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 December 31, | Percent | ||||||
2015 | 2014 | Change | |||||
Earnings ($000s, except per share data): | |||||||
Net Interest Income (FTE) | $ | 29,391 | $ | 29,405 | (0.05)% | ||
Net Income available to common shareholders | 13,515 | 14,530 | (6.99)% | ||||
Earnings per Basic Share | 0.88 | 0.95 | (7.42)% | ||||
Earnings per Diluted Share | 0.88 | 0.95 | (7.00)% | ||||
Key Ratios (percent): | |||||||
Return on Average Assets | 1.48 | % | 1.69 | % | (12.05)% | ||
Return on Average Tangible Equity | 15.49 | % | 18.26 | % | (15.14)% | ||
Net Interest Margin | 3.62 | % | 3.89 | % | (6.90)% | ||
Efficiency Ratio | 48.55 | % | 52.14 | % | (6.89)% | ||
Average Shareholders' Equity to Average Assets | 11.65 | % | 11.40 | % | 2.21% | ||
Consolidated Risk Based Capital Ratios (a): | |||||||
CET I | 13.65 | % | * | N/A | |||
Tier I | 14.28 | % | 13.36 | % | 6.89% | ||
Total | 15.10 | % | 14.19 | % | 6.41% | ||
Tangible Equity to Tangible Assets | 9.34 | % | 9.35 | % | (0.05)% | ||
Common Stock Data: | |||||||
Cash Dividends Declared per Share | $ | 0.42 | $ | 0.40 | 5.00% | ||
Book Value per Share | 27.61 | 25.79 | 7.06% | ||||
Tangible Book Value per Share | 22.36 | 20.90 | 6.99% | ||||
Market Value per Share: | |||||||
High | 51.12 | 46.95 | 8.88% | ||||
Low | 43.85 | 41.88 | 4.70% | ||||
End of Period | 45.64 | 46.53 | (1.91)% | ||||
Price/Earnings Ratio (b) | 12.94 | 12.22 | 5.95% | ||||
Twelve Months Ended December 31, | Percent | ||||||
2015 | 2014 | Change | |||||
Earnings ($000s, except per share data): | |||||||
Net Interest Income (FTE) | $ | 115,856 | $ | 118,221 | (2.00)% | ||
Net Income available to common shareholders | 54,097 | 52,962 | 2.14% | ||||
Earnings per Basic Share | 3.54 | 3.40 | 3.96% | ||||
Earnings per Diluted Share | 3.53 | 3.38 | 4.21% | ||||
Key Ratios (percent): | |||||||
Return on Average Assets | 1.52 | % | 1.56 | % | (2.44)% | ||
Return on Average Tangible Equity | 15.77 | % | 16.49 | % | (4.33)% | ||
Net Interest Margin | 3.76 | % | 3.98 | % | (5.69)% | ||
Efficiency Ratio (c) | 53.67 | % | 53.72 | % | (0.09)% | ||
Average Shareholders' Equity to Average Assets | 11.64 | % | 11.63 | % | 0.12% | ||
Common Stock Data: | |||||||
Cash Dividends Declared per Share | 1.68 | 1.60 | 5.00% | ||||
Market Value per Share: | |||||||
High | 51.73 | 46.95 | 10.18% | ||||
Low | 41.76 | 41.20 | 1.36% | ||||
Price/Earnings Ratio (b) | 12.91 | 13.68 | (5.65)% | ||||
(a) December 31, 2015 risk-based capital ratios are estimated. | |||||||
(b) December 31, 2015 price/earnings ratio computed based on annualized fourth quarter 2015 earnings. | |||||||
(c) The December 31, 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 | 27.61 | 43.85 | 51.12 | ||||||||||||
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 | 0.88 | 3.54 | |||||||||||||
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 | 0.88 | 3.53 | |||||||||||||
Three Months Ended December 31, | |||||||
2015 | 2014 | ||||||
Interest Income | |||||||
Interest and fees on loans | $ | 29,032 | $ | 29,011 | |||
Interest on investment securities: | |||||||
Taxable | 2,856 | 2,969 | |||||
Tax-exempt | 334 | 302 | |||||
Total Interest Income | 32,222 | 32,282 | |||||
Interest Expense | |||||||
Interest on deposits | 2,760 | 2,792 | |||||
Interest on short-term borrowings | 91 | 96 | |||||
Interest on long-term debt | 159 | 153 | |||||
Total Interest Expense | 3,010 | 3,041 | |||||
Net Interest Income | 29,212 | 29,241 | |||||
Provision for loan losses | 2,813 | 384 | |||||
Net Interest Income After Provision for Loan Losses | 26,399 | 28,857 | |||||
Non-Interest Income | |||||||
Gains on sale of investment securities | — | 184 | |||||
Service charges | 6,893 | 6,750 | |||||
Bankcard revenue | 3,923 | 3,744 | |||||
Insurance commissions | — | 1,238 | |||||
Trust and investment management fee income | 1,547 | 1,363 | |||||
Bank owned life insurance | 898 | 778 | |||||
Gain on sale of insurance division | — | — | |||||
Other income | 813 | 612 | |||||
Total Non-Interest Income | 14,074 | 14,669 | |||||
Non-Interest Expense | |||||||
Salaries and employee benefits | 11,296 | 12,489 | |||||
Occupancy and equipment | 2,583 | 2,449 | |||||
Depreciation | 1,539 | 1,534 | |||||
FDIC insurance expense | 443 | 448 | |||||
Advertising | 264 | 726 | |||||
Bankcard expenses | 778 | 948 | |||||
Postage, delivery, and statement mailings | 532 | 549 | |||||
Office supplies | 273 | 360 | |||||
Legal and professional fees | 662 | 552 | |||||
Telecommunications | 409 | 522 | |||||
Repossessed asset losses, net of expenses | 217 | 27 | |||||
Merger related expenses | 315 | — | |||||
Other expenses | 1,854 | 2,431 | |||||
Total Non-Interest Expense | 21,165 | 23,035 | |||||
Income Before Income Taxes | 19,308 | 20,491 | |||||
Income tax expense | 5,793 | 5,961 | |||||
Net Income Available to Common Shareholders | $ | 13,515 | $ | 14,530 | |||
Distributed earnings allocated to common shareholders | $ | 6,303 | $ | 5,996 | |||
Undistributed earnings allocated to common shareholders | 7,059 | 8,378 | |||||
Net earnings allocated to common shareholders | $ | 13,362 | $ | 14,374 | |||
Average common shares outstanding | 15,158 | 15,096 | |||||
Effect of dilutive securities: | |||||||
Employee stock options and warrants | 17 | 86 | |||||
Shares for diluted earnings per share | 15,175 | 15,182 | |||||
Basic earnings per common share | $ | 0.88 | $ | 0.95 | |||
Diluted earnings per common share | $ | 0.88 | $ | 0.95 | |||
Dividends declared per common share | $ | 0.42 | $ | 0.40 | |||
Comprehensive Income | $ | 13,134 | $ | 13,292 |
Twelve months ended December 31, | |||||||
2015 | 2014 | ||||||
Interest Income | |||||||
Interest and fees on loans | $ | 115,107 | $ | 116,658 | |||
Interest on investment securities: | |||||||
Taxable | 10,830 | 11,766 | |||||
Tax-exempt | 1,137 | 1,142 | |||||
Total Interest Income | 127,074 | 129,566 | |||||
Interest Expense | |||||||
Interest on deposits | 10,886 | 11,012 | |||||
Interest on short-term borrowings | 327 | 342 | |||||
Interest on long-term debt | 617 | 606 | |||||
Total Interest Expense | 11,830 | 11,960 | |||||
Net Interest Income | 115,244 | 117,606 | |||||
Provision for loan losses | 6,988 | 4,054 | |||||
Net Interest Income After Provision for Loan Losses | 108,256 | 113,552 | |||||
Non-Interest Income | |||||||
Gains on sale of investment securities | 2,130 | 1,156 | |||||
Service charges | 26,316 | 26,583 | |||||
Bankcard revenue | 15,894 | 15,063 | |||||
Insurance commissions | — | 5,978 | |||||
Trust and investment management fee income | 5,124 | 4,614 | |||||
Bank owned life insurance | 3,374 | 3,070 | |||||
Gain on sale of insurance division | 11,084 | — | |||||
Other income | 3,284 | 2,258 | |||||
Total Non-Interest Income | 67,206 | 58,722 | |||||
Non-Interest Expense | |||||||
Salaries and employee benefits | 47,847 | 51,749 | |||||
Occupancy and equipment | 10,277 | 9,990 | |||||
Depreciation | 6,088 | 6,087 | |||||
FDIC insurance expense | 1,794 | 1,647 | |||||
Advertising | 2,446 | 3,274 | |||||
Bankcard expenses | 3,262 | 3,555 | |||||
Postage, delivery, and statement mailings | 2,123 | 2,211 | |||||
Office supplies | 1,350 | 1,595 | |||||
Legal and professional fees | 2,391 | 2,049 | |||||
Telecommunications | 1,765 | 1,876 | |||||
Repossessed asset losses, net of expenses | 1,264 | 579 | |||||
Merger related expenses | 598 | — | |||||
Other expenses | 11,746 | 10,429 | |||||
Total Non-Interest Expense | 92,951 | 95,041 | |||||
Income Before Income Taxes | 82,511 | 77,233 | |||||
Income tax expense | 28,414 | 24,271 | |||||
Net Income Available to Common Shareholders | $ | 54,097 | $ | 52,962 | |||
Distributed earnings allocated to common shareholders | $ | 25,212 | $ | 23,984 | |||
Undistributed earnings allocated to common shareholders | 28,272 | 28,416 | |||||
Net earnings allocated to common shareholders | $ | 53,484 | $ | 52,400 | |||
Average common shares outstanding | 15,123 | 15,403 | |||||
Effect of dilutive securities: | |||||||
Employee stock options and warrants | 48 | 85 | |||||
Shares for diluted earnings per share | 15,171 | 15,488 | |||||
Basic earnings per common share | $ | 3.54 | $ | 3.40 | |||
Diluted earnings per common share | $ | 3.53 | $ | 3.38 | |||
Dividends declared per common share | $ | 1.68 | $ | 1.60 | |||
Comprehensive Income | $ | 54,315 | $ | 53,793 |
Three Months Ended | ||||||
December 31, 2015 | December 31, 2014 | |||||
Balance at October 1 | $ | 418,767 | $ | 391,673 | ||
Net income | 13,515 | 14,530 | ||||
Other comprehensive income: | ||||||
Change in unrealized gain (loss) on securities available-for-sale | (862 | ) | 1,232 | |||
Change in underfunded pension liability | 481 | (2,470 | ) | |||
Cash dividends declared ($0.42/share) and ($0.40/share), respectively | (6,376 | ) | (6,040 | ) | ||
Issuance of stock award shares, net | 363 | 326 | ||||
Exercise of 9,750 stock options | 330 | — | ||||
Exercise of 1,000 stock options | — | 26 | ||||
Purchase of 150,385 common shares of treasury | (7,055 | ) | — | |||
Purchase of 193,943 common shares of treasury | — | (8,424 | ) | |||
Balance at December 31 | $ | 419,163 | $ | 390,853 | ||
Twelve Months Ended | ||||||
December 31, 2015 | December 31, 2014 | |||||
Balance at January 1 | $ | 390,853 | $ | 387,623 | ||
Net income | 54,097 | 52,962 | ||||
Other comprehensive income: | ||||||
Change in unrealized gain (loss) on securities available-for-sale | (263 | ) | 3,301 | |||
Change in underfunded pension liability | 481 | (2,470 | ) | |||
Cash dividends declared ($1.68/share) and ($1.60/share), respectively | (25,618 | ) | (24,721 | ) | ||
Issuance of stock award shares, net | 1,793 | 1,535 | ||||
Exercise of 81,500 stock options | 2,979 | — | ||||
Exercise of 20,000 stock options | — | 580 | ||||
Exercise of 61,796 warrants | 1,896 | — | ||||
Purchase of 150,385 common shares of treasury | (7,055 | ) | — | |||
Purchase of 650,799 common shares of treasury | — | (27,957 | ) | |||
Balance at December 31 | $ | 419,163 | $ | 390,853 |
Quarter Ended | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Interest income | $ | 32,222 | $ | 30,768 | $ | 31,720 | $ | 32,364 | $ | 32,282 | |||||
Taxable equivalent adjustment | 179 | 147 | 144 | 142 | 164 | ||||||||||
Interest income (FTE) | 32,401 | 30,915 | 31,864 | 32,506 | 32,446 | ||||||||||
Interest expense | 3,010 | 2,910 | 2,937 | 2,973 | 3,041 | ||||||||||
Net interest income | 29,391 | 28,005 | 28,927 | 29,533 | 29,405 | ||||||||||
Provision for loan losses | 2,813 | 451 | 2,836 | 888 | 384 | ||||||||||
Net interest income after provision | |||||||||||||||
for loan losses | 26,578 | 27,554 | 26,091 | 28,645 | 29,021 | ||||||||||
Noninterest income | 14,074 | 13,706 | 15,405 | 24,021 | 14,669 | ||||||||||
Noninterest expense | 21,165 | 25,377 | 23,244 | 23,165 | 23,035 | ||||||||||
Income before income taxes | 19,487 | 15,883 | 18,252 | 29,501 | 20,655 | ||||||||||
Income tax expense | 5,793 | 5,129 | 6,125 | 11,367 | 5,961 | ||||||||||
Taxable equivalent adjustment | 179 | 147 | 144 | 142 | 164 | ||||||||||
Net income | $ | 13,515 | $ | 10,607 | $ | 11,983 | $ | 17,992 | $ | 14,530 | |||||
Allocated to common shareholders: | |||||||||||||||
Distributed earnings | $ | 6,303 | $ | 6,362 | $ | 6,344 | $ | 6,315 | $ | 5,996 | |||||
Undistributed earnings | 7,059 | 4,125 | 5,505 | 11,468 | 8,378 | ||||||||||
Net earnings allocated to common shareholders | $ | 13,362 | $ | 10,487 | $ | 11,849 | $ | 17,783 | $ | 14,374 | |||||
Average common shares outstanding | 15,158 | 15,178 | 15,104 | 15,067 | 15,096 | ||||||||||
Effect of dilutive securities: | |||||||||||||||
Employee stock options and warrants | 17 | 20 | 23 | 82 | 86 | ||||||||||
Shares for diluted earnings per share | 15,175 | 15,198 | 15,127 | 15,149 | 15,182 | ||||||||||
Basic earnings per common share | $ | 0.88 | $ | 0.69 | $ | 0.78 | $ | 1.18 | $ | 0.95 | |||||
Diluted earnings per common share | 0.88 | 0.69 | 0.78 | 1.17 | 0.95 | ||||||||||
Cash dividends declared per share | 0.42 | 0.42 | 0.42 | 0.42 | 0.40 | ||||||||||
Net Interest Margin | 3.62 | % | 3.62 | % | 3.82 | % | 3.99 | % | 3.89 | % | |||||
Interest Income from Accretion Related to Fair | |||||||||||||||
Value Adjustments Recorded as a | |||||||||||||||
Result of Acquisition: | $ | 1,572 | $ | 1,056 | $ | 1,607 | $ | 2,450 | $ | 1,307 | |||||
Net Interest Margin (excluding accretion) | 3.42 | % | 3.48 | % | 3.60 | % | 3.66 | % | 3.71 | % |
Quarter Ended | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Non-Interest Income: | |||||||||||||||
Service charges | $ | 6,893 | $ | 6,907 | $ | 6,589 | $ | 5,927 | $ | 6,750 | |||||
Bankcard revenue | 3,923 | 3,895 | 4,002 | 4,074 | 3,744 | ||||||||||
Insurance commissions | — | — | — | — | 1,238 | ||||||||||
Trust and investment management fee income | 1,547 | 1,176 | 1,201 | 1,200 | 1,363 | ||||||||||
Bank owned life insurance | 898 | 929 | 783 | 764 | 778 | ||||||||||
Gain on sale of insurance division | — | — | — | 11,084 | — | ||||||||||
Other income | 813 | 799 | 714 | 958 | 612 | ||||||||||
Subtotal | 14,074 | 13,706 | 13,289 | 24,007 | 14,485 | ||||||||||
Gain (loss) on sale of investment securities | — | — | 2,116 | 14 | 184 | ||||||||||
Total Non-Interest Income | $ | 14,074 | $ | 13,706 | $ | 15,405 | $ | 24,021 | $ | 14,669 | |||||
Non-Interest Expense: | |||||||||||||||
Salaries and employee benefits | $ | 11,296 | $ | 12,179 | $ | 12,193 | $ | 12,179 | $ | 12,489 | |||||
Occupancy and equipment | 2,583 | 2,575 | 2,529 | 2,590 | 2,449 | ||||||||||
Depreciation | 1,539 | 1,522 | 1,516 | 1,511 | 1,534 | ||||||||||
FDIC insurance expense | 443 | 456 | 445 | 450 | 448 | ||||||||||
Advertising | 264 | 777 | 701 | 704 | 726 | ||||||||||
Bankcard expenses | 778 | 785 | 829 | 870 | 948 | ||||||||||
Postage, delivery and statement mailings | 532 | 523 | 507 | 561 | 549 | ||||||||||
Office supplies | 273 | 384 | 347 | 346 | 360 | ||||||||||
Legal and professional fees | 662 | 620 | 542 | 567 | 552 | ||||||||||
Telecommunications | 409 | 418 | 463 | 475 | 522 | ||||||||||
Repossessed asset losses, net of expenses | 217 | 492 | 335 | 220 | 27 | ||||||||||
Merger related expenses | 315 | 175 | 108 | — | — | ||||||||||
Other expenses | 1,854 | 4,471 | 2,729 | 2,692 | 2,431 | ||||||||||
Total Non-Interest Expense | $ | 21,165 | $ | 25,377 | $ | 23,244 | $ | 23,165 | $ | 23,035 | |||||
Employees (Full Time Equivalent) | 853 | 828 | 844 | 845 | 889 | ||||||||||
Branch Locations | 85 | 82 | 82 | 82 | 82 |
December 31, 2015 | December 31, 2014 | |||||
(Unaudited) | ||||||
Assets | ||||||
Cash and due from banks | $ | 58,829 | $ | 138,503 | ||
Interest-bearing deposits in depository institutions | 11,284 | 9,725 | ||||
Federal funds sold | — | — | ||||
Cash and cash equivalents | 70,113 | 148,228 | ||||
Investment securities available-for-sale, at fair value | 369,466 | 254,043 | ||||
Investment securities held-to-maturity, at amortized cost | 88,937 | 90,786 | ||||
Other securities | 12,915 | 9,857 | ||||
Total investment securities | 471,318 | 354,686 | ||||
Gross loans | 2,863,327 | 2,652,066 | ||||
Allowance for loan losses | (20,044 | ) | (20,150 | ) | ||
Net loans | 2,843,283 | 2,631,916 | ||||
Bank owned life insurance | 97,919 | 95,116 | ||||
Premises and equipment, net | 77,271 | 77,988 | ||||
Accrued interest receivable | 7,432 | 6,826 | ||||
Net deferred tax assets | 30,781 | 36,766 | ||||
Intangible assets | 79,792 | 74,198 | ||||
Other assets | 34,144 | 35,909 | ||||
Total Assets | $ | 3,712,053 | $ | 3,461,633 | ||
Liabilities | ||||||
Deposits: | ||||||
Noninterest-bearing | $ | 621,073 | $ | 545,465 | ||
Interest-bearing: | ||||||
Demand deposits | 679,735 | 639,932 | ||||
Savings deposits | 765,611 | 660,727 | ||||
Time deposits | 1,017,556 | 1,026,663 | ||||
Total deposits | 3,083,975 | 2,872,787 | ||||
Short-term borrowings | ||||||
Customer repurchase agreements | 141,869 | 134,931 | ||||
Long-term debt | 16,495 | 16,495 | ||||
Other liabilities | 37,551 | 46,567 | ||||
Total Liabilities | 3,292,890 | 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 December 31, 2015 and December 31, 2014 | ||||||
less 3,319,067 and 3,345,590 shares in treasury, respectively | 46,249 | 46,249 | ||||
Capital surplus | 106,269 | 107,370 | ||||
Retained earnings | 390,690 | 362,211 | ||||
Cost of common stock in treasury | (120,104 | ) | (120,818 | ) | ||
Accumulated other comprehensive loss: | ||||||
Unrealized gain on securities available-for-sale | 927 | 1,190 | ||||
Underfunded pension liability | (4,868 | ) | (5,349 | ) | ||
Total Accumulated Other Comprehensive Loss | (3,941 | ) | (4,159 | ) | ||
Total Stockholders' Equity | 419,163 | 390,853 | ||||
Total Liabilities and Stockholders' Equity | $ | 3,712,053 | $ | 3,461,633 |
Credit-Related | ||||||||||||
Net Investment | ||||||||||||
Impairment | ||||||||||||
Losses Through | Unrealized | |||||||||||
Original Cost | December 31, 2015 | Gains (Losses) | Carrying Value | |||||||||
US Government Agencies | $ | 5 | — | $ | — | $ | 5 | |||||
Mortgage Backed Securities | 374,092 | — | 273 | 374,365 | ||||||||
Municipal Bonds | 49,725 | — | 972 | 50,697 | ||||||||
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 | 27,548 | (15 | ) | (827 | ) | 26,706 | ||||||
Money Markets and Mutual Funds | 1,525 | — | (13 | ) | 1,512 | |||||||
Federal Reserve Bank and FHLB stock | 12,915 | — | — | 12,915 | ||||||||
Community Bank Equity Positions | 3,715 | (1,584 | ) | 1,142 | 3,273 | |||||||
Total Investments | $ | 487,906 | $ | (18,170 | ) | $ | 1,582 | $ | 471,318 |
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Residential real estate (1) | $ | 1,383,133 | $ | 1,358,083 | $ | 1,325,453 | $ | 1,303,258 | $ | 1,294,576 | |||||
Home equity - junior liens | 147,036 | 144,748 | 143,772 | 143,670 | 145,604 | ||||||||||
Commercial and industrial | 165,887 | 124,495 | 142,065 | 132,127 | 140,548 | ||||||||||
Commercial real estate (2) | 1,127,827 | 1,029,103 | 1,032,333 | 1,011,777 | 1,028,831 | ||||||||||
Consumer | 36,083 | 36,751 | 37,555 | 38,436 | 39,705 | ||||||||||
DDA overdrafts | 3,361 | 3,258 | 3,279 | 3,203 | 2,802 | ||||||||||
Gross Loans | $ | 2,863,327 | $ | 2,696,438 | $ | 2,684,457 | $ | 2,632,471 | $ | 2,652,066 | |||||
Construction loans included in: | |||||||||||||||
(1) - Residential real estate loans | $ | 13,135 | $ | 14,765 | $ | 15,412 | $ | 17,459 | $ | 22,992 | |||||
(2) - Commercial real estate loans | 12,599 | 11,970 | 4,043 | 30,554 | 28,652 |
Virginia Savings | Community | AFB | |||||||||||||||||||
Loan | Certificates of | Loan | Certificates of | Loan | Certificates of | ||||||||||||||||
Year Ended: | Accretion (a) | Deposits (a) | 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 | ||||||||||||||
4Q 2015 | 138 | 129 | 1,226 | 40 | 28 | 11 | 1,572 | ||||||||||||||
2016 | 299 | 497 | 1,183 | 43 | 286 | 52 | 2,360 | ||||||||||||||
2017 | 161 | — | 939 | 4 | 256 | 11 | 1,371 | ||||||||||||||
2018 | 99 | — | 712 | — | 234 | — | 1,045 | ||||||||||||||
a - 2015 amounts are based on actual results. 2016, 2017 and 2018 amounts are based on estimated amounts. |
Three Months Ended December 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||
Assets: | ||||||||||||||||
Loan portfolio (1): | ||||||||||||||||
Residential real estate (2) | $ | 1,518,581 | $ | 14,763 | 3.86 | % | $ | 1,426,501 | $ | 14,107 | 3.92 | % | ||||
Commercial, financial, and agriculture (2) | 1,230,907 | 13,034 | 4.20 | % | 1,169,045 | 13,074 | 4.44 | % | ||||||||
Installment loans to individuals (2), (3) | 39,865 | 750 | 7.46 | % | 43,561 | 1,272 | 11.59 | % | ||||||||
Previously securitized loans (4) | *** | 485 | *** | *** | 558 | *** | ||||||||||
Total loans | 2,789,354 | 29,032 | 4.13 | % | 2,639,106 | 29,011 | 4.36 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 387,048 | 2,856 | 2.93 | % | 322,871 | 2,969 | 3.65 | % | ||||||||
Tax-exempt (5) | 37,818 | 513 | 5.38 | % | 30,775 | 466 | 6.01 | % | ||||||||
Total securities | 424,866 | 3,369 | 3.15 | % | 353,646 | 3,435 | 3.85 | % | ||||||||
Deposits in depository institutions | 9,562 | — | — | % | 9,948 | — | — | % | ||||||||
Total interest-earning assets | 3,223,782 | 32,401 | 3.99 | % | 3,002,700 | 32,446 | 4.29 | % | ||||||||
Cash and due from banks | 117,290 | 138,946 | ||||||||||||||
Bank premises and equipment | 75,729 | 78,740 | ||||||||||||||
Other assets | 248,693 | 246,507 | ||||||||||||||
Less: Allowance for loan losses | (21,101 | ) | (21,010 | ) | ||||||||||||
Total assets | $ | 3,644,393 | $ | 3,445,883 | ||||||||||||
Liabilities: | ||||||||||||||||
Interest-bearing demand deposits | $ | 650,523 | $ | 126 | 0.08 | % | $ | 619,736 | $ | 136 | 0.09 | % | ||||
Savings deposits | 732,129 | 192 | 0.10 | % | 642,938 | 187 | 0.12 | % | ||||||||
Time deposits (2) | 1,004,296 | 2,442 | 0.96 | % | 1,030,010 | 2,468 | 0.95 | % | ||||||||
Short-term borrowings | 165,996 | 91 | 0.22 | % | 150,205 | 98 | 0.26 | % | ||||||||
Long-term debt | 16,495 | 159 | 3.82 | % | 16,495 | 152 | 3.66 | % | ||||||||
Total interest-bearing liabilities | 2,569,439 | 3,010 | 0.46 | % | 2,459,384 | 3,041 | 0.49 | % | ||||||||
Noninterest-bearing demand deposits | 609,350 | 556,937 | ||||||||||||||
Other liabilities | 41,151 | 36,896 | ||||||||||||||
Stockholders' equity | 424,453 | 392,666 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 3,644,393 | $ | 3,445,883 | ||||||||||||
Net interest income | $ | 29,391 | $ | 29,405 | ||||||||||||
Net yield on earning assets | 3.62 | % | 3.89 | % |
Three Months Ended December 31, 2015 | ||||||||||||
Virginia | ||||||||||||
Savings | Community | AFB | Total | |||||||||
Residential real estate | $ | 78 | $ | 109 | $ | 9 | $ | 196 | ||||
Commercial, financial, and agriculture | 36 | 1,093 | 17 | 1,146 | ||||||||
Installment loans to individuals | 24 | 24 | 2 | 50 | ||||||||
Time deposits | 129 | 40 | 11 | 180 | ||||||||
$ | 267 | $ | 1,266 | $ | 39 | $ | 1,572 |
Three Months Ended December 31, 2015 | |||||||||
Virginia | |||||||||
Savings | Community | Total | |||||||
Residential real estate | $ | 66 | $ | 94 | $ | 160 | |||
Commercial, financial, and agriculture | 80 | 751 | 831 | ||||||
Installment loans to individuals | 41 | 88 | 129 | ||||||
Time deposits | 135 | 52 | 187 | ||||||
$ | 322 | $ | 985 | $ | 1,307 |
Twelve Months Ended December 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||
Assets: | ||||||||||||||||
Loan portfolio (1): | ||||||||||||||||
Residential real estate (2) | $ | 1,474,631 | $ | 57,692 | 3.91 | % | $ | 1,384,677 | $ | 55,627 | 4.02 | % | ||||
Commercial, financial, and agriculture (2) | 1,175,707 | 51,660 | 4.39 | % | 1,163,449 | 54,288 | 4.67 | % | ||||||||
Installment loans to individuals (2), (3) | 40,966 | 3,959 | 9.66 | % | 45,470 | 4,556 | 10.02 | % | ||||||||
Previously securitized loans (4) | *** | 1,796 | *** | *** | 2,187 | *** | ||||||||||
Total loans | 2,691,304 | 115,107 | 4.28 | % | 2,593,597 | 116,658 | 4.50 | % | ||||||||
Securities: | ||||||||||||||||
Taxable | 352,296 | 10,830 | 3.07 | % | 337,440 | 11,766 | 3.49 | % | ||||||||
Tax-exempt (5) | 31,389 | 1,749 | 5.57 | % | 28,464 | 1,757 | 6.17 | % | ||||||||
Total securities | 383,685 | 12,579 | 3.28 | % | 365,904 | 13,523 | 3.70 | % | ||||||||
Deposits in depository institutions | 9,733 | — | — | % | 9,205 | — | — | % | ||||||||
Total interest-earning assets | 3,084,722 | 127,686 | 4.14 | % | 2,968,706 | 130,181 | 4.39 | % | ||||||||
Cash and due from banks | 180,965 | 130,183 | ||||||||||||||
Bank premises and equipment | 76,136 | 80,459 | ||||||||||||||
Other assets | 243,905 | 246,618 | ||||||||||||||
Less: Allowance for loan losses | (20,995 | ) | (21,148 | ) | ||||||||||||
Total assets | $ | 3,564,733 | $ | 3,404,818 | ||||||||||||
Liabilities: | ||||||||||||||||
Interest-bearing demand deposits | $ | 644,961 | $ | 505 | 0.08 | % | $ | 614,489 | $ | 615 | 0.10 | % | ||||
Savings deposits | 706,926 | 712 | 0.10 | % | 632,510 | 784 | 0.12 | % | ||||||||
Time deposits (2) | 1,005,232 | 9,669 | 0.96 | % | 1,046,925 | 9,613 | 0.92 | % | ||||||||
Short-term borrowings | 145,199 | 327 | 0.23 | % | 133,769 | 342 | 0.26 | % | ||||||||
Long-term debt | 16,495 | 617 | 3.74 | % | 16,495 | 606 | 3.67 | % | ||||||||
Total interest-bearing liabilities | 2,518,813 | 11,830 | 0.47 | % | 2,444,188 | 11,960 | 0.49 | % | ||||||||
Noninterest-bearing demand deposits | 590,424 | 531,061 | ||||||||||||||
Other liabilities | 40,445 | 33,629 | ||||||||||||||
Stockholders' equity | 415,051 | 395,940 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 3,564,733 | $ | 3,404,818 | ||||||||||||
Net interest income | $ | 115,856 | $ | 118,221 | ||||||||||||
Net yield on earning assets | 3.76 | % | 3.98 | % |
Twelve Months Ended December 31, 2015 | ||||||||||||
Virginia | ||||||||||||
Savings | Community | AFB | Total | |||||||||
Residential real estate | $ | 324 | $ | 560 | $ | 9 | $ | 893 | ||||
Commercial, financial, and agriculture | 273 | 4,540 | 17 | 4,830 | ||||||||
Installment loans to individuals | 98 | 175 | 2 | 275 | ||||||||
Time deposits | 516 | 160 | 11 | 687 | ||||||||
$ | 1,211 | $ | 5,435 | $ | 39 | $ | 6,685 |
Twelve Months Ended December 31, 2015 | |||||||||
Virginia | |||||||||
Savings | Community | Total | |||||||
Residential real estate | $ | 427 | $ | 457 | $ | 884 | |||
Commercial, financial, and agriculture | 504 | 3,900 | 4,404 | ||||||
Installment loans to individuals | 154 | 561 | 715 | ||||||
Time deposits | 535 | 250 | 785 | ||||||
$ | 1,620 | $ | 5,168 | $ | 6,788 |
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 (a) | 2015 | 2015 | 2015 | 2014 | |||||||||||
Tier I Capital: | |||||||||||||||
Stockholders' equity | $ | 419,163 | $ | 418,767 | $ | 411,240 | $ | 405,075 | $ | 390,853 | |||||
Goodwill and other intangibles | (77,484 | ) | (69,103 | ) | (69,153 | ) | (69,227 | ) | (74,011 | ) | |||||
Accumulated other comprehensive loss | 3,941 | 3,560 | 4,892 | 3,253 | 4,159 | ||||||||||
Qualifying trust preferred stock | 16,000 | 16,000 | 16,000 | 16,000 | 16,000 | ||||||||||
Excess deferred tax assets | — | — | — | (1,564 | ) | (3,838 | ) | ||||||||
Total tier I capital | $ | 361,620 | $ | 369,224 | $ | 362,979 | $ | 353,537 | $ | 333,163 | |||||
Qualifying trust preferred stock | $ | (16,000 | ) | $ | (16,000 | ) | $ | (16,000 | ) | $ | (16,000 | ) | * | ||
Total CET I capital | $ | 345,620 | $ | 353,224 | $ | 346,979 | $ | 337,537 | * | ||||||
Total Risk-Based Capital: | |||||||||||||||
Tier I capital | $ | 361,620 | $ | 369,224 | $ | 362,979 | $ | 353,537 | $ | 333,163 | |||||
Qualifying allowance for loan losses | 20,044 | 20,941 | 20,809 | 20,179 | 20,150 | ||||||||||
Unrealized gain on securities | 516 | 447 | 600 | 704 | 560 | ||||||||||
Total risk-based capital | $ | 382,180 | $ | 390,612 | $ | 384,388 | $ | 374,420 | $ | 353,873 | |||||
Net risk-weighted assets | $ | 2,531,647 | $ | 2,449,191 | $ | 2,448,848 | $ | 2,404,331 | $ | 2,493,078 | |||||
Ratios: | |||||||||||||||
Average stockholders' equity to average assets | 11.65 | % | 11.90 | % | 11.54 | % | 11.48 | % | 11.40 | % | |||||
Tangible capital ratio | 9.34 | % | 10.14 | % | 9.89 | % | 9.60 | % | 9.35 | % | |||||
Risk-based capital ratios: | |||||||||||||||
CET I capital | 13.65 | % | 14.42 | % | 14.17 | % | 14.04 | % | * | ||||||
Tier I capital | 14.28 | % | 15.08 | % | 14.82 | % | 14.7 | % | 13.36 | % | |||||
Total risk-based capital | 15.10 | % | 15.95 | % | 15.7 | % | 15.57 | % | 14.19 | % | |||||
Leverage capital | 10.15 | % | 10.71 | % | 10.38 | % | 10.23 | % | 9.89 | % | |||||
(a) December 31, 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 | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Intangibles, net | $ | 79,792 | $ | 70,653 | $ | 70,779 | $ | 70,964 | $ | 74,198 | |||||
Intangibles amortization expense | 151 | 126 | 185 | 214 | 236 |
Quarter Ended | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Balance at beginning of period | $ | 20,941 | $ | 20,809 | $ | 20,179 | $ | 20,150 | $ | 20,487 | |||||
Charge-offs: | |||||||||||||||
Commercial and industrial | (3,148 | ) | 89 | (1,898 | ) | (94 | ) | 7 | |||||||
Commercial real estate | (303 | ) | (1 | ) | 61 | (337 | ) | (260 | ) | ||||||
Residential real estate | (386 | ) | (229 | ) | (272 | ) | (257 | ) | (414 | ) | |||||
Home equity | (76 | ) | (128 | ) | (17 | ) | (91 | ) | (21 | ) | |||||
Consumer | (39 | ) | (28 | ) | (69 | ) | (74 | ) | (17 | ) | |||||
DDA overdrafts | (376 | ) | (414 | ) | (313 | ) | (311 | ) | (363 | ) | |||||
Total charge-offs | (4,328 | ) | (711 | ) | (2,508 | ) | (1,164 | ) | (1,068 | ) | |||||
Recoveries: | |||||||||||||||
Commercial and industrial | 2 | 45 | 9 | 18 | 4 | ||||||||||
Commercial real estate | 317 | 18 | 23 | 8 | 19 | ||||||||||
Residential real estate | 69 | 66 | 54 | 10 | 96 | ||||||||||
Home equity | — | — | — | — | — | ||||||||||
Consumer | 32 | 75 | 51 | 28 | 32 | ||||||||||
DDA overdrafts | 198 | 188 | 165 | 241 | 196 | ||||||||||
Total recoveries | 618 | 392 | 302 | 305 | 347 | ||||||||||
Net charge-offs | (3,710 | ) | (319 | ) | (2,206 | ) | (859 | ) | (721 | ) | |||||
Provision for (recovery of) acquired loans | 32 | (24 | ) | 299 | 246 | 148 | |||||||||
Provision for loan losses | 2,781 | 475 | 2,537 | 642 | 236 | ||||||||||
Balance at end of period | $ | 20,044 | $ | 20,941 | $ | 20,809 | $ | 20,179 | $ | 20,150 | |||||
Loans outstanding | $ | 2,863,327 | $ | 2,696,438 | $ | 2,684,457 | $ | 2,632,471 | $ | 2,652,066 | |||||
Average loans outstanding | 2,789,354 | 2,679,429 | 2,658,484 | 2,636,400 | 2,639,106 | ||||||||||
Allowance as a percent of loans outstanding | 0.70 | % | 0.78 | % | 0.78 | % | 0.77 | % | 0.76 | % | |||||
Allowance as a percent of non-performing loans | 114.91 | % | 95.81 | % | 130.98 | % | 121.81 | % | 128.10 | % | |||||
Net charge-offs (annualized) as a | |||||||||||||||
percent of average loans outstanding | 0.53 | % | 0.05 | % | 0.33 | % | 0.13 | % | 0.11 | % | |||||
Net charge-offs, excluding overdraft deposit | |||||||||||||||
accounts, (annualized) as a percent of average | |||||||||||||||
loans outstanding | 0.51 | % | 0.01 | % | 0.31 | % | 0.12 | % | 0.08 | % |
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Nonaccrual loans | $ | 16,949 | $ | 21,407 | $ | 15,623 | $ | 16,182 | $ | 15,307 | |||||
Accruing loans past due 90 days or more | 494 | 449 | 264 | 384 | 423 | ||||||||||
Total non-performing loans | 17,443 | 21,856 | 15,887 | 16,566 | 15,730 | ||||||||||
Other real estate owned | 6,519 | 6,026 | 6,729 | 8,771 | 8,180 | ||||||||||
Total non-performing assets | $ | 23,962 | $ | 27,882 | $ | 22,616 | $ | 25,337 | $ | 23,910 | |||||
Non-performing assets as a percent of loans | |||||||||||||||
and other real estate owned | 0.83 | % | 1.03 | % | 0.84 | % | 0.96 | % | 0.90 | % | |||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Residential real estate | $ | 17,987 | $ | 18,154 | $ | 19,021 | $ | 19,067 | $ | 18,492 | |||||
Home equity - junior liens | 2,693 | 2,746 | 2,662 | 2,741 | 2,688 | ||||||||||
Commercial and industrial | 58 | 62 | 66 | 70 | 73 | ||||||||||
Commercial real estate | 529 | 1,921 | 1,872 | 1,894 | 2,263 | ||||||||||
Consumer | — | — | — | — | — | ||||||||||
Total | $ | 21,267 | $ | 22,883 | $ | 23,621 | $ | 23,772 | $ | 23,516 | |||||
Originated | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Residential real estate | $ | 5,871 | $ | 4,813 | $ | 4,107 | $ | 4,326 | $ | 5,164 | |||||
Home equity - junior liens | 393 | 548 | 393 | 543 | 746 | ||||||||||
Commercial and industrial | 62 | 4 | 600 | 113 | 310 | ||||||||||
Commercial real estate | 779 | 1,183 | 536 | 299 | 479 | ||||||||||
Consumer | 106 | 89 | 82 | 122 | 197 | ||||||||||
DDA overdrafts | 313 | 330 | 327 | 215 | 318 | ||||||||||
Total past due loans | $ | 7,524 | $ | 6,967 | $ | 6,045 | $ | 5,618 | $ | 7,214 | |||||
Acquired | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Residential real estate | $ | 739 | $ | 709 | $ | 1,163 | $ | 1,792 | $ | 714 | |||||
Home equity - junior liens | 13 | 10 | 5 | 86 | 2 | ||||||||||
Commercial and industrial | 97 | 351 | 14 | 490 | 143 | ||||||||||
Commercial real estate | 701 | 2,439 | 2,179 | 2,018 | 2,372 | ||||||||||
Consumer | 90 | 129 | 175 | 150 | 221 | ||||||||||
DDA overdrafts | — | — | — | — | — | ||||||||||
Total past due loans | $ | 1,640 | $ | 3,638 | $ | 3,536 | $ | 4,536 | $ | 3,452 | |||||
Total | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Residential real estate | $ | 6,610 | $ | 5,522 | $ | 5,270 | $ | 6,118 | $ | 5,878 | |||||
Home equity - junior liens | 406 | 558 | 398 | 629 | 748 | ||||||||||
Commercial and industrial | 159 | 355 | 614 | 603 | 453 | ||||||||||
Commercial real estate | 1,480 | 3,622 | 2,715 | 2,317 | 2,851 | ||||||||||
Consumer | 196 | 218 | 257 | 272 | 418 | ||||||||||
DDA overdrafts | 313 | 330 | 327 | 215 | 318 | ||||||||||
Total past due loans | $ | 9,164 | $ | 10,605 | $ | 9,581 | $ | 10,154 | $ | 10,666 | |||||
Total past due loans as a percent of loans outstanding | 0.32 | % | 0.39 | % | 0.36 | % | 0.39 | % | 0.40 | % | |||||
Virginia Savings Acquisition | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Contractual required principal and interest | $ | 1,965 | $ | 2,149 | $ | 2,376 | $ | 2,419 | $ | 2,407 | |||||
Carrying value | 1,707 | 1,861 | 1,984 | 1,979 | 1,964 | ||||||||||
Community Acquisition | |||||||||||||||
December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||
2015 | 2015 | 2015 | 2015 | 2014 | |||||||||||
Contractual required principal and interest | $ | 16,362 | $ | 17,834 | $ | 18,546 | $ | 20,189 | $ | 23,277 | |||||
Carrying value | 12,899 | 13,400 | 13,958 | 14,627 | 15,365 | ||||||||||