INDEPENDENT BANK CORPORATION |
(Exact name of registrant as specified in its charter) |
Michigan | 38-2032782 | |
(State or jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
4200 East Beltline, Grand Rapids, Michigan 49525 |
(Address of principal executive offices) |
(616) 527-5820 (Registrant’s telephone number, including area code) |
NONE |
Former name, address and fiscal year, if changed since last report. |
Title of each Class | Trading Symbol | Name of each exchange which registered | ||
Common stock, no par value | IBCP | The Nasdaq Stock Market, LLC |
Number(s) | |||
PART I - | Financial Information | ||
Item 1. | 3 | ||
4 | |||
5 | |||
6 | |||
7 | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | Other Information | ||
Item 1A | |||
Item 2. | |||
Item 6. |
Part I - | INDEPENDENT BANK CORPORATION AND SUBSIDIARIES |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
(In thousands, except share amounts) | (In thousands, except share amounts) | |||||||||||||||
Assets | Assets | Assets | ||||||||||||||
Cash and due from banks | $ | 35,180 | $ | 36,994 | $ | 38,662 | $ | 23,350 | ||||||||
Interest bearing deposits | 17,990 | 17,744 | 43,755 | 46,894 | ||||||||||||
Cash and Cash Equivalents | 53,170 | 54,738 | 82,417 | 70,244 | ||||||||||||
Interest bearing deposits - time | 593 | 2,739 | 499 | 595 | ||||||||||||
Equity securities at fair value | 285 | - | - | 393 | ||||||||||||
Trading securities | - | 455 | ||||||||||||||
Securities available for sale | 436,957 | 522,925 | 439,592 | 427,926 | ||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 18,355 | 15,543 | 18,359 | 18,359 | ||||||||||||
Loans held for sale, carried at fair value | 41,325 | 39,436 | 87,358 | 44,753 | ||||||||||||
Loans held for sale, carried at lower of cost or fair value | 36,622 | 41,471 | ||||||||||||||
Loans | ||||||||||||||||
Commercial | 1,112,101 | 853,260 | 1,189,017 | 1,144,481 | ||||||||||||
Mortgage | 1,056,482 | 849,530 | 1,070,035 | 1,042,890 | ||||||||||||
Installment | 393,995 | 316,027 | 463,394 | 395,149 | ||||||||||||
Total Loans | 2,562,578 | 2,018,817 | 2,722,446 | 2,582,520 | ||||||||||||
Allowance for loan losses | (24,401 | ) | (22,587 | ) | (26,148 | ) | (24,888 | ) | ||||||||
Net Loans | 2,538,177 | 1,996,230 | 2,696,298 | 2,557,632 | ||||||||||||
Other real estate and repossessed assets | 1,445 | 1,643 | ||||||||||||||
Other real estate and repossessed assets, net | 1,789 | 1,299 | ||||||||||||||
Property and equipment, net | 39,012 | 39,149 | 37,424 | 38,777 | ||||||||||||
Bank-owned life insurance | 54,811 | 54,572 | 55,412 | 55,068 | ||||||||||||
Deferred tax assets, net | 8,449 | 15,089 | 2,773 | 5,779 | ||||||||||||
Capitalized mortgage loan servicing rights | 23,151 | 15,699 | ||||||||||||||
Capitalized mortgage loan servicing rights, carried at fair value | 16,906 | 21,400 | ||||||||||||||
Other intangibles | 6,709 | 1,586 | 5,598 | 6,415 | ||||||||||||
Goodwill | 28,300 | - | 28,300 | 28,300 | ||||||||||||
Accrued income and other assets | 46,385 | 29,551 | 41,490 | 34,870 | ||||||||||||
Total Assets | $ | 3,297,124 | $ | 2,789,355 | $ | 3,550,837 | $ | 3,353,281 | ||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||
Liabilities and Shareholders’ Equity | Liabilities and Shareholders’ Equity | |||||||||||||||
Deposits | ||||||||||||||||
Non-interest bearing | $ | 880,932 | $ | 768,333 | $ | 883,138 | $ | 879,549 | ||||||||
Savings and interest-bearing checking | 1,217,939 | 1,064,391 | 1,178,695 | 1,194,865 | ||||||||||||
Reciprocal | 92,635 | 50,979 | 416,200 | 182,072 | ||||||||||||
Time | 399,110 | 374,872 | 374,579 | 385,981 | ||||||||||||
Brokered time | 208,027 | 141,959 | 199,700 | 270,961 | ||||||||||||
Total Deposits | 2,798,643 | 2,400,534 | 3,052,312 | 2,913,428 | ||||||||||||
Other borrowings | 79,688 | 54,600 | 63,974 | 25,700 | ||||||||||||
Subordinated debentures | 39,371 | 35,569 | 39,439 | 39,388 | ||||||||||||
Accrued expenses and other liabilities | 34,218 | 33,719 | 54,867 | 35,771 | ||||||||||||
Total Liabilities | 2,951,920 | 2,524,422 | 3,210,592 | 3,014,287 | ||||||||||||
Commitments and contingent liabilities | ||||||||||||||||
Shareholders’ Equity | ||||||||||||||||
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding | - | - | - | - | ||||||||||||
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 24,150,341 shares at September 30, 2018 and 21,333,869 shares at December 31, 2017 | 389,689 | 324,986 | ||||||||||||||
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 22,480,748 shares at September 30, 2019 and 23,579,725 shares at December 31, 2018 | 351,839 | 377,372 | ||||||||||||||
Accumulated deficit | (34,596 | ) | (54,054 | ) | (8,221 | ) | (28,270 | ) | ||||||||
Accumulated other comprehensive loss | (9,889 | ) | (5,999 | ) | (3,373 | ) | (10,108 | ) | ||||||||
Total Shareholders’ Equity | 345,204 | 264,933 | 340,245 | 338,994 | ||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 3,297,124 | $ | 2,789,355 | $ | 3,550,837 | $ | 3,353,281 |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||||||||||
(In thousands, except per share amounts) | (In thousands, except per share amounts) | |||||||||||||||||||||||||||||||
Interest Income | ||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 31,000 | $ | 21,831 | $ | 84,027 | $ | 61,638 | $ | 34,226 | $ | 31,000 | $ | 100,743 | $ | 84,027 | ||||||||||||||||
Interest on securities | ||||||||||||||||||||||||||||||||
Taxable | 2,737 | 2,765 | 8,092 | 8,300 | 2,771 | 2,737 | 8,811 | 8,092 | ||||||||||||||||||||||||
Tax-exempt | 412 | 512 | 1,335 | 1,478 | 319 | 412 | 1,017 | 1,335 | ||||||||||||||||||||||||
Other investments | 303 | 263 | 898 | 867 | 495 | 303 | 1,449 | 898 | ||||||||||||||||||||||||
Total Interest Income | 34,452 | 25,371 | 94,352 | 72,283 | 37,811 | 34,452 | 112,020 | 94,352 | ||||||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||||||||
Deposits | 3,976 | 1,833 | 9,472 | 4,754 | 6,236 | 3,976 | 17,938 | 9,472 | ||||||||||||||||||||||||
Other borrowings and subordinated debentures | 779 | 626 | 2,267 | 1,659 | 703 | 779 | 2,211 | 2,267 | ||||||||||||||||||||||||
Total Interest Expense | 4,755 | 2,459 | 11,739 | 6,413 | 6,939 | 4,755 | 20,149 | 11,739 | ||||||||||||||||||||||||
Net Interest Income | 29,697 | 22,912 | 82,613 | 65,870 | 30,872 | 29,697 | 91,871 | 82,613 | ||||||||||||||||||||||||
Provision for loan losses | (53 | ) | 582 | 912 | 806 | (271 | ) | (53 | ) | 1,045 | 912 | |||||||||||||||||||||
Net Interest Income After Provision for Loan Losses | 29,750 | 22,330 | 81,701 | 65,064 | 31,143 | 29,750 | 90,826 | 81,701 | ||||||||||||||||||||||||
Non-interest Income | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | 3,166 | 3,281 | 9,166 | 9,465 | 2,883 | 3,166 | 8,323 | 9,166 | ||||||||||||||||||||||||
Interchange income | 2,486 | 1,942 | 7,236 | 5,869 | 2,785 | 2,486 | 7,744 | 7,236 | ||||||||||||||||||||||||
Net gains (losses) on assets | ||||||||||||||||||||||||||||||||
Mortgage loans | 2,745 | 2,971 | 8,571 | 8,886 | 5,677 | 2,745 | 13,590 | 8,571 | ||||||||||||||||||||||||
Securities | 93 | 69 | (71 | ) | 62 | - | 93 | 304 | (71 | ) | ||||||||||||||||||||||
Mortgage loan servicing, net | 1,212 | 1 | 4,668 | 668 | (1,562 | ) | 1,212 | (4,684 | ) | 4,668 | ||||||||||||||||||||||
Other | 2,134 | 2,040 | 6,294 | 6,139 | 2,492 | 2,134 | 6,862 | 6,294 | ||||||||||||||||||||||||
Total Non-interest Income | 11,836 | 10,304 | 35,864 | 31,089 | 12,275 | 11,836 | 32,139 | 35,864 | ||||||||||||||||||||||||
Non-interest Expense | ||||||||||||||||||||||||||||||||
Compensation and employee benefits | 16,169 | 13,577 | 46,506 | 41,104 | 16,673 | 16,169 | 48,955 | 46,506 | ||||||||||||||||||||||||
Occupancy, net | 2,233 | 1,970 | 6,667 | 6,032 | 2,161 | 2,233 | 6,797 | 6,667 | ||||||||||||||||||||||||
Data processing | 2,051 | 1,796 | 6,180 | 5,670 | 2,282 | 2,051 | 6,597 | 6,180 | ||||||||||||||||||||||||
Merger related expenses | 98 | 10 | 3,354 | 10 | ||||||||||||||||||||||||||||
Furniture, fixtures and equipment | 1,043 | 961 | 3,029 | 2,943 | 1,023 | 1,043 | 3,058 | 3,029 | ||||||||||||||||||||||||
Communications | 727 | 685 | 2,111 | 2,046 | 733 | 727 | 2,219 | 2,111 | ||||||||||||||||||||||||
Interchange expense | 715 | 294 | 1,974 | 869 | 891 | 715 | 2,332 | 1,974 | ||||||||||||||||||||||||
Loan and collection | 531 | 481 | 1,900 | 1,564 | 714 | 531 | 1,976 | 1,900 | ||||||||||||||||||||||||
Advertising | 594 | 526 | 1,578 | 1,551 | 636 | 594 | 1,935 | 1,578 | ||||||||||||||||||||||||
Legal and professional | 477 | 540 | 1,311 | 1,366 | 541 | 477 | 1,281 | 1,311 | ||||||||||||||||||||||||
FDIC deposit insurance | 270 | 208 | 750 | 608 | 13 | 270 | 723 | 750 | ||||||||||||||||||||||||
Merger related expenses | - | 98 | - | 3,354 | ||||||||||||||||||||||||||||
Other | 1,832 | 1,568 | 5,276 | 5,183 | 2,181 | 1,832 | 6,557 | 5,276 | ||||||||||||||||||||||||
Total Non-interest Expense | 26,740 | 22,616 | 80,636 | 68,946 | 27,848 | 26,740 | 82,430 | 80,636 | ||||||||||||||||||||||||
Income Before Income Tax | 14,846 | 10,018 | 36,929 | 27,207 | 15,570 | 14,846 | 40,535 | 36,929 | ||||||||||||||||||||||||
Income tax expense | 2,921 | 3,159 | 7,026 | 8,443 | 3,125 | 2,921 | 7,979 | 7,026 | ||||||||||||||||||||||||
Net Income | $ | 11,925 | $ | 6,859 | $ | 29,903 | $ | 18,764 | $ | 12,445 | $ | 11,925 | $ | 32,556 | $ | 29,903 | ||||||||||||||||
Net Income Per Common Share | ||||||||||||||||||||||||||||||||
Basic | $ | 0.49 | $ | 0.32 | $ | 1.29 | $ | 0.88 | $ | 0.55 | $ | 0.49 | $ | 1.41 | $ | 1.29 | ||||||||||||||||
Diluted | $ | 0.49 | $ | 0.32 | $ | 1.27 | $ | 0.87 | $ | 0.55 | $ | 0.49 | $ | 1.40 | $ | 1.27 | ||||||||||||||||
Dividends Per Common Share | ||||||||||||||||||||||||||||||||
Declared | $ | 0.15 | $ | 0.10 | $ | 0.45 | $ | 0.30 | ||||||||||||||||||||||||
Paid | $ | 0.15 | $ | 0.10 | $ | 0.45 | $ | 0.30 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||
(unaudited) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||||||
(In thousands) | (unaudited - In thousands) | |||||||||||||||||||||||||||||||
Net income | $ | 11,925 | $ | 6,859 | $ | 29,903 | $ | 18,764 | $ | 12,445 | $ | 11,925 | $ | 32,556 | $ | 29,903 | ||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||
Unrealized gains (losses) arising during period | (1,157 | ) | 20 | (6,220 | ) | 7,738 | 1,567 | (1,157 | ) | 10,851 | (6,220 | ) | ||||||||||||||||||||
Change in unrealized gains (losses) for which a portion of other than temporary impairment has been recognized in earnings | (14 | ) | 126 | (17 | ) | 211 | ||||||||||||||||||||||||||
Change in unrealized losses for which a portion of other than temporary impairment has been recognized in earnings | (53 | ) | (14 | ) | (55 | ) | (17 | ) | ||||||||||||||||||||||||
Reclassification adjustments for (gains) losses included in earnings | - | (8 | ) | 45 | (125 | ) | - | - | (137 | ) | 45 | |||||||||||||||||||||
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale | (1,171 | ) | 138 | (6,192 | ) | 7,824 | 1,514 | (1,171 | ) | 10,659 | (6,192 | ) | ||||||||||||||||||||
Income tax expense (benefit) | (246 | ) | 48 | (1,300 | ) | 2,738 | 318 | (246 | ) | 2,238 | (1,300 | ) | ||||||||||||||||||||
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale, net of tax | (925 | ) | 90 | (4,892 | ) | 5,086 | 1,196 | (925 | ) | 8,421 | (4,892 | ) | ||||||||||||||||||||
Derivative instruments | ||||||||||||||||||||||||||||||||
Unrealized gain arising during period | 389 | 95 | 1,400 | 95 | ||||||||||||||||||||||||||||
Reclassification adjustment for income (expense) recognized in earnings | (73 | ) | 5 | (132 | ) | 5 | ||||||||||||||||||||||||||
Unrealized gains recognized in other comprehensive income (loss) on derivative instruments | 316 | 100 | 1,268 | 100 | ||||||||||||||||||||||||||||
Income tax expense | 66 | 35 | 266 | 35 | ||||||||||||||||||||||||||||
Unrealized gains recognized in other comprehensive income (loss) on derivative instruments, net of tax | 250 | 65 | 1,002 | 65 | ||||||||||||||||||||||||||||
Unrealized gain (loss) arising during period | (72 | ) | 389 | (1,740 | ) | 1,400 | ||||||||||||||||||||||||||
Reclassification adjustment for income recognized in earnings | (102 | ) | (73 | ) | (393 | ) | (132 | ) | ||||||||||||||||||||||||
Unrealized gains (losses) recognized in other comprehensive income (loss) on derivative instruments | (174 | ) | 316 | (2,133 | ) | 1,268 | ||||||||||||||||||||||||||
Income tax expense (benefit) | (36 | ) | 66 | (447 | ) | 266 | ||||||||||||||||||||||||||
Unrealized gains (losses) recognized in other comprehensive income (loss) on derivative instruments, net of tax | (138 | ) | 250 | (1,686 | ) | 1,002 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | (675 | ) | 155 | (3,890 | ) | 5,151 | 1,058 | (675 | ) | 6,735 | (3,890 | ) | ||||||||||||||||||||
Comprehensive income | $ | 11,250 | $ | 7,014 | $ | 26,013 | $ | 23,915 | $ | 13,503 | $ | 11,250 | $ | 39,291 | $ | 26,013 |
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||||
(unaudited - In thousands) | (unaudited - In thousands) | |||||||||||||||
Net Income | $ | 29,903 | $ | 18,764 | $ | 32,556 | $ | 29,903 | ||||||||
Adjustments to Reconcile Net Income to Net Cash From Operating Activities | ||||||||||||||||
Proceeds from the sale of equity securities at fair value | 560 | - | ||||||||||||||
Proceeds from sales of loans held for sale | 351,486 | 313,559 | 422,557 | 351,486 | ||||||||||||
Disbursements for loans held for sale | (343,462 | ) | (316,338 | ) | (451,572 | ) | (343,462 | ) | ||||||||
Provision for loan losses | 912 | 806 | 1,045 | 912 | ||||||||||||
Deferred income tax expense | 6,972 | 7,422 | 1,216 | 6,972 | ||||||||||||
Deferred loan fees and costs | (3,681 | ) | (4,588 | ) | (3,122 | ) | (3,681 | ) | ||||||||
Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans and interest bearing deposits - time | 4,560 | 5,079 | 4,427 | 4,560 | ||||||||||||
Net gains on mortgage loans | (8,571 | ) | (8,886 | ) | (13,590 | ) | (8,571 | ) | ||||||||
Net losses on securities | 71 | (62 | ) | |||||||||||||
Net (gains) losses on securities | (304 | ) | 71 | |||||||||||||
Share based compensation | 1,293 | 1,342 | 1,348 | 1,293 | ||||||||||||
Increase in accrued income and other assets | (16,925 | ) | (12,748 | ) | (2,149 | ) | (16,925 | ) | ||||||||
Increase (decrease) in accrued expenses and other liabilities | (1,930 | ) | 2,274 | 13,088 | (1,930 | ) | ||||||||||
Total Adjustments | (9,275 | ) | (12,140 | ) | (26,496 | ) | (9,275 | ) | ||||||||
Net Cash From Operating Activities | 20,628 | 6,624 | 6,060 | 20,628 | ||||||||||||
Cash Flow Used in Investing Activities | ||||||||||||||||
Proceeds from the sale of securities available for sale | 31,445 | 8,834 | 44,305 | 31,445 | ||||||||||||
Proceeds from maturities, prepayments and calls of securities available for sale | 125,275 | 143,953 | 110,517 | 125,275 | ||||||||||||
Purchases of securities available for sale | (71,067 | ) | (84,080 | ) | (123,238 | ) | (71,067 | ) | ||||||||
Proceeds from the sale of interest bearing deposits - time | 2,474 | - | - | 2,474 | ||||||||||||
Proceeds from the maturity of interest bearing deposits - time | 3,728 | 2,100 | 100 | 3,728 | ||||||||||||
Purchase of Federal Reserve Bank stock | (2,034 | ) | - | |||||||||||||
Purchase of Federal Reserve Bank Stock | - | (2,034 | ) | |||||||||||||
Net increase in portfolio loans (loans originated, net of principal payments) | (272,084 | ) | (326,089 | ) | (213,116 | ) | (272,084 | ) | ||||||||
Proceeds from the sale of portfolio loans | 27,577 | - | 50,516 | 27,577 | ||||||||||||
Acquisition of TCSB Bancorp Inc., less cash received | 23,516 | - | - | 23,516 | ||||||||||||
Cash received from the sale of Mepco Finance Corporation assets, net | - | 33,446 | ||||||||||||||
Proceeds from bank-owned life insurance | 474 | 523 | 470 | 474 | ||||||||||||
Proceeds from the sale of other real estate and repossessed assets | 1,777 | 4,111 | 1,438 | 1,777 | ||||||||||||
Capital expenditures | (2,812 | ) | (2,592 | ) | (2,587 | ) | (2,812 | ) | ||||||||
Net Cash Used in Investing Activities | (131,731 | ) | (219,794 | ) | (131,595 | ) | (131,731 | ) | ||||||||
Cash Flow From Financing Activities | ||||||||||||||||
Net increase in total deposits | 110,400 | 118,042 | 138,884 | 110,400 | ||||||||||||
Net increase in other borrowings | 18,903 | 3,003 | 18,355 | 18,903 | ||||||||||||
Proceeds from Federal Home Loan Bank Advances | 1,202,000 | 461,000 | 57,000 | 1,202,000 | ||||||||||||
Payments of Federal Home Loan Bank Advances | (1,210,197 | ) | (397,587 | ) | (37,143 | ) | (1,210,197 | ) | ||||||||
Dividends paid | (10,446 | ) | (6,400 | ) | (12,507 | ) | (10,446 | ) | ||||||||
Proceeds from issuance of common stock | 202 | 57 | 282 | 202 | ||||||||||||
Repurchase of common stock | (26,284 | ) | - | |||||||||||||
Share based compensation withholding obligation | (1,327 | ) | (536 | ) | (879 | ) | (1,327 | ) | ||||||||
Net Cash From Financing Activities | 109,535 | 177,579 | 137,708 | 109,535 | ||||||||||||
Net Decrease in Cash and Cash Equivalents | (1,568 | ) | (35,591 | ) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 12,173 | (1,568 | ) | |||||||||||||
Cash and Cash Equivalents at Beginning of Period | 54,738 | 83,194 | 70,244 | 54,738 | ||||||||||||
Cash and Cash Equivalents at End of Period | $ | 53,170 | $ | 47,603 | $ | 82,417 | $ | 53,170 | ||||||||
Cash paid during the period for | ||||||||||||||||
Interest | $ | 11,168 | $ | 6,240 | $ | 20,185 | $ | 11,168 | ||||||||
Income taxes | 120 | 988 | 5,934 | 120 | ||||||||||||
Operating leases | 1,692 | - | ||||||||||||||
Transfers to other real estate and repossessed assets | 960 | 1,389 | 1,901 | 960 | ||||||||||||
Purchase of securities available for sale not yet settled | 3,075 | 1,000 | ||||||||||||||
Securitization of portfolio loans | 29,790 | - | ||||||||||||||
Right of use assets obtained in exchange for lease obligations | 7,767 | - | ||||||||||||||
Transfer of loans to held for sale | 27,577 | - | 36,622 | 27,577 | ||||||||||||
Purchase of securities available for sale not yet settled | 1,000 | 1,765 | ||||||||||||||
Sale of securities available for sale not yet settled | - | 760 |
Nine months ended September 30, | ||||||||
2018 | 2017 | |||||||
(unaudited) | ||||||||
(In thousands) | ||||||||
Balance at beginning of period | $ | 264,933 | $ | 248,980 | ||||
Cumulative effect of change in accounting | - | 352 | ||||||
Balance at beginning of period, as adjusted | 264,933 | 249,332 | ||||||
Net income | 29,903 | 18,764 | ||||||
Cash dividends declared | (10,446 | ) | (6,400 | ) | ||||
Acquisition of TCSB Bancorp, Inc. | 64,536 | - | ||||||
Issuance of common stock | 202 | 57 | ||||||
Share based compensation | 1,293 | 1,342 | ||||||
Share based compensation withholding obligation | (1,327 | ) | (536 | ) | ||||
Net change in accumulated other comprehensive loss, net of related tax effect | (3,890 | ) | 5,151 | |||||
Balance at end of period | $ | 345,204 | $ | 267,710 |
Common Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Balances at July 1, 2019 | $ | 351,894 | $ | (16,617 | ) | $ | (4,431 | ) | $ | 330,846 | ||||||
Net income, three months ended September 30, 2019 | - | 12,445 | - | 12,445 | ||||||||||||
Cash dividends declared, $.18 per share | - | (4,049 | ) | - | (4,049 | ) | ||||||||||
Repurchase of 25,000 shares of common stock | (502 | ) | - | - | (502 | ) | ||||||||||
Issuance of 1,900 shares of common stock | - | - | - | - | ||||||||||||
Share based compensation (issuance of 5,991 shares of common stock) | 460 | - | - | 460 | ||||||||||||
Share based compensation withholding obligation (withholding of 919 shares of common stock) | (13 | ) | - | - | (13 | ) | ||||||||||
Other comprehensive income | - | - | 1,058 | 1,058 | ||||||||||||
Balances at September 30, 2019 | $ | 351,839 | $ | (8,221 | ) | $ | (3,373 | ) | $ | 340,245 | ||||||
Balances at July 1, 2018 | $ | 389,196 | $ | (42,899 | ) | $ | (9,214 | ) | $ | 337,083 | ||||||
Net income, three months ended September 30, 2018 | - | 11,925 | - | 11,925 | ||||||||||||
Cash dividends declared, $.15 per share | - | (3,623 | ) | - | (3,623 | ) | ||||||||||
Issuance of 8,340 shares of common stock | 55 | - | - | 55 | ||||||||||||
Share based compensation (issuance of zero shares of common stock) | 445 | - | - | 445 | ||||||||||||
Share based compensation withholding obligation (withholding of 382 shares of common stock) | (6 | ) | - | - | (6 | ) | ||||||||||
Other comprehensive loss | - | - | (675 | ) | (675 | ) | ||||||||||
Balances at September 30, 2018 | $ | 389,690 | $ | (34,597 | ) | $ | (9,889 | ) | $ | 345,204 | ||||||
Balances at January 1, 2019 | $ | 377,372 | $ | (28,270 | ) | $ | (10,108 | ) | $ | 338,994 | ||||||
Net income, nine months ended September 30, 2019 | - | 32,556 | - | 32,556 | ||||||||||||
Cash dividends declared, $.54 per share | - | (12,507 | ) | - | (12,507 | ) | ||||||||||
Repurchase of 1,204,688 shares of common stock | (26,284 | ) | - | - | (26,284 | ) | ||||||||||
Issuance of 70,299 shares of common stock | 282 | - | - | 282 | ||||||||||||
Share based compensation (issuance of 92,617 shares of common stock) | 1,348 | - | - | 1,348 | ||||||||||||
Share based compensation withholding obligation (withholding of 57,205 shares of common stock) | (879 | ) | - | - | (879 | ) | ||||||||||
Other comprehensive income | - | - | 6,735 | 6,735 | ||||||||||||
Balances at September 30, 2019 | $ | 351,839 | $ | (8,221 | ) | $ | (3,373 | ) | $ | 340,245 | ||||||
Balances at January 1, 2018 | $ | 324,986 | $ | (54,054 | ) | $ | (5,999 | ) | $ | 264,933 | ||||||
Net income, nine months ended September 30, 2018 | - | 29,903 | - | 29,903 | ||||||||||||
Cash dividends declared, $.45 per share | - | (10,446 | ) | - | (10,446 | ) | ||||||||||
Acquisition of TCSB Bancorp, Inc. | 64,536 | - | - | 64,536 | ||||||||||||
Issuance of 113,548 shares of common stock | 202 | - | - | 202 | ||||||||||||
Share based compensation (issuance of 81,919 shares of common stock) | 1,293 | - | - | 1,293 | ||||||||||||
Share based compensation withholding obligation (withholding of 87,767 shares of common stock) | (1,327 | ) | - | - | (1,327 | ) | ||||||||||
Other comprehensive loss | - | - | (3,890 | ) | (3,890 | ) | ||||||||||
Balances at September 30, 2018 | $ | 389,690 | $ | (34,597 | ) | $ | (9,889 | ) | $ | 345,204 |
1. | Preparation of Financial Statements |
2. | New Accounting Standards |
As Reported | Under Legacy GAAP | Impact of ASU 2014-09 | |||||||||||
(In thousands) | |||||||||||||
Three months ended September 30, 2018 | |||||||||||||
Non-interest income - Interchange income | $ | 2,486 | $ | 2,088 | $ | 398 | (1 | ) | |||||
Non-interest expense - interchange expense | $ | 715 | $ | 317 | 398 | (1 | ) | ||||||
Impact on net income | $ | - | |||||||||||
Nine months ended September 30, 2018 | |||||||||||||
Non-interest income - Interchange income | $ | 7,236 | $ | 6,170 | $ | 1,066 | (1 | ) | |||||
Non-interest expense - interchange expense | $ | 1,974 | $ | 908 | 1,066 | (1 | ) | ||||||
Impact on net income | $ | - |
3. | Securities |
Amortized | Unrealized | Amortized | Unrealized | |||||||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||
U.S. agency | $ | 20,769 | $ | - | $ | 346 | $ | 20,423 | $ | 15,145 | $ | 153 | $ | 15 | $ | 15,283 | ||||||||||||||||
U.S. agency residential mortgage-backed | 126,851 | 802 | 2,592 | 125,061 | 146,128 | 1,806 | 214 | 147,720 | ||||||||||||||||||||||||
U.S. agency commercial mortgage-backed | 6,039 | - | 224 | 5,815 | 11,182 | 155 | 18 | 11,319 | ||||||||||||||||||||||||
Private label mortgage-backed | 29,340 | 369 | 736 | 28,973 | 31,195 | 686 | 55 | 31,826 | ||||||||||||||||||||||||
Other asset backed | 78,567 | 147 | 188 | 78,526 | 94,799 | 185 | 199 | 94,785 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 143,138 | 219 | 3,703 | 139,654 | 99,352 | 1,880 | 93 | 101,139 | ||||||||||||||||||||||||
Corporate | 35,017 | 65 | 512 | 34,570 | 32,444 | 1,237 | 3 | 33,678 | ||||||||||||||||||||||||
Trust preferred | 1,963 | - | 38 | 1,925 | 1,966 | - | 146 | 1,820 | ||||||||||||||||||||||||
Foreign government | 2,060 | - | 50 | 2,010 | 2,020 | 4 | 2 | 2,022 | ||||||||||||||||||||||||
Total | $ | 443,744 | $ | 1,602 | $ | 8,389 | $ | 436,957 | $ | 434,231 | $ | 6,106 | $ | 745 | $ | 439,592 | ||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||
U.S. Treasury | $ | 898 | $ | - | $ | - | $ | 898 | ||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
U.S. agency | 25,667 | 82 | 67 | 25,682 | $ | 20,198 | $ | 9 | $ | 193 | $ | 20,014 | ||||||||||||||||||||
U.S. agency residential mortgage-backed | 137,785 | 1,116 | 983 | 137,918 | 124,777 | 817 | 1,843 | 123,751 | ||||||||||||||||||||||||
U.S. agency commercial mortgage-backed | 9,894 | 36 | 170 | 9,760 | 5,909 | 1 | 184 | 5,726 | ||||||||||||||||||||||||
Private label mortgage-backed | 29,011 | 428 | 330 | 29,109 | 29,735 | 321 | 637 | 29,419 | ||||||||||||||||||||||||
Other asset backed | 93,811 | 202 | 115 | 93,898 | 83,481 | 86 | 248 | 83,319 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 174,073 | 755 | 1,883 | 172,945 | 130,244 | 257 | 2,946 | 127,555 | ||||||||||||||||||||||||
Corporate | 47,365 | 578 | 90 | 47,853 | 34,866 | 29 | 586 | 34,309 | ||||||||||||||||||||||||
Trust preferred | 2,929 | - | 127 | 2,802 | 1,964 | - | 145 | 1,819 | ||||||||||||||||||||||||
Foreign government | 2,087 | - | 27 | 2,060 | 2,050 | - | 36 | 2,014 | ||||||||||||||||||||||||
Total | $ | 523,520 | $ | 3,197 | $ | 3,792 | $ | 522,925 | $ | 433,224 | $ | 1,520 | $ | 6,818 | $ | 427,926 |
Less Than Twelve Months | Twelve Months or More | Total | Less Than Twelve Months | Twelve Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency | $ | 11,938 | $ | 239 | $ | 8,485 | $ | 107 | $ | 20,423 | $ | 346 | $ | 2,189 | $ | 4 | $ | 2,888 | $ | 11 | $ | 5,077 | $ | 15 | ||||||||||||||||||||||||
U.S. agency residential mortgage-backed | 28,672 | 765 | 40,857 | 1,827 | 69,529 | 2,592 | 26,084 | 33 | 16,902 | 181 | 42,986 | 214 | ||||||||||||||||||||||||||||||||||||
U.S. agency commercial mortgage-backed | 1,358 | 12 | 4,391 | 212 | 5,749 | 224 | 1,987 | 12 | 882 | 6 | 2,869 | 18 | ||||||||||||||||||||||||||||||||||||
Private label mortgage- backed | 10,209 | 295 | 8,473 | 441 | 18,682 | 736 | 5,636 | 6 | 612 | 49 | 6,248 | 55 | ||||||||||||||||||||||||||||||||||||
Other asset backed | 30,663 | 92 | 11,226 | 96 | 41,889 | 188 | 23,926 | 100 | 11,487 | 99 | 35,413 | 199 | ||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 59,590 | 1,157 | 57,509 | 2,546 | 117,099 | 3,703 | 14,457 | 37 | 4,362 | 56 | 18,819 | 93 | ||||||||||||||||||||||||||||||||||||
Corporate | 20,853 | 361 | 5,726 | 151 | 26,579 | 512 | 285 | 2 | 999 | 1 | 1,284 | 3 | ||||||||||||||||||||||||||||||||||||
Trust preferred | - | - | 925 | 38 | 925 | 38 | 900 | 100 | 920 | 46 | 1,820 | 146 | ||||||||||||||||||||||||||||||||||||
Foreign government | - | - | 2,010 | 50 | 2,010 | 50 | - | - | 1,519 | 2 | 1,519 | 2 | ||||||||||||||||||||||||||||||||||||
Total | $ | 163,283 | $ | 2,921 | $ | 139,602 | $ | 5,468 | $ | 302,885 | $ | 8,389 | $ | 75,464 | $ | 294 | $ | 40,571 | $ | 451 | $ | 116,035 | $ | 745 | ||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency | $ | 5,466 | $ | 26 | $ | 5,735 | $ | 41 | $ | 11,201 | $ | 67 | $ | 7,150 | $ | 46 | $ | 11,945 | $ | 147 | $ | 19,095 | $ | 193 | ||||||||||||||||||||||||
U.S. agency residential mortgage-backed | 22,198 | 229 | 40,698 | 754 | 62,896 | 983 | 18,374 | 180 | 48,184 | 1,663 | 66,558 | 1,843 | ||||||||||||||||||||||||||||||||||||
U.S. agency commercial mortgage-backed | 2,181 | 34 | 3,994 | 136 | 6,175 | 170 | 566 | 3 | 5,094 | 181 | 5,660 | 184 | ||||||||||||||||||||||||||||||||||||
Private label mortgage-backed | 11,390 | 92 | 4,396 | 238 | 15,786 | 330 | 8,273 | 57 | 16,145 | 580 | 24,418 | 637 | ||||||||||||||||||||||||||||||||||||
Other asset backed | 20,352 | 40 | 16,648 | 75 | 37,000 | 115 | 53,043 | 160 | 10,235 | 88 | 63,278 | 248 | ||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 76,574 | 936 | 28,246 | 947 | 104,820 | 1,883 | 25,423 | 262 | 80,701 | 2,684 | 106,124 | 2,946 | ||||||||||||||||||||||||||||||||||||
Corporate | 14,440 | 33 | 3,943 | 57 | 18,383 | 90 | 17,758 | 343 | 9,222 | 243 | 26,980 | 586 | ||||||||||||||||||||||||||||||||||||
Trust preferred | - | - | 2,802 | 127 | 2,802 | 127 | 939 | 61 | 880 | 84 | 1,819 | 145 | ||||||||||||||||||||||||||||||||||||
Foreign government | 489 | 10 | 1,571 | 17 | 2,060 | 27 | - | - | 2,014 | 36 | 2,014 | 36 | ||||||||||||||||||||||||||||||||||||
Total | $ | 153,090 | $ | 1,400 | $ | 108,033 | $ | 2,392 | $ | 261,123 | $ | 3,792 | $ | 131,526 | $ | 1,112 | $ | 184,420 | $ | 5,706 | $ | 315,946 | $ | 6,818 |
Senior Security | Super Senior Security | Senior Support Security | Total | Senior Security | Super Senior Security | Total | ||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||
Fair value | $ | 842 | $ | 808 | $ | 32 | $ | 1,682 | $ | 645 | $ | 647 | $ | 1,292 | ||||||||||||||
Amortized cost | 698 | 633 | - | 1,331 | 552 | 479 | 1,031 | |||||||||||||||||||||
Non-credit unrealized loss | - | - | - | - | - | - | - | |||||||||||||||||||||
Unrealized gain | 144 | 175 | 32 | 351 | 93 | 168 | 261 | |||||||||||||||||||||
Cumulative credit related OTTI | 757 | 457 | 380 | 1,594 | 757 | 457 | 1,214 |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 1,594 | $ | 1,594 | $ | 1,594 | $ | 1,594 | $ | 1,594 | $ | 1,594 | $ | 1,594 | $ | 1,594 | ||||||||||||||||
Additions to credit losses on securities for which no previous OTTI was recognized | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Increases to credit losses on securities for which OTTI was previously recognized | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Reduction(1) | (380 | ) | - | (380 | ) | - | ||||||||||||||||||||||||||
Balance at end of period | $ | 1,594 | $ | 1,594 | $ | 1,594 | $ | 1,594 | $ | 1,214 | $ | 1,594 | $ | 1,214 | $ | 1,594 |
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Maturing within one year | $ | 14,513 | $ | 14,494 | $ | 13,331 | $ | 13,347 | ||||||||
Maturing after one year but within five years | 79,683 | 78,634 | 53,809 | 54,524 | ||||||||||||
Maturing after five years but within ten years | 62,609 | 60,979 | 47,726 | 49,239 | ||||||||||||
Maturing after ten years | 46,142 | 44,475 | 36,061 | 36,832 | ||||||||||||
202,947 | 198,582 | 150,927 | 153,942 | |||||||||||||
U.S. agency residential mortgage-backed | 126,851 | 125,061 | 146,128 | 147,720 | ||||||||||||
U.S. agency commercial mortgage-backed | 6,039 | 5,815 | 11,182 | 11,319 | ||||||||||||
Private label mortgage-backed | 29,340 | 28,973 | 31,195 | 31,826 | ||||||||||||
Other asset backed | 78,567 | 78,526 | 94,799 | 94,785 | ||||||||||||
Total | $ | 443,744 | $ | 436,957 | $ | 434,231 | $ | 439,592 |
Realized | Realized | |||||||||||||||||||||||
Proceeds (1) | Gains (2) | Losses | Proceeds | Gains (1) | Losses | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
2019 | $ | 44,305 | $ | 169 | $ | 32 | ||||||||||||||||||
2018 | $ | 31,445 | $ | 81 | $ | 126 | $ | 31,445 | $ | 81 | $ | 126 | ||||||||||||
2017 | 9,594 | 125 | - |
(1) |
2018 excludes a $0.144 million gain on the sale of 1,000 VISA |
4. | Loans |
Commercial | Mortgage | Installment | Subjective Allocation | Total | Commercial | Mortgage | Installment | Subjective Allocation | Total | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 8,121 | $ | 8,062 | $ | 1,293 | $ | 8,427 | $ | 25,903 | ||||||||||||||||||||||||||||||
Additions (deductions) | ||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | (810 | ) | 83 | 289 | 167 | (271 | ) | |||||||||||||||||||||||||||||||||
Recoveries credited to the allowance | 1,215 | 235 | 202 | - | 1,652 | |||||||||||||||||||||||||||||||||||
Loans charged against the allowance | (303 | ) | (397 | ) | (436 | ) | - | (1,136 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | $ | 8,223 | $ | 7,983 | $ | 1,348 | $ | 8,594 | $ | 26,148 | ||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 6,073 | $ | 8,296 | $ | 848 | $ | 8,287 | $ | 23,504 | $ | 6,073 | $ | 8,296 | $ | 848 | $ | 8,287 | $ | 23,504 | ||||||||||||||||||||
Additions (deductions) | ||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | (907 | ) | 415 | (25 | ) | 464 | (53 | ) | (907 | ) | 415 | (25 | ) | 464 | (53 | ) | ||||||||||||||||||||||||
Recoveries credited to the allowance | 1,418 | 192 | 298 | - | 1,908 | 1,418 | 192 | 298 | - | 1,908 | ||||||||||||||||||||||||||||||
Loans charged against the allowance | (225 | ) | (448 | ) | (285 | ) | - | (958 | ) | (225 | ) | (448 | ) | (285 | ) | - | (958 | ) | ||||||||||||||||||||||
Balance at end of period | $ | 6,359 | $ | 8,455 | $ | 836 | $ | 8,751 | $ | 24,401 | $ | 6,359 | $ | 8,455 | $ | 836 | $ | 8,751 | $ | 24,401 | ||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 5,100 | $ | 8,145 | $ | 900 | $ | 6,441 | $ | 20,586 | ||||||||||||||||||||||||||||||
Additions (deductions) | ||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | (97 | ) | 68 | (33 | ) | 644 | 582 | |||||||||||||||||||||||||||||||||
Recoveries credited to the allowance | 340 | 587 | 285 | - | 1,212 | |||||||||||||||||||||||||||||||||||
Loans charged against the allowance | (92 | ) | (471 | ) | (339 | ) | - | (902 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | $ | 5,251 | $ | 8,329 | $ | 813 | $ | 7,085 | $ | 21,478 |
Commercial | Mortgage | Installment | Subjective Allocation | Total | Commercial | Mortgage | Installment | Subjective Allocation | Total | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 7,090 | $ | 7,978 | $ | 895 | $ | 8,925 | $ | 24,888 | ||||||||||||||||||||||||||||||
Additions (deductions) | ||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | 85 | 270 | 1,021 | (331 | ) | 1,045 | ||||||||||||||||||||||||||||||||||
Recoveries credited to the allowance | 1,720 | 786 | 603 | - | 3,109 | |||||||||||||||||||||||||||||||||||
Loans charged against the allowance | (672 | ) | (1,051 | ) | (1,171 | ) | - | (2,894 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | $ | 8,223 | $ | 7,983 | $ | 1,348 | $ | 8,594 | $ | 26,148 | ||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 5,595 | $ | 8,733 | $ | 864 | $ | 7,395 | $ | 22,587 | $ | 5,595 | $ | 8,733 | $ | 864 | $ | 7,395 | $ | 22,587 | ||||||||||||||||||||
Additions (deductions) | ||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | (1,404 | ) | 778 | 182 | 1,356 | 912 | (1,404 | ) | 778 | 182 | 1,356 | 912 | ||||||||||||||||||||||||||||
Recoveries credited to the allowance | 2,458 | 549 | 761 | - | 3,768 | 2,458 | 549 | 761 | - | 3,768 | ||||||||||||||||||||||||||||||
Loans charged against the allowance | (290 | ) | (1,605 | ) | (971 | ) | - | (2,866 | ) | (290 | ) | (1,605 | ) | (971 | ) | - | (2,866 | ) | ||||||||||||||||||||||
Balance at end of period | $ | 6,359 | $ | 8,455 | $ | 836 | $ | 8,751 | $ | 24,401 | $ | 6,359 | $ | 8,455 | $ | 836 | $ | 8,751 | $ | 24,401 | ||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 4,880 | $ | 8,681 | $ | 1,011 | $ | 5,662 | $ | 20,234 | ||||||||||||||||||||||||||||||
Additions (deductions) | ||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | (197 | ) | (593 | ) | 173 | 1,423 | 806 | |||||||||||||||||||||||||||||||||
Recoveries credited to the allowance | 946 | 1,264 | 788 | - | 2,998 | |||||||||||||||||||||||||||||||||||
Loans charged against the allowance | (378 | ) | (1,023 | ) | (1,159 | ) | - | (2,560 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | $ | 5,251 | $ | 8,329 | $ | 813 | $ | 7,085 | $ | 21,478 |
Commercial | Mortgage | Installment | Subjective Allocation | Total | Commercial | Mortgage | Installment | Subjective Allocation | Total | |||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 727 | $ | 5,155 | $ | 220 | $ | - | $ | 6,102 | $ | 871 | $ | 4,610 | $ | 297 | $ | - | $ | 5,778 | ||||||||||||||||||||
Collectively evaluated for impairment | 5,632 | 3,300 | 616 | 8,751 | 18,299 | 7,352 | 3,373 | 1,051 | 8,594 | 20,370 | ||||||||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total ending allowance balance | $ | 6,359 | $ | 8,455 | $ | 836 | $ | 8,751 | $ | 24,401 | ||||||||||||||||||||||||||||||
Total ending allowance for loan losses balance | $ | 8,223 | $ | 7,983 | $ | 1,348 | $ | 8,594 | $ | 26,148 | ||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 9,714 | $ | 48,815 | $ | 3,630 | $ | 62,159 | $ | 7,776 | $ | 42,590 | $ | 3,223 | $ | 53,589 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 1,103,860 | 1,011,276 | 391,093 | 2,506,229 | 1,182,825 | 1,031,163 | 460,973 | 2,674,961 | ||||||||||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 1,653 | 557 | 355 | 2,565 | 1,421 | 582 | 329 | 2,332 | ||||||||||||||||||||||||||||||||
Total loans recorded investment | 1,115,227 | 1,060,648 | 395,078 | 2,570,953 | 1,192,022 | 1,074,335 | 464,525 | 2,730,882 | ||||||||||||||||||||||||||||||||
Accrued interest included in recorded investment | 3,126 | 4,166 | 1,083 | 8,375 | 3,005 | 4,300 | 1,131 | 8,436 | ||||||||||||||||||||||||||||||||
Total loans | $ | 1,112,101 | $ | 1,056,482 | $ | 393,995 | $ | 2,562,578 | $ | 1,189,017 | $ | 1,070,035 | $ | 463,394 | $ | 2,722,446 | ||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 837 | $ | 5,725 | $ | 277 | $ | - | $ | 6,839 | $ | 1,305 | $ | 4,799 | $ | 206 | $ | - | $ | 6,310 | ||||||||||||||||||||
Collectively evaluated for impairment | 4,758 | 3,008 | 587 | 7,395 | 15,748 | 5,785 | 3,179 | 689 | 8,925 | 18,578 | ||||||||||||||||||||||||||||||
Total ending allowance balance | $ | 5,595 | $ | 8,733 | $ | 864 | $ | 7,395 | $ | 22,587 | ||||||||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total ending allowance for loan losses balance | $ | 7,090 | $ | 7,978 | $ | 895 | $ | 8,925 | $ | 24,888 | ||||||||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 8,420 | $ | 53,179 | $ | 3,945 | $ | 65,544 | $ | 8,697 | $ | 46,394 | $ | 3,370 | $ | 58,461 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 847,140 | 799,629 | 313,005 | 1,959,774 | 1,137,586 | 1,000,038 | 392,460 | 2,530,084 | ||||||||||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 1,609 | 555 | 349 | 2,513 | ||||||||||||||||||||||||||||||||||||
Total loans recorded investment | 855,560 | 852,808 | 316,950 | 2,025,318 | 1,147,892 | 1,046,987 | 396,179 | 2,591,058 | ||||||||||||||||||||||||||||||||
Accrued interest included in recorded investment | 2,300 | 3,278 | 923 | 6,501 | 3,411 | 4,097 | 1,030 | 8,538 | ||||||||||||||||||||||||||||||||
Total loans | $ | 853,260 | $ | 849,530 | $ | 316,027 | $ | 2,018,817 | $ | 1,144,481 | $ | 1,042,890 | $ | 395,149 | $ | 2,582,520 |
90+ and Still Accruing | Non- Accrual | Total Non- Performing Loans | 90+ and Still Accruing | Non- Accrual | Total Non- Performing Loans | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Land, land development and construction - real estate | - | 2,402 | 2,402 | - | 654 | 654 | ||||||||||||||||||
Commercial and industrial | - | 380 | 380 | - | 87 | 87 | ||||||||||||||||||
Mortgage | ||||||||||||||||||||||||
1-4 family | - | 4,159 | 4,159 | - | 3,873 | 3,873 | ||||||||||||||||||
Resort lending | - | 969 | 969 | - | 227 | 227 | ||||||||||||||||||
Home equity - 1st lien | - | 324 | 324 | - | 208 | 208 | ||||||||||||||||||
Home equity - 2nd lien | - | 353 | 353 | - | 665 | 665 | ||||||||||||||||||
Installment | ||||||||||||||||||||||||
Home equity - 1st lien | - | 225 | 225 | - | 125 | 125 | ||||||||||||||||||
Home equity - 2nd lien | - | 246 | 246 | - | 269 | 269 | ||||||||||||||||||
Boat lending | - | 64 | 64 | - | 378 | 378 | ||||||||||||||||||
Recreational vehicle lending | - | 8 | 8 | - | 2 | 2 | ||||||||||||||||||
Other | - | 213 | 213 | - | 161 | 161 | ||||||||||||||||||
Total recorded investment | $ | - | $ | 9,343 | $ | 9,343 | $ | - | $ | 6,649 | $ | 6,649 | ||||||||||||
Accrued interest included in recorded investment | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
December 31, 2017 | ||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | 30 | $ | 30 | $ | - | $ | - | $ | - | ||||||||||||
Land, land development and construction - real estate | - | 9 | 9 | - | - | - | ||||||||||||||||||
Commercial and industrial | - | 607 | 607 | - | 2,123 | 2,123 | ||||||||||||||||||
Mortgage | ||||||||||||||||||||||||
1-4 family | - | 5,130 | 5,130 | 5 | 4,332 | 4,337 | ||||||||||||||||||
Resort lending | - | 1,223 | 1,223 | - | 755 | 755 | ||||||||||||||||||
Home equity - 1st lien | - | 326 | 326 | - | 159 | 159 | ||||||||||||||||||
Home equity - 2nd lien | - | 316 | 316 | - | 419 | 419 | ||||||||||||||||||
Installment | ||||||||||||||||||||||||
Home equity - 1st lien | - | 141 | 141 | - | 178 | 178 | ||||||||||||||||||
Home equity - 2nd lien | - | 159 | 159 | - | 226 | 226 | ||||||||||||||||||
Boat lending | - | 100 | 100 | - | 166 | 166 | ||||||||||||||||||
Recreational vehicle lending | - | 25 | 25 | - | 7 | 7 | ||||||||||||||||||
Other | - | 118 | 118 | - | 204 | 204 | ||||||||||||||||||
Total recorded investment | $ | - | $ | 8,184 | $ | 8,184 | $ | 5 | $ | 8,569 | $ | 8,574 | ||||||||||||
Accrued interest included in recorded investment | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
Loans Past Due | Loans not Past Due | Total Loans | Loans Past Due | Loans not | Total | |||||||||||||||||||||||||||||||||||||||||||
30-59 days | 60-89 days | 90+ days | Total | 30-59 days | 60-89 days | 90+ days | Total | Past Due | Loans | |||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | 32 | $ | - | $ | 32 | $ | 378,201 | $ | 378,233 | $ | 44 | $ | - | $ | - | $ | 44 | $ | 424,472 | $ | 424,516 | ||||||||||||||||||||||||
Land, land development and construction - real estate | - | - | 2,402 | 2,402 | 61,760 | 64,162 | - | - | - | - | 102,227 | 102,227 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 881 | 25 | 51 | 957 | 671,875 | 672,832 | 483 | 26 | - | 509 | 664,770 | 665,279 | ||||||||||||||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family | 2,146 | 687 | 4,344 | 7,177 | 844,584 | 851,761 | 3,098 | 973 | 1,359 | 5,430 | 841,658 | 847,088 | ||||||||||||||||||||||||||||||||||||
Resort lending | 418 | - | 969 | 1,387 | 83,420 | 84,807 | 703 | 81 | 93 | 877 | 69,949 | 70,826 | ||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 81 | 15 | 324 | 420 | 40,312 | 40,732 | 87 | 101 | 79 | 267 | 37,069 | 37,336 | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | 364 | 209 | 353 | 926 | 82,422 | 83,348 | 765 | 344 | 231 | 1,340 | 117,745 | 119,085 | ||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 285 | 44 | 225 | 554 | 7,738 | 8,292 | 83 | 19 | 10 | 112 | 5,871 | 5,983 | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | 190 | 45 | 246 | 481 | 7,099 | 7,580 | 118 | 3 | 166 | 287 | 4,832 | 5,119 | ||||||||||||||||||||||||||||||||||||
Boat lending | 153 | 16 | 64 | 233 | 169,925 | 170,158 | 625 | 49 | 140 | 814 | 205,526 | 206,340 | ||||||||||||||||||||||||||||||||||||
Recreational vehicle lending | 46 | 30 | 8 | 84 | 123,199 | 123,283 | 92 | 33 | 2 | 127 | 152,904 | 153,031 | ||||||||||||||||||||||||||||||||||||
Other | 145 | 140 | 213 | 498 | 85,267 | 85,765 | 233 | 85 | 104 | 422 | 93,630 | 94,052 | ||||||||||||||||||||||||||||||||||||
Total recorded investment | $ | 4,709 | $ | 1,243 | $ | 9,199 | $ | 15,151 | $ | 2,555,802 | $ | 2,570,953 | $ | 6,331 | $ | 1,714 | $ | 2,184 | $ | 10,229 | $ | 2,720,653 | $ | 2,730,882 | ||||||||||||||||||||||||
Accrued interest included in recorded investment | $ | 53 | $ | 21 | $ | - | $ | 74 | $ | 8,301 | $ | 8,375 | $ | 65 | $ | 17 | $ | - | $ | 82 | $ | 8,354 | $ | 8,436 | ||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | - | $ | 30 | $ | 30 | $ | 290,466 | $ | 290,496 | $ | 44 | $ | - | $ | - | $ | 44 | $ | 388,729 | $ | 388,773 | ||||||||||||||||||||||||
Land, land development and construction - real estate | 9 | - | - | 9 | 70,182 | 70,191 | - | - | - | - | 84,458 | 84,458 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 60 | - | 44 | 104 | 494,769 | 494,873 | 1,538 | - | - | 1,538 | 673,123 | 674,661 | ||||||||||||||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family | 1,559 | 802 | 5,130 | 7,491 | 659,742 | 667,233 | 1,608 | 194 | 4,882 | 6,684 | 833,760 | 840,444 | ||||||||||||||||||||||||||||||||||||
Resort lending | 713 | - | 1,223 | 1,936 | 88,620 | 90,556 | 252 | - | 755 | 1,007 | 80,774 | 81,781 | ||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 308 | 38 | 326 | 672 | 34,689 | 35,361 | 176 | - | 159 | 335 | 38,909 | 39,244 | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | 353 | 155 | 316 | 824 | 58,834 | 59,658 | 446 | 100 | 419 | 965 | 84,553 | 85,518 | ||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 90 | 11 | 141 | 242 | 9,213 | 9,455 | 200 | 55 | 197 | 452 | 6,985 | 7,437 | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | 217 | 94 | 159 | 470 | 9,001 | 9,471 | 111 | 24 | 226 | 361 | 6,683 | 7,044 | ||||||||||||||||||||||||||||||||||||
Boat lending | 59 | 36 | 100 | 195 | 129,777 | 129,972 | 316 | 295 | 166 | 777 | 169,117 | 169,894 | ||||||||||||||||||||||||||||||||||||
Recreational vehicle lending | 28 | 20 | 25 | 73 | 92,737 | 92,810 | 28 | 21 | 7 | 56 | 125,780 | 125,836 | ||||||||||||||||||||||||||||||||||||
Other | 275 | 115 | 118 | 508 | 74,734 | 75,242 | 241 | 131 | 204 | 576 | 85,392 | 85,968 | ||||||||||||||||||||||||||||||||||||
Total recorded investment | $ | 3,671 | $ | 1,271 | $ | 7,612 | $ | 12,554 | $ | 2,012,764 | $ | 2,025,318 | $ | 4,960 | $ | 820 | $ | 7,015 | $ | 12,795 | $ | 2,578,263 | $ | 2,591,058 | ||||||||||||||||||||||||
Accrued interest included in recorded investment | $ | 43 | $ | 22 | $ | - | $ | 65 | $ | 6,436 | $ | 6,501 | $ | 44 | $ | 11 | $ | - | $ | 55 | $ | 8,483 | $ | 8,538 |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||||
Impaired loans with no allocated allowance for loan losses | (In thousands) | (In thousands) | ||||||||||||||
TDR | $ | 347 | $ | 349 | ||||||||||||
Troubled debt restructurings (“TDR”) | $ | - | $ | - | ||||||||||||
Non - TDR | 2,402 | 175 | 1,144 | - | ||||||||||||
Impaired loans with an allocated allowance for loan losses | ||||||||||||||||
TDR - allowance based on collateral | 2,366 | 2,482 | 1,129 | 2,787 | ||||||||||||
TDR - allowance based on present value cash flow | 56,599 | 62,113 | 49,094 | 53,258 | ||||||||||||
Non - TDR - allowance based on collateral | 168 | 148 | 1,969 | 2,145 | ||||||||||||
Total impaired loans | $ | 61,882 | $ | 65,267 | $ | 53,336 | $ | 58,190 | ||||||||
Amount of allowance for loan losses allocated | ||||||||||||||||
TDR - allowance based on collateral | $ | 692 | $ | 684 | $ | 230 | $ | 769 | ||||||||
TDR - allowance based on present value cash flow | 5,335 | 6,089 | 4,865 | 4,849 | ||||||||||||
Non - TDR - allowance based on collateral | 75 | 66 | 683 | 692 | ||||||||||||
Total amount of allowance for loan losses allocated | $ | 6,102 | $ | 6,839 | $ | 5,778 | $ | 6,310 |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Unpaid Principal | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance For Loan Losses | Recorded Investment | Unpaid Principal Balance | Related Allowance For Loan Losses | |||||||||||||||||||||||||||||||||||||
With no related allowance for loan losses recorded: | (In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||||||
Land, land development & construction-real estate | 2,402 | 2,402 | - | - | - | - | 654 | 734 | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 347 | 347 | - | 524 | 549 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family | 2 | 447 | - | 2 | 469 | - | 490 | 774 | - | 3 | 474 | - | ||||||||||||||||||||||||||||||||||||
Resort lending | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | - | 34 | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1 | 90 | - | 1 | 69 | - | - | - | - | 1 | 122 | - | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | - | 15 | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Boat lending | - | 5 | - | - | - | - | - | 5 | - | - | 5 | - | ||||||||||||||||||||||||||||||||||||
Recreational vehicle lending | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Other | - | 16 | - | - | - | - | - | 24 | - | - | 15 | - | ||||||||||||||||||||||||||||||||||||
2,752 | 3,341 | - | 527 | 1,087 | - | 1,144 | 1,552 | - | 4 | 616 | - | |||||||||||||||||||||||||||||||||||||
With an allowance for loan losses recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||
Income producing - real estate | 4,829 | 4,808 | 307 | 5,195 | 5,347 | 347 | $ | 5,859 | $ | 5,837 | 619 | 4,770 | 4,758 | 303 | ||||||||||||||||||||||||||||||||||
Land, land development & construction-real estate | 152 | 152 | 4 | 166 | 194 | 9 | 113 | 113 | 25 | 290 | 289 | 35 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,984 | 2,133 | 416 | 2,535 | 2,651 | 481 | 1,150 | 1,244 | 227 | 3,637 | 3,735 | 967 | ||||||||||||||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family | 34,656 | 36,169 | 3,126 | 36,848 | 38,480 | 3,454 | 29,521 | 31,657 | 3,164 | 32,842 | 34,427 | 2,859 | ||||||||||||||||||||||||||||||||||||
Resort lending | 13,934 | 13,972 | 2,017 | 15,978 | 16,046 | 2,210 | 11,741 | 11,949 | 1,197 | 13,328 | 13,354 | 1,927 | ||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 66 | 65 | 3 | 173 | 236 | 43 | 190 | 219 | 49 | 65 | 64 | 4 | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | 157 | 156 | 9 | 178 | 213 | 18 | 648 | 657 | 200 | 156 | 155 | 9 | ||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1,520 | 1,640 | 97 | 1,667 | 1,804 | 108 | 1,219 | 1,395 | 77 | 1,440 | 1,524 | 89 | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | 1,626 | 1,644 | 93 | 1,793 | 1,805 | 140 | 1,406 | 1,417 | 116 | 1,471 | 1,491 | 92 | ||||||||||||||||||||||||||||||||||||
Boat lending | - | - | - | 1 | 5 | 1 | 140 | 177 | 37 | - | - | - | ||||||||||||||||||||||||||||||||||||
Recreational vehicle lending | 81 | 81 | 4 | 90 | 90 | 5 | 49 | 50 | 3 | 79 | 79 | 4 | ||||||||||||||||||||||||||||||||||||
Other | 402 | 428 | 26 | 393 | 418 | 23 | 409 | 477 | 64 | 379 | 406 | 21 | ||||||||||||||||||||||||||||||||||||
59,407 | 61,248 | 6,102 | 65,017 | 67,289 | 6,839 | 52,445 | 55,192 | 5,778 | 58,457 | 60,282 | 6,310 | |||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||
Income producing - real estate | 4,829 | 4,808 | 307 | 5,195 | 5,347 | 347 | 5,859 | 5,837 | 619 | 4,770 | 4,758 | 303 | ||||||||||||||||||||||||||||||||||||
Land, land development & construction-real estate | 2,554 | 2,554 | 4 | 166 | 194 | 9 | 767 | 847 | 25 | 290 | 289 | 35 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 2,331 | 2,480 | 416 | 3,059 | 3,200 | 481 | 1,150 | 1,244 | 227 | 3,637 | 3,735 | 967 | ||||||||||||||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||||||||||||||||||
1-4 family | 34,658 | 36,616 | 3,126 | 36,850 | 38,949 | 3,454 | 30,011 | 32,431 | 3,164 | 32,845 | 34,901 | 2,859 | ||||||||||||||||||||||||||||||||||||
Resort lending | 13,934 | 13,972 | 2,017 | 15,978 | 16,046 | 2,210 | 11,741 | 11,949 | 1,197 | 13,328 | 13,354 | 1,927 | ||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 66 | 65 | 3 | 173 | 236 | 43 | 190 | 219 | 49 | 65 | 64 | 4 | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | 157 | 190 | 9 | 178 | 213 | 18 | 648 | 657 | 200 | 156 | 155 | 9 | ||||||||||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1,521 | 1,730 | 97 | 1,668 | 1,873 | 108 | 1,219 | 1,395 | 77 | 1,441 | 1,646 | 89 | ||||||||||||||||||||||||||||||||||||
Home equity - 2nd lien | 1,626 | 1,644 | 93 | 1,793 | 1,805 | 140 | 1,406 | 1,432 | 116 | 1,471 | 1,491 | 92 | ||||||||||||||||||||||||||||||||||||
Boat lending | - | 5 | - | 1 | 5 | 1 | 140 | 182 | 37 | - | 5 | - | ||||||||||||||||||||||||||||||||||||
Recreational vehicle lending | 81 | 81 | 4 | 90 | 90 | 5 | 49 | 50 | 3 | 79 | 79 | 4 | ||||||||||||||||||||||||||||||||||||
Other | 402 | 444 | 26 | 393 | 418 | 23 | 409 | 501 | 64 | 379 | 421 | 21 | ||||||||||||||||||||||||||||||||||||
Total | $ | 62,159 | $ | 64,589 | $ | 6,102 | $ | 65,544 | $ | 68,376 | $ | 6,839 | $ | 53,589 | $ | 56,744 | $ | 5,778 | $ | 58,461 | $ | 60,898 | $ | 6,310 | ||||||||||||||||||||||||
Accrued interest included in recorded investment | $ | 277 | $ | 277 | $ | 253 | $ | 271 |
2018 | 2017 | 2019 | 2018 | |||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||
With no related allowance for loan losses recorded: | (In thousands) | (In thousands) | ||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Land, land development & construction-real estate | 2,402 | - | - | - | 327 | 5 | 2,402 | - | ||||||||||||||||||||||||
Commercial and industrial | 425 | 7 | 445 | 8 | - | - | 425 | 7 | ||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 121 | 9 | 127 | 7 | 552 | 7 | 121 | 9 | ||||||||||||||||||||||||
Resort lending | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1 | 1 | 1 | 1 | - | - | 1 | 1 | ||||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Boat lending | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Recreational vehicle lending | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Other | - | - | - | 1 | - | 1 | - | - | ||||||||||||||||||||||||
2,949 | 17 | 573 | 17 | 879 | 13 | 2,949 | 17 | |||||||||||||||||||||||||
With an allowance for loan losses recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Income producing - real estate | 4,968 | 64 | 7,311 | 91 | 5,867 | 68 | 4,968 | 64 | ||||||||||||||||||||||||
Land, land development & construction-real estate | 153 | 3 | 171 | 2 | 202 | 3 | 153 | 3 | ||||||||||||||||||||||||
Commercial and industrial | 2,264 | 24 | 2,878 | 26 | 1,534 | 16 | 2,264 | 24 | ||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 34,731 | 458 | 38,533 | 462 | 29,966 | 420 | 34,731 | 458 | ||||||||||||||||||||||||
Resort lending | 14,276 | 161 | 16,175 | 153 | 12,067 | 171 | 14,276 | 161 | ||||||||||||||||||||||||
Home equity - 1st lien | 67 | 1 | 201 | 1 | 158 | 1 | 67 | 1 | ||||||||||||||||||||||||
Home equity - 2nd lien | 157 | 2 | 180 | 2 | 601 | 8 | 157 | 2 | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1,545 | 27 | 1,808 | 40 | 1,242 | 27 | 1,545 | 27 | ||||||||||||||||||||||||
Home equity - 2nd lien | 1,679 | 24 | 2,058 | 26 | 1,420 | 20 | 1,679 | 24 | ||||||||||||||||||||||||
Boat lending | 1 | - | 1 | - | 86 | 2 | 1 | - | ||||||||||||||||||||||||
Recreational vehicle lending | 83 | 1 | 98 | 1 | 50 | 1 | 83 | 1 | ||||||||||||||||||||||||
Other | 406 | 5 | 361 | 6 | 443 | 3 | 406 | 5 | ||||||||||||||||||||||||
60,330 | 770 | 69,775 | 810 | 53,636 | 740 | 60,330 | 770 | |||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Income producing - real estate | 4,968 | 64 | 7,311 | 91 | 5,867 | 68 | 4,968 | 64 | ||||||||||||||||||||||||
Land, land development & construction-real estate | 2,555 | 3 | 171 | 2 | 529 | 8 | 2,555 | 3 | ||||||||||||||||||||||||
Commercial and industrial | 2,689 | 31 | 3,323 | 34 | 1,534 | 16 | 2,689 | 31 | ||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 34,852 | 467 | 38,660 | 469 | 30,518 | 427 | 34,852 | 467 | ||||||||||||||||||||||||
Resort lending | 14,276 | 161 | 16,175 | 153 | 12,067 | 171 | 14,276 | 161 | ||||||||||||||||||||||||
Home equity - 1st lien | 67 | 1 | 201 | 1 | 158 | 1 | 67 | 1 | ||||||||||||||||||||||||
Home equity - 2nd lien | 157 | 2 | 180 | 2 | 601 | 8 | 157 | 2 | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1,546 | 28 | 1,809 | 41 | 1,242 | 27 | 1,546 | 28 | ||||||||||||||||||||||||
Home equity - 2nd lien | 1,679 | 24 | 2,058 | 26 | 1,420 | 20 | 1,679 | 24 | ||||||||||||||||||||||||
Boat lending | 1 | - | 1 | - | 86 | 2 | 1 | - | ||||||||||||||||||||||||
Recreational vehicle lending | 83 | 1 | 98 | 1 | 50 | 1 | 83 | 1 | ||||||||||||||||||||||||
Other | 406 | 5 | 361 | 7 | 443 | 4 | 406 | 5 | ||||||||||||||||||||||||
Total | $ | 63,279 | $ | 787 | $ | 70,348 | $ | 827 | $ | 54,515 | $ | 753 | $ | 63,279 | $ | 787 |
2018 | 2017 | 2019 | 2018 | |||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||
With no related allowance for loan losses recorded: | (In thousands) | (In thousands) | ||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | - | $ | 222 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Land, land development & construction-real estate | 1,201 | - | 8 | - | 164 | 5 | 1,201 | - | ||||||||||||||||||||||||
Commercial and industrial | 472 | 20 | 808 | 16 | - | - | 472 | 20 | ||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 70 | 18 | 64 | 16 | 365 | 9 | 70 | 18 | ||||||||||||||||||||||||
Resort lending | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1 | 5 | 1 | 4 | - | - | 1 | 5 | ||||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Boat lending | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Recreational vehicle lending | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Other | - | 1 | - | 1 | - | 1 | - | 1 | ||||||||||||||||||||||||
1,744 | 44 | 1,103 | 37 | 529 | 15 | 1,744 | 44 | |||||||||||||||||||||||||
With an allowance for loan losses recorded: | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Income producing - real estate | 5,077 | 202 | 7,525 | 300 | 5,306 | 214 | 5,077 | 202 | ||||||||||||||||||||||||
Land, land development & construction-real estate | 157 | 7 | 187 | 6 | 246 | 7 | 157 | 7 | ||||||||||||||||||||||||
Commercial and industrial | 2,391 | 90 | 3,488 | 98 | 2,406 | 52 | 2,391 | 90 | ||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 35,549 | 1,347 | 39,716 | 1,420 | 31,273 | 1,280 | 35,549 | 1,347 | ||||||||||||||||||||||||
Resort lending | 15,027 | 475 | 16,485 | 464 | 12,607 | 493 | 15,027 | 475 | ||||||||||||||||||||||||
Home equity - 1st lien | 115 | 4 | 218 | 5 | 125 | 4 | 115 | 4 | ||||||||||||||||||||||||
Home equity - 2nd lien | 167 | 5 | 217 | 5 | 479 | 14 | 167 | 5 | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1,595 | 81 | 1,874 | 107 | 1,328 | 70 | 1,595 | 81 | ||||||||||||||||||||||||
Home equity - 2nd lien | 1,728 | 76 | 2,210 | 96 | 1,446 | 61 | 1,728 | 76 | ||||||||||||||||||||||||
Boat lending | 1 | - | 1 | - | 68 | 2 | 1 | - | ||||||||||||||||||||||||
Recreational vehicle lending | 86 | 3 | 103 | 4 | 65 | 2 | 86 | 3 | ||||||||||||||||||||||||
Other | 406 | 18 | 373 | 19 | 437 | 14 | 406 | 18 | ||||||||||||||||||||||||
62,299 | 2,308 | 72,397 | 2,524 | 55,786 | 2,213 | 62,299 | 2,308 | |||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Income producing - real estate | 5,077 | 202 | 7,747 | 300 | 5,306 | 214 | 5,077 | 202 | ||||||||||||||||||||||||
Land, land development & construction-real estate | 1,358 | 7 | 195 | 6 | 410 | 12 | 1,358 | 7 | ||||||||||||||||||||||||
Commercial and industrial | 2,863 | 110 | 4,296 | 114 | 2,406 | 52 | 2,863 | 110 | ||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 35,619 | 1,365 | 39,780 | 1,436 | 31,638 | 1,289 | 35,619 | 1,365 | ||||||||||||||||||||||||
Resort lending | 15,027 | 475 | 16,485 | 464 | 12,607 | 493 | 15,027 | 475 | ||||||||||||||||||||||||
Home equity - 1st lien | 115 | 4 | 218 | 5 | 125 | 4 | 115 | 4 | ||||||||||||||||||||||||
Home equity - 2nd lien | 167 | 5 | 217 | 5 | 479 | 14 | 167 | 5 | ||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||
Home equity - 1st lien | 1,596 | 86 | 1,875 | 111 | 1,328 | 70 | 1,596 | 86 | ||||||||||||||||||||||||
Home equity - 2nd lien | 1,728 | 76 | 2,210 | 96 | 1,446 | 61 | 1,728 | 76 | ||||||||||||||||||||||||
Boat lending | 1 | - | 1 | - | 68 | 2 | 1 | - | ||||||||||||||||||||||||
Recreational vehicle lending | 86 | 3 | 103 | 4 | 65 | 2 | 86 | 3 | ||||||||||||||||||||||||
Other | 406 | 19 | 373 | 20 | 437 | 15 | 406 | 19 | ||||||||||||||||||||||||
Total | $ | 64,043 | $ | 2,352 | $ | 73,500 | $ | 2,561 | $ | 56,315 | $ | 2,228 | $ | 64,043 | $ | 2,352 |
September 30, 2018 | ||||||||||||
Commercial | Retail (1) | Total | ||||||||||
(In thousands) | ||||||||||||
Performing TDRs | $ | 6,904 | $ | 49,397 | $ | 56,301 | ||||||
Non-performing TDRs(2) | 212 | 2,799 | (3) | 3,011 | ||||||||
Total | $ | 7,116 | $ | 52,196 | $ | 59,312 |
December 31, 2017 | September 30, 2019 | |||||||||||||||||||||||
Commercial | Retail (1) | Total | Commercial | Retail (1) | Total | |||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||
Performing TDRs | $ | 7,748 | $ | 52,367 | $ | 60,115 | $ | 6,947 | $ | 40,873 | $ | 47,820 | ||||||||||||
Non-performing TDRs(2) | 323 | 4,506 | (3) | 4,829 | 46 | 2,357 | (3) | 2,403 | ||||||||||||||||
Total | $ | 8,071 | $ | 56,873 | $ | 64,944 | $ | 6,993 | $ | 43,230 | $ | 50,223 | ||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Commercial | Retail (1) | Total | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Performing TDRs | $ | 6,460 | $ | 46,627 | $ | 53,087 | ||||||||||||||||||
Non-performing TDRs(2) | 74 | 2,884 | (3) | 2,958 | ||||||||||||||||||||
Total | $ | 6,534 | $ | 49,511 | $ | 56,045 |
(1) | Retail loans include mortgage and installment |
(2) | Included in non-performing loans table above. |
(3) | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
Number of Contracts | Pre-modification Recorded Balance | Post-modification Recorded Balance | Number of Contracts | Pre-modification Recorded Balance | Post-modification Recorded Balance | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Income producing - real estate | - | $ | - | $ | - | |||||||||||||||||||
Land, land development & construction-real estate | - | - | - | |||||||||||||||||||||
Commercial and industrial | 2 | 137 | 137 | |||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||
1-4 family | 1 | 198 | 202 | |||||||||||||||||||||
Resort lending | - | - | - | |||||||||||||||||||||
Home equity - 1st lien | - | - | - | |||||||||||||||||||||
Home equity - 2nd lien | 3 | 75 | 75 | |||||||||||||||||||||
Installment | ||||||||||||||||||||||||
Home equity - 1st lien | 1 | 28 | 28 | |||||||||||||||||||||
Home equity - 2nd lien | - | - | - | |||||||||||||||||||||
Boat lending | - | - | - | |||||||||||||||||||||
Recreational vehicle lending | - | - | - | |||||||||||||||||||||
Other | - | - | - | |||||||||||||||||||||
Total | 7 | $ | 438 | $ | 442 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Income producing - real estate | - | $ | - | $ | - | - | $ | - | $ | - | ||||||||||||||
Land, land development & construction-real estate | - | - | - | - | - | - | ||||||||||||||||||
Commercial and industrial | 1 | 24 | 24 | 1 | 24 | 24 | ||||||||||||||||||
Mortgage | ||||||||||||||||||||||||
1-4 family | 3 | 609 | 609 | 3 | 609 | 609 | ||||||||||||||||||
Resort lending | 1 | 115 | 114 | 1 | 115 | 114 | ||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | ||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | ||||||||||||||||||
Installment | ||||||||||||||||||||||||
Home equity - 1st lien | 1 | 15 | 15 | 1 | 15 | 15 | ||||||||||||||||||
Home equity - 2nd lien | 1 | 20 | 21 | 1 | 20 | 21 | ||||||||||||||||||
Boat lending | - | - | - | - | - | - | ||||||||||||||||||
Recreational vehicle lending | - | - | - | - | - | - | ||||||||||||||||||
Other | - | - | - | - | - | - | ||||||||||||||||||
Total | 7 | $ | 783 | $ | 783 | 7 | $ | 783 | $ | 783 | ||||||||||||||
2017 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Income producing - real estate | - | $ | - | $ | - | |||||||||||||||||||
Land, land development & construction-real estate | - | - | - | |||||||||||||||||||||
Commercial and industrial | - | - | - | |||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||
1-4 family | 1 | 93 | 95 | |||||||||||||||||||||
Resort lending | - | - | - | |||||||||||||||||||||
Home equity - 1st lien | - | - | - | |||||||||||||||||||||
Home equity - 2nd lien | - | - | - | |||||||||||||||||||||
Installment | ||||||||||||||||||||||||
Home equity - 1st lien | - | - | - | |||||||||||||||||||||
Home equity - 2nd lien | 2 | 51 | 50 | |||||||||||||||||||||
Boat lending | - | - | - | |||||||||||||||||||||
Recreational vehicle lending | - | - | - | |||||||||||||||||||||
Other | 1 | 10 | 10 | |||||||||||||||||||||
Total | 4 | $ | 154 | $ | 155 |
Number of Contracts | Pre-modification Recorded Balance | Post-modification Recorded Balance | Number of Contracts | Pre-modification Recorded Balance | Post-modification Recorded Balance | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Income producing - real estate | 2 | $ | 1,329 | $ | 1,329 | |||||||||||||||||||
Land, land development & construction-real estate | - | - | - | |||||||||||||||||||||
Commercial and industrial | 3 | 186 | 186 | |||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||
1-4 family | 3 | 985 | 988 | |||||||||||||||||||||
Resort lending | - | - | - | |||||||||||||||||||||
Home equity - 1st lien | - | - | - | |||||||||||||||||||||
Home equity - 2nd lien | 3 | 75 | 75 | |||||||||||||||||||||
Installment | ||||||||||||||||||||||||
Home equity - 1st lien | 3 | 77 | 79 | |||||||||||||||||||||
Home equity - 2nd lien | 4 | 111 | 112 | |||||||||||||||||||||
Boat lending | - | - | - | |||||||||||||||||||||
Recreational vehicle lending | - | - | - | |||||||||||||||||||||
Other | - | - | - | |||||||||||||||||||||
Total | 18 | $ | 2,763 | $ | 2,769 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Income producing - real estate | 1 | $ | 67 | $ | 67 | 1 | $ | 67 | $ | 67 | ||||||||||||||
Land, land development & construction-real estate | - | - | - | - | - | - | ||||||||||||||||||
Commercial and industrial | 6 | 611 | 611 | 6 | 611 | 611 | ||||||||||||||||||
Mortgage | ||||||||||||||||||||||||
1-4 family | 7 | 903 | 889 | 7 | 903 | 889 | ||||||||||||||||||
Resort lending | 1 | 115 | 114 | 1 | 115 | 114 | ||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | ||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | ||||||||||||||||||
Installment | ||||||||||||||||||||||||
Home equity - 1st lien | 6 | 203 | 205 | 6 | 203 | 205 | ||||||||||||||||||
Home equity - 2nd lien | 3 | 113 | 114 | 3 | 113 | 114 | ||||||||||||||||||
Boat lending | - | - | - | - | - | - | ||||||||||||||||||
Recreational vehicle lending | - | - | - | - | - | - | ||||||||||||||||||
Other | 2 | 76 | 73 | 2 | 76 | 73 | ||||||||||||||||||
Total | 26 | $ | 2,088 | $ | 2,073 | 26 | $ | 2,088 | $ | 2,073 | ||||||||||||||
2017 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||
Income producing - real estate | - | $ | - | $ | - | |||||||||||||||||||
Land, land development & construction-real estate | - | - | - | |||||||||||||||||||||
Commercial and industrial | 12 | 786 | 786 | |||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||
1-4 family | 3 | 142 | 144 | |||||||||||||||||||||
Resort lending | 1 | 189 | 189 | |||||||||||||||||||||
Home equity - 1st lien | - | - | - | |||||||||||||||||||||
Home equity - 2nd lien | - | - | - | |||||||||||||||||||||
Installment | ||||||||||||||||||||||||
Home equity - 1st lien | 2 | 34 | 37 | |||||||||||||||||||||
Home equity - 2nd lien | 7 | 300 | 301 | |||||||||||||||||||||
Boat lending | - | - | - | |||||||||||||||||||||
Recreational vehicle lending | - | - | - | |||||||||||||||||||||
Other | 1 | 10 | 10 | |||||||||||||||||||||
Total | 26 | $ | 1,461 | $ | 1,467 |
Commercial | Commercial | |||||||||||||||||||||||||||||||||||||||
Non-watch 1-6 | Watch 7-8 | Substandard Accrual | Non- Accrual10-11 | Total | Non-watch 1-6 | Watch 7-8 | Substandard Accrual 9 | Non- Accrual 10-11 | Total | |||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Income producing - real estate | $ | 374,965 | $ | 3,060 | $ | 208 | $ | - | $ | 378,233 | $ | 408,132 | $ | 15,619 | $ | 765 | $ | - | $ | 424,516 | ||||||||||||||||||||
Land, land development and construction - real estate | 55,126 | 6,623 | 11 | 2,402 | 64,162 | 93,563 | 8,010 | - | 654 | 102,227 | ||||||||||||||||||||||||||||||
Commercial and industrial | 634,763 | 27,174 | 10,515 | 380 | 672,832 | 604,311 | 59,425 | 1,456 | 87 | 665,279 | ||||||||||||||||||||||||||||||
Total | $ | 1,064,854 | $ | 36,857 | $ | 10,734 | $ | 2,782 | $ | 1,115,227 | $ | 1,106,006 | $ | 83,054 | $ | 2,221 | $ | 741 | $ | 1,192,022 | ||||||||||||||||||||
Accrued interest included in total | $ | 2,869 | $ | 146 | $ | 111 | $ | - | $ | 3,126 | $ | 2,713 | $ | 284 | $ | 8 | $ | - | $ | 3,005 | ||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
Income producing - real estate | $ | 288,869 | $ | 1,293 | $ | 304 | $ | 30 | $ | 290,496 | $ | 375,142 | $ | 13,387 | $ | 200 | $ | 44 | $ | 388,773 | ||||||||||||||||||||
Land, land development and construction - real estate | 70,122 | 60 | - | 9 | 70,191 | 76,120 | 8,328 | - | 10 | 84,458 | ||||||||||||||||||||||||||||||
Commercial and industrial | 463,570 | 28,351 | 2,345 | 607 | 494,873 | 631,345 | 35,469 | 5,577 | 2,270 | 674,661 | ||||||||||||||||||||||||||||||
Total | $ | 822,561 | $ | 29,704 | $ | 2,649 | $ | 646 | $ | 855,560 | $ | 1,082,607 | $ | 57,184 | $ | 5,777 | $ | 2,324 | $ | 1,147,892 | ||||||||||||||||||||
Accrued interest included in total | $ | 2,198 | $ | 94 | $ | 8 | $ | - | $ | 2,300 | $ | 3,107 | $ | 174 | $ | 130 | $ | - | $ | 3,411 |
Mortgage (1) | Mortgage (1) | ||||||||||||||||||||||||||||||||||||||||
1-4 Family | Resort Lending | Home Equity | Home Equity | Total | 1-4 Family | Resort Lending | Home Equity 1st Lien | Home Equity 2nd Lien | Total | ||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
800 and above | $ | 110,400 | $ | 12,423 | $ | 7,872 | $ | 12,318 | $ | 143,013 | $ | 101,927 | $ | 11,151 | $ | 6,165 | $ | 12,177 | $ | 131,420 | |||||||||||||||||||||
750-799 | 358,072 | 32,498 | 15,037 | 30,573 | 436,180 | 385,243 | 31,372 | 16,300 | 52,564 | 485,479 | |||||||||||||||||||||||||||||||
700-749 | 211,575 | 21,239 | 9,562 | 21,561 | 263,937 | 204,241 | 15,323 | 9,209 | 32,897 | 261,670 | |||||||||||||||||||||||||||||||
650-699 | 104,395 | 9,271 | 3,222 | 9,539 | 126,427 | 84,458 | 7,612 | 3,747 | 13,168 | 108,985 | |||||||||||||||||||||||||||||||
600-649 | 30,578 | 4,142 | 569 | 2,884 | 38,173 | 30,819 | 2,241 | 668 | 4,196 | 37,924 | |||||||||||||||||||||||||||||||
550-599 | 13,491 | 1,220 | 503 | 1,261 | 16,475 | 16,410 | 1,171 | 663 | 1,881 | 20,125 | |||||||||||||||||||||||||||||||
500-549 | 7,641 | 822 | 228 | 1,205 | 9,896 | 10,972 | 620 | 330 | 1,072 | 12,994 | |||||||||||||||||||||||||||||||
Under 500 | 1,702 | 84 | 86 | 190 | 2,062 | 3,718 | 80 | 254 | 372 | 4,424 | |||||||||||||||||||||||||||||||
Unknown | 13,907 | 3,108 | 3,653 | 3,817 | 24,485 | 9,300 | 1,256 | - | 758 | 11,314 | |||||||||||||||||||||||||||||||
Total | $ | 851,761 | $ | 84,807 | $ | 40,732 | $ | 83,348 | $ | 1,060,648 | $ | 847,088 | $ | 70,826 | $ | 37,336 | $ | 119,085 | $ | 1,074,335 | |||||||||||||||||||||
Accrued interest included in total | $ | 3,161 | $ | 360 | $ | 206 | $ | 439 | $ | 4,166 | $ | 3,327 | $ | 343 | $ | 166 | $ | 464 | $ | 4,300 | |||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
800 and above | $ | 78,523 | $ | 11,625 | $ | 6,169 | $ | 7,842 | $ | 104,159 | $ | 94,492 | $ | 10,898 | $ | 6,784 | $ | 8,838 | $ | 121,012 | |||||||||||||||||||||
750-799 | 283,558 | 36,015 | 16,561 | 24,126 | 360,260 | 384,344 | 36,542 | 17,303 | 38,295 | 476,484 | |||||||||||||||||||||||||||||||
700-749 | 154,239 | 22,099 | 7,317 | 15,012 | 198,667 | 202,440 | 17,282 | 9,155 | 23,249 | 252,126 | |||||||||||||||||||||||||||||||
650-699 | 84,121 | 12,145 | 2,793 | 7,420 | 106,479 | 91,847 | 9,945 | 3,987 | 8,681 | 114,460 | |||||||||||||||||||||||||||||||
600-649 | 25,087 | 3,025 | 1,189 | 2,512 | 31,813 | 34,342 | 3,088 | 959 | 3,359 | 41,748 | |||||||||||||||||||||||||||||||
550-599 | 15,136 | 2,710 | 518 | 1,118 | 19,482 | 13,771 | 1,867 | 427 | 1,236 | 17,301 | |||||||||||||||||||||||||||||||
500-549 | 9,548 | 1,009 | 397 | 1,156 | 12,110 | 8,439 | 106 | 418 | 826 | 9,789 | |||||||||||||||||||||||||||||||
Under 500 | 2,549 | 269 | 260 | 385 | 3,463 | 2,533 | 143 | 98 | 381 | 3,155 | |||||||||||||||||||||||||||||||
Unknown | 14,472 | 1,659 | 157 | 87 | 16,375 | 8,236 | 1,910 | 113 | 653 | 10,912 | |||||||||||||||||||||||||||||||
Total | $ | 667,233 | $ | 90,556 | $ | 35,361 | $ | 59,658 | $ | 852,808 | $ | 840,444 | $ | 81,781 | $ | 39,244 | $ | 85,518 | $ | 1,046,987 | |||||||||||||||||||||
Accrued interest included in total | $ | 2,456 | $ | 371 | $ | 157 | $ | 294 | $ | 3,278 | $ | 3,079 | $ | 363 | $ | 199 | $ | 456 | $ | 4,097 |
(1) | Credit scores have been updated within the last twelve months. |
Installment(1) | Installment(1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Home Equity | Home Equity | Boat Lending | Recreational Vehicle | Other | Total | Home Equity 1st Lien | Home Equity 2nd Lien | Boat Lending | Recreational Vehicle Lending | Other | Total | ||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
800 and above | $ | 651 | $ | 264 | $ | 25,231 | $ | 22,621 | $ | 6,223 | $ | 54,990 | $ | 380 | $ | 219 | $ | 29,581 | $ | 24,296 | $ | 7,140 | $ | 61,616 | |||||||||||||||||||||||||
750-799 | 1,899 | 1,519 | 95,664 | 72,298 | 32,094 | 203,474 | 1,104 | 1,265 | 120,085 | 90,692 | 35,671 | 248,817 | |||||||||||||||||||||||||||||||||||||
700-749 | 1,471 | 1,806 | 36,743 | 22,996 | 23,917 | 86,933 | 1,323 | 1,123 | 42,869 | 29,990 | 25,052 | 100,357 | |||||||||||||||||||||||||||||||||||||
650-699 | 1,608 | 1,627 | 8,760 | 4,093 | 10,002 | 26,090 | 1,399 | 1,104 | 10,536 | 5,560 | 10,324 | 28,923 | |||||||||||||||||||||||||||||||||||||
600-649 | 1,174 | 1,065 | 2,064 | 778 | 2,504 | 7,585 | 934 | 678 | 1,783 | 1,692 | 2,762 | 7,849 | |||||||||||||||||||||||||||||||||||||
550-599 | 1,065 | 850 | 410 | 334 | 961 | 3,620 | 526 | 457 | 808 | 617 | 735 | 3,143 | |||||||||||||||||||||||||||||||||||||
500-549 | 305 | 132 | 340 | 76 | 433 | 1,286 | 299 | 208 | 455 | 145 | 748 | 1,855 | |||||||||||||||||||||||||||||||||||||
Under 500 | 87 | 172 | 43 | 21 | 152 | 475 | 18 | 50 | 223 | 39 | 156 | 486 | |||||||||||||||||||||||||||||||||||||
Unknown | 32 | 145 | 903 | 66 | 9,479 | 10,625 | - | 15 | - | - | 11,464 | 11,479 | |||||||||||||||||||||||||||||||||||||
Total | $ | 8,292 | $ | 7,580 | $ | 170,158 | $ | 123,283 | $ | 85,765 | $ | 395,078 | $ | 5,983 | $ | 5,119 | $ | 206,340 | $ | 153,031 | $ | 94,052 | $ | 464,525 | |||||||||||||||||||||||||
Accrued interest included in total | $ | 33 | $ | 27 | $ | 431 | $ | 319 | $ | 273 | $ | 1,083 | $ | 21 | $ | 16 | $ | 467 | $ | 350 | $ | 277 | $ | 1,131 | |||||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
800 and above | $ | 815 | $ | 825 | $ | 15,531 | $ | 16,754 | $ | 7,060 | $ | 40,985 | $ | 555 | $ | 235 | $ | 20,767 | $ | 20,197 | $ | 6,272 | $ | 48,026 | |||||||||||||||||||||||||
750-799 | 1,912 | 1,952 | 73,251 | 52,610 | 28,422 | 158,147 | 1,502 | 1,642 | 100,191 | 74,154 | 31,483 | 208,972 | |||||||||||||||||||||||||||||||||||||
700-749 | 1,825 | 2,142 | 28,922 | 17,993 | 20,059 | 70,941 | 1,582 | 1,682 | 35,455 | 24,890 | 24,369 | 87,978 | |||||||||||||||||||||||||||||||||||||
650-699 | 1,840 | 2,036 | 9,179 | 4,270 | 9,258 | 26,583 | 1,606 | 1,217 | 10,581 | 4,918 | 9,840 | 28,162 | |||||||||||||||||||||||||||||||||||||
600-649 | 1,567 | 1,065 | 2,052 | 754 | 2,402 | 7,840 | 996 | 1,272 | 1,657 | 992 | 2,751 | 7,668 | |||||||||||||||||||||||||||||||||||||
550-599 | 950 | 1,028 | 640 | 305 | 871 | 3,794 | 759 | 658 | 652 | 453 | 838 | 3,360 | |||||||||||||||||||||||||||||||||||||
500-549 | 499 | 303 | 281 | 83 | 475 | 1,641 | 384 | 229 | 286 | 225 | 651 | 1,775 | |||||||||||||||||||||||||||||||||||||
Under 500 | 32 | 88 | 57 | 6 | 194 | 377 | 51 | 6 | 266 | 7 | 218 | 548 | |||||||||||||||||||||||||||||||||||||
Unknown | 15 | 32 | 59 | 35 | 6,501 | 6,642 | 2 | 103 | 39 | - | 9,546 | 9,690 | |||||||||||||||||||||||||||||||||||||
Total | $ | 9,455 | $ | 9,471 | $ | 129,972 | $ | 92,810 | $ | 75,242 | $ | 316,950 | $ | 7,437 | $ | 7,044 | $ | 169,894 | $ | 125,836 | $ | 85,968 | $ | 396,179 | |||||||||||||||||||||||||
Accrued interest included in total | $ | 39 | $ | 43 | $ | 346 | $ | 254 | $ | 241 | $ | 923 | $ | 28 | $ | 25 | $ | 403 | $ | 311 | $ | 263 | $ | 1,030 |
(1) | Credit scores have been updated within the last twelve months. |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Commercial | $ | 1,653 | $ | - | $ | 1,421 | $ | 1,609 | ||||||||
Mortgage | 557 | - | 582 | 555 | ||||||||||||
Installment | 355 | - | 329 | 349 | ||||||||||||
Total carrying amount | 2,565 | - | 2,332 | 2,513 | ||||||||||||
Allowance for loan losses | - | - | - | - | ||||||||||||
Carrying amount, net of allowance for loan losses | $ | 2,565 | $ | - | $ | 2,332 | $ | 2,513 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Balance at beginning of period | $ | 533 | $ | - | $ | - | $ | - | ||||||||
New loans purchased | - | - | 568 | - | ||||||||||||
Accretion of income | (32 | ) | - | (67 | ) | - | ||||||||||
Reclassification from (to) nonaccretable difference | - | - | - | - | ||||||||||||
Displosals/other adjustments | - | - | - | - | ||||||||||||
Balance at end of period | $ | 501 | $ | - | $ | 501 | $ | - |
(In thousands) | ||||
Contractually required payments | $ | 4,213 | ||
Non accretable difference | (742 | ) | ||
Cash flows expected to be collected at acquisition | 3,471 | |||
Accretable yield | (568 | ) | ||
Fair value of acquired loans at acquisition | $ | 2,903 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Balance at beginning of period | $ | 749 | $ | 533 | $ | 462 | $ | - | ||||||||
New loans purchased | - | - | - | 568 | ||||||||||||
Accretion recorded as loan interest income | (56 | ) | (32 | ) | (134 | ) | (67 | ) | ||||||||
Reclassification from (to) nonaccretable difference | - | - | 365 | - | ||||||||||||
Displosals/other adjustments | - | - | - | - | ||||||||||||
Balance at end of period | $ | 693 | $ | 501 | $ | 693 | $ | 501 |
5. | Shareholders’ Equity and Earnings Per Common Share |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||||||||||
Net income | $ | 11,925 | $ | 6,859 | $ | 29,903 | $ | 18,764 | $ | 12,445 | $ | 11,925 | $ | 32,556 | $ | 29,903 | ||||||||||||||||
Weighted average shares outstanding (1) | 24,149 | 21,334 | 23,218 | 21,325 | 22,486 | 24,149 | 23,033 | 23,218 | ||||||||||||||||||||||||
Stock units for deferred compensation plan for non-employee directors | 132 | 129 | 131 | 126 | ||||||||||||||||||||||||||||
Effect of stock options | 182 | 138 | 180 | 144 | 110 | 182 | 116 | 180 | ||||||||||||||||||||||||
Stock units for deferred compensation plan for non-employee directors | 129 | 121 | 126 | 120 | ||||||||||||||||||||||||||||
Performance share units | 55 | 59 | 52 | 57 | 42 | 55 | 39 | 52 | ||||||||||||||||||||||||
Weighted average shares outstanding for calculation of diluted earnings per share | 24,515 | 21,652 | 23,576 | 21,646 | 22,770 | 24,515 | 23,319 | 23,576 | ||||||||||||||||||||||||
Net income per common share | ||||||||||||||||||||||||||||||||
Basic (1) | $ | 0.49 | $ | 0.32 | $ | 1.29 | $ | 0.88 | $ | 0.55 | $ | 0.49 | $ | 1.41 | $ | 1.29 | ||||||||||||||||
Diluted | $ | 0.49 | $ | 0.32 | $ | 1.27 | $ | 0.87 | $ | 0.55 | $ | 0.49 | $ | 1.40 | $ | 1.27 |
(1) | Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
6. | Derivative Financial Instruments |
September 30, 2018 | September 30, 2019 | |||||||||||||||||||||||
Notional Amount | Average Maturity (years) | Fair Value | Notional Amount | Average Maturity (years) | Fair Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Fair value hedge designation - Pay-fixed interest rate swap agreements | $ | 7,117 | 9.6 | $ | (391 | ) | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Cash flow hedge designation | ||||||||||||||||||||||||
Pay-fixed interest rate swap agreements | $ | 25,000 | 2.8 | $ | 581 | $ | 25,000 | 1.8 | $ | (220 | ) | |||||||||||||
Interest rate cap agreements | 130,000 | 3.6 | 3,391 | 150,000 | 2.8 | 318 | ||||||||||||||||||
$ | 155,000 | 3.5 | $ | 3,972 | ||||||||||||||||||||
Total | $ | 175,000 | 2.7 | $ | 98 | |||||||||||||||||||
No hedge designation | ||||||||||||||||||||||||
Rate-lock mortgage loan commitments | $ | 44,609 | 0.1 | $ | 884 | $ | 79,446 | 0.1 | $ | 2,051 | ||||||||||||||
Mandatory commitments to sell mortgage loans | 65,633 | 0.1 | 182 | 137,315 | 0.1 | (27 | ) | |||||||||||||||||
Pay-fixed interest rate swap agreements - commercial | 88,657 | 5.7 | 2,242 | 141,427 | 5.4 | (4,849 | ) | |||||||||||||||||
Pay-variable interest rate swap agreements - commercial | 88,657 | 5.7 | (2,242 | ) | 141,427 | 5.4 | 4,849 | |||||||||||||||||
Purchased options | 3,119 | 2.8 | 178 | 3,088 | 1.8 | 125 | ||||||||||||||||||
Written options | 3,119 | 2.8 | (178 | ) | 3,028 | 1.8 | (124 | ) | ||||||||||||||||
Total | $ | 293,794 | 3.5 | $ | 1,066 | $ | 505,731 | 3.1 | $ | 2,025 |
December 31, 2017 | ||||||||||||||||||||||||
Notional Amount | Average Maturity (years) | Fair Value | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||
Cash flow hedge designation | ||||||||||||||||||||||||
Pay-fixed interest rate swap agreements | $ | 15,000 | 3.7 | $ | 245 | $ | 25,000 | 2.6 | $ | 280 | ||||||||||||||
Interest rate cap agreements | 45,000 | 3.5 | 976 | 150,000 | 3.6 | 2,245 | ||||||||||||||||||
$ | 60,000 | 3.6 | $ | 1,221 | ||||||||||||||||||||
Total | $ | 175,000 | 3.5 | $ | 2,525 | |||||||||||||||||||
No hedge designation | ||||||||||||||||||||||||
Rate-lock mortgage loan commitments | $ | 25,032 | 0.1 | $ | 530 | $ | 32,473 | 0.1 | $ | 687 | ||||||||||||||
Mandatory commitments to sell mortgage loans | 56,127 | 0.1 | 37 | 57,583 | 0.1 | (383 | ) | |||||||||||||||||
Pay-fixed interest rate swap agreements - commercial | 75,990 | 6.2 | 292 | 94,451 | 5.5 | 405 | ||||||||||||||||||
Pay-variable interest rate swap agreements - commercial | 75,990 | 6.2 | (292 | ) | 94,451 | 5.5 | (405 | ) | ||||||||||||||||
Purchased options | 3,119 | 3.5 | 322 | 3,095 | 2.5 | 116 | ||||||||||||||||||
Written options | 3,119 | 3.5 | (322 | ) | 3,095 | 2.5 | (116 | ) | ||||||||||||||||
Total | $ | 239,377 | 4.1 | $ | 567 | $ | 285,148 | 3.7 | $ | 304 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||
September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||||
(In thousands) | ||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||
Pay-fixed interest rate swap agreements | Other assets | $ | - | Other assets | $ | 280 | Other liabilities | $ | 611 | Other liabilities | $ | - | ||||||||||
Interest rate cap agreements | Other assets | 318 | Other assets | 2,245 | Other liabilities | - | Other liabilities | - | ||||||||||||||
318 | 2,525 | 611 | - | |||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||
Rate-lock mortgage loan commitments | Other assets | 2,051 | Other assets | 687 | Other liabilities | - | Other liabilities | - | ||||||||||||||
Mandatory commitments to sell mortgage loans | Other assets | - | Other assets | - | Other liabilities | 27 | Other liabilities | 383 | ||||||||||||||
Pay-fixed interest rate swap agreements - commercial | Other assets | 23 | Other assets | 1,116 | Other liabilities | 4,872 | Other liabilities | 711 | ||||||||||||||
Pay-variable interest rate swap agreements - commercial | Other assets | 4,872 | Other assets | 711 | Other liabilities | 23 | Other liabilities | 1,116 | ||||||||||||||
Purchased options | Other assets | 125 | Other assets | 116 | Other liabilities | - | Other liabilities | - | ||||||||||||||
Written options | Other assets | - | Other assets | - | Other liabilities | 124 | Other liabilities | 116 | ||||||||||||||
7,071 | 2,630 | 5,046 | 2,326 | |||||||||||||||||||
Total derivatives | $ | 7,389 | $ | 5,155 | $ | 5,657 | $ | 2,326 |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | |||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||
Pay-fixed interest rate swap agreements | Other assets | $ | 581 | Other assets | $ | 245 | Other liabilities | $ | - | Other liabilities | $ | - | ||||||||
Interest rate cap agreements | Other assets | 3,391 | Other assets | 976 | Other liabilities | - | Other liabilities | - | ||||||||||||
3,972 | 1,221 | - | - | |||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||
Rate-lock mortgage loan commitments | Other assets | 884 | Other assets | 530 | Other liabilities | - | Other liabilities | - | ||||||||||||
Mandatory commitments to sell mortgage loans | Other assets | 182 | Other assets | 37 | Other liabilities | - | Other liabilities | - | ||||||||||||
Pay-fixed interest rate swap agreements - commercial | Other assets | 2,380 | Other assets | 631 | Other liabilities | 138 | Other liabilities | 339 | ||||||||||||
Pay-variable interest rate swap agreements - commercial | Other assets | 138 | Other assets | 339 | Other liabilities | 2,380 | Other liabilities | 631 | ||||||||||||
Purchased options | Other assets | 178 | Other assets | 322 | Other liabilities | - | Other liabilities | - | ||||||||||||
Written options | Other assets | - | Other assets | - | Other liabilities | 178 | Otherliabilities | 322 | ||||||||||||
3,762 | 1,859 | 2,696 | 1,292 | |||||||||||||||||
Total derivatives | $ | 7,734 | $ | 3,080 | $ | 2,696 | $ | 1,292 |
Three Month Periods Ended September 30, | Three Month Periods Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Location of Gain Recognized in Income (1) | Gain Recognized in Income (1) | Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | Location of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective | Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Location of Gain (Loss) Recognized | Gain (Loss) Recognized in Income (1) | |||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2019 | 2018 | Portion) | 2019 | 2018 | in Income (1) | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements | Non-interest income-other | $ | (188 | ) | $ | - | ||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate cap agreements | $ | 297 | $ | - | Interest expense | $ | 67 | $ | - | Interest expense | $ | - | $ | - | $ | (37 | ) | $ | 297 | Interest expense | $ | 88 | $ | 67 | Interest expense | $ | - | $ | - | |||||||||||||||||||||||
Pay-fixed interest rate swap agreements | 92 | 95 | Interest expense | 6 | (5 | ) | Interest expense | 16 | 5 | (35 | ) | 92 | Interest expense | 14 | 6 | Interest expense | - | 16 | ||||||||||||||||||||||||||||||||||
Total | $ | 389 | $ | 95 | $ | 73 | $ | (5 | ) | $ | 16 | $ | 5 | $ | (72 | ) | $ | 389 | $ | 102 | $ | 73 | $ | - | $ | 16 | ||||||||||||||||||||||||||
No hedge designation | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | Net gains on mortgage loans | $ | (318 | ) | $ | (313 | ) | Net gains on mortgage loans | $ | (96 | ) | $ | (318 | ) | ||||||||||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | Net gains on mortgage loans | 415 | 2 | Net gains on mortgage loans | 307 | 415 | ||||||||||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements - commercial | Interest income | 407 | 52 | Interest income | (1,670 | ) | 407 | |||||||||||||||||||||||||||||||||||||||||||||
Pay-variable interest rate swap agreements - commercial | Interest income | (407 | ) | (52 | ) | Interest income | 1,670 | (407 | ) | |||||||||||||||||||||||||||||||||||||||||||
Purchased options | Interest expense | (45 | ) | 5 | Interest income | (46 | ) | (45 | ) | |||||||||||||||||||||||||||||||||||||||||||
Written options | Interest expense | 45 | (5 | ) | Interest income | 46 | 45 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 97 | $ | (311 | ) | $ | 211 | $ | 97 |
(1) | For cash flow hedges, this location and amount refers to the ineffective portion. |
Nine Month Periods Ended September 30, | Nine Month Periods Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Location of Gain Recognized in Income (1) | Gain Recognized in Income (1) | Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | Location of Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective | Gain Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Location of Gain (Loss) Recognized | Gain (Loss) Recognized in Income (1) | |||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2019 | 2018 | Portion) | 2019 | 2018 | in Income (1) | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements | Non-interest income-other | $ | (391 | ) | $ | - | ||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate cap agreements | $ | 1,054 | $ | - | Interest expense | $ | 119 | $ | - | Interest expense | $ | - | $ | - | $ | (1,311 | ) | $ | 1,054 | Interest expense | $ | 321 | $ | 119 | Interest expense | $ | - | $ | - | |||||||||||||||||||||||
Pay-fixed interest rate swap agreements | 346 | 95 | Interest expense | 13 | (5 | ) | Interest expense | 4 | 5 | (429 | ) | 346 | Interest expense | 72 | 13 | Interest expense | - | 4 | ||||||||||||||||||||||||||||||||||
Total | $ | 1,400 | $ | 95 | $ | 132 | $ | (5 | ) | $ | 4 | $ | 5 | $ | (1,740 | ) | $ | 1,400 | $ | 393 | $ | 132 | $ | - | $ | 4 | ||||||||||||||||||||||||||
No hedge designation | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | Net gains on mortgage loans | $ | 354 | $ | 123 | Net gains on mortgage loans | $ | 1,364 | $ | 354 | ||||||||||||||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | Net gains on mortgage loans | 145 | (604 | ) | Net gains on mortgage loans | 356 | 145 | |||||||||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements - commercial | Interest income | 1,950 | (197 | ) | Interest income | (5,254 | ) | 1,950 | ||||||||||||||||||||||||||||||||||||||||||||
Pay-variable interest rate swap agreements - commercial | Interest income | (1,950 | ) | 197 | Interest income | 5,254 | (1,950 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Purchased options | Interest expense | (144 | ) | 39 | Interest expense | 9 | (144 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Written options | Interest expense | 144 | (39 | ) | Interest expense | (8 | ) | 144 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 499 | $ | (481 | ) | $ | 1,721 | $ | 499 |
(1) | For cash flow hedges, this location and amount refers to the ineffective portion. |
7. | Goodwill and other Intangibles |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Amortized intangible assets - core deposits | $ | 11,916 | $ | 5,207 | $ | 6,118 | $ | 4,532 | $ | 11,916 | $ | 6,318 | $ | 11,916 | $ | 5,501 | ||||||||||||||||
Unamortized intangible assets - goodwill | $ | 28,300 | $ | - | $ | 28,300 | $ | 28,300 |
(In thousands) | ||||
Three months ending December 31, 2018 | $ | 293 | ||
2019 | 1,089 | |||
2020 | 1,020 | |||
2021 | 970 | |||
2022 | 785 | |||
2023 and thereafter | 2,552 | |||
Total | $ | 6,709 |
(In thousands) | ||||
Balance at beginning of year | $ | - | ||
Acquired during the year | 28,300 | |||
Balance at end of the period | $ | 28,300 |
(In thousands) | ||||
Three months ending December 31, 2019 | $ | 272 | ||
2020 | 1,020 | |||
2021 | 970 | |||
2022 | 785 | |||
2023 | 547 | |||
2024 and thereafter | 2,004 | |||
Total | $ | 5,598 |
8. | Share Based Compensation |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Restricted stock | 8,000 | - | 64,267 | 53,420 | ||||||||||||
PSU | - | - | 22,016 | 19,986 |
Number of Shares | Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregated Intrinsic Value | |||||||||||||
(In thousands) | ||||||||||||||||
Outstanding at January 1, 2018 | 176,055 | $ | 5.24 | |||||||||||||
Issued for acquisition (see note #16) | 187,915 | 9.94 | ||||||||||||||
Exercised | (113,548 | ) | 9.18 | |||||||||||||
Forfeited | - | |||||||||||||||
Expired | - | |||||||||||||||
Outstanding at September 30, 2018 | 250,422 | $ | 6.98 | 4.7 | $ | 4,174 | ||||||||||
Vested and expected to vest at September 30, 2018 | 250,422 | $ | 6.98 | 4.7 | $ | 4,174 | ||||||||||
Exercisable at September 30, 2018 | 250,422 | $ | 6.98 | 4.7 | $ | 4,174 |
Number of Shares | Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregated Intrinsic Value | |||||||||||||
(In thousands) | ||||||||||||||||
Outstanding at January 1, 2019 | 211,421 | $ | 6.48 | |||||||||||||
Granted | - | |||||||||||||||
Exercised | (70,299 | ) | 9.98 | |||||||||||||
Forfeited | - | |||||||||||||||
Expired | (1,116 | ) | 22.35 | |||||||||||||
Outstanding at September 30, 2019 | 140,006 | $ | 4.60 | 3.2 | $ | 2,340 | ||||||||||
Vested and expected to vest at September 30, 2019 | 140,006 | $ | 4.60 | 3.2 | $ | 2,340 | ||||||||||
Exercisable at September 30, 2019 | 140,006 | $ | 4.60 | 3.2 | $ | 2,340 |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||||
Outstanding at January 1, 2018 | 290,527 | $ | 15.88 | |||||
Granted | 73,406 | 23.62 | ||||||
Vested | (96,255 | ) | 13.17 | |||||
Forfeited | (8,259 | ) | 18.53 | |||||
Outstanding at September 30, 2018 | 259,419 | $ | 19.00 |
Expected dividend yield | 2.62 | % | ||
Risk-free interest rate | 2.40 | |||
Expected life (in years) | 3.14 | |||
Expected volatility | 45.99 | % | ||
Per share weighted-average fair value | $ | 13.25 |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||||
Outstanding at January 1, 2019 | 258,419 | $ | 19.00 | |||||
Granted | 86,283 | 22.87 | ||||||
Vested | (85,978 | ) | 14.57 | |||||
Forfeited | (12,998 | ) | 22.85 | |||||
Outstanding at September 30, 2019 | 245,726 | $ | 21.72 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Intrinsic value | $ | 153 | $ | 39 | $ | 1,827 | $ | 513 | $ | 32 | $ | 153 | $ | 868 | $ | 1,827 | ||||||||||||||||
Cash proceeds received | $ | 58 | $ | 18 | $ | 1,042 | $ | 117 | $ | 6 | $ | 58 | $ | 701 | $ | 1,042 | ||||||||||||||||
Tax benefit realized | $ | 32 | $ | 14 | $ | 384 | $ | 180 | $ | 6 | $ | 32 | $ | 182 | $ | 384 |
9. | Income Tax |
10. | Regulatory Matters |
Actual | Minimum for Adequately Capitalized Institutions | Minimum for Well-Capitalized Institutions | Actual | Minimum for Adequately Capitalized Institutions | Minimum for Well-Capitalized Institutions | |||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 373,748 | 14.57 | % | $ | 205,173 | 8.00 | % | NA | NA | $ | 369,923 | 13.39 | % | $ | 221,065 | 8.00 | % | NA | NA | ||||||||||||||||||||||||||||
Independent Bank | 337,905 | 13.18 | 205,044 | 8.00 | $ | 256,305 | 10.00 | % | 352,432 | 12.76 | 220,984 | 8.00 | $ | 276,230 | 10.00 | % | ||||||||||||||||||||||||||||||||
Tier 1 capital to risk-weighted assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 348,228 | 13.58 | % | $ | 153,880 | 6.00 | % | NA | NA | $ | 342,138 | 12.38 | % | $ | 165,799 | 6.00 | % | NA | NA | ||||||||||||||||||||||||||||
Independent Bank | 312,385 | 12.19 | 153,783 | 6.00 | $ | 205,044 | 8.00 | % | 324,647 | 11.75 | 165,738 | 6.00 | $ | 220,984 | 8.00 | % | ||||||||||||||||||||||||||||||||
Common equity tier 1 capital to risk-weighted assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 310,081 | 12.09 | % | $ | 115,410 | 4.50 | % | NA | NA | $ | 303,923 | 11.00 | % | $ | 124,349 | 4.50 | % | NA | NA | ||||||||||||||||||||||||||||
Independent Bank | 312,385 | 12.19 | 115,337 | 4.50 | $ | 166,598 | 6.50 | % | 324,647 | 11.75 | 124,304 | 4.50 | $ | 179,550 | 6.50 | % | ||||||||||||||||||||||||||||||||
Tier 1 capital to average assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 348,228 | 10.84 | % | $ | 128,543 | 4.00 | % | NA | NA | $ | 342,138 | 9.93 | % | $ | 137,762 | 4.00 | % | NA | NA | ||||||||||||||||||||||||||||
Independent Bank | 312,385 | 9.73 | 128,376 | 4.00 | $ | 160,469 | 5.00 | % | 324,647 | 9.43 | 137,736 | 4.00 | $ | 172,170 | 5.00 | % | ||||||||||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total capital to risk-weighted assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 312,163 | 15.16 | % | $ | 164,782 | 8.00 | % | NA | NA | $ | 371,603 | 14.25 | % | $ | 208,572 | 8.00 | % | NA | NA | ||||||||||||||||||||||||||||
Independent Bank | 290,188 | 14.10 | 164,675 | 8.00 | $ | 205,843 | 10.00 | % | 337,227 | 12.94 | 208,456 | 8.00 | $ | 260,569 | 10.00 | % | ||||||||||||||||||||||||||||||||
Tier 1 capital to risk-weighted assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 288,451 | 14.00 | % | $ | 123,586 | 6.00 | % | NA | NA | $ | 345,419 | 13.25 | % | $ | 156,429 | 6.00 | % | NA | NA | ||||||||||||||||||||||||||||
Independent Bank | 266,476 | 12.95 | 123,506 | 6.00 | $ | 164,675 | 8.00 | % | 311,043 | 11.94 | 156,342 | 6.00 | $ | 208,456 | 8.00 | % | ||||||||||||||||||||||||||||||||
Common equity tier 1 capital to risk-weighted assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 255,934 | 12.43 | % | $ | 92,690 | 4.50 | % | NA | NA | $ | 307,255 | 11.79 | % | $ | 117,322 | 4.50 | % | NA | NA | ||||||||||||||||||||||||||||
Independent Bank | 266,476 | 12.95 | 92,630 | 4.50 | $ | 133,798 | 6.50 | % | 311,043 | 11.94 | 117,256 | 4.50 | $ | 169,370 | 6.50 | % | ||||||||||||||||||||||||||||||||
Tier 1 capital to average assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 288,451 | 10.57 | % | $ | 109,209 | 4.00 | % | NA | NA | $ | 345,419 | 10.47 | % | $ | 131,930 | 4.00 | % | NA | NA | ||||||||||||||||||||||||||||
Independent Bank | 266,476 | 9.78 | 109,041 | 4.00 | $ | 136,301 | 5.00 | % | 311,043 | 9.44 | 131,778 | 4.00 | $ | 164,723 | 5.00 | % |
These ratios do not reflect a capital conservation buffer of 2.50% and 1.875% at September 30, 2019 and December 31, 2018, respectively. |
Consolidated | Independent Bank | Consolidated | Independent Bank | |||||||||||||||||||||||||||||
September 30, 2018 | December 31, 2017 | September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Total shareholders' equity | $ | 345,204 | $ | 264,933 | $ | 343,351 | $ | 269,481 | ||||||||||||||||||||||||
Total shareholders’ equity | $ | 340,245 | $ | 338,994 | $ | 360,969 | $ | 341,496 | ||||||||||||||||||||||||
Add (deduct) | ||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss for regulatory purposes | 4,092 | 201 | 4,092 | 201 | ||||||||||||||||||||||||||||
Accumulated other comprehensive (income) loss for regulatory purposes | (2,424 | ) | 4,311 | (2,424 | ) | 4,311 | ||||||||||||||||||||||||||
Goodwill and other intangibles | (35,009 | ) | (1,269 | ) | (35,009 | ) | (1,269 | ) | (33,898 | ) | (34,715 | ) | (33,898 | ) | (34,715 | ) | ||||||||||||||||
Disallowed deferred tax assets | (4,206 | ) | (7,931 | ) | (49 | ) | (1,937 | ) | - | (1,335 | ) | - | (49 | ) | ||||||||||||||||||
Common equity tier 1 capital | 310,081 | 255,934 | 312,385 | 266,476 | 303,923 | 307,255 | 324,647 | 311,043 | ||||||||||||||||||||||||
Qualifying trust preferred securities | 38,147 | 34,500 | - | - | 38,215 | 38,164 | - | - | ||||||||||||||||||||||||
Disallowed deferred tax assets | - | (1,983 | ) | - | - | |||||||||||||||||||||||||||
Tier 1 capital | 348,228 | 288,451 | 312,385 | 266,476 | 342,138 | 345,419 | 324,647 | 311,043 | ||||||||||||||||||||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 25,520 | 23,712 | 25,520 | 23,712 | 27,785 | 26,184 | 27,785 | 26,184 | ||||||||||||||||||||||||
Total risk-based capital | $ | 373,748 | $ | 312,163 | $ | 337,905 | $ | 290,188 | $ | 369,923 | $ | 371,603 | $ | 352,432 | $ | 337,227 |
11. | Fair Value Disclosures |
Fair Value Measure- ments | Fair Value Measurements Using | Fair Value Measurements Using | ||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Un- observable Inputs (Level 3) | Fair Value Measure- ments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Un- observable Inputs (Level 3) | ||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
September 30, 2018: | ||||||||||||||||||||||||||||||||
September 30, 2019: | ||||||||||||||||||||||||||||||||
Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Equity securities at fair value | $ | 285 | $ | 285 | $ | - | $ | - | ||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||
U.S. agency | 20,423 | - | 20,423 | - | $ | 15,283 | $ | - | $ | 15,283 | $ | - | ||||||||||||||||||||
U.S. agency residential mortgage-backed | 125,061 | - | 125,061 | - | 147,720 | - | 147,720 | - | ||||||||||||||||||||||||
U.S. agency commercial mortgage-backed | 5,815 | - | 5,815 | - | 11,319 | - | 11,319 | - | ||||||||||||||||||||||||
Private label mortgage-backed | 28,973 | - | 28,973 | - | 31,826 | - | 31,826 | - | ||||||||||||||||||||||||
Other asset backed | 78,526 | - | 78,526 | - | 94,785 | - | 94,785 | - | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 139,654 | - | 139,654 | - | 101,139 | - | 101,139 | - | ||||||||||||||||||||||||
Corporate | 34,570 | - | 34,570 | - | 33,678 | - | 33,678 | - | ||||||||||||||||||||||||
Trust preferred | 1,925 | - | 1,925 | - | 1,820 | - | 1,820 | - | ||||||||||||||||||||||||
Foreign government | 2,010 | - | 2,010 | - | 2,022 | - | 2,022 | - | ||||||||||||||||||||||||
Loans held for sale | 41,325 | - | 41,325 | - | ||||||||||||||||||||||||||||
Loans held for sale, carried at fair value | 87,358 | - | 87,358 | - | ||||||||||||||||||||||||||||
Capitalized mortgage loan servicing rights | 23,151 | - | - | 23,151 | 16,906 | - | - | 16,906 | ||||||||||||||||||||||||
Derivatives (1) | 7,734 | - | 7,734 | - | 7,389 | - | 7,389 | - | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives (2) | 2,696 | - | 2,696 | - | 5,657 | - | 5,657 | - | ||||||||||||||||||||||||
Measured at Fair Value on a Non-recurring basis: | ||||||||||||||||||||||||||||||||
Measured at Fair Value on a Non-recurring Basis: | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Impaired loans (3) | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Income producing - real estate | 225 | - | - | 225 | 115 | - | - | 115 | ||||||||||||||||||||||||
Land, land development & construction-real estate | 87 | - | - | 87 | ||||||||||||||||||||||||||||
Commercial and industrial | 944 | - | - | 944 | 706 | - | - | 706 | ||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 334 | - | - | 334 | 666 | - | - | 666 | ||||||||||||||||||||||||
Resort lending | 264 | - | - | 264 | 60 | - | - | 60 | ||||||||||||||||||||||||
Home equity - 1st lien | 83 | - | - | 83 | ||||||||||||||||||||||||||||
Home equity - 2nd lien | 199 | - | - | 199 | ||||||||||||||||||||||||||||
Installment | ||||||||||||||||||||||||||||||||
Home equity - 1st lien | 9 | - | - | 9 | ||||||||||||||||||||||||||||
Home equity - 2nd lien | 70 | - | - | 70 | ||||||||||||||||||||||||||||
Boat lending | 103 | - | - | 103 | ||||||||||||||||||||||||||||
Recreational vehicle lending | 1 | - | - | 1 | ||||||||||||||||||||||||||||
Other | 86 | - | - | 86 | ||||||||||||||||||||||||||||
Other real estate (4) | ||||||||||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 94 | - | - | 94 | 23 | - | - | 23 | ||||||||||||||||||||||||
Resort lending | 1 | - | - | 1 | ||||||||||||||||||||||||||||
Home equity - 2nd lien | 57 | - | - | 57 |
(1) | Included in accrued income and other assets |
(2) | Included in accrued expenses and other liabilities |
(3) | Only includes impaired loans with specific loss allocations based on collateral value. |
(4) | Only includes other real estate with subsequent write downs to fair value. |
Fair Value Measure- ments | Fair Value Measurements Using | Fair Value Measurements Using | ||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Un- observable Inputs (Level 3) | Fair Value Measure- ments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Un- observable Inputs (Level 3) | ||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
December 31, 2017: | ||||||||||||||||||||||||||||||||
Measured at Fair Value on a Recurring Basis: | ||||||||||||||||||||||||||||||||
December 31, 2018: | ||||||||||||||||||||||||||||||||
Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Trading securities | $ | 455 | $ | 455 | $ | - | $ | - | ||||||||||||||||||||||||
Equity securities at fair value | $ | 393 | $ | 393 | $ | - | $ | - | ||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||||||||
U.S. Treasury | 898 | 898 | - | - | ||||||||||||||||||||||||||||
U.S. agency | 25,682 | - | 25,682 | - | 20,014 | - | 20,014 | - | ||||||||||||||||||||||||
U.S. agency residential mortgage-backed | 137,918 | - | 137,918 | - | 123,751 | - | 123,751 | - | ||||||||||||||||||||||||
U.S. agency commercial mortgage-backed | 9,760 | - | 9,760 | - | 5,726 | - | 5,726 | - | ||||||||||||||||||||||||
Private label mortgage-backed | 29,109 | - | 29,109 | - | 29,419 | - | 29,419 | - | ||||||||||||||||||||||||
Other asset backed | 93,898 | - | 93,898 | - | 83,319 | - | 83,319 | - | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 172,945 | - | 172,945 | - | 127,555 | - | 127,555 | - | ||||||||||||||||||||||||
Corporate | 47,853 | - | 47,853 | - | 34,309 | - | 34,309 | - | ||||||||||||||||||||||||
Trust preferred | 2,802 | - | 2,802 | - | 1,819 | - | 1,819 | - | ||||||||||||||||||||||||
Foreign government | 2,060 | - | 2,060 | - | 2,014 | - | 2,014 | - | ||||||||||||||||||||||||
Loans held for sale | 39,436 | - | 39,436 | - | ||||||||||||||||||||||||||||
Loans held for sale, carried at fair value | 44,753 | - | 44,753 | - | ||||||||||||||||||||||||||||
Capitalized mortgage loan servicing rights | 15,699 | - | - | 15,699 | 21,400 | - | - | 21,400 | ||||||||||||||||||||||||
Derivatives (1) | 3,080 | - | 3,080 | - | 5,155 | - | 5,155 | - | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives (2) | 1,292 | - | 1,292 | - | 2,326 | - | 2,326 | - | ||||||||||||||||||||||||
Measured at Fair Value on a Non-recurring basis: | ||||||||||||||||||||||||||||||||
Measured at Fair Value on a Non-recurring Basis: | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Loans held for sale, carried at the lower of cost or fair value | 41,471 | 41,471 | - | - | ||||||||||||||||||||||||||||
Impaired loans (3) | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Income producing - real estate | 274 | - | - | 274 | 217 | - | - | 217 | ||||||||||||||||||||||||
Land, land development & construction-real estate | 9 | - | - | 9 | 106 | - | - | 106 | ||||||||||||||||||||||||
Commercial and industrial | 1,051 | - | - | 1,051 | 2,243 | - | - | 2,243 | ||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 339 | - | - | 339 | 333 | - | - | 333 | ||||||||||||||||||||||||
Resort lending | 207 | - | - | 207 | 572 | - | - | 572 | ||||||||||||||||||||||||
Other real estate (4) | ||||||||||||||||||||||||||||||||
Mortgage | ||||||||||||||||||||||||||||||||
1-4 family | 186 | - | - | 186 | 95 | - | - | 95 | ||||||||||||||||||||||||
Resort lending | 65 | - | - | 65 | ||||||||||||||||||||||||||||
Home equity - 2nd lien | 59 | - | - | 59 |
(1) | Included in accrued income and other assets |
(2) | Included in accrued expenses and other liabilities |
(3) | Only includes impaired loans with specific loss allocations based on collateral value. |
(4) | Only includes other real estate with subsequent write downs to fair value. |
Changes in Fair Values for the nine-Month Periods Ended September 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option | Changes in Fair Values for the Nine-Month Periods Ended September 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option | |||||||||||||||||||||||||||||||
Net Gains (Losses) on Assets | Mortgage Loan Servicing, net | Total Change in Fair Values Included in Current Period Earnings | Net Gains (Losses) on Assets | Mortgage | Total Change in Fair Values Included in Current | |||||||||||||||||||||||||||
Securities | Mortgage Loans | Securities | Mortgage Loans | Loan Servicing, net | Period Earnings | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Equity securities at fair value | $ | 167 | $ | - | $ | - | $ | 167 | ||||||||||||||||||||||||
Loans held for sale | - | 822 | - | 822 | ||||||||||||||||||||||||||||
Capitalized mortgage loan servicing rights | - | - | (9,258 | ) | (9,258 | ) | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Equity securities at fair value | $ | (170 | ) | $ | - | $ | - | $ | (170 | ) | $ | (170 | ) | $ | - | $ | - | $ | (170 | ) | ||||||||||||
Loans held for sale | - | (120 | ) | - | (120 | ) | - | (120 | ) | - | (120 | ) | ||||||||||||||||||||
Capitalized mortgage loan servicing rights | - | - | 694 | 694 | - | - | 694 | 694 | ||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||
Trading securities | $ | (63 | ) | $ | - | $ | - | $ | (63 | ) | ||||||||||||||||||||||
Loans held for sale | - | 713 | - | 713 | ||||||||||||||||||||||||||||
Capitalized mortgage loan servicing rights | - | - | (2,585 | ) | (2,585 | ) |
Capitalized Mortgage Loan Servicing Rights | Capitalized Mortgage Loan Servicing Rights | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | |||||||||||||||||||||||||||||
Beginning balance | $ | 21,848 | $ | 14,515 | $ | 15,699 | $ | - | $ | 17,894 | $ | 21,848 | $ | 21,400 | $ | 15,699 | ||||||||||||||||
Change in accounting | - | - | - | 14,213 | ||||||||||||||||||||||||||||
Beginning balance, as adjusted | 21,848 | 14,515 | 15,699 | 14,213 | ||||||||||||||||||||||||||||
Total gains (losses) realized and unrealized: | ||||||||||||||||||||||||||||||||
Included in results of operations | (198 | ) | (1,090 | ) | 694 | (2,585 | ) | (3,145 | ) | (198 | ) | (9,258 | ) | 694 | ||||||||||||||||||
Included in other comprehensive income (loss) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Purchases, issuances, settlements, maturities and calls | 1,501 | 1,250 | 6,758 | 3,047 | 2,157 | 1,501 | 4,764 | 6,758 | ||||||||||||||||||||||||
Transfers in and/or out of Level 3 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Ending balance | $ | 23,151 | $ | 14,675 | $ | 23,151 | $ | 14,675 | $ | 16,906 | $ | 23,151 | $ | 16,906 | $ | 23,151 | ||||||||||||||||
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at September 30 | $ | (198 | ) | $ | (1,090 | ) | $ | 694 | $ | (2,585 | ) | $ | (3,145 | ) | $ | (198 | ) | $ | (9,258 | ) | $ | 694 |
Asset Fair Value | Valuation Technique | Unobservable Inputs | Range | Weighted Average | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2018 | |||||||||||||||
Capitalized mortgage loan servicing rights | $ | 23,151 | Present value of net | Discount rate | 10.00% to 13.00 | % | 10.15 | % | |||||||
servicing revenue | Cost to service | $ | 68 to $317 | $ | 81 | ||||||||||
Ancillary income | 20 to 36 | 22 | |||||||||||||
Float rate | 3.07 | % | 3.07 | % | |||||||||||
December 31, 2017 | |||||||||||||||
Capitalized mortgage loan servicing rights | $ | 15,699 | Present value of net | Discount rate | 9.88% to 11.00 | % | 10.11 | % | |||||||
servicing revenue | Cost to service | $ | 66 to $216 | $ | 81 | ||||||||||
Ancillary income | 20 to 36 | 23 | |||||||||||||
Float rate | 2.24 | % | 2.24 | % |
Asset Fair Value | Valuation Technique | Unobservable Inputs | Range | Weighted Average | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2019 | |||||||||||||||
Capitalized mortgage loan servicing rights | $ | 16,906 | Present value of net | Discount rate | 10.00% to 13.00 | % | 10.14 | % | |||||||
servicing revenue | Cost to service | $ | 63 to $216 | $ | 80 | ||||||||||
Ancillary income | 20 to 36 | 22 | |||||||||||||
Float rate | 1.50 | % | 1.50 | % | |||||||||||
Prepayment rate | 7.01% to 29.80 | % | 16.08 | % | |||||||||||
December 31, 2018 | |||||||||||||||
Capitalized mortgage loan servicing rights | $ | 21,400 | Present value of net | Discount rate | 10.00% to 13.00 | % | 10.15 | % | |||||||
servicing revenue | Cost to service | $ | 68 to $216 | $ | 81 | ||||||||||
Ancillary income | 20 to 36 | 23 | |||||||||||||
Float rate | 2.57 | % | 2.57 | % | |||||||||||
Prepayment rate | 6.68% to 78.78 | % | 10.54 | % |
Asset Fair Value | Valuation Technique | Unobservable Inputs | Range | Weighted Average | Asset Fair Value | Valuation Technique | Unobservable Inputs | Range | Weighted Average | |||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||
Commercial | $ | 1,169 | Sales comparison approach | Adjustment for differences between comparable sales | (32.5)% to 25.0% | (4.5 | )% | $ | 908 | Sales comparison approach | Adjustment for differences between comparable sales | (48.0)% to 6.3 | % | (12.3 | )% | |||||||||||
Mortgage and Installment(1) | 1,277 | Sales comparison approach | Adjustment for differences between comparable sales | (61.4) to 65.2 | (6.8 | ) | ||||||||||||||||||||
Other real estate | ||||||||||||||||||||||||||
Mortgage | 80 | Sales comparison approach | Adjustment for differences between comparable sales | (36.4) to 16.3 | (20.3 | ) | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||
Commercial(2) | $ | 2,566 | Sales comparison approach | Adjustment for differences between comparable sales | (32.5)% to 60.0 | % | (1.9 | )% | ||||||||||||||||||
Mortgage | 598 | Sales comparison approach | Adjustment for differences between comparable sales | (40.1) to 30.4 | (1.9 | ) | 905 | Sales comparison approach | Adjustment for differences between comparable sales | (40.1) to 25.6 | 0.7 | |||||||||||||||
Other real estate | ||||||||||||||||||||||||||
Mortgage | 95 | Sales comparison approach | Adjustment for differences between comparable sales | 2.2 to 34.1 | 17.9 | 154 | Sales comparison approach | Adjustment for differences between comparable sales | 0.0 to 34.1 | 11.2 | ||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||
Commercial | 1,334 | Sales comparison approach | Adjustment for differences between comparable sales | (32.5)% to 25.0% | (4.5 | )% | ||||||||||||||||||||
Mortgage | 546 | Sales comparison approach | Adjustment for differences between comparable sales | (21.1) to 34.1 | (2.7 | ) | ||||||||||||||||||||
Other real estate | ||||||||||||||||||||||||||
Mortgage | 251 | Sales comparison approach | Adjustment for differences between comparable sales | (33.0) to 44.5 | (1.0 | ) |
(1) | In addition to the valuation techniques and unobservable inputs discussed above, at September 30, 2019 certain impaired collateral dependent installment loans totaling approximately $0.2 million are secured by collateral other than real estate. For the majority of these loans, we apply internal discount rates to industry valuation guides. |
(2) | In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2018, we had an impaired collateral dependent commercial relationship that totaled $0.7 million that was secured by collateral other than real estate. Collateral securing this relationship primarily included accounts receivable, inventory and cash at December 31, 2018. Valuation techniques at December 31, 2018, included discounting financial statement values for each particular asset type. Discount rates used ranged from 20% to 80% of stated values at December 31, 2018. |
Aggregate Fair Value | Difference | Contractual Principal | ||||||||||
(In thousands) | ||||||||||||
Loans held for sale | ||||||||||||
September 30, 2018 | $ | 41,325 | $ | 724 | $ | 40,601 | ||||||
December 31, 2017 | 39,436 | 844 | 38,592 |
Aggregate Fair Value | Difference | Contractual Principal | ||||||||||
(In thousands) | ||||||||||||
Loans held for sale | ||||||||||||
September 30, 2019 | $ | 87,358 | $ | 2,079 | $ | 85,279 | ||||||
December 31, 2018 | 44,753 | 1,257 | 43,496 |
12. | Fair Values of Financial Instruments |
Recorded Book Balance | Fair Value | Fair Value Using | Fair Value Using | |||||||||||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Un- observable Inputs (Level 3) | Recorded Book Balance | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Un- observable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 38,662 | $ | 38,662 | $ | 38,662 | $ | - | $ | - | ||||||||||||||||||||||||||||||
Interest bearing deposits | 43,755 | 43,755 | 43,755 | - | - | |||||||||||||||||||||||||||||||||||
Interest bearing deposits - time | 499 | 500 | - | 500 | - | |||||||||||||||||||||||||||||||||||
Securities available for sale | 439,592 | 439,592 | - | 439,592 | - | |||||||||||||||||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 18,359 | NA | NA | NA | NA | |||||||||||||||||||||||||||||||||||
Net loans and loans held for sale | 2,820,278 | 2,841,484 | - | 125,013 | 2,716,471 | |||||||||||||||||||||||||||||||||||
Accrued interest receivable | 10,480 | 10,480 | 1 | 1,995 | 8,484 | |||||||||||||||||||||||||||||||||||
Derivative financial instruments | 7,389 | 7,389 | - | 7,389 | - | |||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Deposits with no stated maturity (1) | $ | 2,429,013 | $ | 2,429,013 | $ | 2,429,013 | $ | - | $ | - | ||||||||||||||||||||||||||||||
Deposits with stated maturity (1) | 623,299 | 623,916 | - | 623,916 | - | |||||||||||||||||||||||||||||||||||
Other borrowings | 63,974 | 63,930 | - | 63,930 | - | |||||||||||||||||||||||||||||||||||
Subordinated debentures | 39,439 | 32,427 | - | 32,427 | - | |||||||||||||||||||||||||||||||||||
Accrued interest payable | 1,610 | 1,610 | 100 | 1,510 | - | |||||||||||||||||||||||||||||||||||
Derivative financial instruments | 5,657 | 5,657 | - | 5,657 | - | |||||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 35,180 | $ | 35,180 | $ | 35,180 | $ | - | $ | - | $ | 23,350 | $ | 23,350 | $ | 23,350 | $ | - | $ | - | ||||||||||||||||||||
Interest bearing deposits | 17,990 | 17,990 | 17,990 | - | - | 46,894 | 46,894 | 46,894 | - | - | ||||||||||||||||||||||||||||||
Interest bearing deposits - time | 593 | 593 | - | 593 | - | 595 | 594 | - | 594 | - | ||||||||||||||||||||||||||||||
Equity securities at fair value | 285 | 285 | 285 | - | - | 393 | 393 | 393 | - | - | ||||||||||||||||||||||||||||||
Securities available for sale | 436,957 | 436,957 | - | 436,957 | - | 427,926 | 427,926 | - | 427,926 | - | ||||||||||||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 18,355 | NA | NA | NA | NA | 18,359 | NA | NA | NA | NA | ||||||||||||||||||||||||||||||
Net loans and loans held for sale | 2,579,502 | 2,533,221 | - | 41,325 | 2,491,896 | 2,643,856 | 2,606,256 | 41,471 | 44,753 | 2,520,032 | ||||||||||||||||||||||||||||||
Accrued interest receivable | 10,791 | 10,791 | 1 | 2,383 | 8,407 | 10,164 | 10,164 | 22 | 1,789 | 8,353 | ||||||||||||||||||||||||||||||
Derivative financial instruments | 7,734 | 7,734 | - | 7,734 | - | 5,155 | 5,155 | - | 5,155 | - | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Deposits with no stated maturity (1) | $ | 2,143,552 | $ | 2,143,552 | $ | 2,143,552 | $ | - | $ | - | $ | 2,197,494 | $ | 2,197,494 | $ | 2,197,494 | $ | - | $ | - | ||||||||||||||||||||
Deposits with stated maturity (1) | 655,091 | 649,709 | - | 649,709 | - | 715,934 | 711,312 | - | 711,312 | - | ||||||||||||||||||||||||||||||
Other borrowings | 79,688 | 79,275 | - | 79,275 | - | 25,700 | 25,706 | - | 25,706 | - | ||||||||||||||||||||||||||||||
Subordinated debentures | 39,371 | 36,888 | - | 36,888 | - | 39,388 | 35,021 | - | 35,021 | - | ||||||||||||||||||||||||||||||
Accrued interest payable | 1,463 | 1,463 | 110 | 1,353 | - | 1,646 | 1,646 | 114 | 1,532 | - | ||||||||||||||||||||||||||||||
Derivative financial instruments | 2,696 | 2,696 | - | 2,696 | - | 2,326 | 2,326 | - | 2,326 | - | ||||||||||||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 36,994 | $ | 36,994 | $ | 36,994 | $ | - | $ | - | ||||||||||||||||||||||||||||||
Interest bearing deposits | 17,744 | 17,744 | 17,744 | - | - | |||||||||||||||||||||||||||||||||||
Interest bearing deposits - time | 2,739 | 2,740 | - | 2,740 | - | |||||||||||||||||||||||||||||||||||
Trading securities | 455 | 455 | 455 | - | - | |||||||||||||||||||||||||||||||||||
Securities available for sale | 522,925 | 522,925 | 898 | 522,027 | - | |||||||||||||||||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 15,543 | NA | NA | NA | NA | |||||||||||||||||||||||||||||||||||
Net loans and loans held for sale | 2,035,666 | 1,962,937 | - | 39,436 | 1,923,501 | |||||||||||||||||||||||||||||||||||
Accrued interest receivable | 8,609 | 8,609 | 1 | 2,192 | 6,416 | |||||||||||||||||||||||||||||||||||
Derivative financial instruments | 3,080 | 3,080 | - | 3,080 | - | |||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Deposits with no stated maturity (1) | $ | 1,845,716 | $ | 1,845,716 | $ | 1,845,716 | $ | - | $ | - | ||||||||||||||||||||||||||||||
Deposits with stated maturity (1) | 554,818 | 551,489 | - | 551,489 | - | |||||||||||||||||||||||||||||||||||
Other borrowings | 54,600 | 54,918 | - | 54,918 | - | |||||||||||||||||||||||||||||||||||
Subordinated debentures | 35,569 | 29,946 | - | 29,946 | - | |||||||||||||||||||||||||||||||||||
Accrued interest payable | 892 | 892 | 48 | 844 | - | |||||||||||||||||||||||||||||||||||
Derivative financial instruments | 1,292 | 1,292 | - | 1,292 | - |
(1) | Deposits with no stated maturity include reciprocal deposits with a recorded book balance of |
13. | Contingencies |
14. | Accumulated Other Comprehensive Loss (“AOCL”) |
Unrealized Gains (Losses) on Securities Available for Sale | Dispropor- tionate Tax Effects from Securities Available for Sale | Unrealized Gains on Cash Flow Hedges | Total | Unrealized Gains (Losses) on Securities Available for Sale | Dispropor- tionate Tax Effects from Securities Available for Sale | Unrealized Gains (Losses) on Cash Flow Hedges | Total | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
For the three months ended September 30, | ||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Balances at beginning of period | $ | 3,040 | $ | (5,798 | ) | $ | (1,673 | ) | $ | (4,431 | ) | |||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 1,196 | - | (58 | ) | 1,138 | |||||||||||||||||||||||||||
Amounts reclassified from AOCL | - | - | (80 | ) | (80 | ) | ||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 1,196 | - | (138 | ) | 1,058 | |||||||||||||||||||||||||||
Balances at end of period | $ | 4,236 | $ | (5,798 | ) | $ | (1,811 | ) | $ | (3,373 | ) | |||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Balances at beginning of period | $ | (4,437 | ) | $ | (5,798 | ) | $ | 1,021 | $ | (9,214 | ) | $ | (4,437 | ) | $ | (5,798 | ) | $ | 1,021 | $ | (9,214 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | (925 | ) | - | 307 | (618 | ) | (925 | ) | - | 307 | (618 | ) | ||||||||||||||||||||
Amounts reclassified from AOCL | - | - | (57 | ) | (57 | ) | - | - | (57 | ) | (57 | ) | ||||||||||||||||||||
Net current period other comprehensive income (loss) | (925 | ) | - | 250 | (675 | ) | (925 | ) | - | 250 | (675 | ) | ||||||||||||||||||||
Balances at end of period | $ | (5,362 | ) | $ | (5,798 | ) | $ | 1,271 | $ | (9,889 | ) | $ | (5,362 | ) | $ | (5,798 | ) | $ | 1,271 | $ | (9,889 | ) | ||||||||||
2017 | ||||||||||||||||||||||||||||||||
For the nine months ended September 30, | ||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
Balances at beginning of period | $ | 1,986 | $ | (5,798 | ) | $ | - | $ | (3,812 | ) | $ | (4,185 | ) | $ | (5,798 | ) | $ | (125 | ) | $ | (10,108 | ) | ||||||||||
Other comprehensive income before reclassifications | 95 | - | 62 | 157 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 8,529 | - | (1,376 | ) | 7,153 | |||||||||||||||||||||||||||
Amounts reclassified from AOCL | (5 | ) | - | 3 | (2 | ) | (108 | ) | - | (310 | ) | (418 | ) | |||||||||||||||||||
Net current period other comprehensive income | 90 | - | 65 | 155 | ||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | 8,421 | - | (1,686 | ) | 6,735 | |||||||||||||||||||||||||||
Balances at end of period | $ | 2,076 | $ | (5,798 | ) | $ | 65 | $ | (3,657 | ) | $ | 4,236 | $ | (5,798 | ) | $ | (1,811 | ) | $ | (3,373 | ) | |||||||||||
For the nine months ended September 30, | ||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||
Balances at beginning of period | $ | (470 | ) | $ | (5,798 | ) | $ | 269 | $ | (5,999 | ) | $ | (470 | ) | $ | (5,798 | ) | $ | 269 | $ | (5,999 | ) | ||||||||||
Other comprehensive income (loss) before reclassifications | (4,928 | ) | - | 1,106 | (3,822 | ) | (4,928 | ) | - | 1,106 | (3,822 | ) | ||||||||||||||||||||
Amounts reclassified from AOCL | 36 | - | (104 | ) | (68 | ) | 36 | - | (104 | ) | (68 | ) | ||||||||||||||||||||
Net current period other comprehensive income (loss) | (4,892 | ) | - | 1,002 | (3,890 | ) | (4,892 | ) | - | 1,002 | (3,890 | ) | ||||||||||||||||||||
Balances at end of period | $ | (5,362 | ) | $ | (5,798 | ) | $ | 1,271 | $ | (9,889 | ) | $ | (5,362 | ) | $ | (5,798 | ) | $ | 1,271 | $ | (9,889 | ) | ||||||||||
2017 | ||||||||||||||||||||||||||||||||
Balances at beginning of period | $ | (3,310 | ) | $ | (5,798 | ) | $ | - | $ | (9,108 | ) | |||||||||||||||||||||
Cumulative effect of change in accounting | 300 | - | - | 300 | ||||||||||||||||||||||||||||
Balances at beginning of period, as adjusted | (3,010 | ) | (5,798 | ) | - | (8,808 | ) | |||||||||||||||||||||||||
Other comprehensive income before reclassifications | 5,167 | - | 62 | 5,229 | ||||||||||||||||||||||||||||
Amounts reclassified from AOCL | (81 | ) | - | 3 | (78 | ) | ||||||||||||||||||||||||||
Net current period other comprehensive income | 5,086 | - | 65 | 5,151 | ||||||||||||||||||||||||||||
Balances at end of period | $ | 2,076 | $ | (5,798 | ) | $ | 65 | $ | (3,657 | ) |
AOCL Component | Amount Reclassified From AOCL | Affected Line Item in Condensed Consolidated Statements of Operations | |||
(In thousands) | |||||
2018 | |||||
Unrealized losses on securities available for sale | |||||
$ | - | Net gains (losses) on securities | |||
- | Net impairment loss recognized in earnings | ||||
- | Total reclassifications before tax | ||||
- | Income tax expense | ||||
$ | - | Reclassifications, net of tax | |||
Unrealized gains on cash flow hedges | |||||
$ | (73 | ) | Interest expense | ||
(16 | ) | Income tax expense | |||
$ | (57 | ) | Reclassification, net of tax | ||
$ | 57 | Total reclassifications for the period, net of tax | |||
2017 | |||||
Unrealized gains on securities available for sale | |||||
$ | 8 | Net gains (losses) on securities | |||
- | Net impairment loss recognized in earnings | ||||
8 | Total reclassifications before tax | ||||
3 | Income tax expense | ||||
$ | 5 | Reclassifications, net of tax | |||
Unrealized gains on cash flow hedges | |||||
$ | (5 | ) | Interest expense | ||
(2 | ) | Income tax expense | |||
$ | (3 | ) | Reclassification, net of tax | ||
$ | 2 | Total reclassifications for the period, net of tax |
AOCL Component | Amount Reclassified From AOCL | Affected Line Item in Condensed Consolidated Statements of Operations | |||
(In thousands) | |||||
2019 | |||||
Unrealized gains (losses) on securities available for sale | |||||
$ | - | Net gains (losses) on securities | |||
- | Net impairment loss recognized in earnings | ||||
- | Total reclassifications before tax | ||||
- | Income tax expense | ||||
$ | - | Reclassifications, net of tax | |||
Unrealized gains (losses) on cash flow hedges | |||||
$ | (102 | ) | Interest expense | ||
(22 | ) | Income tax expense | |||
$ | (80 | ) | Reclassification, net of tax | ||
$ | 80 | Total reclassifications for the period, net of tax | |||
2018 | |||||
Unrealized gains (losses) on securities available for sale | |||||
$ | - | Net gains (losses) on securities | |||
- | Net impairment loss recognized in earnings | ||||
- | Total reclassifications before tax | ||||
- | Income tax expense | ||||
$ | - | Reclassifications, net of tax | |||
Unrealized gains (losses) on cash flow hedges | |||||
$ | (73 | ) | Interest expense | ||
(16 | ) | Income tax expense | |||
$ | (57 | ) | Reclassification, net of tax | ||
$ | 57 | Total reclassifications for the period, net of tax |
AOCL Component | Amount Reclassified From AOCL | Affected Line Item in Condensed Consolidated Statements of Operations | |||
(In thousands) | |||||
2018 | |||||
Unrealized losses on securities available for sale | |||||
$ | (45 | ) | Net gains (losses) on securities | ||
- | Net impairment loss recognized in earnings | ||||
(45 | ) | Total reclassifications before tax | |||
(9 | ) | Income tax expense | |||
$ | (36 | ) | Reclassifications, net of tax | ||
Unrealized gains on cash flow hedges | |||||
$ | (132 | ) | Interest expense | ||
(28 | ) | Income tax expense | |||
$ | (104 | ) | Reclassification, net of tax | ||
$ | 68 | Total reclassifications for the period, net of tax | |||
2017 | |||||
Unrealized gains on securities available for sale | |||||
$ | 125 | Net gains (losses) on securities | |||
- | Net impairment loss recognized in earnings | ||||
125 | Total reclassifications before tax | ||||
44 | Income tax expense | ||||
$ | 81 | Reclassifications, net of tax | |||
Unrealized gains on cash flow hedges | |||||
$ | (5 | ) | Interest expense | ||
(2 | ) | Income tax expense | |||
$ | (3 | ) | Reclassification, net of tax | ||
$ | 78 | Total reclassifications for the period, net of tax |
AOCL Component | Amount Reclassified From AOCL | Affected Line Item in Condensed Consolidated Statements of Operations | |||
(In thousands) | |||||
2019 | |||||
Unrealized gains (losses) on securities available for sale | |||||
$ | 137 | Net gains (losses) on securities | |||
- | Net impairment loss recognized in earnings | ||||
137 | Total reclassifications before tax | ||||
29 | Income tax expense | ||||
$ | 108 | Reclassifications, net of tax | |||
Unrealized gains (losses) on cash flow hedges | |||||
$ | (393 | ) | Interest expense | ||
(83 | ) | Income tax expense | |||
$ | (310 | ) | Reclassification, net of tax | ||
$ | 418 | Total reclassifications for the period, net of tax | |||
2018 | |||||
Unrealized gains (losses) on securities available for sale | |||||
$ | (45 | ) | Net gains (losses) on securities | ||
- | Net impairment loss recognized in earnings | ||||
(45 | ) | Total reclassifications before tax | |||
(9 | ) | Income tax expense | |||
$ | (36 | ) | Reclassifications, net of tax | ||
Unrealized gains (losses) on cash flow hedges | |||||
$ | (132 | ) | Interest expense | ||
(28 | ) | Income tax expense | |||
$ | (104 | ) | Reclassification, net of tax | ||
$ | 68 | Total reclassifications for the period, net of tax |
15. | Revenue from Contracts with Customers |
Service Charges on Deposit Accounts | Other Deposit Related Income | Interchange Income | Investment and Insurance Commissions | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Retail | ||||||||||||||||||||
Overdraft fees | $ | 1,970 | $ | - | $ | - | $ | - | $ | 1,970 | ||||||||||
Account service charges | 552 | - | - | - | 552 | |||||||||||||||
ATM fees | - | 373 | - | - | 373 | |||||||||||||||
Other | - | 240 | - | - | 240 | |||||||||||||||
Business | ||||||||||||||||||||
Overdraft fees | 361 | - | - | - | 361 | |||||||||||||||
Account service charges | - | - | - | - | - | |||||||||||||||
ATM fees | - | 9 | - | - | 9 | |||||||||||||||
Other | - | 91 | - | - | 91 | |||||||||||||||
Interchange income | - | - | 2,785 | - | 2,785 | |||||||||||||||
Asset management revenue | - | - | - | 292 | 292 | |||||||||||||||
Transaction based revenue | - | - | - | 158 | 158 | |||||||||||||||
Total | $ | 2,883 | $ | 713 | $ | 2,785 | $ | 450 | $ | 6,831 | ||||||||||
Reconciliation to Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Non-interest income - other: | ||||||||||||||||||||
Other deposit related income | $ | 713 | ||||||||||||||||||
Investment and insurance commissions | 450 | |||||||||||||||||||
Bank owned life insurance | 301 | |||||||||||||||||||
Other | 1,028 | |||||||||||||||||||
Total | $ | 2,492 |
Service Charges on Deposit Accounts | Other Deposit Related Income | Interchange Income | Investment and Insurance Commissions | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Retail | ||||||||||||||||||||
Overdraft fees | $ | 2,161 | $ | - | $ | - | $ | - | $ | 2,161 | ||||||||||
Account service charges | 519 | - | - | - | 519 | |||||||||||||||
ATM fees | - | 374 | - | - | 374 | |||||||||||||||
Other | - | 219 | - | - | 219 | |||||||||||||||
Business | ||||||||||||||||||||
Overdraft fees | 408 | - | - | - | 408 | |||||||||||||||
Account service charges | 78 | - | - | - | 78 | |||||||||||||||
ATM fees | - | 10 | - | - | 10 | |||||||||||||||
Other | - | 124 | - | - | 124 | |||||||||||||||
Interchange income | - | - | 2,486 | - | 2,486 | |||||||||||||||
Asset management revenue | - | - | - | 274 | 274 | |||||||||||||||
Transaction based revenue | - | - | - | 239 | 239 | |||||||||||||||
Total | $ | 3,166 | $ | 727 | $ | 2,486 | $ | 513 | $ | 6,892 | ||||||||||
Reconciliation to Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Non-interest income - other: | ||||||||||||||||||||
Other deposit related income | $ | 727 | ||||||||||||||||||
Investment and insurance commissions | 513 | |||||||||||||||||||
Bank owned life insurance | 237 | |||||||||||||||||||
Other | 657 | |||||||||||||||||||
Total | $ | 2,134 |
Service Charges on Deposit Accounts | Other Deposit Related Income | Interchange Income | Investment and Insurance Commissions | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Retail | ||||||||||||||||||||
Overdraft fees | $ | 5,582 | $ | - | $ | - | $ | - | $ | 5,582 | ||||||||||
Account service charges | 1,609 | - | - | - | 1,609 | |||||||||||||||
ATM fees | - | 1,041 | - | - | 1,041 | |||||||||||||||
Other | - | 703 | - | - | 703 | |||||||||||||||
Business | ||||||||||||||||||||
Overdraft fees | 1,123 | - | - | - | 1,123 | |||||||||||||||
Account service charges | 9 | - | - | - | 9 | |||||||||||||||
ATM fees | - | 26 | - | - | 26 | |||||||||||||||
Other | - | 309 | - | - | 309 | |||||||||||||||
Interchange income | - | - | 7,744 | - | 7,744 | |||||||||||||||
Asset management revenue | - | - | - | 823 | 823 | |||||||||||||||
Transaction based revenue | - | - | - | 374 | 374 | |||||||||||||||
Total | $ | 8,323 | $ | 2,079 | $ | 7,744 | $ | 1,197 | $ | 19,343 | ||||||||||
Reconciliation to Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Non-interest income - other: | ||||||||||||||||||||
Other deposit related income | $ | 2,079 | ||||||||||||||||||
Investment and insurance commissions | 1,197 | |||||||||||||||||||
Bank owned life insurance | 813 | |||||||||||||||||||
Other | 2,773 | |||||||||||||||||||
Total | $ | 6,862 |
Service Charges on Deposit Accounts | Other Deposit Related Income | Interchange Income | Investment and Insurance Commissions | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Retail | ||||||||||||||||||||
Overdraft fees | $ | 6,177 | $ | - | $ | - | $ | - | $ | 6,177 | ||||||||||
Account service charges | 1,607 | - | - | - | 1,607 | |||||||||||||||
ATM fees | - | 1,077 | - | - | 1,077 | |||||||||||||||
Other | - | 656 | - | - | 656 | |||||||||||||||
Business | ||||||||||||||||||||
Overdraft fees | 1,153 | - | - | - | 1,153 | |||||||||||||||
Account service charges | 229 | - | - | - | 229 | |||||||||||||||
ATM fees | - | 26 | - | - | 26 | |||||||||||||||
Other | - | 399 | - | - | 399 | |||||||||||||||
Interchange income | - | - | 7,236 | - | 7,236 | |||||||||||||||
Asset management revenue | - | - | - | 826 | 826 | |||||||||||||||
Transaction based revenue | - | - | - | 608 | 608 | |||||||||||||||
Total | $ | 9,166 | $ | 2,158 | $ | 7,236 | $ | 1,434 | $ | 19,994 | ||||||||||
Reconciliation to Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Non-interest income - other: | ||||||||||||||||||||
Other deposit related income | $ | 2,158 | ||||||||||||||||||
Investment and insurance commissions | 1,434 | |||||||||||||||||||
Bank owned life insurance | 713 | |||||||||||||||||||
Other | 1,989 | |||||||||||||||||||
Total | $ | 6,294 |
Three Months Ended | Nine Months Ended | |||||||
September 30, 2019 | ||||||||
(In thousands) | ||||||||
Operating lease cost | $ | 565 | $ | 1,692 | ||||
Variable lease cost | 43 | 115 | ||||||
Short-term lease cost | 4 | 14 | ||||||
Total | $ | 612 | $ | 1,821 |
September 30, 2019 | ||||
(In thousands) | ||||
Lease right of use asset (1) | $ | 6,244 | ||
Lease liabilities (2) | $ | 6,257 | ||
Weighted average remaining lease term (years) | 5.50 | |||
Weighted average discount rate | 3.2 | % |
(1) | Included in Accrued income and other assets in our Condensed Consolidated Statements of Financial Condition. |
(2) | Included in Accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Condition. |
(In thousands) | ||||
Three months ending December 31, 2019 | $ | 543 | ||
2020 | 1,790 | |||
2021 | 1,269 | |||
2022 | 963 | |||
2023 | 925 | |||
2024 and thereafter | 1,381 | |||
Total lease payments | 6,871 | |||
Less imputed interest | (614 | ) | ||
Total | $ | 6,257 |
(In thousands) | ||||
Cash and cash equivalents | $ | 23,521 | ||
Interest bearing deposits - time | 4,054 | |||
Securities available for sale | 6,066 | |||
Federal Home Loan Bank stock | 778 | |||
Loans, net | 295,799 | |||
Property and equipement, net | 1,067 | |||
Capitalized mortgage loan servicing rights | 3,047 | |||
Accrued income and other assets | 3,362 | |||
Other intangibles (1) | 5,798 | |||
Total assets acquired | 343,492 | |||
Deposits | 287,710 | |||
Other borrowings | 14,345 | |||
Subordinated debentures | 3,768 | |||
Accrued expenses and other liabilities | 1,429 | |||
Total liabilities assumed | 307,252 | |||
Net assets acquired | 36,240 | |||
Goodwill | 28,300 | |||
Purchase price (fair value of consideration) | $ | 64,540 |
(1) | Relates to core deposit intangibles (see note #7). |
Service Charges on Deposits | Other Deposit Related Income | Interchange Income | Investment and Insurance Commissions | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Retail | ||||||||||||||||||||
Overdraft fees | $ | 2,161 | $ | 2,161 | ||||||||||||||||
Account service charges | 519 | 519 | ||||||||||||||||||
ATM fees | $ | 374 | 374 | |||||||||||||||||
Other | 219 | 219 | ||||||||||||||||||
Business | ||||||||||||||||||||
Overdraft fees | 408 | 408 | ||||||||||||||||||
Account service charges | 78 | 78 | ||||||||||||||||||
ATM fees | 10 | 10 | ||||||||||||||||||
Other | 124 | 124 | ||||||||||||||||||
Interchange income | $ | 2,486 | 2,486 | |||||||||||||||||
Asset management revenue | $ | 274 | 274 | |||||||||||||||||
Transaction based revenue | 239 | 239 | ||||||||||||||||||
Total | $ | 3,166 | $ | 727 | $ | 2,486 | $ | 513 | $ | 6,892 | ||||||||||
Reconciliation to Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Non-interest income - other: | ||||||||||||||||||||
Other deposit related income | $ | 727 | ||||||||||||||||||
Investment and insurance commissions | 513 | |||||||||||||||||||
Bank owned life insurance | 237 | |||||||||||||||||||
Other | 657 | |||||||||||||||||||
Total | $ | 2,134 |
Service Charges on Deposits | Other Deposit Related Income | Interchange Income | Investment and Insurance Commissions | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Retail | ||||||||||||||||||||
Overdraft fees | $ | 6,177 | $ | 6,177 | ||||||||||||||||
Account service charges | 1,607 | 1,607 | ||||||||||||||||||
ATM fees | $ | 1,077 | 1,077 | |||||||||||||||||
Other | 656 | 656 | ||||||||||||||||||
Business | ||||||||||||||||||||
Overdraft fees | 1,153 | 1,153 | ||||||||||||||||||
Account service charges | 229 | 229 | ||||||||||||||||||
ATM fees | 26 | 26 | ||||||||||||||||||
Other | 399 | 399 | ||||||||||||||||||
Interchange income | $ | 7,236 | 7,236 | |||||||||||||||||
Asset management revenue | $ | 826 | 826 | |||||||||||||||||
Transaction based revenue | 608 | 608 | ||||||||||||||||||
Total | $ | 9,166 | $ | 2,158 | $ | 7,236 | $ | 1,434 | $ | 19,994 | ||||||||||
Reconciliation to Condensed Consolidated Statement of Operations: | ||||||||||||||||||||
Non-interest income - other: | ||||||||||||||||||||
Other deposit related income | $ | 2,158 | ||||||||||||||||||
Investment and insurance commissions | 1,434 | |||||||||||||||||||
Bank owned life insurance | 713 | |||||||||||||||||||
Other | 1,989 | |||||||||||||||||||
Total | $ | 6,294 |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Net income (annualized) to | ||||||||||||||||||||||||||||||||
Average assets | 1.46 | % | 1.01 | % | 1.30 | % | 0.96 | % | 1.42 | % | 1.46 | % | 1.28 | % | 1.30 | % | ||||||||||||||||
Average common shareholders’ equity | 13.83 | 10.27 | 12.73 | 9.69 | 14.64 | 13.83 | 12.84 | 12.73 | ||||||||||||||||||||||||
Net income per common share | ||||||||||||||||||||||||||||||||
Basic | $ | 0.49 | $ | 0.32 | $ | 1.29 | $ | 0.88 | $ | 0.55 | $ | 0.49 | $ | 1.41 | $ | 1.29 | ||||||||||||||||
Diluted | 0.49 | 0.32 | 1.27 | 0.87 | 0.55 | 0.49 | 1.40 | 1.27 |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Rate (2) | Average Balance | Interest | Rate (2) | Average Balance | Interest | Rate (2) | Average Balance | Interest | Rate (2) | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Taxable loans | $ | 2,543,712 | $ | 30,936 | 4.84 | % | $ | 1,908,497 | $ | 21,801 | 4.55 | % | $ | 2,779,132 | $ | 34,151 | 4.89 | % | $ | 2,543,712 | $ | 30,936 | 4.84 | % | ||||||||||||||||||||||||
Tax-exempt loans (1) | 6,590 | 81 | 4.88 | 3,138 | 47 | 5.94 | 7,412 | 94 | 5.03 | 6,590 | 81 | 4.88 | ||||||||||||||||||||||||||||||||||||
Taxable securities | 379,985 | 2,737 | 2.88 | 474,901 | 2,765 | 2.33 | 371,157 | 2,771 | 2.99 | 379,985 | 2,737 | 2.88 | ||||||||||||||||||||||||||||||||||||
Tax-exempt securities (1) | 62,964 | 518 | 3.29 | 90,645 | 783 | 3.46 | 52,098 | 400 | 3.07 | 62,964 | 518 | 3.29 | ||||||||||||||||||||||||||||||||||||
Interest bearing cash | 27,477 | 66 | 0.95 | 29,336 | 63 | 0.85 | 56,923 | 229 | 1.60 | 27,477 | 66 | 0.95 | ||||||||||||||||||||||||||||||||||||
Other investments | 17,493 | 237 | 5.38 | 15,543 | 200 | 5.11 | 18,359 | 266 | 5.75 | 17,493 | 237 | 5.38 | ||||||||||||||||||||||||||||||||||||
Interest Earning Assets | 3,038,221 | 34,575 | 4.53 | 2,522,060 | 25,659 | 4.05 | 3,285,081 | 37,911 | 4.60 | 3,038,221 | 34,575 | 4.53 | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 35,874 | 33,019 | 34,598 | 35,874 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets, net | 173,508 | 142,283 | 163,617 | 173,508 | ||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 3,247,603 | $ | 2,697,362 | $ | 3,483,296 | $ | 3,247,603 | ||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Savings and interest-bearing checking | $ | 1,241,868 | 1,223 | 0.39 | $ | 1,048,289 | 408 | 0.15 | ||||||||||||||||||||||||||||||||||||||||
Savings and interest- bearing checking | $ | 1,487,820 | 2,818 | 0.75 | $ | 1,241,868 | 1,223 | 0.39 | ||||||||||||||||||||||||||||||||||||||||
Time deposits | 664,098 | 2,753 | 1.64 | 531,226 | 1,425 | 1.06 | 658,426 | 3,418 | 2.06 | 664,098 | 2,753 | 1.64 | ||||||||||||||||||||||||||||||||||||
Other borrowings | 80,939 | 779 | 3.82 | 85,219 | 626 | 2.91 | 72,887 | 703 | 3.83 | 80,939 | 779 | 3.82 | ||||||||||||||||||||||||||||||||||||
Interest Bearing Liabilities | 1,986,905 | 4,755 | 0.95 | 1,664,734 | 2,459 | 0.59 | 2,219,133 | 6,939 | 1.24 | 1,986,905 | 4,755 | 0.95 | ||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 884,003 | 736,291 | 877,088 | 884,003 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 34,697 | 31,263 | 49,913 | 34,697 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 341,998 | 265,074 | 337,162 | 341,998 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,247,603 | $ | 2,697,362 | $ | 3,483,296 | $ | 3,247,603 | ||||||||||||||||||||||||||||||||||||||||
Net Interest Income | $ | 29,820 | $ | 23,200 | $ | 30,972 | $ | 29,820 | ||||||||||||||||||||||||||||||||||||||||
Net Interest Income as a Percent of Average Interest Earning Assets | 3.91 | % | 3.66 | % | 3.76 | % | 3.91 | % |
(1) | Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21% |
(2) | Annualized |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Rate (2) | Average Balance | Interest | Rate (2) | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Rate (2) | Average Balance | Interest | Rate (2) | ||||||||||||||||||||||||||||||||||||||||||
Assets | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Taxable loans | $ | 2,350,883 | $ | 83,881 | 4.77 | % | $ | 1,792,381 | $ | 61,544 | 4.59 | % | $ | 2,695,435 | $ | 100,513 | 4.98 | % | $ | 2,350,883 | $ | 83,881 | 4.77 | % | ||||||||||||||||||||||||
Tax-exempt loans (1) | 5,221 | 185 | 4.74 | 3,410 | 145 | 5.69 | 7,856 | 291 | 4.95 | 5,221 | 185 | 4.74 | ||||||||||||||||||||||||||||||||||||
Taxable securities | 400,957 | 8,092 | 2.69 | 499,886 | 8,300 | 2.21 | 384,291 | 8,811 | 3.06 | 400,957 | 8,092 | 2.69 | ||||||||||||||||||||||||||||||||||||
Tax-exempt securities (1) | 70,155 | 1,680 | 3.19 | 85,853 | 2,264 | 3.52 | 52,794 | 1,275 | 3.22 | 70,155 | 1,680 | 3.19 | ||||||||||||||||||||||||||||||||||||
Interest bearing cash | 29,502 | 214 | 0.97 | 42,610 | 229 | 0.72 | 51,260 | 655 | 1.71 | 29,502 | 214 | 0.97 | ||||||||||||||||||||||||||||||||||||
Other investments | 16,457 | 684 | 5.56 | 15,543 | 638 | 5.49 | 18,359 | 794 | 5.78 | 16,457 | 684 | 5.56 | ||||||||||||||||||||||||||||||||||||
Interest Earning Assets | 2,873,175 | 94,736 | 4.40 | 2,439,683 | 73,120 | 4.00 | 3,209,995 | 112,339 | 4.67 | 2,873,175 | 94,736 | 4.40 | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 33,204 | 32,492 | 34,032 | 33,204 | ||||||||||||||||||||||||||||||||||||||||||||
Other assets, net | 159,844 | 146,753 | 166,037 | 159,844 | ||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 3,066,223 | $ | 2,618,928 | $ | 3,410,064 | $ | 3,066,223 | ||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||
Savings and interest- bearing checking | $ | 1,193,388 | 2,785 | 0.31 | $ | 1,051,395 | 1,007 | 0.13 | $ | 1,421,114 | 7,787 | 0.73 | $ | 1,193,388 | 2,785 | 0.31 | ||||||||||||||||||||||||||||||||
Time deposits | 611,103 | 6,687 | 1.46 | 494,219 | 3,747 | 1.01 | 670,479 | 10,151 | 2.02 | 611,103 | 6,687 | 1.46 | ||||||||||||||||||||||||||||||||||||
Other borrowings | 82,253 | 2,267 | 3.68 | 66,392 | 1,659 | 3.34 | 72,233 | 2,211 | 4.09 | 82,253 | 2,267 | 3.68 | ||||||||||||||||||||||||||||||||||||
Interest Bearing Liabilities | 1,886,744 | 11,739 | 0.83 | 1,612,006 | 6,413 | 0.53 | 2,163,826 | 20,149 | 1.24 | 1,886,744 | 11,739 | 0.83 | ||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | 833,283 | 717,589 | 862,929 | 833,283 | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 32,177 | 30,372 | 44,323 | 32,177 | ||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 314,019 | 258,961 | 338,986 | 314,019 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,066,223 | $ | 2,618,928 | $ | 3,410,064 | $ | 3,066,223 | ||||||||||||||||||||||||||||||||||||||||
Net Interest Income | $ | 82,997 | $ | 66,707 | $ | 92,190 | $ | 82,997 | ||||||||||||||||||||||||||||||||||||||||
Net Interest Income as a Percent of Average Interest Earning Assets | 3.86 | % | 3.65 | % | 3.83 | % | 3.86 | % |
(1) | Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21% |
(2) | Annualized |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Net Interest Margin, Fully Taxable Equivalent ("FTE") | ||||||||||||||||||||||||||||||||
Net Interest Margin, Fully Taxable Equivalent (“FTE”) | ||||||||||||||||||||||||||||||||
Net interest income | $ | 29,697 | $ | 22,912 | $ | 82,613 | $ | 65,870 | $ | 30,872 | $ | 29,697 | $ | 91,871 | $ | 82,613 | ||||||||||||||||
Add: taxable equivalent adjustment | 123 | 288 | 384 | 837 | 100 | 123 | 319 | 384 | ||||||||||||||||||||||||
Net interest income - taxable equivalent | $ | 29,820 | $ | 23,200 | $ | 82,997 | $ | 66,707 | $ | 30,972 | $ | 29,820 | $ | 92,190 | $ | 82,997 | ||||||||||||||||
Net interest margin (GAAP) (1) | 3.88 | % | 3.60 | % | 3.84 | % | 3.61 | % | 3.74 | % | 3.88 | % | 3.82 | % | 3.84 | % | ||||||||||||||||
Net interest margin (FTE) (1) | 3.91 | % | 3.66 | % | 3.86 | % | 3.65 | % | 3.76 | % | 3.91 | % | 3.83 | % | 3.86 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 3,166 | $ | 3,281 | $ | 9,166 | $ | 9,465 | $ | 2,883 | $ | 3,166 | $ | 8,323 | $ | 9,166 | ||||||||||||||||
Interchange income | 2,486 | 1,942 | 7,236 | 5,869 | 2,785 | 2,486 | 7,744 | 7,236 | ||||||||||||||||||||||||
Net gains (losses) on assets: | ||||||||||||||||||||||||||||||||
Mortgage loans | 2,745 | 2,971 | 8,571 | 8,886 | 5,677 | 2,745 | 13,590 | 8,571 | ||||||||||||||||||||||||
Securities | 93 | 69 | (71 | ) | 62 | -- | 93 | 304 | (71 | ) | ||||||||||||||||||||||
Mortgage loan servicing, net | 1,212 | 1 | 4,668 | 668 | (1,562 | ) | 1,212 | (4,684 | ) | 4,668 | ||||||||||||||||||||||
Investment and insurance commissions | 513 | 606 | 1,434 | 1,541 | 450 | 513 | 1,197 | 1,434 | ||||||||||||||||||||||||
Bank owned life insurance | 237 | 283 | 713 | 776 | 301 | 237 | 813 | 713 | ||||||||||||||||||||||||
Other | 1,384 | 1,151 | 4,147 | 3,822 | 1,741 | 1,384 | 4,852 | 4,147 | ||||||||||||||||||||||||
Total non-interest income | $ | 11,836 | $ | 10,304 | $ | 35,864 | $ | 31,089 | $ | 12,275 | $ | 11,836 | $ | 32,139 | $ | 35,864 |
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
Mortgage loans originated | $ | 231,849 | $ | 264,177 | $ | 617,080 | $ | 657,345 | $ | 329,461 | $ | 231,849 | $ | 708,621 | $ | 617,080 | ||||||||||||||||
Mortgage loans sold | 148,730 | 120,981 | 370,372 | 305,386 | 204,058 | 148,730 | 490,219 | 370,372 | ||||||||||||||||||||||||
Net gains on mortgage loans | 2,745 | 2,971 | 8,571 | 8,886 | 5,677 | 2,745 | 13,590 | 8,571 | ||||||||||||||||||||||||
Net gains as a percent of mortgage loans sold (“Loan Sales Margin”) | 1.85 | % | 2.46 | % | 2.31 | % | 2.91 | % | 2.78 | % | 1.85 | % | 2.77 | % | 2.31 | % | ||||||||||||||||
Fair value adjustments included in the Loan Sales Margin | (0.26 | ) | (0.22 | ) | 0.10 | 0.08 | 0.22 | (0.26 | ) | 0.48 | 0.10 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
9/30/2018 | 9/30/2017 | 9/30/2018 | 9/30/2017 | 9/30/2019 | 9/30/2018 | 9/30/2019 | 9/30/2018 | |||||||||||||||||||||||||
Mortgage loan servicing, net: | (In thousands) | (In thousands) | ||||||||||||||||||||||||||||||
Revenue, net | $ | 1,410 | $ | 1,091 | $ | 3,974 | $ | 3,253 | $ | 1,583 | $ | 1,410 | $ | 4,574 | $ | 3,974 | ||||||||||||||||
Fair value change due to price | 610 | (572 | ) | 2,586 | (1,075 | ) | (2,163 | ) | 610 | (7,036 | ) | 2,586 | ||||||||||||||||||||
Fair value change due to pay-downs | (808 | ) | (518 | ) | (1,892 | ) | (1,510 | ) | (982 | ) | (808 | ) | (2,222 | ) | (1,892 | ) | ||||||||||||||||
Total | $ | 1,212 | $ | 1 | $ | 4,668 | $ | 668 | $ | (1,562 | ) | $ | 1,212 | $ | (4,684 | ) | $ | 4,668 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at beginning of period | $ | 17,894 | $ | 21,848 | $ | 21,400 | $ | 15,699 | ||||||||
Servicing rights acquired | - | - | - | 3,047 | ||||||||||||
Originated servicing rights capitalized | 2,157 | 1,501 | 4,764 | 3,711 | ||||||||||||
Change in fair value | (3,145 | ) | (198 | ) | (9,258 | ) | 694 | |||||||||
Balance at end of period | $ | 16,906 | $ | 23,151 | $ | 16,906 | $ | 23,151 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at beginning of period | $ | 21,848 | $ | 14,515 | $ | 15,699 | $ | 13,671 | ||||||||
Change in accounting | - | - | - | 542 | ||||||||||||
Balance at beginning of period, as adjusted | 21,848 | 14,515 | 15,699 | 14,213 | ||||||||||||
Servicing rights acquired | - | - | 3,047 | - | ||||||||||||
Originated servicing rights capitalized | 1,501 | 1,250 | 3,711 | 3,047 | ||||||||||||
Change in fair value | (198 | ) | (1,090 | ) | 694 | (2,585 | ) | |||||||||
Balance at end of period | $ | 23,151 | $ | 14,675 | $ | 23,151 | $ | 14,675 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | (In thousands) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Compensation | $ | 9,582 | $ | 8,494 | $ | 28,086 | $ | 26,872 | $ | 10,327 | $ | 9,582 | $ | 30,993 | $ | 28,086 | ||||||||||||||||
Performance-based compensation | 3,305 | 2,688 | 9,238 | 6,819 | 3,214 | 3,305 | 7,730 | 9,238 | ||||||||||||||||||||||||
Payroll taxes and employee benefits | 3,282 | 2,395 | 9,182 | 7,413 | 3,132 | 3,282 | 10,232 | 9,182 | ||||||||||||||||||||||||
Compensation and employee benefits | 16,169 | 13,577 | 46,506 | 41,104 | 16,673 | 16,169 | 48,955 | 46,506 | ||||||||||||||||||||||||
Occupancy, net | 2,233 | 1,970 | 6,667 | 6,032 | 2,161 | 2,233 | 6,797 | 6,667 | ||||||||||||||||||||||||
Data processing | 2,051 | 1,796 | 6,180 | 5,670 | 2,282 | 2,051 | 6,597 | 6,180 | ||||||||||||||||||||||||
Merger related expenses | 98 | 10 | 3,354 | 10 | ||||||||||||||||||||||||||||
Furniture, fixtures and equipment | 1,043 | 961 | 3,029 | 2,943 | 1,023 | 1,043 | 3,058 | 3,029 | ||||||||||||||||||||||||
Interchange expense | 891 | 715 | 2,332 | 1,974 | ||||||||||||||||||||||||||||
Communications | 727 | 685 | 2,111 | 2,046 | 733 | 727 | 2,219 | 2,111 | ||||||||||||||||||||||||
Interchange expense | 715 | 294 | 1,974 | 869 | ||||||||||||||||||||||||||||
Loan and collection | 531 | 481 | 1,900 | 1,564 | 714 | 531 | 1,976 | 1,900 | ||||||||||||||||||||||||
Advertising | 594 | 526 | 1,578 | 1,551 | 636 | 594 | 1,935 | 1,578 | ||||||||||||||||||||||||
Legal and professional | 477 | 540 | 1,311 | 1,366 | 541 | 477 | 1,281 | 1,311 | ||||||||||||||||||||||||
Amortization of intangible assets | 272 | 295 | 817 | 676 | ||||||||||||||||||||||||||||
FDIC deposit insurance | 270 | 208 | 750 | 608 | 13 | 270 | 723 | 750 | ||||||||||||||||||||||||
Amortization of intangible assets | 295 | 87 | 676 | 260 | ||||||||||||||||||||||||||||
Supplies | 173 | 176 | 516 | 507 | 163 | 173 | 474 | 516 | ||||||||||||||||||||||||
Costs (recoveries) related to unfunded lending commitments | 154 | 71 | 341 | (6 | ) | |||||||||||||||||||||||||||
Credit card and bank service fees | 108 | 105 | 310 | 432 | 100 | 108 | 300 | 310 | ||||||||||||||||||||||||
Provision for loss reimbursement on sold loans | 47 | 15 | 78 | 66 | 33 | 47 | 179 | 78 | ||||||||||||||||||||||||
Costs (recoveries) related to unfunded lending commitments | 71 | 92 | (6 | ) | 332 | |||||||||||||||||||||||||||
Net (gains) losses on other real estate and repossessed assets | (325 | ) | 30 | (619 | ) | 132 | 52 | (325 | ) | (27 | ) | (619 | ) | |||||||||||||||||||
Merger related expenses | -- | 98 | -- | 3,354 | ||||||||||||||||||||||||||||
Other | 1,463 | 1,063 | 4,321 | 3,454 | 1,407 | 1,463 | 4,473 | 4,321 | ||||||||||||||||||||||||
Total non-interest expense | $ | 26,740 | $ | 22,616 | $ | 80,636 | $ | 68,946 | $ | 27,848 | $ | 26,740 | $ | 82,430 | $ | 80,636 |
Securities | ||||||||||||||||
Unrealized | ||||||||||||||||
Amortized Cost | Gains | Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Securities available for sale | ||||||||||||||||
September 30, 2018 | $ | 443,744 | $ | 1,602 | $ | 8,389 | $ | 436,957 | ||||||||
December 31, 2017 | 523,520 | 3,197 | 3,792 | 522,925 |
Unrealized | ||||||||||||||||
Amortized Cost | Gains | Losses | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
Securities available for sale | ||||||||||||||||
September 30, 2019 | $ | 434,231 | $ | 6,106 | $ | 745 | $ | 439,592 | ||||||||
December 31, 2018 | 433,224 | 1,520 | 6,818 | 427,926 |
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Proceeds | $ | 31,445 | $ | 9,594 | $ | 44,305 | $ | 31,445 | ||||||||
Gross gains | $ | 225 | $ | 125 | $ | 169 | $ | 225 | ||||||||
Gross losses | (126 | ) | - | (32 | ) | (126 | ) | |||||||||
Net impairment charges | - | - | -- | - | ||||||||||||
Fair value adjustments | (170 | ) | (63 | ) | 167 | (170 | ) | |||||||||
Net gains (losses) | $ | (71 | ) | $ | 62 | $ | 304 | $ | (71 | ) |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Real estate(1) | ||||||||||||||||
Residential first mortgages | $ | 815,202 | $ | 672,592 | $ | 821,531 | $ | 811,719 | ||||||||
Residential home equity and other junior mortgages | 175,426 | 136,560 | 173,099 | 177,574 | ||||||||||||
Construction and land development | 171,546 | 143,188 | 220,822 | 180,286 | ||||||||||||
Other(2) | 701,711 | 538,880 | 721,042 | 707,347 | ||||||||||||
Consumer | 377,451 | 291,091 | 451,025 | 379,607 | ||||||||||||
Commercial | 314,848 | 231,786 | 330,073 | 319,058 | ||||||||||||
Agricultural | 6,394 | 4,720 | 4,854 | 6,929 | ||||||||||||
Total loans | $ | 2,562,578 | $ | 2,018,817 | $ | 2,722,446 | $ | 2,582,520 |
(1) | Includes both residential and non-residential commercial loans secured by real estate. |
(2) | Includes loans secured by multi-family residential and non-farm, non-residential property. |
Non-performing assets(1) | ||||||||
September 30, 2018 | December 31, 2017 | |||||||
(Dollars in thousands) | ||||||||
Non-accrual loans | $ | 9,343 | $ | 8,184 | ||||
Loans 90 days or more past due and still accruing interest | -- | -- | ||||||
Total non-performing loans | 9,343 | 8,184 | ||||||
Other real estate and repossessed assets | 1,445 | 1,643 | ||||||
Total non-performing assets | $ | 10,788 | $ | 9,827 | ||||
As a percent of Portfolio Loans | ||||||||
Non-performing loans | 0.36 | % | 0.41 | % | ||||
Allowance for loan losses | 0.95 | 1.12 | ||||||
Non-performing assets to total assets | 0.33 | 0.35 | ||||||
Allowance for loan losses as a percent of non-performing loans | 261.17 | 275.99 |
September 30, 2019 | December 31, 2018 | |||||||
(Dollars in thousands) | ||||||||
Non-accrual loans | $ | 7,124 | $ | 9,029 | ||||
Loans 90 days or more past due and still accruing interest | -- | 5 | ||||||
Less - government guaranteed loans | (475 | ) | (460 | ) | ||||
Total non-performing loans | 6,649 | 8,574 | ||||||
Other real estate and repossessed assets | 1,789 | 1,299 | ||||||
Total non-performing assets | $ | 8,438 | $ | 9,873 | ||||
As a percent of Portfolio Loans | ||||||||
Non-performing loans | 0.24 | % | 0.33 | % | ||||
Allowance for loan losses | 0.96 | 0.96 | ||||||
Non-performing assets to total assets | 0.24 | 0.29 | ||||||
Allowance for loan losses as a percent of non-performing loans | 393.26 | 290.27 |
(1) | Excludes loans classified as “troubled debt restructured” that are not past due. |
September 30, 2019 | ||||||||||||
Commercial | Retail (1) | Total | ||||||||||
(In thousands) | ||||||||||||
Performing TDR’s | $ | 6,947 | $ | 40,873 | $ | 47,820 | ||||||
Non-performing TDR’s (2) | 46 | 2,357 | (3) | 2,403 | ||||||||
Total | $ | 6,993 | $ | 43,230 | $ | 50,223 |
September 30, 2018 | ||||||||||||
Commercial | Retail (1) | Total | ||||||||||
(In thousands) | ||||||||||||
Performing TDR's | $ | 6,904 | $ | 49,397 | $ | 56,301 | ||||||
Non-performing TDR's(2) | 212 | 2,799 | (3) | 3,011 | ||||||||
Total | $ | 7,116 | $ | 52,196 | $ | 59,312 |
December 31, 2018 | ||||||||||||
Commercial | Retail (1) | Total | ||||||||||
(In thousands) | ||||||||||||
Performing TDR’s | $ | 6,460 | $ | 46,627 | $ | 53,087 | ||||||
Non-performing TDR’s (2) | 74 | 2,884 | (3) | 2,958 | ||||||||
Total | $ | 6,534 | $ | 49,511 | $ | 56,045 |
December 31, 2017 | ||||||||||||
Commercial | Retail (1) | Total | ||||||||||
(In thousands) | ||||||||||||
Performing TDR's | $ | 7,748 | $ | 52,367 | $ | 60,115 | ||||||
Non-performing TDR's(2) | 323 | 4,506 | (3) | 4,829 | ||||||||
Total | $ | 8,071 | $ | 56,873 | $ | 64,944 |
(1) | Retail loans include mortgage and installment |
(2) | Included in non-performing |
(3) | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
Nine months ended September 30, | ||||||||||||||||
2019 | 2018 | |||||||||||||||
Loans | Unfunded Commitments | Loans | Unfunded Commitments | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 24,888 | $ | 1,296 | $ | 22,587 | $ | 1,125 | ||||||||
Additions (deductions) | ||||||||||||||||
Provision for loan losses | 1,045 | - | 912 | - | ||||||||||||
Recoveries credited to allowance | 3,109 | - | 3,768 | - | ||||||||||||
Loans charged against the allowance | (2,894 | ) | - | (2,866 | ) | - | ||||||||||
Additions included in non-interest expense | - | 341 | - | (6 | ) | |||||||||||
Balance at end of period | $ | 26,148 | $ | 1,637 | $ | 24,401 | $ | 1,119 | ||||||||
Net loans charged against the allowance to average Portfolio Loans | (0.01 | )% | (0.04 | )% |
Nine months ended September 30, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
Loans | Unfunded Commitments | Loans | Unfunded Commitments | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 22,587 | $ | 1,125 | $ | 20,234 | $ | 650 | ||||||||
Additions (deductions) | ||||||||||||||||
Provision for loan losses | 912 | - | 806 | - | ||||||||||||
Recoveries credited to allowance | 3,768 | - | 2,998 | - | ||||||||||||
Loans charged against the allowance | (2,866 | ) | - | (2,560 | ) | - | ||||||||||
Additions included in non-interest expense | - | (6 | ) | - | 332 | |||||||||||
Balance at end of period | $ | 24,401 | $ | 1,119 | $ | 21,478 | $ | 982 | ||||||||
Net loans charged against the allowance to average Portfolio Loans | (0.04 | )% | (0.03 | )% |
September 30, 2018 | December 31, 2017 | September 30, 2019 | December 31, 2018 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Specific allocations | $ | 6,102 | $ | 6,839 | $ | 5,779 | $ | 6,310 | ||||||||
Other adversely rated commercial loans | 1,883 | 1,228 | 3,022 | 1,861 | ||||||||||||
Historical loss allocations | 7,665 | 7,125 | 8,752 | 7,792 | ||||||||||||
Additional allocations based on subjective factors | 8,751 | 7,395 | 8,595 | 8,925 | ||||||||||||
Total | $ | 24,401 | $ | 22,587 | $ | 26,148 | $ | 24,888 |
September 30, 2019 | December 31, 2018 | |||||||
(In thousands) | ||||||||
Subordinated debentures | $ | 39,439 | $ | 39,388 | ||||
Amount not qualifying as regulatory capital | (1,224 | ) | (1,224 | ) | ||||
Amount qualifying as regulatory capital | 38,215 | 38,164 | ||||||
Shareholders’ equity | ||||||||
Common stock | 351,839 | 377,372 | ||||||
Accumulated deficit | (8,221 | ) | (28,270 | ) | ||||
Accumulated other comprehensive loss | (3,373 | ) | (10,108 | ) | ||||
Total shareholders’ equity | 340,245 | 338,994 | ||||||
Total capitalization | $ | 378,460 | $ | 377,158 |
September 30, 2018 | December 31, 2017 | |||||||
(In thousands) | ||||||||
Subordinated debentures | $ | 39,371 | $ | 35,569 | ||||
Amount not qualifying as regulatory capital | (1,224 | ) | (1,069 | ) | ||||
Amount qualifying as regulatory capital | 38,147 | 34,500 | ||||||
Shareholders’ equity | ||||||||
Common stock | 389,689 | 324,986 | ||||||
Accumulated deficit | (34,596 | ) | (54,054 | ) | ||||
Accumulated other comprehensive loss | (9,889 | ) | (5,999 | ) | ||||
Total shareholders’ equity | 345,204 | 264,933 | ||||||
Total capitalization | $ | 383,351 | $ | 299,433 |
Change in Interest Rates | Market Value Of Portfolio Equity(1) | Percent Change | Net Interest Income(2) | Percent Change | Market Value of Portfolio Equity(1) | Percent Change | Net Interest Income(2) | Percent Change | ||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||||||||||
September 30, 2019 | ||||||||||||||||||||||||||||||||
200 basis point rise | $ | 474,800 | (4.33 | )% | $ | 123,700 | 2.66 | % | $ | 447,100 | 1.02 | % | $ | 125,300 | 1.54 | % | ||||||||||||||||
100 basis point rise | 489,900 | (1.29 | ) | 122,700 | 1.83 | 455,900 | 3.00 | 124,800 | 1.13 | |||||||||||||||||||||||
Base-rate scenario | 496,300 | - | 120,500 | - | 442,600 | - | 123,400 | - | ||||||||||||||||||||||||
100 basis point decline | 486,100 | (2.06 | ) | 117,700 | (2.32 | ) | 387,700 | (12.40 | ) | 119,500 | (3.16 | ) | ||||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
200 basis point rise | $ | 409,200 | (1.23 | )% | $ | 99,100 | 2.27 | % | $ | 481,100 | (3.37 | )% | $ | 126,200 | 3.27 | % | ||||||||||||||||
100 basis point rise | 417,100 | 0.68 | 98,600 | 1.75 | 495,400 | (0.50 | ) | 124,800 | 2.13 | |||||||||||||||||||||||
Base-rate scenario | 414,300 | - | 96,900 | - | 497,900 | - | 122,200 | - | ||||||||||||||||||||||||
100 basis point decline | 386,400 | (6.73 | ) | 91,600 | (5.47 | ) | 482,800 | (3.03 | ) | 119,600 | (2.13 | ) |
(1) | Simulation analyses calculate the change in the net present value of our assets and liabilities, including debt and related financial derivative instruments, under parallel shifts in interest rates by discounting the estimated future cash flows using a market-based discount rate. Cash flow estimates incorporate anticipated changes in prepayment speeds and other embedded options. |
(2) | Simulation analyses calculate the change in net interest income under immediate parallel shifts in interest rates over the next twelve months, based upon a static statement of financial condition, which includes debt and related financial derivative instruments, and do not consider loan fees. |
(a) | Evaluation of Disclosure Controls and Procedures. |
(b) | Changes in Internal Controls. |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan | Remaining Number of Shares Authorized for Purchase Under the Plan | ||||||||||||
July 2018 | - | $ | - | - | 1,066,693 | |||||||||||
August 2018 | 101 | 25.05 | - | 1,066,693 | ||||||||||||
September 2018 | - | - | - | 1,066,693 | ||||||||||||
Total | 101 | $ | 25.05 | - | 1,066,693 |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan | Remaining Number of Shares Authorized for Purchase Under the Plan | ||||||||||||
July 2019 | -- | $ | -- | -- | 299,298 | |||||||||||
August 2019 | 25,919 | 20.09 | 25,000 | 274,298 | ||||||||||||
September 2019 | -- | -- | -- | 274,298 | ||||||||||||
Total | 25,919 | $ | 20.09 | 25,000 | 274,298 |
(1) | August includes 919 shares withheld from the shares that would otherwise have been issued to certain officers in order to satisfy tax withholding obligations resulting from the vesting of restricted |
(a) | The following exhibits (listed by number corresponding to the Exhibit Table as Item 601 in Regulation S-K) are filed with this report: |
Certificate of the Chief Executive Officer of Independent Bank Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). | ||
Certificate of the Chief Financial Officer of Independent Bank Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). | ||
Certificate of the Chief Executive Officer of Independent Bank Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). | ||
Certificate of the Chief Financial Officer of Independent Bank Corporation pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350). |
Date | November | By | /s/ Robert N. Shuster | |
Robert N. Shuster, Principal Financial Officer | ||||
Date | November | By | /s/ James J. Twarozynski | |
James J. Twarozynski, Principal Accounting Officer |