West Virginia | 55-0619957 |
(State or Other Jurisdiction of | (I.R.S. Employer |
Incorporation or Organization) | Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b)) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c)) |
City Holding Company | |
By: | /s/ David L. Bumgarner |
David L. Bumgarner | |
Chief Financial Officer |
Three Months Ended September 30, | Percent | ||||||
2015 | 2014 | Change | |||||
Earnings ($000s, except per share data): | |||||||
Net Interest Income (FTE) | $ | 28,005 | $ | 29,622 | (5.46)% | ||
Net Income available to common shareholders | 10,607 | 11,872 | (10.66)% | ||||
Earnings per Basic Share | 0.69 | 0.76 | (9.63)% | ||||
Earnings per Diluted Share | 0.69 | 0.76 | (9.27)% | ||||
Key Ratios (percent): | |||||||
Return on Average Assets | 1.21 | % | 1.40 | % | (14.04)% | ||
Return on Average Tangible Equity | 12.19 | % | 14.65 | % | (16.79)% | ||
Net Interest Margin | 3.62 | % | 3.95 | % | (8.49)% | ||
Efficiency Ratio | 57.26 | % | 54.74 | % | 4.61% | ||
Average Shareholders' Equity to Average Assets | 11.90 | % | 11.78 | % | 1.05% | ||
Consolidated Risk Based Capital Ratios (a): | |||||||
CET I | 14.42 | % | * | N/A | |||
Tier I | 15.08 | % | 13.36 | % | 12.87% | ||
Total | 15.95 | % | 14.21 | % | 12.24% | ||
Tangible Equity to Tangible Assets | 10.14 | % | 9.58 | % | 5.80% | ||
Common Stock Data: | |||||||
Cash Dividends Declared per Share | $ | 0.42 | $ | 0.40 | 5.00% | ||
Book Value per Share | 27.34 | 25.52 | 7.11% | ||||
Tangible Book Value per Share | 22.72 | 20.67 | 9.93% | ||||
Market Value per Share: | |||||||
High | 51.73 | 46.44 | 11.39% | ||||
Low | 45.56 | 41.2 | 10.58% | ||||
End of Period | 49.30 | 42.13 | 17.02% | ||||
Price/Earnings Ratio (b) | 17.84 | 13.78 | 29.49% | ||||
Nine Months Ended September 30, | Percent | ||||||
2015 | 2014 | Change | |||||
Earnings ($000s, except per share data): | |||||||
Net Interest Income (FTE) | $ | 86,464 | $ | 88,817 | (2.65)% | ||
Net Income available to common shareholders | 40,582 | 38,432 | 5.59% | ||||
Earnings per Basic Share | 2.66 | 2.45 | 8.29% | ||||
Earnings per Diluted Share | 2.65 | 2.44 | 8.73% | ||||
Key Ratios (percent): | |||||||
Return on Average Assets | 1.53 | % | 1.51 | % | 1.21% | ||
Return on Average Tangible Equity | 15.87 | % | 15.90 | % | (0.21)% | ||
Net Interest Margin | 3.81 | % | 4.02 | % | (5.23)% | ||
Efficiency Ratio (c) | 55.43 | % | 54.24 | % | 2.19% | ||
Average Shareholders' Equity to Average Assets | 11.64 | % | 11.71 | % | (0.57)% | ||
Common Stock Data: | |||||||
Cash Dividends Declared per Share | 1.26 | 1.20 | 5.00% | ||||
Market Value per Share: | |||||||
High | 51.73 | 46.69 | 10.79% | ||||
Low | 41.76 | 41.20 | 1.36% | ||||
Price/Earnings Ratio (b) | 13.92 | 12.89 | 8.06% | ||||
(a) September 30, 2015 risk-based capital ratios are estimated. | |||||||
(b) September 30, 2015 price/earnings ratio computed based on annualized third quarter 2015 earnings. | |||||||
(c) The September 30, 2015 YTD efficiency ratio calculation excludes the gain on sale of insurance division. | |||||||
(*) Basel III CET 1 ratio requirements are effective beginning January 1, 2015 and are not required for prior periods. |
Book Value and Market Price Range per Share | ||||||||||||||||||
Market Price | ||||||||||||||||||
Book Value per Share | Range per Share | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Low | High | |||||||||||||
2011 | $ | 20.39 | $ | 20.58 | $ | 20.86 | $ | 21.05 | $ | 26.06 | $ | 37.22 | ||||||
2012 | 21.46 | 21.63 | 22.14 | 22.47 | 30.96 | 37.16 | ||||||||||||
2013 | 23.36 | 23.52 | 24.03 | 24.61 | 36.07 | 49.21 | ||||||||||||
2014 | 25.05 | 25.45 | 25.52 | 25.85 | 41.20 | 46.95 | ||||||||||||
2015 | 26.63 | 26.92 | 27.34 | 45.56 | 51.73 | |||||||||||||
Earnings per Basic Share | ||||||||||||||||||
Quarter Ended | ||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Year-to-Date | ||||||||||||||
2011 | $ | 0.62 | $ | 0.65 | $ | 0.77 | $ | 0.65 | $ | 2.68 | ||||||||
2012 | 0.68 | 0.50 | 0.71 | 0.73 | 2.63 | |||||||||||||
2013 | 0.51 | 0.83 | 0.89 | 0.84 | 3.07 | |||||||||||||
2014 | 0.87 | 0.81 | 0.76 | 0.95 | 3.40 | |||||||||||||
2015 | 1.18 | 0.78 | 0.69 | 2.66 | ||||||||||||||
Earnings per Diluted Share | ||||||||||||||||||
Quarter Ended | ||||||||||||||||||
March 31 | June 30 | September 30 | December 31 | Year-to-Date | ||||||||||||||
2011 | $ | 0.62 | $ | 0.64 | $ | 0.76 | $ | 0.65 | $ | 2.67 | ||||||||
2012 | 0.67 | 0.50 | 0.71 | 0.73 | 2.61 | |||||||||||||
2013 | 0.51 | 0.82 | 0.88 | 0.83 | 3.04 | |||||||||||||
2014 | 0.86 | 0.80 | 0.76 | 0.95 | 3.38 | |||||||||||||
2015 | 1.17 | 0.78 | 0.69 | 2.65 | ||||||||||||||
Three Months Ended September 30, | |||||||
2015 | 2014 | ||||||
Interest Income | |||||||
Interest and fees on loans | $ | 27,875 | $ | 29,292 | |||
Interest on investment securities: | |||||||
Taxable | 2,621 | 2,864 | |||||
Tax-exempt | 272 | 282 | |||||
Total Interest Income | 30,768 | 32,438 | |||||
Interest Expense | |||||||
Interest on deposits | 2,686 | 2,730 | |||||
Interest on short-term borrowings | 69 | 86 | |||||
Interest on long-term debt | 155 | 152 | |||||
Total Interest Expense | 2,910 | 2,968 | |||||
Net Interest Income | 27,858 | 29,470 | |||||
Provision for loan losses | 451 | 1,872 | |||||
Net Interest Income After Provision for Loan Losses | 27,407 | 27,598 | |||||
Non-Interest Income | |||||||
Gains on sale of investment securities | — | 71 | |||||
Service charges | 6,907 | 6,934 | |||||
Bankcard revenue | 3,895 | 3,796 | |||||
Insurance commissions | — | 1,396 | |||||
Trust and investment management fee income | 1,176 | 1,103 | |||||
Bank owned life insurance | 929 | 771 | |||||
Gain on sale of insurance division | — | — | |||||
Other income | 799 | 538 | |||||
Total Non-Interest Income | 13,706 | 14,609 | |||||
Non-Interest Expense | |||||||
Salaries and employee benefits | 12,179 | 13,144 | |||||
Occupancy and equipment | 2,575 | 2,531 | |||||
Depreciation | 1,522 | 1,542 | |||||
FDIC insurance expense | 456 | 432 | |||||
Advertising | 777 | 799 | |||||
Bankcard expenses | 785 | 877 | |||||
Postage, delivery, and statement mailings | 523 | 557 | |||||
Office supplies | 384 | 405 | |||||
Legal and professional fees | 620 | 476 | |||||
Telecommunications | 418 | 510 | |||||
Repossessed asset losses, net of expenses | 492 | 31 | |||||
Merger related expenses | 175 | — | |||||
Other expenses | 4,471 | 3,021 | |||||
Total Non-Interest Expense | 25,377 | 24,325 | |||||
Income Before Income Taxes | 15,736 | 17,882 | |||||
Income tax expense | 5,129 | 6,010 | |||||
Net Income Available to Common Shareholders | $ | 10,607 | $ | 11,872 | |||
Distributed earnings allocated to common shareholders | $ | 6,362 | $ | 6,073 | |||
Undistributed earnings allocated to common shareholders | 4,125 | 5,673 | |||||
Net earnings allocated to common shareholders | $ | 10,487 | $ | 11,746 | |||
Average common shares outstanding | 15,178 | 15,363 | |||||
Effect of dilutive securities: | |||||||
Employee stock options and warrants | 20 | 82 | |||||
Shares for diluted earnings per share | 15,198 | 15,445 | |||||
Basic earnings per common share | $ | 0.69 | $ | 0.76 | |||
Diluted earnings per common share | $ | 0.69 | $ | 0.76 | |||
Dividends declared per common share | $ | 0.42 | $ | 0.40 | |||
Comprehensive Income | $ | 11,939 | $ | 11,460 |
Nine months ended September 30, | |||||||
2015 | 2014 | ||||||
Interest Income | |||||||
Interest and fees on loans | $ | 86,075 | $ | 87,647 | |||
Interest on investment securities: | |||||||
Taxable | 7,974 | 8,797 | |||||
Tax-exempt | 803 | 840 | |||||
Total Interest Income | 94,852 | 97,284 | |||||
Interest Expense | |||||||
Interest on deposits | 8,126 | 8,220 | |||||
Interest on short-term borrowings | 236 | 246 | |||||
Interest on long-term debt | 458 | 453 | |||||
Total Interest Expense | 8,820 | 8,919 | |||||
Net Interest Income | 86,032 | 88,365 | |||||
Provision for loan losses | 4,175 | 3,670 | |||||
Net Interest Income After Provision for Loan Losses | 81,857 | 84,695 | |||||
Non-Interest Income | |||||||
Gains on sale of investment securities | 2,130 | 972 | |||||
Service charges | 19,423 | 19,833 | |||||
Bankcard revenue | 11,971 | 11,319 | |||||
Insurance commissions | — | 4,740 | |||||
Trust and investment management fee income | 3,577 | 3,251 | |||||
Bank owned life insurance | 2,476 | 2,292 | |||||
Gain on sale of insurance division | 11,084 | — | |||||
Other income | 2,471 | 1,646 | |||||
Total Non-Interest Income | 53,132 | 44,053 | |||||
Non-Interest Expense | |||||||
Salaries and employee benefits | 36,551 | 39,260 | |||||
Occupancy and equipment | 7,694 | 7,541 | |||||
Depreciation | 4,549 | 4,553 | |||||
FDIC insurance expense | 1,351 | 1,199 | |||||
Advertising | 2,182 | 2,548 | |||||
Bankcard expenses | 2,485 | 2,607 | |||||
Postage, delivery, and statement mailings | 1,591 | 1,662 | |||||
Office supplies | 1,077 | 1,235 | |||||
Legal and professional fees | 1,729 | 1,497 | |||||
Telecommunications | 1,356 | 1,354 | |||||
Repossessed asset losses, net of expenses | 1,047 | 552 | |||||
Merger related expenses | 283 | — | |||||
Other expenses | 9,891 | 7,998 | |||||
Total Non-Interest Expense | 71,786 | 72,006 | |||||
Income Before Income Taxes | 63,203 | 56,742 | |||||
Income tax expense | 22,621 | 18,310 | |||||
Net Income Available to Common Shareholders | $ | 40,582 | $ | 38,432 | |||
Distributed earnings allocated to common shareholders | $ | 19,086 | $ | 18,220 | |||
Undistributed earnings allocated to common shareholders | 21,040 | 19,809 | |||||
Net earnings allocated to common shareholders | $ | 40,126 | $ | 38,029 | |||
Average common shares outstanding | 15,111 | 15,509 | |||||
Effect of dilutive securities: | |||||||
Employee stock options and warrants | 21 | 85 | |||||
Shares for diluted earnings per share | 15,132 | 15,594 | |||||
Basic earnings per common share | $ | 2.66 | $ | 2.45 | |||
Diluted earnings per common share | $ | 2.65 | $ | 2.44 | |||
Dividends declared per common share | $ | 1.26 | $ | 1.20 | |||
Comprehensive Income | $ | 41,181 | $ | 40,501 |
Three Months Ended | ||||||
September 30, 2015 | September 30, 2014 | |||||
Balance at July 1 | $ | 411,240 | $ | 397,231 | ||
Net income | 10,607 | 11,872 | ||||
Other comprehensive income: | ||||||
Change in unrealized (loss) gainon securities available-for-sale | 1,332 | (412 | ) | |||
Cash dividends declared ($0.42/share) and ($0.40/share), respectively | (6,435 | ) | (6,169 | ) | ||
Issuance of stock award shares, net | 370 | 321 | ||||
Exercise of 42,500 stock options | 1,653 | — | ||||
Purchase of 262,205 common shares of treasury | — | (11,170 | ) | |||
Balance at September 30 | $ | 418,767 | $ | 391,673 | ||
Nine Months Ended | ||||||
September 30, 2015 | September 30, 2014 | |||||
Balance at January 1 | $ | 390,853 | $ | 387,623 | ||
Net income | 40,582 | 38,432 | ||||
Other comprehensive income: | ||||||
Change in unrealized gain (loss) on securities available-for-sale | 599 | 2,069 | ||||
Cash dividends declared ($1.26/share) and ($1.20/share), respectively | (19,242 | ) | (18,681 | ) | ||
Issuance of stock award shares, net | 1,430 | 1,210 | ||||
Exercise of 71,750 stock options | 2,649 | — | ||||
Exercise of 19,000 stock options | — | 553 | ||||
Exercise of 61,796 warrants | 1,896 | — | ||||
Purchase of 456,856 common shares of treasury | — | (19,533 | ) | |||
Balance at September 30 | $ | 418,767 | $ | 391,673 |
Quarter Ended | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Interest income | $ | 30,768 | $ | 31,720 | $ | 32,364 | $ | 32,282 | $ | 32,438 | |||||
Taxable equivalent adjustment | 147 | 144 | 142 | 164 | 152 | ||||||||||
Interest income (FTE) | 30,915 | 31,864 | 32,506 | 32,446 | 32,590 | ||||||||||
Interest expense | 2,910 | 2,937 | 2,973 | 3,041 | 2,968 | ||||||||||
Net interest income | 28,005 | 28,927 | 29,533 | 29,405 | 29,622 | ||||||||||
Provision for loan losses | 451 | 2,836 | 888 | 384 | 1,872 | ||||||||||
Net interest income after provision | |||||||||||||||
for loan losses | 27,554 | 26,091 | 28,645 | 29,021 | 27,750 | ||||||||||
Noninterest income | 13,706 | 15,405 | 24,021 | 14,669 | 14,609 | ||||||||||
Noninterest expense | 25,377 | 23,244 | 23,165 | 23,035 | 24,325 | ||||||||||
Income before income taxes | 15,883 | 18,252 | 29,501 | 20,655 | 18,034 | ||||||||||
Income tax expense | 5,129 | 6,125 | 11,367 | 5,961 | 6,010 | ||||||||||
Taxable equivalent adjustment | 147 | 144 | 142 | 164 | 152 | ||||||||||
Net income | $ | 10,607 | $ | 11,983 | $ | 17,992 | $ | 14,530 | $ | 11,872 | |||||
Allocated to common shareholders: | |||||||||||||||
Distributed earnings | $ | 6,362 | $ | 6,344 | $ | 6,315 | $ | 5,996 | $ | 6,073 | |||||
Undistributed earnings | 4,125 | 5,505 | 11,468 | 8,378 | 5,673 | ||||||||||
Net earnings allocated to common shareholders | $ | 10,487 | $ | 11,849 | $ | 17,783 | $ | 14,374 | $ | 11,746 | |||||
Average common shares outstanding | 15,178 | 15,104 | 15,067 | 15,096 | 15,363 | ||||||||||
Effect of dilutive securities: | |||||||||||||||
Employee stock options and warrants | 20 | 23 | 82 | 86 | 82 | ||||||||||
Shares for diluted earnings per share | 15,198 | 15,127 | 15,149 | 15,182 | 15,445 | ||||||||||
Basic earnings per common share | $ | 0.69 | $ | 0.78 | $ | 1.18 | $ | 0.95 | $ | 0.76 | |||||
Diluted earnings per common share | 0.69 | 0.78 | 1.17 | 0.95 | 0.76 | ||||||||||
Cash dividends declared per share | 0.42 | 0.42 | 0.42 | 0.40 | 0.40 | ||||||||||
Net Interest Margin | 3.62 | % | 3.82 | % | 3.99 | % | 3.89 | % | 3.95 | % | |||||
Interest Income from Accretion Related to Fair | |||||||||||||||
Value Adjustments Recorded as a | |||||||||||||||
Result of Acquisition: | $ | 1,056 | $ | 1,607 | $ | 2,450 | $ | 1,307 | $ | 1,836 | |||||
Net Interest Margin (excluding accretion) | 3.48 | % | 3.60 | % | 3.66 | % | 3.71 | % | 3.71 | % |
Quarter Ended | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Non-Interest Income: | |||||||||||||||
Service charges | $ | 6,907 | $ | 6,589 | $ | 5,927 | $ | 6,750 | $ | 6,934 | |||||
Bankcard revenue | 3,895 | 4,002 | 4,074 | 3,744 | 3,796 | ||||||||||
Insurance commissions | — | — | — | 1,238 | 1,396 | ||||||||||
Trust and investment management fee income | 1,176 | 1,201 | 1,200 | 1,363 | 1,103 | ||||||||||
Bank owned life insurance | 929 | 783 | 764 | 778 | 771 | ||||||||||
Gain on sale of insurance division | — | — | 11,084 | — | — | ||||||||||
Other income | 799 | 714 | 958 | 612 | 538 | ||||||||||
Subtotal | 13,706 | 13,289 | 24,007 | 14,485 | 14,538 | ||||||||||
Gain (loss) on sale of investment securities | — | 2,116 | 14 | 184 | 71 | ||||||||||
Total Non-Interest Income | $ | 13,706 | $ | 15,405 | $ | 24,021 | $ | 14,669 | $ | 14,609 | |||||
Non-Interest Expense: | |||||||||||||||
Salaries and employee benefits | $ | 12,179 | $ | 12,193 | $ | 12,179 | $ | 12,489 | $ | 13,144 | |||||
Occupancy and equipment | 2,575 | 2,529 | 2,590 | 2,449 | 2,531 | ||||||||||
Depreciation | 1,522 | 1,516 | 1,511 | 1,534 | 1,542 | ||||||||||
FDIC insurance expense | 456 | 445 | 450 | 448 | 432 | ||||||||||
Advertising | 777 | 701 | 704 | 726 | 799 | ||||||||||
Bankcard expenses | 785 | 829 | 870 | 948 | 877 | ||||||||||
Postage, delivery and statement mailings | 523 | 507 | 561 | 549 | 557 | ||||||||||
Office supplies | 384 | 347 | 346 | 360 | 405 | ||||||||||
Legal and professional fees | 620 | 542 | 567 | 552 | 476 | ||||||||||
Telecommunications | 418 | 463 | 475 | 522 | 510 | ||||||||||
Repossessed asset (gains) losses, net of expenses | 492 | 335 | 220 | 27 | 31 | ||||||||||
Merger related expenses | 175 | 108 | — | — | — | ||||||||||
Other expenses | 4,471 | 2,729 | 2,692 | 2,431 | 3,021 | ||||||||||
Total Non-Interest Expense | $ | 25,377 | $ | 23,244 | $ | 23,165 | $ | 23,035 | $ | 24,325 | |||||
Employees (Full Time Equivalent) | 828 | 844 | 845 | 889 | 908 | ||||||||||
Branch Locations | 82 | 82 | 82 | 82 | 82 |
September 30, 2015 | December 31, 2014 | |||||
(Unaudited) | ||||||
Assets | ||||||
Cash and due from banks | $ | 109,627 | $ | 138,503 | ||
Interest-bearing deposits in depository institutions | 9,081 | 9,725 | ||||
Federal funds sold | — | — | ||||
Cash and cash equivalents | 118,708 | 148,228 | ||||
Investment securities available-for-sale, at fair value | 300,865 | 254,043 | ||||
Investment securities held-to-maturity, at amortized cost | 81,095 | 90,786 | ||||
Other securities | 9,926 | 9,857 | ||||
Total investment securities | 391,886 | 354,686 | ||||
Gross loans | 2,696,438 | 2,652,066 | ||||
Allowance for loan losses | (20,941 | ) | (20,150 | ) | ||
Net loans | 2,675,497 | 2,631,916 | ||||
Bank owned life insurance | 97,157 | 95,116 | ||||
Premises and equipment, net | 73,419 | 77,988 | ||||
Accrued interest receivable | 7,690 | 6,826 | ||||
Net deferred tax assets | 33,342 | 36,766 | ||||
Intangible assets | 70,653 | 74,198 | ||||
Other assets | 36,266 | 35,909 | ||||
Total Assets | $ | 3,504,618 | $ | 3,461,633 | ||
Liabilities | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 542,177 | $ | 545,465 | ||
Interest-bearing: | ||||||
Demand deposits | 647,792 | 639,932 | ||||
Savings deposits | 693,184 | 660,727 | ||||
Time deposits | 982,349 | 1,026,663 | ||||
Total deposits | 2,865,502 | 2,872,787 | ||||
Short-term borrowings | ||||||
Customer repurchase agreements | 147,036 | 134,931 | ||||
Long-term debt | 16,495 | 16,495 | ||||
Other liabilities | 56,818 | 46,567 | ||||
Total Liabilities | 3,085,851 | 3,070,780 | ||||
Stockholders' Equity | ||||||
Preferred stock, par value $25 per share: 500,000 shares authorized; none issued | — | — | ||||
Common stock, par value $2.50 per share: 50,000,000 shares authorized; | ||||||
18,499,282 shares issued at September 30, 2015 and December 31, 2014 | ||||||
less 3,179,832 and 3,345,590 shares in treasury, respectively | 46,249 | 46,249 | ||||
Capital surplus | 106,108 | 107,370 | ||||
Retained earnings | 383,551 | 362,211 | ||||
Cost of common stock in treasury | (113,581 | ) | (120,818 | ) | ||
Accumulated other comprehensive loss: | ||||||
Unrealized gain on securities available-for-sale | 1,789 | 1,190 | ||||
Underfunded pension liability | (5,349 | ) | (5,349 | ) | ||
Total Accumulated Other Comprehensive Loss | (3,560 | ) | (4,159 | ) | ||
Total Stockholders' Equity | 418,767 | 390,853 | ||||
Total Liabilities and Stockholders' Equity | $ | 3,504,618 | $ | 3,461,633 |
Credit-Related | ||||||||||||
Net Investment | ||||||||||||
Impairment | ||||||||||||
Losses Through | Unrealized | |||||||||||
Original Cost | September 30, 2015 | Gains (Losses) | Carrying Value | |||||||||
US Government Agencies | $ | 5 | — | $ | — | $ | 5 | |||||
Mortgage Backed Securities | 303,754 | — | 2,568 | 306,322 | ||||||||
Municipal Bonds | 42,254 | — | 448 | 42,702 | ||||||||
Pooled Bank Trust Preferreds | 18,381 | (16,571 | ) | 35 | 1,845 | |||||||
Single Issuer Bank Trust Preferreds, | ||||||||||||
Subdebt of Financial Institutions, and | ||||||||||||
Bank Holding Company Preferred Stocks | 27,541 | (15 | ) | (1,072 | ) | 26,454 | ||||||
Money Markets and Mutual Funds | 1,525 | — | 4 | 1,529 | ||||||||
Federal Reserve Bank and FHLB stock | 9,926 | — | — | 9,926 | ||||||||
Community Bank Equity Positions | 3,715 | (1,584 | ) | 972 | 3,103 | |||||||
Total Investments | $ | 407,101 | $ | (18,170 | ) | $ | 2,955 | $ | 391,886 |
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Residential real estate (1) | $ | 1,358,083 | $ | 1,325,453 | $ | 1,303,258 | $ | 1,294,576 | $ | 1,274,062 | |||||
Home equity - junior liens | 144,748 | 143,772 | 143,670 | 145,604 | 146,965 | ||||||||||
Commercial and industrial | 124,495 | 142,065 | 132,127 | 140,548 | 139,220 | ||||||||||
Commercial real estate (2) | 1,029,103 | 1,032,333 | 1,011,777 | 1,028,831 | 1,025,835 | ||||||||||
Consumer | 36,751 | 37,555 | 38,436 | 39,705 | 41,042 | ||||||||||
DDA overdrafts | 3,258 | 3,279 | 3,203 | 2,802 | 3,618 | ||||||||||
Gross Loans | $ | 2,696,438 | $ | 2,684,457 | $ | 2,632,471 | $ | 2,652,066 | $ | 2,630,742 | |||||
Construction loans included in: | |||||||||||||||
(1) - Residential real estate loans | $ | 14,765 | $ | 15,412 | $ | 17,459 | $ | 22,992 | $ | 22,426 | |||||
(2) - Commercial real estate loans | 11,970 | 4,043 | 30,554 | 28,652 | 24,875 |
Virginia Savings | Community | ||||||||||||||
Loan | Certificates of | Loan | Certificates of | ||||||||||||
Year Ended: | Accretion (a) | Deposits (a) | Accretion (a) | Deposits (a) | Total | ||||||||||
1Q 2015 | $ | 123 | $ | 129 | $ | 2,158 | $ | 40 | $ | 2,450 | |||||
2Q 2015 | 189 | 129 | 1,249 | 40 | 1,607 | ||||||||||
3Q 2015 | 245 | 129 | 642 | 40 | 1,056 | ||||||||||
Remainder 2015 | 88 | 129 | 588 | 40 | 845 | ||||||||||
2016 | 247 | 497 | 1,358 | 48 | 2,150 | ||||||||||
2017 | 130 | — | 1,015 | — | 1,145 | ||||||||||
a - 1Q, 2Q & 3Q 2015 amounts are based on actual results. Remainder 2015, 2016 and 2017 amounts are based on estimated amounts. |
Three Months Ended September 30, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||
Assets: | ||||||||||||||||
Loan portfolio (1): | ||||||||||||||||
Residential real estate (2) | $ | 1,482,445 | $ | 14,469 | 3.87 | % | $ | 1,400,072 | $ | 14,077 | 3.99 | % | ||||
Commercial, financial, and agriculture (2) | 1,156,264 | 12,174 | 4.18 | % | 1,155,269 | 13,733 | 4.72 | % | ||||||||
Installment loans to individuals (2), (3) | 40,720 | 875 | 8.53 | % | 44,801 | 995 | 8.81 | % | ||||||||
Previously securitized loans (4) | *** | 357 | *** | *** | 487 | *** | ||||||||||
Total loans | 2,679,429 | 27,875 | 4.13 | % | 2,600,142 | 29,292 | 4.47 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 352,567 | 2,621 | 2.95 | % | 335,760 | 2,864 | 3.38 | % | ||||||||
Tax-exempt (5) | 29,675 | 419 | 5.60 | % | 28,199 | 434 | 6.11 | % | ||||||||
Total securities | 382,242 | 3,040 | 3.16 | % | 363,959 | 3,298 | 3.60 | % | ||||||||
Deposits in depository institutions | 9,924 | — | — | % | 8,924 | — | — | % | ||||||||
Total interest-earning assets | 3,071,595 | 30,915 | 3.99 | % | 2,973,025 | 32,590 | 4.35 | % | ||||||||
Cash and due from banks | 156,575 | 107,550 | ||||||||||||||
Bank premises and equipment | 74,543 | 79,865 | ||||||||||||||
Other assets | 237,803 | 246,357 | ||||||||||||||
Less: Allowance for loan losses | (21,425 | ) | (20,893 | ) | ||||||||||||
Total assets | $ | 3,519,091 | $ | 3,385,904 | ||||||||||||
Liabilities: | ||||||||||||||||
Interest-bearing demand deposits | 644,375 | 122 | 0.08 | % | 615,830 | 138 | 0.09 | % | ||||||||
Savings deposits | 691,600 | 165 | 0.09 | % | 633,690 | 192 | 0.12 | % | ||||||||
Time deposits (2) | 989,149 | 2,399 | 0.96 | % | 1,036,370 | 2,400 | 0.92 | % | ||||||||
Short-term borrowings | 135,274 | 69 | 0.20 | % | 132,484 | 86 | 0.26 | % | ||||||||
Long-term debt | 16,495 | 155 | 3.73 | % | 16,495 | 152 | 3.66 | % | ||||||||
Total interest-bearing liabilities | 2,476,893 | 2,910 | 0.47 | % | 2,434,869 | 2,968 | 0.48 | % | ||||||||
Noninterest-bearing demand deposits | 594,821 | 522,083 | ||||||||||||||
Other liabilities | 28,583 | 30,188 | ||||||||||||||
Stockholders' equity | 418,794 | 398,764 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 3,519,091 | $ | 3,385,904 | ||||||||||||
Net interest income | $ | 28,005 | $ | 29,622 | ||||||||||||
Net yield on earning assets | 3.62 | % | 3.95 | % |
Three Months Ended September 30, 2015 | Three Months Ended September 30, 2014 | |||||||||||||||||
Virginia | Virginia | |||||||||||||||||
Savings | Community | Total | Savings | Community | Total | |||||||||||||
Residential real estate | $ | 95 | $ | 162 | $ | 257 | $ | 103 | $ | 105 | $ | 208 | ||||||
Commercial, financial, and agriculture | 130 | 446 | 576 | 169 | 1,110 | 1,279 | ||||||||||||
Installment loans to individuals | 20 | 34 | 54 | 43 | 119 | 162 | ||||||||||||
Time deposits | 129 | 40 | 169 | 135 | 52 | 187 | ||||||||||||
$ | 374 | $ | 682 | $ | 1,056 | $ | 450 | $ | 1,386 | $ | 1,836 |
Nine Months Ended September 30, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||
Assets: | ||||||||||||||||
Loan portfolio (1): | ||||||||||||||||
Residential real estate (2) | $ | 1,459,246 | $ | 42,797 | 3.92 | % | $ | 1,373,854 | $ | 41,425 | 4.03 | % | ||||
Commercial, financial, and agriculture (2) | 1,157,677 | 38,759 | 4.48 | % | 1,158,198 | 41,308 | 4.77 | % | ||||||||
Installment loans to individuals (2), (3) | 41,338 | 3,209 | 10.38 | % | 46,209 | 3,284 | 9.50 | % | ||||||||
Previously securitized loans (4) | *** | 1,310 | *** | *** | 1,630 | *** | ||||||||||
Total loans | 2,658,262 | 86,075 | 4.33 | % | 2,578,261 | 87,647 | 4.55 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 340,585 | 7,974 | 3.13 | % | 342,349 | 8,797 | 3.44 | % | ||||||||
Tax-exempt (5) | 29,222 | 1,235 | 5.65 | % | 27,685 | 1,292 | 6.24 | % | ||||||||
Total securities | 369,807 | 9,209 | 3.33 | % | 370,034 | 10,089 | 3.65 | % | ||||||||
Deposits in depository institutions | 9,790 | — | — | % | 8,955 | — | — | % | ||||||||
Total interest-earning assets | 3,037,859 | 95,284 | 4.19 | % | 2,957,250 | 97,736 | 4.42 | % | ||||||||
Cash and due from banks | 202,423 | 127,229 | ||||||||||||||
Bank premises and equipment | 76,273 | 81,038 | ||||||||||||||
Other assets | 242,294 | 246,654 | ||||||||||||||
Less: Allowance for loan losses | (20,960 | ) | (21,194 | ) | ||||||||||||
Total assets | $ | 3,537,889 | $ | 3,390,977 | ||||||||||||
Liabilities: | ||||||||||||||||
Interest-bearing demand deposits | 643,086 | 379 | 0.08 | % | 612,720 | 479 | 0.10 | % | ||||||||
Savings deposits | 698,433 | 520 | 0.10 | % | 628,996 | 597 | 0.13 | % | ||||||||
Time deposits (2) | 1,005,548 | 7,227 | 0.96 | % | 1,052,625 | 7,144 | 0.91 | % | ||||||||
Short-term borrowings | 138,192 | 236 | 0.23 | % | 128,230 | 246 | 0.26 | % | ||||||||
Long-term debt | 16,495 | 458 | 3.71 | % | 16,495 | 453 | 3.67 | % | ||||||||
Total interest-bearing liabilities | 2,501,754 | 8,820 | 0.47 | % | 2,439,066 | 8,919 | 0.49 | % | ||||||||
Noninterest-bearing demand deposits | 584,046 | 522,341 | ||||||||||||||
Other liabilities | 40,207 | 32,526 | ||||||||||||||
Stockholders' equity | 411,882 | 397,044 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 3,537,889 | $ | 3,390,977 | ||||||||||||
Net interest income | $ | 86,464 | $ | 88,817 | ||||||||||||
Net yield on earning assets | 3.81 | % | 4.02 | % |
Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | |||||||||||||||||
Virginia | Virginia | |||||||||||||||||
Savings | Community | Total | Savings | Community | Total | |||||||||||||
Residential real estate | $ | 246 | $ | 451 | $ | 697 | $ | 361 | $ | 363 | $ | 516 | ||||||
Commercial, financial, and agriculture | 236 | 3,447 | 3,683 | 424 | 3,149 | 2,294 | ||||||||||||
Installment loans to individuals | 75 | 151 | 226 | 113 | 473 | 424 | ||||||||||||
Time deposits | 387 | 120 | 507 | 401 | 197 | 411 | ||||||||||||
$ | 944 | $ | 4,169 | $ | 5,113 | $ | 1,299 | $ | 4,182 | $ | 3,645 |
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 (a) | 2015 | 2015 | 2014 | 2014 | |||||||||||
Tier I Capital: | |||||||||||||||
Stockholders' equity | $ | 418,767 | $ | 411,240 | $ | 405,075 | $ | 390,853 | $ | 391,673 | |||||
Goodwill and other intangibles | (69,103 | ) | (69,153 | ) | (69,227 | ) | (74,011 | ) | (74,247 | ) | |||||
Accumulated other comprehensive loss | 3,560 | 4,892 | 3,253 | 4,159 | 2,921 | ||||||||||
Qualifying trust preferred stock | 16,000 | 16,000 | 16,000 | 16,000 | 16,000 | ||||||||||
Excess deferred tax assets | — | — | (1,564 | ) | (3,838 | ) | (3,131 | ) | |||||||
Total tier I capital | $ | 369,224 | $ | 362,979 | $ | 353,537 | $ | 333,163 | $ | 333,216 | |||||
Qualifying trust preferred stock | $ | (16,000 | ) | $ | (16,000 | ) | $ | (16,000 | ) | * | * | ||||
Total CET I capital | $ | 353,224 | $ | 346,979 | $ | 337,537 | * | * | |||||||
Total Risk-Based Capital: | |||||||||||||||
Tier I capital | $ | 369,224 | $ | 362,979 | $ | 353,537 | $ | 333,163 | $ | 333,216 | |||||
Qualifying allowance for loan losses | 20,941 | 20,809 | 20,179 | 20,150 | 20,487 | ||||||||||
Unrealized gain on securities | 447 | 600 | 704 | 560 | 630 | ||||||||||
Total risk-based capital | $ | 390,612 | $ | 384,388 | $ | 374,420 | $ | 353,873 | $ | 354,333 | |||||
Net risk-weighted assets | $ | 2,449,191 | $ | 2,448,848 | $ | 2,404,331 | $ | 2,493,078 | $ | 2,493,938 | |||||
Ratios: | |||||||||||||||
Average stockholders' equity to average assets | 11.90 | % | 11.54 | % | 11.48 | % | 11.40 | % | 11.78 | % | |||||
Tangible capital ratio | 10.14 | % | 9.89 | % | 9.60 | % | 9.35 | % | 9.58 | % | |||||
Risk-based capital ratios: | |||||||||||||||
CET I capital | 14.42 | % | 14.17 | % | 14.04 | % | * | * | |||||||
Tier I capital | 15.08 | % | 14.82 | % | 14.7 | % | 13.36 | % | 13.36 | % | |||||
Total risk-based capital | 15.95 | % | 15.7 | % | 15.57 | % | 14.19 | % | 14.21 | % | |||||
Leverage capital | 10.71 | % | 10.38 | % | 10.23 | % | 9.89 | % | 10.07 | % | |||||
(a) September 30, 2015 risk-based capital ratios are estimated. | |||||||||||||||
(*) Basel III CET 1 ratio requirements are effective beginning January 1, 2015 and are not required prior periods. |
As of and for the Quarter Ended | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Intangibles, net | $ | 70,653 | $ | 70,779 | $ | 70,964 | $ | 74,198 | $ | 74,434 | |||||
Intangibles amortization expense | 126 | 185 | 214 | 236 | 236 |
Quarter Ended | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Balance at beginning of period | $ | 20,809 | $ | 20,179 | $ | 20,150 | $ | 20,487 | $ | 20,536 | |||||
Charge-offs: | |||||||||||||||
Commercial and industrial | 89 | (1,898 | ) | (94 | ) | 7 | (325 | ) | |||||||
Commercial real estate | (1 | ) | 61 | (337 | ) | (260 | ) | (696 | ) | ||||||
Residential real estate | (229 | ) | (272 | ) | (257 | ) | (414 | ) | (605 | ) | |||||
Home equity | (128 | ) | (17 | ) | (91 | ) | (21 | ) | (142 | ) | |||||
Consumer | (28 | ) | (69 | ) | (74 | ) | (17 | ) | (49 | ) | |||||
DDA overdrafts | (414 | ) | (313 | ) | (311 | ) | (363 | ) | (390 | ) | |||||
Total charge-offs | (711 | ) | (2,508 | ) | (1,164 | ) | (1,068 | ) | (2,207 | ) | |||||
Recoveries: | |||||||||||||||
Commercial and industrial | 45 | 9 | 18 | 4 | 4 | ||||||||||
Commercial real estate | 18 | 23 | 8 | 19 | 11 | ||||||||||
Residential real estate | 66 | 54 | 10 | 96 | 28 | ||||||||||
Home equity | — | — | — | — | — | ||||||||||
Consumer | 75 | 51 | 28 | 32 | 43 | ||||||||||
DDA overdrafts | 188 | 165 | 241 | 196 | 200 | ||||||||||
Total recoveries | 392 | 302 | 305 | 347 | 286 | ||||||||||
Net charge-offs | (319 | ) | (2,206 | ) | (859 | ) | (721 | ) | (1,921 | ) | |||||
Provision for (recovery of) acquired loans | (24 | ) | 299 | 246 | 148 | (3 | ) | ||||||||
Provision for loan losses | 475 | 2,537 | 642 | 236 | 1,875 | ||||||||||
Balance at end of period | $ | 20,941 | $ | 20,809 | $ | 20,179 | $ | 20,150 | $ | 20,487 | |||||
Loans outstanding | $ | 2,696,438 | $ | 2,684,457 | $ | 2,632,471 | $ | 2,652,066 | $ | 2,630,742 | |||||
Average loans outstanding | 2,679,429 | 2,658,484 | 2,636,400 | 2,639,106 | 2,600,142 | ||||||||||
Allowance as a percent of loans outstanding | 0.78 | % | 0.78 | % | 0.77 | % | 0.76 | % | 0.78 | % | |||||
Allowance as a percent of non-performing loans | 95.81 | % | 130.98 | % | 121.81 | % | 128.10 | % | 112.61 | % | |||||
Net charge-offs (annualized) as a | |||||||||||||||
percent of average loans outstanding | 0.05 | % | 0.33 | % | 0.13 | % | 0.11 | % | 0.30 | % | |||||
Net charge-offs, excluding overdraft deposit | |||||||||||||||
accounts, (annualized) as a percent of average | |||||||||||||||
loans outstanding | 0.01 | % | 0.31 | % | 0.12 | % | 0.08 | % | 0.27 | % |
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Nonaccrual loans | $ | 21,407 | $ | 15,623 | $ | 16,182 | $ | 15,307 | $ | 17,384 | |||||
Accruing loans past due 90 days or more | 449 | 264 | 384 | 423 | 809 | ||||||||||
Total non-performing loans | 21,856 | 15,887 | 16,566 | 15,730 | 18,193 | ||||||||||
Other real estate owned | 6,026 | 6,729 | 8,771 | 8,180 | 9,162 | ||||||||||
Total non-performing assets | $ | 27,882 | $ | 22,616 | $ | 25,337 | $ | 23,910 | $ | 27,355 | |||||
Non-performing assets as a percent of loans | |||||||||||||||
and other real estate owned | 1.03 | % | 0.84 | % | 0.96 | % | 0.90 | % | 1.04 | % | |||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Residential real estate | $ | 18,154 | $ | 19,021 | $ | 19,067 | $ | 18,492 | $ | 18,040 | |||||
Home equity - junior liens | 2,746 | 2,662 | 2,741 | 2,688 | 2,821 | ||||||||||
Commercial and industrial | 62 | 66 | 70 | 73 | 77 | ||||||||||
Commercial real estate | 1,921 | 1,872 | 1,894 | 2,263 | 2,270 | ||||||||||
Consumer | — | — | — | — | — | ||||||||||
Total | $ | 22,883 | $ | 23,621 | $ | 23,772 | $ | 23,516 | $ | 23,208 | |||||
Originated | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Residential real estate | $ | 4,813 | $ | 4,107 | $ | 4,326 | $ | 5,164 | $ | 5,276 | |||||
Home equity - junior liens | 548 | 393 | 543 | 746 | 751 | ||||||||||
Commercial and industrial | 4 | 600 | 113 | 310 | 188 | ||||||||||
Commercial real estate | 1,183 | 536 | 299 | 479 | 938 | ||||||||||
Consumer | 89 | 82 | 122 | 197 | 58 | ||||||||||
DDA overdrafts | 330 | 327 | 215 | 318 | 592 | ||||||||||
Total past due loans | $ | 6,967 | $ | 6,045 | $ | 5,618 | $ | 7,214 | $ | 7,803 | |||||
Acquired | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Residential real estate | $ | 709 | $ | 1,163 | $ | 1,792 | $ | 714 | $ | 500 | |||||
Home equity - junior liens | 10 | 5 | 86 | 2 | 16 | ||||||||||
Commercial and industrial | 351 | 14 | 490 | 143 | 96 | ||||||||||
Commercial real estate | 2,439 | 2,179 | 2,018 | 2,372 | 2,972 | ||||||||||
Consumer | 129 | 175 | 150 | 221 | 162 | ||||||||||
DDA overdrafts | — | — | — | — | — | ||||||||||
Total past due loans | $ | 3,638 | $ | 3,536 | $ | 4,536 | $ | 3,452 | $ | 3,746 | |||||
Total | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Residential real estate | $ | 5,522 | $ | 5,270 | $ | 6,118 | $ | 5,878 | $ | 5,776 | |||||
Home equity - junior liens | 558 | 398 | 629 | 748 | 767 | ||||||||||
Commercial and industrial | 355 | 614 | 603 | 453 | 284 | ||||||||||
Commercial real estate | 3,622 | 2,715 | 2,317 | 2,851 | 3,910 | ||||||||||
Consumer | 218 | 257 | 272 | 418 | 220 | ||||||||||
DDA overdrafts | 330 | 327 | 215 | 318 | 592 | ||||||||||
Total past due loans | $ | 10,605 | $ | 9,581 | $ | 10,154 | $ | 10,666 | $ | 11,549 | |||||
Total past due loans as a percent of loans outstanding | 0.39 | % | 0.36 | % | 0.39 | % | 0.40 | % | 0.44 | % | |||||
Virginia Savings Acquisition | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Contractual required principal and interest | $ | 2,149 | $ | 2,376 | $ | 2,419 | $ | 2,407 | $ | 3,481 | |||||
Carrying value | 1,861 | 1,984 | 1,979 | 1,964 | 2,987 | ||||||||||
Community Acquisition | |||||||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | |||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
Contractual required principal and interest | $ | 17,834 | $ | 18,546 | $ | 20,189 | $23,277 | $ | 24,147 | ||||||
Carrying value | 13,400 | 13,958 | 14,627 | 15,365 | 15,518 | ||||||||||