QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
(State of Incorporation)
|
(I.R.S. Employer Identification No.)
|
Title of class
|
Trading Symbol(s)
|
Name of exchange on which registered
|
||
|
|
|
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
Smaller reporting company
|
Emerging growth company
|
PART I
|
FINANCIAL INFORMATION
|
Item 1
|
Financial Statements (Unaudited)
|
|
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
9
|
||
Item 2
|
28 | |
Item 3
|
43 | |
Item 4
|
43 | |
PART II
|
OTHER INFORMATION
|
|
Item 1
|
44
|
|
Item 1A
|
44
|
|
Item 2
|
44 | |
Item 3
|
44 | |
Item 4
|
44 | |
Item 5
|
44 | |
Item 6
|
45 | |
46 |
June 30,
|
December 31,
|
|||||||
2022
|
2021
|
|||||||
(In thousands, except share and per share data)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Short-term interest-bearing accounts
|
|
|
||||||
Equity securities, at fair value
|
|
|
||||||
Securities available for sale, at fair value
|
|
|
||||||
Securities held to maturity (fair value $
|
|
|
||||||
Federal Reserve and Federal Home Loan Bank stock
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans
|
|
|
||||||
Less allowance for loan losses
|
|
|
||||||
Net loans
|
$
|
|
$
|
|
||||
Premises and equipment, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Intangible assets, net
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities
|
||||||||
Demand (noninterest bearing)
|
$
|
|
$
|
|
||||
Savings, NOW and money market
|
|
|
||||||
Time
|
|
|
||||||
Total deposits
|
$
|
|
$
|
|
||||
Short-term borrowings
|
|
|
||||||
Long-term debt
|
|
|
||||||
Subordinated debt, net
|
|
|
||||||
Junior subordinated debt
|
|
|
||||||
Other liabilities
|
|
|
||||||
Total liabilities
|
$
|
|
$
|
|
||||
Stockholders’ equity
|
||||||||
Preferred stock, $
|
$
|
|
$
|
|
||||
Common stock, $
|
|
|
||||||
Additional paid-in-capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Common stock in treasury, at cost,
|
(
|
)
|
(
|
)
|
||||
Total stockholders’ equity
|
$
|
|
$
|
|
||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Interest, fee and dividend income
|
||||||||||||||||
Interest and fees on loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities available for sale
|
|
|
|
|
||||||||||||
Securities held to maturity
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total interest, fee and dividend income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest expense
|
||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Short-term borrowings
|
|
|
|
|
||||||||||||
Long-term debt
|
|
|
|
|
||||||||||||
Subordinated debt
|
|
|
|
|
||||||||||||
Junior subordinated debt
|
|
|
|
|
||||||||||||
Total interest expense
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Net interest income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Provision for loan losses
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Net interest income after provision for loan losses
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Noninterest income
|
||||||||||||||||
Service charges on deposit accounts
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Card services income |
|
|
|
|
||||||||||||
Retirement plan administration fees
|
|
|
|
|
||||||||||||
Wealth management
|
|
|
|
|
||||||||||||
Insurance services
|
|
|
|
|
||||||||||||
Bank owned life insurance income
|
|
|
|
|
||||||||||||
Net securities (losses) gains
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Other
|
|
|
|
|
||||||||||||
Total noninterest income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Noninterest expense
|
||||||||||||||||
Salaries and employee benefits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Technology and data services |
||||||||||||||||
Occupancy
|
|
|
|
|
||||||||||||
Professional fees and outside services
|
|
|
|
|
||||||||||||
Office supplies and postage
|
|
|
|
|
||||||||||||
FDIC expense
|
|
|
|
|
||||||||||||
Advertising
|
|
|
|
|
||||||||||||
Amortization of intangible assets
|
|
|
|
|
||||||||||||
Loan collection and other real estate owned, net
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
||||||||||||
Total noninterest expense
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Income before income tax expense
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Income tax expense
|
|
|
|
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Earnings per share
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other comprehensive income (loss), net of tax:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
Unrealized net holding (losses) gains arising during the period, gross
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Tax effect
|
|
(
|
)
|
|
|
|||||||||||
Unrealized net holding (losses) gains arising during the period, net
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Tax effect
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total securities available for sale, net
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Cash flow hedges:
|
||||||||||||||||
Reclassification of net unrealized losses on cash flow hedges to interest expense, gross
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Tax effect
|
|
|
|
(
|
)
|
|||||||||||
Reclassification of net unrealized losses on cash flow hedges to interest expense, net
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total cash flow hedges, net
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Pension and other benefits:
|
||||||||||||||||
Amortization of prior service cost and actuarial losses, gross
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Tax effect
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Amortization of prior service cost and actuarial losses, net
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total pension and other benefits, net
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total other comprehensive (loss) income
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
|||||
Comprehensive income (loss)
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Common
Stock
|
Additional
Paid-in-
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income
|
Common
Stock in
Treasury
|
Total
|
|||||||||||||||||||
(In thousands, except share and per share data)
|
||||||||||||||||||||||||
Balance at March 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Cash dividends - $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Net issuance of
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive (loss)
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at June 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||
Balance at March 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Cash dividends - $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of |
( |
) | ( |
) | ||||||||||||||||||||
Net issuance of
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Common
Stock
|
Additional
Paid-in-
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
(Loss) Income
|
Common
Stock in
Treasury
|
Total
|
|||||||||||||||||||
(In thousands, except share and per share data)
|
||||||||||||||||||||||||
Balance at December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Cash dividends - $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Net issuance of
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive (loss)
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at June 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||
Balance at December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||
Net income
|
|
|
|
|
|
|
||||||||||||||||||
Cash dividends - $
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||
Purchase of
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Net issuance of
|
|
(
|
)
|
|
|
|
(
|
)
|
||||||||||||||||
Stock-based compensation
|
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive (loss)
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at June 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Six Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
(In thousands)
|
||||||||
Operating activities
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Provision for loan losses
|
|
(
|
)
|
|||||
Depreciation and amortization of premises and equipment
|
|
|
||||||
Net amortization on securities
|
|
|
||||||
Amortization of intangible assets
|
|
|
||||||
Amortization of operating lease right-of-use assets
|
|
|
||||||
Excess tax benefit on stock-based compensation
|
(
|
)
|
(
|
)
|
||||
Stock-based compensation expense
|
|
|
||||||
Bank owned life insurance income
|
(
|
)
|
(
|
)
|
||||
Amortization of subordinated debt issuance costs
|
|
|
||||||
Proceeds from sale of loans held for sale
|
|
|
||||||
Originations of loans held for sale
|
(
|
)
|
(
|
)
|
||||
Net gains on sale of loans held for sale
|
(
|
)
|
(
|
)
|
||||
Net security losses (gains)
|
|
(
|
)
|
|||||
Net gains on sale of other real estate owned
|
(
|
)
|
(
|
)
|
||||
Net change in other assets and other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
$
|
|
$
|
|
||||
Investing activities
|
||||||||
Net cash used in acquisitions |
$ |
( |
) | $ |
||||
Securities available for sale:
|
||||||||
Proceeds from maturities, calls and principal paydowns
|
|
|
|
|
||||
Purchases
|
(
|
)
|
(
|
)
|
||||
Securities held to maturity:
|
||||||||
Proceeds from maturities, calls and principal paydowns
|
|
|
||||||
Purchases
|
(
|
)
|
(
|
)
|
||||
Equity securities: |
||||||||
Proceeds from calls |
||||||||
Other:
|
||||||||
Net increase in loans
|
(
|
)
|
(
|
)
|
||||
Proceeds from Federal Home Loan Bank stock redemption
|
|
|
||||||
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock
|
(
|
)
|
(
|
)
|
||||
Proceeds from settlement of bank owned life insurance
|
|
|
||||||
Purchases of bank owned life insurance |
( |
) | ||||||
Purchases of premises and equipment, net
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of other real estate owned
|
|
|
||||||
Net cash used in investing activities
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Financing activities
|
||||||||
Net (decrease) increase in deposits
|
$
|
(
|
)
|
$
|
|
|||
Net decrease in short-term borrowings
|
(
|
)
|
(
|
)
|
||||
Repayments of long-term debt
|
(
|
)
|
(
|
)
|
||||
Proceeds from the issuance of shares to employee and other stock plans
|
|
|
||||||
Cash paid by employer for tax-withholdings on stock issuance
|
(
|
)
|
(
|
)
|
||||
Purchase of treasury stock
|
(
|
)
|
(
|
)
|
||||
Cash dividends
|
(
|
)
|
(
|
)
|
||||
Net cash (used in) provided by financing activities
|
$
|
(
|
)
|
$
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
$
|
(
|
)
|
$
|
|
|||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
Six Months Ended
June 30,
|
||||||||
2022
|
2021
|
|||||||
Supplemental disclosure of cash flow information
|
||||||||
Cash paid during the period for:
|
||||||||
Interest expense
|
$
|
|
$
|
|
||||
Income taxes paid, net of refund
|
|
|
||||||
Noncash investing activities: |
||||||||
Loans transferred to other real estate owned |
$ |
$ |
||||||
Acquisitions: | ||||||||
Fair value of assets acquired | $ |
$ |
1. |
Description of Business
|
2. |
Summary of Significant Accounting Policies
|
3. |
Recent Accounting Pronouncements
|
4. |
Securities
|
(In thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
As of June 30, 2022
|
||||||||||||||||
U.S. treasury |
$ |
$ |
$ | $ |
||||||||||||
Federal agency
|
|
|
|
|
|
|
|
|
||||||||
State & municipal
|
|
|
|
|
||||||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Total AFS securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
As of December 31, 2021
|
||||||||||||||||
U.S. treasury |
$ |
$ |
$ |
$ |
||||||||||||
Federal agency
|
|
|
|
|
|
|
|
|
||||||||
State & municipal
|
|
|
|
|
||||||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Total AFS securities
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Estimated
Fair Value
|
||||||||||||
As of June 30, 2022
|
||||||||||||||||
Federal agency
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
State & municipal
|
|
|
|
|
||||||||||||
Total HTM securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
As of December 31, 2021
|
||||||||||||||||
Federal agency
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Mortgage-backed:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations:
|
||||||||||||||||
Government-sponsored enterprises
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
|
|
|
|
||||||||||||
State & municipal
|
|
|
|
|
||||||||||||
Total HTM securities
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
June 30,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Net (losses) and gains recognized on equity securities
|
$
|
(
|
)
|
$
|
|
|||
Less: Net (losses) and gains recognized on equity securities sold during the period
|
|
|
||||||
Unrealized (losses) and gains recognized on equity securities still held
|
$
|
(
|
)
|
$
|
|
Six Months Ended
June 30,
|
||||||||
(In thousands)
|
2022
|
2021
|
||||||
Net (losses) and gains recognized on equity securities
|
$
|
(
|
)
|
$
|
|
|||
Less: Net (losses) and gains recognized on equity securities sold during the period
|
|
|
||||||
Unrealized (losses) and gains recognized on equity securities still held
|
$
|
(
|
)
|
$
|
|
(In thousands)
|
Amortized
Cost
|
Estimated
Fair Value
|
||||||
AFS debt securities:
|
||||||||
Within one year
|
$
|
|
$
|
|
||||
From one to five years
|
|
|
||||||
From five to ten years
|
|
|
||||||
After ten years
|
|
|
||||||
Total AFS debt securities
|
$
|
|
$
|
|
||||
HTM debt securities:
|
||||||||
Within one year
|
$
|
|
$
|
|
||||
From one to five years
|
|
|
||||||
From five to ten years
|
|
|
||||||
After ten years
|
|
|
||||||
Total HTM debt securities
|
$
|
|
$
|
|
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||||||||||||||
(In thousands)
|
Fair
Value
|
Unrealized
Losses
|
Number
of Positions
|
Fair
Value
|
Unrealized
Losses
|
Number
of Positions
|
Fair
Value
|
Unrealized
Losses
|
Number
of Positions
|
|||||||||||||||||||||||||||
As of June 30, 2022
|
||||||||||||||||||||||||||||||||||||
AFS securities:
|
||||||||||||||||||||||||||||||||||||
U.S. treasury |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||||||||||||||
Federal agency
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
State & municipal
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Mortgage-backed
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Corporate | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
||||||||||||||||||
HTM securities:
|
||||||||||||||||||||||||||||||||||||
Federal agency
|
$
|
|
$
|
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
|||||||||||||||||||
Mortgage-backed
|
|
(
|
)
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||||
Collateralized mortgage obligation
|
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
State & municipal
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||||||||||||||
AFS securities:
|
||||||||||||||||||||||||||||||||||||
U.S. treasury |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||||||||||||||
Federal agency
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||||||||
State & municipal |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Mortgage-backed
|
|
(
|
)
|
|
|
(
|
)
|
|
|
(
|
)
|
|
||||||||||||||||||||||||
Collateralized mortgage obligations
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||||||||
Corporate |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
|
||||||||||||||||||
HTM securities:
|
||||||||||||||||||||||||||||||||||||
Federal agency
|
$ |
$ |
|
$ |
$ |
( |
) | $ |
$ |
( |
) | |||||||||||||||||||||||||
Mortgage-backed | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||
State & municipal
|
|
(
|
)
|
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||||||||
Total securities with unrealized losses
|
$
|
|
$
|
(
|
)
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
|
5. |
Allowance for Credit Losses and Credit Quality of Loans
|
(In thousands)
|
Commercial
Loans
|
Consumer
Loans
|
Residential
|
Total
|
||||||||||||
Balance as of March 31, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Charge-offs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recoveries
|
|
|
|
|
||||||||||||
Provision
|
|
|
(
|
)
|
|
|||||||||||
Ending balance as of June 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Balance as of March 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Charge-offs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recoveries
|
|
|
|
|
||||||||||||
Provision
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Ending balance as of June 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Commercial
Loans
|
Consumer
Loans
|
Residential
|
Total
|
||||||||||||
Balance as of December 31, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Charge-offs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recoveries
|
|
|
|
|
||||||||||||
Provision
|
|
|
(
|
)
|
|
|||||||||||
Ending balance as of June 30, 2022
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Balance as of December 31, 2020
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Charge-offs
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Recoveries
|
|
|
|
|
||||||||||||
Provision
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||
Ending balance as of June 30, 2021
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
31-60 Days
Past Due
Accruing
|
61-90 Days
Past Due
Accruing
|
Greater
Than
90 Days
Past Due
Accruing
|
Total
Past Due
Accruing
|
Nonaccrual
|
Current
|
Recorded
Total
Loans
|
|||||||||||||||||||||
As of June 30, 2022
|
||||||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||
C&I
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
CRE
|
|
|
|
|
|
|
|
|||||||||||||||||||||
PPP
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total commercial loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||
Auto
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Other consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total consumer loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
31-60 Days
Past Due
Accruing
|
61-90 Days
Past Due
Accruing
|
Greater
Than
90 Days
Past Due
Accruing
|
Total
Past Due
Accruing
|
Nonaccrual
|
Current
|
Recorded
Total
Loans
|
|||||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||||||
Commercial loans:
|
||||||||||||||||||||||||||||
C&I
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
CRE
|
|
|
|
|
|
|
|
|||||||||||||||||||||
PPP
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total commercial loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||||||
Auto
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Other consumer
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total consumer loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
2022
|
2021
|
2020
|
2019
|
2018
|
Prior
|
Revolving
Loans
Amortized
Cost Basis
|
Revolving
Loans
Converted
to Term
|
Total
|
|||||||||||||||||||||||||||
As of June 30, 2022
|
||||||||||||||||||||||||||||||||||||
C&I
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total C&I
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
CRE
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total CRE
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
PPP
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total PPP
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Auto
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total auto
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Other consumer
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total other consumer
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
2021
|
2020
|
2019
|
2018
|
2017
|
Prior
|
Revolving
Loans
Amortized
Cost Basis
|
Revolving
Loans
Converted
to Term
|
Total
|
|||||||||||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||||||||||||||||||
C&I
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total C&I
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
CRE
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Special mention
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total CRE
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
PPP
|
||||||||||||||||||||||||||||||||||||
By internally assigned grade:
|
||||||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total PPP
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Auto
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total auto
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Other consumer
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total other consumer
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||||||||||
By payment activity:
|
||||||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Total residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Total loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended June 30, 2022
|
Three Months Ended June 30,
2021
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Number of
Contracts
|
Pre-
Modification
Outstanding
Recorded
Investment
|
Post-
Modification
Outstanding
Recorded
Investment
|
Number of
Contracts
|
Pre-
Modification
Outstanding
Recorded
Investment
|
Post-
Modification
Outstanding
Recorded
Investment
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Auto
|
$ |
$ |
$ |
$ |
||||||||||||||||||||
Total consumer loans
|
$ |
$ |
$ |
$ |
||||||||||||||||||||
Residential
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
||||||||||||||
Total TDRs
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
Six Months Ended June 30, 2022
|
Six Months
Ended June 30, 2021
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Number of
Contracts
|
Pre-
Modification
Outstanding
Recorded
Investment
|
Post-
Modification
Outstanding
Recorded
Investment
|
Number of
Contracts
|
Pre-
Modification
Outstanding
Recorded
Investment
|
Post-
Modification
Outstanding
Recorded
Investment
|
||||||||||||||||||
Consumer loans:
|
||||||||||||||||||||||||
Auto
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
||||||||||||||
Total consumer loans
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
||||||||||||||
Residential
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
||||||||||||||
Total TDRs
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
Three Months Ended
June 30, 2022
|
Three Months Ended
June 30, 2021
|
|||||||||||||||
(Dollars in thousands)
|
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Recorded
Investment
|
||||||||||||
Residential
|
|
$
|
|
|
$
|
|
||||||||||
Total TDRs
|
|
$
|
|
|
$
|
|
Six Months Ended
June 30, 2022
|
Six Months Ended
June 30, 2021
|
|||||||||||||||
(Dollars in thousands)
|
Number of
Contracts
|
Recorded
Investment
|
Number of
Contracts
|
Recorded
Investment
|
||||||||||||
Consumer loans:
|
||||||||||||||||
Auto
|
|
$
|
|
|
$
|
|
||||||||||
Total consumer loans
|
|
$
|
|
|
$
|
|
||||||||||
Residential
|
|
$
|
|
|
$
|
|
||||||||||
Total TDRs
|
|
$
|
|
|
$
|
|
6. |
Defined Benefit Post-Retirement Plans
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Three Months Ended
June 30,
|
Three Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Components of net periodic (benefit) cost:
|
||||||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
|
|
||||||||||
Net amortization
|
|
|
|
|
||||||||||||
Total net periodic (benefit) cost
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
Pension Benefits
|
Other Benefits
|
|||||||||||||||
Six Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Components of net periodic (benefit) cost:
|
||||||||||||||||
Service cost
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Interest cost
|
|
|
|
|
||||||||||||
Expected return on plan assets
|
(
|
)
|
(
|
)
|
|
|
||||||||||
Net amortization
|
|
|
|
|
||||||||||||
Total net periodic (benefit) cost
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
7. |
Earnings Per Share
|
Three Months Ended
June 30,
|
||||||||
(In thousands, except per share data)
|
2022
|
2021
|
||||||
Basic EPS:
|
||||||||
Weighted average common shares outstanding
|
|
|
||||||
Net income available to common stockholders
|
$
|
|
$
|
|
||||
Basic EPS
|
$
|
|
$
|
|
||||
Diluted EPS:
|
||||||||
Weighted average common shares outstanding
|
|
|
||||||
Dilutive effect of common stock options and restricted stock
|
|
|
||||||
Weighted average common shares and common share equivalents
|
|
|
||||||
Net income available to common stockholders
|
$
|
|
$
|
|
||||
Diluted EPS
|
$
|
|
$
|
|
Six Months Ended
June 30,
|
||||||||
(In thousands, except per share data)
|
2022
|
2021
|
||||||
Basic EPS:
|
||||||||
Weighted average common shares outstanding
|
|
|
||||||
Net income available to common stockholders
|
$
|
|
$
|
|
||||
Basic EPS
|
$
|
|
$
|
|
||||
Diluted EPS:
|
||||||||
Weighted average common shares outstanding
|
|
|
||||||
Dilutive effect of common stock options and restricted stock
|
|
|
||||||
Weighted average common shares and common share equivalents
|
|
|
||||||
Net income available to common stockholders
|
$
|
|
$
|
|
||||
Diluted EPS
|
$
|
|
$
|
|
8. |
Reclassification Adjustments Out of Other Comprehensive Income (Loss)
|
Detail About AOCI Components
|
Amount Reclassified from AOCI
|
Affected Line Item in the
Consolidated Statement of
Comprehensive Income (Loss)
|
|||||||
Three Months Ended
|
|||||||||
(In thousands)
|
June 30, 2022
|
June 30, 2021
|
|||||||
AFS securities:
|
|||||||||
Amortization of unrealized gains related to securities transfer
|
$
|
|
$
|
|
Interest income
|
||||
Tax effect
|
$
|
(
|
)
|
$
|
(
|
)
|
Income tax (benefit)
|
||
Net of tax
|
$
|
|
$
|
|
|||||
Cash flow hedges:
|
|||||||||
Net unrealized losses on cash flow hedges reclassified to interest expense
|
$
|
|
$
|
|
Interest expense
|
||||
Tax effect
|
$
|
|
$
|
|
Income tax (benefit)
|
||||
Net of tax
|
$
|
|
$
|
|
|||||
Pension and other benefits:
|
|||||||||
Amortization of net losses
|
$
|
|
$
|
|
Other noninterest expense
|
||||
Amortization of prior service costs
|
|
|
Other noninterest expense
|
||||||
Tax effect
|
$
|
(
|
)
|
$
|
(
|
)
|
Income tax (benefit)
|
||
Net of tax
|
$
|
|
$
|
|
|||||
Total reclassifications, net of tax
|
$
|
|
$
|
|
Detail About AOCI Components
|
Amount Reclassified from AOCI
|
Affected Line item in the
Consolidated Statement of
Comprehensive Income (Loss)
|
|||||||
Six Months Ended
|
|||||||||
(In thousands)
|
June 30, 2022 | June 30, 2021 | |||||||
AFS securities:
|
|||||||||
Amortization of unrealized gains related to securities transfer
|
$ |
|
$ |
|
Interest income
|
||||
Tax effect
|
$
|
(
|
)
|
$
|
(
|
)
|
Income tax (benefit)
|
||
Net of tax
|
$
|
|
$
|
|
|||||
Cash flow hedges:
|
|||||||||
Net unrealized losses on cash flow hedges reclassified to interest expense
|
$
|
|
$
|
|
Interest expense
|
||||
Tax effect
|
$
|
|
$
|
(
|
)
|
Income tax (benefit)
|
|||
Net of tax
|
$
|
|
$
|
|
|||||
Pension and other benefits:
|
|||||||||
Amortization of net losses
|
$
|
|
$
|
|
Other noninterest expense
|
||||
Amortization of prior service costs
|
|
|
Other noninterest expense
|
||||||
Tax effect
|
$
|
(
|
)
|
$
|
(
|
)
|
Income tax (benefit)
|
||
Net of tax
|
$
|
|
$
|
|
|||||
Total reclassifications, net of tax
|
$
|
|
$
|
|
9. |
Derivative Instruments and Hedging Activities
|
(In thousands)
|
Notional
Amount
|
Balance
Sheet
Location
|
Fair
Value
|
Notional
Amount
|
Balance
Sheet
Location
|
Fair
Value
|
||||||||||||
As of June 30, 2022
|
||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||
Interest rate derivatives
|
$
|
|
Other assets
|
$
|
|
$
|
|
Other liabilities
|
$
|
|
||||||||
Risk participation agreements
|
|
Other assets
|
|
|
Other liabilities
|
|
||||||||||||
Total derivatives not designated as hedging instruments
|
$
|
|
$
|
|
||||||||||||||
Netting adjustments(1)
|
|
|
||||||||||||||||
Net derivatives in the balance sheet
|
$
|
|
$
|
|
||||||||||||||
Derivatives not offset on the balance sheet
|
$
|
|
$
|
|
||||||||||||||
Cash collateral(2)
|
|
|
||||||||||||||||
Net derivative amounts
|
$
|
|
$
|
|
||||||||||||||
As of December 31, 2021
|
||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||
Interest rate derivatives
|
$
|
|
Other assets
|
$
|
|
$
|
|
Other liabilities
|
$
|
|
||||||||
Risk participation agreements
|
Other assets | Other liabilities | ||||||||||||||||
Total derivatives not designated as hedging instruments
|
$ | $ |
||||||||||||||||
Netting adjustments(1)
|
|
|
(
|
)
|
|
|
|
|||||||||||
Net derivatives in the balance sheet
|
|
$ |
|
|
$ |
|
||||||||||||
Derivatives not offset on the balance sheet
|
$
|
|
$
|
|
||||||||||||||
Cash collateral(2)
|
|
|
||||||||||||||||
Net derivative amounts
|
$
|
|
$
|
|
(1)
|
|
(2)
|
|
Three Months Ended
June 30,
|
Six
Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Derivatives designated as hedging instruments:
|
||||||||||||||||
Interest rate derivatives - included component
|
||||||||||||||||
Amount of loss reclassified from AOCI into interest expense
|
$ |
|
$ |
|
$ |
|
$ |
|
Three Months Ended
June 30,
|
Six
Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Derivatives not designated as hedging instruments:
|
||||||||||||||||
(Decrease) increase in other income
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
10. |
Fair Value Measurements and Fair Value of Financial Instruments
|
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
June 30, 2022
|
||||||||||||
Assets:
|
||||||||||||||||
AFS securities
|
||||||||||||||||
U.S. Treasury
|
$ |
$ |
$ |
$ |
||||||||||||
Federal agency
|
|
|
|
|
|
|
|
|
||||||||
State & municipal
|
|
|
|
|
||||||||||||
Mortgage-backed
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Total AFS securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity securities
|
|
|
|
|
||||||||||||
Derivatives
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(In thousands)
|
Level 1
|
Level 2
|
Level 3
|
December 31, 2021
|
||||||||||||
Assets:
|
||||||||||||||||
AFS securities
|
||||||||||||||||
U.S. Treasury
|
$ |
$ |
$ |
$ |
||||||||||||
Federal agency
|
|
|
|
|
|
|
|
|
||||||||
State & municipal
|
|
|
|
|
||||||||||||
Mortgage-backed
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
|
|
|
|
||||||||||||
Corporate
|
|
|
|
|
||||||||||||
Total AFS securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Equity securities
|
|
|
|
|
||||||||||||
Derivatives
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2022
|
December 31, 2021
|
|||||||||||||||||||
(In thousands)
|
Fair Value
Hierarchy
|
Carrying
Amount
|
Estimated
Fair Value
|
Carrying
Amount
|
Estimated
Fair Value
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
HTM securities
|
2
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Net loans
|
3
|
|
|
|
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Time deposits
|
2
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Long-term debt
|
2
|
|
|
|
|
|||||||||||||||
Subordinated debt
|
1
|
|
|
|
|
|||||||||||||||
Junior subordinated debt
|
2
|
|
|
|
|
11. |
Commitments and Contingencies
|
Item 2 - |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
● |
net income for the three months ended June 30, 2022 was $37.8 million, down $2.5 million from the second quarter of 2021 and down $1.4 million from the first quarter of 2022;
|
● |
diluted earnings per share of $0.88 for the three months ended June 30, 2022, down $0.04 from the second quarter of 2021 and down $0.02 from the first quarter of 2022;
|
● |
noninterest income for the three months ended June 30, 2022 was $41.7 million, up $2.3 million from the second quarter of 2021 and down $1.0 million from the first quarter of 2022; represents 33% of total revenues
excluding securities gains (losses);
|
● |
period end loans were $7.78 billion, up 7.5%, annualized, from December 31, 2021 (9.9% excluding Paycheck Protection Program (“PPP”) loans);
|
● |
strong credit quality metrics including net charge-offs to average loans of 0.04% annualized for the three months ended June 30, 2022 and 0.09% annualized for the six months ended June 30, 2022, and allowance for
loan losses to total loans at 1.20% (1.21% excluding PPP loans and related allowance);
|
● |
book value per share of $27.75 at June 30, 2022; tangible book value per share(1) was $20.99 at June 30, 2022, $21.25 at March 31, 2022, and $21.50 at June 30, 2021.
|
(1) |
Non-GAAP measure - Refer to non-GAAP reconciliation below.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
June 30,
2022
|
March 31,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
||||||||||||||||
Performance:
|
||||||||||||||||||||
Diluted earnings per share
|
$
|
0.88
|
$
|
0.90
|
$
|
0.92
|
$
|
1.78
|
$
|
1.83
|
||||||||||
Return on average assets(2)
|
1.28
|
%
|
1.32
|
%
|
1.39
|
%
|
1.30
|
%
|
1.42
|
%
|
||||||||||
Return on average equity(2)
|
12.73
|
%
|
12.78
|
%
|
13.42
|
%
|
12.76
|
%
|
13.49
|
%
|
||||||||||
Return on average tangible common equity(2)
|
17.00
|
%
|
16.87
|
%
|
17.93
|
%
|
16.93
|
%
|
18.08
|
%
|
||||||||||
Net interest margin, fully taxable equivalent (“FTE”)(2)
|
3.21
|
%
|
2.95
|
%
|
3.00
|
%
|
3.08
|
%
|
3.08
|
%
|
||||||||||
Capital:
|
||||||||||||||||||||
Equity to assets
|
10.14
|
%
|
9.90
|
%
|
10.58
|
%
|
10.14
|
%
|
10.58
|
%
|
||||||||||
Tangible equity ratio
|
7.87
|
%
|
7.70
|
%
|
8.28
|
%
|
7.87
|
%
|
8.28
|
%
|
||||||||||
Book value per share
|
$
|
27.75
|
$
|
27.96
|
$
|
28.19
|
$
|
27.75
|
$
|
28.19
|
||||||||||
Tangible book value per share
|
$
|
20.99
|
$
|
21.25
|
$
|
21.50
|
$
|
20.99
|
$
|
21.50
|
||||||||||
Leverage ratio
|
9.77
|
%
|
9.52
|
%
|
9.40
|
%
|
9.77
|
%
|
9.40
|
%
|
||||||||||
Common equity tier 1 capital ratio
|
12.14
|
%
|
12.23
|
%
|
12.12
|
%
|
12.14
|
%
|
12.12
|
%
|
||||||||||
Tier 1 capital ratio
|
13.27
|
%
|
13.39
|
%
|
13.34
|
%
|
13.27
|
%
|
13.34
|
%
|
||||||||||
Total risk-based capital ratio
|
15.50
|
%
|
15.64
|
%
|
15.78
|
%
|
15.50
|
%
|
15.78
|
%
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
(In thousands, except share and per share data)
|
June 30,
2022
|
March 31,
2022
|
June 30,
2021
|
June 30,
2022
|
June 30,
2021
|
|||||||||||||||
Return on average tangible common equity:
|
||||||||||||||||||||
Net income
|
$
|
37,775
|
$
|
39,126
|
$
|
40,296
|
$
|
76,901
|
$
|
80,142
|
||||||||||
Amortization of intangible assets (net of tax)
|
409
|
477
|
512
|
886
|
1,121
|
|||||||||||||||
Net income, excluding intangible amortization
|
$
|
38,184
|
$
|
39,603
|
$
|
40,808
|
$
|
77,787
|
$
|
81,263
|
||||||||||
Average stockholders’ equity
|
$
|
1,190,585
|
$
|
1,241,188
|
$
|
1,203,974
|
$
|
1,215,747
|
$
|
1,197,662
|
||||||||||
Less: average goodwill and other intangibles
|
289,584
|
289,218
|
291,133
|
289,402
|
291,525
|
|||||||||||||||
Average tangible common equity
|
$
|
901,001
|
$
|
951,970
|
$
|
912,841
|
$
|
926,345
|
$
|
906,137
|
||||||||||
Return on average tangible common equity (2)
|
17.00
|
%
|
16.87
|
%
|
17.93
|
%
|
16.93
|
%
|
18.08
|
%
|
||||||||||
Tangible equity ratio:
|
||||||||||||||||||||
Stockholders’ equity
|
$
|
1,188,556
|
$
|
1,202,250
|
$
|
1,225,056
|
$
|
1,188,556
|
$
|
1,225,056
|
||||||||||
Intangibles
|
289,259
|
288,832
|
290,782
|
289,259
|
290,782
|
|||||||||||||||
Assets
|
$
|
11,720,459
|
$
|
12,147,833
|
$
|
11,574,947
|
$
|
11,720,459
|
$
|
11,574,947
|
||||||||||
Tangible equity ratio
|
7.87
|
%
|
7.70
|
%
|
8.28
|
%
|
7.87
|
%
|
8.28
|
%
|
||||||||||
Tangible book value:
|
||||||||||||||||||||
Stockholders’ equity
|
$
|
1,188,556
|
$
|
1,202,250
|
$
|
1,225,056
|
$
|
1,188,556
|
$
|
1,225,056
|
||||||||||
Intangibles
|
289,259
|
288,832
|
290,782
|
289,259
|
290,782
|
|||||||||||||||
Tangible equity
|
$
|
899,297
|
$
|
913,418
|
$
|
934,274
|
$
|
899,297
|
$
|
934,274
|
||||||||||
Diluted common shares outstanding
|
42,836
|
42,992
|
43,455
|
42,836
|
43,455
|
|||||||||||||||
Tangible book value
|
$
|
20.99
|
$
|
21.25
|
$
|
21.50
|
$
|
20.99
|
$
|
21.50
|
Three Months Ended
|
June 30, 2022
|
June 30, 2021
|
||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Interest
|
Yield/
Rates
|
Average
Balance
|
Interest
|
Yield/
Rates
|
||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
553,548
|
$
|
1,129
|
0.82
|
%
|
$
|
974,034
|
$
|
224
|
0.09
|
%
|
||||||||||||
Securities taxable (1)
|
2,439,960
|
10,575
|
1.74
|
%
|
1,864,542
|
7,875
|
1.69
|
%
|
||||||||||||||||
Securities tax-exempt (1) (3)
|
256,799
|
1,174
|
1.83
|
%
|
193,108
|
1,245
|
2.59
|
%
|
||||||||||||||||
Federal Reserve Bank and FHLB stock
|
24,983
|
313
|
5.03
|
%
|
25,115
|
167
|
2.67
|
%
|
||||||||||||||||
Loans (2) (3)
|
7,707,730
|
78,582
|
4.09
|
%
|
7,574,272
|
74,832
|
3.96
|
%
|
||||||||||||||||
Total interest-earning assets
|
$
|
10,983,020
|
$
|
91,773
|
3.35
|
%
|
$
|
10,631,071
|
$
|
84,343
|
3.18
|
%
|
||||||||||||
Other assets
|
883,498
|
971,681
|
||||||||||||||||||||||
Total assets
|
$
|
11,866,518
|
$
|
11,602,752
|
||||||||||||||||||||
Liabilities and stockholders’ equity:
|
||||||||||||||||||||||||
Money market deposit accounts
|
$
|
2,577,367
|
$
|
902
|
0.14
|
%
|
$
|
2,605,767
|
$
|
1,364
|
0.21
|
%
|
||||||||||||
NOW deposit accounts
|
1,580,132
|
268
|
0.07
|
%
|
1,454,751
|
179
|
0.05
|
%
|
||||||||||||||||
Savings deposits
|
1,845,128
|
150
|
0.03
|
%
|
1,660,722
|
212
|
0.05
|
%
|
||||||||||||||||
Time deposits
|
478,531
|
436
|
0.37
|
%
|
591,147
|
1,107
|
0.75
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
$
|
6,481,158
|
$
|
1,756
|
0.11
|
%
|
$
|
6,312,387
|
$
|
2,862
|
0.18
|
%
|
||||||||||||
Federal funds purchased
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Repurchase agreements
|
60,061
|
13
|
0.09
|
%
|
95,226
|
32
|
0.13
|
%
|
||||||||||||||||
Short-term borrowings
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Long-term debt
|
5,336
|
33
|
2.48
|
%
|
14,053
|
88
|
2.51
|
%
|
||||||||||||||||
Subordinated debt, net
|
98,642
|
1,359
|
5.53
|
%
|
98,204
|
1,359
|
5.55
|
%
|
||||||||||||||||
Junior subordinated debt
|
101,196
|
737
|
2.92
|
%
|
101,196
|
525
|
2.08
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
$
|
6,746,393
|
$
|
3,898
|
0.23
|
%
|
$
|
6,621,066
|
$
|
4,866
|
0.29
|
%
|
||||||||||||
Demand deposits
|
$
|
3,711,049
|
$
|
3,542,176
|
||||||||||||||||||||
Other liabilities
|
218,491
|
235,536
|
||||||||||||||||||||||
Stockholders’ equity
|
1,190,585
|
1,203,974
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
11,866,518
|
$
|
11,602,752
|
||||||||||||||||||||
Net interest income (FTE)
|
$
|
87,875
|
$
|
79,477
|
||||||||||||||||||||
Interest rate spread
|
3.12
|
%
|
2.89
|
%
|
||||||||||||||||||||
Net interest margin (FTE)
|
3.21
|
%
|
3.00
|
%
|
||||||||||||||||||||
Taxable equivalent adjustment
|
$
|
290
|
$
|
299
|
||||||||||||||||||||
Net interest income
|
$
|
87,585
|
$
|
79,178
|
(1) |
Securities are shown at average amortized cost.
|
(2) |
For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
|
(3) |
Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%.
|
Six Months Ended
|
June 30, 2022
|
June 30, 2021
|
||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Interest
|
Yield/
Rates
|
Average
Balance
|
Interest
|
Yield/
Rates
|
||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Short-term interest-bearing accounts
|
$
|
770,727
|
$
|
1,533
|
0.40
|
%
|
$
|
781,764
|
$
|
360
|
0.09
|
%
|
||||||||||||
Securities taxable (1)
|
2,362,699
|
19,981
|
1.71
|
%
|
1,817,008
|
15,806
|
1.75
|
%
|
||||||||||||||||
Securities tax-exempt (1) (3)
|
257,651
|
2,347
|
1.84
|
%
|
188,998
|
2,504
|
2.67
|
%
|
||||||||||||||||
Federal Reserve Bank and FHLB stock
|
25,004
|
434
|
3.50
|
%
|
25,359
|
322
|
2.56
|
%
|
||||||||||||||||
Loans (2) (3)
|
7,619,691
|
151,964
|
4.02
|
%
|
7,574,304
|
149,963
|
3.99
|
%
|
||||||||||||||||
Total interest-earning assets
|
$
|
11,035,772
|
$
|
176,259
|
3.22
|
%
|
$
|
10,387,433
|
$
|
168,955
|
3.28
|
%
|
||||||||||||
Other assets
|
915,361
|
966,367
|
||||||||||||||||||||||
Total assets
|
$
|
11,951,133
|
$
|
11,353,800
|
||||||||||||||||||||
Liabilities and stockholders’ equity:
|
||||||||||||||||||||||||
Money market deposit accounts
|
$
|
2,648,458
|
$
|
1,924
|
0.15
|
%
|
$
|
2,545,280
|
$
|
2,755
|
0.22
|
%
|
||||||||||||
NOW deposit accounts
|
1,581,603
|
460
|
0.06
|
%
|
1,407,118
|
348
|
0.05
|
%
|
||||||||||||||||
Savings deposits
|
1,819,978
|
293
|
0.03
|
%
|
1,604,664
|
406
|
0.05
|
%
|
||||||||||||||||
Time deposits
|
486,537
|
921
|
0.38
|
%
|
603,178
|
2,525
|
0.84
|
%
|
||||||||||||||||
Total interest-bearing deposits
|
$
|
6,536,576
|
$
|
3,598
|
0.11
|
%
|
$
|
6,160,240
|
$
|
6,034
|
0.20
|
%
|
||||||||||||
Federal funds purchased
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Repurchase agreements
|
66,379
|
29
|
0.09
|
%
|
102,525
|
75
|
0.15
|
%
|
||||||||||||||||
Short-term borrowings
|
-
|
-
|
-
|
2,624
|
27
|
2.07
|
%
|
|||||||||||||||||
Long-term debt
|
9,634
|
120
|
2.51
|
%
|
16,967
|
212
|
2.52
|
%
|
||||||||||||||||
Subordinated debt, net
|
98,587
|
2,718
|
5.56
|
%
|
98,149
|
2,718
|
5.58
|
%
|
||||||||||||||||
Junior subordinated debt
|
101,196
|
1,286
|
2.56
|
%
|
101,196
|
1,055
|
2.10
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
$
|
6,812,372
|
$
|
7,751
|
0.23
|
%
|
$
|
6,481,701
|
$
|
10,121
|
0.31
|
%
|
||||||||||||
Demand deposits
|
$
|
3,710,589
|
$
|
3,431,216
|
||||||||||||||||||||
Other liabilities
|
212,425
|
243,221
|
||||||||||||||||||||||
Stockholders’ equity
|
1,215,747
|
1,197,662
|
||||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
11,951,133
|
$
|
11,353,800
|
||||||||||||||||||||
Net interest income (FTE)
|
$
|
168,508
|
$
|
158,834
|
||||||||||||||||||||
Interest rate spread
|
2.99
|
%
|
2.97
|
%
|
||||||||||||||||||||
Net interest margin (FTE)
|
3.08
|
%
|
3.08
|
%
|
||||||||||||||||||||
Taxable equivalent adjustment
|
$
|
575
|
$
|
601
|
||||||||||||||||||||
Net interest income
|
$
|
167,933
|
$
|
158,233
|
(1) |
Securities are shown at average amortized cost.
|
(2) |
For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.
|
(3) |
Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%.
|
Three Months Ended June 30,
|
Increase (Decrease)
2022 over 2021
|
|||||||||||
(In thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Short-term interest-bearing accounts
|
$
|
(136
|
)
|
$
|
1,041
|
$
|
905
|
|||||
Securities taxable
|
2,489
|
211
|
2,700
|
|||||||||
Securities tax-exempt
|
347
|
(418
|
)
|
(71
|
)
|
|||||||
Federal Reserve Bank and FHLB stock
|
(1
|
)
|
147
|
146
|
||||||||
Loans
|
1,333
|
2,417
|
3,750
|
|||||||||
Total FTE interest income
|
$
|
4,032
|
$
|
3,398
|
$
|
7,430
|
||||||
Money market deposit accounts
|
$
|
(15
|
)
|
$
|
(447
|
)
|
$
|
(462
|
)
|
|||
NOW deposit accounts
|
17
|
72
|
89
|
|||||||||
Savings deposits
|
22
|
(84
|
)
|
(62
|
)
|
|||||||
Time deposits
|
(182
|
)
|
(489
|
)
|
(671
|
)
|
||||||
Repurchase agreements
|
(10
|
)
|
(9
|
)
|
(19
|
)
|
||||||
Short-term borrowings
|
-
|
-
|
-
|
|||||||||
Long-term debt
|
(54
|
)
|
(1
|
)
|
(55
|
)
|
||||||
Subordinated debt, net
|
6
|
(6
|
)
|
-
|
||||||||
Junior subordinated debt
|
-
|
212
|
212
|
|||||||||
Total FTE interest expense
|
$
|
(216
|
)
|
$
|
(752
|
)
|
$
|
(968
|
)
|
|||
Change in FTE net interest income
|
$
|
4,248
|
$
|
4,150
|
$
|
8,398
|
Six Months Ended June 30,
|
Increase (Decrease)
2022 over 2021
|
|||||||||||
(In thousands)
|
Volume
|
Rate
|
Total
|
|||||||||
Short-term interest-bearing accounts
|
$
|
(5
|
)
|
$
|
1,178
|
$
|
1,173
|
|||||
Securities taxable
|
4,626
|
(451
|
)
|
4,175
|
||||||||
Securities tax exempt
|
757
|
(914
|
)
|
(157
|
)
|
|||||||
Federal Reserve Bank and FHLB stock
|
(5
|
)
|
117
|
112
|
||||||||
Loans
|
902
|
1,099
|
2,001
|
|||||||||
Total FTE interest income
|
$
|
6,275
|
$
|
1,029
|
$
|
7,304
|
||||||
Money market deposit accounts
|
$
|
108
|
$
|
(939
|
)
|
$
|
(831
|
)
|
||||
NOW deposit accounts
|
46
|
66
|
112
|
|||||||||
Savings deposits
|
49
|
(162
|
)
|
(113
|
)
|
|||||||
Time deposits
|
(418
|
)
|
(1,186
|
)
|
(1,604
|
)
|
||||||
Repurchase agreements
|
(21
|
)
|
(25
|
)
|
(46
|
)
|
||||||
Short-term borrowings
|
(14
|
)
|
(14
|
)
|
(28
|
)
|
||||||
Long-term debt
|
(91
|
)
|
(1
|
)
|
(92
|
)
|
||||||
Subordinated debt
|
12
|
(12
|
)
|
-
|
||||||||
Junior subordinated debt
|
-
|
232
|
232
|
|||||||||
Total FTE interest expense
|
$
|
(329
|
)
|
$
|
(2,041
|
)
|
$
|
(2,370
|
)
|
|||
Change in net FTE interest income
|
$
|
6,604
|
$
|
3,070
|
$
|
9,674
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Service charges on deposit accounts
|
$
|
3,763
|
$
|
3,028
|
$
|
7,451
|
$
|
6,055
|
||||||||
Card services income
|
9,751
|
9,184
|
18,446
|
16,734
|
||||||||||||
Retirement plan administration fees
|
12,676
|
9,779
|
25,955
|
19,877
|
||||||||||||
Wealth management
|
8,252
|
8,406
|
16,892
|
16,316
|
||||||||||||
Insurance services
|
3,578
|
3,508
|
7,366
|
6,969
|
||||||||||||
Bank owned life insurance
|
1,411
|
1,659
|
3,065
|
3,040
|
||||||||||||
Net securities (losses) gains
|
(587
|
)
|
201
|
(766
|
)
|
668
|
||||||||||
Other
|
2,812
|
3,551
|
5,906
|
6,695
|
||||||||||||
Total noninterest income
|
$
|
41,656
|
$
|
39,316
|
$
|
84,315
|
$
|
76,354
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
(In thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Salaries and employee benefits
|
$
|
46,716
|
$
|
42,671
|
$
|
92,224
|
$
|
84,272
|
||||||||
Technology and data services
|
8,945
|
8,841
|
17,492
|
17,733
|
||||||||||||
Occupancy
|
6,487
|
6,370
|
13,280
|
13,259
|
||||||||||||
Professional fees and outside services
|
3,906
|
4,030
|
8,182
|
7,619
|
||||||||||||
Office supplies and postage
|
1,548
|
1,615
|
2,972
|
3,114
|
||||||||||||
FDIC expense
|
810
|
663
|
1,612
|
1,471
|
||||||||||||
Advertising
|
730
|
468
|
1,384
|
919
|
||||||||||||
Amortization of intangible assets
|
545
|
682
|
1,181
|
1,494
|
||||||||||||
Loan collection and other real estate owned, net
|
757
|
663
|
1,141
|
1,253
|
||||||||||||
Other
|
5,675
|
5,416
|
8,794
|
8,173
|
||||||||||||
Total noninterest expense
|
$
|
76,119
|
$
|
71,419
|
$
|
148,262
|
$
|
139,307
|
June 30, 2022
|
December 31, 2021
|
|||||||
Mortgage-backed securities:
|
||||||||
With maturities 15 years or less
|
14
|
%
|
18
|
%
|
||||
With maturities greater than 15 years
|
11
|
%
|
8
|
%
|
||||
Collateralized mortgage obligations
|
37
|
%
|
34
|
%
|
||||
Municipal securities
|
15
|
%
|
17
|
%
|
||||
U.S. agency notes
|
20
|
%
|
20
|
%
|
||||
Corporate
|
2
|
%
|
2
|
%
|
||||
Equity securities
|
1
|
%
|
1
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
(In thousands)
|
June 30, 2022
|
December 31, 2021
|
||||||
Commercial
|
$
|
1,298,072
|
$
|
1,155,240
|
||||
Commercial real estate
|
2,670,633
|
2,655,367
|
||||||
Paycheck protection program
|
17,286
|
101,222
|
||||||
Residential real estate mortgages
|
1,606,188
|
1,571,232
|
||||||
Indirect auto
|
936,516
|
859,454
|
||||||
Residential solar
|
599,565
|
440,016
|
||||||
Home equity
|
313,395
|
330,357
|
||||||
Other consumer
|
336,026
|
385,571
|
||||||
Total loans
|
$
|
7,777,681
|
$
|
7,498,459
|
(1) |
Loans are summarized by business line which does not align to how the Company assesses credit risk in the estimate for credit losses under CECL.
|
June 30, 2022
|
December 31, 2021
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Nonaccrual loans:
|
||||||||||||||||
Commercial
|
$
|
14,194
|
60
|
%
|
$
|
15,942
|
53
|
%
|
||||||||
Residential
|
5,163
|
22
|
%
|
8,862
|
29
|
%
|
||||||||||
Consumer
|
1,421
|
6
|
%
|
1,511
|
5
|
%
|
||||||||||
Troubled debt restructured loans
|
2,895
|
12
|
%
|
3,970
|
13
|
%
|
||||||||||
Total nonaccrual loans
|
$
|
23,673
|
100
|
%
|
$
|
30,285
|
100
|
%
|
||||||||
Loans over 90 days past due and still accruing:
|
||||||||||||||||
Commercial
|
$
|
40
|
2
|
%
|
$
|
-
|
-
|
|||||||||
Residential
|
600
|
29
|
%
|
808
|
33
|
%
|
||||||||||
Consumer
|
1,456
|
69
|
%
|
1,650
|
67
|
%
|
||||||||||
Total loans over 90 days past due and still accruing
|
$
|
2,096
|
100
|
%
|
$
|
2,458
|
100
|
%
|
||||||||
Total nonperforming loans
|
$
|
25,769
|
$
|
32,743
|
||||||||||||
OREO
|
-
|
167
|
||||||||||||||
Total nonperforming assets
|
$
|
25,769
|
$
|
32,910
|
||||||||||||
Total nonaccrual loans to total loans
|
0.30
|
%
|
0.40
|
%
|
||||||||||||
Total nonperforming loans to total loans
|
0.33
|
%
|
0.44
|
%
|
||||||||||||
Total nonperforming assets to total assets
|
0.22
|
%
|
0.27
|
%
|
||||||||||||
Total allowance for loan losses to total nonperforming loans
|
363.23
|
%
|
280.98
|
%
|
||||||||||||
Total allowance for loan losses to nonaccrual loans
|
395.39
|
%
|
303.78
|
%
|
Capital Measurements
|
June 30, 2022
|
December 31, 2021
|
||||||
Tier 1 leverage ratio
|
9.77
|
%
|
9.41
|
%
|
||||
Common equity tier 1 capital ratio
|
12.14
|
%
|
12.25
|
%
|
||||
Tier 1 capital ratio
|
13.27
|
%
|
13.43
|
%
|
||||
Total risk-based capital ratio
|
15.50
|
%
|
15.73
|
%
|
||||
Cash dividends as a percentage of net income
|
31.31
|
%
|
30.82
|
%
|
||||
Per common share:
|
||||||||
Book value
|
$
|
27.75
|
$
|
28.97
|
||||
Tangible book value(1)
|
$
|
20.99
|
$
|
22.26
|
||||
Tangible equity ratio(2)
|
7.87
|
%
|
8.20
|
%
|
(1) |
Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding.
|
(2) |
Non-GAAP measure - Stockholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets.
|
Interest Rate Sensitivity Analysis
|
|
Change in interest rates
|
Percent change in
|
(in bps points)
|
net interest income
|
+200
|
4.32%
|
+100
|
2.37%
|
-50
|
(1.40%)
|
Item 3 - |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4 - |
CONTROLS AND PROCEDURES
|
Item 1 – |
LEGAL PROCEEDINGS
|
Item 1A – |
RISK FACTORS
|
Item 2 – |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
(a) |
Not applicable
|
(b) |
Not applicable
|
(c) |
The table below sets forth the information with respect to purchases made by the Company or any “affiliated purchaser” (as defined in Rule 10b-18(a) (3) under the Securities Exchange Act of 1934) of our common stock
during the quarter ended June 30, 2022:
|
Period
|
Total Number of
Shares Purchased
|
Average Price
Paid Per Share
|
Total Number of Shares
Purchased as Part of Publicly
Announced Plan
|
Maximum Number of Shares
That May Yet be Purchased
Under the Plans(1)
|
|||||||||
4/1/22 - 4/30/22
|
182,900
|
$
|
35.88
|
182,900
|
1,600,000
|
||||||||
5/1/22 - 5/31/22
|
-
|
-
|
-
|
1,600,000
|
|||||||||
6/1/22 - 6/30/22
|
-
|
-
|
-
|
1,600,000
|
|||||||||
Total
|
182,900
|
$
|
35.88
|
182,900
|
1,600,000
|
(1) |
The Company purchased 182,900 shares of its common stock during the second quarter of 2022 at an average price of $35.88 per share under its previously announced share repurchase program. As of June 30, 2022, there
were 1,600,000 shares available for repurchase under this plan announced on December 20, 2021, and set to expire on December 31, 2023.
|
Item 3 – |
DEFAULTS UPON SENIOR SECURITIES
|
Item 4 – |
MINE SAFETY DISCLOSURES
|
Item 5 – |
OTHER INFORMATION
|
Item 6 – |
EXHIBITS
|
3.1
|
Restated Certificate of Incorporation of NBT Bancorp Inc. as amended through July 1, 2015 (filed as Exhibit 3.1 to
Registrant’s Form 10-Q, filed on August 10, 2015 and incorporated herein by reference).
|
3.2
|
Amended and Restated Bylaws of NBT Bancorp Inc. effective May 22, 2018 (filed as Exhibit 3.1 to Registrant’s Form 8-K,
filed on May 23, 2018 and incorporated herein by reference).
|
3.3
|
Certificate of Designation of the Series A Junior Participating Preferred Stock (filed as Exhibit A to Exhibit 4.1 of the
Registrant’s Form 8-K, filed on November 18, 2004 and incorporated herein by reference).
|
Certification by the Chief Executive Officer pursuant to Rules 13(a)-14(a)/15(d)-14(e) of the Securities and Exchange Act of 1934.
|
|
Certification by the Chief Financial Officer pursuant to Rules 13(a)-14(a)/15(d)-14(e) of the Securities and Exchange Act of 1934.
|
|
Certification by the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
NBT BANCORP INC.
|
||
By:
|
/s/ Scott A. Kingsley
|
|
Scott A. Kingsley
|
||
Chief Financial Officer
|
By:
|
/s/ John H. Watt, Jr.
|
|
John H. Watt, Jr.
|
||
Chief Executive Officer
|
By:
|
/s/ Scott A. Kingsley
|
|
Scott A. Kingsley
|
||
Chief Financial Officer
|
/s/ John H. Watt, Jr.
|
||
John H. Watt, Jr.
|
||
Chief Executive Officer
|
||
August 8, 2022
|
/s/ Scott A. Kingsley
|
||
Scott A. Kingsley
|
||
Chief Financial Officer
|
||
August 8, 2022
|
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets | ||
Securities held to maturity fair value | $ 864,234 | $ 735,260 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 49,651,493 | 49,651,493 |
Common stock in treasury, at cost (in shares) | 6,815,087 | 6,483,481 |
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Interest, fee and dividend income | ||||
Interest and fees on loans | $ 78,539 | $ 74,795 | $ 151,882 | $ 149,888 |
Securities available for sale | 7,317 | 5,762 | 14,157 | 11,306 |
Securities held to maturity | 4,185 | 3,096 | 7,678 | 6,478 |
Other | 1,442 | 391 | 1,967 | 682 |
Total interest, fee and dividend income | 91,483 | 84,044 | 175,684 | 168,354 |
Interest expense | ||||
Deposits | 1,756 | 2,862 | 3,598 | 6,034 |
Short-term borrowings | 13 | 32 | 29 | 102 |
Long-term debt | 33 | 88 | 120 | 212 |
Subordinated debt | 1,359 | 1,359 | 2,718 | 2,718 |
Junior subordinated debt | 737 | 525 | 1,286 | 1,055 |
Total interest expense | 3,898 | 4,866 | 7,751 | 10,121 |
Net interest income | 87,585 | 79,178 | 167,933 | 158,233 |
Provision for loan losses | 4,390 | (5,216) | 4,986 | (8,012) |
Net interest income after provision for loan losses | 83,195 | 84,394 | 162,947 | 166,245 |
Noninterest income | ||||
Service charges on deposit accounts | 3,763 | 3,028 | 7,451 | 6,055 |
Card services income | 9,751 | 9,184 | 18,446 | 16,733 |
Retirement plan administration fees | 12,676 | 9,779 | 25,955 | 19,877 |
Wealth management | 8,252 | 8,406 | 16,892 | 16,316 |
Insurance services | 3,578 | 3,508 | 7,366 | 6,969 |
Bank owned life insurance income | 1,411 | 1,659 | 3,065 | 3,040 |
Net securities (losses) gains | (587) | 201 | (766) | 668 |
Other | 2,812 | 3,551 | 5,906 | 6,696 |
Total noninterest income | 41,656 | 39,316 | 84,315 | 76,354 |
Noninterest expense | ||||
Salaries and employee benefits | 46,716 | 42,671 | 92,224 | 84,272 |
Technology and data services | 8,945 | 8,841 | 17,492 | 17,733 |
Occupancy | 6,487 | 6,370 | 13,280 | 13,259 |
Professional fees and outside services | 3,906 | 4,030 | 8,182 | 7,619 |
Office supplies and postage | 1,548 | 1,615 | 2,972 | 3,114 |
FDIC expense | 810 | 663 | 1,612 | 1,471 |
Advertising | 730 | 468 | 1,384 | 919 |
Amortization of intangible assets | 545 | 682 | 1,181 | 1,494 |
Loan collection and other real estate owned, net | 757 | 663 | 1,141 | 1,253 |
Other | 5,675 | 5,416 | 8,794 | 8,173 |
Total noninterest expense | 76,119 | 71,419 | 148,262 | 139,307 |
Income before income tax expense | 48,732 | 52,291 | 99,000 | 103,292 |
Income tax expense | 10,957 | 11,995 | 22,099 | 23,150 |
Net income | $ 37,775 | $ 40,296 | $ 76,901 | $ 80,142 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.88 | $ 0.93 | $ 1.79 | $ 1.84 |
Diluted (in dollars per share) | $ 0.88 | $ 0.92 | $ 1.78 | $ 1.83 |
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands |
Common Stock [Member] |
Additional Paid-in-Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive (Loss) Income [Member] |
Common Stock in Treasury [Member] |
Total |
---|---|---|---|---|---|---|
Balance at Dec. 31, 2020 | $ 497 | $ 578,082 | $ 749,056 | $ 417 | $ (140,434) | $ 1,187,618 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 80,142 | 0 | 0 | 80,142 |
Cash dividends | 0 | 0 | (23,476) | 0 | 0 | (23,476) |
Purchase of treasury shares | 0 | 0 | 0 | 0 | (9,871) | (9,871) |
Net issuance of shares to employee and other stock plans | 0 | (4,606) | 0 | 0 | 1,702 | (2,904) |
Stock-based compensation | 0 | 3,256 | 0 | 0 | 0 | 3,256 |
Other comprehensive income (loss) | 0 | 0 | 0 | (9,709) | 0 | (9,709) |
Balance at Jun. 30, 2021 | 497 | 576,732 | 805,722 | (9,292) | (148,603) | 1,225,056 |
Balance at Mar. 31, 2021 | 497 | 578,597 | 777,170 | (16,699) | (148,584) | 1,190,981 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 40,296 | 0 | 0 | 40,296 |
Cash dividends | 0 | 0 | (11,744) | 0 | 0 | (11,744) |
Purchase of treasury shares | 0 | 0 | 0 | 0 | (851) | (851) |
Net issuance of shares to employee and other stock plans | 0 | (2,453) | 0 | 0 | 832 | (1,621) |
Stock-based compensation | 0 | 588 | 0 | 0 | 0 | 588 |
Other comprehensive income (loss) | 0 | 0 | 0 | 7,407 | 0 | 7,407 |
Balance at Jun. 30, 2021 | 497 | 576,732 | 805,722 | (9,292) | (148,603) | 1,225,056 |
Balance at Dec. 31, 2021 | 497 | 576,976 | 856,203 | (23,344) | (159,879) | 1,250,453 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 76,901 | 0 | 0 | 76,901 |
Cash dividends | 0 | 0 | (24,075) | 0 | 0 | (24,075) |
Purchase of treasury shares | 0 | 0 | 0 | 0 | (14,713) | (14,713) |
Net issuance of shares to employee and other stock plans | 0 | (2,910) | 0 | 0 | 1,058 | (1,852) |
Stock-based compensation | 0 | 3,279 | 0 | 0 | 0 | 3,279 |
Other comprehensive income (loss) | 0 | 0 | 0 | (101,437) | 0 | (101,437) |
Balance at Jun. 30, 2022 | 497 | 577,345 | 909,029 | (124,781) | (173,534) | 1,188,556 |
Balance at Mar. 31, 2022 | 497 | 577,374 | 883,246 | (91,375) | (167,492) | 1,202,250 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 0 | 0 | 37,775 | 0 | 0 | 37,775 |
Cash dividends | 0 | 0 | (11,992) | 0 | 0 | (11,992) |
Purchase of treasury shares | 0 | 0 | 0 | 0 | (6,561) | (6,561) |
Net issuance of shares to employee and other stock plans | 0 | (836) | 0 | 0 | 519 | (317) |
Stock-based compensation | 0 | 807 | 0 | 0 | 0 | 807 |
Other comprehensive income (loss) | 0 | 0 | 0 | (33,406) | 0 | (33,406) |
Balance at Jun. 30, 2022 | $ 497 | $ 577,345 | $ 909,029 | $ (124,781) | $ (173,534) | $ 1,188,556 |
Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Consolidated Statements of Stockholders' Equity (unaudited) [Abstract] | ||||
Cash dividends - per share (in dollars per share) | $ 0.28 | $ 0.27 | $ 0.56 | $ 0.54 |
Purchase of treasury shares (in shares) | 182,900 | 23,627 | 400,000 | 280,658 |
Net issuance of shares to employee benefit plans and other stock plans (in shares) | 26,983 | 53,788 | 68,394 | 106,927 |
Description of Business |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Description of Business [Abstract] | |||
Description of Business |
NBT Bancorp Inc. (the “Company”) is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in
Norwich, New York. The principal assets of the Company consist of all of the outstanding shares of common stock of its subsidiaries, including: NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings,
Inc. (“NBT Holdings”), CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The Company’s principal sources of revenue are the
management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings.
The Company’s business, primarily conducted through the Bank, consists of providing commercial banking, retail banking and wealth management services primarily to
customers in its market area, which includes central and upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine and central Connecticut. The Company has been, and intends to continue to be,
a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, providing a broad array of banking and financial services to retail,
commercial and municipal customers.
|
Summary of Significant Accounting Policies |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Summary of Significant Accounting Policies [Abstract] | |||
Summary of Significant Accounting Policies |
Basis of Presentation
The accompanying
unaudited interim consolidated financial statements include the accounts of NBT Bancorp Inc. and its wholly-owned subsidiaries: the Bank, NBT Financial and NBT Holdings. Collectively, NBT Bancorp Inc. and its subsidiaries are referred to herein as
(the “Company”). In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in accordance with generally accepted
accounting principles in the United States of America (“GAAP”) and in accordance with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly,
the consolidated financial statements do not include all of the information and notes necessary for complete financial statements in conformity with GAAP. These unaudited interim consolidated financial statements should be read in conjunction with
the audited consolidated financial statements and notes thereto included in the Company’s 2021 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the
full year or any other interim period. All material intercompany transactions have been eliminated in consolidation. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period
presentation. The Company combined ATM and debit card fees with card related income previously reported in Other noninterest income which is now disclosed as Card services income. The Company reclassified Data processing and communications expense
into Technology and data services expense. The Company reclassified Equipment expense into Occupancy expense and Technology and data services expense. The Company has evaluated subsequent events for potential recognition and/or disclosure and there
were none identified.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial
statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.
|
Recent Accounting Pronouncements |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2022 | |||
Recent Accounting Pronouncements [Abstract] | |||
Recent Accounting Pronouncements |
Accounting Standards Issued Not Yet Adopted
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates
(“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. On January 7, 2021, the FASB issued ASU 2021-01, which refines the scope of Accounting Standards Codification 848 (“ASC 848”) and clarifies some of its guidance. ASU 2020-04 and related
amendments provide temporary optional expedients and exceptions to the existing guidance for applying GAAP to affected contract modifications and hedge accounting relationships in the transition away from the London Interbank Offered Rate
(“LIBOR”) or other interbank offered rate on financial reporting. The guidance also allows a one-time election to sell and/or reclassify to available for sale (“AFS”) or trading held to maturity (“HTM”) debt securities that reference an interest
rate affected by reference rate reform. The amendments in this ASU are effective March 12, 2020 through December 31, 2022 and permit relief solely for reference rate reform actions and permit different elections over the effective date for legacy
and new activity. The Company does not expect that the impact of adopting the new guidance on the consolidated financial
statements will have a material impact on the consolidated financial statements.
In March 2022, the FASB issued ASU 2022-02, Financial Instruments - CECL Losses (Topic 326): Troubled
Debt Restructurings and Vintage Disclosures. The ASU eliminates the guidance on
Troubled Debt Restructurings (“TDRs”) and requires an evaluation on all loan modifications to determine if they result in a new loan or a continuation of the existing loan. The ASU also requires that entities disclose current-period gross
charge-offs by year of origination. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a
cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. The amendments in this ASU are effective for the Company on January 1, 2023, with early adoption permitted. The Company is evaluating the impact of adopting the new guidance on the consolidated financial statements and does not expect it will have a material impact on the
consolidated financial statements.
|
Securities |
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities |
The amortized cost, estimated fair value and unrealized gains and losses of AFS securities are as follows:
There was no allowance for credit losses on AFS
securities as of June 30, 2022 and December 31, 2021.
During the three and six months ended June 30, 2022 and 2021 there were no
gains or losses reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings.
The amortized cost, estimated fair value and unrealized gains and losses of HTM securities are as follows:
At June 30, 2022 and December 31, 2021, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and government-sponsored enterprises
securities. There was no allowance for credit losses on HTM
securities as of June 30, 2022 and December 31, 2021 because the expectation of nonrepayment of the amortized cost is zero, except for state & municipal securities, which such expected losses are immaterial.
The Company recorded no gains from calls on HTM securities for the three months ended June 30, 2022 and 2021.
Included in net realized gains (losses), the Company recorded gains from calls on HTM securities of approximately $4 thousand and $15 thousand
for the six months ended June 30, 2022 and 2021, respectively.
AFS and HTM securities with amortized costs totaling $1.7
billion at June 30, 2022 and $1.6 billion at December 31, 2021 were pledged to secure public deposits and for other purposes required or
permitted by law. Additionally, at June 30, 2022 and December 31, 2021, AFS and HTM securities with an amortized cost of $137.0 million and
$162.1 million, respectively, were pledged as collateral for securities sold under repurchase agreements.
The following tables set forth information with regard to gains and (losses) on equity securities:
As of June 30, 2022 and December 31, 2021, the carrying value of equity securities without readily
determinable fair values was $1.0 million. The Company performed a qualitative assessment to determine whether the investments were
impaired and identified no areas of concern as of June 30, 2022 and 2021. There were no impairments, downward or upward adjustments
recognized for equity securities without readily determinable fair values during the three and six months ended June 30, 2022 and 2021.
The following table sets forth information with regard to contractual maturities of debt securities at June 30, 2022:
Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may
differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
Except for U.S. government securities and government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at June 30, 2022 and December
31, 2021.
The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded,
segregated according to the length of time the securities had been in a continuous unrealized loss position:
The Company does not believe the AFS securities that were in an unrealized loss position as of June 30, 2022 and December 31, 2021, which consisted of 373 and 149 individual securities,
respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of June 30, 2022 and December 31, 2021, the majority of the AFS
securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized
as “risk free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the
investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude
accrued interest receivable (“AIR”) from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $4.1 million at
June 30, 2022 and $3.9 million at December 31, 2021 and is excluded from the estimate of credit losses and reported in the financial
statement line for other assets.
None of the Bank’s HTM debt securities were past due
or on nonaccrual status as of June 30, 2022 and December 31, 2021. There was no accrued interest reversed against interest income for
the three and six months ended June 30, 2022 or the year ended December 31, 2021 as all securities remained on accrual status. In addition, there were no
collateral-dependent HTM debt securities as of June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, 69% and 56%, respectively, of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities
carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of
June 30, 2022 and December 31, 2021. The remaining HTM debt securities at June 30, 2022 and December 31, 2021 were comprised of state and municipal obligations with bond ratings of A to AAA. Utilizing the Current Expected Credit Losses (“CECL”)
approach, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of June 30, 2022 and December 31, 2021. AIR on HTM debt securities totaled $3.2 million at June 30, 2022 and $2.7
million at December 31, 2021 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.
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Allowance for Credit Losses and Credit Quality of Loans |
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Allowance for Credit Losses and Credit Quality of Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses and Credit Quality of Loans |
The allowance for credit losses totaled $93.6 million at
June 30, 2022, compared to $92.0 million at December 31, 2021. The allowance for credit losses as a percentage of loans was 1.20% at June 30, 2022, compared to 1.23% at
December 31, 2021.
The allowance for credit losses calculation incorporated a 6-quarter forecast period to account for forecast economic conditions under each scenario utilized in the
measurement. For periods beyond the 6-quarter forecast, the model reverts to long-term economic conditions over a 4-quarter reversion period on a straight-line basis. The Company considers a baseline, upside, and downside economic forecast in measuring
the allowance.
The quantitative
model as of June 30, 2022 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model, particularly significant unknowns
relating to downside risks as of the measurement date. The baseline outlook reflected an unemployment rate environment initially at pre-coronavirus (“COVID-19”) pandemic levels of 3.8% but falling below pre-COVID-19 pandemic levels by the end of
the forecast period to a low of 3.4%. Northeast GDP’s annualized growth (on a quarterly basis) is expected to start the third quarter of 2022 at about 9.5% and hover around 5% by the end of the forecast period. Other utilized economic variables
worsened overall during the quarter, with outlooks for annualized growth in retail sales and business output declining from the prior quarter along with housing starts. Key assumptions in the baseline economic outlook included the containment of
the European conflict to only Russia and Ukraine, further interest rate hikes by the Federal Reserve, and achievement of full employment by the end of 2022. The alternative downside scenario assumed deteriorated economic and pandemic related
conditions from the baseline outlook. Under this scenario, northeast unemployment rises from 4.2% in the second quarter of 2022 to a peak of 7.0% in the third quarter of 2023. The alternative upside scenario incorporated a more optimistic outlook
than the baseline scenario, with an imminent return to full employment, with northeast unemployment declining to 2.9% by the end of the forecast period. These scenarios and their respective weightings are evaluated at each measurement date and
reflect management’s expectations as of June 30, 2022. At June 30, 2022, the weightings were 50%, 0%, and 50% for the baseline, upside, and downside economic forecasts, respectively. Additionally, qualitative adjustments were made for isolated
model limitations related to modeled outputs given abnormally high retail sales and business output growth rates in prior quarters. These factors were considered through separate quantitative processes and incorporated into the estimate of
current expected credit losses at June 30, 2022.
The quantitative
model as of March 31, 2022 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model, particularly significant
unknowns relating to downside risks as of the measurement date. The baseline outlook reflected an unemployment rate environment initially above pre-COVID-19 levels at 4.3% but falling below pre-coronavirus pandemic levels by the fourth quarter of
the forecast period and to a low of 3.4%. Northeast GDP’s annualized growth (on a quarterly basis) was expected to start the second quarter of 2022 at approximately 9% and hover around 5.5% by the middle and end of the forecast period. Other
utilized economic variables either improved or remained relatively flat, with retail sales and business output remaining steady from the prior quarter and housing starts increasing from the prior quarter’s forecast. Key assumptions in the
baseline economic outlook included continued abatement of COVID-19, the containment of the European conflict to only Russia and Ukraine, further increase of interest rates by the Federal Reserve, and achievement of full employment by the end of
2022. The alternative downside scenario assumed deteriorated economic and pandemic related conditions from the baseline outlook. Under this scenario, northeast unemployment rises from 4.8% in the first quarter of 2022 to a peak of 7.15% in the
second quarter of 2023. The alternative upside scenario incorporated a more optimistic outlook than the baseline scenario, with an imminent return to full employment with northeast unemployment declining to 2.99% by the end of the forecast
period. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of March 31, 2022. At March 31, 2022, the weightings were 60%, 0% and 40% for the baseline, upside and
downside economic forecasts, respectively. The Company also continued to monitor the level of criticized and classified loans in the first quarter of 2022 compared to the level contemplated by the model during similar, historical economic
conditions, and determined that an adjustment was no longer required.
The quantitative model as
of December 31, 2021 incorporated a baseline economic outlook along with alternative upside and downside scenarios sourced from a reputable third-party to accommodate other potential economic conditions in the model. The baseline outlook reflected an
unemployment rate environment initially above pre-COVID-19 levels at 4.8% but falling below pre-COVID-19 levels by the end of the forecast period to 3.5%. Northeast GDP’s annualized growth (on a quarterly basis) was expected to start the first
quarter of 2022 at approximately 9% and hover around 5% by the middle and end of the forecast period. The alternative downside scenario assumed deteriorated economic and pandemic related conditions from the baseline outlook. Under this scenario,
northeast unemployment rose from 5.7% in the fourth quarter of 2021 to a peak of 8% in the first quarter of 2023, remaining around or above 7% for the entire forecast period. The alternative upside scenario incorporated a more optimistic outlook than
the baseline scenario, with a swift return to full employment by the second quarter of 2022 and with northeast unemployment moving down to 3.1% by the end of the forecast period. These scenarios and their respective weightings are evaluated at each
measurement date and reflect management’s expectations as of December 31, 2021. At December 31, 2021, the weightings were 60%, 10% and 30% for the baseline, upside and downside economic forecasts, respectively. Additional adjustments were made for
COVID-19 related factors not incorporated in the forecasts, such as the mitigating impact of unprecedented stimulus in the second and third quarters of 2020, including direct payments to individuals, increased unemployment benefits, the Company’s
loan deferral and modification initiatives and various government sponsored loan programs. The Company also continued to monitor the level of criticized and classified loans in the fourth quarter of 2021 compared to the level contemplated by the
model during similar, historical economic conditions, and an adjustment was made to estimate potential additional losses above modeled losses. Additionally, qualitative adjustments were made for Moody’s baseline economic forecast to include impacts
of the Build Back Better Act not passing by December 31, 2021 and to address potential economic deterioration due to Omicron, as well as isolated model limitations related to modeled outputs given abnormally high retail sales and business output
growth rates in historical periods. These factors were considered through separate quantitative processes and incorporated into the estimate of current expected credit losses at December 31, 2021.
There were no loans purchased with credit deterioration during the six months ended June 30, 2022 or the year ended December 31, 2021. During
2022, the Company purchased $8.0 million of residential loans at a slight discount and $50.1 million in consumer loans at par. The allowance for credit losses recorded for these loans on the purchase date was $3.2 million. During 2021, the Company purchased $58.9 million of residential loans at a 2%-5% premium and $92.5 million in consumer loans at par. The allowance for credit losses recorded for these loans on the purchase date was $6.8 million. The Company made a policy election to report AIR in the other assets line item on the balance sheet. AIR on loans totaled $19.6 million at June 30, 2022 and $19.5 million at December 31, 2021 and there was no estimated allowance for credit losses related to AIR as of June 30, 2022 and December 31, 2021.
The following tables present the activity in the allowance for credit losses by portfolio segment:
The increase in the allowance for credit
losses from December 31, 2021 and March 31, 2022 to June 30, 2022 was due to an increase in loan balances, an additional specific reserve established during the second quarter and a modest deterioration in the economic forecast. The decrease in the allowance for credit losses
from December 31, 2020 and March 31, 2021 to June 30, 2021 was primarily due to an improvement in the economic forecast.
Individually Evaluated Loans
As of June 30, 2022, there were five relationships
identified to be evaluated for loss on an individual basis which, in aggregate, had an amortized cost basis of $9.3 million, with an
allowance for credit loss of $0.8 million, which was deemed collateral dependent, and therefore determined by an estimate of the fair value
of the collateral which consisted of business assets (accounts receivable, inventory, machinery and equipment). As of December 31, 2021, these same five
relationships were identified to be evaluated for loss on an individual basis with an aggregate amortized cost basis of $10.2 million and no allowance for credit loss.
The following table sets forth information with regard to past due and nonperforming loans by loan segment:
As of June 30, 2022 and December 31, 2021, there were no
loans in non-accrual without an allowance for credit losses.
Credit Quality Indicators
The Company has developed an internal loan grading system to evaluate and quantify the Company’s loan portfolio with respect to quality and risk. The system focuses on,
among other things, financial strength of borrowers, experience and depth of borrower’s management, primary and secondary sources of repayment, payment history, nature of the business and outlook on particular industries. The internal grading system
enables the Company to monitor the quality of the entire loan portfolio on a consistent basis and provide management with an early warning system, which facilitates recognition and response to problem loans and potential problem loans.
Commercial Grading System
For Commercial and Industrial (“C&I”), Paycheck Protection Program (“PPP”) and Commercial Real Estate (“CRE”) loans, the Company uses a grading system that relies on
quantifiable and measurable characteristics when available. This includes comparison of financial strength to available industry averages, comparison of transaction factors (loan terms and conditions) to loan policy and comparison of credit history to
stated repayment terms and industry averages. Some grading factors are necessarily more subjective such as economic and industry factors, regulatory environment and management. C&I and CRE loans are graded Doubtful, Substandard, Special Mention and
Pass.
Doubtful
A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its
classification as a loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital
injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information.
Nonaccrual treatment is required for Doubtful assets because of the high probability of loss.
Substandard
Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision by bank
management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity and/or marginal capitalization. Repayment may depend on collateral or other credit risk
mitigants. For some Substandard loans, the likelihood of full collection of interest and principal may be in doubt and those loans should be placed on nonaccrual. Although Substandard assets, in the aggregate, will have a distinct potential for loss,
an individual asset’s loss potential does not have to be distinct for the asset to be rated Substandard.
Special Mention
Special Mention loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position
at some future date. These loans pose elevated risk, but their weakness does not yet justify a Substandard classification. Borrowers may be experiencing adverse operating trends (e.g., declining revenues or margins) or may be struggling with an
ill-proportioned balance sheet (e.g., increasing inventory without an increase in sales, high leverage, and/or tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a
Special Mention rating. Although a Special Mention loan has a higher probability of default than a Pass asset, its default is not imminent.
Pass
Loans graded as Pass encompass all loans not graded as Doubtful, Substandard or Special Mention. Pass loans are in compliance with loan covenants and
payments are generally made as agreed. Pass loans range from superior quality to fair quality. Pass loans also include any portion of a government guaranteed loan, including PPP loans.
Consumer and Residential Grading System
Consumer and Residential loans are graded as either Nonperforming or Performing.
Nonperforming
Nonperforming loans are loans that are (1) over 90
days past due and interest is still accruing or (2) on nonaccrual status.
Performing
All loans not meeting any of the above criteria are considered Performing.
The following tables illustrate the Company’s credit quality by loan class by year of origination (vintage):
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures
The allowance for losses on unfunded commitments totaled $5.1
million as of June 30, 2022 and December 31, 2021.
Troubled Debt Restructuring
When the Company modifies a loan in a TDR, such modifications generally include one or a combination of the following: an extension of the maturity date at a stated rate
of interest lower than the current market rate for new debt with similar risk; a temporary reduction in the interest rate; or a change in scheduled payment amount. Residential and Consumer TDRs occurring during 2022 and 2021 were due to reductions in
the interest rate and/or extensions of the term.
An allowance for impaired commercial and consumer loans that have been modified in a TDR is measured based on the present value of the expected future cash flows,
discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of
the collateral, less selling costs. If management determines that the value of the modified loan is less than the recorded investment in the loan, an impairment charge would be recorded.
TheCompany began offering loan modifications to assist borrowers
during the COVID-19 national emergency. The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), along with a joint agency statement issued by banking regulatory agencies, provides that modifications made in response to COVID-19 do not
need to be accounted for as a TDR. The Company evaluated the modification programs provided to its borrowers and concluded the modifications were generally made in accordance with the CARES Act guidance to borrowers who were in good standing prior to
the COVID-19 pandemic and are not required to be designated as TDRs.
The following tables illustrate the recorded investment and number of modifications designated as TDRs, including the recorded investment in the loans prior to a
modification and the recorded investment in the loans after restructuring:
The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:
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Defined Benefit Post-Retirement Plans |
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Defined Benefit Post-Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Post-Retirement Plans |
The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”) covering substantially all of its employees at June 30, 2022. Benefits paid from
the Plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974
standards. Assets of the Plan are invested in publicly traded stocks and mutual funds. In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. The Company also assumed
supplemental retirement plans for former executives of Alliance Financial Corporation (“Alliance”) when the Company acquired Alliance. These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension
Benefits”.
In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees
that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. In addition, the Company assumed post-retirement medical life insurance benefits for certain Alliance employees, retirees and
their spouses, if applicable, in the Alliance acquisition. These post-retirement benefits are referred to herein as “Other Benefits”.
The Company made no voluntary contributions to the
pension and other benefits plans during the three and six months ended June 30, 2022 and 2021.
The components of expense for Pension Benefits and Other Benefits are set forth below:
The service cost component of the net periodic (benefit) cost is included in Salaries and Employee Benefits and the interest cost, expected return on plan assets and net
amortization components are included in Other Noninterest Expense on the unaudited interim consolidated statements of income.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares
outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared
in the earnings of the entity (such as the Company’s dilutive stock options and restricted stock units).
The following is a reconciliation of basic and diluted EPS for the periods presented in the unaudited interim consolidated statements of income:
There was a nominal number of weighted average stock options outstanding for the three and six months ended June 30, 2022 and June 30, 2021, that were not considered in
the calculation of diluted EPS since the stock options’ exercise prices were greater than the average market price during these periods.
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Reclassification Adjustments Out of Other Comprehensive Income (Loss) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Reclassification Adjustments Out of Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Adjustments Out of Other Comprehensive Income (Loss) |
The following table summarizes the reclassification adjustments out of AOCI:
|
Derivative Instruments and Hedging Activities |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities |
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide
variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate risk, primarily by managing the amount, sources and duration of its assets and liabilities and
through the use of derivative instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash
amounts, the value of which are determined by interest rates. Generally, the Company may use derivative financial instruments to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or
expected cash payments. Currently, the Company has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The
Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.
Derivatives Not Designated as Hedging Instruments
The Company enters into interest rate swaps to facilitate customer transactions and meet their financing needs. These swaps are considered derivatives, but are not
designated as hedging relationships. These instruments have interest rate and credit risk associated with them. To mitigate the interest rate risk, the Company enters into offsetting interest rate swaps with counterparties. The counterparty swaps
are also considered derivatives and are also not designated in hedging relationships. Interest rate swaps are recorded within other assets or other liabilities on the consolidated balance sheet at their estimated fair value. Changes to the fair
value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statement of income.
The Company is subject to over-the-counter derivative clearing requirements, which require certain derivatives to be cleared through central clearing houses.
Accordingly, the Company began to clear certain derivative transactions through the Chicago Mercantile Exchange Clearing House (“CME”) in January 2021. The CME requires the Company to post initial and variation margin payments to mitigate the
risk of non-payment, the latter of which is received or paid daily based on the net asset or liability position of the contracts. A daily settlement occurs through the CME for changes in the fair value of centrally cleared derivatives. Not all of
the derivatives are required to be cleared through the daily clearing agent. As a result, the total fair values of loan level derivative assets and liabilities recognized on the Company’s financial statements are not equal and offsetting.
As of June 30, 2022 and December 31, 2021, the Company had sixteen and eighteen risk participation agreements, respectively, with financial institution counterparties for interest rate swaps related to participated loans. Risk participation agreements provide credit protection to the
financial institution that originated the swap transaction should the borrower fail to perform on its obligation. The Company enters into both risk participation agreements in which it purchases credit protection from other financial institutions
and those in which it provides credit protection to other financial institutions.
Derivatives Designated as Hedging Instruments
The Company has previously entered into interest rate swaps to modify the interest rate
characteristics of certain short-term Federal Home Loan Bank (“FHLB”) advances from variable rate to fixed rate in order to reduce the impact of changes in future cash flows due to market interest rate changes. These agreements are designated as
cash flow hedges with currently none outstanding.
The following table summarizes the derivatives outstanding:
For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss
on the derivative is recorded in AOCI and subsequently reclassified into interest expense in the same period during which the hedge transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest
expense as interest payments are made on the Company’s short-term rate borrowings. During the three months ended March 31, 2021 the Company’s final cash flow hedge of interest rate risk matured and the remaining balance was reclassified from AOCI
as a reduction to interest expense. There is no additional amount
that will be reclassified from AOCI as a reduction to interest expense.
The following table indicates
the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income:
The following table indicates the gain or loss recognized in income on
derivatives not designated as a hedging relationship:
|
Fair Value Measurements and Fair Value of Financial Instruments |
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Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Fair Value of Financial Instruments |
GAAP states that fair value is an exit price, representing the amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3
measurements). The three levels of the fair value hierarchy are described below:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs that are observable, either directly
or indirectly, for substantially the full term of the asset or liability; and
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (e.g., supported by little or no
market activity).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, many other sovereign government
obligations, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not adjust the quoted prices for such
instruments.
The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations or quote from alternative pricing sources with
reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid agency securities, less liquid listed equities, state, municipal and provincial obligations and certain
physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy. Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices). Other investment securities are
reported at fair value utilizing Level 1 and Level 2 inputs. The prices for Level 2 instruments are obtained through an independent pricing service or dealer market participants with whom the Company has historically transacted both purchases and
sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the
U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the methodologies used by its third-party
providers in pricing the securities.
Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions.
Valuations are adjusted to reflect illiquidity and/or non-transferability and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate will be used. Management’s best estimate
consists of both internal and external support on certain Level 3 investments. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or
pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets and changes in
financial ratios or cash flows.
The following tables set forth the Company’s financial assets and liabilities measured on a recurring basis that were accounted for at fair value. Assets and liabilities
are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
GAAP requires disclosure of assets and liabilities measured and recorded at fair value on a non-recurring basis such as goodwill, loans held for sale, other
real estate owned, collateral-dependent impaired loans and HTM securities. The non-recurring fair value measurements recorded during the three and six month periods ended June 30, 2022 and the year ended December 31, 2021 were related to impaired
loans, write-downs of other real estate owned and write-down of branch assets to fair value. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated
collateral dependent loans. The appraisals may be adjusted by management for qualitative factors such
as economic conditions and estimated liquidation expenses ranging from 10% to 50%. Based on the valuation
techniques used, the fair value measurements for collateral dependent individually evaluated loans are classified as Level 3.
As of June 30, 2022,
the Company had collateral dependent individually evaluated loans with a carrying value of $9.3 million, which had an estimated allowance
for credit loss of $0.8 million. As of December 31, 2021, the Company had collateral dependent individually evaluated loans with a
carrying value of $10.2 million, which had no
estimated allowance for credit loss.
The following table sets forth information with regard to estimated fair values of financial instruments. This table excludes financial instruments for which the carrying
amount approximates fair value. Financial instruments for which the fair value approximates carrying value include cash and cash equivalents, AFS securities, equity securities, accrued interest receivable, non-maturity deposits, short-term borrowings,
accrued interest payable and derivatives.
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not
reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair
value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties
and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the
value of assets and liabilities that are not considered financial instruments. For example, the Company has a substantial wealth operation that contributes net fee income annually. The wealth management operation is not considered a financial
instrument and its value has not been incorporated into the fair value estimates. Other significant assets and liabilities include the benefits resulting from the low-cost funding of deposit liabilities as compared to the cost of borrowing funds in the
market and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimate of fair value.
HTM Securities
The fair value of the Company’s HTM securities is primarily measured using information from a third-party pricing service. The fair value measurements consider observable
data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.
Net Loans
Net loans include portfolio loans and loans held for sale. Loans were first segregated by type and then further segmented into fixed and variable rate and loan quality
categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments, which also includes credit risk, illiquidity risk and other market factors to calculate the exit price fair value in accordance
with ASC 820.
Time Deposits
The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The
fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.
Long-Term Debt
The fair value of long-term debt was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments.
Subordinated Debt
The fair value of subordinated debt has been measured using the observable market price as of the period reported.
Junior Subordinated Debt
The fair value of junior subordinated debt has been estimated using a discounted cash flow analysis.
|
Commitments and Contingencies |
6 Months Ended | ||
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Jun. 30, 2022 | |||
Commitments and Contingencies [Abstract] | |||
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. These
financial instruments include commitments to extend credit, unused lines of credit, standby letters of credit and certain agricultural real estate loans sold to investors with recourse, with the sold portion having a government guarantee that is
assignable back to the Company upon repurchase of the loan in the event of default. The Company’s exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit, unused lines of credit, standby letters
of credit and loans sold with recourse is represented by the contractual amount of those investments. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved
with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s credit worthiness. Commitments to extend credit and unused lines of credit totaled $2.4 billion at June 30, 2022 and $2.3 billion at December 31, 2021.
Since many loan commitments, standby letters of credit and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts
are not necessarily indicative of future cash flows. The Company does not issue any guarantees that would require liability-recognition or disclosure, other than its standby letters of credit.
The Company guarantees the obligations or performance of customers by issuing standby letters of credit to third-parties. These standby letters of credit are generally issued in support of third-party debt, such as corporate debt issuances, industrial revenue bonds and municipal securities. The risk involved in issuing standby letters
of credit is essentially the same as the credit risk involved in extending loan facilities to customers and letters of credit are subject to the same credit origination, portfolio maintenance and management procedures in effect to monitor other
credit and off-balance sheet products. Typically, these instruments have one year expirations with an option to renew upon annual review;
therefore, the total amounts do not necessarily represent future cash requirements. Standby letters of credit totaled $56.2 million at June 30, 2022 and $55.1 million at December 31, 2021. As of June 30, 2022 and December 31, 2021, the fair value of the Company’s standby letters of credit was not significant.
|
Description of Business (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Description of Business [Abstract] | |
Nature of Operations |
NBT Bancorp Inc. (the “Company”) is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in
Norwich, New York. The principal assets of the Company consist of all of the outstanding shares of common stock of its subsidiaries, including: NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings,
Inc. (“NBT Holdings”), CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The Company’s principal sources of revenue are the
management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings.
The Company’s business, primarily conducted through the Bank, consists of providing commercial banking, retail banking and wealth management services primarily to
customers in its market area, which includes central and upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine and central Connecticut. The Company has been, and intends to continue to be,
a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, providing a broad array of banking and financial services to retail,
commercial and municipal customers.
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation |
Basis of Presentation
The accompanying
unaudited interim consolidated financial statements include the accounts of NBT Bancorp Inc. and its wholly-owned subsidiaries: the Bank, NBT Financial and NBT Holdings. Collectively, NBT Bancorp Inc. and its subsidiaries are referred to herein as
(the “Company”). In the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in accordance with generally accepted
accounting principles in the United States of America (“GAAP”) and in accordance with the instructions to Quarterly Report on Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly,
the consolidated financial statements do not include all of the information and notes necessary for complete financial statements in conformity with GAAP. These unaudited interim consolidated financial statements should be read in conjunction with
the audited consolidated financial statements and notes thereto included in the Company’s 2021 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the
full year or any other interim period. All material intercompany transactions have been eliminated in consolidation. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period
presentation. The Company combined ATM and debit card fees with card related income previously reported in Other noninterest income which is now disclosed as Card services income. The Company reclassified Data processing and communications expense
into Technology and data services expense. The Company reclassified Equipment expense into Occupancy expense and Technology and data services expense. The Company has evaluated subsequent events for potential recognition and/or disclosure and there
were none identified.
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Use of Estimates in the Preparation of Financial Statements |
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial
statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.
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Recent Accounting Pronouncements (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Recent Accounting Pronouncements [Abstract] | |
Accounting Standards Issued Not Yet Adopted |
Accounting Standards Issued Not Yet Adopted
In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updates
(“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. On January 7, 2021, the FASB issued ASU 2021-01, which refines the scope of Accounting Standards Codification 848 (“ASC 848”) and clarifies some of its guidance. ASU 2020-04 and related
amendments provide temporary optional expedients and exceptions to the existing guidance for applying GAAP to affected contract modifications and hedge accounting relationships in the transition away from the London Interbank Offered Rate
(“LIBOR”) or other interbank offered rate on financial reporting. The guidance also allows a one-time election to sell and/or reclassify to available for sale (“AFS”) or trading held to maturity (“HTM”) debt securities that reference an interest
rate affected by reference rate reform. The amendments in this ASU are effective March 12, 2020 through December 31, 2022 and permit relief solely for reference rate reform actions and permit different elections over the effective date for legacy
and new activity. The Company does not expect that the impact of adopting the new guidance on the consolidated financial
statements will have a material impact on the consolidated financial statements.
In March 2022, the FASB issued ASU 2022-02, Financial Instruments - CECL Losses (Topic 326): Troubled
Debt Restructurings and Vintage Disclosures. The ASU eliminates the guidance on
Troubled Debt Restructurings (“TDRs”) and requires an evaluation on all loan modifications to determine if they result in a new loan or a continuation of the existing loan. The ASU also requires that entities disclose current-period gross
charge-offs by year of origination. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a
cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. The amendments in this ASU are effective for the Company on January 1, 2023, with early adoption permitted. The Company is evaluating the impact of adopting the new guidance on the consolidated financial statements and does not expect it will have a material impact on the
consolidated financial statements.
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Securities (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Securities [Abstract] | |
Investment, Policy |
The Company does not believe the AFS securities that were in an unrealized loss position as of June 30, 2022 and December 31, 2021, which consisted of 373 and 149 individual securities,
respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of June 30, 2022 and December 31, 2021, the majority of the AFS
securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized
as “risk free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the
investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude
accrued interest receivable (“AIR”) from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $4.1 million at
June 30, 2022 and $3.9 million at December 31, 2021 and is excluded from the estimate of credit losses and reported in the financial
statement line for other assets.
None of the Bank’s HTM debt securities were past due
or on nonaccrual status as of June 30, 2022 and December 31, 2021. There was no accrued interest reversed against interest income for
the three and six months ended June 30, 2022 or the year ended December 31, 2021 as all securities remained on accrual status. In addition, there were no
collateral-dependent HTM debt securities as of June 30, 2022 and December 31, 2021. As of June 30, 2022 and December 31, 2021, 69% and 56%, respectively, of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities
carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of
June 30, 2022 and December 31, 2021. The remaining HTM debt securities at June 30, 2022 and December 31, 2021 were comprised of state and municipal obligations with bond ratings of A to AAA. Utilizing the Current Expected Credit Losses (“CECL”)
approach, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of June 30, 2022 and December 31, 2021. AIR on HTM debt securities totaled $3.2 million at June 30, 2022 and $2.7
million at December 31, 2021 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.
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Allowance for Credit Losses and Credit Quality of Loans (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Allowance for Credit Losses and Credit Quality of Loans [Abstract] | |
Allowance for Credit Losses |
The allowance for credit losses calculation incorporated a 6-quarter forecast period to account for forecast economic conditions under each scenario utilized in the
measurement. For periods beyond the 6-quarter forecast, the model reverts to long-term economic conditions over a 4-quarter reversion period on a straight-line basis. The Company considers a baseline, upside, and downside economic forecast in measuring
the allowance.
The quantitative
model as of June 30, 2022 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model, particularly significant unknowns
relating to downside risks as of the measurement date. The baseline outlook reflected an unemployment rate environment initially at pre-coronavirus (“COVID-19”) pandemic levels of 3.8% but falling below pre-COVID-19 pandemic levels by the end of
the forecast period to a low of 3.4%. Northeast GDP’s annualized growth (on a quarterly basis) is expected to start the third quarter of 2022 at about 9.5% and hover around 5% by the end of the forecast period. Other utilized economic variables
worsened overall during the quarter, with outlooks for annualized growth in retail sales and business output declining from the prior quarter along with housing starts. Key assumptions in the baseline economic outlook included the containment of
the European conflict to only Russia and Ukraine, further interest rate hikes by the Federal Reserve, and achievement of full employment by the end of 2022. The alternative downside scenario assumed deteriorated economic and pandemic related
conditions from the baseline outlook. Under this scenario, northeast unemployment rises from 4.2% in the second quarter of 2022 to a peak of 7.0% in the third quarter of 2023. The alternative upside scenario incorporated a more optimistic outlook
than the baseline scenario, with an imminent return to full employment, with northeast unemployment declining to 2.9% by the end of the forecast period. These scenarios and their respective weightings are evaluated at each measurement date and
reflect management’s expectations as of June 30, 2022. At June 30, 2022, the weightings were 50%, 0%, and 50% for the baseline, upside, and downside economic forecasts, respectively. Additionally, qualitative adjustments were made for isolated
model limitations related to modeled outputs given abnormally high retail sales and business output growth rates in prior quarters. These factors were considered through separate quantitative processes and incorporated into the estimate of
current expected credit losses at June 30, 2022.
The quantitative
model as of March 31, 2022 incorporated a baseline economic outlook along with an alternative downside scenario sourced from a reputable third-party to accommodate other potential economic conditions in the model, particularly significant
unknowns relating to downside risks as of the measurement date. The baseline outlook reflected an unemployment rate environment initially above pre-COVID-19 levels at 4.3% but falling below pre-coronavirus pandemic levels by the fourth quarter of
the forecast period and to a low of 3.4%. Northeast GDP’s annualized growth (on a quarterly basis) was expected to start the second quarter of 2022 at approximately 9% and hover around 5.5% by the middle and end of the forecast period. Other
utilized economic variables either improved or remained relatively flat, with retail sales and business output remaining steady from the prior quarter and housing starts increasing from the prior quarter’s forecast. Key assumptions in the
baseline economic outlook included continued abatement of COVID-19, the containment of the European conflict to only Russia and Ukraine, further increase of interest rates by the Federal Reserve, and achievement of full employment by the end of
2022. The alternative downside scenario assumed deteriorated economic and pandemic related conditions from the baseline outlook. Under this scenario, northeast unemployment rises from 4.8% in the first quarter of 2022 to a peak of 7.15% in the
second quarter of 2023. The alternative upside scenario incorporated a more optimistic outlook than the baseline scenario, with an imminent return to full employment with northeast unemployment declining to 2.99% by the end of the forecast
period. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of March 31, 2022. At March 31, 2022, the weightings were 60%, 0% and 40% for the baseline, upside and
downside economic forecasts, respectively. The Company also continued to monitor the level of criticized and classified loans in the first quarter of 2022 compared to the level contemplated by the model during similar, historical economic
conditions, and determined that an adjustment was no longer required.
The quantitative model as
of December 31, 2021 incorporated a baseline economic outlook along with alternative upside and downside scenarios sourced from a reputable third-party to accommodate other potential economic conditions in the model. The baseline outlook reflected an
unemployment rate environment initially above pre-COVID-19 levels at 4.8% but falling below pre-COVID-19 levels by the end of the forecast period to 3.5%. Northeast GDP’s annualized growth (on a quarterly basis) was expected to start the first
quarter of 2022 at approximately 9% and hover around 5% by the middle and end of the forecast period. The alternative downside scenario assumed deteriorated economic and pandemic related conditions from the baseline outlook. Under this scenario,
northeast unemployment rose from 5.7% in the fourth quarter of 2021 to a peak of 8% in the first quarter of 2023, remaining around or above 7% for the entire forecast period. The alternative upside scenario incorporated a more optimistic outlook than
the baseline scenario, with a swift return to full employment by the second quarter of 2022 and with northeast unemployment moving down to 3.1% by the end of the forecast period. These scenarios and their respective weightings are evaluated at each
measurement date and reflect management’s expectations as of December 31, 2021. At December 31, 2021, the weightings were 60%, 10% and 30% for the baseline, upside and downside economic forecasts, respectively. Additional adjustments were made for
COVID-19 related factors not incorporated in the forecasts, such as the mitigating impact of unprecedented stimulus in the second and third quarters of 2020, including direct payments to individuals, increased unemployment benefits, the Company’s
loan deferral and modification initiatives and various government sponsored loan programs. The Company also continued to monitor the level of criticized and classified loans in the fourth quarter of 2021 compared to the level contemplated by the
model during similar, historical economic conditions, and an adjustment was made to estimate potential additional losses above modeled losses. Additionally, qualitative adjustments were made for Moody’s baseline economic forecast to include impacts
of the Build Back Better Act not passing by December 31, 2021 and to address potential economic deterioration due to Omicron, as well as isolated model limitations related to modeled outputs given abnormally high retail sales and business output
growth rates in historical periods. These factors were considered through separate quantitative processes and incorporated into the estimate of current expected credit losses at December 31, 2021.
There were no loans purchased with credit deterioration during the six months ended June 30, 2022 or the year ended December 31, 2021. During
2022, the Company purchased $8.0 million of residential loans at a slight discount and $50.1 million in consumer loans at par. The allowance for credit losses recorded for these loans on the purchase date was $3.2 million. During 2021, the Company purchased $58.9 million of residential loans at a 2%-5% premium and $92.5 million in consumer loans at par. The allowance for credit losses recorded for these loans on the purchase date was $6.8 million. The Company made a policy election to report AIR in the other assets line item on the balance sheet. AIR on loans totaled $19.6 million at June 30, 2022 and $19.5 million at December 31, 2021 and there was no estimated allowance for credit losses related to AIR as of June 30, 2022 and December 31, 2021.
Individually Evaluated Loans
As of June 30, 2022, there were five relationships
identified to be evaluated for loss on an individual basis which, in aggregate, had an amortized cost basis of $9.3 million, with an
allowance for credit loss of $0.8 million, which was deemed collateral dependent, and therefore determined by an estimate of the fair value
of the collateral which consisted of business assets (accounts receivable, inventory, machinery and equipment). As of December 31, 2021, these same five
relationships were identified to be evaluated for loss on an individual basis with an aggregate amortized cost basis of $10.2 million and no allowance for credit loss.
Credit Quality Indicators
The Company has developed an internal loan grading system to evaluate and quantify the Company’s loan portfolio with respect to quality and risk. The system focuses on,
among other things, financial strength of borrowers, experience and depth of borrower’s management, primary and secondary sources of repayment, payment history, nature of the business and outlook on particular industries. The internal grading system
enables the Company to monitor the quality of the entire loan portfolio on a consistent basis and provide management with an early warning system, which facilitates recognition and response to problem loans and potential problem loans.
Commercial Grading System
For Commercial and Industrial (“C&I”), Paycheck Protection Program (“PPP”) and Commercial Real Estate (“CRE”) loans, the Company uses a grading system that relies on
quantifiable and measurable characteristics when available. This includes comparison of financial strength to available industry averages, comparison of transaction factors (loan terms and conditions) to loan policy and comparison of credit history to
stated repayment terms and industry averages. Some grading factors are necessarily more subjective such as economic and industry factors, regulatory environment and management. C&I and CRE loans are graded Doubtful, Substandard, Special Mention and
Pass.
Doubtful
A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its
classification as a loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital
injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information.
Nonaccrual treatment is required for Doubtful assets because of the high probability of loss.
Substandard
Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision by bank
management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity and/or marginal capitalization. Repayment may depend on collateral or other credit risk
mitigants. For some Substandard loans, the likelihood of full collection of interest and principal may be in doubt and those loans should be placed on nonaccrual. Although Substandard assets, in the aggregate, will have a distinct potential for loss,
an individual asset’s loss potential does not have to be distinct for the asset to be rated Substandard.
Special Mention
Special Mention loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position
at some future date. These loans pose elevated risk, but their weakness does not yet justify a Substandard classification. Borrowers may be experiencing adverse operating trends (e.g., declining revenues or margins) or may be struggling with an
ill-proportioned balance sheet (e.g., increasing inventory without an increase in sales, high leverage, and/or tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a
Special Mention rating. Although a Special Mention loan has a higher probability of default than a Pass asset, its default is not imminent.
Pass
Loans graded as Pass encompass all loans not graded as Doubtful, Substandard or Special Mention. Pass loans are in compliance with loan covenants and
payments are generally made as agreed. Pass loans range from superior quality to fair quality. Pass loans also include any portion of a government guaranteed loan, including PPP loans.
Consumer and Residential Grading System
Consumer and Residential loans are graded as either Nonperforming or Performing.
Nonperforming
Nonperforming loans are loans that are (1) over 90
days past due and interest is still accruing or (2) on nonaccrual status.
Performing
All loans not meeting any of the above criteria are considered Performing.
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures
The allowance for losses on unfunded commitments totaled $5.1
million as of June 30, 2022 and December 31, 2021.
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Troubled Debt Restructuring |
Troubled Debt Restructuring
When the Company modifies a loan in a TDR, such modifications generally include one or a combination of the following: an extension of the maturity date at a stated rate
of interest lower than the current market rate for new debt with similar risk; a temporary reduction in the interest rate; or a change in scheduled payment amount. Residential and Consumer TDRs occurring during 2022 and 2021 were due to reductions in
the interest rate and/or extensions of the term.
An allowance for impaired commercial and consumer loans that have been modified in a TDR is measured based on the present value of the expected future cash flows,
discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of
the collateral, less selling costs. If management determines that the value of the modified loan is less than the recorded investment in the loan, an impairment charge would be recorded.
TheCompany began offering loan modifications to assist borrowers
during the COVID-19 national emergency. The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), along with a joint agency statement issued by banking regulatory agencies, provides that modifications made in response to COVID-19 do not
need to be accounted for as a TDR. The Company evaluated the modification programs provided to its borrowers and concluded the modifications were generally made in accordance with the CARES Act guidance to borrowers who were in good standing prior to
the COVID-19 pandemic and are not required to be designated as TDRs.
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Defined Benefit Post-Retirement Plans (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Defined Benefit Post-Retirement Plans [Abstract] | |
Postemployment Benefit Plans, Policy |
The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”) covering substantially all of its employees at June 30, 2022. Benefits paid from
the Plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974
standards. Assets of the Plan are invested in publicly traded stocks and mutual funds. In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. The Company also assumed
supplemental retirement plans for former executives of Alliance Financial Corporation (“Alliance”) when the Company acquired Alliance. These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension
Benefits”.
In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees
that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. In addition, the Company assumed post-retirement medical life insurance benefits for certain Alliance employees, retirees and
their spouses, if applicable, in the Alliance acquisition. These post-retirement benefits are referred to herein as “Other Benefits”.
The Company made no voluntary contributions to the
pension and other benefits plans during the three and six months ended June 30, 2022 and 2021.
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Earnings Per Share (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share |
Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares
outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared
in the earnings of the entity (such as the Company’s dilutive stock options and restricted stock units).
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Fair Value Measurements and Fair Value of Financial Instruments (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments, Policy |
GAAP states that fair value is an exit price, representing the amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3
measurements). The three levels of the fair value hierarchy are described below:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs that are observable, either directly
or indirectly, for substantially the full term of the asset or liability; and
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (e.g., supported by little or no
market activity).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, many other sovereign government
obligations, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not adjust the quoted prices for such
instruments.
The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations or quote from alternative pricing sources with
reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid agency securities, less liquid listed equities, state, municipal and provincial obligations and certain
physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy. Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices). Other investment securities are
reported at fair value utilizing Level 1 and Level 2 inputs. The prices for Level 2 instruments are obtained through an independent pricing service or dealer market participants with whom the Company has historically transacted both purchases and
sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the
U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the methodologies used by its third-party
providers in pricing the securities.
Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions.
Valuations are adjusted to reflect illiquidity and/or non-transferability and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate will be used. Management’s best estimate
consists of both internal and external support on certain Level 3 investments. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or
pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets and changes in
financial ratios or cash flows.
GAAP requires disclosure of assets and liabilities measured and recorded at fair value on a non-recurring basis such as goodwill, loans held for sale, other
real estate owned, collateral-dependent impaired loans and HTM securities. The non-recurring fair value measurements recorded during the three and six month periods ended June 30, 2022 and the year ended December 31, 2021 were related to impaired
loans, write-downs of other real estate owned and write-down of branch assets to fair value. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated
collateral dependent loans. The appraisals may be adjusted by management for qualitative factors such
as economic conditions and estimated liquidation expenses ranging from 10% to 50%. Based on the valuation
techniques used, the fair value measurements for collateral dependent individually evaluated loans are classified as Level 3.
As of June 30, 2022,
the Company had collateral dependent individually evaluated loans with a carrying value of $9.3 million, which had an estimated allowance
for credit loss of $0.8 million. As of December 31, 2021, the Company had collateral dependent individually evaluated loans with a
carrying value of $10.2 million, which had no
estimated allowance for credit loss.
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not
reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair
value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties
and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the
value of assets and liabilities that are not considered financial instruments. For example, the Company has a substantial wealth operation that contributes net fee income annually. The wealth management operation is not considered a financial
instrument and its value has not been incorporated into the fair value estimates. Other significant assets and liabilities include the benefits resulting from the low-cost funding of deposit liabilities as compared to the cost of borrowing funds in the
market and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimate of fair value.
HTM Securities
The fair value of the Company’s HTM securities is primarily measured using information from a third-party pricing service. The fair value measurements consider observable
data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.
Net Loans
Net loans include portfolio loans and loans held for sale. Loans were first segregated by type and then further segmented into fixed and variable rate and loan quality
categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments, which also includes credit risk, illiquidity risk and other market factors to calculate the exit price fair value in accordance
with ASC 820.
Time Deposits
The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The
fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.
Long-Term Debt
The fair value of long-term debt was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments.
Subordinated Debt
The fair value of subordinated debt has been measured using the observable market price as of the period reported.
Junior Subordinated Debt
The fair value of junior subordinated debt has been estimated using a discounted cash flow analysis.
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Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost, Estimated Fair Value and Unrealized Gains and Losses of AFS Securities |
The amortized cost, estimated fair value and unrealized gains and losses of AFS securities are as follows:
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Amortized Cost, Estimated Fair Value, and Unrealized Gains and Losses of HTM Securities |
The amortized cost, estimated fair value and unrealized gains and losses of HTM securities are as follows:
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Gains and (Losses) on Equity Securities |
The following tables set forth information with regard to gains and (losses) on equity securities:
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Contractual Maturities of Debt Securities |
The following table sets forth information with regard to contractual maturities of debt securities at June 30, 2022:
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Investment Securities with Unrealized Losses |
The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded,
segregated according to the length of time the securities had been in a continuous unrealized loss position:
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Allowance for Credit Losses and Credit Quality of Loans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses and Credit Quality of Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses by Portfolio |
The following tables present the activity in the allowance for credit losses by portfolio segment:
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Past due and Nonperforming Loans by Loan Class |
The following table sets forth information with regard to past due and nonperforming loans by loan segment:
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Credit Quality by Loan Class by Year of Origination (Vintage) |
The following tables illustrate the Company’s credit quality by loan class by year of origination (vintage):
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Troubled Debt Restructurings on Financing Receivables |
The following tables illustrate the recorded investment and number of modifications designated as TDRs, including the recorded investment in the loans prior to a
modification and the recorded investment in the loans after restructuring:
The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:
|
Defined Benefit Post-Retirement Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Post-Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Benefits and Other Benefit Costs |
The components of expense for Pension Benefits and Other Benefits are set forth below:
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share |
The following is a reconciliation of basic and diluted EPS for the periods presented in the unaudited interim consolidated statements of income:
|
Reclassification Adjustments Out of Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Adjustments Out of Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Adjustments out of AOCI |
The following table summarizes the reclassification adjustments out of AOCI:
|
Derivative Instruments and Hedging Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Derivatives Outstanding |
The following table summarizes the derivatives outstanding:
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Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of Derivatives on AOCI and on Consolidated Statement of Income |
The following table indicates
the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income:
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Not Designated as Hedging Instrument [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of Derivatives on AOCI and on Consolidated Statement of Income |
The following table indicates the gain or loss recognized in income on
derivatives not designated as a hedging relationship:
|
Fair Value Measurements and Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis |
The following tables set forth the Company’s financial assets and liabilities measured on a recurring basis that were accounted for at fair value. Assets and liabilities
are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
|
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Information with Regard to Estimated Fair Values of Financial Instruments |
The following table sets forth information with regard to estimated fair values of financial instruments. This table excludes financial instruments for which the carrying
amount approximates fair value. Financial instruments for which the fair value approximates carrying value include cash and cash equivalents, AFS securities, equity securities, accrued interest receivable, non-maturity deposits, short-term borrowings,
accrued interest payable and derivatives.
|
Securities, Gains and (Losses) on Equity Securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Gains (losses) on equity securities [Abstract] | |||||
Net (losses) and gains recognized on equity securities | $ (587) | $ 201 | $ (770) | $ 653 | |
Less: Net (losses) and gains recognized on equity securities sold during the period | 0 | 0 | 0 | 0 | |
Unrealized (losses) and gains recognized on equity securities still held | (587) | 201 | (770) | 653 | |
Equity Securities without Readily Determinable Fair Value, Annual Amount [Abstract] | |||||
Carrying amount of equity securities without readily determinable fair values | 1,000 | 1,000 | $ 1,000 | ||
Impairment adjustments of equity securities without readily determinable fair values | 0 | 0 | 0 | 0 | |
Downward adjustments of equity securities without readily determinable fair values | 0 | 0 | 0 | 0 | |
Upward adjustments of equity securities without readily determinable fair values | $ 0 | $ 0 | $ 0 | $ 0 |
Securities, AFS Debt Securities, Contractual Maturities (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Available-for-sale Securities, Debt Maturities, Amortized Cost [Abstract] | ||
Within one year | $ 994 | |
From one to five years | 200,771 | |
From five to ten years | 756,482 | |
After ten years | 804,444 | |
Amortized cost | 1,762,691 | $ 1,694,806 |
Available-for-sale Securities, Debt Maturities, Estimated Fair Value [Abstract] | ||
Within one year | 996 | |
From one to five years | 189,668 | |
From five to ten years | 689,296 | |
After ten years | 739,396 | |
Fair value | $ 1,619,356 | $ 1,687,361 |
Securities, HTM Debt Securities, Contractual Maturities (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
Issuer
|
Dec. 31, 2021
USD ($)
Issuer
|
---|---|---|
Held-to-maturity Securities, Debt Maturities, Amortized Cost [Abstract] | ||
Within one year | $ 62,615 | |
From one to five years | 68,680 | |
From five to ten years | 291,880 | |
After ten years | 513,337 | |
Amortized cost | 936,512 | $ 733,210 |
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value [Abstract] | ||
Within one year | 62,624 | |
From one to five years | 68,169 | |
From five to ten years | 268,047 | |
After ten years | 465,394 | |
Fair value | $ 864,234 | $ 735,260 |
Number of issuers whose holdings exceeded 10% of consolidated stockholders' equity, excluding U.S. Government securities and Government-sponsored enterprises securities | Issuer | 0 | 0 |
Allowance for Credit Losses and Credit Quality of Loans, Allowance for Credit Losses by Portfolio Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | $ 90,000 | $ 105,000 | $ 92,000 | $ 110,000 |
Charge-offs | (4,046) | (4,009) | (8,537) | (8,669) |
Recoveries | 3,256 | 2,725 | 5,151 | 5,181 |
Provision | 4,390 | (5,216) | 4,986 | (8,012) |
Balance, end of period | 93,600 | 98,500 | 93,600 | 98,500 |
Commercial Loans [Member] | ||||
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 28,557 | 50,045 | 28,941 | 50,942 |
Charge-offs | (447) | (389) | (1,035) | (631) |
Recoveries | 837 | 61 | 930 | 179 |
Provision | 3,411 | (5,526) | 3,522 | (6,299) |
Balance, end of period | 32,358 | 44,191 | 32,358 | 44,191 |
Consumer Loans [Member] | ||||
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 43,591 | 34,580 | 44,253 | 37,803 |
Charge-offs | (3,509) | (3,271) | (7,100) | (7,619) |
Recoveries | 2,117 | 2,288 | 3,769 | 4,363 |
Provision | 2,741 | 1,284 | 4,018 | 334 |
Balance, end of period | 44,940 | 34,881 | 44,940 | 34,881 |
Residential [Member] | ||||
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 17,852 | 20,375 | 18,806 | 21,255 |
Charge-offs | (90) | (349) | (402) | (419) |
Recoveries | 302 | 376 | 452 | 639 |
Provision | (1,762) | (974) | (2,554) | (2,047) |
Balance, end of period | $ 16,302 | $ 19,428 | $ 16,302 | $ 19,428 |
Allowance for Credit Losses and Credit Quality of Loans, Allowance for Credit Losses on Off-Balance Sheet Credit Exposures (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|---|
Allowance for Credit Losses and Credit Quality of Loans [Abstract] | ||||||
Allowance for credit losses | $ 93,600 | $ 90,000 | $ 92,000 | $ 98,500 | $ 105,000 | $ 110,000 |
Unfunded Commitment [Member] | ||||||
Allowance for Credit Losses and Credit Quality of Loans [Abstract] | ||||||
Allowance for credit losses | $ 5,100 | $ 5,100 |
Defined Benefit Post-Retirement Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Defined Benefit Post-Retirement Plans [Abstract] | ||||
Employer contributions | $ 0 | $ 0 | $ 0 | $ 0 |
Pension Benefits [Member] | ||||
Components of net periodic (benefit) cost [Abstract] | ||||
Service cost | 534 | 485 | 1,068 | 970 |
Interest cost | 694 | 677 | 1,388 | 1,354 |
Expected return on plan assets | (2,228) | (2,203) | (4,456) | (4,406) |
Net amortization | 185 | 313 | 370 | 626 |
Net periodic pension (benefit) cost | (815) | (728) | (1,630) | (1,456) |
Other Benefits [Member] | ||||
Components of net periodic (benefit) cost [Abstract] | ||||
Service cost | 2 | 2 | 4 | 4 |
Interest cost | 41 | 45 | 82 | 90 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Net amortization | 1 | 13 | 2 | 26 |
Net periodic pension (benefit) cost | $ 44 | $ 60 | $ 88 | $ 120 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Basic EPS [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 42,845 | 43,474 | 42,992 | 43,517 |
Net income available to common stockholders | $ 37,775 | $ 40,296 | $ 76,901 | $ 80,142 |
Basic EPS (in dollars per share) | $ 0.88 | $ 0.93 | $ 1.79 | $ 1.84 |
Diluted EPS [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 42,845 | 43,474 | 42,992 | 43,517 |
Dilutive effect of common stock options and restricted stock (in shares) | 248 | 319 | 246 | 323 |
Weighted average common shares and common share equivalents (in shares) | 43,093 | 43,793 | 43,238 | 43,840 |
Net income available to common stockholders | $ 37,775 | $ 40,296 | $ 76,901 | $ 80,142 |
Diluted EPS (in dollars per share) | $ 0.88 | $ 0.92 | $ 1.78 | $ 1.83 |
Fair Value Measurements and Fair Value of Financial Instruments, Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
AFS securities [Abstract] | ||
AFS securities | $ 1,619,356 | $ 1,687,361 |
Equity securities | 29,974 | 33,550 |
Fair Value Measurements [Abstract] | ||
Collateral dependent impaired loans with specific reserve | 9,300 | 10,200 |
Reserves on collateral dependent impaired loans | $ 800 | 0 |
Minimum [Member] | ||
Fair Value Measurements [Abstract] | ||
Liquidation expense ratio on impaired collateral | 10.00% | |
Maximum [Member] | ||
Fair Value Measurements [Abstract] | ||
Liquidation expense ratio on impaired collateral | 50.00% | |
U.S. Treasury [Member] | ||
AFS securities [Abstract] | ||
AFS securities | $ 115,177 | 73,069 |
Federal Agency [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 217,432 | 239,931 |
State & Municipal [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 87,959 | 94,088 |
Corporate [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 53,180 | 52,003 |
Recurring Basis [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 1,619,356 | 1,687,361 |
Equity securities | 29,974 | 33,550 |
Derivatives | 75,675 | 60,625 |
Total | 1,725,005 | 1,781,536 |
Liabilities [Abstract] | ||
Derivatives | 75,193 | 60,263 |
Total | 75,193 | 60,263 |
Recurring Basis [Member] | Level 1 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 115,177 | 73,069 |
Equity securities | 28,974 | 32,550 |
Derivatives | 0 | 0 |
Total | 144,151 | 105,619 |
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total | 0 | 0 |
Recurring Basis [Member] | Level 2 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 1,504,179 | 1,614,292 |
Equity securities | 1,000 | 1,000 |
Derivatives | 75,675 | 60,625 |
Total | 1,580,854 | 1,675,917 |
Liabilities [Abstract] | ||
Derivatives | 75,193 | 60,263 |
Total | 75,193 | 60,263 |
Recurring Basis [Member] | Level 3 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Equity securities | 0 | 0 |
Derivatives | 0 | 0 |
Total | 0 | 0 |
Liabilities [Abstract] | ||
Derivatives | 0 | 0 |
Total | 0 | 0 |
Recurring Basis [Member] | U.S. Treasury [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 115,177 | 73,069 |
Recurring Basis [Member] | U.S. Treasury [Member] | Level 1 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 115,177 | 73,069 |
Recurring Basis [Member] | U.S. Treasury [Member] | Level 2 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | U.S. Treasury [Member] | Level 3 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | Federal Agency [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 217,432 | 239,931 |
Recurring Basis [Member] | Federal Agency [Member] | Level 1 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | Federal Agency [Member] | Level 2 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 217,432 | 239,931 |
Recurring Basis [Member] | Federal Agency [Member] | Level 3 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | State & Municipal [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 87,959 | 94,088 |
Recurring Basis [Member] | State & Municipal [Member] | Level 1 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | State & Municipal [Member] | Level 2 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 87,959 | 94,088 |
Recurring Basis [Member] | State & Municipal [Member] | Level 3 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | Mortgage-Backed [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 522,045 | 606,675 |
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 1 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 2 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 522,045 | 606,675 |
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 3 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 623,563 | 621,595 |
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 1 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 2 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 623,563 | 621,595 |
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 3 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | Corporate [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 53,180 | 52,003 |
Recurring Basis [Member] | Corporate [Member] | Level 1 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 0 | 0 |
Recurring Basis [Member] | Corporate [Member] | Level 2 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | 53,180 | 52,003 |
Recurring Basis [Member] | Corporate [Member] | Level 3 [Member] | ||
AFS securities [Abstract] | ||
AFS securities | $ 0 | $ 0 |
Fair Value Measurements and Fair Value of Financial Instruments, Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Financial assets [Abstract] | ||
HTM securities | $ 864,234 | $ 735,260 |
Carrying Amount [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Subordinated debt | 100,000 | 100,000 |
Carrying Amount [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
HTM securities | 936,512 | 733,210 |
Financial liabilities [Abstract] | ||
Time deposits | 465,764 | 501,472 |
Long-term debt | 3,347 | 13,995 |
Junior subordinated debt | 101,196 | 101,196 |
Carrying Amount [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Net loans | 7,684,209 | 7,407,289 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Subordinated debt | 98,793 | 107,402 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
HTM securities | 864,234 | 735,260 |
Financial liabilities [Abstract] | ||
Time deposits | 453,540 | 500,717 |
Long-term debt | 3,264 | 14,260 |
Junior subordinated debt | 96,175 | 107,569 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Net loans | $ 7,580,692 | $ 7,530,768 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Guarantor Obligations [Abstract] | ||
Obligation instrument term | 1 year | |
Commitment to Extend Credits and Unused Lines of Credit [Member] | ||
Guarantor Obligations [Abstract] | ||
Commitments - maximum potential obligation | $ 2,400.0 | $ 2,300.0 |
Standby Letters of Credit [Member] | ||
Guarantor Obligations [Abstract] | ||
Commitments - maximum potential obligation | $ 56.2 | $ 55.1 |
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