West Virginia | 55-0619957 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
25 Gatewater Road | |
Charleston, West Virginia | 25313 |
(Address of principal executive offices) | (Zip Code) |
Yes | [X] | No | [ ] |
Yes | [X] | No | [ ] |
Large accelerated filer [X] | Accelerated filer [ ] | ||
Non-accelerated filer [ ] | Smaller reporting company [ ] | ||
Emerging growth company [ ] |
Yes | [ ] | No | [X] |
Pages | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Part I - | FINANCIAL INFORMATION |
Item 1 - | Financial Statements |
(Unaudited) | |||||||
March 31, 2018 | December 31, 2017 | ||||||
Assets | |||||||
Cash and due from banks | $ | 97,495 | $ | 54,450 | |||
Interest-bearing deposits in depository institutions | 26,283 | 28,058 | |||||
Cash and Cash Equivalents | 123,778 | 82,508 | |||||
Investment securities available for sale, at fair value | 545,628 | 550,389 | |||||
Investment securities held-to-maturity, at amortized cost (approximate fair value at March 31, 2018 and December 31, 2017 - $62,146 and $65,646, respectively) | 62,277 | 64,449 | |||||
Other securities | 22,165 | 14,147 | |||||
Total Investment Securities | 630,070 | 628,985 | |||||
Gross loans | 3,137,681 | 3,127,410 | |||||
Allowance for loan losses | (18,381 | ) | (18,836 | ) | |||
Net Loans | 3,119,300 | 3,108,574 | |||||
Bank owned life insurance | 104,052 | 103,440 | |||||
Premises and equipment, net | 72,920 | 72,682 | |||||
Accrued interest receivable | 9,528 | 9,223 | |||||
Net deferred tax asset | 14,467 | 11,913 | |||||
Goodwill and other intangible assets, net | 78,468 | 78,595 | |||||
Other assets | 47,432 | 36,361 | |||||
Total Assets | $ | 4,200,015 | $ | 4,132,281 | |||
Liabilities | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 703,209 | $ | 666,639 | |||
Interest-bearing: | |||||||
Demand deposits | 816,976 | 769,245 | |||||
Savings deposits | 816,245 | 796,275 | |||||
Time deposits | 1,110,532 | 1,083,475 | |||||
Total Deposits | 3,446,962 | 3,315,634 | |||||
Short term borrowings: | |||||||
Federal funds purchased | — | 54,000 | |||||
Customer repurchase agreements | 195,375 | 198,219 | |||||
Long-term debt | 16,495 | 16,495 | |||||
Other liabilities | 49,306 | 45,426 | |||||
Total Liabilities | 3,708,138 | 3,629,774 | |||||
Shareholders’ 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; 19,047,548 shares issued at March 31, 2018 and December 31, 2017, less 3,608,051 and 3,429,519 shares in treasury, respectively | 47,619 | 47,619 | |||||
Capital surplus | 140,547 | 140,960 | |||||
Retained earnings | 457,650 | 444,481 | |||||
Cost of common stock in treasury | (137,420 | ) | (124,909 | ) | |||
Accumulated other comprehensive income (loss): | |||||||
Unrealized (loss) on securities available-for-sale | (11,486 | ) | (611 | ) | |||
Underfunded pension liability | (5,033 | ) | (5,033 | ) | |||
Total Accumulated Other Comprehensive Income (Loss) | (16,519 | ) | (5,644 | ) | |||
Total Shareholders’ Equity | 491,877 | 502,507 | |||||
Total Liabilities and Shareholders’ Equity | $ | 4,200,015 | $ | 4,132,281 |
Interest Income | Three months ended March 31, | |||||
2018 | 2017 | |||||
Interest and fees on loans | $ | 32,918 | $ | 30,104 | ||
Interest and dividends on investment securities: | ||||||
Taxable | 3,981 | 3,444 | ||||
Tax-exempt | 703 | 663 | ||||
Interest on deposits in depository institutions | 42 | 3 | ||||
Total Interest Income | 37,644 | 34,214 | ||||
Interest Expense | ||||||
Interest on deposits | 4,326 | 3,429 | ||||
Interest on short-term borrowings | 460 | 157 | ||||
Interest on long-term debt | 211 | 181 | ||||
Total Interest Expense | 4,997 | 3,767 | ||||
Net Interest Income | 32,647 | 30,447 | ||||
Provision for loan losses | 181 | 681 | ||||
Net Interest Income After Provision for Loan Losses | 32,466 | 29,766 | ||||
Non-Interest Income | ||||||
Net gains on sale of investment securities | — | 4,276 | ||||
Service charges | 6,862 | 6,730 | ||||
Bankcard revenue | 4,334 | 4,140 | ||||
Trust and investment management fee income | 1,568 | 1,386 | ||||
Bank owned life insurance | 821 | 1,229 | ||||
Other income | 907 | 746 | ||||
Total Non-Interest Income | 14,492 | 18,507 | ||||
Non-Interest Expense | ||||||
Salaries and employee benefits | 13,151 | 12,948 | ||||
Occupancy related expense | 2,404 | 2,473 | ||||
Equipment and software related expense | 1,831 | 1,890 | ||||
FDIC insurance expense | 315 | 375 | ||||
Advertising | 787 | 733 | ||||
Bankcard expenses | 1,076 | 943 | ||||
Postage, delivery, and statement mailings | 578 | 555 | ||||
Office supplies | 313 | 361 | ||||
Legal and professional fees | 450 | 449 | ||||
Telecommunications | 500 | 484 | ||||
Repossessed asset losses, net of expenses | 370 | 336 | ||||
Other expenses | 3,162 | 3,053 | ||||
Total Non-Interest Expense | 24,937 | 24,600 | ||||
Income Before Income Taxes | 22,021 | 23,673 | ||||
Income tax expense | 4,405 | 7,647 | ||||
Net Income Available to Common Shareholders | $ | 17,616 | $ | 16,026 | ||
Total Comprehensive Income | $ | 9,398 | $ | 16,899 | ||
Average shares outstanding, basic | 15,414 | 15,252 | ||||
Effect of dilutive securities | 22 | 25 | ||||
Average shares outstanding, diluted | 15,436 | 15,277 | ||||
Basic earnings per common share | $ | 1.13 | $ | 1.04 | ||
Diluted earnings per common share | $ | 1.13 | $ | 1.04 | ||
Dividends declared per common share | $ | 0.46 | $ | 0.44 |
Three Months Ended | ||||||
March 31, | ||||||
2018 | 2017 | |||||
Net income | $ | 17,616 | $ | 16,026 | ||
Unrealized (losses) gains on available-for-sale securities arising during the period | (10,712 | ) | 5,660 | |||
Reclassification adjustment for gains | — | (4,276 | ) | |||
Other comprehensive (loss) income before income taxes | (10,712 | ) | 1,384 | |||
Tax effect | 2,494 | (511 | ) | |||
Other comprehensive income (loss), net of tax | (8,218 | ) | 873 | |||
Comprehensive Income, Net of Tax | $ | 9,398 | $ | 16,899 |
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||
Balance at December 31, 2016 | $ | 46,518 | $ | 112,873 | $ | 417,017 | $ | (126,958 | ) | $ | (7,012 | ) | $ | 442,438 | |||||||||
Net income | — | — | 16,026 | — | — | 16,026 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 873 | 873 | |||||||||||||||||
Cash dividends declared ($0.44 per share) | — | — | (6,917 | ) | — | — | (6,917 | ) | |||||||||||||||
Stock-based compensation expense | — | 780 | — | — | — | 780 | |||||||||||||||||
Restricted awards granted | — | (638 | ) | — | 638 | — | — | ||||||||||||||||
Issuance of 440,604 shares of common stock | 1,101 | 27,307 | — | — | — | 28,408 | |||||||||||||||||
Exercise of 1,250 stock options | — | (17 | ) | — | 55 | — | 38 | ||||||||||||||||
Balance at March 31, 2017 | $ | 47,619 | $ | 140,305 | $ | 426,126 | $ | (126,265 | ) | $ | (6,139 | ) | $ | 481,646 |
Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||
Balance at December 31, 2017 | $ | 47,619 | $ | 140,960 | $ | 444,481 | $ | (124,909 | ) | $ | (5,644 | ) | $ | 502,507 | |||||||||
Net income | — | — | 17,616 | — | — | 17,616 | |||||||||||||||||
Other comprehensive income | — | — | — | — | (8,218 | ) | (8,218 | ) | |||||||||||||||
Adoption of new accounting pronouncement (see Note B) | 2,657 | (2,657 | ) | — | |||||||||||||||||||
Cash dividends declared ($0.46 per share) | — | — | (7,104 | ) | — | — | (7,104 | ) | |||||||||||||||
Stock-based compensation expense | — | 793 | — | — | — | 793 | |||||||||||||||||
Restricted awards granted | — | (1,135 | ) | — | 1,135 | — | — | ||||||||||||||||
Exercise of 7,388 stock options | — | (71 | ) | — | 351 | — | 280 | ||||||||||||||||
Purchase of 204,327 treasury shares | — | — | — | (13,997 | ) | — | (13,997 | ) | |||||||||||||||
Balance at March 31, 2018 | $ | 47,619 | $ | 140,547 | $ | 457,650 | $ | (137,420 | ) | $ | (16,519 | ) | $ | 491,877 |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Net income | $ | 17,616 | $ | 16,026 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Accretion and amortization | 410 | 361 | |||||
Provision for loan losses | 181 | 681 | |||||
Depreciation of premises and equipment | 1,270 | 1,525 | |||||
Deferred income tax expense | 287 | 2,931 | |||||
Net periodic employee benefit cost | 111 | 114 | |||||
Realized investment securities gains | — | (4,276 | ) | ||||
Stock-compensation expense | 793 | 780 | |||||
Excess tax benefit from stock-compensation expense | (155 | ) | (189 | ) | |||
Proceeds from life insurance | 210 | 1,137 | |||||
Increase in value of bank-owned life insurance | (612 | ) | (749 | ) | |||
Loans originated for sale | (2,606 | ) | (3,951 | ) | |||
Proceeds from the sale of loans originated for sale | 2,874 | 6,118 | |||||
Gain on sale of loans | (79 | ) | (167 | ) | |||
Change in accrued interest receivable | (305 | ) | (236 | ) | |||
Change in other assets | (11,128 | ) | (131 | ) | |||
Change in other liabilities | 3,504 | 383 | |||||
Net Cash Provided by Operating Activities | 12,371 | 20,357 | |||||
Proceeds from sales of securities available-for-sale | — | 5,576 | |||||
Proceeds from maturities and calls of securities available-for-sale | 21,230 | 23,390 | |||||
Proceeds from maturities and calls of securities held-to-maturity | 2,142 | 2,823 | |||||
Purchases of securities available-for-sale | (35,721 | ) | (39,747 | ) | |||
Net increase in loans | (10,827 | ) | (30,826 | ) | |||
Purchases of premises and equipment | (1,561 | ) | (2,111 | ) | |||
Disposals of premises and equipment | 55 | 1,781 | |||||
Net Cash (Used in) Investing Activities | (24,682 | ) | (39,114 | ) | |||
Net increase in non-interest-bearing deposits | 36,570 | 42,505 | |||||
Net increase in interest-bearing deposits | 94,758 | 118,616 | |||||
Net (decrease) in short-term borrowings | (56,844 | ) | (61,619 | ) | |||
Proceeds from issuance of common stock | — | 28,408 | |||||
Purchases of treasury stock | (13,997 | ) | — | ||||
Proceeds from exercise of stock options | 280 | 38 | |||||
Dividends paid | (7,186 | ) | (6,518 | ) | |||
Net Cash Provided by Financing Activities | 53,581 | 121,430 | |||||
Increase in Cash and Cash Equivalents | 41,270 | 102,673 | |||||
Cash and cash equivalents at beginning of period | 82,508 | 88,139 | |||||
Cash and Cash Equivalents at End of Period | $ | 123,778 | $ | 190,812 |
March 31, 2018 | December 31, 2017 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||
U.S. Treasuries and U.S. | ||||||||||||||||||||||||
government agencies | $ | 1 | $ | — | $ | — | $ | 1 | $ | 2 | $ | — | $ | — | $ | 2 | ||||||||
Obligations of states and | ||||||||||||||||||||||||
political subdivisions | 94,474 | 709 | 1,010 | 94,173 | 94,552 | 2,051 | 407 | 96,196 | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
U.S. government agencies | 442,044 | 462 | 15,112 | 427,394 | 425,559 | 1,093 | 7,305 | 419,347 | ||||||||||||||||
Private label | 599 | 3 | — | 602 | 649 | 3 | — | 652 | ||||||||||||||||
Trust preferred securities | 4,767 | 26 | — | 4,793 | 4,764 | 26 | 54 | 4,736 | ||||||||||||||||
Corporate securities(1) | 17,102 | 98 | — | 17,200 | 21,916 | 475 | 123 | 22,268 | ||||||||||||||||
Total Debt Securities | 558,987 | 1,298 | 16,122 | 544,163 | 547,442 | 3,648 | 7,889 | 543,201 | ||||||||||||||||
Marketable equity securities | — | — | — | — | 2,136 | 3,563 | — | 5,699 | ||||||||||||||||
Investment funds | 1,525 | — | 60 | 1,465 | 1,525 | — | 36 | 1,489 | ||||||||||||||||
Total Securities | ||||||||||||||||||||||||
Available-for-Sale | $ | 560,512 | $ | 1,298 | $ | 16,182 | $ | 545,628 | $ | 551,103 | $ | 7,211 | $ | 7,925 | $ | 550,389 |
Securities held-to-maturity: | ||||||||||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||
U.S. government agencies | $ | 58,277 | $ | 88 | $ | 219 | $ | 58,146 | $ | 60,449 | $ | 1,222 | $ | 25 | $ | 61,646 | ||||||||
Trust preferred securities | 4,000 | — | — | 4,000 | 4,000 | — | — | 4,000 | ||||||||||||||||
Total Securities | ||||||||||||||||||||||||
Held-to-Maturity | $ | 62,277 | $ | 88 | $ | 219 | $ | 62,146 | $ | 64,449 | $ | 1,222 | $ | 25 | $ | 65,646 |
Other investment securities: | ||||||||||||||||||||||||
Non-marketable equity securities | $ | 11,581 | $ | — | $ | — | $ | 11,581 | $ | 14,147 | $ | — | $ | — | $ | 14,147 | ||||||||
Marketable equity securities(1) | 6,947 | — | — | 10,584 | — | — | — | — | ||||||||||||||||
Total Other Investment | ||||||||||||||||||||||||
Securities | $ | 18,528 | $ | — | $ | — | $ | 22,165 | $ | 14,147 | $ | — | $ | — | $ | 14,147 | ||||||||
(1) Effective January 1, 2018, the Company's equity and perpetual preferred securities are measured at fair value through net income. |
March 31, 2018 | ||||||||||||||||||
Less Than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | |||||||||||||
Securities available-for-sale: | ||||||||||||||||||
Obligations of states and political subdivisions | $ | 24,204 | $ | 211 | $ | 18,955 | $ | 799 | $ | 43,159 | $ | 1,010 | ||||||
Mortgage-backed securities: | ||||||||||||||||||
U.S. Government agencies | 266,824 | 7,208 | 134,047 | 7,904 | 400,871 | 15,112 | ||||||||||||
Corporate securities | — | — | — | — | — | — | ||||||||||||
Investment funds | 1,500 | 60 | — | — | 1,500 | 60 | ||||||||||||
Total available-for-sale | $ | 292,528 | $ | 7,479 | $ | 153,002 | $ | 8,703 | $ | 445,530 | $ | 16,182 | ||||||
Securities held-to-maturity: | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
U.S. Government Agencies | $ | 39,433 | $ | 219 | $ | — | $ | — | $ | 39,433 | $ | 219 | ||||||
Total held-to-maturity | $ | 39,433 | $ | 219 | $ | — | $ | — | $ | 39,433 | $ | 219 |
December 31, 2017 | ||||||||||||||||||
Less Than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | |||||||||||||
Securities available-for-sale: | ||||||||||||||||||
Obligations of states and political subdivisions | $ | 4,913 | $ | 28 | $ | 19,440 | $ | 379 | $ | 24,353 | $ | 407 | ||||||
Mortgage-backed securities: | ||||||||||||||||||
U.S. Government agencies | 172,807 | 1,887 | 140,226 | 5,418 | 313,033 | 7,305 | ||||||||||||
Trust preferred securities | 4,475 | 54 | — | — | 4,475 | 54 | ||||||||||||
Corporate securities | 3,357 | 49 | 2,350 | 74 | 5,707 | 123 | ||||||||||||
Investment funds | 1,500 | 36 | — | — | 1,500 | 36 | ||||||||||||
Total available-for-sale | $ | 187,052 | $ | 2,054 | $ | 162,016 | $ | 5,871 | $ | 349,068 | $ | 7,925 | ||||||
Securities held-to-maturity | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
U.S. Government agencies | $ | 7,182 | $ | 25 | $ | — | $ | — | $ | 7,182 | $ | 25 | ||||||
Total held-to-maturity | $ | 7,182 | $ | 25 | $ | — | $ | — | $ | 7,182 | $ | 25 |
Amortized Cost | Estimated Fair Value | |||||
Securities Available-for-Sale | ||||||
Due in one year or less | $ | 2,715 | $ | 2,715 | ||
Due after one year through five years | 13,888 | 13,850 | ||||
Due after five years through ten years | 76,197 | 73,698 | ||||
Due after ten years | 470,998 | 458,604 | ||||
Total | $ | 563,798 | $ | 548,867 | ||
Securities Held-to-Maturity | ||||||
Due in one year or less | $ | — | $ | — | ||
Due after one year through five years | — | — | ||||
Due after five years through ten years | — | — | ||||
Due after ten years | 62,277 | 62,146 | ||||
Total | $ | 62,277 | $ | 62,146 |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Equity and perpetual preferred security unrealized gains recognized | $ | 180 | $ | — | ||
Gross realized gains on securities sold | — | 4,276 | ||||
Gross realized losses on securities sold | — | — | ||||
Net investment security gains | $ | — | $ | 4,276 |
March 31, 2018 | December 31, 2017 | |||||
Residential real estate | $ | 1,465,215 | $ | 1,468,278 | ||
Home equity | 138,477 | 139,499 | ||||
Commercial and industrial | 204,592 | 208,484 | ||||
Commercial real estate | 1,296,304 | 1,277,576 | ||||
Consumer | 29,570 | 29,162 | ||||
DDA overdrafts | 3,523 | 4,411 | ||||
Gross loans | 3,137,681 | 3,127,410 | ||||
Allowance for loan losses | (18,381 | ) | (18,836 | ) | ||
Net loans | $ | 3,119,300 | $ | 3,108,574 |
Commercial and | Commercial | Residential | DDA | ||||||||||||||||||
Industrial | Real Estate | Real Estate | Home Equity | Consumer | Overdrafts | Total | |||||||||||||||
Three months ended March 31, 2018 | |||||||||||||||||||||
Allowance for loan loss | |||||||||||||||||||||
Beginning balance | $ | 4,571 | $ | 6,183 | $ | 5,212 | $ | 1,138 | $ | 62 | $ | 1,670 | $ | 18,836 | |||||||
Charge-offs | (339 | ) | (157 | ) | (131 | ) | (71 | ) | (99 | ) | (636 | ) | (1,433 | ) | |||||||
Recoveries | 2 | 223 | 106 | — | 46 | 420 | 797 | ||||||||||||||
Provision for acquired loans | — | — | — | — | — | — | — |
Provision | 529 | (480 | ) | (244 | ) | 133 | 203 | 40 | 181 | ||||||||||||
Ending balance | $ | 4,763 | $ | 5,769 | $ | 4,943 | $ | 1,200 | $ | 212 | $ | 1,494 | $ | 18,381 | |||||||
Three months ended March 31, 2017 | |||||||||||||||||||||
Allowance for loan loss | |||||||||||||||||||||
Beginning balance | $ | 4,206 | $ | 6,573 | $ | 6,680 | $ | 1,417 | $ | 82 | $ | 772 | $ | 19,730 | |||||||
Charge-offs | (53 | ) | (180 | ) | (626 | ) | (121 | ) | (6 | ) | (636 | ) | (1,622 | ) | |||||||
Recoveries | 2 | 11 | 25 | — | 11 | 371 | 420 | ||||||||||||||
Provision for acquired loans | — | (19 | ) | — | — | — | — | (19 | ) | ||||||||||||
Provision | 128 | (381 | ) | 644 | 3 | (23 | ) | 329 | 700 | ||||||||||||
Ending balance | $ | 4,283 | $ | 6,004 | $ | 6,723 | $ | 1,299 | $ | 64 | $ | 836 | $ | 19,209 | |||||||
As of March 31, 2018 | |||||||||||||||||||||
Allowance for loan loss | |||||||||||||||||||||
Evaluated for impairment: | |||||||||||||||||||||
Individually | $ | — | $ | 172 | $ | — | $ | — | $ | — | $ | — | $ | 172 | |||||||
Collectively | 4,759 | 5,530 | 4,843 | 1,200 | 208 | 1,494 | 18,034 | ||||||||||||||
Acquired with deteriorated credit quality | 4 | 67 | 100 | — | 4 | — | 175 | ||||||||||||||
Total | $ | 4,763 | $ | 5,769 | $ | 4,943 | $ | 1,200 | $ | 212 | $ | 1,494 | $ | 18,381 | |||||||
Loans | |||||||||||||||||||||
Evaluated for impairment: | |||||||||||||||||||||
Individually | $ | 849 | $ | 8,757 | $ | — | $ | — | $ | — | $ | — | $ | 9,606 | |||||||
Collectively | 203,537 | 1,282,064 | 1,462,622 | 138,477 | 29,454 | 3,523 | 3,119,677 | ||||||||||||||
Acquired with deteriorated credit quality | 206 | 5,483 | 2,593 | — | 116 | — | 8,398 | ||||||||||||||
Total | $ | 204,592 | $ | 1,296,304 | $ | 1,465,215 | $ | 138,477 | $ | 29,570 | $ | 3,523 | $ | 3,137,681 | |||||||
As of December 31, 2017 | |||||||||||||||||||||
Allowance for loan loss | |||||||||||||||||||||
Evaluated for impairment: | |||||||||||||||||||||
Individually | $ | — | $ | 647 | $ | — | $ | — | $ | — | $ | — | $ | 647 | |||||||
Collectively | 4,567 | 5,313 | 5,112 | 1,138 | 58 | 1,670 | 17,858 | ||||||||||||||
Acquired with deteriorated credit quality | 4 | 223 | 100 | — | 4 | — | 331 | ||||||||||||||
Total | $ | 4,571 | $ | 6,183 | $ | 5,212 | $ | 1,138 | $ | 62 | $ | 1,670 | $ | 18,836 | |||||||
Loans | |||||||||||||||||||||
Evaluated for impairment: | |||||||||||||||||||||
Individually | $ | 849 | $ | 8,818 | $ | — | $ | — | $ | — | $ | — | $ | 9,667 | |||||||
Collectively | 207,429 | 1,263,076 | 1,465,685 | 139,499 | 29,046 | 4,411 | 3,109,146 | ||||||||||||||
Acquired with deteriorated credit quality | 206 | 5,682 | 2,593 | — | 116 | — | 8,597 | ||||||||||||||
Total | $ | 208,484 | $ | 1,277,576 | $ | 1,468,278 | $ | 139,499 | $ | 29,162 | $ | 4,411 | $ | 3,127,410 |
Risk Rating | Description |
Pass ratings: | |
(a) Exceptional | Loans classified as exceptional are secured with liquid collateral conforming to the internal loan policy. Loans rated within this category pose minimal risk of loss to the bank. |
(b) Good | Loans classified as good have similar characteristics that include a strong balance sheet, satisfactory debt service coverage ratios, strong management and/or guarantors, and little exposure to economic cycles. Loans in this category generally have a low chance of loss to the bank. |
(c) Acceptable | Loans classified as acceptable have acceptable liquidity levels, adequate debt service coverage ratios, experienced management, and have average exposure to economic cycles. Loans within this category generally have a low risk of loss to the bank. |
(d) Pass/watch | Loans classified as pass/watch have erratic levels of leverage and/or liquidity, cash flow is volatile and the borrower is subject to moderate economic risk. A borrower in this category poses a low to moderate risk of loss to the bank. |
Special mention | Loans classified as special mention have a potential weakness(es) that deserves management’s close attention. The potential weakness could result in deterioration of the loan repayment or the bank’s credit position at some future date. A loan rated in this category poses a moderate loss risk to the bank. |
Substandard | Loans classified as substandard reflect a customer with a well defined weakness that jeopardizes the liquidation of the debt. Loans in this category have the possibility that the bank will sustain some loss if the deficiencies are not corrected and the bank’s collateral value is weakened by the financial deterioration of the borrower. |
Doubtful | Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that make collection of the full contract amount highly improbable. Loans rated in this category are most likely to cause the bank to have a loss due to a collateral shortfall or a negative capital position. |
Commercial and Industrial | Commercial Real Estate | Total | |||||||
March 31, 2018 | |||||||||
Pass | $ | 171,815 | $ | 1,252,937 | $ | 1,424,752 | |||
Special mention | 25,524 | 7,078 | 32,602 | ||||||
Substandard | 7,253 | 36,289 | 43,542 | ||||||
Doubtful | — | — | — | ||||||
Total | $ | 204,592 | $ | 1,296,304 | $ | 1,500,896 | |||
December 31, 2017 | |||||||||
Pass | $ | 175,951 | $ | 1,231,256 | $ | 1,407,207 | |||
Special mention | 25,872 | 8,068 | 33,940 | ||||||
Substandard | 6,661 | 38,252 | 44,913 | ||||||
Doubtful | — | — | — | ||||||
Total | $ | 208,484 | $ | 1,277,576 | $ | 1,486,060 |
Performing | Non-Performing | Total | |||||||
March 31, 2018 | |||||||||
Residential real estate | $ | 1,461,802 | $ | 3,413 | $ | 1,465,215 | |||
Home equity | 138,341 | 136 | 138,477 | ||||||
Consumer | 29,570 | — | 29,570 | ||||||
DDA overdrafts | 3,523 | — | 3,523 | ||||||
Total | $ | 1,633,236 | $ | 3,549 | $ | 1,636,785 | |||
December 31, 2017 | |||||||||
Residential real estate | $ | 1,465,445 | $ | 2,833 | $ | 1,468,278 | |||
Home equity | 139,239 | 260 | 139,499 | ||||||
Consumer | 29,162 | — | 29,162 | ||||||
DDA overdrafts | 4,411 | — | 4,411 | ||||||
Total | $ | 1,638,257 | $ | 3,093 | $ | 1,641,350 |
March 31, 2018 | ||||||||||||||||||
Accruing | ||||||||||||||||||
Current | 30-59 days | 60-89 days | Over 90 days | Non-accrual | Total | |||||||||||||
Residential real estate | $ | 1,456,243 | $ | 4,353 | $ | 1,206 | $ | 82 | $ | 3,331 | $ | 1,465,215 | ||||||
Home equity | 137,727 | 458 | 157 | 1 | 134 | 138,477 | ||||||||||||
Commercial and industrial | 203,468 | 61 | — | — | 1,063 | 204,592 | ||||||||||||
Commercial real estate | 1,289,722 | 1,520 | — | — | 5,062 | 1,296,304 | ||||||||||||
Consumer | 29,549 | 21 | — | — | — | 29,570 | ||||||||||||
DDA overdrafts | 3,092 | 422 | 1 | 8 | — | 3,523 | ||||||||||||
Total | $ | 3,119,801 | $ | 6,835 | $ | 1,364 | $ | 91 | $ | 9,590 | $ | 3,137,681 | ||||||
December 31, 2017 | ||||||||||||||||||
Accruing | ||||||||||||||||||
Current | 30-59 days | 60-89 days | Over 90 days | Non-accrual | Total | |||||||||||||
Residential real estate | $ | 1,458,746 | $ | 5,990 | $ | 709 | $ | 19 | $ | 2,814 | $ | 1,468,278 | ||||||
Home equity | 138,480 | 671 | 88 | 92 | 168 | 139,499 | ||||||||||||
Commercial and industrial | 206,447 | 549 | 1 | 142 | 1,345 | 208,484 | ||||||||||||
Commercial real estate | 1,269,520 | 1,841 | 245 | — | 5,970 | 1,277,576 | ||||||||||||
Consumer | 29,108 | 39 | 13 | 2 | — | 29,162 | ||||||||||||
DDA overdrafts | 3,849 | 541 | 14 | 7 | — | 4,411 | ||||||||||||
Total | $ | 3,106,150 | $ | 9,631 | $ | 1,070 | $ | 262 | $ | 10,297 | $ | 3,127,410 |
March 31, 2018 | December 31, 2017 | |||||||||||||||||
Unpaid | Unpaid | |||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | |||||||||||||
Investment | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||
With no related allowance recorded: | ||||||||||||||||||
Commercial and industrial | $ | 849 | $ | 3,013 | $ | — | $ | 849 | $ | 3,013 | $ | — | ||||||
Commercial real estate | 5,782 | 7,607 | — | 3,036 | 4,861 | — | ||||||||||||
Total | $ | 6,631 | $ | 10,620 | $ | — | $ | 3,885 | $ | 7,874 | $ | — | ||||||
With an allowance recorded: | ||||||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Commercial real estate | 2,975 | 2,975 | 172 | 5,782 | 5,782 | 647 | ||||||||||||
Total | $ | 2,975 | $ | 2,975 | $ | 172 | $ | 5,782 | $ | 5,782 | $ | 647 |
Three months ended March 31, | ||||||||||||
2018 | 2017 | |||||||||||
Average | Interest | Average | Interest | |||||||||
Recorded | Income | Recorded | Income | |||||||||
Investment | Recognized | Investment | Recognized | |||||||||
With no related allowance recorded: | ||||||||||||
Commercial and industrial | $ | 774 | — | $ | 1,365 | $ | — | |||||
Commercial real estate | 3,008 | 3 | 3,118 | 5 | ||||||||
Total | $ | 3,782 | $ | 3 | $ | 4,483 | $ | 5 | ||||
With an allowance recorded: | ||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | — | ||||
Commercial real estate | 5,750 | 52 | 2,832 | 19 | ||||||||
Total | $ | 5,750 | $ | 52 | $ | 2,832 | $ | 19 |
March 31, 2018 | December 31, 2017 | |||||||||||||||||
Non- | Non- | |||||||||||||||||
Accruing | Accruing | Total | Accruing | Accruing | Total | |||||||||||||
Commercial and industrial | $ | 125 | $ | — | $ | 125 | $ | 135 | $ | — | $ | 135 | ||||||
Commercial real estate | 8,324 | — | 8,324 | 8,381 | — | 8,381 | ||||||||||||
Residential real estate | 20,786 | 256 | 21,042 | 21,005 | 84 | 21,089 | ||||||||||||
Home equity | 3,015 | 40 | 3,055 | 3,047 | 50 | 3,097 | ||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||
Total | $ | 32,250 | $ | 296 | $ | 32,546 | $ | 32,568 | $ | 134 | $ | 32,702 |
New TDRs | ||||||||||||||||
Three months ended March 31, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Pre | Post | Pre | Post | |||||||||||||
Modification | Modification | Modification | Modification | |||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | |||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | |||||||||||
Commercial and industrial | — | $ | — | $ | — | — | $ | — | $ | — | ||||||
Commercial real estate | — | — | — | 1 | 3,015 | 3,015 | ||||||||||
Residential real estate | 7 | 412 | 412 | 9 | 1,130 | 1,130 | ||||||||||
Home equity | 4 | 77 | 77 | 2 | 58 | 58 | ||||||||||
Consumer | — | — | — | — | — | — | ||||||||||
Total | 11 | $ | 489 | $ | 489 | 12 | $ | 4,203 | $ | 4,203 |
March 31, 2018 | December 31, 2017 | |||||
Junior subordinated debentures owed to City Holding Capital Trust III, due 2038, interest at a rate of 5.62% and 5.09%, respectively | $ | 16,495 | $ | 16,495 |
March 31, 2018 | December 31, 2017 | |||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||
Non-hedging interest rate derivatives: | ||||||||||||
Customer counterparties: | ||||||||||||
Loan interest rate swap - assets | $ | 86,856 | $ | 2,039 | $ | 225,480 | $ | 4,877 | ||||
Loan interest rate swap - liabilities | 426,241 | 19,452 | 314,450 | 9,513 | ||||||||
Financial institution counterparties: | ||||||||||||
Loan interest rate swap - assets | 432,755 | 19,620 | 320,949 | 9,591 | ||||||||
Loan interest rate swap - liabilities | 86,856 | 2,039 | 218,924 | 4,877 | ||||||||
Derivatives designated as hedges of fair value: | ||||||||||||
Financial institution counterparties: | ||||||||||||
Loan interest rate swap - assets | 3,961 | 93 | 4,326 | 34 |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Change in fair value non-hedging interest rate derivatives: | ||||||
Other expense | $ | 90 | $ | 45 | ||
Change in fair value hedging interest rate derivatives: | ||||||
Other expense | 1 | (4 | ) |
Gross Amounts | |||||||||||||||||||||
Not Offset in the | |||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
Total | |||||||||||||||||||||
of Gross | |||||||||||||||||||||
Amounts | |||||||||||||||||||||
Not Offset in | |||||||||||||||||||||
the Statement | |||||||||||||||||||||
of Financial | |||||||||||||||||||||
Position | |||||||||||||||||||||
Netting | Including | ||||||||||||||||||||
Gross | Net Amounts | Adjustment | Applicable | ||||||||||||||||||
Amounts | of Assets | per | Netting | ||||||||||||||||||
Gross | Offset in the | Presented in | Applicable | Agreement | |||||||||||||||||
Amounts of | Statement of | the Statement | Master | Fair Value | and Fair | ||||||||||||||||
Recognized | Financial | of Financial | Netting | of Financial | Value of | ||||||||||||||||
Description | Assets | Position | Position | Arrangements | Collateral | Collateral | Net Amount | ||||||||||||||
(a) | (b) | (c)=(a)-(b) | (d) | (c)-(d) * | |||||||||||||||||
Non-hedging derivative assets: | |||||||||||||||||||||
Interest rate swap agreements - customer counterparties | $ | 2,039 | $ | — | $ | 2,039 | $ | — | $ | 2,039 | $ | 2,039 | $ | — | |||||||
Interest rate swap agreements - financial institution counterparties | $ | 19,620 | $ | — | $ | 19,620 | $ | — | $ | — | $ | — | $ | 19,620 | |||||||
Hedging derivative assets: | |||||||||||||||||||||
Interest rate swap agreements - financial institution counterparties | $ | 93 | $ | — | $ | 93 | $ | — | $ | 70 | $ | 70 | $ | 23 |
Non-hedging derivative liabilities: | |||||||||||||||||||||
Interest rate swap agreements - customer counterparties | $ | 19,452 | $ | — | $ | 19,452 | $ | — | $ | 19,452 | $ | 19,452 | $ | — | |||||||
Interest rate swap agreements - financial institution counterparties | $ | 2,039 | $ | — | $ | 2,039 | $ | — | $ | 14,671 | $ | 14,671 | $ | — | |||||||
* | For instances where the fair value of financial collateral meets or exceeds the amounts presented in the Consolidated Balance Sheets, no value is displayed to represent full collateralization. |
Three months ended March 31, | ||||||||||
2018 | 2017 | |||||||||
Options | Weighted-Average Exercise Price | Options | Weighted-Average Exercise Price | |||||||
Outstanding at January 1 | 87,605 | $ | 47.15 | 86,613 | $ | 41.08 | ||||
Granted | — | — | 17,631 | 66.32 | ||||||
Exercised | (7,387 | ) | 37.85 | (1,250 | ) | 30.38 | ||||
Outstanding at March 31 | 80,218 | $ | 48.00 | 102,994 | $ | 45.53 | ||||
Exerciseable at March 31 | 24,943 | $ | 40.38 | 23,276 | $ | 36.70 |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Proceeds from stock option exercises | $ | 280 | $ | 38 | ||
Intrinsic value of stock options exercised | 220 | 44 | ||||
Stock-based compensation expense associated with stock options | $ | 54 | $ | 65 | ||
At period-end: | March 31, 2018 | |||||
Unrecognized stock-based compensation expense associated with stock options | $ | 328 | ||||
Weighted average period (in years) in which the above amount is expected to be | ||||||
recognized | 2.4 |
Ranges of Exercise Prices | No. of Options Outstanding | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value (in thousands) | No. of Options Currently Exercisable | Weighted-Average Exercise Price of Options Currently Exercisable | Weighted-Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value of Options Currently Exercisable (in thousands) | |||||||||||
$30.00 - $34.99 | 500 | $ | 30.38 | 0.7 | $ | 19 | 500 | $ | 30.38 | 0.7 | $ | 19 | |||||||
35.00 - 39.99 | 15,475 | 37.74 | 4.9 | 477 | 15,475 | 37.74 | 4.9 | 477 | |||||||||||
40.00 - 44.99 | 33,651 | 43.92 | 7.4 | 829 | 4,650 | 44.43 | 6.0 | 112 | |||||||||||
45.00 - 49.99 | 12,961 | 46.61 | 6.9 | 284 | 4,318 | 46.61 | 6.9 | 95 | |||||||||||
50.00 - 70.00 | 17,631 | 66.32 | 8.9 | 40 | — | — | — | — | |||||||||||
80,218 | $ | 1,649 | 24,943 | $ | 703 |
Three months ended March 31, | ||
2017 | ||
Risk-free interest rate | 2.12 | % |
Expected dividend yield | 2.60 | % |
Volatility factor | 25.80 | % |
Expected life of option | 7.0 years |
Three months ended March 31, | ||||||||||
2018 | 2017 | |||||||||
Restricted Awards | Average Market Price at Grant | Restricted Awards | Average Market Price at Grant | |||||||
Outstanding at January 1 | 170,033 | $ | 44.34 | 180,622 | $ | 39.31 | ||||
Granted | 23,163 | 68.63 | 10,609 | 66.33 | ||||||
Forfeited | — | — | (750 | ) | 42.05 | |||||
Vested | (20,864 | ) | 40.44 | (18,438 | ) | 37.50 | ||||
Outstanding at March 31 | 172,332 | $ | 48.08 | 172,043 | $ | 41.16 |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Stock-based compensation expense associated with restricted shares | $ | 379 | $ | 355 | ||
At period-end: | March 31, 2018 | |||||
Unrecognized stock-based compensation expense associated with restricted shares | $ | 4,432 | ||||
Weighted average period (in years) in which the above amount is expected to be | ||||||
recognized | 3.5 |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Components of net periodic cost: | ||||||
Interest cost | $ | 147 | $ | 193 | ||
Expected return on plan assets | (270 | ) | (294 | ) | ||
Net amortization and deferral | 218 | 215 | ||||
Net Periodic Pension Cost | $ | 95 | $ | 114 | ||
401(k) Plan expense | $ | 218 | $ | 251 | ||
Defined Benefit Plan contributions | $ | — | $ | — |
Note I – | Commitments and Contingencies |
March 31, 2018 | December 31, 2017 | |||||
Commitments to extend credit: | ||||||
Home equity lines | $ | 196,946 | $ | 194,477 | ||
Commercial real estate | 45,832 | 66,901 | ||||
Other commitments | 159,622 | 184,895 | ||||
Standby letters of credit | 7,098 | 7,151 | ||||
Commercial letters of credit | 863 | 831 |
Note J – | Accumulated Other Comprehensive Loss |
Accumulated Other Comprehensive Income (Loss) | |||||||||
Unrealized | |||||||||
Gains (Losses) on | |||||||||
Defined Benefit | Securities | ||||||||
Pension Plans | Available-for-Sale | Total | |||||||
Balance at December 31, 2016 | $ | (4,660 | ) | $ | (2,352 | ) | $ | (7,012 | ) |
Other comprehensive income before reclassifications | — | 3,571 | 3,571 | ||||||
Amounts reclassified from other comprehensive loss | — | (2,698 | ) | (2,698 | ) | ||||
— | 873 | 873 | |||||||
Balance at March 31, 2017 | $ | (4,660 | ) | $ | (1,479 | ) | $ | (6,139 | ) |
Balance at December 31, 2017 | $ | (5,033 | ) | $ | (611 | ) | $ | (5,644 | ) |
Other comprehensive loss before reclassifications | — | (8,218 | ) | (8,218 | ) | ||||
Amounts reclassified from other comprehensive loss | — | — | — | ||||||
— | (8,218 | ) | (8,218 | ) | |||||
Adoption of new accounting pronouncement | — | (2,657 | ) | (2,657 | ) | ||||
Balance at March 31, 2018 | $ | (5,033 | ) | $ | (11,486 | ) | $ | (16,519 | ) |
Amount reclassified from Other Comprehensive Loss | |||||||
Three months ended | Affected line item | ||||||
March 31, | in the Statements | ||||||
2018 | 2017 | of Income | |||||
Securities available-for-sale: | |||||||
Net unrealized securities gains (losses) reclassified into earnings | $ | — | $ | (4,276 | ) | Security gains (losses) | |
Related income tax expense | — | 1,578 | Income tax expense | ||||
Net effect on accumulated other comprehensive loss | $ | — | $ | (2,698 | ) |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Net income available to common shareholders | $ | 17,616 | $ | 16,026 | ||
Less: earnings allocated to participating securities | (195 | ) | (177 | ) | ||
Net earnings allocated to common shareholders | $ | 17,421 | $ | 15,849 | ||
Distributed earnings allocated to common stock | $ | 7,023 | $ | 6,782 | ||
Undistributed earnings allocated to common stock | 10,398 | 9,067 | ||||
Net earnings allocated to common shareholders | $ | 17,421 | $ | 15,849 | ||
Average shares outstanding | 15,414 | 15,252 | ||||
Effect of dilutive securities: | ||||||
Employee stock awards | 22 | 25 | ||||
Shares for diluted earnings per share | 15,436 | 15,277 | ||||
Basic earnings per share | $ | 1.13 | $ | 1.04 | ||
Diluted earnings per share | $ | 1.13 | $ | 1.04 |
Total | Level 1 | Level 2 | Level 3 | Total Gains (Losses) | |||||||||||
March 31, 2018 | |||||||||||||||
Recurring fair value measurements | |||||||||||||||
Financial Assets | |||||||||||||||
U.S. Government agencies | $ | 1 | $ | — | $ | 1 | $ | — | |||||||
Obligations of states and political subdivisions | 94,173 | — | 94,173 | — | |||||||||||
Mortgage-backed securities: | |||||||||||||||
U.S. Government agencies | 427,394 | — | 427,394 | — | |||||||||||
Private label | 602 | — | 602 | — | |||||||||||
Trust preferred securities | 4,793 | — | 4,532 | 261 | |||||||||||
Corporate securities | 17,200 | — | 17,200 | — | |||||||||||
Marketable equity securities | 10,584 | 10,584 | — | — | |||||||||||
Investment funds | 1,465 | 1,465 | — | — | |||||||||||
Derivative assets | 21,752 | — | 21,752 | — | |||||||||||
Financial Liabilities | |||||||||||||||
Derivative liabilities | 21,491 | — | 21,491 | — | |||||||||||
Nonrecurring fair value measurements | |||||||||||||||
Financial Assets | |||||||||||||||
Impaired loans | $ | 9,434 | $ | — | $ | — | $ | 9,434 | $ | (172 | ) | ||||
Non-Financial Assets | |||||||||||||||
Other real estate owned | 3,912 | — | — | 3,912 | (225 | ) | |||||||||
December 31, 2017 | |||||||||||||||
Recurring fair value measurements | |||||||||||||||
Financial Assets | |||||||||||||||
U.S. Government agencies | $ | 2 | $ | — | $ | 2 | $ | — | |||||||
Obligations of states and political subdivisions | 96,196 | — | 96,196 | — | |||||||||||
Mortgage-backed securities: | |||||||||||||||
U.S. Government agencies | 419,347 | — | 419,347 | — | |||||||||||
Private label | 652 | — | 652 | — | |||||||||||
Trust preferred securities | 4,736 | — | 4,475 | 261 | |||||||||||
Corporate securities | 22,268 | — | 22,268 | — | |||||||||||
Marketable equity securities | 5,699 | 5,699 | — | — | |||||||||||
Investment funds | 1,489 | 1,489 | — | — | |||||||||||
Derivative assets | 14,502 | — | 14,502 | — | |||||||||||
Financial Liabilities | |||||||||||||||
Derivative liabilities | 14,390 | — | 14,390 | — | |||||||||||
Nonrecurring fair value measurements | |||||||||||||||
Financial Assets | |||||||||||||||
Impaired loans | $ | 9,020 | $ | — | $ | — | $ | 9,020 | $ | (647 | ) | ||||
Non-Financial Assets | |||||||||||||||
Other real estate owned | 3,585 | — | — | 3,585 | (374 | ) | |||||||||
Other assets | — | — | — | — | (170 | ) |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Beginning balance | $ | 261 | $ | 2,535 | ||
Included in other comprehensive income | — | (977 | ) | |||
Dispositions | — | (1,300 | ) | |||
Transfers into Level 3 | — | — | ||||
Ending balance | $ | 261 | $ | 258 |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Beginning balance | $ | 9,020 | $ | 6,916 | ||
Loans classified as impaired during the period | — | 3,015 | ||||
Specific valuation allowance allocations | — | — | ||||
Loans classified as impaired during the period, net of specific valuation allowances | — | 3,015 | ||||
(Additional) reduction in specific valuation allowance allocations | (474 | ) | (29 | ) | ||
Paydowns, payoffs, other activity | 888 | (301 | ) | |||
Ending balance | $ | 9,434 | $ | 9,601 |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Beginning balance | $ | 3,585 | $ | 4,588 | ||
OREO remeasured at initial recognition: | ||||||
Carrying value of foreclosed assets prior to remeasurement | 1,218 | 1,226 | ||||
Charge-offs recognized in the allowance for loan losses | (353 | ) | (442 | ) | ||
Fair value | 865 | 784 | ||||
OREO remeasured subsequent to initial recognition: | ||||||
Carrying value of foreclosed assets prior to remeasurement | 1,362 | 1,464 | ||||
Fair value | 1,137 | 1,273 | ||||
Write-downs included in other non-interest expense | (225 | ) | (191 | ) | ||
Disposed | (313 | ) | (776 | ) | ||
Ending balance | $ | 3,912 | $ | 4,405 |
Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
March 31, 2018 | |||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 123,778 | $ | 123,778 | $ | 123,778 | $ | — | $ | — | |||||
Securities available-for-sale | 545,628 | 545,628 | 1,465 | 543,902 | 261 | ||||||||||
Securities held-to-maturity | 62,277 | 62,146 | — | 62,146 | — | ||||||||||
Other securities | 22,165 | 22,165 | 10,584 | 11,581 | — | ||||||||||
Net loans | 3,119,300 | 3,076,380 | — | — | 3,076,380 | ||||||||||
Accrued interest receivable | 9,528 | 9,528 | 9,528 | — | — | ||||||||||
Derivative assets | 21,752 | 21,752 | — | 21,752 | — | ||||||||||
Liabilities: | |||||||||||||||
Deposits | 3,446,962 | 3,437,168 | 2,336,430 | 1,100,738 | — | ||||||||||
Short-term debt | 195,375 | 195,375 | — | 195,375 | — | ||||||||||
Long-term debt | 16,495 | 16,432 | — | 16,432 | — | ||||||||||
Derivative liabilities | 21,491 | 21,491 | — | 21,491 | — | ||||||||||
December 31, 2017 | |||||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | 82,508 | 82,508 | 82,508 | — | — | ||||||||||
Securities available-for-sale | 550,389 | 550,389 | 7,188 | 542,940 | 261 | ||||||||||
Securities held-to-maturity | 64,449 | 65,646 | — | 65,646 | — | ||||||||||
Other securities | 14,147 | 14,147 | — | 14,147 | — | ||||||||||
Net loans | 3,108,574 | 3,014,425 | — | — | 3,014,425 | ||||||||||
Accrued interest receivable | 9,223 | 9,223 | 9,223 | — | — | ||||||||||
Derivative assets | 14,502 | 14,502 | — | 14,502 | — | ||||||||||
Liabilities: | |||||||||||||||
Deposits | 3,315,634 | 3,309,910 | 2,232,159 | 1,077,751 | — | ||||||||||
Short-term debt | 252,219 | 252,219 | — | 252,219 | — | ||||||||||
Long-term debt | 16,495 | 16,444 | — | 16,444 | — | ||||||||||
Derivative liabilities | 14,390 | 14,390 | — | 14,390 | — |
Three months ended March 31, 2018 | |||
Non-interest income | |||
Non-interest income from contracts with customers | $ | 13,465 | |
Non-interest income within the scope of other GAAP topics | 1,027 | ||
Total non-interest income | $ | 14,492 |
Point of Revenue | Three months ended | |||
Recognition | March 31, 2018 | |||
Major revenue streams | ||||
Service charges | At a point in time & over time | $ | 6,862 | |
Bankcard revenue | At a point in time | 4,334 | ||
Trust and investment management fee income | Over time | 1,568 | ||
Other income | At a point in time & over time | 701 | ||
Net revenue from contracts with customers | 13,465 | |||
Non-interest income within the scope of other GAAP topics | 1,027 | |||
Total non-interest income | $ | 14,492 |
Item 2 - | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Net income available to common shareholders (in thousands) | $ | 17,616 | $ | 16,026 | ||
Earnings per common share, basic | $ | 1.13 | $ | 1.04 | ||
Earnings per common share, diluted | $ | 1.13 | $ | 1.04 | ||
Dividend payout ratio | 40.8 | % | 42.4 | % | ||
ROA* | 1.69 | % | 1.60 | % | ||
ROE* | 14.0 | % | 13.7 | % | ||
Average equity to average assets ratio | 12.0 | % | 11.7 | % |
March 31, | December 31, | ||||||||||
2018 | 2017 | $ Change | % Change | ||||||||
Cash and cash equivalents | $ | 123.8 | $ | 82.5 | $ | 41.3 | 50.1 | % | |||
Gross loans | 3,137.7 | 3,127.4 | 10.3 | 0.3 | % | ||||||
Other assets | 47.4 | 36.4 | 11.0 | 30.2 | % | ||||||
Total deposits | 3,447.0 | 3,315.6 | 131.4 | 4.0 | % | ||||||
Federal Funds purchased | — | 54.0 | (54.0 | ) | (100.0 | )% | |||||
Shareholders' Equity | 491.9 | 502.5 | (10.6 | ) | (2.1 | )% |
Assets | Three months ended March 31, | |||||||||||||||
2018 | 2017 | |||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||
Loan portfolio(1): | ||||||||||||||||
Residential real estate(2) | $ | 1,603,911 | $ | 16,479 | 4.17 | % | $ | 1,591,254 | $ | 15,479 | 3.95 | % | ||||
Commercial, financial, and agriculture(2) | 1,496,817 | 15,608 | 4.23 | 1,429,075 | 13,584 | 3.85 | ||||||||||
Installment loans to individuals(2),(3) | 33,076 | 504 | 6.18 | 35,650 | 595 | 6.77 | ||||||||||
Previously securitized loans(4) | *** | 327 | *** | *** | 447 | *** | ||||||||||
Total loans | 3,133,804 | 32,918 | 4.26 | 3,055,979 | 30,105 | 4.00 | ||||||||||
Securities: | ||||||||||||||||
Taxable | 536,714 | 3,981 | 3.01 | 458,295 | 3,444 | 3.05 | ||||||||||
Tax-exempt(5) | 91,722 | 890 | 3.94 | 84,784 | 1,019 | 4.87 | ||||||||||
Total securities | 628,436 | 4,871 | 3.14 | 543,079 | 4,463 | 3.33 | ||||||||||
Deposits in depository institutions | 29,648 | 42 | 0.57 | 16,826 | 3 | 0.07 | ||||||||||
Total interest-earning assets | 3,791,888 | 37,831 | 4.05 | 3,615,884 | 34,571 | 3.88 | ||||||||||
Cash and due from banks | 71,480 | 81,629 | ||||||||||||||
Bank premises and equipment | 72,716 | 74,768 | ||||||||||||||
Other assets | 245,721 | 253,378 | ||||||||||||||
Less: allowance for loan losses | (19,420 | ) | (20,150 | ) | ||||||||||||
Total assets | $ | 4,162,385 | $ | 4,005,509 | ||||||||||||
Liabilities | ||||||||||||||||
Interest-bearing demand deposits | $ | 782,499 | $ | 357 | 0.19 | % | $ | 708,434 | $ | 157 | 0.09 | % | ||||
Savings deposits | 801,504 | 341 | 0.17 | 831,639 | 324 | 0.16 | ||||||||||
Time deposits(2) | 1,096,157 | 3,628 | 1.34 | 1,052,218 | 2,948 | 1.14 | ||||||||||
Short-term borrowings | 236,605 | 460 | 0.79 | 195,626 | 157 | 0.33 | ||||||||||
Long-term debt | 16,495 | 211 | 5.19 | 16,495 | 181 | 4.45 | ||||||||||
Total interest-bearing liabilities | 2,933,260 | 4,997 | 0.69 | 2,804,412 | 3,767 | 0.54 | ||||||||||
Noninterest-bearing demand deposits | 681,150 | 690,243 | ||||||||||||||
Other liabilities | 46,426 | 43,655 | ||||||||||||||
Stockholders’ equity | 501,549 | 467,199 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,162,385 | $ | 4,005,509 | ||||||||||||
Net interest income | $ | 32,834 | $ | 30,804 | ||||||||||||
Net yield on earning assets | 3.51 | % | 3.45 | % |
(1) | For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest income. | ||||||||
(2) | Included in the above table are the following amounts for the accretion of the fair value adjustments related to the acquisitions of Virginia Savings Bancorp, Inc., Community Financial Corporation and American Founders Bank, Inc.: | ||||||||
Three months ended March 31, | |||||||||
2018 | 2017 | ||||||||
Residential real estate | $ | 110 | $ | 138 | |||||
Commercial, financial and agriculture | 150 | 175 | |||||||
Installment loans to individuals | 10 | 9 | |||||||
Time deposits | — | 16 | |||||||
$ | 270 | $ | 338 | ||||||
(3) | Includes the Company’s consumer and DDA overdrafts loan categories. | ||||||||
(4) | Effective January 1, 2012, the carrying value of the Company's previously securitized loans was reduced to $0. | ||||||||
(5) | Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 21% for the period ending March 31, 2018 and 35% for the periods ending December 31, 2017 and March 31, 2017. |
Three months ended March 31, 2018 vs. 2017 | |||||||||
Interest-earning assets: | Increase (Decrease) Due to Change In: | ||||||||
Volume | Rate | Net | |||||||
Loan portfolio | |||||||||
Residential real estate | $ | 123 | $ | 877 | $ | 1,000 | |||
Commercial, financial, and agriculture | 644 | 1,380 | 2,024 | ||||||
Installment loans to individuals | (43 | ) | (48 | ) | (91 | ) | |||
Previously securitized loans | — | (120 | ) | (120 | ) | ||||
Total loans | 724 | 2,089 | 2,813 | ||||||
Securities: | |||||||||
Taxable | 589 | (52 | ) | 537 | |||||
Tax-exempt(1) | 83 | (212 | ) | (129 | ) | ||||
Total securities | 672 | (264 | ) | 408 | |||||
Deposits in depository institutions | 2 | 37 | 39 | ||||||
Total interest-earning assets | $ | 1,398 | $ | 1,862 | $ | 3,260 | |||
Interest-bearing liabilities: | |||||||||
Interest-bearing demand deposits | $ | 16 | $ | 184 | $ | 200 | |||
Savings deposits | (12 | ) | 29 | 17 | |||||
Time deposits | 123 | 557 | 680 | ||||||
Short-term borrowings | 33 | 270 | 303 | ||||||
Long-term debt | — | 30 | 30 | ||||||
Total interest-bearing liabilities | $ | 160 | $ | 1,070 | $ | 1,230 | |||
Net Interest Income | $ | 1,238 | $ | 792 | $ | 2,030 |
(1) | Fully federal taxable equivalent using a tax rate of approximately 21%. |
Three months ended March 31, | ||||||
2018 | 2017 | |||||
Net interest income (GAAP) | $ | 32,647 | $ | 30,447 | ||
Taxable equivalent adjustment | 187 | 357 | ||||
Net interest income, fully taxable equivalent | $ | 32,834 | $ | 30,804 | ||
Average interest earning assets | $ | 3,791,888 | $ | 3,615,884 | ||
Net interest margin | 3.51 | % | 3.45 | % | ||
Accretion related to fair value adjustments | (0.03 | )% | (0.03 | )% | ||
Net interest margin (excluding accretion) | 3.48 | % | 3.42 | % | ||
ROATCE* | 16.7 | % | 16.5 | % |
March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||
Residential real estate | $ | 1,465,215 | $ | 1,468,278 | $ | 1,444,795 | |||
Home equity | 138,477 | 139,499 | 139,165 | ||||||
Commercial and industrial | 204,592 | 208,484 | 205,011 | ||||||
Commercial real estate | 1,296,304 | 1,277,576 | 1,250,106 | ||||||
Consumer | 29,570 | 29,162 | 32,043 | ||||||
DDA overdrafts | 3,523 | 4,411 | 3,053 | ||||||
Total loans | $ | 3,137,681 | $ | 3,127,410 | $ | 3,074,173 |
Three months ended March 31, | Year ended December 31, | ||||||||
2018 | 2017 | 2017 | |||||||
Balance at beginning of period | $ | 18,836 | $ | 19,730 | $ | 19,730 | |||
Charge-offs: | |||||||||
Commercial and industrial | (339 | ) | (53 | ) | (400 | ) | |||
Commercial real estate | (157 | ) | (180 | ) | (720 | ) | |||
Residential real estate | (131 | ) | (626 | ) | (1,637 | ) | |||
Home equity | (71 | ) | (121 | ) | (403 | ) | |||
Consumer | (99 | ) | (6 | ) | (60 | ) | |||
DDA overdrafts | (636 | ) | (636 | ) | (2,714 | ) | |||
Total charge-offs | (1,433 | ) | (1,622 | ) | (5,934 | ) | |||
Recoveries: | |||||||||
Commercial and industrial | 2 | 2 | 58 | ||||||
Commercial real estate | 223 | 11 | 112 | ||||||
Residential real estate | 106 | 25 | 294 | ||||||
Home equity | — | — | 45 | ||||||
Consumer | 46 | 11 | 63 | ||||||
DDA overdrafts | 420 | 371 | 1,462 | ||||||
Total recoveries | 797 | 420 | 2,034 | ||||||
Net charge-offs | (636 | ) | (1,202 | ) | (3,900 | ) | |||
Provision for purchased credit impaired loans | — | (19 | ) | 2,845 | |||||
Provision for loan losses | 181 | 700 | 161 | ||||||
Balance at end of period | $ | 18,381 | $ | 19,209 | $ | 18,836 | |||
As a Percent of Average Total Loans: | |||||||||
Net charge-offs (annualized) | 0.08 | % | 0.16 | % | 0.13 | % | |||
Provision for loan losses (annualized) | 0.02 | % | 0.09 | % | 0.10 | % | |||
As a Percent of Non-Performing Loans: | |||||||||
Allowance for loan losses | 189.87 | % | 167.70 | % | 178.39 | % | |||
As a Percent of Total Loans: | |||||||||
Allowance for loan losses | 0.59 | % | 0.62 | % | 0.60 | % |
As of March 31, | As of December 31, | ||||||||
2018 | 2017 | 2017 | |||||||
Commercial and industrial | $ | 4,763 | $ | 4,283 | $ | 4,571 | |||
Commercial real estate | 5,769 | 6,004 | 6,183 | ||||||
Residential real estate | 4,943 | 6,723 | 5,212 | ||||||
Home equity | 1,200 | 1,299 | 1,138 | ||||||
Consumer | 212 | 64 | 62 | ||||||
DDA overdrafts | 1,494 | 836 | 1,670 | ||||||
Allowance for Loan Losses | $ | 18,381 | $ | 19,209 | $ | 18,836 |
As of March 31, | December 31, | ||||||||
2018 | 2017 | 2017 | |||||||
Non-accrual loans | $ | 9,590 | $ | 11,418 | $ | 10,297 | |||
Accruing loans past due 90 days or more | 91 | 35 | 262 | ||||||
Total non-performing loans | 9,681 | 11,453 | 10,559 | ||||||
Other real estate owned ("OREO") | 3,912 | 4,405 | 3,585 | ||||||
Total non-performing assets | $ | 13,593 | $ | 15,858 | $ | 14,144 | |||
As a Percent of Loans and Other Real Estate Owned: | |||||||||
Non-performing loans | 0.43 | % | 0.52 | % | 0.45 | % | |||
Past-due loans | $ | 8,291 | $ | 6,170 | $ | 10,964 | |||
As a Percentage of Total Loans | |||||||||
Past-due loans | 0.26 | % | 0.20 | % | 0.35 | % |
As of March 31, | As of December 31, | ||||||||
2018 | 2017 | 2017 | |||||||
Impaired loans with a valuation allowance | $ | 2,975 | $ | 2,832 | $ | 5,782 | |||
Impaired loans with no valuation allowance | 6,631 | 7,405 | 3,885 | ||||||
Total impaired loans | $ | 9,606 | $ | 10,237 | $ | 9,667 | |||
Allowance for loan losses allocated to impaired loans | $ | 172 | $ | 636 | $ | 647 |
As of March 31, | December 31, | ||||||||
2018 | 2017 | 2017 | |||||||
Accruing: | |||||||||
Residential real estate | $ | 20,786 | $ | 20,294 | $ | 21,005 | |||
Home equity | 3,015 | 3,104 | 3,047 | ||||||
Commercial and industrial | 125 | 38 | 135 | ||||||
Commercial real estate | 8,324 | 8,513 | 8,381 | ||||||
Total accruing TDRs | 32,250 | 31,949 | 32,568 | ||||||
Non-Accruing: | |||||||||
Residential real estate | 256 | 100 | 84 | ||||||
Home equity | 40 | 30 | 50 | ||||||
Total non-accruing TDRs | 296 | 130 | 134 | ||||||
Total TDRs | $ | 32,546 | $ | 32,079 | $ | 32,702 |
Three months ended March 31, | |||||||||||
2018 | 2017 | $ Change | % Change | ||||||||
Gains on sale of investment securities | $ | — | $ | 4.3 | $ | (4.3 | ) | (100.0 | )% | ||
Non-interest income (excluding above gains) | 14.5 | 14.2 | 0.3 | 2.1 | % | ||||||
Non-interest expense | 24.9 | 24.6 | 0.3 | 1.2 | % |
Immediate Basis Point Change in Interest Rates | Implied Federal Funds Rate Associated with Change in Interest Rates | Estimated Increase (Decrease) in Net Income Over 12 Months | |||
March 31, 2018 | |||||
+400 | 5.75 | % | +4.8 | % | |
+300 | 4.75 | +5.6 | |||
+200 | 3.75 | +5.5 | |||
+100 | 2.75 | +3.8 | |||
-50 | 1.25 | -6.1 | |||
-100 | 0.75 | -14.4 | |||
December 31, 2017 | |||||
+400 | 5.50 | % | +4.0 | % | |
+300 | 4.50 | +5.9 | |||
+200 | 3.50 | +6.2 | |||
+100 | 2.50 | +4.7 | |||
-50 | 1.00 | -6.0 | |||
-100 | 0.50 | -12.3 |
March 31, 2018 | Actual | Minimum Required - Basel III Phase-In Schedule | Minimum Required - Basel III Fully Phased-In (*) | Required to be Considered Well Capitalized | ||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | |||||||||||||
CET I Capital | ||||||||||||||||||||
City Holding Company | $ | 430,044 | 15.1 | % | $ | 181,765 | 6.375 | % | $ | 199,585 | 7.0 | % | $ | 185,329 | 6.5 | % | ||||
City National Bank | 355,791 | 12.6 | 180,218 | 6.375 | 197,887 | 7.0 | 183,752 | 6.5 | ||||||||||||
Tier I Capital | ||||||||||||||||||||
City Holding Company | 446,044 | 15.6 | 224,533 | 7.875 | 242,354 | 8.5 | 228,097 | 8.0 | ||||||||||||
City National Bank | 355,791 | 12.6 | 222,622 | 7.875 | 240,291 | 8.5 | 226,156 | 8.0 | ||||||||||||
Total Capital | ||||||||||||||||||||
City Holding Company | 464,936 | 16.3 | 281,558 | 9.875 | 299,378 | 10.5 | 285,122 | 10.0 | ||||||||||||
City National Bank | 374,682 | 13.3 | 279,161 | 9.875 | 296,830 | 10.5 | 282,695 | 10.0 | ||||||||||||
Tier I Leverage Ratio | ||||||||||||||||||||
City Holding Company | 446,044 | 10.9 | 163,651 | 4.000 | 163,651 | 4.0 | 204,564 | 5.0 | ||||||||||||
City National Bank | 355,791 | 8.8 | 161,470 | 4.000 | 161,470 | 4.0 | 201,837 | 5.0 | ||||||||||||
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in. |
December 31, 2017 | Actual | Minimum Required - Basel III Phase-In Schedule | Minimum Required - Basel III Fully Phased-In (*) | Required to be Considered Well Capitalized | ||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | |||||||||||||
CET I Capital | ||||||||||||||||||||
City Holding Company | $ | 430,154 | 15.1 | % | $ | 163,441 | 5.750 | % | $ | 198,972 | 7.0 | % | $ | 184,760 | 6.5 | % | ||||
City National Bank | 338,105 | 12.0 | 162,164 | 5.750 | 197,418 | 7.0 | 183,316 | 6.5 | ||||||||||||
Tier I Capital | ||||||||||||||||||||
City Holding Company | 446,154 | 15.7 | 206,078 | 7.250 | 241,609 | 8.5 | 227,397 | 8.0 | ||||||||||||
City National Bank | 338,105 | 12.0 | 204,468 | 7.250 | 239,721 | 8.5 | 225,620 | 8.0 | ||||||||||||
Total Capital | ||||||||||||||||||||
City Holding Company | 465,292 | 16.4 | 262,927 | 9.250 | 298,458 | 10.5 | 284,246 | 10.0 | ||||||||||||
City National Bank | 357,243 | 12.7 | 260,873 | 9.250 | 296,126 | 10.5 | 282,025 | 10.0 | ||||||||||||
Tier I Leverage Ratio | ||||||||||||||||||||
City Holding Company | 446,154 | 11.0 | 161,834 | 4.000 | 161,834 | 4.0 | 202,293 | 5.0 | ||||||||||||
City National Bank | 338,105 | 8.5 | 159,625 | 4.000 | 159,625 | 4.0 | 199,531 | 5.0 | ||||||||||||
(*) Represents the minimum required capital levels as of January 1, 2019 when Basel III Capital Rules have been fully phased in. |
Item 3 - | Quantitative and Qualitative Disclosures About Market Risk |
Item 4 - | Controls and Procedures |
Part II - | OTHER INFORMATION |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Total Number | Maximum Number | ||||||||
of Shares Purchased | of Shares that May | ||||||||
as Part of Publicly | Yet Be Purchased | ||||||||
Total Number of | Average Price | Announced Plans | Under the Plans | ||||||
Period | Shares Purchased | Paid per Share | or Programs | or Programs | |||||
January 1 - January 31, 2018 | — | $ | — | — | 402,248 | ||||
February 1 - February 28, 2018 | 140,629 | $ | 68.39 | 140,629 | 261,619 | ||||
March 1 - March 31, 2018 | 63,698 | $ | 68.76 | 63,698 | 197,921 |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Agreement and Plan of Merger, dated November 14, 2011, by and among Virginia Savings Bancorp, Inc., Virginia Savings Bank, F.S.B., City Holding Company and City National Bank of West Virginia (attached to, and incorporated by reference from, City Holding Company’s Form 8-K dated November 14, 2011, and filed with the Securities and Exchange Commission on November 14, 2011). | |||
Agreement and Plan of Merger, dated August 2, 2012, by and among Community Financial Corporation, Community Bank, City Holding Company and City National Bank of West Virginia (attached to, and incorporated by reference from, City Holding Company’s Form 8-K dated August 7, 2012, and filed with the Securities and Exchange Commission on August 7, 2012). | |||
3(a) | Articles of Incorporation of City Holding Company (attached to, and incorporated by reference from, Amendment No. 1 to City Holding Company’s Registration Statement on Form S-4, Registration No. 2-86250, filed November 4, 1983 with the Securities and Exchange Commission). | ||
3(b) | Articles of Amendment to the Articles of Incorporation of City Holding Company, dated March 6, 1984 (attached to, and incorporated by reference from, City Holding Company's Form 8-K Report dated March 7, 1984, and filed with the Securities and Exchange Commission on March 22, 1984). | ||
3(c) | Articles of Amendment to the Articles of Incorporation of City Holding Company, dated March 4, 1986 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1986, filed March 31, 1987 with the Securities and Exchange Commission). | ||
3(d) | Articles of Amendment to the Articles of Incorporation of City Holding Company, dated September 29, 1987 (attached to and incorporated by reference from, City Holding Company's Registration Statement on Form S-4, Registration No. 33-23295, filed with the Securities and Exchange Commission on August 3, 1988). | ||
3(e) | Articles of Amendment to the Articles of Incorporation of City Holding Company, dated May 6, 1991 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1991, filed March 17, 1992 with the Securities and Exchange Commission). | ||
3(f) | Articles of Amendment to the Articles of Incorporation of City Holding Company, dated May 7, 1991 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1991, filed March 17, 1992 with the Securities and Exchange Commission). | ||
3(g) | Articles of Amendment to the Articles of Incorporation of City Holding Company, dated August 1, 1994 (attached to, and incorporated by reference from, City Holding Company's Form 10-Q Quarterly Report for the quarter ended September 30, 1994, filed November 14, 1994 with the Securities and Exchange Commission). | ||
3(h) | Articles of Amendment to the Articles of Incorporation of City Holding Company, dated December 9, 1998 (attached to, and incorporated by reference from, City Holding Company’s Form 10-K Annual Report for the year ended December 31, 1998, filed March 31, 1999 with the Securities and Exchange Commission). | ||
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated June 13, 2001 (attached to, and incorporated by reference from, City Holding Company’s Registration Statement on Form 8-A, filed June 22, 2001 with the Securities and Exchange Commission). | |||
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated May 10, 2006 (attached to, and incorporated by reference from, City Holding Company’s Form 10-Q, Quarterly Report for the quarter ended June 30, 2006, filed August 9, 2006 with the Securities and Exchange Commission). | |||
Articles of Amendment to the Articles of Incorporation of City Holding Company, dated April 19, 2017 (attached to, and incorporated by reference from, City Holding Company's Form 10-Q Quarterly Report for the quarter ended March 31, 2017, filed May 5, 2017 with the Securities and Exchange Commission). |
Amended and Restated Bylaws of City Holding Company, revised February 24, 2010 (attached to, and incorporated by reference from, City Holding Company’s Current Report on Form 8-K filed March 1, 2010 with the Securities and Exchange Commission). | |||
Rights Agreement dated as of June 13, 2001 (attached to, and incorporated by reference from, City Holding Company's Form 8–A, filed June 22, 2001, with the Securities and Exchange Commission). | |||
Amendment No. 1 to the Rights Agreement dated as of November 30, 2005 (attached to, and incorporated by reference from, City Holding Company’s Amendment No. 1 on Form 8-A, filed December 21, 2005, with the Securities and Exchange Commission). | |||
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Charles R. Hageboeck | |||
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for David L. Bumgarner | |||
Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Charles R. Hageboeck | |||
Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for David L. Bumgarner | |||
101.INS | XBRL Instance Document* | ||
101.SCH | XBRL Taxonomy Extension Schema* | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase* | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase* | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase* | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase* | ||
* | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability. |
City Holding Company | ||
(Registrant) | ||
/s/ Charles R. Hageboeck | ||
Charles R. Hageboeck | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
/s/ David L. Bumgarner | ||
David L. Bumgarner | ||
Senior Vice President, Chief Financial Officer and Principal Accounting Officer | ||
(Principal Financial Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 of City Holding Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or such 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. |
/s/ Charles R. Hageboeck | ||
Charles R. Hageboeck | ||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 of City Holding Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or such 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. |
/s/ David L. Bumgarner | ||
David L. Bumgarner | ||
Senior Vice President and Chief Financial Officer |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Charles R. Hageboeck | ||
Charles R. Hageboeck | ||
President and Chief Executive Officer |
(1) | the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ David L. Bumgarner | ||
David L. Bumgarner | ||
Senior Vice President and Chief Financial Officer |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Apr. 30, 2018 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2018 | |
Entity Registrant Name | CITY HOLDING CO | |
Entity Central Index Key | 0000726854 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 15,434,993 | |
Trading Symbol | chco |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, Estimated Fair Value | $ 62,146 | $ 65,646 |
Preferred stock, par value (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 19,047,548 | 19,047,548 |
Common stock, treasury shares (in shares) | 3,608,051 | 3,429,519 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 17,616 | $ 16,026 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Reclassification Adjustments and Tax | (10,712) | 5,660 |
Reclassification adjustment for gains | 0 | (4,276) |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | (10,712) | 1,384 |
Tax effect | 2,494 | (511) |
Other comprehensive income (loss), net of tax | (8,218) | 873 |
Comprehensive Income, Net of Tax | $ 9,398 | $ 16,899 |
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.46 | $ 0.44 |
Exercise of stock options (in shares) | 7,388 | 1,250 |
Stock issued during period (in shares) | 0 | 440,604 |
Purchase of treasury shares (in shares) | 204,327 | 0 |
Background and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation City Holding Company ("City Holding"), a West Virginia corporation headquartered in Charleston, West Virginia, is a registered financial holding company under the Bank Holding Company Act and conducts its principal activities through its wholly-owned subsidiary, City National Bank of West Virginia ("City National"). City National is a retail and consumer-oriented community bank with 86 banking offices in West Virginia (57), Virginia (14), Kentucky (12) and southeastern Ohio (3). City National provides credit, deposit, and trust and investment management services to its customers in a broad geographical area that includes many rural and small community markets in addition to larger cities including Charleston (WV), Huntington (WV), Martinsburg (WV), Winchester (VA), Staunton (VA), Virginia Beach (VA), Ashland (KY) and Lexington (KY). In addition to its branch network, City National's delivery channels include automated-teller-machines ("ATMs"), interactive-teller machines ("ITMs"), mobile banking, debit cards, interactive voice response systems, and Internet technology. The Company’s business activities are currently limited to one reportable business segment, which is community banking. The accompanying consolidated financial statements, which are unaudited, include all of the accounts of City Holding Company and its wholly-owned subsidiaries (collectively, the "Company"). All material intercompany transactions have been eliminated. The consolidated financial statements include all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations and financial condition for each of the periods presented. Such adjustments are of a normal recurring nature. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results of operations that can be expected for the year ending December 31, 2018. The Company’s accounting and reporting policies conform with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Such policies require management to make estimates and develop assumptions that affect the amounts reported in the consolidated financial statements and related footnotes. Actual results could differ from management’s estimates. The consolidated balance sheet as of December 31, 2017 has been derived from audited financial statements included in the Company’s 2017 Annual Report to Shareholders. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been omitted. These financial statements should be read in conjunction with the financial statements and notes thereto included in the 2017 Annual Report of the Company. Certain amounts in the financial statements have been reclassified. Such reclassifications had no impact on shareholders’ equity or net income for any period. |
Recent Accounting Pronouncements |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted: In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This standard clarifies the principles for recognizing revenue and developed a common revenue standard. The core principle of the standard 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 and services. To achieve that core principle, an entity should apply the following steps: (i) identifying the contract or contracts 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. The FASB also issued several amendments to the standard, including clarifications relating to performance obligations and licensing implementation guidance and reporting gross versus net revenue. The Company adopted the standard effective January 1, 2018 using the modified retrospective approach, but did not record a cumulative effect adjustment to opening retained earnings given the immaterial impact. As part of the adoption, the Company evaluated the terms of the contracts that supported each of the revenue streams that were within the scope of ASU 2014-09 and determined that the adoption did not significantly change the way the Company recognizes revenue from each stream. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This standard makes several modifications to Subtopic 825-10 including the elimination of the available-for-sale classification of equity investments, and requires equity investments with readily determinable fair values to be measured at fair value with changes in fair value recognized in net income. This ASU became effective for the Company for interim and annual periods on January 1, 2018. The adoption of ASU No. 2016-01 did not have a material impact on the Company's financial statements. During the three months ended March 31, 2018, a $0.2 million gain was recognized in other income in the consolidated statements of income as a result of the change in the fair value of equity and perpetual preferred securities due to the adoption of ASU 2016-01. Additionally, $2.7 million, net of deferred taxes, was reclassified from other comprehensive income to retained earnings on the consolidated balance sheets to recognize the prior period unrealized gain position of these securities (see Note C Investments and Note J Accumulated Other Comprehensive Loss). In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." This amendment clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This ASU became effective for the Company on January 1, 2018. The adoption of ASU No. 2017-01 did not have a material impact on the Company's financial statements. In March 2017, the FASB issued ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." This amendment requires that an employer disaggregate the service cost component from the other components of net benefit cost and also provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement. This ASU became effective for the Company on January 1, 2018. The adoption of ASU No. 2017-07 did not have a material impact on the Company's financial statements. In May 2017, the FASB issued ASU No. 2017-09, "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting." This amendment provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASU No. 2016-09. This ASU became effective for the Company on January 1, 2018. The adoption of ASU No. 2017-09 did not have a material impact on the Company’s financial statements. In September 2017, the FASB issued ASU No. 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)." This amendment provides modifications to previously issued ASUs 2014-09 and 2016-02. The adoption of ASU No. 2017-13 did not have a material impact on the Company's financial statements. In November 2017, the FASB issued ASU No. 2017-14, "Income Statement—Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606)." This amendment supersedes various SEC paragraphs and amends an SEC paragraph pursuant to the issuance of Staff Accounting Bulletin No. 116. The adoption of ASU No. 2017-14 did not have a material impact on the Company's financial statements. Pending Adoption: In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This standard requires organizations to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing requirements for leases that were historically classified as operating leases under previous generally accepted accounting principals. This ASU will become effective for the Company for interim and annual periods on January 1, 2019. The Company's preliminary evaluation indicates that the adoption of ASU 2016-02 will have an immaterial impact on the Company's consolidated balance sheet. However, the Company continues to evaluate the extent of the potential impact the new guidance will have on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." This standard replaces 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. The amendments in this update require 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 new current expected credit losses model (CECL) will apply to the allowance for loan losses, available-for-sale and held to maturity debt securities, purchased financial assets with credit deterioration and certain off-balance sheet credit exposures. This ASU will become effective for the Company for interim and annual periods on January 1, 2020. Management is currently evaluating the potential impact of ASU No. 2016-13 on the Company's financial statements. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." This amendment simplifies the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. This ASU will become effective for the Company on January 1, 2020. The adoption of ASU No. 2017-04 is not expected to have a material impact on the Company's financial statements. In March 2017, the FASB issued ASU No. 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." The amendments in this update shorten the amortization period for certain callable debt securities held at a premium and require the premium to be amortized to the earliest call date. This ASU will become effective for the Company on January 1, 2019. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company's financial statements. In August 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." This amendment expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This ASU will become effective for the Company on January 1, 2019. The adoption of ASU No. 2017-12 is not expected to have a material impact on the Company's financial statements. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This amendment permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act ("TCJA") to retained earnings. The guidance is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permissible. The Company elected to early adopt this amendment as of December 31, 2017 and the December 31, 2017 balance sheet reflects this adoption. |
Investments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments The amortized cost and estimated fair values of the Company's securities are shown in the following table (in thousands):
Marketable equity securities consist of investments made by the Company in equity positions of various regional community banks. Included within this portfolio are ownership positions in the following community bank holding companies: First National Corporation (FXNC) (4%) and Eagle Financial Services, Inc. (EFSI) (1.5%). Securities with limited marketability, such as stock in the Federal Reserve Bank ("Federal Reserve") and the Federal Home Loan Bank ("FHLB"), are carried at cost and are reported as non-marketable equity securities in the table above. Certain investment securities owned by the Company were in an unrealized loss position (i.e., amortized cost basis exceeded the estimated fair value of the securities). The following table shows the gross unrealized losses and fair value of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):
During the three months ended March 31, 2018 and 2017, the Company had no investment impairment losses. At March 31, 2018, the cumulative amount of credit-related investment impairment losses that have been recognized by the Company on investments that remain in the Company's investment portfolio as of that date was $1.8 million ($0.2 million related to the Company's debt securities and $1.6 million related to the Company's equity securities). Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other-than-temporary would be reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things (i) the length of time and the extent to which the fair value has been less than cost; (ii) the financial condition, capital strength, and near-term (within 12 months) prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology that may impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; (iii) the historical volatility in the market value of the investment and/or the liquidity or illiquidity of the investment; (iv) adverse conditions specifically related to the security, an industry, or a geographic area; and (v) the intent to sell the investment security and if it’s more likely than not that the Company will not have to sell the security before recovery of its cost basis. In addition, management also employs a continuous monitoring process in regards to its marketable equity securities, specifically its portfolio of regional community bank holdings. Although the regional community bank stocks that are owned by the Company are publicly traded, the trading activity for these stocks is minimal, with trading volumes of less than 0.4% of each respective company being traded on a daily basis. As part of management’s review process for these securities, management reviews the financial condition of each respective regional community bank for any indications of financial weakness. Management has the ability and intent to hold the securities classified as held-to-maturity until they mature, at which time the Company expects to receive full value for the securities. Furthermore, as of March 31, 2018, management does not intend to sell an impaired security and it is not more than likely that it will be required to sell the security before the recovery of its amortized cost basis. The unrealized losses on debt securities are primarily the result of interest rate changes, credit spread fluctuations on agency-issued mortgage related securities, general financial market uncertainty and unprecedented market volatility. These conditions should not prohibit the Company from receiving its contractual principal and interest payments on its debt securities. The fair value is expected to recover as the securities approach their maturity date or repricing date. As of March 31, 2018, management believes the unrealized losses detailed in the table above are temporary and no additional impairment loss has been recognized in the Company’s consolidated income statement. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss will be recognized in net income in the period the other-than-temporary impairment is identified, while any noncredit loss will be recognized in other comprehensive income. The amortized cost and estimated fair value of debt securities at March 31, 2018, by contractual maturity, are shown in the following table (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.
Gross gains and gross losses realized by the Company from investment security transactions are summarized in the table below (in thousands).
During the three months ended March 31, 2018 a $0.2 million unrealized gain was recognized in other income in the consolidated statements of income as a result of the change in the fair value of equity and perpetual preferred securities due to the adoption of ASU 2016-01. Additionally, $2.7 million, net of deferred taxes, was reclassified from other comprehensive income to retained earnings on the consolidated balance sheets to recognize the prior period fair value impact of these securities. During the three months ended March 31, 2017 the Company realized $4.3 million of investment gains. These gains represented partial recoveries of impairment charges previously recognized on pooled trust preferred securities. As a result of these sales, the Company no longer holds any pooled trust preferred securities in its investment portfolio. The carrying value of securities pledged to secure public deposits and for other purposes as required or permitted by law approximated $448 million and $429 million at March 31, 2018 and December 31, 2017, respectively. |
Loans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans The following summarizes the Company’s major classifications for loans (in thousands):
Construction loans of $26.6 million and $25.3 million are included within residential real estate loans at March 31, 2018 and December 31, 2017, respectively. Construction loans of $30.9 million and $28.9 million are included within commercial real estate loans at March 31, 2018 and December 31, 2017, respectively. The Company’s commercial and residential real estate construction loans are primarily secured by real estate within the Company’s principal markets. These loans were originated under the Company’s loan policy, which is focused on the risk characteristics of residential and commercial real estate lending, including specific risks related to construction lending. Adequate consideration has been given to these loans in establishing the Company’s allowance for loan losses. |
Allowance For Loan Losses |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance For Loan Losses | Allowance For Loan Losses Management systematically monitors the loan portfolio and the adequacy of the allowance for loan losses on a quarterly basis to provide for probable losses inherent in the portfolio. Management assesses the risk in each loan type based on historical trends, the general economic environment of its local markets, individual loan performance and other relevant factors. Individual credits are selected throughout the year for detailed loan reviews, which are utilized by management to assess the risk in the portfolio and the adequacy of the allowance. Due to the nature of commercial lending, evaluation of the adequacy of the allowance as it relates to these loan types is often based more upon specific credit reviews, with consideration given to the potential impairment of certain credits and historical loss rates, adjusted for economic conditions and other inherent risk factors. The following table summarizes the activity in the allowance for loan loss, by portfolio loan classification, for the three months ended March 31, 2018 and 2017 (in thousands). The allocation of a portion of the allowance in one portfolio segment does not preclude its availability to absorb losses in other portfolio segments. The following table also presents the balance in the allowance for loan loss disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans, by portfolio segment, as of March 31, 2018 and December 31, 2017 (in thousands).
Credit Quality Indicators All commercial loans within the portfolio are subject to internal risk grading. All non-commercial loans are evaluated based on payment history. The Company’s internal risk ratings for commercial loans are: Pass, Special Mention, Substandard and Doubtful. Each internal risk rating is defined in the loan policy using the following criteria: balance sheet yields; ratios and leverage; cash flow spread and coverage; prior history; capability of management; market position/industry; potential impact of changing economic, legal, regulatory or environmental conditions; purpose; structure; collateral support; and guarantor support. Risk grades are generally assigned by the primary lending officer and are periodically evaluated by the Company’s internal loan review process. Based on an individual loan’s risk grade, estimated loss percentages are applied to the outstanding balance of the loan to determine the amount of probable loss. The Company categorizes loans into risk categories based on relevant information regarding the customer’s debt service ability, capacity, overall collateral position along with other economic trends, and historical payment performance. The risk grades for each credit are updated when the Company receives current financial information, the loan is reviewed by the Company’s internal loan review and credit administration departments, or the loan becomes delinquent or impaired. The risk grades are updated a minimum of annually for loans rated exceptional, good, acceptable, or pass/watch. Loans rated special mention, substandard or doubtful are reviewed at least quarterly. The Company uses the following definitions for its risk ratings:
The following table presents the Company’s commercial loans by credit quality indicators, by portfolio loan classification (in thousands):
The following table presents the Company's non-commercial loans by payment performance, by portfolio loan classification (in thousands):
Aging Analysis of Accruing and Non-Accruing Loans Interest income on loans is accrued and credited to operations based upon the principal amount outstanding, using methods that generally result in level rates of return. Loan origination fees, and certain direct costs, are deferred and amortized as an adjustment to the yield over the term of the loan. The accrual of interest generally is discontinued when a loan becomes 90 days past due as to principal or interest for all loan types. However, any loan may be placed on non-accrual status if the Company receives information that indicates a borrower is unable to meet the contractual terms of its respective loan agreement. Other indicators considered for placing a loan on non-accrual status include the borrower’s involvement in bankruptcies, foreclosures, repossessions, litigation and any other situation resulting in doubt as to whether full collection of contractual principal and interest is attainable. When interest accruals are discontinued, unpaid interest recognized in income in the current year is reversed, and interest accrued in prior years is charged to the allowance for loan losses. Management may elect to continue the accrual of interest when the net realizable value of collateral exceeds the principal balance and related accrued interest, and the loan is in the process of collection. Generally for all loan classes, interest income during the period the loan is non-performing is recorded on a cash basis after recovery of principal is reasonably assured. Cash payments received on nonperforming loans are typically applied directly against the outstanding principal balance until the loan is fully repaid. Generally, loans are restored to accrual status when the obligation is brought current, the borrower has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Generally, all loan types are considered past due when the contractual terms of a loan are not met and the borrower is 30 days or more past due on a payment. Furthermore, residential and home equity loans are generally subject to charge-off when the loan becomes 120 days past due, depending on the estimated fair value of the collateral less cost to dispose, versus the outstanding loan balance. Commercial loans are generally charged off when the loan becomes 120 days past due. Open-end consumer loans are generally charged off when the loan becomes 180 days past due. The following table presents an aging analysis of the Company’s accruing and non-accruing loans, by portfolio loan classification (in thousands):
The following table presents the Company’s impaired loans, by class (in thousands). The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off. There are no impaired residential, home equity, or consumer loans.
The following table presents information related to the average recorded investment and interest income recognized on the Company’s impaired loans, by class (in thousands):
Approximately $0.1 million and $0.2 million of interest income would have been recognized during the three months ended March 31, 2018 and 2017, respectively, if such loans had been current in accordance with their original terms. There were no commitments to provide additional funds on non-accrual, impaired or other potential problem loans at March 31, 2018. Loan Modifications The Company’s policy on loan modifications typically does not allow for modifications that would be considered a concession from the Company. However, when there is a modification, the Company evaluates each modification to determine if the modification constitutes a troubled debt restructuring (“TDR”) in accordance with ASU 2011-02, whereby a modification of a loan would be considered a TDR when both of the following conditions are met: (1) a borrower is experiencing financial difficulty and (2) the modification constitutes a concession. When determining whether the borrower is experiencing financial difficulties, the Company reviews whether the borrower is currently in payment default on any of its debt or whether it is probable that the borrower would be in payment default in the foreseeable future without the modification. Other indicators of financial difficulty include whether the borrower has declared or is in the process of declaring bankruptcy, the borrower’s ability to continue as a going concern, and the borrower’s projected cash flow to service its debt (including principal and interest) in accordance with the contractual terms for the foreseeable future, without a modification. Regulatory guidance requires loans to be accounted for as collateral-dependent loans when borrowers have filed Chapter 7 bankruptcy, the debt has been discharged by the bankruptcy court, and the borrower has not reaffirmed the debt. The filing of bankruptcy is deemed to be evidence that the borrower is in financial difficulty and the discharge of the debt by the bankruptcy court is deemed to be a concession granted to the borrower. The following tables set forth the Company’s TDRs (in thousands):
|
Long-Term Debt |
3 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | |||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt The components of long-term debt are summarized below (in thousands):
The Company formed a statutory business trust, City Holding Capital Trust III (“Capital Trust III”), under the laws of Delaware. Capital Trust III was created for the exclusive purpose of (i) issuing trust-preferred capital securities (“Capital Securities”), which represent preferred undivided beneficial interests in the assets of the trust, (ii) using the proceeds from the sale of the Capital Securities to acquire junior subordinated debentures (“Debentures”) issued by the Company, and (iii) engaging in only those activities necessary or incidental thereto. The trust is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, the accounts of the trust are not included in the Company’s consolidated financial statements. Distributions on the Debentures are cumulative and will be payable quarterly at an interest rate of 3.50% over the three month LIBOR rate, reset quarterly. Interest payments are due in March, June, September and December each year until maturity. The Debentures are redeemable prior to maturity at the option of the Company (i) in whole at any time or in part from time to time, or (ii) in whole, but not in part, at any time within 90 days following the occurrence and during the continuation of certain predefined events. Payments of distributions on the Capital Securities and payments on redemption of the Capital Securities are guaranteed by the Company. The Company also entered into an agreement as to expenses and liabilities with the trust pursuant to which it agreed, on a subordinated basis, to pay any cost, expenses or liabilities of the trust other than those arising under the Capital Securities. The obligations of the Company under the Debentures, the related indentures, the trust agreement establishing the trust, the guarantees and the agreements as to expenses and liabilities, in the aggregate, constitute a full and unconditional guarantee by the Company of the trust’s obligations under the Capital Securities. The Capital Securities issued by the statutory business trust qualify as Tier 1 capital for the Company under current Federal Reserve Board guidelines. |
Derivative Instruments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company enters into derivative transactions principally to protect against the risk of adverse price or interest rate movements on the value of certain assets and liabilities on future cash flows. As of March 31, 2018 and December 31, 2017, the Company has derivative financial instruments not included in hedge relationships. These derivatives consist of interest rate swaps and floors used for interest rate management purposes and derivatives executed with commercial banking customers to facilitate their interest rate management strategies. For the majority of these instruments the Company acts as an intermediary for its customers. Changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company's results of operations. The Company also has an interest rate swap that serves as a fair value hedge for changes in long term fixed interest rates related to commercial real estate loans. Hedge ineffectiveness is assessed quarterly and any ineffectiveness is recorded as non-interest expense. For the three months ended March 31, 2018 and 2017, hedge ineffectiveness was less than $0.1 million and the change in fair value was less than $0.1 million, for each respective period. The following table summarizes the notional and fair value of these derivative instruments (in thousands):
The following table summarizes the change in fair value of these derivative instruments (in thousands):
Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements. The Company's derivative transactions with financial institution counterparties are generally executed under International Swaps and Derivative Association ("ISDA") master agreements which include "right of setoff" provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset financial instruments for financial reporting purposes. Information about financial instruments that are eligible for offset in the consolidated balance sheet as of March 31, 2018 is presented in the following tables (in thousands):
|
Employee Benefit Plans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans Pursuant to the terms of the City Holding Company 2003 Incentive Plan and the City Holding Company 2013 Incentive Plan (the "2003 Plan” and "2013 Plan", respectively), the Compensation Committee of the Board of Directors, or its delegate, may, from time to time, grant stock options, stock appreciation rights (“SARs”), or restricted stock awards to employees, directors and individuals who provide service to the Company (collectively, "Plan Participants"). The 2003 Plan expired in April of 2013 and the 2013 Plan was approved by the Company's shareholders in April 2013. A maximum of 750,000 shares of the Company’s common stock may be issued upon the exercise of stock options, SARs and stock awards under the 2013 Plan. These limitations may be adjusted in the event of a change in the number of outstanding shares of common stock by reason of a stock dividend, stock split or other similar event. Specific terms of options and SARs awarded, including vesting periods, exercise prices (stock price at date of grant) and expiration dates are determined at the date of grant and are evidenced by agreements between the Company and the awardee. The exercise price of the option grants equals the market price of the Company’s common stock on the date of grant. All incentive stock options and SARs will be exercisable up to 10 years from the date granted and all options and SARs are exercisable for the period specified in the individual agreement. As of March 31, 2018, approximately 541,000 shares were still available to be issued under the 2013 Plan. Each award from the 2003 Plan and 2013 Plan is evidenced by an award agreement that specifies the option price, the duration of the option, the number of shares to which the option pertains, and such other provisions as the Compensation Committee, or its delegate, determines. The option price for each grant is equal to the fair market value of a share of the Company’s common stock on the date of the grant. Options granted expire at such time as the Compensation Committee, or its delegate, determines at the date of the grant and in no event does the exercise period exceed a maximum of ten years. Upon a change-in-control of the Company, as defined in the 2003 Plan and 2013 Plan, all outstanding options and awards shall immediately vest. Certain stock options and restricted stock awards granted pursuant to the 2013 Plan have performance-based vesting requirements. These shares will vest in three separate annual installments of approximately 33.33% per installment on the third, fourth and fifth anniversaries of the grant date, subject further to performance-based vesting requirements. To meet the performance-based vesting requirement, the Company's mean return on average assets of the three, four and five year period prior to the respective vesting date must meet or exceed the median return on average assets over the 20 year period immediately preceding the vesting date of all FDIC insured depository institutions. The mean return on average assets excludes merger and acquisition expenses and other nonrecurring items as determined by the Board of Directors of the Company. In 2018, the Board of Directors granted the named executive officers ("NEOs") restricted stock units ("RSUs") and performance share units ("PSUs"). The RSUs will vest in three separate annual installments of approximately 33.33% per installment on the first, second and third anniversaries of the grant date, subject to a two-year holding period. The PSUs will vest on the third anniversary of the grant date. The payout for the PSUs will be determined based on (1) the Company's three-year relative average return on assets ("ROA") during the three-year performance period relative to the ROA for the selected peer companies and (2) the Company's total shareholder return ("TSR") relative to the TSR of the selected peer companies during the three-year performance period. If the three-year relative ROA is at or below the 25th percentile, 0% of the PSU grant will be earned; at the 50th percentile, 100% of the PSU grant will be earned; or at the 100th percentile, 200% of the PSU grant will be earned. The payout of the PSUs will be increased or decreased as determined by a modifier based on the Company's TSR. If the three-year relative TSR is at or below the 25th percentile, the number of PSUs granted will be reduced by 25%; at the 50th percentile, the number of PSUs granted will not be adjusted; or at or above the 75th percentile, the number of PSUs granted will be increased by 25%. Stock Options A summary of the Company’s stock option activity and related information is presented below:
Information regarding stock option exercises and stock-based compensation expense associated with stock options is provided in the following table (in thousands):
Shares issued in connection with stock option exercises are issued from available treasury shares. If no treasury shares are available, new shares would be issued from available authorized shares. During the three months ended March 31, 2018 and 2017, all shares issued in connection with stock option exercises were issued from available treasury stock. For the stock options that have performance-based criteria, management has evaluated those criteria and has determined that, as of March 31, 2018, the criteria were probable of being met. Additional information regarding stock options outstanding and exercisable at March 31, 2018 is provided in the following table:
The fair value of the options is estimated at the date of grant using a Black-Scholes option-pricing model. The following weighted average assumptions were used to estimate the fair value of options granted:
Restricted Shares The Company records compensation expense with respect to restricted shares in an amount equal to the fair value of the common stock covered by each award on the date of grant. The restricted shares awarded become fully vested after various periods of continued employment from the respective dates of grant. The Company is entitled to an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted shares when the restrictions are released and the shares are issued. Compensation is being charged to expense over the respective vesting periods. Restricted shares are forfeited if the awardee officer or employee terminates his employment with the Company prior to the lapsing of restrictions. The Company records forfeitures of restricted stock as treasury share repurchases and any compensation cost previously recognized is reversed in the period of forfeiture. Recipients of restricted shares do not pay any cash consideration to the Company for the shares, and have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested. For restricted shares that have performance-based criteria, management has evaluated those criteria and has determined that, as of March 31, 2018, the criteria were probable of being met. A summary of the Company’s restricted shares activity and related information is presented below:
Information regarding stock-based compensation associated with restricted shares is provided in the following table (in thousands):
Shares issued in connection with restricted stock awards are issued from available treasury shares. If no treasury shares are available, new shares would be issued from available authorized shares. During the three months ended March 31, 2018 and 2017, all shares issued in connection with restricted stock awards were issued from available treasury stock. Benefit Plans The Company provides retirement benefits to its employees through the City Holding Company 401(k) Plan and Trust (the “401(k) Plan”), which is intended to be compliant with Employee Retirement Income Security Act (ERISA) section 404(c). The Company also maintains two frozen defined benefit pension plans (the “Defined Benefit Plans”), which were inherited from the Company's acquisition of the plan sponsors (Horizon Bancorp, Inc. and Community Financial Corporation). During 2017, the Company initiated the process to terminate the Community Defined Benefit plan. The Company anticipates making a $1.6 million contribution in late 2018 or early 2019 (which has been accrued at March 31, 2018), when the termination process is expected to be completed. The following table presents details of the Company's activities pursuant to these plans (in thousands):
The components of net periodic benefit cost are included in the line item "other expenses" in the consolidated statements of income. |
Commitments and Contingencies |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The Company is a party to certain financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. The Company has entered into agreements with certain customers to extend credit or provide a conditional commitment to provide payment on drafts presented in accordance with the terms of the underlying credit documents. The Company also provides overdraft protection to certain demand deposit customers that represent an unfunded commitment. Overdraft protection commitments, which are included with other commitments below, are uncollateralized and are paid at the Company’s discretion. Conditional commitments generally include standby and commercial letters of credit. Standby letters of credit represent an obligation of the Company to a designated third party contingent upon the failure of a customer of the Company to perform under the terms of the underlying contract between the customer and the third party. Commercial letters of credit are issued specifically to facilitate trade or commerce. Under the terms of a commercial letter of credit, drafts will be drawn when the underlying transaction is consummated, as intended, between the customer and a third party. The funded portion of these financial instruments is reflected in the Company’s balance sheet, while the unfunded portion of these commitments is not reflected in the balance sheet. The table below presents a summary of the contractual obligations of the Company resulting from significant commitments (in thousands):
Loan commitments and standby and commercial letters of credit have credit risks essentially the same as those involved in extending loans to customers and are subject to the Company’s standard credit policies. Collateral is obtained based on management’s credit assessment of the customer. Management does not anticipate any material losses as a result of these commitments. The Company is engaged in various legal actions that it deems to be in the ordinary course of business. As these legal actions are resolved, the Company could realize positive and/or negative impact to its financial performance in the period in which these legal actions are ultimately resolved. There can be no assurance that current legal actions will have an immaterial impact on financial results, either positive or negative, or that no material legal actions may be presented in the future. |
Accumulated Other Comprehensive Loss |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss is presented in the tables below (in thousands). All amounts are shown net of tax, which is calculated using a combined federal and state income tax rate approximating 23% for the three months ended March 31, 2018 and 37% for the three months ended March 31, 2017.
As a result of the adoption of ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," the Company reclassified $2.7 million of unrealized gains and losses net of tax, relating to its equity and perpetual preferred securities, from other comprehensive income to retained earnings on January 1, 2018.
|
Earnings per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share The following table sets forth the computation of basic and diluted earnings per share using the two class method (in thousands, except per share data):
Options to purchase approximately 2,000 shares and 1,000 shares of common stock were outstanding during the three months ended March 31, 2018 and 2017, respectively, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. |
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability (an 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. ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company bases fair value of assets and liabilities on quoted market prices, prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. If such information is not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amount presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Financial Assets and Liabilities The Company used the following methods and significant assumptions to estimate fair value for financial assets and liabilities measured on a recurring basis. Securities Available for Sale. Securities available for sale are reported at fair value utilizing Level 1, Level 2, and Level 3 inputs. The fair value of securities available for sale is determined by utilizing a market approach by obtaining quoted prices on nationally recognized securities exchanges (other than forced or distressed transactions) that occur in sufficient volume or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. If such measurements are unavailable, the security is classified as Level 3. Significant judgment is required to make this determination. The Company utilizes a third party pricing service provider to value its Level 1 and Level 2 investment securities. Annually, the Company obtains an independent auditor’s report from its third party pricing service provider regarding its controls over investment securities. Although no control deficiencies were noted, the report did contain caveats and disclaimers regarding the pricing information, such as the Company should review fair values for reasonableness. On a quarterly basis, the Company selects a sample of its debt securities and reprices those securities with a third party that is independent of the primary pricing service provider to verify the reasonableness of the fair values. In addition, the Company selects a sample of securities and reviews the underlying support from the primary pricing service provider. Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The Company utilizes a market approach by obtaining dealer quotations to value its customer interest rate swaps. The Company’s derivatives are included within its Other Assets and Other Liabilities in the accompanying consolidated balance sheets. Derivative assets are typically secured through securities with financial counterparties or cross collateralization with a borrowing customer. Derivative liabilities are typically secured through the Company pledging securities to financial counterparties or, in the case of a borrowing customer, by the right of setoff. The Company considers factors such as the likelihood of default by itself and its counterparties, right of setoff, and remaining maturities in determining the appropriate fair value adjustments. All derivative counterparties approved by the Company's Asset and Liability Committee ("ALCO") are regularly reviewed, and appropriate business action is taken to adjust the exposure to certain counterparties, if necessary. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of marketable collateral securing the position. This approach used to estimate impacted exposures to counterparties is also used by the Company to estimate its own credit risk in derivative liability positions. To date, no material losses have been incurred due to a counterparty's inability to pay any undercollateralized position. There was no significant change in the value of derivative assets and liabilities attributed to credit risk that would have resulted in a derivative credit risk valuation adjustment at March 31, 2018. The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis. Financial assets measured at fair value on a nonrecurring basis include impaired loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs based on observable market data for real estate collateral or Level 3 inputs for non-real estate collateral. The following table presents assets and liabilities measured at fair value (in thousands):
The table below presents a reconcilement of the Company’s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which consist solely of trust preferred securities (in thousands):
The Company utilizes a third party model to compute the present value of expected cash flows which considers the structure and term of pooled trust preferred securities and the financial condition of the underlying issuers. Specifically, the third party model details interest rates, principal balances of note classes and underlying issuers, the timing and amount of interest and principal payments of the underlying issuers, and the allocation of the payments to the note classes. The current estimate of expected cash flows is based on the most recent trustee reports and any other relevant market information including announcements of interest payment deferrals or defaults of underlying trust preferred securities. For issuing banks that have defaulted, management generally assumes no recovery. For issuing banks that have deferred interest payments, management excludes the collateral balance associated with these banks and assumes no recoveries of such collateral balance in the future. The exclusion of such issuing banks in a current deferral position is based on such bank experiencing a certain level of financial difficulty that raises doubt about its ability to satisfy its contractual debt obligation, and accordingly, the Company excludes the associated collateral balance from its estimate of expected cash flows. Other assumptions used in the estimate of expected cash flows include expected future default rates and prepayments. The table below presents a reconcilement of the Company's financial assets and liabilities measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3), which solely relates to impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral (in thousands). The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows. The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to discounts applied to the customers’ reported amount of collateral. The amount of collateral discount depends upon the marketability of the underlying collateral. During the three months ended March 31, 2018 and 2017, collateral discounts ranged from 20% to 30%. During the three months ended March 31, 2018 and 2017, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.
Non-Financial Assets and Liabilities The Company has no non-financial assets or liabilities measured at fair value on a recurring basis. Certain non-financial assets measured at fair value on a non-recurring basis include other real estate owned (“OREO”), which is measured at the lower of cost or fair value, and goodwill and other intangible assets, which are measured at fair value for impairment assessments. The table below presents OREO that was remeasured and reported at fair value based on significant unobservable inputs (Level 3) (in thousands):
ASC Topic 825 “Financial Instruments”, as amended, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including discount rates and estimate of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. ASC Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The following methods and assumptions were used in estimating fair value for financial instruments: Cash and cash equivalents: Due to their short-term nature, the carrying amounts reported in the consolidated balance sheets approximate fair value. Securities: The fair value of securities, both available-for-sale and held-to-maturity, are generally based on quoted market prices or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Net loans: The fair value of the loan portfolio is estimated by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers for the same remaining maturities, the credit risk associated with such loans and other market factors, including liquidity. Loans were first segregated by type such as commercial, real estate and consumer, and were then further segmented into fixed, adjustable and variable rate categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments. Deposits: The fair values of demand deposits (i.e., interest and noninterest-bearing deposits, regular savings and other money market demand accounts) are, by definition, equal to their carrying values. The fair values of time deposits were estimated using discounted cash flow analyses. The discount rates used were based on rates currently offered for deposits with similar remaining maturities. The fair values of the time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value. Short-term debt: Securities sold under agreements to repurchase represent borrowings with original maturities of less than 90 days. The carrying amount of borrowings under purchase agreements approximate their fair value. Long-term debt: The fair value of long-term borrowings is estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements and market conditions of similar debt instruments. Commitments and letters of credit: The fair values of commitments are estimated based on fees currently charged to enter into similar agreements, taking into consideration the remaining terms of the agreements and the counterparties’ credit standing. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The amounts of fees currently charged on commitments and letters of credit are deemed insignificant, and therefore, the estimated fair values and carrying values have not been reflected in the table below. The following table represents the estimates of fair value of financial instruments (in thousands). This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest-bearing demand, interest-bearing demand and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.
|
Contracts with Customers |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts with Customers | Note M –Contracts with Customers The Company's largest source of revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), and non-interest income. The Company's significant sources of non-interest income are: service charges, bankcard revenue, trust and investment management fee income and bank owned life insurance (which was also excluded from the ASC 606). The following table shows the Company's total non-interest income segregated between those within the scope of ASC 606 and those with the scope of other GAAP Topics (in thousands):
The Company's significant policies related to contracts with customers are discussed below. Service Charges: Service charges consist of service charges on deposit accounts (monthly service fees, account analysis fees, non-sufficient funds ("NSF") fees and other deposit account related fees). For transaction based fees, the Company's performance obligation is generally satisfied, and the related revenue recognized, at a point in time. For nontransaction based fees, the Company's performance obligation is generally satisfied, and the related revenue recognized, over the period in which the service is provided (typically a month). Generally, payments are received immediately through a direct charge to the customer's account. Bankcard Revenue: Bankcard revenue is primarily comprised of debit card income and ATM fees. Debit card income is primarily comprised of interchange fees earned whenever the Company's debit cards are processed through card payment networks such as Mastercard. ATM fees are primarily generated when a non-Company cardholder uses a Company ATM or when a Company cardholder uses a non-Company ATM. The Company's performance obligation for bankcard revenue is generally satisfied, and the related revenue recognized, when the services are rendered. Generally, payments are received immediately or in the following month. Trust and Investment Management Fee Income: Trust and investment management fee income is primarily comprised of fees earned from the management and administration of customer assets. The Company's performance obligation is generally satisfied over time (typically a quarter), and the related revenue recognized, based upon the quarter-end market value of the assets under management and the applicable fee rate. Generally, payments are received a few days after quarter-end through a direct charge to the customer's account. The following table illustrates the disaggregation by the Company's major revenue streams (in thousands):
|
Contracts with Customers (Policies) |
3 Months Ended |
---|---|
Mar. 31, 2018 | |
Revenue from Contracts with Customer [Abstract] | |
Service Charges | Service Charges: Service charges consist of service charges on deposit accounts (monthly service fees, account analysis fees, non-sufficient funds ("NSF") fees and other deposit account related fees). For transaction based fees, the Company's performance obligation is generally satisfied, and the related revenue recognized, at a point in time. For nontransaction based fees, the Company's performance obligation is generally satisfied, and the related revenue recognized, over the period in which the service is provided (typically a month). Generally, payments are received immediately through a direct charge to the customer's account. |
Bankcard Revenue | Bankcard Revenue: Bankcard revenue is primarily comprised of debit card income and ATM fees. Debit card income is primarily comprised of interchange fees earned whenever the Company's debit cards are processed through card payment networks such as Mastercard. ATM fees are primarily generated when a non-Company cardholder uses a Company ATM or when a Company cardholder uses a non-Company ATM. The Company's performance obligation for bankcard revenue is generally satisfied, and the related revenue recognized, when the services are rendered. Generally, payments are received immediately or in the following month. |
Trust and Management Fee Revenue | Trust and Investment Management Fee Income: Trust and investment management fee income is primarily comprised of fees earned from the management and administration of customer assets. The Company's performance obligation is generally satisfied over time (typically a quarter), and the related revenue recognized, based upon the quarter-end market value of the assets under management and the applicable fee rate. Generally, payments are received a few days after quarter-end through a direct charge to the customer's account. |
Investments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Carrying And Approximate Market Values Of Available-For-Sale Securities | The amortized cost and estimated fair values of the Company's securities are shown in the following table (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Carrying And Approximate Market Values Of Held-To-Maturity Securities |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Carrying And Approximate Market Values of Marketable and Non-Marketable Securities |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses And Fair Value Of Investments | The following table shows the gross unrealized losses and fair value of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost And Estimated Fair Value Of Debt Securities By Contractual Maturity | The amortized cost and estimated fair value of debt securities at March 31, 2018, by contractual maturity, are shown in the following table (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Gains And Losses Realized | Gross gains and gross losses realized by the Company from investment security transactions are summarized in the table below (in thousands).
|
Loans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Major Classifications For Loans | The following summarizes the Company’s major classifications for loans (in thousands):
|
Allowance For Loan Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Allowance For Loan Loss By Portfolio Segment | The following table summarizes the activity in the allowance for loan loss, by portfolio loan classification, for the three months ended March 31, 2018 and 2017 (in thousands). The allocation of a portion of the allowance in one portfolio segment does not preclude its availability to absorb losses in other portfolio segments. The following table also presents the balance in the allowance for loan loss disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans, by portfolio segment, as of March 31, 2018 and December 31, 2017 (in thousands).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Credit Quality Indicators | The Company uses the following definitions for its risk ratings:
The following table presents the Company’s commercial loans by credit quality indicators, by portfolio loan classification (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Noncommercial Loans By Payment Performance | The following table presents the Company's non-commercial loans by payment performance, by portfolio loan classification (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Aging Analysis Of Accruing And Non-Accruing Loans | The following table presents an aging analysis of the Company’s accruing and non-accruing loans, by portfolio loan classification (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Impaired Loans | The following table presents the Company’s impaired loans, by class (in thousands). The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off. There are no impaired residential, home equity, or consumer loans.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Information Related To Average Recorded Investment And Interest Income Recognized On Impaired Loans | The following table presents information related to the average recorded investment and interest income recognized on the Company’s impaired loans, by class (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Troubled Debt Restructurings | The following tables set forth the Company’s TDRs (in thousands):
|
Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | |||||||||||||||||||||||||||||
Long-Term Debt | The components of long-term debt are summarized below (in thousands):
|
Derivative Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Derivative Instruments | The following table summarizes the notional and fair value of these derivative instruments (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change In Fair Value Of Derivative Instruments | The following table summarizes the change in fair value of these derivative instruments (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets Offset in The Consolidated Balance Sheets | Information about financial instruments that are eligible for offset in the consolidated balance sheet as of March 31, 2018 is presented in the following tables (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liabilities Offset in The Consolidated Balance Sheets |
|
Employee Benefit Plans (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Stock Option Activity | A summary of the Company’s stock option activity and related information is presented below:
Information regarding stock option exercises and stock-based compensation expense associated with stock options is provided in the following table (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options Outstanding And Exercisable | Additional information regarding stock options outstanding and exercisable at March 31, 2018 is provided in the following table:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Assumptions Estimate The Fair Value Of Options Granted | The following weighted average assumptions were used to estimate the fair value of options granted:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Shares Activity And Related Information | A summary of the Company’s restricted shares activity and related information is presented below:
Information regarding stock-based compensation associated with restricted shares is provided in the following table (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Cost Of The Defined Benefit Plan | The following table presents details of the Company's activities pursuant to these plans (in thousands):
|
Commitments and Contingencies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Contractual Obligations From Significant Commitments | The table below presents a summary of the contractual obligations of the Company resulting from significant commitments (in thousands):
|
Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes In Each Component of Accumulated Other Comprehensive Income | The activity in accumulated other comprehensive loss is presented in the tables below (in thousands). All amounts are shown net of tax, which is calculated using a combined federal and state income tax rate approximating 23% for the three months ended March 31, 2018 and 37% for the three months ended March 31, 2017.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Reclassified Out Of Accumulated Other Comprehensive Income |
|
Earnings per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Computation Of Basic And Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share using the two class method (in thousands, except per share data):
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring And Nonrecurring Basis | The following table presents assets and liabilities measured at fair value (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Reconciliation Of Investment Securities Available For Sale Measured At Fair Value On A Recurring Basis Level 3 Assets | The table below presents a reconcilement of the Company’s financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which consist solely of trust preferred securities (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Level 3 Financial Assets And Liabilities Measured On A Non-Recurring Basis | The table below presents a reconcilement of the Company's financial assets and liabilities measured at fair value on a nonrecurring basis using significant unobservable inputs (Level 3), which solely relates to impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral (in thousands). The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows. The significant unobservable inputs used in the fair value measurement of collateral for collateral-dependent impaired loans primarily relate to discounts applied to the customers’ reported amount of collateral. The amount of collateral discount depends upon the marketability of the underlying collateral. During the three months ended March 31, 2018 and 2017, collateral discounts ranged from 20% to 30%. During the three months ended March 31, 2018 and 2017, the Company had no Level 2 financial assets and liabilities that were measured on a nonrecurring basis.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Level 3 Non-Financial Assets and Liabilities Measured On a Non-Recurring Basis | The table below presents OREO that was remeasured and reported at fair value based on significant unobservable inputs (Level 3) (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Estimates Of Fair Value Of Financial Instruments | The following table represents the estimates of fair value of financial instruments (in thousands). This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest-bearing demand, interest-bearing demand and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.
|
Contracts with Customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table illustrates the disaggregation by the Company's major revenue streams (in thousands):
|
Background and Basis of Presentation (Details) |
3 Months Ended |
---|---|
Mar. 31, 2018
store
| |
Entity Location [Line Items] | |
Number of Reportable Segments | 1 |
City National | |
Entity Location [Line Items] | |
Number of Stores | 86 |
WEST VIRGINIA | City National | |
Entity Location [Line Items] | |
Number of Stores | 57 |
VIRGINIA | City National | |
Entity Location [Line Items] | |
Number of Stores | 14 |
KENTUCKY | City National | |
Entity Location [Line Items] | |
Number of Stores | 12 |
OHIO | City National | |
Entity Location [Line Items] | |
Number of Stores | 3 |
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Gain on change in fair value of equity and perpetual preferred securities | $ 180 |
Reclassification from AOCI to retained earnings | 0 |
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification from AOCI to retained earnings | $ 2,657 |
Investments Investments (Aggregate Carrying And Approximate Market Values of Marketable and Non-Marketable Securities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Mar. 31, 2017 |
---|---|---|
Schedule of Investments [Line Items] | ||
Other Investments and Securities, at Cost | $ 18,528 | $ 14,147 |
Other Investment Not Readily Marketable, Fair Value | 22,165 | 14,147 |
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member] | ||
Schedule of Investments [Line Items] | ||
Securities Owned Not Readily Marketable | 11,581 | 14,147 |
Security Owned Not Readily Marketable, Fair Value | 11,581 | $ 14,147 |
Equity Securities | ||
Schedule of Investments [Line Items] | ||
Equity Securities, FV-NI, Cost | 6,947 | |
Equity Securities, FV-NI | $ 10,584 |
Investments (Gross Gains And Losses Realized) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Investments [Abstract] | ||
Equity and perpetual preferred security unrealized gains recognized | $ 180 | |
Gross realized gains on securities sold | 0 | $ 4,276 |
Gross realized losses on securities sold | 0 | 0 |
Net investment security gains | $ 0 | $ 4,276 |
Loans (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Construction loans | $ 26.6 | $ 25.3 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Construction loans | $ 30.9 | $ 28.9 |
Allowance For Loan Losses (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Financing Receivable, Impaired [Line Items] | ||
Threshold Period for Discontinuance of Interest Accrual | 90 days | |
Past due threshold in days | 30 days | 30 days |
Interest income | $ 0.1 | $ 0.2 |
Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Threshold period past due for write-off of financing receivable | 120 days | 120 days |
Commercial Industrial Loans And Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Threshold period past due for write-off of financing receivable | 120 days | 120 days |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Threshold period past due for write-off of financing receivable | 180 days | 180 days |
Long-Term Debt (Components Of Long-Term Debt) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Long-term Debt, Unclassified [Abstract] | ||
Long-term debt | $ 16,495 | $ 16,495 |
Junior subordinated debentures, interest rate | 5.62% | 5.09% |
Junior subordinated debentures, due date | Jun. 30, 2038 | Jun. 30, 2038 |
Percent over three month LIBOR Rate | 3.50% | 3.50% |
Junior subordinated debenture, Threshold in days | 90 days | 90 days |
Derivative Instruments (Details) - Maximum - Derivatives designated as hedges of fair value: - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Loss on Fair Value Hedge Ineffectiveness | $ 0.1 | $ 0.1 |
Loans Receivable [Member] | Derivative Financial Instruments, Assets [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 0.1 | $ 0.1 |
Derivative Instruments (Change In Fair Value Of Derivative Instruments) (Details) - Other Expense - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Non-hedging interest rate derivatives: | Customer Counterparties Loan Interest Rate Swap Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ (90) | $ (45) |
Derivatives designated as hedges of fair value: | ||
Derivatives, Fair Value [Line Items] | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 1 | $ (4) |
Derivative Instruments (Derivative Liabilities Offset in The consolidated Balance Sheets) (Details) - Non-hedging interest rate derivatives: - Interest Rate Swap $ in Thousands |
Mar. 31, 2018
USD ($)
|
---|---|
Customer Counterparties Loan Interest Rate Swap Liabilities [Member] | |
Offsetting Liabilities [Line Items] | |
Gross amounts of recognized liabilities | $ 19,452 |
Derivative liabilities | 19,452 |
Fair Value of collateral | 19,452 |
Total Gross amounts not offset in the statement of financial position including applicable netting agreement and fair value of collateral | 19,452 |
Net Amount | 0 |
Financial Institution Counterparties Loan Interest Rate Swap Liabilities [Member] | |
Offsetting Liabilities [Line Items] | |
Gross amounts of recognized liabilities | 2,039 |
Derivative liabilities | 2,039 |
Fair Value of collateral | 14,671 |
Total Gross amounts not offset in the statement of financial position including applicable netting agreement and fair value of collateral | 14,671 |
Net Amount | $ 0 |
Employee Benefit Plans (Weighted Average Assumptions Estimate The Fair Value Of Options Granted) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Share-based Compensation [Abstract] | |
Risk-free interest rate | 2.12% |
Expected dividend yield | 2.60% |
Volatility factor | 25.80% |
Expected life of option | 7 years |
Employee Benefit Plans (Restricted Shares Activity And Related Information) (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense associated with restricted shares | $ 379 | $ 355 |
Unrecognized stock-based compensation expense associated with restricted shares | $ 4,432 | |
Weighted average period (in years) in which the above amount is expected to be recognized | 3 years 6 months | |
Restricted Awards, Number of Awards [Roll Forward] | ||
Beginning Balance | 170,033 | 180,622 |
Granted | 23,163 | 10,609 |
Forfeited | 0 | (750) |
Vested | (20,864) | (18,438) |
Ending Balance | 172,332 | 172,043 |
Restricted Awards, Number of Awards, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at January 1 | $ 44.34 | $ 39.31 |
Granted | 68.63 | 66.33 |
Forfeited | 0.00 | 42.05 |
Vested | 40.44 | 37.50 |
Outstanding at March 31 | $ 48.08 | $ 41.16 |
Employee Benefit Plans (Net Periodic Pension Cost Of The Defined Benefit Plan) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Components of net periodic cost: | ||
Interest cost | $ 147 | $ 193 |
Expected return on plan assets | (270) | (294) |
Net amortization and deferral | 218 | 215 |
Net Periodic Pension Cost | 95 | 114 |
401(k) Plan expense | 218 | 251 |
Defined Benefit Plan contributions | $ 0 | $ 0 |
Commitments and Contingencies (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Commitments to extend credit: | Home equity | ||
Other Commitments [Line Items] | ||
Contractual obligations | $ 196,946 | $ 194,477 |
Commitments to extend credit: | Commercial real estate | ||
Other Commitments [Line Items] | ||
Contractual obligations | 45,832 | 66,901 |
Commitments to extend credit: | Other commitments | ||
Other Commitments [Line Items] | ||
Contractual obligations | 159,622 | 184,895 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Contractual obligations | 7,098 | 7,151 |
Commercial letters of credit | ||
Other Commitments [Line Items] | ||
Contractual obligations | $ 863 | $ 831 |
Accumulated Other Comprehensive Loss (Schedule Of Amounts Reclassified Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized securities gains (losses) reclassified into earnings | $ 0 | $ 4,276 |
Related income tax expense | (4,405) | (7,647) |
Net income | 17,616 | 16,026 |
Unrealized Gain (Losses) on Securities Available-for-Sale | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized securities gains (losses) reclassified into earnings | 0 | (4,276) |
Related income tax expense | 0 | (1,578) |
Net income | $ 0 | $ 2,698 |
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,000 | 1,000 |
Net income | $ 17,616 | $ 16,026 |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | (195) | (177) |
Distributed earnings allocated to common stock | 7,023 | 6,782 |
Undistributed earnings allocated to common stock | 10,398 | 9,067 |
Net earnings allocated to common shareholders | $ 17,421 | $ 15,849 |
Average shares outstanding (in shares) | 15,414,000 | 15,252,000 |
Effect of dilutive securities: | ||
Employee stock awards (in shares) | 22,000 | 25,000 |
Average common shares outstanding, diluted (in shares) | 15,436,000 | 15,277,000 |
Basic earnings per common share (in dollars per share) | $ 1.13 | $ 1.04 |
Diluted earnings per share (in dollars per share) | $ 1.13 | $ 1.04 |
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Credit Risk Valuation Adjustment, Derivative Assets | $ 0 | $ 0 | $ 0 |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | $ 0 | $ 0 | $ 0 |
Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Collateral discount | 30.00% | 30.00% | 30.00% |
Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Collateral discount | 20.00% | 20.00% | 20.00% |
Fair Value Measurements (Schedule Of Reconciliation Of Investment Securities Available For Sale Measured At Fair Value On A Recurring Basis Level 3 Assets) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 261 | $ 2,535 |
Included in other comprehensive income | 0 | (977) |
Dispositions | 0 | (1,300) |
Transfers into Level 3 | 0 | 0 |
Ending balance | $ 261 | $ 258 |
Fair Value Measurements (Schedule Of Level 2 Financial Assets And Liabilities Measured On A Recurring Basis) (Details) - Impaired Loans - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Fair Value Measurement On Nonrecurring Basis Asset And Liabilities Value [Roll Forward] | ||
Beginning balance | $ 9,020 | $ 6,916 |
Loans classified as impaired during the period | 0 | 3,015 |
Specific valuation allowance allocations | 0 | 0 |
Fair Value | 0 | 3,015 |
(Additional) reduction in specific valuation allowance allocations | (474) | (29) |
Paydowns, payoffs, other activity | 888 | (301) |
Ending balance | $ 9,434 | $ 9,601 |
Fair Value Measurements (Schedule Of OREO Measured And Reported At Fair Value) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Other Real Estate [Roll Forward] | |||
Beginning balance | $ 3,585 | $ 4,588 | $ 4,588 |
Disposed | (313) | (776) | |
Ending balance | 3,912 | 4,405 | $ 3,585 |
OREO remeasured at initial recognition: | |||
Other Real Estate [Roll Forward] | |||
Carrying value of foreclosed assets prior to remeasurement | 1,218 | 1,226 | |
Charge-offs recognized in the allowance for loan losses | (353) | (442) | |
Fair value | 865 | 784 | |
OREO remeasured subsequent to initial recognition: | |||
Other Real Estate [Roll Forward] | |||
Carrying value of foreclosed assets prior to remeasurement | 1,362 | 1,464 | |
Fair value | 1,137 | 1,273 | |
Write-downs included in other non-interest expense | $ (225) | $ (191) |
<0T!9B!U?N\&. 8HV(4WN$P)I$H/V##TG<(0BM!*$F")<$@6]48<3$&M.-
MF!@!9*1B02$?(KN8R"HFLH@!AI@1@Q9A'H ? [.P:UB$D&\7@ZQBD$6,$66'
M5E&,VA5KQ$,(XSM5B:U"8HN0P! 2_U]5UC 0)*%=3&(5DUC$A(:89!4%AJD!
M*M:@APC &LR3.3B52 *DLHPV92
M:"8%V40"9#! IK/)1.Y]#([DR4K#PD:L^C#/"A]9D
M+N+#01].#TB2"B-.&Z% $1E I"/HW?
MBR9=0P;B]ORF_BG6[FNY" N/J'[)VG4%O:>DAD:,RCWC]!F6>FXI68K_"E=0
M'AXR\3$J5#:NI!JM0[VH^%2T>)UWV<=]FF_NLH6V3^ +@:^$^QB'S8%BYD_"
MB3(W.!$S]WX0X8G3(_>]J8(SMB+>^>2M]U[+0_(Q9]<@M&!.,X9O,.F*8%Y]
M#<'W0ISX?W2^3S_L9GB(],,V.L_V!;)=@2P*9-L2T^1=B7N8]T6R34\UF#9.
MDR45CGV 2"HD2FAS<0G&PB"<,X9I
M"1(+CLQ1'$G5I.N$J0 BE#9<_\>:HS(T1U$I4<+8F)H1B.N(Q:B@PHJCD.(P
M-5:,JYF@. HKCLI1' 641(7H%:D, KIH%<,(A35'Y6B.HG)BA2,9 53T7#I8
M=52&ZBB@)BHZ+5(5A$#OK6?:N<*ZHY#N2"8$UATU07<4UAV5HSL*Z$FT)J:%
M03 IF :AL.JH'-515$]24_PIY'J[@/5&9^B-!CH2K4]S@3#IN.T+5AL-U$9S
M(;#:Z"F;*&87E;6-HB*B!1%AA J&:=X:ZXS.T1E-%81 T,?S$R&M 09>I!Z&;!)E/#9&J-H=$(FC!3Z[@&DEEQE@S&QJ!=8)@&D)#B
M>G"8+0.6H%&F'H3&8$C'5 2# 32HFD;=OKB:DN):EP8C:% Q#3.U <7T!U.$
M236HF(89=! :W[J42=0&TVP S5Q:,DRGU4QGS&!,#2J (6,F;L$0YRQ&V0"4
MB9L6S*B9T8*Q[I04S"-W$$+_4M1@_"_ CIL!:3):=T86QF!F+F F3#1+B
MDHW%Q%A #-O,QS38&;LVBVFP4WHP%O1@++O%M,RCARD]&!NO&HU9*9&._ABK
MF"$[906)A(A)Z1:#9J?T8RSHQS#)RV$8W91VC(O;,9P5#**;THIQ<1WDK&!6
M'5J&AB7#Q/432<;_UJ]
MU_W7YO2+OR243B>7['_S'[X.\L%)Z&/=U-WX=[)^[_IF?XD2K.RK[^??W6'\
M/5WB?S;##>C2@*X-0M__UX O#?A' SLF?W8VIOI3U5?+1=N<)NWY;AVK85*8
M!PZ#N1XNCF,W_B]DVX6K'TN3V<7\8PATT:S.&KK57!7S$/W:!:$N5J2:TWT'
MI5;D!>Z!81(\MN>[)%(
M+^IT2CAO&D:
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MO10\N<[8)1#-,<-\0O-L.P!'7K3J;4$[YX8C8[;J0 M[@P/T_J9!HX7SIFF9'0R(.I*T8OQP
MN&5:R)Z6>?2=39GCZ)3LX6R(';46YL\)%$X%3>BKXU&VG0L.5N:#:.$'N)_#
MV7B+K2JUU-!;B3TQT!3T/CF>LH"/@%\2)KLYDU#)!?$Y&%_K@AY"0J"@
.>3M]Y[+?EMDK-K$%HP
MIQG#-Y@W!//J:PB^%^+$_Z/S?7JZFV$:Z>F6GJ3[ MFN0!8%LG]*Y.]*W,.\
M#\(V/=5@VCA-EE0X]G&2-]YU8.]Y?),W^#SMWX5I96_)!9U_V=C_!M&!3^5P
MXT>H\Q]L-10T+AP_^K.9QVPV' [+#V+K-R[_ E!+ P04 " !]6:-,)D@U
M.@0" T!@ &0 'AL+W=O
@(0C \N8
7
MNCL+;BR'O-15DYO*J_5QZ_\DGIY9]04#XN]<7YK)L=>/\FK,]_[DM\/6#_N.
M=*'W;4^1=1\?^ED71<_4]?'O2.K??K,OG!Y_LO\R#-\-\YHU^MD4_^2']K3U
ME>\=]#%[+]IOYO*K'@>*?&^<_G?]H8L.WG?2_<;>%,WPU]N_-ZTI1Y:NE3+[
M :(Z 8)N@9N74C8
MA1SJ:=I%G& "@@0T$/"$0)":C7'%) .F&C D*(F5F V#<#)A$>*&$5D,L
M&1-$D"!:+DD,">(%DEPQ\614P7$D1323!.*43!1N*($-);8D$^WO"!0D4,LE
M22%!ND"2%(TJ5#B_Y2$N8G;<]R+$]@N!*-)!X7"P6"Z+P/83
XL .M2]N,B+A!PN .1#EL[L
M$Y[1$ QP25PNV ]$4.[BMA .YPG-9RB!FG./"4 I=2D1X/002EUY@G$HH3.4
M8)'"@$JQ&97"L$QA0*>8JU,#*+_1AXAZ=?9A=!'1&67'L%QA0*^\2S& %I-(
M+(^\6P'!6$3GB@PK&P9DR[\6[-_7@GED$A*A&2W'L +B['_N1>9'0E'B;9
MHUDTQP<65 PIJOMW&4 WQR>/4.[R 6 X\OZZ\:0/J41[M"U;%^SDN5;FCS]9
M'=O">V+Z&&=]8]I%V]^\N^E[S6^\/19U%SQ+I;LDV\LMSV/5X_4;(9^M=X;*+7?P!02P,$% @ ?5FC3,8\J$%% @
M# < !D !X;"]W;W)K