 925 $ 1,654 $ 39 $ 85,773 $ 2,447
 
Total impaired loans:
 
Commercial $ 3,100 $ 34 $ 98,097 $ 991 $ 3,149 $ 115 $ 89,937 $ 2,533
Commercial real estate 20,947 223 9,282 65 20,467 463 8,320 118
Commercial construction 4,285 63 1,224 21 4,273 215 979 54
Residential mortgage 2,259 2 3,271 5 2,551 6 3,247 15
Consumer 48 1 70 1 54 2 74 3
 
Total $ 30,909 $ 323 $ 111,944 $ 1,083 $ 30,494 $ 801 $ 102,557 $ 2,723
Past Due Financing Receivables [Table Text Block]

The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at September 30, 2017 and December 31, 2016 by segment:

Aging Analysis

September 30, 2017
               90 Days or                    
Greater Past Total Past
30-59 Days 60-89 Days Due and Still Due and
Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans
(dollars in thousands)
Commercial $        199 $        288 $        4,209 $        951 $        5,647 $        635,966 $        641,613
Commercial real estate 586 8,057 - 8,369 17,012 2,568,193 2,585,205
Commercial construction     -   - - - - 399,453 399,453
Residential real estate 918   541   - 4,435 5,894 258,350 264,244
Consumer - 2 - - 2 1,910 1,912
Total $ 1,703 $ 8,888 $ 4,209 $ 13,755 $ 28,555 $ 3,863,872 $ 3,892,427
 
December 31, 2016
90 Days or
Greater Past Total Past
30-59 Days 60-89 Days Due and Still Due and
Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans
(dollars in thousands)
Commercial $ 475 $ 18 $ 4,630 $ 1,460 $ 6,583 $ 546,993 $ 553,576
Commercial real estate 4,928 1,584 663 1,081 8,256 2,196,454 2,204,710
Commercial construction - - - -     - 486,228   486,228
Residential real estate 2,131 388   -     3,193 5,712     223,835   232,547
Consumer - - - - - 2,380 2.380
Total $ 7,534 $ 1,990 $ 5,293 $ 5,734 $ 20,551 $ 3,458,890 $ 3,479,441
Schedule of Recorded Investment in Financing Receivables [Table Text Block]

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated credit quality, and the related portion of the allowance for loan losses (“ALLL”) that are allocated to each loan portfolio segment:

      September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
ALLL
Individually evaluated for impairment $        - $        110 $        - $        - $        - $        - $        110
Collectively evaluated for impairment 7,716 15,224 3,940 1,052 2 326 28,260
Acquired portfolio - 1,500 - - - - 1,500
Acquired with deteriorated credit quality - - - - - - -
Total ALLL $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870
 
Gross loans  
Individually evaluated for impairment $ 3,068 $ 20,861   $ 4,340   $ 2,520 $ 46   $ 30,835
Collectively evaluated for impairment 618,012 2,142,385 395,113 199,902   1,410   3,356,822
Acquired portfolio   15,290     421,727   - 61,822 456   499,295
Acquired with deteriorated credit quality 5,243 232 -   - -   5,475
Total gross loans $ 641,613 $ 2,585,205 $ 399,453 $ 264,244 $ 1,912 $ 3,892,427
 
December 31, 2016
Commercial Commercial Residential
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
ALLL
Individually evaluated for impairment $ - $ 145 $ - $ - $ - $ - $ 145
Collectively evaluated for impairment 6,632 12,438 4,789 958 3 779 25,599
Acquired portfolio - - - - - - -
Acquired with deteriorated credit quality - - - - - - -
Total ALLL $ 6,632 $ 12,583 $ 4,789 $ 958 $ 3 $ 779 $ 25,744
 
Gross loans
Individually evaluated for impairment $ 3,637 $ 19,532 $ 5,909 $ 1,851 $ 62 $ 30,991
Collectively evaluated for impairment 517,869 1,621,745 478,865 163,686 1,757 2,783,922
Acquired portfolio 24,972 562,451 1,454 67,010 561 656,448
Acquired with deteriorated credit quality 7,098 982 - - - 8,080
Total gross loans $ 553,576 $ 2,204,710 $ 486,228 $ 232,547 $ 2,380 $ 3,479,441
Allowance for Credit Losses on Financing Receivables [Table Text Block]

A summary of the activity in the ALLL is as follows:

      Three Months Ended September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at June 30, 2017 $        7,238 $        15,389 $        4,241 $        985 $        2 $        546 $        28,401
 
Charge-offs - - - - (1 ) - (1 )
 
Recoveries 17 2 - - 1 - 20
 
Provision for loan losses 461 1,443 (301 ) 67 - (220 ) 1,450
 
Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940 $ 1,052 $ 2 $ 326 $ 29,870
 
Three Months Ended September 30, 2016
Commercial Commercial Residential
Commercial real estate construction real estate   Consumer Unallocated Total  
(dollars in thousands)
Balance at June 30, 2016 $ 15,548   $ 11,371 $ 4,040   $ 1,091   $ 4   $ 709   $ 32,763
 
Charge-offs   (1,878 ) - - (27 )   (5 ) - (1,910 )
 
Recoveries 1 10 - - 1 - 12
 
Provision for loan losses 6,725   (6 ) 32 110 4 (115 ) 6,750
   
Balance at September 30, 2016 $ 20,396 $ 11,375 $ 4,072 $ 1,174 $ 4 $ 594 $ 37,615

      Nine Months Ended September 30, 2017
      Commercial       Commercial       Residential                  
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at December 31, 2016 $        6,632 $        12,583 $        4,789 $        958 $        3 $        779 $        25,744
 
Charge-offs - (71 ) - - (12 ) - (83 )
 
Recoveries 158 50 - - 1 - 209
 
Provision for loan losses 926 4,272 (849 ) 94 10 (453 ) 4,000
 
Balance at September 30, 2017 $ 7,716 $ 16,834 $ 3,940   $ 1,052 $ 2 $ 326 $ 29,870
  
Nine Months Ended September 30, 2016
Commercial Commercial Residential
Commercial real estate construction real estate Consumer Unallocated Total
(dollars in thousands)
Balance at December 31, 2015 $ 10,949   $ 10,926   $ 3,253 $ 976   $ 4   $ 464 $ 26,572
 
Charge-offs (2,396 ) - - (94 )   (10 )   -   (2,500 )
 
Recoveries 2 35 - 3 3 - 43
 
Provision for loan losses 11,841 414 819 289 7 130 13,500
 
Balance at September 30, 2016 $ 20,396 $ 11,375 $ 4,072 $ 1,174 $ 4 $ 594 $ 37,615
Allowance for Loan and Lease Losses [Table Text Block]

The following table presents a rollforward of TDRs and the related changes to the allowance for loan losses (“ALLL”) that occurred for the periods presented:

Nine Months Ended Year Ended
September 30, 2017 December 31, 2016
(dollars in thousands)
Recorded Recorded
      Investment       ALLL       Investment       ALLL
Troubled Debt Restructurings
  
Beginning balance $      13,818 $      - $      86,629 $      4,500
Additions 5,668 - 26,325 8,250
Payoffs/paydowns (1,309 ) - (2,616 ) -
Transfers (580 ) - (96,520 ) -
Other - - - (12,750 )
Ending balance $ 17,597 $ - $ 13,818 $ -
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016 (dollars in thousands):

Pre-Modification Post-Modification
Outstanding Outstanding
Number of Recorded Recorded
      Loans       Investment       Investment
Troubled debt restructurings:
Commercial 16 $ 19,311 $ 19,311
Commercial real estate 2 581 581
Commercial construction - - -
Residential real estate - - -
Consumer - - -
 
Total 18 $ 19,892 $ 19,892
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Fair Value Measurements and Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2017 and December 31, 2016 are as follows:

September 30, 2017
Fair Value Measurements at Reporting Date Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
            (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Recurring fair value measurements:
Assets
Securities:
Federal agency obligations $      55,938 $      - $      55,938 $      -
Residential mortgage pass-through securities 133,164 - 133,164 -
Commercial mortgage pass-through securities 4,130 - 4,130 -
Obligations of U.S. states and political subdivisions 144,976 - 127,111 17,865
Trust preferred securities 4,627 - 4,627 -
Corporate bonds and notes 30,088 - 30,088 -
Asset-backed securities 12,633 - 12,633 -
Certificates of deposit 627 - 627 -
Equity securities 630 630 - -
Other securities 13,703 13,703 - -
Total available-for-sale 400,516 14,333 368,318 17,685
Derivatives 164 - 164 -
Total Assets $ 400,680 $ 14,333 $ 368,482 $ 17,685

December 31, 2016
Fair Value Measurements at Reporting Date Using
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
            (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Recurring fair value measurements:
Assets
Securities:
Federal agency obligations $      52,837 $      - $      52,837 $      -
Residential mortgage pass-through securities 72,497 - 72,497 -
Commercial mortgage pass-through securities 4,209 - 4,209 -
Obligations of U.S. states and political subdivisions 150,605 - 132,387 18,218
Trust preferred securities 5,666 - 5,666 -
Corporate bonds and notes 36,928 - 36,928 -
Asset-backed securities 14,583 - 14,583 -
Certificates of deposit 983 - 983 -
Equity securities 568 568 - -
Other securities 14,414 14,414 - -
Total available-for-sale 353,290 14,982 320,090 18,218
Derivatives 88 - 88 -
Total assets $ 353,378 $ 14,982 $ 320,178 $ 18,218
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

For assets measured at fair value on a non-recurring basis, the fair value measurements at September 30, 2017 and December 31, 2016 are as follows:

Fair Value Measurements at Reporting Date Using
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
September Assets Inputs Inputs
Assets measured at fair value on a nonrecurring basis:       30, 2017       (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
Impaired loans:
Commercial real estate $      1,198 $      - $      - $      1,198
 
Loans held-for-sale:
Commercial 47,430 - - 47,430
 
Fair Value Measurements at Reporting Date Using
Quoted
Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
December 31, Assets Inputs Inputs
Assets measured at fair value on a nonrecurring basis: 2016 (Level 1) (Level 2) (Level 3)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,099 $ - $ - $ 1,099
 
Loans held-for-sale:
Commercial 70,105 - 4,509 65,596
Commercial real estate 7,712 - 7,712 -
Fair Value, Recurring basis [Table Text Block]

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2017 and year ended December 31, 2016:

Municipal
      Securities
(dollars in thousands)
Beginning balance, January 1, 2017 $                           18,218
Principal paydowns (353 )
Ending balance, September 30, 2017 $ 17,865
 
Municipal
Securities
(dollars in thousands)
Beginning balance, January 1, 2016 $ -
Other(1) 18,335
Principal paydowns (117 )
Ending balance, December 31, 2016 $ 18,218
Significant unobservable inputs used in fair value measurements [Table Text Block]

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2017 and December 31, 2016. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2017
Valuation Unobservable
      Fair Value       Techniques       Input       Range
(dollars in thousands)
Securities available-for-sale:
Municipal securities $      17,865 Discounted cash flows Discount rate 2.8%
 
December 31, 2016
Valuation Unobservable
Fair Value Techniques Input Range
(dollars in thousands)
Securities available-for-sale:
Municipal securities $ 18,218 Discounted cash flows Discount rate 2.8%
Fair Value Measurements, Nonrecurring [Table Text Block]

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2017
Valuation
Techniques Unobservable
Type       Fair Value       (weightings)       Input       Range (weighted average)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,918 Appraisals of
collateral value
Comparable sales 0% - 15% (6%)
 
Loans held-for-sale:
Commercial taxi medallion loans $ 47,430 Market approach
(70%)
Indications expressed as a
price to unpaid principal
balance
37 - 100 (46)
 
Discounted cash
flows (30%)
Discount rate 14%
 
December 31, 2016
Valuation
Techniques Unobservable
Type Fair Value (weightings) Input Range (weighted average)
(dollars in thousands)
Impaired loans:
Commercial real estate $ 1,099 Appraisals of
collateral value
Comparable sales 0% - 15% (6%)
 
Loans held-for-sale:
Commercial taxi medallion loans $ 65,596 Market approach
(70%)
Indications under securitized
transactions expressed as a
price to unpaid principal
balance
40 - 100 (59)
 
Discounted cash
flows (30%)
Discount Rate 14%
Fair Value, by Balance Sheet Grouping [Table Text Block]

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2017 and December 31, 2016:

Fair Value Measurements
Quoted
Prices in
Active Significant
Markets for Other Significant
Identical Observable Unobservable
Carrying Fair Assets Inputs Inputs
      Amount       Value       (Level 1)       (Level 2)       (Level 3)
(dollars in thousands)
September 30, 2017
Financial assets:
Cash and due from banks $      141,262 $      141,262 $      141,262 $      - $      -
Securities available-for-sale 400,516 400,516 14,333 368,318 17,865
Restricted investment in bank stocks 29,672 n/a n/a n/a n/a
Loans held-for-sale 89,386 89,386 - 41,956 47,430
Net loans 3,859,419 3,862,104 - - 3,862,104
Derivatives 164 164 - 164 -
Accrued interest receivable 14,841 14,841 - 2,011 12,830
 
Financial liabilities:
Noninterest-bearing deposits 719,582 719,582 719,582 - -
Interest-bearing deposits 2,904,187 2,904,285 1,825,846 1,078,439 -
Borrowings 585,124 586,474 - 586,474 -
Subordinated debentures 54,657 56,519 - 56,519 -
Accrued interest payable 4,304 4,304 - 4,304 -
 
December 31, 2016
Financial assets:
Cash and due from banks $ 200,399 $ 200,399 $ 200,399 $ - $ -
Securities available-for-sale 353,290 353,290 14,982 320,090 18,218
Restricted investment in bank stocks 24,310 n/a n/a n/a n/a
Loans held-for-sale 78,005 78,005 - 12,409 65,596
Net loans 3,450,088 3,462,138 - - 3,462,138
Derivatives 88 88 - 88 -
Accrued interest receivable 12,965 12,965 - 2,026 10,939
 
Financial liabilities:
Noninterest-bearing deposits 694,977 694,977 694,977 - -
Interest-bearing deposits 2,649,294 2,649,717 1,681,044 968,673 -
Borrowings 476,280 478,286 - 478,286 -
Subordinated debentures 54,534 55,901 - 55,901 -
Accrued interest payable 4,142 4,142 - 4,142 -

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Other Comprehensive Income (Loss) (Tables)
9 Months Ended
Sep. 30, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following represents the reclassifications out of accumulated other comprehensive (loss) income for the periods presented:

Affected Line item in the
Details about Accumulated Other Amounts Reclassified from Accumulated Amounts Reclassified from Accumulated Statement Where Net Income is
Comprehensive Income Components Other Comprehensive Income/(Loss) Other Comprehensive Income/(Loss) Presented
(dollars in thousands)
Three Months Ended September 30, Nine Months Ended September 30,
    2017     2016     2017     2016    
Sale of securities available-for-sale $                 - $                 4,131 $                 1,596 $                 4,234 Net gains on sales of securities available for sale
- (1,640 ) (579 ) (1,682 ) Income tax expense
- 2,491 1,017 2,552
 
Amortization of pension plan net actuarial losses (103 ) (204 ) (309 ) (306 ) Salaries and employee benefits
42 83 126 124 Income tax benefit
(61 ) (121 ) (183 ) (182 )
 
Total reclassification $ (61 ) $ 2,370 $ 834 $ 2,370
Comprehensive Income (Loss) [Table Text Block]

Accumulated other comprehensive (loss) income (net of tax) at September 30, 2017 and December 31, 2016 consisted of the following:

September 30, December 31,
      2017       2016
(dollars in thousands)
Securities available-for-sale $             723 $           933
Cash flow hedge 97 52
Defined benefit pension and post-retirement plans (3,649 ) (3,831 )
Total accumulated other comprehensive loss $ (2,829 ) $ (2,846 )
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Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Activity under the Company’s option plans as of and for the nine months ended September 30, 2017 were as follows:

Weighted-
Average
Weighted- Remaining
Average Contractual
Exercise Term Aggregate
      Shares       Price       (In Years)       Intrinsic Value
Outstanding at December 31, 2016 358,367 $      6.26
Granted - -
Exercised 10,846 10.89
Forfeited/cancelled/expired - -
Outstanding at September 30, 2017 347,521 $ 6.11 1.90 $      6,425,663
Exercisable at September 30, 2017 343,991 $ 6.03 1.86 $ 6,387,912
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

The below table represents information regarding restricted shares currently outstanding at September 30, 2017:

Weighted-
Average
Nonvested Grant Date
      Shares       Fair Value
Nonvested at December 31, 2016        111,273 $      16.81
Granted 57,164 23.82
Vested (65,359 ) 16.49
Forfeited/cancelled/expired - -
Nonvested at September 30, 2017 103,078 $ 20.41
Schedule of Unearned Performance Unit Awards [Table Text Block]

A summary of the status of unearned performance unit awards and the change during the period is presented in the table below:

Weighted
Average Grant
Units Units Date Fair
      (expected)       (maximum)       Value
Unearned at December 31, 2016       151,572 189,455 $ 18.47
Awarded 24,891 37,336 22.75
Forfeited - - -
Adjustments (25,269 ) - 18.47
Unearned at September 30, 2017 151,194 226,791 $ 19.19
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Components of Net Periodic Pension Cost (Tables)
9 Months Ended
Sep. 30, 2017
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs [Table Text Block]

The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated.

Three Months Ended Nine Months Ended
September 30, September 30,
      2017       2016       2017       2016
(dollars in thousands)
Interest cost $      119 $      129 $      358 $      386
Expected return on plan assets (160 ) (166 ) (480 ) (457 )
Net amortization 103 101 309 305
Recognized settlement loss - - 2 -
Net periodic pension cost $ 62 $ 64 $ 189 $ 234
 
Amortization of actuarial loss $ (103 ) $ (204 ) $ (309 ) $ (306 )
 
Total recognized in other comprehensive income $ (103 ) $ (204 ) $ (309 ) $ (306 )
 
Total recognized in net expense and OCI (before tax) $ (41 ) $ (140 ) $ (120 ) $ (72 )
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FHLB Borrowings (Tables)
9 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments [Table Text Block]

The Company’s FHLB borrowings and weighted average interest rates are summarized below:

September 30, 2017 December 31, 2016
      Amount       Rate       Amount       Rate
(dollars in thousands)
Total FHLB borrowings $      585,124 1.61 % $      461,280 1.55 %
 
By remaining period to maturity:
Less than 1 year $ 415,124 1.41 % $ 231,280 1.02 %
1  year through less than 2 years 105,000 1.69 % 130,000 1.84 %
2 years through less than 3 years 25,000 1.85 % 35,000 1.60 %
3 years through less than 4 years 40,000 3.43 % 65,000 2.82 %
4 years through 5 years - - - -
Total FHLB borrowings $ 585,124 1.61 % $ 461,280 1.55 %
XML 46 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Sold under Agreements to Repurchase (Tables)
9 Months Ended
Sep. 30, 2017
Securities Sold Under Agreements To Repurchase Tables  
Schedule of information concerning repurchase agreements [Table Text Block]

Repurchase agreements are secured borrowings. The Company pledges securities to secure those borrowings. Information concerning repurchase agreements is summarized as follows for the periods presented:

September 30, December 31, September 30,
      2017       2016       2016
(dollars in thousands)
Average daily balance during the year-to-date $      9,065 $      15,000 $      15,000
Average interest rate during the year-to-date 5.95 % 5.95 % 5.95 %
Maximum month end balance during the year-to-date $ 15,000 $ 15,000 $ 15,000
Weighted average interest rate during the year-to-date 5.95 % 5.95 % 5.95 %
Schedule of remaining contractual maturity [Table Text Block]

As of September 30, 2017, there were no repurchase agreements outstanding. The previous outstanding repurchase agreement of $15.0 million was repaid on June 15, 2017.

December 31, 2016
Remaining Contractual Maturity of the Agreements
Overnight and Up to 30 Greater Than
      Continuous       Days       31-90 Days       90 Days       Total
(dollars in thousands)
Repurchase agreements & repurchase-to-maturity transaction
U.S. Treasury and agency securities $ - $ - $ - $ - $      -
Residential mortgage pass-through securities - - - 16,826 16,826
Total borrowings $ - $ - $ - $ 16,826 $ 16,826
 
Amounts related to agreements not included in offsetting disclosure in Note 14: $ 1,826
XML 47 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Subordinated Debentures (Tables)
9 Months Ended
Sep. 30, 2017
Subordinated Borrowings [Abstract]  
Schedule of Subordinated Debentures [Table Text Block]

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II at September 30, 2017 and December 31, 2016.

Securities Redeemable by
Issuance Date       Issued       Liquidation Value       Coupon Rate       Maturity       Issuer Beginning
12/19/2003 $      5,000,000 $1,000 per Capital Floating 3-month 01/23/2034 01/23/2009
Security LIBOR + 285 Basis
Points
XML 48 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Offsetting Assets and Liabilities (Tables)
9 Months Ended
Sep. 30, 2017
Offsetting Assets And Liabilities Tables  
Schedule of financial instruments that are eligible for offset [Table Text Block]

The following table presents information about financial instruments that are eligible for offset as of September 30, 2017 and December 31, 2016:

Gross Amounts Not Offset
Gross Amounts Net Amounts of Cash or
Offset in the   Assets Presented in Financial Financial
Gross Amounts Statement of the Statement of Instruments Instrument Net
     Recognized      Financial Position      Financial Position      Recognized      Collateral      Amount
(dollars in thousands)
September 30, 2017
Assets:
Interest rate swaps $      164 $      - $      164 $      - $      - $      164
Liabilities:
Repurchase agreements $ - $ - $ - $ - $ - $ -
December 31, 2016
Assets:
Interest rate swaps $ 88 $ - $ 88 $ - $ - $ 88
Liabilities:
Repurchase agreements $ 15,000 $ - $ 15,000 $ - $ 15,000 $ -

XML 49 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
Earnings per Common Share (Details) - Schedule of earnings per common share - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Earnings per common share:        
Net income available to common stockholders $ 13,035 $ 11,812 $ 32,534 $ 33,106
Earnings allocated to participating securities 42 44 106 22
Income attributable to common stock $ 13,077 $ 11,856 $ 32,640 $ 33,128
Weighted average common shares outstanding, including participating securities 32,015 30,143 31,999 30,094
Weighted average participating securities (103) (113) (104) (98)
Weighted average common shares outstanding 31,912 30,030 31,895 29,996
Incremental shares from assumed conversions of options, performance units and restricted shares 270 329 272 351
Weighted average common and equivalent shares outstanding 32,182 30,359 32,167 30,347
Earnings per common share:        
Basic $ 0.41 $ 0.39 $ 1.02 $ 1.1
Diluted $ 0.41 $ 0.39 $ 1.01 $ 1.09
XML 50 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Available-For-Sale (Details)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
USD ($)
Sep. 30, 2017
USD ($)
Integer
Dec. 31, 2016
USD ($)
Integer
Investments, Debt and Equity Securities [Abstract]      
Increase in amortized cost basis of available-for-sale securities $ 210.0    
Net increase to accumulated other comprehensive income net of tax $ 7.4    
Number of Investment Securities Sold | Integer   75 84
Available-for-sale Securities Pledged as Collateral   $ 139.5 $ 121.9
Description of Holding Securities   there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.
XML 51 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Available-For-Sale (Details) - Unrealized gains on investment securities - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Securities available-for-sale    
Securities available-for-sale, Amortized Cost $ 399,418 $ 351,928
Securities available-for-sale, Gross Unrealized Gains 3,935 4,645
Securities available-for-sale, Gross Unrealized Losses (2,837) (3,283)
Securities available-for-sale, Fair Value 400,516 353,290
Federal Agency Obligations [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 55,819 52,826
Securities available-for-sale, Gross Unrealized Gains 290 282
Securities available-for-sale, Gross Unrealized Losses (171) (271)
Securities available-for-sale, Fair Value 55,938 52,837
Residential mortgage pass-through securities [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 133,517 72,922
Securities available-for-sale, Gross Unrealized Gains 668 519
Securities available-for-sale, Gross Unrealized Losses (1,021) (944)
Securities available-for-sale, Fair Value 133,164 72,497
Commercial mortgage pass-through securities [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 4,088 4,186
Securities available-for-sale, Gross Unrealized Gains 42 23
Securities available-for-sale, Gross Unrealized Losses
Securities available-for-sale, Fair Value 4,130 4,209
Obligations of U.S. states and political subdivisions [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 143,787 148,747
Securities available-for-sale, Gross Unrealized Gains 2,233 2,789
Securities available-for-sale, Gross Unrealized Losses (1,044) (931)
Securities available-for-sale, Fair Value 144,976 150,605
Trust Preferred Securities [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 4,576 5,575
Securities available-for-sale, Gross Unrealized Gains 122 242
Securities available-for-sale, Gross Unrealized Losses (71) (151)
Securities available-for-sale, Fair Value 4,627 5,666
Corporate Bonds And Notes [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 30,052 36,717
Securities available-for-sale, Gross Unrealized Gains 255 586
Securities available-for-sale, Gross Unrealized Losses (219) (375)
Securities available-for-sale, Fair Value 30,088 36,928
Asset-backed Securities [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 12,605 14,867
Securities available-for-sale, Gross Unrealized Gains 66 2
Securities available-for-sale, Gross Unrealized Losses (38) (286)
Securities available-for-sale, Fair Value 12,633 14,583
Certificates of Deposit [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 622 973
Securities available-for-sale, Gross Unrealized Gains 5 10
Securities available-for-sale, Gross Unrealized Losses
Securities available-for-sale, Fair Value 627 983
Equity Securities [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 376 376
Securities available-for-sale, Gross Unrealized Gains 254 192
Securities available-for-sale, Gross Unrealized Losses
Securities available-for-sale, Fair Value 630 568
Other Securities [Member]    
Securities available-for-sale    
Securities available-for-sale, Amortized Cost 13,976 14,739
Securities available-for-sale, Gross Unrealized Gains
Securities available-for-sale, Gross Unrealized Losses (273) (325)
Securities available-for-sale, Fair Value $ 13,703 $ 14,414
XML 52 R40.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Available-For-Sale (Details) - Investments classified by maturity date - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Securities available-for-sale:    
Due in one year or less, amortized cost $ 6,775  
Due in one year or less, fair value 6,801  
Due after one year through five years, amortized cost 30,824  
Due after one year through five years, fair value 31,197  
Due after five years through ten years, amortized cost 39,489  
Due after five years through ten years, fair value 40,174  
Due after ten years, amortized cost 170,373  
Due after ten years, fair value 170,717  
Total, amortized cost 399,418 $ 351,928
Total, fair value 400,516  
Residential mortgage pass-through securities [Member]    
Securities available-for-sale:    
Total, amortized cost 133,517 72,922
Total, fair value 133,164  
Commercial mortgage pass-through securities [Member]    
Securities available-for-sale:    
Total, amortized cost 4,088 4,186
Total, fair value 4,130  
Equity Securities [Member]    
Securities available-for-sale:    
Total, amortized cost 376 376
Total, fair value 630  
Other Securities [Member]    
Securities available-for-sale:    
Total, amortized cost 13,976 $ 14,739
Total, fair value $ 13,703  
XML 53 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Available-For-Sale (Details) - Schedule of realized gains and losses - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Schedule of realized gains and losses [Abstract]        
Proceeds $ 78,680 $ 29,543 $ 85,253
Gross gains on sales of securities 4,131 1,596 4,234
Gross losses on sales of securities
Net gains on sales of securities 4,131 1,596 4,234
Less: tax provision on net gains 1,640 579 1,682
Net gains on sales of securities, after tax $ 2,491 $ 1,017 $ 2,552
XML 54 R42.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Available-For-Sale (Details) - Schedule of unrealized losses not recognized in income - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Securities available-for-sale:    
Securities available-for-sale: Total, Fair Value $ 186,667 $ 167,343
Securities available-for-sale: Total, Unrealized Losses (2,837) (3,283)
Securities available-for-sale: Less than 12 Months, Fair Value 123,631 134,954
Securities available-for-sale: Less than 12 Months, Unrealized Losses (1,496) (2,483)
Securities available-for-sale: 12 Months or Longer, Fair Value 63,036 32,389
Securities available-for-sale: 12 Months or Longer, Unrealized Losses (1,341) (800)
Federal Agency Obligations [Member]    
Securities available-for-sale:    
Securities available-for-sale: Total, Fair Value 21,451 22,672
Securities available-for-sale: Total, Unrealized Losses (171) (271)
Securities available-for-sale: Less than 12 Months, Fair Value 17,679 21,416
Securities available-for-sale: Less than 12 Months, Unrealized Losses (116) (262)
Securities available-for-sale: 12 Months or Longer, Fair Value 3,772 1,256
Securities available-for-sale: 12 Months or Longer, Unrealized Losses (55) (9)
Residential mortgage pass-through securities [Member]    
Securities available-for-sale:    
Securities available-for-sale: Total, Fair Value 77,391 50,136
Securities available-for-sale: Total, Unrealized Losses (1,021) (944)
Securities available-for-sale: Less than 12 Months, Fair Value 49,079 49,817
Securities available-for-sale: Less than 12 Months, Unrealized Losses (457) (937)
Securities available-for-sale: 12 Months or Longer, Fair Value 28,312 319
Securities available-for-sale: 12 Months or Longer, Unrealized Losses (564) (7)
Obligation Of Us States And Political Subdivisions [Member]    
Securities available-for-sale:    
Securities available-for-sale: Total, Fair Value 54,073 52,307
Securities available-for-sale: Total, Unrealized Losses (1,044) (931)
Securities available-for-sale: Less than 12 Months, Fair Value 47,016 52,307
Securities available-for-sale: Less than 12 Months, Unrealized Losses (829) (931)
Securities available-for-sale: 12 Months or Longer, Fair Value 7,057
Securities available-for-sale: 12 Months or Longer, Unrealized Losses (215)
Trust Preferred Securities [Member]    
Securities available-for-sale:    
Securities available-for-sale: Total, Fair Value 1,507 1,427
Securities available-for-sale: Total, Unrealized Losses (71) (151)
Securities available-for-sale: Less than 12 Months, Fair Value
Securities available-for-sale: Less than 12 Months, Unrealized Losses
Securities available-for-sale: 12 Months or Longer, Fair Value 1,507 1,427
Securities available-for-sale: 12 Months or Longer, Unrealized Losses (71) (151)
Corporate Bonds And Notes [Member]    
Securities available-for-sale:    
Securities available-for-sale: Total, Fair Value 13,123 15,930
Securities available-for-sale: Total, Unrealized Losses (219) (375)
Securities available-for-sale: Less than 12 Months, Fair Value 3,946 7,671
Securities available-for-sale: Less than 12 Months, Unrealized Losses (38) (265)
Securities available-for-sale: 12 Months or Longer, Fair Value 9,177 8,259
Securities available-for-sale: 12 Months or Longer, Unrealized Losses (181) (110)
Asset-backed Securities [Member]    
Securities available-for-sale:    
Securities available-for-sale: Total, Fair Value 7,929 13,404
Securities available-for-sale: Total, Unrealized Losses (38) (286)
Securities available-for-sale: Less than 12 Months, Fair Value 3,743
Securities available-for-sale: Less than 12 Months, Unrealized Losses (88)
Securities available-for-sale: 12 Months or Longer, Fair Value 7,929 9,661
Securities available-for-sale: 12 Months or Longer, Unrealized Losses (38) (198)
Other Securities [Member]    
Securities available-for-sale:    
Securities available-for-sale: Total, Fair Value 11,193 11,467
Securities available-for-sale: Total, Unrealized Losses (273) (325)
Securities available-for-sale: Less than 12 Months, Fair Value 5,911
Securities available-for-sale: Less than 12 Months, Unrealized Losses (56)
Securities available-for-sale: 12 Months or Longer, Fair Value 5,282 11,467
Securities available-for-sale: 12 Months or Longer, Unrealized Losses $ (217) $ (325)
XML 55 R43.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivatives (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Apr. 13, 2017
Aug. 24, 2015
Dec. 30, 2014
Oct. 15, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]                
Notional Amount of Interest Rate Cash Flow Hedge Derivatives         $ 25,000 $ 25,000 $ 25,000 $ 25,000
Interest expense on derivatives $ 95 $ 167 $ 326 $ 534        
XML 56 R44.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivatives (Details) - Summary of interest rate swap designated as a cash flow hedges - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Summary of interest rate swap designated as a cash flow hedges [Abstract]      
Notional amount $ 100,000 $ 75,000 $ 75,000
Weighted average pay rates 1.52% 1.58% 1.59%
Weighted average receive rates 1.07% 0.70% 0.69%
Weighted average maturity 2 years 8 months 12 days 3 years 1 month 6 days 2 years 9 months 18 days
Fair value $ 164 $ (1,212) $ 88
XML 57 R45.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income - Interest Rate Contract [Member] - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income and statements of income relating to cash flow derivative instruments [Line Items]    
Amount of gain (loss) recognized in OCI (Effective Portion) $ 45 $ (640)
Amount of gain (loss) reclassified from OCI to interest income
Amount of gain (loss) recognized in other Noninterest income (Ineffective Portion)
XML 58 R46.htm IDEA: XBRL DOCUMENT v3.8.0.1
Derivatives (Details) - Summary of cash flow hedges included in the consolidated balance sheets - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Included in Assets:    
Interest rate swaps related to FHLB advances included in assets, Fair Value $ 164 $ 88
Interest Rate Swap [Member]    
Included in Assets:    
Interest rate swaps related to FHLB advances included in assets, Notional Amount 100,000 75,000
Interest rate swaps related to FHLB advances included in assets, Fair Value $ 164 $ 88
XML 59 R47.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]        
Non Accrual Contractual Due   90 days    
Loans held-for-sale, Carrying Amount   $ 89,386   $ 78,005
Loans Pledged as Collateral   1,900,000   1,800,000
Loans performing under the restructured terms   12,800 $ 105,300 13,300
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans   4,900 1,400 500
Troubled debt restructurings   17,600 106,700 13,800
Allowance for Loan and Lease Losses Period Increase Decrease Due to Trouble Debt Restructuring $ 5,000 $ 17,300 8,300  
Specific allocations associated with taxi medallion, fair value $ 12,500   $ 12,500  
Number of loans   Eight loans were accruing prior to modification, while seven remained in accrual status post-modification.    
Commercial Real Estate Portfolio Segment [Member]        
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]        
Loans held-for-sale, Carrying Amount   $ 41,811   7,712
Commercial loans held-for-sale segment [Member]        
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]        
Loans held-for-sale, Carrying Amount   47,400   65,600
Loans held-for-sale net of valuation allowance   $ 15,300   $ 0
XML 60 R48.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Loans held-for-sale - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]    
Total carrying amount $ 89,386 $ 78,005
Commercial Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]    
Total carrying amount 47,430 70,105
Commercial Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]    
Total carrying amount 41,811 7,712
Residential Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]    
Total carrying amount $ 145 $ 188
XML 61 R49.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of Activity in the valuation allowance - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Schedule of accretable yield, or income expected to be collected [Abstract]        
Balance at beginning of period $ 12,325
Reduction from loans paid off (38) $ (38)
Increase in valuation allowance $ 3,000  
Balance at end of period    
XML 62 R50.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Composition of loan portfolio - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans $ 3,892,427 $ 3,479,441
Net deferred loan fees (3,138) (3,609)
Total loans receivable 3,889,289 3,475,832
Commercial Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 641,613 553,576
Commercial Real Estate Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 2,585,205 2,204,710
Commercial Construction Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 399,453 486,228
Residential Real Estate Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 264,244 232,547
Consumer Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans $ 1,912 $ 2,380
XML 63 R51.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Purchased Credit-Impaired Loans - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total carrying amount $ 5,475 $ 8,080
Commercial Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total carrying amount 5,243 7,098
Commercial Real Estate Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total carrying amount $ 232 $ 982
XML 64 R52.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of accretable yield, or income expected to be collected - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Schedule of accretable yield, or income expected to be collected [Abstract]        
Balance at beginning of period $ 2,496 $ 3,233 $ 2,860 $ 3,599
Accretion of income (180) (185) (544) (551)
Balance at end of period $ 2,316 $ 3,048 $ 2,316 $ 3,048
XML 65 R53.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Loans receivable on nonaccrual status - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status $ 13,755 $ 5,734
Commercial Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 951 1,460
Commercial Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 8,369 1,081
Residential Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status $ 4,435 $ 3,193
XML 66 R54.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Credit quality indicators - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]    
Gross loans $ 3,892,427 $ 3,479,441
Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 641,613 553,576
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 2,585,205 2,204,710
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 399,453 486,228
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 264,244 232,547
Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 1,912 2,380
Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 3,825,604 3,405,931
Pass [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 630,818 539,961
Pass [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 2,535,005 2,154,343
Pass [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 393,625 480,319
Pass [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 264,244 228,990
Pass [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 1,912 2,318
Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 37,996 37,816
Special Mention [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 3,882 3,255
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 30,875 31,173
Special Mention [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 3,239 3,388
Special Mention [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans
Special Mention [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans
Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 28,827 35,694
Substandard [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 6,913 10,360
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 19,325 19,194
Substandard [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 2,589 2,521
Substandard [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 3,557
Substandard [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans 62
Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans
Doubtful [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans
Doubtful [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans
Doubtful [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans
Doubtful [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Gross loans
XML 67 R55.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of analysis of impaired loans, by class - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Financing Receivable, Impaired [Line Items]          
No related allowance recorded, Recorded Investment $ 29,195   $ 29,195   $ 29,747
No related allowance recorded, Unpaid Principal Balance 29,491   29,491   30,377
Impaired loans with No Related Allowance Average Recorded Investment 29,264 $ 20,398 28,840 $ 16,784  
Impaired loans with No Related Allowance Interest Income Recognized 321 158 762 276  
Impaired loans With An Allowance Recorded Average Recorded Investment 1,645 91,546 1,654 102,577  
Impaired loans With An Allowance Recorded Interest Income Recognized 2 925 39 2,447  
Total, Recorded Investment 30,835   30,835   30,991
Total, Unpaid Principal Balance 31,543   31,543   31,621
Total, Related Allowance 110   110   145
Total Impaired Loans Average Recorded Investment 30,909 111,944 30,494 102,557  
Total Impaired Loans Interest Income Recognized 323 1,083 801 2,723  
Commercial Portfolio Segment [Member]          
Financing Receivable, Impaired [Line Items]          
No related allowance recorded, Recorded Investment 3,068   3,068   3,637
No related allowance recorded, Unpaid Principal Balance 3,073   3,073   4,063
Impaired loans with No Related Allowance Average Recorded Investment 3,100 6,704 3,149 4,317  
Impaired loans with No Related Allowance Interest Income Recognized 34 66 115 86  
Impaired loans With An Allowance Recorded Average Recorded Investment 91,393 85,620  
Impaired loans With An Allowance Recorded Interest Income Recognized 925 2,447  
Total, Recorded Investment 3,068   3,068   3,637
Total, Unpaid Principal Balance 3,073   3,073   4,063
Total, Related Allowance    
Total Impaired Loans Average Recorded Investment 3,100 98,097 3,149 89,937  
Total Impaired Loans Interest Income Recognized 34 991 115 2,533  
Commercial Real Estate Portfolio Segment [Member]          
Financing Receivable, Impaired [Line Items]          
No related allowance recorded, Recorded Investment 19,221   19,221   18,288
No related allowance recorded, Unpaid Principal Balance 19,283   19,283   18,288
Impaired loans with No Related Allowance Average Recorded Investment 19,302 9,129 18,813 8,167  
Impaired loans with No Related Allowance Interest Income Recognized 221 65 424 118  
With an allowance recorded, Recorded Investment 1,640   1,640   1,244
With an allowance recorded, Unpaid Principal Balance 2,052   2,052   1,245
With an allowance recorded, Related Allowance 110   110   145
Impaired loans With An Allowance Recorded Average Recorded Investment 1,645 153 1,654  
Impaired loans With An Allowance Recorded Interest Income Recognized 2 39  
Total, Recorded Investment 20,861   20,861   19,532
Total, Unpaid Principal Balance 21,335   21,335   19,532
Total, Related Allowance 110   110   145
Total Impaired Loans Average Recorded Investment 20,947 9,282 20,467 8,320  
Total Impaired Loans Interest Income Recognized 223 65 463 118  
Commercial Construction Portfolio Segment [Member]          
Financing Receivable, Impaired [Line Items]          
No related allowance recorded, Recorded Investment 4,340   4,340   5,909
No related allowance recorded, Unpaid Principal Balance 4,340   4,340   5,909
Impaired loans with No Related Allowance Average Recorded Investment 4,285 1,224 4,273 979  
Impaired loans with No Related Allowance Interest Income Recognized 63 21 215 54  
Total, Recorded Investment 4,340   4,340   5,909
Total, Unpaid Principal Balance 4,340   4,340   5,909
Total, Related Allowance    
Total Impaired Loans Average Recorded Investment 4,285 1,224 4,273 979  
Total Impaired Loans Interest Income Recognized 63 21 215 54  
Residential Real Estate Portfolio Segment [Member]          
Financing Receivable, Impaired [Line Items]          
No related allowance recorded, Recorded Investment 2,520   2,520   1,851
No related allowance recorded, Unpaid Principal Balance 2,749   2,749   2,055
Impaired loans with No Related Allowance Average Recorded Investment 2,529 3,271 2,551 3,247  
Impaired loans with No Related Allowance Interest Income Recognized 2 5 6 15  
Total, Recorded Investment 2,520   2,520   1,851
Total, Unpaid Principal Balance 2,749   2,749   2,055
Total, Related Allowance    
Total Impaired Loans Average Recorded Investment 2,259 3,271 2,551 3,247  
Total Impaired Loans Interest Income Recognized 2 5 6 15  
Consumer Portfolio Segment [Member]          
Financing Receivable, Impaired [Line Items]          
No related allowance recorded, Recorded Investment 46   46   62
No related allowance recorded, Unpaid Principal Balance 46   46   62
Impaired loans with No Related Allowance Average Recorded Investment 48 70 54 74  
Impaired loans with No Related Allowance Interest Income Recognized 1 1 2 3  
Total, Recorded Investment 46   46   62
Total, Unpaid Principal Balance 46   46   62
Total, Related Allowance    
Total Impaired Loans Average Recorded Investment 48 70 54 74  
Total Impaired Loans Interest Income Recognized $ 1 $ 1 $ 2 $ 3  
XML 68 R56.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Aging analysis - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual $ 13,755 $ 5,734
Total Past Due and Nonaccrual 28,555 20,551
Current 3,863,872 3,458,890
Gross Loans 3,892,427 3,479,441
Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 951 1,460
Total Past Due and Nonaccrual 5,647 6,583
Current 635,966 546,993
Gross Loans 641,613 553,576
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 8,369 1,081
Total Past Due and Nonaccrual 17,012 8,256
Current 2,568,193 2,196,454
Gross Loans 2,585,205 2,204,710
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual
Total Past Due and Nonaccrual
Current 399,453 486,228
Gross Loans 399,453 486,228
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 4,435 3,193
Total Past Due and Nonaccrual 5,894 5,712
Current 258,350 226,835
Gross Loans 264,244 232,547
Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual
Total Past Due and Nonaccrual 2
Current 1,910 2,380
Gross Loans 1,912 2,380
30 - 59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 1,703 7,534
30 - 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 199 475
30 - 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 586 4,928
30 - 59 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual
30 - 59 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 918 2,131
30 - 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual
60 - 89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 8,888 1,990
60 - 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 288 18
60 - 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 8,057 1,584
60 - 89 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual
60 - 89 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 541 388
60 - 89 Days Past Due [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 2
90 Days or Greater Past Due and Still Accruing [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 4,209 5,293
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 4,209 4,630
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual 663
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual
90 Days or Greater Past Due and Still Accruing [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual
90 Days or Greater Past Due and Still Accruing [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due and Nonaccrual
XML 69 R57.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Allowance for loan and lease losses - USD ($)
$ in Thousands
Sep. 30, 2017
Jun. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Dec. 31, 2015
ALLL            
ALLL, individually evaluated for impairment $ 110   $ 145      
ALLL, collectively evaluated for impairment 28,260   25,599      
ALLL, acquired portfolio 1,500        
ALLL, acquired with deteriorated credit quality        
Total ALLL 29,870 $ 28,401 25,744 $ 37,615 $ 32,763 $ 26,572
Gross loans            
Loans Receivable, individually evaluated for impairment 30,835   30,991      
Loans Receivable, collectively evaluated for impairment 3,356,822   2,783,922      
Loans Receivable, acquired portfolio 499,295   656,448      
Loans Receivables, acquired with deteriorated credit quality 5,475   8,080      
Total gross loans 3,892,427   3,479,441      
Commercial Portfolio Segment [Member]            
ALLL            
ALLL, individually evaluated for impairment        
ALLL, collectively evaluated for impairment 7,716   6,632      
ALLL, acquired portfolio        
ALLL, acquired with deteriorated credit quality        
Total ALLL 7,716 7,238 6,632 20,396 15,548 10,949
Gross loans            
Loans Receivable, individually evaluated for impairment 3,068   3,637      
Loans Receivable, collectively evaluated for impairment 618,012   517,869      
Loans Receivable, acquired portfolio 15,290   24,972      
Loans Receivables, acquired with deteriorated credit quality 5,243   7,098      
Total gross loans 641,613   553,576      
Commercial Real Estate Portfolio Segment [Member]            
ALLL            
ALLL, individually evaluated for impairment 110   145      
ALLL, collectively evaluated for impairment 15,224   12,438      
ALLL, acquired portfolio 1,500        
ALLL, acquired with deteriorated credit quality        
Total ALLL 16,834 15,389 12,583 11,375 11,371 10,926
Gross loans            
Loans Receivable, individually evaluated for impairment 20,861   19,532      
Loans Receivable, collectively evaluated for impairment 2,142,385   1,621,745      
Loans Receivable, acquired portfolio 421,727   562,451      
Loans Receivables, acquired with deteriorated credit quality 232   982      
Total gross loans 2,585,205   2,204,710      
Commercial Construction Portfolio Segment [Member]            
ALLL            
ALLL, individually evaluated for impairment        
ALLL, collectively evaluated for impairment 3,940   4,789      
ALLL, acquired portfolio        
ALLL, acquired with deteriorated credit quality        
Total ALLL 3,940 4,241 4,789 4,072 4,040 3,253
Gross loans            
Loans Receivable, individually evaluated for impairment 4,340   5,909      
Loans Receivable, collectively evaluated for impairment 395,113   478,865      
Loans Receivable, acquired portfolio   1,454      
Loans Receivables, acquired with deteriorated credit quality        
Total gross loans 399,453   486,228      
Residential Real Estate Portfolio Segment [Member]            
ALLL            
ALLL, individually evaluated for impairment        
ALLL, collectively evaluated for impairment 1,052   958      
ALLL, acquired portfolio        
ALLL, acquired with deteriorated credit quality        
Total ALLL 1,052 985 958 1,174 1,091 976
Gross loans            
Loans Receivable, individually evaluated for impairment 2,520   1,851      
Loans Receivable, collectively evaluated for impairment 199,902   163,686      
Loans Receivable, acquired portfolio 61,822   67,010      
Loans Receivables, acquired with deteriorated credit quality        
Total gross loans 264,244   232,547      
Consumer Portfolio Segment [Member]            
ALLL            
ALLL, individually evaluated for impairment        
ALLL, collectively evaluated for impairment 2   3      
ALLL, acquired portfolio        
ALLL, acquired with deteriorated credit quality        
Total ALLL 2 2 3 4 4 4
Gross loans            
Loans Receivable, individually evaluated for impairment 46   62      
Loans Receivable, collectively evaluated for impairment 1,410   1,757      
Loans Receivable, acquired portfolio 456   561      
Loans Receivables, acquired with deteriorated credit quality        
Total gross loans 1,912   2,380      
Unallocated [Member]            
ALLL            
ALLL, individually evaluated for impairment        
ALLL, collectively evaluated for impairment 326   779      
ALLL, acquired portfolio        
ALLL, acquired with deteriorated credit quality        
Total ALLL $ 326 $ 546 $ 779 $ 594 $ 709 $ 464
XML 70 R58.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of allowance for loan losses - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]        
Balance $ 28,401 $ 32,763 $ 25,744 $ 26,572
Charge-offs (1) (1,910) (83) (2,500)
Recoveries 20 12 209 43
Provision 1,450 6,750 4,000 13,500
Balance 29,870 37,615 29,870 37,615
Commercial Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Balance 7,238 15,548 6,632 10,949
Charge-offs (1,878) (2,396)
Recoveries 17 1 158 2
Provision 461 6,725 926 11,841
Balance 7,716 20,396 7,716 20,396
Commercial Real Estate Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Balance 15,389 11,371 12,583 10,926
Charge-offs (71)
Recoveries 2 10 50 35
Provision 1,443 (6) 4,272 414
Balance 16,834 11,375 16,834 11,375
Commercial Construction Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Balance 4,241 4,040 4,789 3,253
Charge-offs
Recoveries
Provision (301) 32 (849) 819
Balance 3,940 4,072 3,940 4,072
Residential Real Estate Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Balance 985 1,091 958 976
Charge-offs (27) (94)
Recoveries 3
Provision 67 110 94 289
Balance 1,052 1,174 1,052 1,174
Consumer Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Balance 2 4 3 4
Charge-offs (1) (5) (12) (10)
Recoveries 1 1 1 3
Provision 4 10 7
Balance 2 4 2 4
Unallocated [Member]        
Financing Receivable, Allowance for Credit Losses [Line Items]        
Balance 546 709 779 464
Charge-offs
Recoveries
Provision (220) (115) (453) 130
Balance $ 326 $ 594 $ 326 $ 594
XML 71 R59.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Loans by segment modified as troubled debt restructurings - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Recorded Investment [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Beginning balance $ 13,818 $ 86,629
Additions 5,668 26,325
Payoffs/paydowns (1,309) (2,616)
Transfers (580) (96,520)
Other
Ending balance 17,597 13,818
ALLL [Member]    
Financing Receivable, Allowance for Credit Losses [Line Items]    
Beginning balance 4,500
Additions 8,250
Payoffs/paydowns
Transfers
Other (12,750)
Ending balance
XML 72 R60.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and the Allowance for Loan Losses (Details) - Schedule of troubled debt restructuring by class
$ in Thousands
9 Months Ended
Sep. 30, 2017
USD ($)
Integer
Troubled Debt Restructuring, Debtor, Current Period [Line Items]  
Number of Loans | Integer 18
Pre-Modification Outstanding Recorded Investment $ 19,892
Post-Modification Outstanding Recorded Investment $ 19,892
Commercial Portfolio Segment [Member]  
Troubled Debt Restructuring, Debtor, Current Period [Line Items]  
Number of Loans | Integer 16
Pre-Modification Outstanding Recorded Investment $ 19,311
Post-Modification Outstanding Recorded Investment $ 19,311
Commercial Real Estate Portfolio Segment [Member]  
Troubled Debt Restructuring, Debtor, Current Period [Line Items]  
Number of Loans | Integer 2
Pre-Modification Outstanding Recorded Investment $ 581
Post-Modification Outstanding Recorded Investment $ 581
Commercial Construction Portfolio Segment [Member]  
Troubled Debt Restructuring, Debtor, Current Period [Line Items]  
Number of Loans | Integer
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Residential Real Estate Portfolio Segment [Member]  
Troubled Debt Restructuring, Debtor, Current Period [Line Items]  
Number of Loans | Integer
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Consumer Portfolio Segment [Member]  
Troubled Debt Restructuring, Debtor, Current Period [Line Items]  
Number of Loans | Integer
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
XML 73 R61.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Impaired Financing Receivable, Related Allowance $ 110 $ 145
Loans held-for-sale requiring valuation allowance, gross carrying amount 62,700 65,600
Loans held-for-sale requiring valuation allowance, amount of allowance 15,300
Impaired Loans [Member]    
Impaired Financing Receivable, with Related Allowance, Recorded Investment 1,300 1,200
Impaired Financing Receivable, Related Allowance $ 100 $ 100
XML 74 R62.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a recurring basis - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Assets    
Securities: Available-for-sale, Fair Value $ 400,516 $ 353,290
Derivatives 164 88
Assets: Available-for-sale, Fair Value 400,680 353,378
Federal Agency Obligations [Member]    
Assets    
Securities: Available-for-sale, Fair Value 55,938 52,837
Residential mortgage pass-through securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 133,164 72,497
Commercial mortgage pass-through securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 4,130 4,209
Obligations of U.S. states and political subdivisions [Member]    
Assets    
Securities: Available-for-sale, Fair Value 144,976 150,605
Trust Preferred Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 4,627 5,666
Corporate Bonds And Notes [Member]    
Assets    
Securities: Available-for-sale, Fair Value 30,088 36,928
Asset-backed Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 12,633 14,583
Certificates of Deposit [Member]    
Assets    
Securities: Available-for-sale, Fair Value 627 983
Equity Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 630 568
Other Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 13,703 14,414
Fair Value, Inputs, Level 1 [Member]    
Assets    
Securities: Available-for-sale, Fair Value 14,333 14,982
Derivatives
Assets: Available-for-sale, Fair Value 14,333 14,982
Fair Value, Inputs, Level 1 [Member] | Federal Agency Obligations [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Residential mortgage pass-through securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Commercial mortgage pass-through securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Obligations of U.S. states and political subdivisions [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Trust Preferred Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds And Notes [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Asset-backed Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 630 568
Fair Value, Inputs, Level 1 [Member] | Other Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 13,703 14,414
Fair Value, Inputs, Level 1 [Member] | Certificate Of Deposit [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 2 [Member]    
Assets    
Securities: Available-for-sale, Fair Value 368,318 320,090
Derivatives 164 88
Assets: Available-for-sale, Fair Value 368,482 320,178
Fair Value, Inputs, Level 2 [Member] | Federal Agency Obligations [Member]    
Assets    
Securities: Available-for-sale, Fair Value 55,938 52,837
Fair Value, Inputs, Level 2 [Member] | Residential mortgage pass-through securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 133,164 72,497
Fair Value, Inputs, Level 2 [Member] | Commercial mortgage pass-through securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 4,130 4,209
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. states and political subdivisions [Member]    
Assets    
Securities: Available-for-sale, Fair Value 127,111 132,387
Fair Value, Inputs, Level 2 [Member] | Trust Preferred Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 4,627 5,666
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds And Notes [Member]    
Assets    
Securities: Available-for-sale, Fair Value 30,088 36,928
Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value 12,633 14,583
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 2 [Member] | Other Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 2 [Member] | Certificate Of Deposit [Member]    
Assets    
Securities: Available-for-sale, Fair Value 627 983
Fair Value, Inputs, Level 3 [Member]    
Assets    
Securities: Available-for-sale, Fair Value 17,685 18,218
Derivatives
Assets: Available-for-sale, Fair Value 17,685 18,218
Fair Value, Inputs, Level 3 [Member] | Federal Agency Obligations [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Residential mortgage pass-through securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Commercial mortgage pass-through securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. states and political subdivisions [Member]    
Assets    
Securities: Available-for-sale, Fair Value 17,865 18,218
Fair Value, Inputs, Level 3 [Member] | Trust Preferred Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds And Notes [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Asset-backed Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Other Securities [Member]    
Assets    
Securities: Available-for-sale, Fair Value
Fair Value, Inputs, Level 3 [Member] | Certificate Of Deposit [Member]    
Assets    
Securities: Available-for-sale, Fair Value
XML 75 R63.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Assets at Fair Value on Non-Recurring - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Loans held-for-sale [Member] | Commercial [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis $ 47,430 $ 70,105
Loans held-for-sale [Member] | Commercial Real Estate [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis   7,712
Impaired Loans [Member] | Commercial Real Estate [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis 1,198 1,099
Fair Value, Inputs, Level 1 [Member] | Loans held-for-sale [Member] | Commercial [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis 47,430
Fair Value, Inputs, Level 1 [Member] | Loans held-for-sale [Member] | Commercial Real Estate [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis  
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | Commercial Real Estate [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis 1,198
Fair Value, Inputs, Level 2 [Member] | Loans held-for-sale [Member] | Commercial [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis 4,509
Fair Value, Inputs, Level 2 [Member] | Loans held-for-sale [Member] | Commercial Real Estate [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis   7,712
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | Commercial Real Estate [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis
Fair Value, Inputs, Level 3 [Member] | Loans held-for-sale [Member] | Commercial [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis 65,596
Fair Value, Inputs, Level 3 [Member] | Loans held-for-sale [Member] | Commercial Real Estate [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis  
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Commercial Real Estate [Member]    
Assets measured at fair value on a nonrecurring basis:    
Assets measured at fair value on a nonrecurring basis $ 1,099
XML 76 R64.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value recurring basis - Municipal Securities [Member] - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Balance of recurring Level 3 assets $ 18,218
Other [1]   18,335
Principal paydowns (353) (117)
Balance of recurring Level 3 assets $ 17,865 $ 18,218
[1] Includes transfers from held-to-maturity to available-for-sale designation
XML 77 R65.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value no recurring item basis - Municipal Securities [Member] - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Fair value $ 17,865 $ 18,218
Valuation Techniques
Discounted Cash Flows
Discounted Cash Flows
Unobservable Input
 Discount Rate
 Discount Rate
Range 2.80% 2.80%
XML 78 R66.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a non-recurring basis - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Impaired Loans [Member] | Commercial Real Estate [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Fair Value $ 1,198 $ 1,099
Valuation Technique Appraisals of collateral value Appraisals of collateral value
Unobservable Inputs Comparable sales Comparable sales
Impaired Loans [Member] | Commercial Real Estate [Member] | Appraisals of collateral value [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate 6.00% 6.00%
Impaired Loans [Member] | Commercial Real Estate [Member] | Appraisals of collateral value [Member] | Minimum [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate 0.00% 0.00%
Impaired Loans [Member] | Commercial Real Estate [Member] | Appraisals of collateral value [Member] | Maximum [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Capitalization rate 15.00% 15.00%
Loans held-for-sale [Member] | Market approach [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Valuation Technique Market approach (70%) Market approach (70%)
Unobservable Inputs Indications under securitized transactions expressed as a price to unpaid principal balance Indications under securitized transactions expressed as a price to unpaid principal balance
Loans held-for-sale [Member] | Commercial Real Estate [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Fair Value   $ 7,712
Loans held-for-sale [Member] | Commercial taxi medallion loans [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Fair Value $ 47,430 $ 65,596
Valuation Technique Discounted cash flows (30%) Discounted cash flows (30%)
Purchase amount per medallion $ 46 $ 59
Discount Range 14.00% 14.00%
Loans held-for-sale [Member] | Commercial taxi medallion loans [Member] | Minimum [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Purchase amount per medallion $ 37 $ 40
Loans held-for-sale [Member] | Commercial taxi medallion loans [Member] | Maximum [Member]    
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items]    
Purchase amount per medallion $ 100 $ 100
XML 79 R67.htm IDEA: XBRL DOCUMENT v3.8.0.1
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Cash and due from banks, Carrying Amount $ 141,262 $ 200,399 $ 233,794 $ 200,895
Cash and due from banks, Fair Value 141,262 200,399    
Securities available-for-sale, Carrying Amount 400,516 353,290    
Securities available-for-sale, Fair Value 400,516 353,290    
Restricted investment in bank stocks, Carrying Amount 29,672 24,310    
Loans held-for-sale, Carrying Amount 89,386 78,005    
Loans held-for-sale, Fair Value 89,386 78,005    
Net loans, Carrying Amount 3,859,419 3,450,088    
Net loans, Fair Value 3,862,104 3,462,138    
Derivatives, Carrying Amount 164 88    
Derivatives, Fair Value 164 88    
Accrued interest receivable, Carrying Amount 14,841 12,965    
Accrued interest receivable, Fair Value 14,841 12,965    
Noninterest-bearing deposits, Carrying Amount 719,582 694,977    
Noninterest-bearing deposits, Fair Value 719,582 694,977    
Interest-bearing deposits, Carrying Amount 2,904,187 2,649,294    
Interest-bearing deposits, Fair Value 2,904,285 2,649,717    
Borrowings, Carrying Amount 585,124 476,280    
Borrowings, Fair Value 586,474 478,286    
Subordinated debentures, net 54,657 54,534    
Subordinated debentures, Fair Value 56,519 55,901    
Accrued interest payable, Carrying Amount 4,304 4,142    
Accrued interest payable, Fair Value 4,304 4,142    
Fair Value, Inputs, Level 1 [Member]        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Cash and due from banks, Fair Value 141,262 200,399    
Securities available-for-sale, Fair Value 14,333 14,982    
Loans held-for-sale, Fair Value    
Net loans, Fair Value    
Derivatives, Carrying Amount    
Derivatives, Fair Value    
Accrued interest receivable, Fair Value    
Noninterest-bearing deposits, Fair Value 719,582 694,977    
Interest-bearing deposits, Fair Value 1,825,846 1,681,044    
Borrowings, Fair Value    
Subordinated debentures, Fair Value    
Accrued interest payable, Fair Value    
Fair Value, Inputs, Level 2 [Member]        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Cash and due from banks, Fair Value    
Securities available-for-sale, Fair Value 368,318 320,090    
Loans held-for-sale, Fair Value 41,956 12,409    
Net loans, Fair Value    
Derivatives, Carrying Amount 164 88    
Derivatives, Fair Value 164 88    
Accrued interest receivable, Fair Value 2,011 2,026    
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value 1,078,439 968,673    
Borrowings, Fair Value 586,474 478,286    
Subordinated debentures, Fair Value 56,519 55,901    
Accrued interest payable, Fair Value 4,304 4,142    
Fair Value, Inputs, Level 3 [Member]        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Cash and due from banks, Fair Value    
Securities available-for-sale, Fair Value 17,685 18,218    
Loans held-for-sale, Fair Value 47,430 65,596    
Net loans, Fair Value 3,862,104 3,462,138    
Derivatives, Carrying Amount    
Derivatives, Fair Value    
Accrued interest receivable, Fair Value 12,830 10,939    
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value    
Borrowings, Fair Value    
Subordinated debentures, Fair Value    
Accrued interest payable, Fair Value    
XML 80 R68.htm IDEA: XBRL DOCUMENT v3.8.0.1
Other Comprehensive Income (Loss) (Details) - Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items]        
Sale of securities available-for-sale Net gains on sale of securities available for sale $ 415 $ (523) $ 1,332 $ 1,551
Sale of securities available-for-sale Income tax expense (165) 187 (525) (634)
Total reclassification 382 5,045 17 5,333
Amounts Reclassified from Accumulated Other Comprehensive Income/(Loss) [Member]        
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items]        
Sale of securities available-for-sale Net gains on sale of securities available for sale 4,131 1,596 4,234
Sale of securities available-for-sale Income tax expense (1,640) (579) (1,682)
Sale of securities available-for-sale 2,491 1,017 2,552
Amortization of pension plan net actuarial losses Salaries and employee benefits (103) (204) (309) (306)
Amortization of pension plan net actuarial losses Income tax benefit 42 83 126 124
Amortization of pension plan net actuarial losses (61) (121) (183) (182)
Total reclassification $ (61) $ 2,370 $ 834 $ 2,370
XML 81 R69.htm IDEA: XBRL DOCUMENT v3.8.0.1
Other Comprehensive Income (Loss) (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract]    
Securities available-for-sale $ 723 $ 933
Cash flow hedge 97 52
Defined benefit pension and post-retirement plans (3,649) (3,831)
Total accumulated other comprehensive loss $ (2,829) $ (2,846)
XML 82 R70.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Award expiration Period   10 years  
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period   3 years  
Unrecognized compensation cost related to nonvested shares $ 1,006 $ 1,006  
Weighted average period related to compesation cost   1 year 3 months 19 days  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 347,521 347,521 358,367
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost (in Dollars) $ 0 $ 180  
Restricted Stock [Member]      
Unrecognized compensation cost related to nonvested shares $ 1,366 $ 1,366  
Weighted average period related to compesation cost   1 year  
Performance Shares [Member]      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number 151,194 151,194  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 226,791 226,791  
2017 Equity Compensation Plan [Member]      
Maximum number of shares of common stock or equivalents issued   750,000  
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) 750,000 750,000  
XML 83 R71.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation (Details) - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Outstanding Beginning Balance 358,367  
Granted  
Exercised 10,846 36,135
Forfeited/cancelled/expired  
Outstanding Ending Balance 347,521  
Exercisable Ending Balance 343,991  
Outstanding Beginning Balance, Weighted-Average Exercise Price $ 6.26  
Granted, Weighted-Average Exercise Price  
Exercised, Weighted-Average Exercise Price 10.89  
Forfeited/cancelled/expired, Weighted-Average Exercise Price  
Outstanding Ending Balance, Weighted-Average Exercise Price 6.11  
Exercisable Ending Balance, Weighted-Average Exercise Price $ 6.03  
Outstanding Ending Balance - Weighted-Average Remaining Contractual Term (In Years) 1 year 10 months 25 days  
Exercisable Ending Balance - Weighted-Average Remaining Contractual Term (In Years) 1 year 10 months 10 days  
Outstanding Ending Balance - Aggregate Intrinsic Value $ 6,425,663  
Exercisable Ending Balance - Aggregate Intrinsic Value $ 6,387,912  
XML 84 R72.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation (Details) - Schedule of Share-based Payment Award, Nonvested Shares
9 Months Ended
Sep. 30, 2017
$ / shares
shares
Granted
Nonvested [Member]  
Outstanding, beginning balance 111,273
Granted 57,164
Vested (65,359)
Forfeited/cancelled/expired
Outstanding, ending balance 103,078
Outstanding, beginning balance | $ / shares $ 16.81
Granted | $ / shares 23.82
Vested | $ / shares 16.49
Forfeited/cancelled/expired | $ / shares
Outstanding, ending balance | $ / shares $ 20.41
XML 85 R73.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares
9 Months Ended
Sep. 30, 2017
$ / shares
shares
Outstanding Beginning Balance 358,367
Awarded
Outstanding Ending Balance 347,521
Maximum [Member]  
Outstanding Beginning Balance 189,455
Awarded 37,336
Forfeited
Adjustments
Outstanding Ending Balance 226,791
Unearned [Member]  
Outstanding Beginning Balance 151,572
Awarded 24,891
Forfeited
Adjustments (25,269)
Outstanding Ending Balance 151,194
Outstanding, beginning balance | $ / shares $ 18.47
Awarded | $ / shares 22.75
Forfeited | $ / shares
Adjustments | $ / shares 18.47
Outstanding, ending balance | $ / shares $ 19.19
XML 86 R74.htm IDEA: XBRL DOCUMENT v3.8.0.1
Components of Net Periodic Pension Cost (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Average daily balance during the year        
Interest cost $ 119 $ 129 $ 358 $ 386
Expected return on plan assets (160) (166) (480) (457)
Net amortization 103 101 309 305
Recognized settlement loss 2
Net periodic pension cost 62 64 189 234
Amortization of actuarial loss (103) (204) (309) (306)
Total recognized in other comprehensive income (103) (204) (309) (306)
Total recognized in net expense and OCI (before tax) $ (41) $ (140) $ (120) $ (72)
XML 87 R75.htm IDEA: XBRL DOCUMENT v3.8.0.1
FHLB Borrowings (Details)
$ in Millions
9 Months Ended
Sep. 30, 2017
USD ($)
Integer
Number of Federal Home Loan Bank Notes | Integer 3
Long-term Line of Credit $ 1,400.0
Line of Credit Facility, Remaining Borrowing Capacity 796.0
Federal Home Loan Bank Note One [Member]  
Extinguishment of Debt, Amount $ 2.5
Debt Instrument, Maturity Date Apr. 02, 2018
Federal Home Loan Bank Note Two [Member]  
Extinguishment of Debt, Amount $ 7.5
Debt Instrument, Maturity Date Apr. 02, 2018
Federal Home Loan Bank Note Three [Member]  
Extinguishment of Debt, Amount $ 5.0
Debt Instrument, Maturity Date Jul. 16, 2018
XML 88 R76.htm IDEA: XBRL DOCUMENT v3.8.0.1
FHLB Borrowings (Details) - Schedule of components of FHLB borrowings and weighted average interest rates - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
By type of borrowing:    
FHLB borrowings (in Dollars) $ 585,124 $ 461,280
Weighted average interest rates 1.61% 1.55%
By remaining period to maturity:    
Less than 1 year (in Dollars) $ 415,124 $ 231,280
Less than 1 year 1.41% 1.02%
1 year through less than 2 years (in Dollars) $ 105,000 $ 130,000
1 year through less than 2 years 1.69% 1.84%
2 years through less than 3 years (in Dollars) $ 25,000 $ 35,000
2 years through less than 3 years 1.85% 1.60%
3 years through less than 4 years (in Dollars) $ 40,000 $ 65,000
3 years through less than 4 years 3.43% 2.82%
4 years through 5 years (in Dollars)
4 years through 5 years
XML 89 R77.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Sold under Agreements to Repurchase (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Jun. 15, 2017
Dec. 31, 2016
Outstanding repurchase agreement   $ 15,000  
Securities carrying amount $ 0   $ 16,800
Minimum [Member]      
Percentage by which fair value of pledged securities must meet or exceed gross outstanding balance 8.00%    
XML 90 R78.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Sold under Agreements to Repurchase (Details) - Schedule of repurchase agreements - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Securities Sold under Agreements to Repurchase [Abstract]      
Average daily balance during the year-to-date $ 9,065 $ 15,000 $ 15,000
Average interest rate during the year-to-date 5.95% 5.95% 5.95%
Maximum month end balance during the year-to-date $ 15,000 $ 15,000 $ 15,000
Weighted average interest rate during the year-to-date 5.95% 5.95% 5.95%
XML 91 R79.htm IDEA: XBRL DOCUMENT v3.8.0.1
Securities Sold under Agreements to Repurchase (Details) - Schedule of remaining contractual maturity
$ in Thousands
Dec. 31, 2016
USD ($)
Total Borrowings $ 16,826
Amounts related to agreements not included in offsetting disclosure in Note 14: 1,826
Residential mortgage pass-through securities [Member]  
Total Borrowings 16,826
U.S. Treasury and agency securities [Member]  
Total Borrowings
30 - 90 Days [Member]  
Total Borrowings
30 - 90 Days [Member] | Residential mortgage pass-through securities [Member]  
Total Borrowings
30 - 90 Days [Member] | U.S. Treasury and agency securities [Member]  
Total Borrowings
Greater Than 90 Days[Member]  
Total Borrowings 16,826
Greater Than 90 Days[Member] | Residential mortgage pass-through securities [Member]  
Total Borrowings 16,826
Greater Than 90 Days[Member] | U.S. Treasury and agency securities [Member]  
Total Borrowings
Upto 30 Days [Member]  
Total Borrowings
Upto 30 Days [Member] | Residential mortgage pass-through securities [Member]  
Total Borrowings
Upto 30 Days [Member] | U.S. Treasury and agency securities [Member]  
Total Borrowings
Overnight and Continuous [Member]  
Total Borrowings
Overnight and Continuous [Member] | Residential mortgage pass-through securities [Member]  
Total Borrowings
Overnight and Continuous [Member] | U.S. Treasury and agency securities [Member]  
Total Borrowings
XML 92 R80.htm IDEA: XBRL DOCUMENT v3.8.0.1
Subordinated Debentures (Details) - USD ($)
$ in Thousands
1 Months Ended 9 Months Ended
Jun. 30, 2015
Sep. 30, 2017
Fixed-to-floating Rate Subordinated Notes [Member]    
Subordinated Debentures (Details) [Line Items]    
Proceeds from Issuance of Debt $ 50,000  
Debt Instrument, Term 5 years  
Debt Instrument, Maturity Date Jul. 01, 2025  
Debt Instrument, Interest Rate, Stated Percentage 5.75%  
Debt Instrument, Description of Variable Rate Basis three month LIBOR rate plus 393 basis points  
Debt Issuance Cost   $ 498
Subordinated Debt from Trust [Member]    
Subordinated Debentures (Details) [Line Items]    
Value of subordinated debentures received by Trust   $ 5,000
Percentage Rate Added to Libor   2.85%
Floating interest rate on subordinated debentures   4.16%
Proceeds from Issuance of Debt   $ 5,200
Debt Instrument, Maturity Date   Jan. 23, 2034
XML 93 R81.htm IDEA: XBRL DOCUMENT v3.8.0.1
Subordinated Debentures (Details) - Schedule of Subordinated Borrowing - USD ($)
$ in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Schedule of Subordinated Borrowing [Abstract]    
Issuance Date Dec. 19, 2003 Dec. 19, 2003
Securities Issued $ 5,000 $ 5,000
Liquidation Value $1,000 per Capital Security $1,000 per Capital Security
Coupon Rate Floating 3-month LIBOR + 285 Basis Points Floating 3-month LIBOR + 285 Basis Points
Maturity Jan. 23, 2034 Jan. 23, 2034
Redeemable by Issuer Beginning Jan. 23, 2009 Jan. 23, 2009
XML 94 R82.htm IDEA: XBRL DOCUMENT v3.8.0.1
Offsetting Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Interest Rate Swap [Member]    
Gross Amounts Recognized, Assets $ 164 $ 88
Gross Amounts Offset in the Statement of Financial Position, Assets
Net Amounts of Assets Presented in the Statement of Financial Position, Assets 164 88
Financial Instruments Recognized, Assets
Cash or Financial Instrument Collateral, Assets
Net Amount, Assets 164 88
Repurchase Agreements [Member]    
Gross Amounts Recognized, Liabilities 15,000
Gross Amounts Offset in the Statement of Financial Position, Liabilities
Net Amounts of Assets Presented in the Statement of Financial Position, Liabilities 15,000
Financial Instruments Recognized, Liabilities
Cash or Financial Instrument Collateral, Liabilities 15,000
Net Amount, Liabilities
XML 95 R83.htm IDEA: XBRL DOCUMENT v3.8.0.1
Subsequent Event (Details) - Subsequent Event [Member]
$ in Millions
Nov. 02, 2017
USD ($)
Subsequent Event [Line Items]  
Value of loans held-for-sale, subsequently returned to loans held-for-investment portfolio $ 47.4
Valuation allowance of loans held-for-sale, subsequently returned to loans held-for-investment portfolio 15.3
Estimated pretax charge for transfer of loans returned to held-for-investment portfolio $ 0.5
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